ST. LOUIS, April 20 /PRNewswire-FirstCall/ -- CPI
Corp. (NYSE: CPY) today reported results for the fiscal
fourth quarter and year ended February 6,
2010.
- Fourth-quarter comparable same-store sales, described
herein, decreased 1% versus the prior-year fourth quarter.
- Fourth-quarter PictureMe Portrait Studio® brand comparable
store sales increased 6% year-over-year.
- Fourth-quarter Sears Portrait Studio brand comparable store
sales decreased 8% year-over-year.
- Fourth-quarter Adjusted EBITDA and diluted EPS improved to
$37.7 million and $3.07 per share, respectively, versus
$35.5 million and $1.42 per share in the prior year
period.
- Full-year Adjusted EBITDA and diluted EPS improved to
$53.6 million and $1.97 per share, respectively, on the strength of
significant productivity improvement across the organization.
Diluted EPS for the year was negatively impacted by special
charges totaling approximately $0.29
per share after-tax primarily associated with severance and lab
closure costs, a proxy contest and litigation.
- New agreement with Toys "R" Us and purchase of certain
Kiddie Kandids, LLC assets is expected to be strongly accretive to
earnings in fiscal year 2010 with substantial incremental gains to
sales and profit in 2011 and 2012.
"We are extremely pleased with our finish to the fiscal year,
particularly in light of continuing difficult industry conditions,"
said Renato Cataldo, president and
chief executive officer. "Even as we drove productivity gains
and improved margins, we also increased our value proposition to
customers and raised customer satisfaction levels. Our
stabilizing top-line and improved cost structure and customer
service capabilities position us to generate higher earnings in
fiscal 2010 and beyond." Commenting on the new agreement with
Toys "R" Us and purchase of certain Kiddie Kandids, LLC assets, Mr.
Cataldo said, "We expect the opening of Kiddie Kandids studio
locations to bring large additional gains in sales and earnings
over the next two years and to broaden significantly our customer
base and host relationships."
Fourth-quarter 2009 Results
Net sales for the 12-week fourth quarter of fiscal 2009
decreased 9%, to $140.2 million from
the $153.9 million reported in the
13-week fiscal 2008 fourth quarter. Excluding negative
impacts of a shift in calendar and the additional operating week
($12.8 million), store closures
($2.9 million) and other net items
($0.2 million) and the positive
impact of foreign currency translation ($3.0
million), comparable same-store sales decreased
approximately 1%. The calendar adjustment accounts for the
shift in the Veterans Day week from
the fourth quarter in 2008 to the third quarter in 2009.
Veterans Day week initiates the holiday season for portrait
activity, and, therefore, we believe this adjustment is necessary
to achieve comparability.
The Company also reported net income of $21.7 million, or $3.07 per diluted share, for the fiscal 2009
fourth quarter, compared with $9.5
million, or $1.42 per diluted
share, reported for the fourth quarter of fiscal 2008. The
improvement in net income year-over-year reflects the impact of
cost reductions and productivity improvements implemented
throughout the organization; a decline in one-time charges and the
recognition of a $2.1 million net
foreign tax credit benefit ($0.30 per
diluted share) in fiscal 2009. Fourth-quarter Adjusted EBITDA
increased to $37.7 million versus
$35.5 million in the prior-year
comparable period.
Net sales from the Company's PictureMe Portrait Studio® brand
(PMPS), on a comparable same-store basis, excluding impacts of the
shift in calendar and the additional operating week, store
closures, foreign currency translation and other items totaling
($6.4 million), increased 6% in the
fourth quarter of 2009 to $66.7
million from $62.7 million in
the fourth quarter of 2008. The increase in PMPS sales
performance for the fourth quarter was the result of a significant
increase of 13% in average sale per customer sitting, primarily as
a result of customers' positive response to offerings made possible
by the digital conversion and new sales and performance management
processes, offset in part by an approximate 6% decrease in the
number of sittings.
During the fourth quarter of 2009, net sales from the Company's
Sears Portrait Studio brand (SPS), on a comparable same-store
basis, excluding impacts of a shift in calendar and the additional
operating week, foreign currency translation and other items
totaling ($6.1 million), were
$64.3 million, a decrease of 8% from
$70.2 million in the fourth quarter
of 2008. SPS sales performance for the fourth quarter
was the result of a decline of approximately 14% in the number of
sittings, offset in part by an increase of 6% in average sale per
customer sitting.
Cost of sales, excluding depreciation and amortization expense,
declined to $9.0 million in the
fourth quarter of 2009, from $11.9
million in the fourth quarter of 2008. The
decrease is principally attributable to improved product mix,
increased productivity from lab consolidations and savings
generated from in-house production of greeting cards and shipping
efficiencies.
Selling, general and administrative (SG&A) expense declined
to $93.7 million in the fourth
quarter from $107.5 million in the
prior year-quarter. Excluding the impact of the additional
13th operating week in the 2008 fourth quarter, SG&A expense
declined by approximately $6.1
million. This decrease reflects reductions in
marketing expense (due principally to timing issues but also
improved targeting), and studio employment costs (due to scheduling
and selected operating hour reductions) as well as the elimination
of duplicative costs in connection with the PMPS integration.
These decreases were offset in part by increases in corporate
bonuses.
Depreciation and amortization expense was $4.8 million in the fourth quarter of 2009,
compared with $7.8 million in the
fourth quarter of 2008. Depreciation expense decreased as a
result of the full depreciation of certain assets acquired in
connection with the 2005 digital conversion of SPS and 2007
acquisition of PCA as well as the write-off of film equipment no
longer required after the digital conversion in Mexico.
In the fourth quarter of 2009, the Company recognized a
$0.5 million net credit in other
charges and impairments, compared with an $8.6 million charge recognized in the fourth
quarter of 2008. The current-year net credit primarily
relates to the gain on sale of the Connecticut facility. The prior-year
charges were primarily associated with fees incurred in connection
with the settlement of the previous Sears license agreement,
certain PMPS integration charges, including severance and lab
closure costs and impairment, and litigation costs.
Fiscal 2009 Results
For the 52-week fiscal year ended February 6, 2010, the Company reported that net
sales decreased 9%, to $422.4 million
from the $462.5 million reported in
the 53-week fiscal year 2008. Excluding the negative impacts
of store closures ($8.9 million), the
53rd week in the prior year ($7.0
million), net revenue recognition change ($4.1 million), revenue deferral related to
positive response to the Company's loyalty programs ($4.0 million), foreign currency translation
($1.9 million) and other net impacts
($1.1 million), comparable same-store
sales decreased approximately 3%.
The Company also reported net income of $13.8 million, or $1.97 per diluted share, for fiscal 2009,
compared with a net loss of ($7.7
million), or ($1.18) per
diluted share, reported for fiscal 2008. Fiscal 2009 diluted
EPS reflects other charges and impairments totaling approximately
$0.29 per diluted share after-tax
while fiscal 2008 diluted EPS reflects other charges and
impairments of approximately $1.29
per diluted share after-tax. Fiscal 2009 Adjusted EBITDA
increased to $53.6 million versus
$44.2 million in the prior year.
Net sales from the Company's PMPS brand, on a comparable
same-store basis, excluding impacts of store closures, net revenue
recognition change, the 53rd week in the prior year, foreign
currency translation and other items, totaling ($19.1 million), increased 9% in fiscal 2009 to
$222.8 million from $204.1 million in fiscal 2008. The improved
PMPS sales performance for fiscal 2009 was the result of an
approximate 24% increase in average sale per customer sitting,
reflecting customers' positive response to the offerings made
possible by the digital conversion as well as new sales and
performance management processes, offset in part by an approximate
12% decline in the number of sittings.
During fiscal 2009, net sales from the Company's SPS brand, on a
comparable same-store basis, excluding impacts of the 53rd week in
the prior year, loyalty program revenue deferral, store closures
and other items, totaling ($7.9
million), were $198.8 million,
a decrease of 14% from $231.2 million
in fiscal 2008. SPS sales performance for fiscal 2009
was the result of a decline of approximately 15% in the number of
sittings, offset slightly by an increase of 2% in average sale per
customer sitting.
Cost of sales, excluding depreciation and amortization expense,
declined to $30.6 million in fiscal
2009 from $43.3 million in fiscal
2008. The decrease principally resulted from lower
production levels, improved productivity due to lab
consolidations, elimination of film and related shipping costs
stemming from the PMPS digital conversion, savings from in-house
production of greeting cards, reduced on-site printing costs and
decreased overhead costs resulting from the integration of the PMPS
operations.
SG&A expense fell to $339.1
million in fiscal 2009, compared with $377.3 million in fiscal 2008. The decrease
in SG&A expense primarily relates to lower studio employment
costs due to scheduling improvements and selected operating hour
reductions; the impact of the 53rd week in the prior year; fiscal
2008 nonrecurring costs associated with the PMPS digital
conversion; elimination of duplicative costs in connection with the
PMPS integration; reduced employee insurance costs due to plan
changes and lower participation and claims levels; reduced workers'
compensation expense due to improved claims management; reduced
marketing expense due to reduced direct mail expense and
improvements in studio marketing and acquisition programs; and
other cost reductions attributable to cost-control initiatives,
operating efficiencies and lower sales levels. These
decreases were offset in part by increases in incentive pay in
connection with new studio and field initiatives and corporate
bonuses.
Depreciation and amortization expense was $22.7 million in fiscal 2009, down from
$29.4 million in fiscal 2008.
Depreciation expense decreased due to: the full depreciation
of certain assets acquired in connection with both the 2005 digital
conversion of SPS and the 2007 acquisition of PCA; the closure of
certain facilities in fiscal 2008 and early fiscal 2009; and an
adjustment made in the prior year to write-off Mexico film equipment no longer required after
the digital conversion. These decreases were offset in part
by an increase as a result of the digital equipment purchased for
the PMPS digital conversion throughout fiscal 2008.
In fiscal 2009, the Company recognized a $3.3 million charge in other charges and
impairments, compared with a $13.6
million charge recognized in fiscal 2008. The
current-year net charges primarily relate to certain PMPS
integration charges, including severance and lab closure costs and
impairment, proxy contest costs and litigation costs. The
prior-year charges were primarily associated with fees incurred in
relation to the settlement of the previous Sears license agreement,
certain PMPS integration charges, including severance and lab
closure costs and impairment, and litigation costs.
Capital Structure
Subsequent to the 2009 fiscal year end, the Company made
required debt payments of $5.7
million. Additionally, as a result of the improving
financial strength of the Company, the Company elected to make a
voluntary debt prepayment of $5.0
million. As of April 19,
2010, the Company has $66.9
million of total debt outstanding and $20.7 million of cash and equivalents.
New Agreement With Toys "R" Us and Acquisition of Certain
Kiddie Kandids Assets
CPI entered into an amended license agreement with Toys "R" Us –
Delaware, Inc. ("TRU") to operate
portrait studios in its Babies "R" Us stores. CPI plans to
open Kiddie Kandids portrait studios in 134 Babies "R" Us and in
selected mall locations over the next few months. CPI's
agreement with TRU provides for an initial term through
January 31, 2016 and also accords CPI
significant operating flexibility and collaborative marketing
opportunities. The agreement also provides for the opening of
additional locations over the next two years.
CPI has also completed the acquisition of certain of the assets
of Kiddie Kandids, LLC out of bankruptcy for $2.6 million. Kiddie Kandids, LLC ceased
operations and filed for bankruptcy under Chapter 7 on January 12, 2010. In the twelve months
ending December 26, 2009, Kiddie
Kandids, LLC generated approximately $60.0
million in sales operating portrait studios in 134 Babies
"R" Us stores and 50 mall-based locations.
"We are excited to embark on our new relationship with Toys "R"
Us," said Renato Cataldo, president
and chief executive officer. "The Kiddie Kandids studios
leverage very well our digital platform and operating capabilities,
and Babies "R" Us is an ideal venue for reaching more families with
our portrait photography services. We have already made
significant preparations for the integration and expect a smooth
and expeditious launch of the studios."
As a part of the asset acquisition, CPI purchased the Kiddie
Kandids trade name, customer lists, studio and lab equipment,
inventory and the former corporate building. The Company
plans to sell certain of the acquired equipment and inventory as
well as the corporate building during the current fiscal year.
Looking Ahead
The Company's preliminary net sales for the first ten weeks of
the first quarter of fiscal 2010, on a comparable same-store
point-of-sale basis, excluding the impacts of foreign currency
translation, declined 2% compared to the corresponding period in
the prior year. PMPS and SPS net sales for the first ten
weeks of the first quarter were +4% and –10%, respectively.
Conference Call/Webcast Information
The Company will host a conference call and audio webcast on
Tuesday, April 20, 2010, at
10:00 a.m. Central time to discuss
the financial results and provide a Company update. To
participate on the call, please dial 800-510-9661 or 617-614-3452
and reference passcode 57891006 at least five minutes before start
time.
The webcast can be accessed on the Company's own site at
http://www.cpicorp.com as well as http://www.earnings.com. To
listen to a live broadcast, please go to these websites at least 15
minutes prior to the scheduled start time in order to register,
download, and install any necessary audio software. A replay
will be available on the above websites as well as by dialing
888-286-8010 or 617-801-6888 and providing passcode 34182649.
The replay will be available through May 4 by phone and for 30 days on the Internet.
CPI Corp. uses the Investor Relations page of its website at
http://www.cpicorp.com to make information available to its
investors and the public. You can sign up to receive e-mail
alerts whenever the Company posts new information to the
website.
About CPI Corp.
For more than 60 years, CPI Corp. (NYSE: CPY) has been dedicated
to helping customers conveniently create cherished photography
portrait keepsakes that capture a lifetime of memories.
Headquartered in St. Louis,
Missouri, CPI Corp. provides portrait photography services
at approximately 3,000 locations in North
America, principally in Sears and Walmart stores.
CPI's conversion to a fully digital format allows its studios
to offer unique posing options, creative photography selections, a
wide variety of sizes and an unparalleled assortment of
enhancements to customize each portrait – all for an affordable
price.
Forward-Looking Statements
The statements contained in this press release that are not
historical facts are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, and
involve risks and uncertainties. The Company identifies
forward-looking statements by using words such as "preliminary,"
"plan," "expect," "looking ahead," "anticipate," "estimate,"
"believe," "should," "intend" and other similar expressions.
Management wishes to caution the reader that these
forward-looking statements, such as the Company's outlook for
portrait studios, net income, future cash requirements, cost
savings, compliance with debt covenants, valuation allowances,
reserves for charges and impairments and capital expenditures, are
only predictions or expectations; actual events or results may
differ materially as a result of risks facing the Company.
Such risks include, but are not limited to: the Company's
dependence on Sears, Walmart and Toys "R" Us, the approval of the
Company's business practices and operations by Sears, Walmart and
Toys "R" Us, the termination, breach, limitation or increase of the
Company's expenses by Sears and Toys "R" Us under the license
agreements, or Walmart under the lease and license agreements,
customer demand for the Company's products and services, the
economic recession and resulting decrease in consumer spending,
manufacturing interruptions, dependence on certain suppliers,
competition, dependence on key personnel, fluctuations in operating
results, a significant increase in piracy of the Company's
photographs, widespread equipment failure, compliance with debt
covenants, high level of indebtedness, implementation of marketing
and operating strategies, outcome of litigation and other claims,
impact of declines in global equity markets to pension plan and
impact of foreign currency translation. The risks described
above do not include events that the Company does not currently
anticipate or that it currently deems immaterial, which may also
affect its results of operations and financial condition. The
Company undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
CPI
CORP.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(In
thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
Weeks
|
Vs
|
13
Weeks
|
|
52
Weeks
|
Vs
|
53
Weeks
|
|
|
|
|
|
|
|
|
|
|
|
February
6, 2010
|
|
February
7, 2009
|
|
February
6, 2010
|
|
February
7, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$140,241
|
|
$153,929
|
|
$422,371
|
|
$462,548
|
|
|
|
|
|
|
|
|
|
|
Cost and
expenses:
|
|
|
|
|
|
|
|
|
Cost
of sales (exclusive of depreciation and
|
|
|
|
|
|
|
|
|
amortization shown below)
|
8,983
|
|
11,884
|
|
30,626
|
|
43,280
|
|
Selling,
general and administrative expenses
|
93,658
|
|
107,534
|
|
339,138
|
|
377,310
|
|
Depreciation
and amortization
|
4,827
|
|
7,758
|
|
22,740
|
|
29,432
|
|
Other
charges and impairments
|
(458)
|
|
8,609
|
|
3,294
|
|
13,557
|
|
|
107,010
|
|
135,785
|
|
395,798
|
|
463,579
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
33,231
|
|
18,144
|
|
26,573
|
|
(1,031)
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
1,431
|
|
2,393
|
|
7,392
|
|
9,147
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
86
|
|
52
|
|
456
|
|
620
|
|
|
|
|
|
|
|
|
|
|
Other
(expense) income, net
|
(297)
|
|
131
|
|
(44)
|
|
190
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations
|
|
|
|
|
|
|
|
|
before
income tax expense (benefit)
|
31,589
|
|
15,934
|
|
19,593
|
|
(9,368)
|
|
|
|
|
|
|
|
|
|
|
Income
tax expense (benefit)
|
9,890
|
|
6,093
|
|
5,796
|
|
(2,644)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) from continuing operations
|
21,699
|
|
9,841
|
|
13,797
|
|
(6,724)
|
|
|
|
|
|
|
|
|
|
|
Net loss
from discontinued operations,
|
|
|
|
|
|
|
|
|
net of income tax benefit
|
-
|
|
(327)
|
|
-
|
|
(961)
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
$21,699
|
|
$9,514
|
|
$13,797
|
|
($7,685)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) per common share - diluted
|
|
|
|
|
|
|
|
|
From continuing operations
|
$3.07
|
|
$1.47
|
|
$1.97
|
|
($1.03)
|
|
From discontinued operations
|
-
|
|
(0.05)
|
|
-
|
|
(0.15)
|
|
Net income (loss) - diluted
|
$3.07
|
|
$1.42
|
|
$1.97
|
|
($1.18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) per common share - basic
|
|
|
|
|
|
|
|
|
From continuing operations
|
$3.10
|
|
$1.48
|
|
$1.97
|
|
($1.03)
|
|
From discontinued operations
|
-
|
|
(0.05)
|
|
-
|
|
(0.15)
|
|
Net income (loss) - basic
|
$3.10
|
|
$1.43
|
|
$1.97
|
|
($1.18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common and
|
|
|
|
|
|
|
|
|
common
equivalent shares outstanding:
|
|
|
|
|
|
|
|
|
Diluted
|
7,068
|
|
6,682
|
|
7,020
|
|
6,510
|
|
|
|
|
|
|
|
|
|
|
Basic
|
7,008
|
|
6,641
|
|
6,993
|
|
6,510
|
|
|
|
|
|
|
|
|
|
CPI
CORP.
|
|
ADDITIONAL
CONSOLIDATED OPERATING INFORMATION
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
Weeks
|
Vs.
|
13
Weeks
|
|
52
Weeks
|
Vs.
|
53
Weeks
|
|
|
|
|
|
|
|
|
|
|
|
February
6, 2010
|
|
February
7, 2009
|
|
February
6, 2010
|
|
February
7, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$726
|
|
$4,876
|
|
$5,234
|
|
$36,074
|
|
|
|
|
|
|
|
|
|
|
EBITDA
is calculated as follows:
|
|
|
|
|
|
|
|
|
Net
income (loss) from continuing operations
|
$21,699
|
|
$9,841
|
|
$13,797
|
|
($6,724)
|
|
Income
tax expense (benefit)
|
9,890
|
|
6,093
|
|
5,796
|
|
(2,644)
|
|
Interest
expense
|
1,431
|
|
2,393
|
|
7,392
|
|
9,147
|
|
Depreciation
and amortization
|
4,827
|
|
7,758
|
|
22,740
|
|
29,432
|
|
Other
non-cash charges
|
(41)
|
|
1,540
|
|
1,165
|
|
2,176
|
|
|
|
|
|
|
|
|
|
|
EBITDA
(1) & (5)
|
$37,806
|
|
$27,625
|
|
$50,890
|
|
$31,387
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA (2)
|
$37,678
|
|
$35,494
|
|
$53,630
|
|
$44,205
|
|
|
|
|
|
|
|
|
|
|
EBITDA
margin (3)
|
26.96%
|
|
17.95%
|
|
12.05%
|
|
6.79%
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA margin (4)
|
26.87%
|
|
23.06%
|
|
12.70%
|
|
9.56%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
EBITDA represents net income from continuing operations before
interest expense, income taxes, depreciation and amortization and
other non-cash charges. EBITDA is included because it is one
liquidity measure used by certain investors to determine a
company's ability to service its indebtedness. EBITDA is
unaffected by the debt and equity structure of the company. EBITDA
does not represent cash flow from operations as defined by GAAP, is
not necessarily indicative of cash available to fund all cash flow
needs and should not be considered an alternative to net income
under GAAP for purposes of evaluating the Company's results of
operations. EBITDA is not necessarily comparable with
similarly-titled measures for other companies.
|
|
(2)
Adjusted EBITDA is calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$37,806
|
|
$27,625
|
|
$50,890
|
|
$31,387
|
|
EBITDA adjustments:
|
|
|
|
|
|
|
|
|
Reserves for severance and related costs
|
6
|
|
1,100
|
|
970
|
|
2,046
|
|
Translation gain
|
344
|
|
-
|
|
61
|
|
-
|
|
Proxy contest fees
|
(33)
|
|
-
|
|
871
|
|
-
|
|
Other transition related costs - PCA
Acquisition
|
(554)
|
|
168
|
|
123
|
|
1,255
|
|
Sears contract settlement costs
|
-
|
|
5,860
|
|
-
|
|
7,527
|
|
Other
|
109
|
|
741
|
|
715
|
|
1,990
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$37,678
|
|
$35,494
|
|
$53,630
|
|
$44,205
|
|
|
|
|
|
|
|
|
|
|
(3)
EBITDA margin represents EBITDA, as defined in (1), stated as a
percentage of sales.
|
|
|
|
(4)
Adjusted EBITDA margin represents Adjusted EBITDA, as defined in
(2), stated as a percentage of sales.
|
|
|
|
(5) As
required by the SEC's Regulation G, a reconciliation of EBITDA, a
non-GAAP liquidity measure, with the most directly comparable GAAP
liquidity measure, cash flow from continuing operations
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
Weeks
|
Vs.
|
13
Weeks
|
|
52
Weeks
|
Vs.
|
53
Weeks
|
|
|
|
|
|
|
|
|
|
|
|
February
6, 2010
|
|
February
7, 2009
|
|
February
6, 2010
|
|
February
7, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$37,806
|
|
$27,625
|
|
$50,890
|
|
$31,387
|
|
Income
tax (expense) benefit
|
(9,890)
|
|
(6,093)
|
|
(5,796)
|
|
2,644
|
|
Interest
expense
|
(1,431)
|
|
(2,393)
|
|
(7,392)
|
|
(9,147)
|
|
Adjustments
for items not requiring cash:
|
|
|
|
|
|
|
|
|
Deferred income taxes
|
10,646
|
|
7,203
|
|
6,195
|
|
(2,550)
|
|
Deferred revenues and related costs
|
(7,154)
|
|
(7,441)
|
|
(1,076)
|
|
(7,720)
|
|
Other, net
|
(1,545)
|
|
(110)
|
|
319
|
|
2,561
|
|
Decrease
(increase) in current assets
|
13,260
|
|
13,957
|
|
1,724
|
|
8,733
|
|
Increase
(decrease) in current liabilities
|
(9,651)
|
|
(6,698)
|
|
(12,583)
|
|
(12,537)
|
|
Increase
(decrease) in current income taxes
|
(894)
|
|
(268)
|
|
(992)
|
|
(708)
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from continuing operations
|
$31,147
|
|
$25,782
|
|
$31,289
|
|
$12,663
|
|
|
|
|
|
|
|
|
|
CPI
CORP.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
FEBRUARY
6, 2010 AND FEBRUARY 7, 2009
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February
6, 2010
|
|
February
7, 2009
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash equivalents
|
$18,913
|
|
$23,665
|
|
Other current assets
|
34,642
|
|
37,815
|
|
Net
property and equipment
|
34,169
|
|
50,887
|
|
Intangible
assets
|
60,380
|
|
61,665
|
|
Other
assets
|
18,487
|
|
18,823
|
|
|
|
|
|
|
Total assets
|
$166,591
|
|
$192,855
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and stockholders' equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
$62,643
|
|
$55,010
|
|
Long-term
debt obligations
|
57,855
|
|
104,578
|
|
Other
liabilities
|
35,905
|
|
32,432
|
|
Stockholders'
equity
|
10,188
|
|
835
|
|
|
|
|
|
|
Total liabilities and stockholders'
|
|
|
|
|
equity
|
$166,591
|
|
$192,855
|
|
|
|
|
|
SOURCE CPI Corp.