Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
DILLARD'S, INC. | ||||
DATED: | February 25, 2020 | By: | /s/ Phillip R. Watts | |
Name: | Phillip R. Watts | |||
Title: | Senior Vice President, Co-Principal Financial Officer and Principal Accounting Officer | |||
By: | /s/ Chris B. Johnson | |||
Name: | Chris B. Johnson | |||
Title: | Senior Vice President and Co-Principal Financial Officer | |||
• | Net income of $67.7 million compared to net income of $85.1 million for the prior year fourth quarter |
• | Earnings per share of $2.75 compared to $3.22 |
• | Comparable store sales decreased 3% against a 2% increase in prior year fourth quarter |
• | Retail gross margin remained flat as a percent of sales |
• | Inventory level decreased 4% |
• | Operating expenses were $458.6 million compared to $458.0 million |
• | Share repurchase of $36.7 million |
• | Net income of $111.1 million compared to net income of $170.3 million for the prior year 52-week period |
• | Earnings per share of $4.38 compared to $6.23 |
• | Comparable store sales decreased 1% against a 2% increase in prior year |
• | Retail gross margin declined 99 basis points of sales |
• | Operating expenses were $1,691.0 million compared to $1,691.2 million |
• | Share repurchase of $138.3 million |
• | Subsequent to February 1, 2020, share repurchase of $52.8 million |
Dillard’s, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||||||
(In Millions, Except Per Share Data) | ||||||||||||||||||||||||
13 Weeks Ended | 52 Weeks Ended | |||||||||||||||||||||||
February 1, 2020 | February 2, 2019 | February 1, 2020 | February 2, 2019 | |||||||||||||||||||||
Amount | % of Net Sales | Amount | % of Net Sales | Amount | % of Net Sales | Amount | % of Net Sales | |||||||||||||||||
Net sales | $ | 1,922.9 | 100.0 | % | $ | 2,010.6 | 100.0 | % | $ | 6,203.5 | 100.0 | % | $ | 6,356.1 | 100.0 | % | ||||||||
Service charges and other income | 44.6 | 2.3 | 45.7 | 2.3 | 144.4 | 2.3 | 147.2 | 2.3 | ||||||||||||||||
1,967.5 | 102.3 | 2,056.3 | 102.3 | 6,347.9 | 102.3 | 6,503.3 | 102.3 | |||||||||||||||||
Cost of sales | 1,354.1 | 70.4 | 1,415.7 | 70.4 | 4,240.7 | 68.4 | 4,291.5 | 67.5 | ||||||||||||||||
Selling, general and administrative expenses | 458.6 | 23.8 | 458.0 | 22.8 | 1,691.0 | 27.3 | 1,691.2 | 26.6 | ||||||||||||||||
Depreciation and amortization | 59.5 | 3.1 | 55.8 | 2.8 | 222.3 | 3.6 | 223.8 | 3.5 | ||||||||||||||||
Rentals | 8.1 | 0.4 | 9.0 | 0.4 | 26.4 | 0.4 | 28.6 | 0.5 | ||||||||||||||||
Interest and debt expense, net | 11.2 | 0.6 | 12.1 | 0.6 | 46.2 | 0.7 | 52.5 | 0.8 | ||||||||||||||||
Other expense | 1.9 | 0.1 | 1.9 | 0.1 | 7.7 | 0.1 | 7.7 | 0.1 | ||||||||||||||||
Gain on disposal of assets | 8.3 | 0.4 | — | 0.0 | 20.3 | 0.3 | — | 0.0 | ||||||||||||||||
Income before income taxes | 82.4 | 4.3 | 103.8 | 5.2 | 133.9 | 2.2 | 208.0 | 3.3 | ||||||||||||||||
Income taxes | 14.7 | 18.7 | 22.8 | 37.7 | ||||||||||||||||||||
Net income | $ | 67.7 | 3.5 | % | $ | 85.1 | 4.2 | % | $ | 111.1 | 1.8 | % | $ | 170.3 | 2.7 | % | ||||||||
Basic and diluted earnings per share | $ | 2.75 | $ | 3.22 | $ | 4.38 | $ | 6.23 | ||||||||||||||||
Basic and diluted weighted average shares | 24.6 | 26.5 | 25.4 | 27.3 |
Dillard’s, Inc. and Subsidiaries | ||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
(In Millions) | ||||||||
February 1, 2020 | February 2, 2019 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 277.1 | $ | 123.5 | ||||
Accounts receivable | 46.2 | 49.9 | ||||||
Merchandise inventories | 1,465.0 | 1,528.4 | ||||||
Other current assets | 59.8 | 68.8 | ||||||
Total current assets | 1,848.1 | 1,770.6 | ||||||
Property and equipment, net | 1,458.2 | 1,586.7 | ||||||
Operating lease assets | 47.9 | — | ||||||
Other assets | 76.1 | 74.1 | ||||||
Total Assets | $ | 3,430.3 | $ | 3,431.4 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities: | ||||||||
Trade accounts payable and accrued expenses | $ | 892.8 | $ | 921.2 | ||||
Current portion of long-term debt and finance lease liabilities | 1.2 | 1.2 | ||||||
Current portion of operating lease liabilities | 14.6 | — | ||||||
Federal and state income taxes | 22.2 | 11.1 | ||||||
Total current liabilities | 930.8 | 933.5 | ||||||
Long-term debt and finance lease liabilities | 366.4 | 367.2 | ||||||
Operating lease liabilities | 32.7 | — | ||||||
Other liabilities | 273.6 | 238.8 | ||||||
Deferred income taxes | 3.5 | 13.5 | ||||||
Subordinated debentures | 200.0 | 200.0 | ||||||
Stockholders' equity | 1,623.3 | 1,678.4 | ||||||
Total Liabilities and Stockholders' Equity | $ | 3,430.3 | $ | 3,431.4 |
Dillard’s, Inc. and Subsidiaries | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
(In Millions) | ||||||||
52 Weeks Ended | ||||||||
February 1, 2020 | February 2, 2019 | |||||||
Operating activities: | ||||||||
Net income | $ | 111.1 | $ | 170.3 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization of property and other deferred cost | 224.3 | 225.8 | ||||||
Deferred income taxes | (5.4 | ) | 0.3 | |||||
Gain on disposal of assets | (20.3 | ) | — | |||||
Proceeds from insurance | 0.4 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Decrease (increase) in accounts receivable | 3.7 | (11.4 | ) | |||||
Decrease (increase) in merchandise inventories | 63.4 | (64.9 | ) | |||||
Decrease (increase) in other current assets | 9.5 | (17.4 | ) | |||||
Increase in other assets | (1.2 | ) | (10.4 | ) | ||||
(Decrease) increase in trade accounts payable and accrued expenses and other liabilities | (25.6 | ) | 104.1 | |||||
Increase (decrease) in income taxes | 5.2 | (29.2 | ) | |||||
Net cash provided by operating activities | 365.1 | 367.2 | ||||||
Investing activities: | ||||||||
Purchase of property and equipment and capitalized software | (103.4 | ) | (137.0 | ) | ||||
Proceeds from disposal of assets | 30.6 | 2.0 | ||||||
Proceeds from insurance | 2.4 | 3.5 | ||||||
Distribution from joint venture | 2.3 | 3.8 | ||||||
Net cash used in investing activities | (68.1 | ) | (127.7 | ) | ||||
Financing activities: | ||||||||
Principal payments on long-term debt and finance lease liabilities | (1.0 | ) | (162.0 | ) | ||||
Cash dividends paid | (11.5 | ) | (11.1 | ) | ||||
Purchase of treasury stock | (130.9 | ) | (129.9 | ) | ||||
Net cash used in financing activities | (143.4 | ) | (303.0 | ) | ||||
Increase (decrease) in cash and cash equivalents | 153.6 | (63.5 | ) | |||||
Cash and cash equivalents, beginning of period | 123.5 | 187.0 | ||||||
Cash and cash equivalents, end of period | $ | 277.1 | $ | 123.5 | ||||
Non-cash transactions: | ||||||||
Accrued capital expenditures | $ | 9.3 | $ | 2.6 | ||||
Accrued purchase of treasury stock | 7.3 | — | ||||||
Stock awards | 2.9 | 2.7 | ||||||
Lease assets obtained in exchange for new operating lease liabilities | 8.0 | — |
In Millions | ||||||||
2020 | 2019 | |||||||
Estimated | Actual | |||||||
Depreciation and amortization | $ | 220 | $ | 222 | ||||
Rentals | 24 | 26 | ||||||
Interest and debt expense, net | 43 | 46 | ||||||
Capital expenditures | 130 | 103 |
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Cover Page |
Feb. 25, 2020 |
---|---|
Cover page. | |
Amendment Flag | false |
Entity File Number | 1-6140 |
Document Type | 8-K |
Document Period End Date | Feb. 25, 2020 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 1600 Cantrell Road |
Entity Address, City or Town | Little Rock |
Entity Address, State or Province | AR |
Entity Tax Identification Number | 71-0388071 |
Entity Address, Postal Zip Code | 72201 |
City Area Code | 501 |
Local Phone Number | 376-5200 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000028917 |
Entity Registrant Name | DILLARDS, INC. |
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