Pier 1 2016 Annual Report Download - page 25

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ITEM 6. SELECTED FINANCIAL DATA.
Item 6. Selected Financial Data.
FINANCIAL SUMMARY
Year Ended
2016 2015 2014 2013 (2) 2012
($ in millions except per share amounts)
SUMMARY OF OPERATIONS:
Net sales (1) $1,892.2 1,884.6 1,791.4 1,724.2 1,552.4
Gross profit (1) $ 705.0 768.5 765.3 762.3 669.9
Selling, general and administrative expenses (1) $ 578.8 594.9 550.9 532.4 493.9
Depreciation $ 50.9 46.3 38.9 31.0 21.2
Operating income $ 75.2 127.3 175.5 199.0 154.8
Operating income as a % of sales 4.0% 6.8% 9.8% 11.5% 10.0%
Nonoperating (income) and expenses, net (5) $ 12.0 6.9 0.9 (2.0) (9.3)
Income before income taxes $ 63.2 120.4 174.6 201.0 164.1
Net income (3) $ 39.6 75.2 107.5 129.4 168.9
PER SHARE AMOUNTS:
Basic earnings $ 0.47 0.83 1.03 1.22 1.50
Diluted earnings $ 0.46 0.82 1.01 1.20 1.48
Cash dividends declared $ 0.28 0.24 0.21 0.17 —
OTHER FINANCIAL DATA:
Working capital (4)(7) $ 328.2 365.5 306.4 403.9 402.2
Current ratio (7) 2.3 2.3 2.2 2.6 2.6
Total assets (7) $ 819.2 906.9 800.2 857.1 823.2
Long-term debt (5)(7) $ 200.3 201.4 9.4 9.4 9.4
Shareholders’ equity $ 284.8 337.3 449.4 537.1 493.6
Weighted average diluted shares outstanding (millions) (6) 85.4 92.1 106.2 108.3 114.4
Effective tax rate (%) (3) 37.3% 37.6% 38.4% 35.6% (2.9%)
(1) In the table above, the Company has revised the presentation of the reporting of credit and debit card fees (“Credit Card Fees”) for all periods presented. The Company previously reported
Credit Card Fees as a reduction to net sales and has revised its presentation to report Credit Card Fees as a component of selling, general and administrative (“SG&A”) expenses. This
revised presentation results in an immaterial increase to both net sales and SG&A expenses. There is no impact to operating income, net income, the balance sheet or statement of cash
flows.
(2) Fiscal 2013 consisted of a 53-week year. All other fiscal years presented reflect a 52-week year.
(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.
(4) The reduction in working capital in fiscal 2014 was primarily the result of increased share repurchases compared to fiscal 2013.
(5) The Company’s consolidated long-term debt and related interest expense (which is included in nonoperating (income) and expenses, net) increased significantly in fiscal 2015 as a result of
borrowings under the Company’s Term Loan Facility.
(6) The decrease in shares outstanding during fiscal 2016, 2015, 2014, 2013 and 2012 was primarily the result of the Company’s Board-approved share repurchase programs. Under these
programs, the Company repurchased 7,460,935; 10,280,312; 9,788,257; 5,822,142 and 9,498,650 shares of its common stock in fiscal 2016, 2015, 2014, 2013 and 2012, respectively.
(7) Certain items have been reclassified to conform to the current year presentation.
PIER 1 IMPORTS, INC. 2016 Form 10-K 19