UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
450 Fifth Street NW
Washington, D.C. 29549
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): | May 18, 2004 | |
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THE CATO CORPORATION
| Delaware | 1-31340 | 56-0484485 | ||
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| (State or Other Jurisdiction | (Commission | (I.R.S. Employer | ||
| of Incorporation) | File Number) | Identification Number) |
| 8100 Denmark Road, Charlotte, North Carolina | 28273-5975 | |
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| (Address of Principal Executive Offices) | (Zip Code) |
(704) 554-8510
Not Applicable
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THE CATO CORPORATION
Item 7. Financial Statements and Exhibits.
| (c) Exhibits |
| Exhibit 99.1 – Press Released issued May 18, 2004 |
Item 9. Regulation FD Disclosure; and
Item 12. Results of Operations and Financial Condition.
On May 18, 2004, The Cato Corporation issued a press release regarding its financial results for the first quarter ending May 1, 2004. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated by reference herein. The information being furnished in this report (including Exhibit 99.1) is not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any filing under the Securities Act of 1933.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE CATO CORPORATION | ||
| May 19, 2004 | /s/ John P. Derham Cato | |
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| Date | John P. Derham Cato | |
| Chairman, President and | ||
| Chief Executive Officer | ||
| May 19, 2004 | /s/ Michael O. Moore | |
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| Date | Michael O. Moore | |
| Executive Vice President | ||
| Chief Financial Officer and Secretary |
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Exhibit Index
| Exhibit | Exhibit No. | |||
| Press Release issued May 18, 2004 | 99.1 | |||
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Exhibit 99.1
| NEWS RELEASE | ||
| FOR IMMEDIATE RELEASE | ||
| CEO Approval ____________ | ||
| For Further Information Contact: | ||
| Michael O. Moore | ||
| Executive Vice President | ||
| Chief Financial Officer | ||
| 704-551-7201 |
CATO REPORTS 1Q RESULTS IN LINE WITH PRIOR ESTIMATE
Provides 2Q Guidance
Charlotte, N.C. (May 18, 2004) – The Cato Corporation (NYSE: CTR) today reported net income of $16.8 million or $.81 per diluted share for the first quarter ended May 1, 2004, compared to net income of $17.5 million or $.68 per diluted share for the first quarter ended May 3, 2003. Net income decreased 4% and earnings per diluted share increased 19% from first quarter 2003. Sales for the first quarter were $205.2 million, an increase of 4% over sales of $197.3 million for the first quarter last year. The Company’s first quarter comparable store sales decreased 2%.
“Our first quarter results were in line with our expectations,” said John Cato, Chairman, President, and Chief Executive Officer. “We expect second quarter earnings per diluted share to be in the range of $.33 to $.38 versus $.30 last year. This estimate is based on comparable store sales in the range of down 2% to up 2%.”
During the first quarter, the Company opened 16 stores and relocated 10 stores. As of May 1, 2004, the Company operated 1,118 stores in 28 states, compared to 1,035 stores in 26 states as of May 3, 2003.
8100 Denmark Road
P.O. Box 34216
Charlotte, NC 28234
(704) 554-8510
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The Cato Corporation is a leading specialty retailer of value-priced women’s fashion apparel operating two divisions, “Cato” and “It’s Fashion!”. The Company primarily offers exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices, everyday. Additional information on The Cato Corporation is available at www.catocorp.com.
Statements in this press release not historical in nature including, without limitation, statements regarding the Company’s expected financial results for the second quarter are considered “forward-looking” within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations that are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements. Such factors include, but are not limited to, the following: general economic conditions; competitive factors and pricing pressures; the Company’s ability to predict fashion trends; consumer apparel buying patterns; adverse weather conditions and inventory risks due to shifts in market demand. The Company does not undertake to publicly update or revise the forward-looking statements even if experience or future changes make it clear that the projected results expressed or implied therein will not be realized. The Company is not responsible for any changes made to this press release by wire or Internet services.
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8100 Denmark Road
P.O. Box 34216
Charlotte, NC 28234
(704) 554-8510
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE PERIODS ENDED MAY 1, 2004 AND MAY 3, 2003
(Dollars in thousands, except per share data)
| Quarter Ended | ||||||||||||||||||
| May 1, | % | May 3, | % | |||||||||||||||
| 2004 | Sales | 2003 | Sales | |||||||||||||||
REVENUES |
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Retail sales |
$ | 205,193 | 100.0 | % | $ | 197,304 | 100.0 | % | ||||||||||
Other income (principally finance,
late fees and layaway charges) |
4,008 | 2.0 | % | 3,906 | 2.0 | % | ||||||||||||
Total revenues |
209,201 | 102.0 | % | 201,210 | 102.0 | % | ||||||||||||
GROSS MARGIN (Memo) |
72,849 | 35.5 | % | 70,306 | 35.6 | % | ||||||||||||
COSTS AND EXPENSES, NET |
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Cost of goods sold |
132,344 | 64.5 | % | 126,998 | 64.4 | % | ||||||||||||
Selling, general and administrative |
45,823 | 22.3 | % | 43,444 | 22.0 | % | ||||||||||||
Depreciation |
4,979 | 2.4 | % | 4,451 | 2.3 | % | ||||||||||||
Interest and other income, net |
(344 | ) | -0.1 | % | (1,127 | ) | -0.6 | % | ||||||||||
Cost and expenses, net |
182,802 | 89.1 | % | 173,766 | 88.1 | % | ||||||||||||
Income Before Income Taxes |
26,399 | 12.9 | % | 27,444 | 13.9 | % | ||||||||||||
Income Tax Expense |
9,583 | 4.7 | % | 9,962 | 5.0 | % | ||||||||||||
Net Income |
$ | 16,816 | 8.2 | % | $ | 17,482 | 8.9 | % | ||||||||||
Basic Earnings Per Share |
$ | 0.82 | $ | 0.69 | ||||||||||||||
Basic Weighted Average Shares |
20,499,605 | 25,439,385 | ||||||||||||||||
Diluted Earnings Per Share |
$ | 0.81 | $ | 0.68 | ||||||||||||||
Diluted Weighted Average Shares |
20,845,867 | 25,796,506 | ||||||||||||||||
THE CATO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
| May 1, | May 3, | January 31, | ||||||||||||
| 2004 | 2003 | 2004 | ||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
ASSETS |
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Current Assets |
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Cash and cash equivalents |
$ | 23,167 | $ | 43,986 | $ | 23,857 | ||||||||
Short-term investments |
67,155 | 75,069 | 47,545 | |||||||||||
Accounts receivable — net |
51,427 | 53,340 | 52,714 | |||||||||||
Merchandise inventories |
99,855 | 102,306 | 97,292 | |||||||||||
Other current assets |
6,478 | 7,113 | 5,992 | |||||||||||
Total Current Assets |
248,082 | 281,814 | 227,400 | |||||||||||
Property and Equipment — net |
116,400 | 113,156 | 114,367 | |||||||||||
Other Assets |
10,189 | 9,604 | 9,806 | |||||||||||
TOTAL |
$ | 374,671 | $ | 404,574 | $ | 351,573 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities |
$ | 124,408 | $ | 107,663 | $ | 114,492 | ||||||||
Noncurrent Liabilities |
21,786 | 14,982 | 21,470 | |||||||||||
Long Term Debt |
20,000 | 0 | 21,500 | |||||||||||
Stockholders’ Equity |
208,477 | 281,929 | 194,111 | |||||||||||
TOTAL |
$ | 374,671 | $ | 404,574 | $ | 351,573 | ||||||||