EX-99.1 2 c05650exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
Retail Ventures, Inc. Reports Second Quarter Operating Results
Columbus, Ohio, September 9, 2010 /PRNewswire/ — Retail Ventures, Inc. (NYSE: RVI) today announced its consolidated financial results for the second quarter ended July 31, 2010.
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The income from continuing operations for the quarter ended July 31, 2010 was $35.6 million on net sales of $415.1 million, compared to loss from continuing operations of $4.4 million on net sales of $369.5 million for the quarter ended August 1, 2009. DSW same store sales increased 12.0% during the second quarter versus a decrease of 2.9% last year.
 
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Diluted earnings per share from continuing operations attributable to Retail Ventures, Inc. common shareholders was $0.43 for the quarter ended July 31, 2010 compared with diluted loss per share from continuing operations attributable to Retail Ventures, Inc. of $0.15 per share for the quarter ended August 1, 2009.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Any statements in this release that are not historical or current facts are forward-looking statements. All forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that could cause our future financial performance in fiscal 2010 and beyond to differ materially from those expressed or implied in any such forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors” section of the Company’s latest quarterly or annual report, as filed with the SEC. These factors include, but are not limited to: our ability to manage and enhance liquidity; DSW’s success in opening and operating new stores on a timely and profitable basis; continuation of DSW’s supply agreements and the financial condition of its leased business partners; DSW maintaining good relationships with its vendors; DSW’s ability to anticipate and respond to fashion trends; fluctuation of DSW’s comparable store sales and quarterly financial performance; the realization of our bankruptcy claims related to liquidating Filene’s Basement and Value City; the impact of the disposition of Filene’s Basement and of a majority interest in Value City and the reliance on remaining subsidiaries to pay indebtedness and intercompany service obligations; the risk of Value City and liquidating Filene’s Basement not paying us or their creditors, for which Retail Ventures may have some liability; the risk of new Filene’s Basement not paying obligations related to the assets it has assumed from liquidating Filene’s Basement if such obligations are subject to ongoing guarantee by us; the impact of Value City and Filene’s Basement on our liquidity; disruption of DSW’s distribution operations; our dependence on DSW for key services; failure to retain our key executives or attract qualified new personnel; DSW’s competitiveness with respect to style, price, brand availability and customer service; uncertain general economic conditions; risks inherent to international trade with countries that are major manufacturers of footwear; the success of dsw.com; lease of an office facility and risks related to our cash and investments. Additional factors that could cause our actual results to differ materially from our expectations are described in the Company’s latest annual or quarterly report, as filed with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to revise the forward-looking statements included in this press release to reflect any future events or circumstances.
SOURCE: Retail Ventures, Inc.
Contact: Jim McGrady, Chief Financial Officer — (614) 238-4105

 

 

 

RETAIL VENTURES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
                 
    July 31,     January 30,  
    2010     2010  
 
                
ASSETS
                
Cash and equivalents
   $ 86,252     $ 141,773  
Short-term investments
     198,964       164,265  
Accounts receivable, net
     11,864       6,663  
Inventories
     309,143       262,284  
Prepaid expenses and other current assets
     23,060       22,478  
Deferred income taxes
     33,206       29,560  
 
            
Total current assets
     662,489       627,023  
 
            
 
                
Property and equipment, net
     203,746       208,813  
Goodwill
     25,899       25,899  
Conversion feature of long-term debt
     16,918       28,029  
Deferred income taxes and other assets
     37,779       13,701  
 
            
Total assets
   $ 946,831     $ 903,465  
 
            
 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Accounts payable
   $ 141,216     $ 121,277  
Accrued expenses
     93,266       113,474  
Warrant liability
     26,119       23,068  
 
            
Total current liabilities
     260,601       257,819  
 
            
 
                
Long-term obligations
     130,919       129,757  
Other non current liabilities
     105,038       112,599  
 
                
Total Retail Ventures’ shareholders’ equity
     229,577       205,869  
Noncontrolling interests
     220,696       197,421  
 
            
Total shareholders’ equity
     450,273       403,290  
 
            
Total liabilities and shareholders’ equity
   $ 946,831     $ 903,465  
 
            

 

 

 

RETAIL VENTURES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(unaudited)
                                 
    Three months ended     Six months ended  
    July 31,     August 1,     July 31,     August 1,  
    2010     2009     2010     2009  
Net sales
   $ 415,120     $ 369,490     $ 864,657     $ 755,336  
Cost of sales
     (227,599 )     (210,267 )     (469,141 )     (427,867 )
 
                        
Gross profit
     187,521       159,223       395,516       327,469  
Selling, general and administrative expenses
     (148,489 )     (151,290 )     (308,064 )     (366,278 )
Change in fair value of derivative instruments
     17,173       (8,689 )     (14,162 )     (10,077 )
 
                        
Operating profit (loss)
     56,205       (756 )     73,290       (48,886 )
Interest expense, net
     (2,945 )     (2,433 )     (5,284 )     (5,177 )
Non-operating income, net
             528               133  
 
                        
Income (loss) from continuing operations before income taxes
     53,260       (2,661 )     68,006       (53,930 )
Income tax expense
     (17,630 )     (1,763 )     (29,806 )     (2,428 )
 
                        
Income (loss) from continuing operations
     35,630       (4,424 )     38,200       (56,358 )
Total income from discontinued operations, net of tax
     127       23,332       2,970       44,959  
 
                        
Net income (loss)
     35,757       18,908       41,170       (11,399 )
Less: net income attributable to the noncontrolling interests
     (8,851 )     (2,810 )     (20,214 )     (5,459 )
 
                        
Net income (loss) attributable to Retail Ventures, Inc.
   $ 26,906     $ 16,098     $ 20,956     $ (16,858 )
 
                        
 
                                
Basic and diluted earnings (loss) per share:
                                
Basic earnings (loss) per share from continuing operations attributable to Retail Ventures, Inc. common shareholders
   $ 0.55     $ (0.15 )   $ 0.37     $ (1.27 )
Diluted earnings (loss) per share from continuing operations attributable to Retail Ventures, Inc. common shareholders
   $ 0.43     $ (0.15 )   $ 0.36     $ (1.27 )
Basic earnings per share from discontinued operations attributable to Retail Ventures, Inc. common shareholders
   $ 0.00     $ 0.48     $ 0.06     $ 0.92  
Diluted earnings per share from discontinued operations attributable to Retail Ventures, Inc. common shareholders
   $ 0.00     $ 0.48     $ 0.06     $ 0.92  
Basic earnings (loss) per share attributable to Retail Ventures, Inc. common shareholders
   $ 0.55     $ 0.33     $ 0.43     $ (0.35 )
Diluted earnings (loss) per share attributable to Retail Ventures, Inc. common shareholders
   $ 0.44     $ 0.33     $ 0.43     $ (0.35 )
 
                                
Shares used in per share calculations:
                                
Basic
     49,032       48,934       49,023       48,813  
Diluted
     51,172       48,934       49,302       48,813  
 
                                
Amounts attributable to Retail Ventures, Inc. common shareholders:
                                
Income (loss) from continuing operations, net of tax
   $ 26,779     $ (7,234 )   $ 17,986     $ (61,817 )
Discontinued operations, net of tax
     127       23,332       2,970       44,959  
 
                        
Net income (loss)
   $ 26,906     $ 16,098     $ 20,956     $ (16,858 )
 
                        
SOURCE: Retail Ventures, Inc.