Pier 1 2009 Annual Report Download - page 25

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Item 6. Selected Financial Data.
FINANCIAL SUMMARY
Year Ended
2009 2008 2007(1) 2006 2005
($ in millions except per share amounts)
SUMMARY OF OPERATIONS(2):
Net sales .................................... $1,320.7 1,511.8 1,623.2 1,776.7 1,825.3
Gross profit(3) ................................ $ 363.5 439.6 474.0 601.7 703.6
Selling, general and administrative expenses(4) ......... $ 453.5 487.9 649.0 588.3 549.6
Depreciation and amortization .................... $ 30.6 39.8 51.2 56.2 55.8
Operating income (loss) ......................... $(120.6) (88.1) (226.2) (42.8) 98.2
Nonoperating (income) and expenses, net ............ $ 8.1 5.3 1.9 (0.9) (0.9)
Income (loss) from continuing operations before income
taxes ..................................... $(128.6) (93.4) (228.1) (41.9) 99.1
Income (loss) from continuing operations, net of tax .... $(129.3) (96.0) (227.2) (27.5) 62.8
Income (loss) from discontinued operations, net of tax . . . $ — — (0.4) (12.3) (2.3)
Net income (loss) .............................. $(129.3) (96.0) (227.6) (39.8) 60.5
PER SHARE AMOUNTS:
Basic earnings (loss) from continuing operations ....... $ (1.45) (1.09) (2.59) (.32) .72
Diluted earnings (loss) from continuing operations ...... $ (1.45) (1.09) (2.59) (.32) .71
Basic earnings (loss) from discontinued operations ...... $ — — (.01) (.14) (.03)
Diluted earnings (loss) from discontinued operations .... $ — — (.01) (.14) (.03)
Basic earnings (loss) ............................ $ (1.45) (1.09) (2.60) (.46) .69
Diluted earnings (loss) .......................... $ (1.45) (1.09) (2.60) (.46) .68
Cash dividends declared ......................... $ — — .20 .40 .40
Shareholders’ equity ............................ $ 1.62 3.04 4.13 6.81 7.63
OTHER FINANCIAL DATA:
Working capital ............................... $ 299.9 307.3 349.4 486.1 387.4
Current ratio ................................. 2.3 2.1 2.2 2.7 2.3
Total assets .................................. $ 655.5 821.9 916.5 1,169.9 1,075.7
Long-term debt(5) .............................. $ 184.0 184.0 184.0 184.0 19.0
Shareholders’ equity ............................ $ 144.3 267.7 361.1 590.0 664.4
Weighted average diluted shares outstanding (millions) . . 88.9 88.1 87.4 86.6 88.8
Effective tax rate (%)(6) ......................... (0.5) (2.8) 0.4 34.5 36.7
(1) Fiscal 2007 consisted of a 53-week year. All other fiscal years presented reflect 52-week years.
(2) Amounts are from continuing operations unless otherwise specified.
(3) Gross profit for fiscal 2007 included a pre-tax charge of $32.5 million for inventory write-down
related to a strategic decision made in the fourth quarter to liquidate certain inventory by the end
of the first quarter of fiscal 2008.
(4) The decrease in selling, general and adminstrative expense for fiscal years 2009 and 2008 relate
primarily to initiatives to reduce costs Company-wide. See detailed description of these expenses in
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Selling, general and administrative expense in fiscal 2007 included a pre-tax charge of $32.3 million
related to impairment charges on long-lived store level assets.
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