SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 1994
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from_______ to _________
Commission File Number 0-12994
Nordstrom Credit, Inc.
______________________________________________________
(Exact name of Registrant as specified in its charter)
Colorado 91-1181301
______________________________ ________________
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
13531 East Caley, Englewood, Colorado 80111
____________________________________________________
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: 303-397-4700
Indicate by check mark whether the Registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
____ ____
On June 1, 1994 Registrant had 10,000 shares of Common
stock ($.50 par value) outstanding; all such shares are owned
by Registrant's parent, Nordstrom, Inc.
The Registrant meets the conditions set forth in General
Instruction H(1)(a) and (b) of Form 10-Q and is therefore
filing this form with the reduced disclosure format.
page 1 of 7
NORDSTROM CREDIT, INC.
----------------------
INDEX
-----
Page
Number
------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Statements of Earnings
Three months ended April 30, 1994
and 1993 (Unaudited) 3
Balance Sheets
April 30, 1994 and 1993
and January 31, 1994 (Unaudited) 4
Statements of Cash Flows
Three months ended April 30, 1994
and 1993 (Unaudited) 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 6
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 7
page 2 of 7
NORDSTROM CREDIT, INC.
STATEMENTS OF EARNINGS
(dollars in thousands)
(unaudited)
Three Months
Ended April 30,
---------------
1994 1993
---- ----
Service charge income $22,726 $23,464
Expenses:
Interest, net 6,882 7,495
Service fees paid to
Nordstrom National
Credit Bank 5,262 5,889
General and
administrative 414 402
------- -------
Total expenses 12,558 13,786
------- -------
Earnings before
income taxes 10,168 9,678
Income taxes 3,660 3,445
------- -------
Net earnings $ 6,508 $ 6,233
======= =======
Ratio of earnings
available for fixed
charges to fixed charges 2.47 2.28
======= =======
These statements should be read in conjunction with the Notes
to Financial Statements contained herein and in the Nordstrom
Credit, Inc. Annual Report on Form 10-K for the year ended
January 31, 1994.
page 3 of 7
NORDSTROM CREDIT, INC.
BALANCE SHEETS
(in thousands)
(unaudited)
April 30, January 31, April 30,
1994 1994 1993
----------- ----------- -----------
ASSETS
- - ------
Cash and cash equivalents $ 5,256 $ 1,694 $ 687
Customer accounts receivable,
net of holdback allowance
of $23,494, $23,145 and
$23,595 513,935 564,495 518,087
Property, building and
equipment, net 5,900 5,987 6,095
Other assets 1,607 1,677 1,885
Other accounts receivable - 3,977 1,165
-------- -------- --------
$526,698 $577,830 $527,919
======== ======== ========
LIABILITIES AND INVESTMENT OF NORDSTROM, INC.
- - ---------------------------------------------
Notes payable to
Nordstrom, Inc. $ 41,000 $112,500 $ -
Commercial paper 27,146 15,337 77,842
Notes payable to banks 25,000 25,000 25,000
Accrued interest, taxes
and other 11,716 9,665 9,188
Long-term debt 265,600 265,600 280,600
-------- -------- --------
Total liabilities 370,462 428,102 392,630
Investment of
Nordstrom, Inc. 156,236 149,728 135,289
-------- -------- --------
$526,698 $577,830 $527,919
======== ======== ========
These statements should be read in conjunction with the Notes
to Financial Statements contained herein and in the Nordstrom
Credit, Inc. Annual Report on Form 10-K for the year ended
January 31, 1994.
page 4 of 7
NORDSTROM CREDIT, INC.
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months
Ended April 30,
---------------
1994 1993
---- ----
OPERATING ACTIVITIES:
Net earnings $ 6,508 $ 6,233
Adjustments to reconcile net earnings
to net cash provided by
operating activities:
Depreciation and amortization 157 157
Change in:
Customer accounts receivable, net 50,560 65,124
Other accounts receivable 3,977 2,543
Accrued interest, taxes and other 2,051 (781)
------- -------
Net cash provided by operating activities 63,253 73,276
------- -------
FINANCING ACTIVITIES:
Decrease in notes payable to
Nordstrom, Inc. (71,500) (112,500)
Increase in commercial paper 11,809 64,523
Principal payments on long-term debt - (25,000)
------- -------
Net cash used in financing activities (59,691) (72,977)
------- -------
Net increase in cash and cash equivalents 3,562 299
Cash and cash equivalents
at beginning of period 1,694 388
------- -------
Cash and cash equivalents at end of period $ 5,256 $ 687
======= =======
These statements should be read in conjunction with the Notes
to Financial Statements contained herein and in the Nordstrom
Credit, Inc. Annual Report on Form 10-K for the year ended
January 31, 1994.
page 5 of 7
NORDSTROM CREDIT, INC.
NOTES TO FINANCIAL STATEMENTS
(unaudited)
Note 1:
The balance sheets of Nordstrom Credit, Inc. as of April 30,
1994 and 1993, and the related statements of earnings and cash
flows for the periods then ended, have been prepared from the
accounts without audit.
The financial information is applicable to interim periods and
is not necessarily indicative of the results to be expected for the
year ending January 31, 1995.
It is not considered necessary to include detailed footnote
information as of April 30, 1994 and 1993. The financial
statements should be read in conjunction with the Notes to
Financial Statements contained in the Nordstrom Credit, Inc.
Annual Report on Form 10-K for the year ended January 31, 1994.
In the opinion of management, the financial information includes
all adjustments (consisting only of normal recurring adjustments)
necessary to present fairly the financial position of Nordstrom
Credit, Inc. as of April 30, 1994 and 1993, and the results of
its operations and cash flows for the periods then ended, in
accordance with generally accepted accounting principles applied
on a consistent basis.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Service charge income decreased compared to the first quarter of the
prior year due primarily to lower levels of accounts receivable
outstanding during the quarter.
Interest expense decreased when compared to the same period in
1993 due to lower levels of debt outstanding during the quarter.
Service fees paid to Nordstrom National Credit Bank (the "Bank")
decreased when compared to the same period in 1993 due primarily
to a decrease in the servicing fee rate from 1.82% to 1.59%,
effective November 1, 1993.
In May 1994, the Bank commenced its VISA card program. Receivables
generated through the use of the card will be purchased by the
Company without recourse, except for sales occurring at Nordstrom,
Inc. stores. This is expected to increase the external financing
needs of the Company. Service charges earned on these receivables
are expected to be sufficient to offset additional expenses generated
through this activity. All other operations of the Company will
remain substantially the same.
page 6 of 7
PART II - OTHER INFORMATION
---------------------------
Item 6. Exhibits and Reports on Form 8-K
No reports on Form 8-K were filed during the quarter for which
this report is filed.
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 thereunto duly authorized.
NORDSTROM CREDIT, INC.
(Registrant)
/s/ John A. Goesling
__________________________________________
John A. Goesling, Executive Vice President
and Treasurer
(Principal Financial and Accounting Officer)
Date: June 3, 1994
____________________
page 7 of 7