SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
| Date of Report (date of earliest event reported) | November 13, 2003 |
(Exact name of registrant as specified in its charter)
|
Delaware
(State or other jurisdiction of incorporation) |
0-23071 (Commission File Number) |
31-1241495 (IRS Employer ID Number) |
| 915 Secaucus Road, Secaucus, New Jersey | 07094 |
| (Address of principal executive offices) | (Zip Code) |
| Registrant's Telephone Number, including area code: | (201) 558-2400 |
(Former name or former address, if changed since last report)
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
| Exhibit Number 99 |
Description Press release dated November 13, 2003. |
Item 9. Regulation FD Disclosure.
On November 13, 2003, The Children’s Place Retail Stores, Inc. issued a press release announcing financial information for the fiscal quarter ended November 1, 2003. A copy of this press release is included as Exhibit 99 hereto. The information provided in this Current Report on Form 8-K is being furnished pursuant to Item 12, Results of Operations and Financial Condition.
[Remainder of page intentionally left blank;
signature on following page.]
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
THE CHILDREN'S PLACE RETAIL STORES, INC. By: /s/ Seth L. Udasin Name: Seth L. Udasin Title: Vice President and Chief Financial Officer |
Dated: November 13, 2003
INDEX TO EXHIBITS
Current Report on Form 8-K
Dated November 13, 2003
The Children's Place Retail Stores, Inc
| Exhibit No. 99 |
Description Press Release issued by the Company on November 13, 2003 |
EXHIBIT 99
PRESS RELEASE
FOR IMMEDIATE RELEASE
THE CHILDREN'S PLACE REPORTS 2003 THIRD QUARTER
FINANCIAL RESULTS
~ Net Sales Increase 29%; Comparable Store Sales Increase 14% ~
~ Earnings Per Share Increase to $0.43, Compared to $0.06 Last Year ~
~ Company Plans to Open Approximately 70 Stores in Fiscal 2004 ~
Secaucus, New Jersey - November 13, 2003 - The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) today reported financial results for the third quarter and nine months ended November 1, 2003.
Third Quarter
| • | Net sales for the third quarter increased 29% to $223.3 million, compared with $173.4 million for the same period in 2002. |
| • | Comparable store sales increased 14% in the quarter, versus a 21% decrease for the same period last year. |
| • | Net income was $11.6 million, compared to net income of $1.6 million last year. |
| • | Earnings per share were $0.43 compared to earnings per share of $0.06 in the 2002 period. |
| • | The Company opened 11 new stores during the third quarter, and closed one. |
Nine-Month Period
| • | Net sales for the nine-month period increased 19% to $563.4 million, from $474.7 million for the same period in 2002. |
| • | Comparable store sales increased 1% for the period, compared to a 15% decrease for the same period last year. |
| • | Net income was $7.8 million, compared to net income of $6.6 million in the year-ago period. |
| • | Earnings per share were $0.29 compared to earnings per share of $0.25 in the 2002 period. |
| • | The Company opened 49 new stores during the nine-month period, and closed three. |
"We are very pleased with our third quarter financial results, as our cohesive brand message continued to build positive momentum with the consumer,” said Ezra Dabah, Chairman and Chief Executive Officer of The Children’s Place. “Our performance in the quarter represents the realization of our ongoing strategic initiatives."
"Following a successful Back-to-School season, our Holiday season is off to a strong start with the positive customer response to our first Holiday assortment. The consistency demonstrated in our execution is key to building customer loyalty for the Holiday season, and beyond. We are confident in our merchandise offering and marketing efforts, and believe our inventory is clean and well-positioned to drive a successful Holiday season."
Mr. Dabah also noted that the Company is continuing to expand its store base, and now expects to increase its new store openings to approximately 70 in fiscal 2004, including its first stores in Puerto Rico.
The Children's Place will host a webcast of its third quarter conference call today at 10:00 a.m., Eastern Time. Interested parties are invited to listen to the call at the Company’s web site, www.childrensplace.com. An archive of the webcast will be available on the site through Thursday, November 20, 2003.
The Children's Place Retail Stores, Inc. is a leading specialty retailer of high quality, value-priced apparel and accessories for children, newborn to age ten. The Company designs, contracts to manufacture and sells its products under the “The Children’s Place” brand name. As of November 1, 2003, the Company operated 689 stores, including 649 stores in the United States and 40 stores in Canada. The Company also sells its merchandise through its virtual store located at www.childrensplace.com.
This press release and above referenced call may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Company’s current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission. Actual results, events, and performance may differ. Readers or listeners (on the call) are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by The Children's Place or any other person that the events or circumstances described in such statement are material.
| Contact: | The Children's Place Seth Udasin, Chief Financial Officer, 201/558-2409 Heather Anthony, Director, Investor Relations, 201/558-2865 |
(Tables Follow)
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
13 Weeks Ended: 39 Weeks Ended:
November 1, November 2, November 1, November 2,
2003 2002 2003 2002
------------ ------------ ------------- ------------
Net sales $ 223,277 $ 173,403 $ 563,369 $ 474,745
Cost of sales 131,987 111,663 351,719 297,492
----------- ---------- ----------- -----------
Gross profit 91,290 61,740 211,650 177,253
Selling, general and
administrative expenses 62,083 49,949 169,462 140,919
Depreciation and amortization 10,154 9,300 29,557 26,011
----------- ---------- ----------- -----------
Operating income 19,053 2,491 12,631 10,323
Interest expense (income), net 17 (118) (128) (483)
----------- ---------- ----------- -----------
Income before income taxes 19,036 2,609 12,759 10,806
Provision for income taxes 7,424 1,005 4,977 4,161
----------- ---------- ----------- -----------
Net income $ 11,612 $ 1,604 $ 7,782 $ 6,645
=========== ========== =========== ===========
Basic income per share $ 0.44 $ 0.06 $ 0.29 $ 0.25
Basic weighted average number
of shares outstanding 26,640 26,523 26,620 26,481
Diluted income per share $ 0.43 $ 0.06 $ 0.29 $ 0.25
Diluted weighted average number
of shares outstanding 27,153 26,756 26,961 27,064
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED BALANCE SHEETS
(In thousands)
November 1, 2003 February 1, 2003 November 2, 2002
---------------- ---------------- ----------------
(Unaudited) (Unaudited)
Current assets:
Cash and cash equivalents $ 44,182 $ 36,645 $ 14,446
Accounts receivable 12,747 13,571 17,047
Inventories 95,893 75,417 84,343
Other current assets 21,065 19,570 24,849
---------- ---------- -----------
Total current assets 173,887 145,203 140,685
Property and equipment, net 149,354 155,000 161,537
Other assets, net 9,200 9,125 6,129
---------- ---------- -----------
Total assets $ 332,441 $ 309,328 $ 308,351
========== ========== ===========
Current liabilities:
Revolving credit facility $ 0 $ 0 $ 0
Accounts payable 34,152 30,805 32,500
Accrued expenses and
other current liabilities 44,008 35,124 36,947
---------- ---------- -----------
Total current liabilities 78,160 65,929 69,447
Other liabilities 15,815 14,391 13,405
---------- ---------- -----------
Total liabilities 93,975 80,320 82,852
Stockholders' equity 238,466 229,008 225,499
---------- ---------- -----------
Total liabilities and stockholders' equity $ 332,441 $ 309,328 $ 308,351
========== ========== ===========
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