Pier 1 2012 Annual Report Download - page 24

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Item 6. Selected Financial Data.
FINANCIAL SUMMARY
Year Ended
2012 2011 2010 2009 2008
($ in millions except per share amounts)
SUMMARY OF OPERATIONS:
Net sales $ 1,533.6 $ 1,396.5 1,290.9 1,320.7 1,511.8
Gross profit $ 651.2 $ 555.4 440.4 363.5 439.6
Selling, general and administrative expenses $ 475.2 $ 431.9 421.2 453.5 487.9
Depreciation and amortization $ 21.2 $ 19.7 22.5 30.6 39.8
Operating income (loss) $ 154.8 $ 103.7 (3.3) (120.6) (88.1)
Operating income (loss) as a % of sales 10.1% 7.4% (0.3%) (9.1%) (5.8%)
Nonoperating (income) and expenses, net (1) $ (9.3) $ 0.2 (35.3) 8.1 5.3
Income (loss) before income taxes $ 164.1 $ 103.5 32.1 (128.6) (93.4)
Net income (loss) (2) $ 168.9 $ 100.1 86.8 (129.3) (96.0)
PER SHARE AMOUNTS:
Basic earnings (loss) $ 1.50 $ .86 .86 (1.45) (1.09)
Diluted earnings (loss) $ 1.48 $ .85 .86 (1.45) (1.09)
Shareholders’ equity $ 4.31 $ 3.51 3.01 1.62 3.04
OTHER FINANCIAL DATA:
Working capital $ 404.9 $ 415.6 316.7 299.9 307.3
Current ratio 2.7 2.8 2.3 2.3 2.1
Total assets $ 823.4 $ 743.6 643.0 655.5 821.9
Long-term debt (3) $ 9.5 $ 9.5 19.0 184.0 184.0
Shareholders’ equity $ 493.6 $ 412.9 303.1 144.3 267.7
Weighted average diluted shares outstanding (millions) (4) 114.4 117.5 100.7 88.9 88.1
Effective tax rate (%) (2) (2.9) 3.3 (171.0) (0.5) (2.8)
(1) Nonoperating income for fiscal 2010 included a gain of $49.6 million related to the debt transactions during the year. This gain was paritally
offset by $18.3 million in related expenses. See detailed discussion in Note 5 of the Notes to the Consolidated Financial Statements contained in
Item 8 of this report. Nonoperating income in fiscal 2010 also included a $10.0 million payment received as a result of a foreign litigation
settlement.
(2) During the fourth quarter of fiscal 2012, the Company was able to conclude that given its improved performance, the realization of its deferred
tax assets was more likely than not and accordingly reversed substantially all of its valuation allowance. See Management’s Discussion and
Analysis in Item 7 for further discussion of the financial impact of this change in the valuation allowance. In fiscal 2010, the Company recorded
and received a $55.9 million tax benefit as a result of a tax law change allowing additional carryback of the Company’s net operating losses. In
fiscal years 2011, 2010, 2009 and 2008, the Company recorded minimal state and foreign tax provisions and provided a valuation allowance on
the deferred tax asset arising during those periods. See detailed discussion in Note 9 of the Notes to the Consolidated Financial Statements
contained in Item 8 of this report.
(3) The Company’s consolidated long-term debt was reduced significantly during fiscal 2011 and 2010 as a result of multiple debt transactions. See
detailed discussion in Note 5 of the Notes to the Consolidated Financial Statements contained in Item 8 of this report.
(4) The increase in shares outstanding in fiscal 2011 and 2010 was primarily the result of the Company issuing approximately 24.5 million shares of
common stock related to the conversion of its convertible debt during fiscal 2010. See detailed discussion in Note 5 of the Notes to the
Consolidated Financial Statements contained in Item 8 of this report.
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