Exhibit 99.1
Linens 'N Things Announces First Quarter 2003 Results
CLIFTON, N.J.--(BUSINESS WIRE)--April 23, 2003--Linens 'n Things,
Inc. (NYSE: LIN), one of the leading, national large format retailers
of home textiles, housewares and home accessories, today announced net
income for the first quarter ended April 5, 2003 of $2.1 million or
$0.05 per share on a fully diluted basis, compared with $5.1 million
or $0.12 per share for the same period last year. Net income for the
first quarter ended April 5, 2003 includes the impact of a charge of
$0.03 per share on a fully diluted basis in connection with the
departure of the company's president earlier this year. Total net
sales increased 5.2% to $480.5 million for the first quarter ended
April 5, 2003, up from $456.9 million for the same period last year.
Comparable store net sales for the first quarter of 2003 declined
3.2%.
"Overall, sales for the first quarter of 2003, which covers the
period January 5, 2003 through April 5, 2003, were difficult as a
result of a series of external factors. Inclement weather
significantly impacted sales in February, particularly during
President's Day weekend, while the economy, weak consumer confidence
and the official start of war in Iraq have continued to depress
consumer traffic. In addition, the timing of the Easter selling season
will occur in the second quarter of 2003 compared to the first quarter
of 2002. Although the retail environment remains challenging, we are
committed to those initiatives that are aimed at improving our guest
shopping experience. These initiatives are on track and remain a
priority for 2003," commented Norman Axelrod, chairman and chief
executive officer.
During the first quarter, the Company opened sixteen new stores,
and closed seven stores, increasing its total square footage to 13.9
million as compared with opening seven stores and closing two stores
during the same period last year. The Company currently expects to
open approximately 55 new stores in the United States and Canada in
2003, further expanding its presence as a leading retailer of home
furnishings. For 2003, capital expenditures are expected to be
approximately $80 million to $85 million.
2003 Business Outlook
For the second quarter of 2003, sales are targeted to grow between
13% and 15% and comparable sales are targeted to be flat to slightly
positive. Assuming sales at these targeted levels, the Company is
comfortable with the range of estimates of approximately $0.10 to
$0.14 for diluted earnings per share for the second quarter.
This outlook is based on current expectations and assumptions and
includes "forward looking statements" within the meaning of Section
27A of the Securities Act and Section 21E of the Securities Exchange
Act. The Company can give no assurances that such expectations and
assumptions will prove correct. The Company does not intend to update
such outlook other than in connection with regularly scheduled
earnings releases.
Linens 'n Things, with 2002 sales of $2,184.7 million, is one of
the leading, national large format retailers of home textiles,
housewares and home accessories. As of April 5, 2003, the Company was
operating 400 stores in 45 states and four provinces across the United
States and Canada. More information about Linens 'n Things can be
found online at www.lnt.com.
The foregoing contains forward-looking statements within the
meaning of The Private Securities Litigation Reform Act of 1995. The
statements are made a number of times and may be identified by such
forward-looking terminology as "expect," "believe," "may," "will,"
"could", "intend," "plan," "target" and terms or variations of such
terms. All of our information and statements regarding our outlook for
the future constitutes forward-looking statements. All our
forward-looking statements are based on our current expectations,
assumptions, estimates and projections about our Company and involve
certain significant risks and uncertainties, including levels of
sales, store traffic, acceptance of product offerings and fashions,
the success of our new business concepts and seasonal concepts, the
success of our new store openings, competitive pressures from other
home furnishings retailers, the success of the Canadian expansion,
availability of suitable future store locations, schedule of store
expansion and of planned closings, the impact of the bankruptcies and
consolidations in our industry, unusual weather patterns, the impact
on consumer spending as a result of the slower consumer economy, a
highly promotional retail environment, any significant variations
between actual amounts and the amounts estimated for those matters
identified as our critical accounting estimates as well as other
significant accounting estimates made in the preparation of our
financial statements, the impact of the hostilities in the Middle East
and the possibility of hostilities in other geographic areas as well
as other geopolitical concerns, including the potential impact of SARS
health concerns particularly on manufacturing and production in Asia.
Actual results may differ materially from such forward-looking
statements. These and other important risk factors are included in the
"Risk Factors" section of the Company's Registration Statement on Form
S-3 as filed with the Securities and Exchange Commission on June 18,
2002, and may be contained in subsequent reports filed with the
Securities and Exchange Commission. You are urged to consider all such
factors. In light of the uncertainty inherent in such forward-looking
statements, you should not consider their inclusion to be a
representation that such forward-looking matters will be achieved. The
Company assumes no obligation for updating any such forward-looking
statements to reflect actual results, changes in assumptions or
changes in other factors affecting such forward-looking statements.
LINENS 'N THINGS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
First Quarter Ended
-------------------------------------
April 05, 2003 March 30, 2002
-------------------------------------
(unaudited)
Net sales $480,471 $456,911
Cost of sales, including buying
and warehousing costs 282,806 275,712
--------- ---------
Gross profit 197,665 181,199
Selling, general and
administrative expenses 194,225 172,204
--------- ---------
Operating profit 3,440 8,995
Interest expense, net 76 675
--------- ---------
Income before provision for
income taxes 3,364 8,320
Provision for income taxes 1,286 3,180
--------- ---------
Net income $2,078 $5,140
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Per share of common stock:
Basic
- ------
Net income per share $0.05 $0.13
Weighted average shares
outstanding 40,098 40,645
Diluted
- --------
Net income per share $0.05 $0.12
Weighted average shares
outstanding 44,524 41,703
LINENS 'N THINGS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
April 05, 2003 March 30, 2002
-------------- --------------
Assets (unaudited)
Current assets:
Cash and cash equivalents $58,445 $10,064
Inventories 685,911 549,700
Other current assets, net 64,938 67,865
-------- ---------
Total current assets 809,294 627,629
Property and equipment, net 362,332 327,813
Other non-current assets, net 28,821 29,347
-------- ---------
Total assets $1,200,447 $984,789
========== ========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $306,996 $237,765
Accrued expenses and other current
liabilities 135,375 124,959
Short-term borrowings 2,244 47,094
-------- ---------
Total current liabilities 444,615 409,818
Other long-term liabilities 84,237 70,538
-------- ---------
Total liabilities 528,852 480,356
Shareholders' equity 671,595 504,433
-------- ---------
Total liabilities and
shareholders' equity $1,200,447 $984,789
========== ========
LINENS 'N THINGS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
First Quarter Ended
---------------------------------
April 5, 2003 March 30, 2002
---------------------------------
(unaudited)
Cash Flows From Operating
Activities
Net income $2,078 $5,140
Depreciation and amortization 12,842 10,453
Change in working capital (18,135) (13,574)
-------- --------
Net cash (used in) provided
by operating activities (3,215) 2,019
-------- --------
Cash Flows From Investing Activities
Additions to property and equipment (25,666) (25,742)
-------- --------
Cash Flows From Financing Activities
Proceeds from common stock issued
under stock incentive plans 282 970
Increase in short-term borrowings 303 17,425
Purchase of treasury stock (16) (43)
-------- --------
Net cash provided by financing
activities 569 18,352
-------- --------
Effect of exchange rate changes
on cash and cash equivalents 152 (2)
Net decrease in cash and cash
equivalents (28,160) (5,373)
Cash and cash equivalents at
beginning of period 86,605 15,437
-------- --------
Cash and cash equivalents at end
of period $58,445 $10,064
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CONTACT: Linens 'n Things, Inc., Clifton
William T. Giles
Chief Financial Officer
(973) 815-2929 or
Visit our Web Site at www.lnt.com