Exhibit 99.1
SAKS INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except for Per Share Data)
(UNAUDITED) Three Months Ended | ||||||||||||||
April 29, 2006 | April 30, 2005 | |||||||||||||
Net sales | $ | 1,039,753 | 100.0 | % | $ | 1,550,059 | 100.0 | % | ||||||
Cost of sales | 637,540 | 61.3 | % | 946,662 | 61.1 | % | ||||||||
Gross margin | 402,213 | 38.7 | % | 603,397 | 38.9 | % | ||||||||
Selling, general and administrative expenses | 275,134 | 26.5 | % | 402,157 | 25.9 | % | ||||||||
Other operating expenses | 106,551 | 10.2 | % | 152,194 | 9.8 | % | ||||||||
Store pre-opening costs | 286 | 0.0 | % | 260 | 0.0 | % | ||||||||
Impairments and dispositions | (200,986 | ) | -19.3 | % | (3,249 | ) | -0.2 | % | ||||||
Operating income | 221,228 | 21.3 | % | 52,035 | 3.4 | % | ||||||||
Other income (expense): | ||||||||||||||
Interest expense | (14,115 | ) | -1.4 | % | (28,210 | ) | -1.8 | % | ||||||
Other income, net | 8,819 | 0.8 | % | 2,258 | 0.1 | % | ||||||||
Income before provision (benefit) for income taxes | 215,932 | 20.8 | % | 26,083 | 1.7 | % | ||||||||
Provision for income taxes | 138,034 | 13.3 | % | 9,912 | 0.6 | % | ||||||||
Net income | $ | 77,898 | 7.5 | % | $ | 16,171 | 1.0 | % | ||||||
Basic earnings per common share: | $ | 0.58 | $ | 0.12 | ||||||||||
Diluted earnings per common share: | $ | 0.57 | $ | 0.11 | ||||||||||
Weighted average common shares: | ||||||||||||||
Basic | 134,260 | 138,326 | ||||||||||||
Diluted | 136,097 | 143,739 |
SAKS INCORPORATED
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
(UNAUDITED) | ||||||
April 29, 2006 | April 30, 2005 | |||||
RESTATED | ||||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 1,152,216 | $ | 287,754 | ||
Merchandise inventories | 853,929 | 1,380,014 | ||||
Other current assets | 177,817 | 154,378 | ||||
Deferred income taxes, net | 37,846 | 168,286 | ||||
Current assets - held for sale | — | 174,489 | ||||
Total current assets | 2,221,808 | 2,164,921 | ||||
Property and equipment, net | 1,317,551 | 1,759,338 | ||||
Property and equipment, net - held for sale | — | 266,310 | ||||
Goodwill and intangibles, net | 4,510 | 323,561 | ||||
Deferred income taxes, net | 136,238 | 175,936 | ||||
Other assets | 42,132 | 85,724 | ||||
Other assets - held for sale | — | — | ||||
TOTAL ASSETS | $ | 3,722,239 | $ | 4,775,790 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current liabilities | ||||||
Trade accounts payable | $ | 250,164 | $ | 413,750 | ||
Accrued expenses and other current liabilities | 449,211 | 521,745 | ||||
Dividend payable | 547,560 | 2,287 | ||||
Current portion of long-term debt | 7,576 | 7,383 | ||||
Current liabilities - held for sale | — | 48,155 | ||||
Total current liabilities | 1,254,511 | 993,320 | ||||
Long-term debt | 686,335 | 1,343,470 | ||||
Long-term debt - held for sale | — | — | ||||
Other long-term liabilities | 188,204 | 335,032 | ||||
Long-term liabilities - held for sale | — | 4,624 | ||||
Total shareholders’ equity | 1,593,189 | 2,099,344 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 3,722,239 | $ | 4,775,790 | ||
SAKS INCORPORATED
SEGMENT INFORMATION
(Dollars In Thousands)
(UNAUDITED) Three Months Ended | ||||||||
April 29, 2006 | April 30, 2005 | |||||||
Net Sales: | ||||||||
Saks Department Stores Group | $ | 367,451 | $ | 844,289 | ||||
Saks Fifth Avenue Enterprises | 672,302 | 705,770 | ||||||
$ | 1,039,753 | $ | 1,550,059 | |||||
Operating Income: | ||||||||
Saks Department Stores Group | $ | (1,816 | ) | $ | 20,148 | |||
Saks Fifth Avenue Enterprises | 39,693 | 40,830 | ||||||
Items not allocated | 183,351 | (8,943 | ) | |||||
$ | 221,228 | $ | 52,035 | |||||
Depreciation and Amortization: | ||||||||
Saks Department Stores Group | $ | 8,035 | $ | 31,887 | ||||
Saks Fifth Avenue Enterprises | 27,126 | 25,191 | ||||||
Other | 604 | 560 | ||||||
$ | 35,765 | $ | 57,638 |
SAKS INCORPORATED
SUMMARY OF CHARGES AND GAINS
(Dollars In Thousands)
(UNAUDITED) Three Months Ended | ||||||||
April 29, 2006 | April 30, 2005 | |||||||
Summary of (Charges) and Gains: | ||||||||
Impairments and Dispositions - In Normal Course | $ | (4,417 | ) | $ | — | |||
Bon-Ton Transaction: | ||||||||
Impairments and Dispositions | 205,443 | — | ||||||
SFAE Store Closings: | ||||||||
Impairments and Dispositions | (12 | ) | 3,150 | |||||
Gross Margin (markdowns) | — | 313 | ||||||
SG&A (principally severance) | 205 | (657 | ) | |||||
Other | (41 | ) | (492 | ) | ||||
Income Taxes: | ||||||||
Income Tax Effect of Above Items | (134,495 | ) | (879 | ) | ||||
Net, After-Tax Certain Gains and Charges | $ | 66,683 | $ | 1,435 | ||||
Cash/Non-Cash Summary of (Charges) and Gains: | ||||||||
Cash Gains and Charges | $ | 1,021,152 | $ | 12,848 | ||||
Non-Cash Gains and Charges | (819,974 | ) | (10,534 | ) | ||||
Income Tax Effect | (134,495 | ) | (879 | ) | ||||
Net, After-Tax Certain Gains and Charges | $ | 66,683 | $ | 1,435 | ||||