Same Store Sales up 3.3%; EPS $0.19;
Adjusted EPS $0.33, up 57.1%
Signet Jewelers Limited (“Signet”) (NYSE and LSE:SIG), the
world's largest retailer of diamond jewelry, today announced its
results for the 13 weeks ended October 31, 2015 (“third
quarter Fiscal 2016”).
“Signet delivered another quarter of continued growth,
highlighted by a same store sales increase of 3.3% and adjusted
earnings per share growth of 57.1%," commented Mark Light, Chief
Executive Officer of Signet Jewelers. "We are pleased to report
strong sales growth in line with our third quarter guidance. We
also delivered excellent earnings growth, although earnings were
affected by a modest margin impact due to a sales mix shift from
Jared to Kay."
Light added, "We are currently experiencing an encouraging start
to November particularly at Jared and Zales. The implementation of
store operations initiatives in the third quarter combined with
significant investment in our recently launched innovative
merchandising and marketing programs have positioned Signet for a
strong fourth quarter.
"The integration of Zale continues to go well, and we remain
confident we will deliver $30 million to $35 million in net
synergies this fiscal year. We remain committed to maintaining
profitable growth while balancing investment back into the business
with shareholder return.
“I want to thank all Signet team members for their contributions
to our results and for their hard work in preparing for fourth
quarter.”
Third Quarter Fiscal 2016 Diluted Earnings per Share (“EPS”)
Analysis:
Third quarter EPS was $0.19. Third quarter Adjusted EPS was
$0.33. Adjusted EPS can be reconciled to EPS as follows:
Adjusted EPS1 Purchase accounting
adjustments Transaction costs Earnings per share
$0.33 $(0.03) $(0.11) $0.19 1. Throughout this release,
Signet uses adjusted metrics which adjust for purchase accounting
and transaction costs in relation to the Zale acquisition. See
non-GAAP reconciliation tables.
Financial Guidance:
13 weeks ended January 30, 2016 ("Fourth quarter Fiscal
2016") Same store sales 3.5% to 5.0% EPS $3.30 to
$3.50 Adjusted EPS $3.40 to $3.60 Fiscal 2016 Effective tax
rate 28% to 29% Capital expenditures $260 million to $280 million
(reduced from $275 million to $325 million) Net selling square
footage growth 2% to 3% Net synergies $30 million to $35 million
Capital expenditures will be driven primarily by new Kay and
Jared stores, store remodels, and information technology directed
principally to the Zale division. The reduction from previous
guidance is due principally to timing around remodels, information
technology, and facilities.
Net selling square footage growth is expected to be driven
by the following projected store (and kiosk) changes:
Gross locations Net locations
Net square feet Sterling Jewelers division up 55 to 65 up 30 to 35
up 3% to 4% Zale division up 30 to 35 approximately flat
approximately flat UK Jewelry division up 5 to 10 slight increase
slight increase
Third quarter Fiscal 2016 Sales Highlights:
Total sales were $1,216.4 million, up $38.5 million or 3.3%,
compared to $1,177.9 million in the 13 weeks ended November 1, 2014
("third quarter Fiscal 2015"). Same store sales also increased 3.3%
compared to an increase of 4.2% in the third quarter Fiscal 2015
driven primarily by branded bridal sales across all store banners
as well as higher sales overall in the Kay Jewelers brand.
eCommerce sales in the third quarter were $50.5 million, up $5.7
million or 12.7% compared to $44.8 million in the third quarter
Fiscal 2015.
- Sterling Jewelers division sales
increases were driven by Kay [+7.1%] and partially offset by a same
store sales decline in Jared [-2.7%]. Branded bridal and select
diamond jewelry performed well across store banners. The average
transaction price increased 3.0% and the number of transactions
decreased 0.7%.
- Zale division sales increases were
driven by branded bridal collections and Piercing Pagoda. The
average transaction price increased 1.0% and the number of
transactions increased 1.0%. Piercing Pagoda's average transaction
price increased 11.6%, while the number of transactions remained
flat. Zale Jewelry's average transaction price decreased 1.9%,
while the number of transactions increased 2.9%.
- UK Jewelry division total sales
decreases were driven entirely by foreign currency exchange rates.
The increase in same store sales and total sales at constant
exchange rates was driven primarily by strong results in diamond
jewelry and watches. The average transaction price and number of
transactions for the division increased by 3.4% and 2.3%,
respectively.
Sales change from previous year Third quarter
Fiscal 2016
Samestoresales¹
Non-samestoresales, net²
Total salesat constantexchangerate³
Exchangetranslationimpact³
Totalsales
Total sales(in millions)
Kay 7.1 % 1.9 %
9.0 % — % 9.0 % $ 462.9 Jared (2.7 )% 4.9 % 2.2 % — % 2.2 % $ 232.5
Regional brands 0.3 % (7.1 )%
(6.8 )%
—
% (6.8 )% $ 38.1
Sterling Jewelers division
3.5 % 2.4 %
5.9 % — %
5.9 % $ 733.5 Zales Jewelers 2.3
% — % 2.3 % — % 2.3 % $ 220.5 Gordon’s Jewelers (11.0 )% (9.6 )%
(20.6 )% — % (20.6 )% $ 13.9 Zale US Jewelry 1.4 % (0.8 )% 0.6 % —
% 0.6 % $ 234.4 Peoples Jewellers 2.2 % 1.1 % 3.3 % (17.2 )% (13.9
)% $ 40.9 Mappins (1.6 )% (6.7 )% (8.3 )% (15.0 )% (23.3 )% $ 6.6
Zale Canada Jewelry 1.6 % (0.1 )% 1.5 % (16.8 )% (15.3 )% $ 47.5
Zale Jewelry 1.5 % (0.7 )% 0.8 % (3.3 )% (2.5 )% $ 281.9 Piercing
Pagoda 10.0 % 3.5 % 13.5 %
— % 13.5 % $ 48.0
Zale division
2.6 % (0.2 )%
2.4 % (2.9 )%
(0.5 )% $ 329.9 H.Samuel 2.0 %
(0.6 )% 1.4 % (5.8 )% (4.4 )% $ 73.5 Ernest Jones
6.3 % 2.3 % 8.6 % (6.2 )% 2.4 %
$ 75.9
UK Jewelry division
4.1 % 0.8 % 4.9
% (6.0 )% (1.1
)%
$
149.4 Other segment —
% 33.3 % 33.3 %
— % 33.3 %
$ 3.6 Signet 3.3
% 1.6 % 4.9 %
(1.6 )% 3.3 %
$ 1,216.4 Adjusted Signet3
$ 1,222.6 1. Based on stores opened for at
least 12 months. 2. Includes all sales from stores not open for 12
months. 3. Non-GAAP measure.
Third quarter Fiscal 2016 Financial Highlights:
Gross margin was $367.7 million or 30.2% of sales compared to
$345.9 million or 29.4% of sales in the third quarter Fiscal 2015.
In the third quarter Fiscal 2016, adjusted gross margin was $373.8
million or 30.6% of adjusted sales compared to the prior year
adjusted gross margin rate of 30.6%. The flat adjusted gross margin
rate was unfavorably impacted by the credit mix resulting from
softer sales at Jared compared to Kay. As Jared typically has
higher credit quality customers than Kay, this led to greater net
bad debt expense. This mix shift unfavorably impacted gross margin
by approximately $4.5 million. Importantly, the credit portfolio
continues perform profitably and as-expected given the new customer
mix. The net bad debt impact was entirely offset by gross margin
synergies, related mostly to the Zale division, as well as
favorable commodity costs.
- Gross margin dollars in the Sterling
Jewelers division increased $7.3 million compared to prior year
third quarter. The gross margin rate, down 90 basis points,
decreased principally due to higher net bad debt from higher
in-house credit sales and customer credit mix. This was partially
offset by an improvement in the merchandise margin from favorable
commodity costs.
- Gross margin dollars in the Zale
division increased $1.9 million compared to prior year third
quarter, reflecting higher sales and an adjusted gross margin rate
increase of 120 basis points. The gross margin rate expansion was
driven principally by improved merchandise margin attributed to
synergy initiatives and favorable commodity costs.
- Gross margin dollars in the UK Jewelry
division increased $0.6 million compared to prior year third
quarter, and the gross margin rate increased 70 basis points. The
gross margin rate expansion was driven principally by favorable
commodity costs and leverage on store occupancy.
Selling, general, and administrative expense ("SGA") was $395.0
million or 32.4% of sales compared to $388.7 million or 33.0% of
sales in third quarter Fiscal 2015. Included in SGA are $7.4
million of transaction-related expense and purchase accounting
adjustments compared to prior year third quarter expense of $7.0
million.
- Third quarter Fiscal 2016 adjusted SGA
was $387.6 million or 31.7% of sales compared to $381.7 million or
32.1% in the prior year. The 40 basis point decrease was due to
lower payroll partially offset by incremental investments in Zale
principally around advertising, information technology support, and
employee benefits.
Other operating income was $60.9 million compared to $53.5
million in the prior year third quarter, up $7.4 million or 13.8%.
This increase was due to the Sterling division’s higher interest
income earned from higher outstanding receivable balances.
Operating income was $33.6 million, or 2.8% of sales compared to
$10.7 million or 0.9% of sales last year. Included in operating
income were purchase accounting and transaction-related adjustments
which reduced operating income by $13.5 million in the third
quarter compared to adjustments of $25.0 in the prior year third
quarter. Adjusted operating income was $47.1 million, or 3.9% of
sales compared to adjusted operating income of $35.7 million or
3.0% of sales in the prior year third quarter. Signet's 90 basis
point increase in adjusted operating margin was due principally to
higher sales, net synergies, and SGA leverage.
- Operating income in the Sterling
Jewelers division was $77.2 million or 10.5% of sales compared to
$68.1 million or 9.8% in the prior year third quarter. The increase
was offset in part by the unfavorable credit quality mix shift
which seasonally has a more pronounced impact in the relatively
lower-volume third quarter.
- Operating loss in the Zale division,
inclusive of purchase accounting adjustments, was $24.3 million or
7.4% of sales compared to an operating loss of $34.5 million or
10.4% in the prior year third quarter.
- Operating income in the UK division was
$0.0 million of sales compared to an operating loss of $2.7 million
or 1.8% of sales in the prior year third quarter.
- Operating loss of the Other operating
segment, which includes unallocated corporate administrative costs
and the costs of Signet's diamond sourcing initiative, was $19.3
million compared to a loss of $20.2 million in the prior year third
quarter. The favorable change was driven by the decline of
transaction costs as the Zale acquisition becomes more fully
integrated.
Income tax expense was $6.9 million compared to a benefit of
$0.6 million in the prior year third quarter. This year's annual
effective tax rate is expected to be 28% to 29% driven by pre-tax
earnings mix by jurisdiction and the $34.2 million appraisal rights
legal settlement in August which is not deductible for tax
purposes.
Balance Sheet and Other Highlights at October 31,
2015:
Cash and cash equivalents were $77.2 million compared to $87.6
million as of November 1, 2014. The lower cash position was
primarily due to the cash payment of the appraisal litigation
settlement and share repurchases, partially offset by favorable
cash provided by operating activities.
During the third quarter, Signet repurchased $30.0 million of
shares, or 239,370 shares at an average cost of $125.33 per share.
Year to date Signet repurchased $111.9 million of shares, or
868,325 shares at an average cost of $128.91 per share. As of
October 31, 2015, there was $153.7 million remaining under
Signet’s 2013 share repurchase authorization program.
Net accounts receivable were $1,451.5 million, up 12.3% compared
to $1,292.1 million as of November 1, 2014. In the Sterling
Jewelers division the credit participation rate was 63.0% in the 39
weeks ended October 31, 2015 compared to 61.7% in the 39 weeks
ended November 1, 2014. The increase in the credit
participation rate was driven by Kay.
Net inventories were $2,727.0 million, up 2.0% compared to
$2,674.6 million as of the prior year period due primarily to more
stores offset in part by improved inventory management. With third
quarter total sales growth of 3.3%, Signet was well-positioned with
a clean inventory position to start the fourth quarter.
Long term debt was $1,338.7 million compared to $1,371.3 million
in the prior year period.
On October 31, 2015, Signet had 3,618 stores, consisting of
the following:
Store count
Jan 31, 2015 Openings
Closures Oct 31, 2015 Kay 1,094 37 (5 ) 1,126
Jared 253 16 (1
)
268 Regional brands 157 — (7 )
150
Sterling Jewelers division
1,504 53 (13 )
1,544 Zales 716 10 (6 ) 720 Gordons 69 — — 69 Peoples 144 1
(5 ) 140 Mappins 43 — — 43 Total Zale Jewelry 972 11 (11 ) 972
Piercing Pagoda 605 7 (10 )
602
Zale division 1,577
18 (21 ) 1,574
H.Samuel 302 — (2 ) 300 Ernest Jones 196
5 (1 ) 200
UK Jewelry division
498 5 (3 )
500 Signet 3,579
76 (37 ) 3,618
Conference Call:
A conference call is scheduled today at 8:30 a.m. ET and a
simultaneous audio webcast and slide presentation are available at
www.signetjewelers.com. The slides are available to be downloaded
from the website ahead of the conference call. The call details
are:
Dial-in: 1-647-788-4901
Access code: 57403664
A replay and transcript of the call will be posted on Signet's
website as soon as they are available and will be accessible for
one year.
About Signet and Safe Harbor Statement:
Signet Jewelers Limited is the world's largest retailer of
diamond jewelry. Signet operates approximately 3,600 stores
primarily under the name brands of Kay Jewelers, Zales, Jared The
Galleria Of Jewelry, H.Samuel, Ernest Jones, Peoples and Piercing
Pagoda. Further information on Signet is available at
www.signetjewelers.com. See also www.kay.com, www.zales.com,
www.jared.com, www.hsamuel.co.uk, www.ernestjones.co.uk,
www.peoplesjewellers.com and www.pagoda.com.
This release contains statements which are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements, based upon management's
beliefs and expectations as well as on assumptions made by and data
currently available to management, include statements regarding,
among other things, Signet's results of operation, financial
condition, liquidity, prospects, growth, strategies and the
industry in which Signet operates. The use of the words "expects,"
"intends," "anticipates," "estimates," "predicts," "believes,"
"should," "potential," "may," "forecast," "objective," "plan," or
"target," and other similar expressions are intended to identify
forward-looking statements. These forward-looking statements are
not guarantees of future performance and are subject to a number of
risks and uncertainties, including but not limited to general
economic conditions, risks relating to Signet being a Bermuda
corporation, the merchandising, pricing and inventory policies
followed by Signet, the reputation of Signet and its brands, the
level of competition in the jewelry sector, the cost and
availability of diamonds, gold and other precious metals,
regulations relating to customer credit, seasonality of Signet's
business, financial market risks, deterioration in customers’
financial condition, exchange rate fluctuations, changes in
Signet's credit rating, changes in consumer attitudes regarding
jewelry, management of social, ethical and environmental risks,
security breaches and other disruptions to Signet's information
technology infrastructure and databases, inadequacy in and
disruptions to internal controls and systems, changes in
assumptions used in making accounting estimates relating to items
such as extended service plans and pensions, the impact of the
acquisition of Zale Corporation on relationships, including with
employees, suppliers, customers and competitors, and our ability to
successfully integrate Zale's operations and to realize synergies
from the transaction.
For a discussion of these and other risks and uncertainties
which could cause actual results to differ materially from those
expressed in any forward-looking statement, see the "Risk Factors"
section of Signet's Fiscal 2015 Annual Report on Form 10-K filed
with the SEC on March 26, 2015. Signet undertakes no obligation to
update or revise any forward-looking statements to reflect
subsequent events or circumstances, except as required by law.
Signet uses adjusted metrics, which adjust for purchase
accounting and transaction costs related to the acquisition to give
investors information as to Signet’s results without regard to the
expenses associated with the acquisition.
Non-GAAP Reconciliation for the third quarter ended
October 31, 2015 (in mil. of $ except per share data)
Adjusted Signet
PurchaseAccounting1
TransactionCosts2
Signet Sales 1,222.6 100.0 % (6.2 ) —
1,216.4 100.0 % Cost of sales (848.8 ) (69.4
)% 0.1 — (848.7 ) (69.8
)% Gross margin 373.8 30.6 % (6.1 ) — 367.7 30.2 % Selling, general
and administrative expenses (387.6 ) (31.7 )% 2.4 (9.8 ) (395.0 )
(32.4 )% Other operating income, net 60.9 5.0 %
— — 60.9 5.0 %
Operating income (loss) 47.1 3.9 % (3.7 ) (9.8
)
33.6 2.8 % Interest expense, net (11.7 ) (1.0 )% —
— (11.7
)
(1.0 )% Income before income taxes 35.4 2.9 % (3.7 ) (9.8 )
21.9 1.8 % Income taxes (9.6 ) (0.8 )% 1.7
1.0 (6.9 ) (0.6 )% Net income (loss)
25.8 2.1 % (2.0 )
(8.8 ) 15.0 1.2 % Earnings per share – diluted
0.33 (0.03 )
(0.11 ) 0.19
(1)
Includes deferred revenue adjustments related to acquisition
accounting which resulted in a reset of deferred revenue associated
with extended service plans previously sold by Zale Corporation.
Similar to the Sterling Jewelers division, historically, Zale
Corporation deferred the revenue generated by the sale of lifetime
warranties and recognized revenue in relation to the pattern of
costs expected to be incurred, which included a profit margin on
activities related to the initial selling effort. In acquisition
accounting, deferred revenue is only recognized when a legal
performance obligation is assumed by the acquirer. The fair value
of deferred revenue is determined based on the future obligations
associated with the outstanding plans at the time of the
acquisition. The acquisition accounting adjustment results in a
reduction to the deferred revenue balance from $183.8 million to
$93.3 million as of May 29, 2014 as the fair value was determined
through the estimation of costs remaining to be incurred, plus a
reasonable profit margin on the estimated costs. Revenues generated
from the sale of extended services plans subsequent to the
acquisition are recognized in revenue in a manner consistent with
Signet’s methodology. Additionally, accounting adjustments include
the amortization of acquired intangibles. (2) Transaction
costs are primarily attributed to the legal settlement over
appraisal rights and consulting expenses. These costs are included
within Signet’s Other segment.
Non-GAAP
Reconciliation for the third quarter ended November 1, 2014 (in
mil. of $ except per share data)
Adjusted Signet
PurchaseAccounting1
TransactionCosts2
Signet Sales 1,189.4 100.0 % (11.5 ) — 1,177.9
100.0 % Cost of sales (825.5 ) (69.4 )% (6.5 )
— (832.0 ) (70.6 )% Gross margin 363.9 30.6 %
(18.0 ) — 345.9 29.4 % Selling, general and administrative expenses
(381.7 ) (32.1 )% 4.4 (11.4 ) (388.7 ) (33.0 )% Other operating
income, net 53.5 4.5 % — —
53.5 4.5 % Operating income (loss) 35.7
3.0 % (13.6 ) (11.4 ) 10.7 0.9 % Interest expense, net (11.0 )
(0.9 )% (1.6 ) — (12.6 )
(1.1 )% Income before income taxes 24.7 2.1 % (15.2 ) (11.4 ) (1.9
) (0.2 )% Income taxes (8.2 ) (0.7 )% 5.8
3.0 0.6 0.1 % Net income (loss)
16.5 1.4 % (9.4 )
(8.4 ) (1.3 ) (0.1 )% Earnings per share – diluted
0.21 (0.12 )
(0.11 ) (0.02 ) (1)
Includes deferred revenue adjustments related to acquisition
accounting which resulted in a reset of deferred revenue associated
with extended service plans previously sold by Zale Corporation.
Similar to the Sterling Jewelers division, historically, Zale
Corporation deferred the revenue generated by the sale of lifetime
warranties and recognized revenue in relation to the pattern of
costs expected to be incurred, which included a profit margin on
activities related to the initial selling effort. In acquisition
accounting, deferred revenue is only recognized when a legal
performance obligation is assumed by the acquirer. The fair value
of deferred revenue is determined based on the future obligations
associated with the outstanding plans at the time of the
acquisition. The acquisition accounting adjustment resulted in a
reduction to the deferred revenue balance from $183.8 million to
$93.3 million as of May 29, 2014 as the fair value was determined
through the estimation of costs remaining to be incurred, plus a
reasonable profit margin on the estimated costs. Revenues generated
from the sale of extended services plans subsequent to the
acquisition are recognized in revenue in a manner consistent with
Signet’s methodology. Additionally, accounting adjustments include
the recognition of a portion of the inventory fair value step-up of
$32.2 million and amortization of acquired intangibles. (2)
Transaction costs include transaction-related and integration
expenses associated with advisor fees for legal, tax, accounting
and consulting expenses. Severance costs related to Zale and other
management changes are also included to conform with the current
year presentation. These costs are included within Signet’s Other
segment.
Condensed Consolidated Income
Statements
(Unaudited)
13 weeks ended 39 weeks ended
(in millions, except per share amounts)
October 31, 2015
November 1, 2014
October 31, 2015
November 1, 2014
Sales 1,216.4 1,177.9 4,157.6 3,459.9 Cost of sales
(848.7 ) (832.0 ) (2,733.2 ) (2,297.8 )
Gross margin 367.7 345.9 1,424.4
1,162.1 Selling, general and administrative expenses (395.0
) (388.7 ) (1,301.0 ) (1,078.4 ) Other operating income, net
60.9 53.5 187.2
161.2
Operating income 33.6 10.7
310.6 244.9 Interest expense, net
(11.7 ) (12.6 ) (33.8 ) (28.1 )
Income (loss) before income taxes 21.9 (1.9
) 276.8 216.8 Income taxes
(6.9 ) 0.6 (80.8 ) (63.5 )
Net income (loss) 15.0 (1.3 )
196.0 153.3 Basic earnings (loss) per share $ 0.19 $
(0.02 ) $ 2.46 $ 1.92 Diluted earnings (loss) per share $ 0.19 $
(0.02 ) $ 2.45 $ 1.91 Basic weighted average common shares
outstanding 79.3 79.9 79.7 79.9 Diluted weighted average common
shares outstanding 79.5 79.9 79.9 80.2 Dividends declared per share
$ 0.22 $ 0.18 $ 0.66 $ 0.54
Condensed Consolidated Balance
Sheets
(Unaudited)
(in millions, except par value per share amount)
October
31, 2015 January 31, 2015 November 1,
2014 Assets Current assets: Cash and cash equivalents
77.2 193.6 87.6 Accounts receivable, net 1,451.5 1,567.6 1,292.1
Other receivables 55.4 63.6 56.7 Other current assets 143.2 137.2
133.7 Deferred tax assets 3.6 4.5 1.6 Income taxes 24.6 1.8 21.6
Inventories 2,727.0 2,439.0 2,674.6
Total current assets
4,482.5 4,407.3 4,267.9 Non-current assets:
Property, plant and equipment, net of
accumulated depreciation of$939.7, $852.1 and $839.0,
respectively
718.0 665.9 658.8 Goodwill 517.6 519.2 524.3 Intangible assets, net
434.3 447.1 461.3 Other assets 144.5 140.0 133.5 Deferred tax
assets 132.1 111.1 72.8 Retirement benefit asset 40.7 37.0 59.9
Total assets 6,469.7 6,327.6 6,178.5
Liabilities and Shareholders’ equity Current liabilities:
Loans and overdrafts 249.8 97.5 221.8 Accounts payable 371.4 277.7
396.2 Accrued expenses and other current liabilities 408.0 482.4
422.7 Deferred revenue 241.4 248.0 221.6 Deferred tax liabilities
170.5 145.8 151.2 Income taxes 0.7 86.9 3.6
Total current
liabilities 1,441.8 1,338.3 1,417.1
Non-current liabilities: Long-term debt 1,338.7 1,363.8 1,371.3
Other liabilities 226.6 230.2 227.2 Deferred revenue 597.5 563.9
518.8 Deferred tax liabilities 20.1 21.0 1.8
Total
liabilities 3,624.7 3,517.2 3,536.2
Commitments and contingencies Shareholders’ equity:
Common shares of $0.18 par value:
authorized 500 shares, 79.5 sharesoutstanding (January 31, 2015:
80.3 outstanding; November 1, 2014:80.2 outstanding)
15.7 15.7 15.7 Additional paid-in capital 274.7 265.2 261.2 Other
reserves 0.4 0.4 0.4
Treasury shares at cost: 7.7 shares
(January 31, 2015: 6.9 shares;November 1, 2014: 7.0 shares)
(480.3 ) (370.0 ) (373.2 ) Retained earnings 3,280.3 3,135.7
2,922.1
Accumulated other comprehensive loss (245.8
) (236.6 ) (183.9 ) Total
shareholders’ equity 2,845.0 2,810.4
2,642.3 Total liabilities and shareholders’ equity
6,469.7 6,327.6 6,178.5
Condensed Consolidated Statements of
Cash Flows
(Unaudited)
13 weeks ended 39 weeks ended (in
millions)
October 31, 2015
November 1, 2014
October 31, 2015
November 1, 2014
Cash flows from operating activities Net
income (loss) 15.0 (1.3 ) 196.0 153.3
Adjustments to reconcile net income (loss)
to net cash (used in)provided by operating activities:
Depreciation and amortization 45.0 40.3 129.5 104.8 Amortization of
unfavorable leases and contracts (7.0 ) (8.9 ) (24.6 ) (14.8 )
Pension benefit — (0.6 ) — (1.8 ) Share-based compensation 4.7 3.5
11.8 10.7 Deferred taxation (5.9 ) (28.0 ) 8.0 (32.2 ) Excess tax
benefit from exercise of share awards — — (5.1 ) (7.7 )
Amortization of debt discount and issuance costs 1.0 1.0 2.6 6.5
Other non-cash movements 0.7 0.6 2.7 0.7 Changes in operating
assets and liabilities: Decrease in accounts receivable 41.6 23.5
116.3 81.8 Decrease (increase) in other receivables and other
assets 2.1 (0.9 ) 1.6 (4.9 ) Increase in other current assets (17.6
) (13.9 ) (12.8 ) (36.7 ) Increase in inventories (317.7 ) (338.2 )
(289.3 ) (321.1 ) Increase in accounts payable 174.4 161.8 93.6
132.9 (Decrease) increase in accrued expenses and other liabilities
(31.9 ) 4.0 (60.5 ) (15.0 ) Increase in deferred revenue 1.0 8.2
25.0 29.2 Decrease in income taxes payable (26.8 ) (58.2 ) (104.1 )
(106.7 ) Pension plan contributions (0.5 )
(1.0 ) (2.0 ) (3.2 )
Net cash (used in)
provided by operating activities
(121.9 ) (208.1 )
88.7 (24.2 ) Investing
activities Purchase of property, plant and equipment (71.9 ) (75.1
) (170.8 ) (165.1 ) Purchase of available-for-sale securities (1.9
) (3.0 ) (3.8 ) (4.2 ) Proceeds from sale of available-for-sale
securities — 1.5 3.6 2.5 Acquisition of Zale Corporation, net of
cash acquired — —
— (1,429.2 )
Net cash used in investing
activities (73.8 )
(76.6 ) (171.0 )
(1,596.0 ) Financing activities Dividends paid (17.5
) (14.4 ) (49.6 ) (40.8 ) Proceeds from issuance of common shares
3.1 2.2 3.3 4.2 Excess tax benefit from exercise of share awards —
— 5.1 7.7 Proceeds from senior notes — — — 398.4 Proceeds from term
loan — — — 400.0 Repayments of term loan (7.5 ) (5.0 ) (17.5 ) (5.0
) Proceeds from securitization facility 542.6 493.4 1,738.9 1,424.0
Repayments of securitization facility (542.6 ) (493.4 ) (1,738.9 )
(824.0 ) Proceeds from revolving credit facility 177.0 145.0 177.0
145.0 Repayments of revolving credit facility (30.0 ) — (30.0 ) —
Payment of debt issuance costs — (2.1 ) — (20.5 ) Repurchase of
common shares (30.0 ) (7.4 ) (111.9 ) (29.8 ) Net settlement of
equity based awards — (3.0 ) (8.3 ) (18.1 ) Principal payments
under capital lease obligations (0.2 ) (0.3 ) (0.8 ) (0.5 )
Proceeds from (repayment of) short-term borrowings
18.5 43.0 (1.5 ) 20.8
Net cash provided by (used in) financing activities
113.4 158.0
(34.2 ) 1,461.4 Cash and
cash equivalents at beginning of period 159.8 215.0 193.6 247.6
Decrease in cash and cash equivalents (82.3 ) (126.7 ) (116.5 )
(158.8 ) Effect of exchange rate changes on cash and cash
equivalents (0.3 ) (0.7 ) 0.1 (1.2 ) Cash and cash equivalents at
end of period 77.2 87.6
77.2 87.6
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151124005301/en/
Signet JewelersInvestors:James Grant, +1 (330) 668-5412VP
Investor RelationsorMedia:Signet JewelersDavid Bouffard, +1 (330)
668-5369VP Corporate Affairs
Signet Jewelers (NYSE:SIG)
Historical Stock Chart
From Aug 2024 to Sep 2024
Signet Jewelers (NYSE:SIG)
Historical Stock Chart
From Sep 2023 to Sep 2024