COLUMBUS, Ohio, March 28, 2011 /PRNewswire/ -- Retail Ventures, Inc. today announced its consolidated financial results for the fourth quarter and year ended January 29, 2011.
-- The income from continuing operations for the quarter ended January 29,
2011 was $5.7 million on net sales of $468.5 million, compared to the
loss from continuing operations of $5.3 million on net sales of $402.6
million for the quarter ended January 30, 2010. DSW same store sales
increased 14.9% during the fourth quarter versus an increase of 12.9%
last year.
-- Diluted loss per share from continuing operations attributable to Retail
Ventures, Inc. common shareholders was $0.03 for the fourth quarter
compared with diluted loss per share from continuing operations
attributable to Retail Ventures, Inc. of $0.21 per share last year.
-- The income from continuing operations for the year ended January 29,
2011 was $51.8 million on net sales of $1.82 billion, compared to loss
from continuing operations of $65.6 million on net sales of $1.60
billion for the prior year. DSW same store sales increased 13.2% for
the year versus an increase of 3.2% last year.
-- Diluted earnings per share from continuing operations attributable to
Retail Ventures, Inc. common shareholders was $0.23 per share for the
year compared with diluted loss per share from continuing operations
attributable to Retail Ventures, Inc. of $1.76 per share last year.
Retail Ventures, Inc. is a leading off-price retailer operating as of January 29, 2011, 311 DSW shoe stores in 39 states and an e-commerce site, www.dsw.com. DSW also supplies shoes, under supply arrangements, to 352 locations for four retailers in the United States.
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 2011 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: the anticipated benefits of the proposed merger with DSW taking longer to realize or not being achieved in their entirety; the proposed merger with DSW being more expensive to complete than anticipated, including as a result of unexpected factors or events; the possibility of adverse publicity or litigation related to the proposed merger with DSW, including an adverse outcome thereof and the costs and expenses associated therewith; the risk that the proposed merger with DSW will not close, will be delayed or not close when expected; our ability to manage and enhance liquidity; fluctuations in the trading price and volume of Retail Ventures and DSW common shares; we are controlled by Schottenstein Stores Corporation and its affiliates who may compete directly against us and whose interest may differ from our other shareholders; 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 sales and quarterly financial performance; the realization of our bankruptcy claims related to liquidating Filene's Basement and Value City; RVI's reliance on a credit facility from SEI, Inc. to pay ongoing expenses, indebtedness and intercompany service obligations; the risk of 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 and fulfillment operations; our dependence on DSW for key services; failure to retain DSW's or our key executives or attract qualified new personnel; DSW's competitiveness with respect to style, price, brand availability and customer service; DSW's reliance on "DSW Rewards" program to drive traffic, sales and loyalty; uncertain general economic conditions; risks inherent to international trade with countries that are major manufacturers of footwear; lease of an office facility; risks related to our cash and investments; and risks related to our Premium Income Exchangeable Securities. 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)
January 29, January 30, 2011 2010 ASSETS Cash and equivalents $99,126 $141,773 Short-term investments 241,557 164,265 Accounts receivable, net 13,186 6,663 Inventories 309,013 262,284 Prepaid expenses and other current assets 30,900 22,478 Deferred income taxes 49,354 29,560 --------------------- ------ ------ Total current assets 743,136 627,023 -------------------- ------- ------- Property and equipment, net 212,342 208,813 Goodwill 25,899 25,899 Conversion feature of long- term debt 28,029 Deferred income taxes 5,657 Long-term investments 49,987 1,151 Other assets 10,113 6,893 ------------ ------ ----- Total assets $1,041,477 $903,465 ------------ ---------- -------- LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $150,276 $121,277 Accrued expenses 113,100 113,474 Conversion feature of short- term debt 6,375 Warrant liability 20,624 23,068 Current maturities of long- term debt 132,132 --------------------------- ------- Total current liabilities 422,507 257,819 ------------------------- ------- ------- Long-term obligations, net of current maturities 129,757 Other non current liabilities 104,182 109,958 Deferred income taxes 25,919 2,641 Total Retail Ventures' shareholders' equity 245,181 205,869 Noncontrolling interests 243,688 197,421 ------------------------ ------- ------- Total shareholders' equity 488,869 403,290 -------------------------- ------- ------- Total liabilities and shareholders' equity $1,041,477 $903,465 --------------------- ---------- --------
RETAIL VENTURES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts) (unaudited)
Three months ended Twelve months ended January 29, January 30 January 29, January 30 2011 2010 2011 2010 ---- ---- ---- ---- Net sales $468,450 $402,648 $1,822,376 $1,602,605 Cost of sales (272,482) (224,049) (1,010,108) (890,465) -------- -------- ---------- -------- Gross profit 195,968 178,599 812,268 712,140 Selling, general and administrative expenses (162,747) (154,345) (642,694) (685,485) Change in fair value of derivative instruments (3,171) (25,721) (49,014) (66,499) ------ ------- ------- ------- Operating profit (loss) 30,050 (1,467) 120,560 (39,844) Interest expense, net (2,906) (3,557) (10,267) (11,344) Non-operating (expense) income, net (1,746) 1,500 (2,367) ------ ----- ------ Income (loss) from continuing operations before income taxes 27,144 (6,770) 111,793 (53,555) Income tax (expense) benefit (21,441) 1,452 (59,973) (12,055) ------- ----- ------- ------- Income (loss) from continuing operations 5,703 (5,318) 51,820 (65,610) Total income from discontinued operations, net of tax 1,467 15,216 6,628 59,880 ----- ------ ----- ------ Net income (loss) 7,170 9,898 58,448 (5,730) Less: net income attributable to the noncontrolling interests (7,012) (5,002) (40,654) (20,361) ------ ------ ------- ------- Net income (loss) attributable to Retail Ventures, Inc. $158 $4,896 $17,794 $(26,091) ---- ------ ------- -------- Basic and diluted earnings (loss) per share: Basic (loss) earnings per share from continuing operations attributable to Retail Ventures, Inc. common shareholders $(0.03) $(0.21) $0.23 $(1.76) Diluted (loss) earnings per share from continuing operations attributable to Retail Ventures, Inc. common shareholders $(0.03) $(0.21) $0.23 $(1.76) Basic earnings per share from discontinued operations attributable to Retail Ventures, Inc. common shareholders $0.03 $0.31 $0.13 $1.23 Diluted earnings per share from discontinued operations attributable to Retail Ventures, Inc. common shareholders $0.03 $0.31 $0.13 $1.23 Basic earnings (loss) per share attributable to Retail Ventures, Inc. common shareholders $0.00 $0.10 $0.36 $(0.53) Diluted earnings (loss) per share attributable to Retail Ventures, Inc. common shareholders $0.00 $0.10 $0.36 $(0.53) Shares used in per share calculations: Basic 50,054 48,947 49,284 48,878 Diluted 50,054 48,947 49,601 48,878 Amounts attributable to Retail Ventures, Inc. common shareholders: (Loss) income from continuing operations, net of tax $(1,309) $(10,320) $11,166 $(85,971) Discontinued operations, net of tax 1,467 15,216 6,628 59,880 ----- ------ ----- ------ Net income (loss) $158 $4,896 $17,794 $(26,091) ---- ------ ------- --------
Retail Ventures, Inc.
CONTACT: Jim McGrady, Chief Financial Officer, +1-614-238-4105
Web site: http://www.retailventuresinc.com/
