COLUMBUS, Ohio, Dec. 8, 2010 /PRNewswire-FirstCall/ -- Retail Ventures, Inc. today announced its consolidated financial results for the third quarter ended October 30, 2010.
-- The income (loss) from continuing operations for the quarter ended October 30, 2010 was a profit of $7.9 million on net sales of $489.3 million, compared to a loss of $3.9 million on net sales of $444.6 million for the quarter ended October 31, 2009. DSW same store sales increased 10.1% during the third quarter versus an increase of 8.7% last year. -- Diluted (loss) earnings per share from continuing operations attributable to Retail Ventures, Inc. common shareholders was $0.11 for the quarter ended October 30, 2010 compared with diluted loss per share from continuing operations attributable to Retail Ventures, Inc. of $0.28 per share for the quarter ended October 31, 2009.
Retail Ventures, Inc. is a holding company whose subsidiary, DSW, is a leading United States branded footwear specialty retailer operating as of October 30, 2010, 313 DSW shoe stores in 39 states. DSW also supplies shoes, under supply arrangements, to 351 locations for other retailers in the United States and operates dsw.com.
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; risks related to our cash and investments and various risks associated with the Value City bankruptcy proceedings. 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.
RETAIL VENTURES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited) October 30, January 30, 2010 2010 ---- ---- ASSETS Cash and equivalents $113,927 $141,773 Short-term investments 206,065 164,265 Accounts receivable, net 11,631 6,663 Inventories 332,446 262,284 Prepaid expenses and other current assets 30,218 22,478 Deferred income taxes 34,571 29,560 --------------------- ------ ------ Total current assets 728,858 627,023 -------------------- ------- ------- Property and equipment, net 208,804 208,813 Goodwill 25,899 25,899 Conversion feature of long-term debt 28,029 Deferred income taxes and other assets 36,182 13,701 ------------------------------- ------ ------ Total assets $999,743 $903,465 ------------ -------- -------- LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $139,933 $121,277 Accrued expenses 110,718 113,474 Current maturities of long-term obligations 131,519 Warrant liability 34,328 23,068 Conversion feature of short-term debt 6,553 ------------------------------------- ----- Total current liabilities 423,051 257,819 ------------------------- ------- ------- Long-term obligations 129,757 Deferred income taxes and other non current liabilities 114,170 112,599 Total Retail Ventures' shareholders' equity 227,591 205,869 Noncontrolling interests 234,931 197,421 ------------------------ ------- ------- Total shareholders' equity 462,522 403,290 -------------------------- ------- ------- Total liabilities and shareholders' equity $999,743 $903,465 ----------------------------------- -------- -------- RETAIL VENTURES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts) (unaudited) Three months ended Nine months ended October 30, October 31, October 30, October 31, 2010 2009 2010 2009 ---- ---- ---- ---- Net sales $489,269 $444,621 $1,353,926 $1,199,957 Cost of sales (268,485) (238,549) (737,626) (666,416) -------- -------- -------- -------- Gross profit 220,784 206,072 616,300 533,541 Selling, general and administrative expenses (171,883) (164,862) (479,947) (531,140) Change in fair value of derivative instruments (31,681) (30,701) (45,843) (40,778) ------- ------- ------- ------- Operating profit (loss) 17,220 10,509 90,510 (38,377) Interest expense, net (2,077) (2,610) (7,361) (7,787) Non-operating income (expense), net 1,500 (754) 1,500 (621) ----- ---- ----- ---- Income (loss) from continuing operations before income taxes 16,643 7,145 84,649 (46,785) Income tax expense (8,726) (11,079) (38,532) (13,507) ------ ------- ------- ------- Income (loss) from continuing operations 7,917 (3,934) 46,117 (60,292) Total income (loss) from discontinued operations, net of tax 2,191 (295) 5,161 44,664 ----- ---- ----- ------ Net income (loss) 10,108 (4,229) 51,278 (15,628) Less: net income attributable to the noncontrolling interests (13,428) (9,900) (33,642) (15,359) ------- ------ ------- ------- Net (loss) income attributable to Retail Ventures, Inc. $(3,320) $(14,129) $17,636 $(30,987) ------- -------- ------- -------- Basic and diluted (loss) earnings per share: Basic (loss) earnings per share from continuing operations attributable to Retail Ventures, Inc. common shareholders $(0.11) $(0.28) $0.25 $(1.55) Diluted (loss) earnings per share from continuing operations attributable to Retail Ventures, Inc. common shareholders $(0.11) $(0.28) $0.25 $(1.55) Basic earnings (loss) per share from discontinued operations attributable to Retail Ventures, Inc. common shareholders $0.04 $(0.01) $0.11 $0.91 Diluted earnings (loss) per share from discontinued operations attributable to Retail Ventures, Inc. common shareholders $0.04 $(0.01) $0.10 $0.91 Basic (loss) earnings per share attributable to Retail Ventures, Inc. common shareholders $(0.07) $(0.29) $0.36 $(0.63) Diluted (loss) earnings per share attributable to Retail Ventures, Inc. common shareholders $(0.07) $(0.29) $0.36 $(0.63) Shares used in per share calculations: Basic 49,037 48,938 49,028 48,855 Diluted 49,037 48,938 49,315 48,855 Amounts attributable to Retail Ventures, Inc. common shareholders: (Loss) income from continuing operations, net of tax $(5,511) $(13,834) $12,475 $(75,651) Discontinued operations, net of tax 2,191 (295) 5,161 44,664 ----- ---- ----- ------ Net (loss) income $(3,320) $(14,129) $17,636 $(30,987) ------- -------- ------- --------
Retail Ventures, Inc.
CONTACT: Jim McGrady, Chief Financial Officer, +1-614-238-4105
Web Site: http://www.retailventuresinc.com/
