Pier 1 2007 Annual Report Download - page 17

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anticipate paying cash dividends in fiscal 2008 and its dividend policy in the near term will depend upon the
earnings, financial condition and capital needs of the Company and other factors deemed relevant by the
Company’s Board of Directors.
The following table shows the dividends paid per share for each quarter of fiscal 2007 and 2006:
Fiscal 2007
Cash Dividends
per Share
First quarter ....................................................... $.10
Second quarter ..................................................... .10
Third quarter ...................................................... —
Fourth quarter ..................................................... —
Fiscal 2006
First quarter ....................................................... $.10
Second quarter ..................................................... .10
Third quarter ...................................................... .10
Fourth quarter ..................................................... .10
Cash dividend payments are not restricted by the Company’s secured credit facility unless the availability
under the Company’s credit facility is less than 30% of the Company’s borrowing base calculation. Such
borrowing base calculation consists of a percentage of eligible inventory and third-party credit card receivables
and varies according to the levels of the underlying collateral. As of March 3, 2007, the Company had no
outstanding cash borrowings, approximately $124.0 million in letters of credit utilized against its secured
credit facility, and the borrowing base was $239.7 million. The Company is not required to comply with
financial covenants under its secured credit facility unless the availability under such agreement is less than
$32.5 million. After excluding the $32.5 million, the Company had $83.2 million available for cash borrowings
as of year end, therefore, was in compliance with required debt covenants at fiscal 2007 year end.
Securities Authorized for Issuance under Equity Compensation Plans
The following table summarizes the Company’s equity compensation plans as of March 3, 2007:
Plan Category
(a)
Number of Securities
to be Issued Upon
Exercise of
Outstanding Options
(b)
Weighted Average
Exercise Price of
Outstanding Options
(c)
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation
Plans (Excluding
Securities Reflected
in Column (a))
(1)
Equity compensation plans approved by
security holders .................... 12,668,125 $14.52 1,326,153
Equity compensation plans not approved by
security holders
(2)
................... 3,000,000 $ 6.69 —
(1) The number of shares remaining available for future issuance represents shares available for grant under the Pier 1 Imports, Inc. 2006
Stock Incentive Plan.
(2) Equity compensation plans not approved by security holders represent the employment inducement stock options granted under the
President and Chief Executive Officer’s employment agreement. See Note 11 of the Notes to Consolidated Financial Statements for
additional information regarding the material features of this stock option grant.
15