Pier 1 2013 Annual Report Download - page 23

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Item 6. Selected Financial Data.
FINANCIAL SUMMARY
Year Ended
2013 (1) 2012 2011 2010 2009
($ in millions except per share amounts)
SUMMARY OF OPERATIONS:
Net sales $ 1,704.9 1,533.6 1,396.5 1,290.9 1,320.7
Gross profit $ 743.1 651.2 555.4 440.4 363.5
Selling, general and administrative expenses $ 513.1 475.2 431.9 421.2 453.5
Depreciation and amortization $ 31.0 21.2 19.7 22.5 30.6
Operating income (loss) $ 199.0 154.8 103.7 (3.3) (120.6)
Operating income (loss) as a % of sales 11.7% 10.1% 7.4% (0.3%) (9.1%)
Nonoperating (income) and expenses, net (2) $ (2.0) (9.3) 0.2 (35.3) 8.1
Income (loss) before income taxes $ 201.0 164.1 103.5 32.1 (128.6)
Net income (loss) (3) $ 129.4 168.9 100.1 86.8 (129.3)
PER SHARE AMOUNTS:
Basic earnings (loss) $ 1.22 1.50 .86 .86 (1.45)
Diluted earnings (loss) $ 1.20 1.48 .85 .86 (1.45)
Cash dividends declared $ .17 ----
Shareholders’ equity - diluted $ 4.96 4.31 3.51 3.01 1.62
OTHER FINANCIAL DATA:
Working capital $ 410.8 404.9 415.6 316.7 299.9
Current ratio 2.7 2.7 2.8 2.3 2.3
Total assets $ 857.2 823.4 743.6 643.0 655.5
Long-term debt (4) $ 9.5 9.5 9.5 19.0 184.0
Shareholders’ equity $ 537.1 493.6 412.9 303.1 144.3
Weighted average diluted shares outstanding (millions) (5) 108.3 114.4 117.5 100.7 88.9
Effective tax rate (%) (3) 35.6 (2.9) 3.3 (171.0) (0.5)
(1) Fiscal 2013 consisted of a 53-week year. All other fiscal years presented reflect 52-week years.
(2) Nonoperating income for fiscal 2010 included a gain of $49.6 million related to the debt transactions during the year. This gain was partially
offset by $18.3 million in related expenses. Nonoperating income in fiscal 2010 also included a $10.0 million payment received as a result of a
foreign litigation settlement.
(3) 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. 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, and 2009, the Company recorded minimal state and foreign tax provisions and provided a valuation allowance on the
deferred tax asset arising during those periods.
(4) The Company’s consolidated long-term debt was reduced significantly during fiscal 2011 and 2010 as a result of multiple debt transactions.
(5) 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. The decrease in shares outstanding during fiscal 2012 and 2013
was primarily the result of the Company’s Board approved share repurchase program. Under this program, the Company repurchased 9,498,650
and 5,822,142 shares in fiscal 2012 and 2013, respectively.
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