Same store sales 3.6%; EPS $1.48, Adjusted
EPS $1.62
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 May 2, 2015 (“first quarter Fiscal
2016”). Consolidated results reflect the addition of Zale
Corporation, acquired on May 29, 2014, as well as purchase
accounting and transaction costs related to that acquisition.
Mark Light, Chief Executive Officer of Signet, said, “We
delivered a very strong first quarter of 3.6% same store sales and
a 25.6% increase in adjusted EPS. Each of our divisions had
impressive same store sales increases, led by our UK division with
an increase of 6.2%, while our newest division, Zale, had a 5.6%
increase. The Sterling division had a 2.3% same store increase --
its 22nd consecutive quarterly comp increase. These results
afforded us the opportunity to repurchase $21.9 million of Signet
stock in the first quarter, in-line with our capital allocation
plan.
"We continue to see favorable progress of our integration of the
Zale division. As we implement new operating initiatives and deploy
incremental capital resources, the Zale division has begun, as
expected, to grow its same store sales faster than Signet overall.
We expect this trend to continue, and we remain well-positioned to
meet our goal of $150 million to $175 million in cumulative 3-year
operating profit synergies by the end of January 2018.
“I want to congratulate and thank all Signet team members for
their contributions to our impressive first quarter results.”
First Quarter Fiscal 2016 Diluted Earnings per Share (“EPS”)
Analysis:
First quarter EPS was $1.48. First quarter adjusted EPS was
$1.62. Adjusted EPS can be reconciled to EPS as follows:
Adjusted EPS1
Purchase accounting adjustments
Transaction costs Earnings per share $1.62 $(0.09)
$(0.05) $1.48
First quarter adjusted EPS was $1.62. On a comparable basis to
first quarter Fiscal 2015, EPS was $1.35. A reconciliation is as
follows:
Adjusted Contribution of
Zale
Impact of capital structure
EPS on a comparable
EPS(1)
division
and financing
basis $1.62 $0.20 $0.07 $1.35
EPS on a comparable basis increased $0.06 compared to the 13
weeks ended May 3, 2014 ("first quarter Fiscal 2015") adjusted EPS
of $1.29.
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:
Signet is providing guidance for the 13 weeks ended August 1,
2015 ("second quarter Fiscal 2016") and a framework for its full
year expectations.
Second Quarter Fiscal 2016
Same store sales 2% to 3% EPS $0.99 to $1.05
Adjustments per share: Purchase accounting adjustments ($0.05)
Transaction costs ($0.07) to ($0.06) Adjusted EPS (EPS less
adjustments per share) $1.11 to $1.16 Fiscal 2016
Effective tax rate 28% to 29% Capital expenditures
$275 million to $325 million Net selling square footage growth 2%
to 3%
Capital expenditures will be driven primarily by new Kay and
Jared stores, store remodels, and approximately $80 million to $90
million directed to the Zale division for information technology
infrastructure and stores.
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
First quarter Fiscal 2016 Sales Highlights:
Total sales were $1,530.6 million, up $474.5 million or 44.9%,
compared to $1,056.1 million in the first quarter Fiscal 2015. The
increase was primarily driven by the addition of the Zale division
which added $437.1 million of sales to first quarter Fiscal 2016.
Same store sales increased 3.6% compared to an increase of 3.3% in
the first quarter Fiscal 2015. eCommerce sales in the first quarter
were $76.9 million, up $38.2 million or 98.7%, which included $28.6
million of Zale eCommerce sales, compared to $38.7 million in the
prior year first quarter.
- Sterling Jewelers division sales
increases were driven primarily by Kay and by select diamond
jewelry collections; as well as watches. The average transaction
price in Sterling increased by 4.7% and the number of transactions
decreased by 3.0% due principally to merchandise mix, including
bridal and higher price point fashion collections.
- Zale division sales were driven
primarily by sales associate training, new marketing creative, and
branded bridal and branded diamond fashion merchandise. Total sales
were unfavorably impacted by a deferred revenue adjustment of $8.6
million due to purchase accounting.
- UK Jewelry division sales decreases
were driven entirely by the unfavorable impact of foreign currency
exchange (though the net impact to operating profit from foreign
exchange was negligible). The increase in same store sales as well
as total sales at constant exchange rates was driven primarily by
branded bridal as well as fashion diamond jewelry and fashion
watches. The number of transactions and average transaction price
for the division increased by 2.6% and 3.6%, respectively. The
average merchandise transaction value increased in both H.Samuel
and Ernest Jones primarily driven by increases in diamond sales.
The number of merchandise transactions increased in both H.Samuel
and Ernest Jones due to strong performance in diamond, fashion
jewelry and watch sales.
Sales change from previous year
Total sales Same
Non-same at constant Exchange
First quarter store store
exchange translation Total Total sales
Fiscal 2016
sales¹
sales, net² rate³ impact³ sales
(in millions) Kay 3.6 % 2.4 % 6.0 %
— % 6.0 %
$ 596.6 Jared 0.2 % 4.2 % 4.4 %
— % 4.4 % $ 295.5
Regional brands (0.8 )% (8.7
)%
(9.5 )%
— % (9.5 )% $
52.1
Sterling Jewelers division
2.3 % 2.2 %
4.5 % — % 4.5
% $ 944.2 Zales Jewelers 6.1 % $ 297.3
Gordon’s Jewelers (3.1 )% $ 20.8 Zale US Jewelry 5.4 % $ 318.1
Peoples Jewellers 6.6 % $ 47.2 Mappins 2.9 % $ 7.6 Zale Canada
Jewelry 6.1 % $ 54.8 Zale Jewelry 5.5 % $ 372.9 Piercing Pagoda
6.1 %
$ 64.2
Zale division4
5.6 %
$ 437.1 H.Samuel
4.2 % 0.6 % 4.8 % (9.9 )% (5.1 )% $ 74.8 Ernest Jones
8.3 % 0.3 % 8.6 % (10.2 )% (1.6 )%
$ 71.7
UK Jewelers division 6.2
% 0.4 % 6.6 %
(10.0 )% (3.4 )%
$ 146.5 Other5 segment
— % NM NM
— % NM $ 2.8
Signet 3.6 % 43.3
% 46.9 % (2.0 )%
44.9 % $ 1,530.6 Adjusted
Signet3
$ 1,539.2
Adjusted Signet excluding Zale3
$ 1,093.5 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.
4. Same store sales presented for Zale Division to provide
comparative performance measures. Year-over-year results not
applicable because Signet did not own Zale division in the first
quarter of the prior year. 5. NM - not meaningful. Includes
sales from Signet’s diamond sourcing initiative.
First quarter Fiscal 2016 Financial Highlights:
Gross margin was $565.9 million or 37.0% of sales compared to
$407.2 million or 38.6% of sales in the first quarter Fiscal 2015.
Adjusted gross margin was $581.4 million or 37.8% of adjusted
sales. The decrease in the adjusted gross margin rate from prior
year of 80 basis points was due to the lower gross margins
associated with the Zale division. Zale, which reduced Signet's
adjusted gross margin rate by 90 basis points, operates with a
lower gross margin structure than the Sterling division and
represents an area of focus for improvement. The impact of Zale on
Signet’s adjusted gross margin rate was partially offset by higher
gross margin rates as follows:
- Gross margin dollars in the Sterling
Jewelers division increased $17.9 million compared to the prior
year first quarter, reflecting higher sales and a gross margin rate
increase of 10 basis points. The gross margin rate expansion was
driven principally by an improvement in the merchandise margin due
to favorable commodity costs.
- In the UK Jewelry division, gross
margin dollars decreased $1.2 million but the gross margin rate
increased 10 basis points compared to the prior year first quarter.
The decrease in dollars was due to lower total sales as a result of
foreign currency translation. The gross margin rate increase was a
result of lower store occupancy expenses.
Selling, general and administrative expenses (“SGA”) were $453.2
million or 29.6% of sales compared to $310.5 million or 29.4% of
sales in first quarter Fiscal 2015. The $142.7 million increase was
primarily due to the addition of the Zale division this year. In
addition, included in SGA were $2.3 million of adjustments related
to purchase accounting and transaction related expenses in the
current year quarter compared to $8.4 million of pre-transaction
expenses in the comparable prior year quarter. Adjusted SGA was
$450.9 million or 29.3% of sales compared to adjusted SGA of $302.1
million or 28.6% of sales in first quarter Fiscal 2015. The
adjusted Signet SGA rate excluding Zale would have also been 29.3%.
The difference between the adjusted Signet SGA rate excluding Zale
and the prior year first quarter adjusted Signet SGA rate was
primarily due to planned higher advertising expense in the Sterling
division and higher Signet central costs due to legal and payroll
related costs.
Other operating income was $63.5 million compared to $54.0
million in the prior year first quarter, up $9.5 million or 17.6%.
This increase was due to the Sterling division’s higher interest
income earned from higher outstanding receivable balances.
Operating income was $176.2 million, or 11.5% of sales compared
to $150.7 million or 14.3% of sales last year. Included in
operating income were adjustments which reduced operating income by
$17.8 million in the first quarter compared with adjustments of
$8.4 million in the prior year first quarter. Adjusted operating
income was $194.0 million, or 12.6% of sales compared to adjusted
operating income of $159.1 million or 15.1% of sales last year. The
250 basis point decrease in adjusted operating margins was due to
the addition of the Zale division this year. Excluding the Zale
division, the adjusted Signet operating margin would have been
15.3%, up 20 basis points compared to last year.
- Operating income in the Sterling
Jewelers division was $178.2 million or 18.9% of sales compared to
$166.3 million or 18.4% in the prior year first quarter.
- Operating income in the Zale division
was $15.5 million or 3.5% of sales.
- Operating income in the UK division was
$0.5 million or 0.3% of sales compared to $0.0 in the prior year
first quarter.
- Operating loss of the Other operating
segment, which includes unallocated corporate administrative costs
and the costs of Signet's diamond sourcing initiative, was $18.0
million compared to a loss of $15.6 million in the prior year first
quarter, an increase of $2.4 million.
Income tax expense was $46.4 million, an effective tax rate
(“ETR”) of 28.1%, compared to $52.3 million, an ETR of 35.1%, in
the prior year first quarter. This year’s lower ETR reflects
Signet’s amended capital structure and the global financing
arrangements utilized to fund the acquisition of Zale.
Balance Sheet and Other Highlights at May 2, 2015:
Cash and cash equivalents were $122.6 million compared to $249.1
million as of May 3, 2014. The lower cash position was due to
unfavorable changes to working capital, higher capital spending,
higher dividends and share repurchases, and the financing of the
Zale acquisition.
For the quarter, Signet repurchased $21.9 million of shares, or
160,298 shares at an average cost of $136.84 per share. As of May
2, 2015, there was $243.7 million remaining under Signet’s 2013
share repurchase authorization program.
Net accounts receivable were $1,499.9 million, up 14.7% compared
to $1,308.2 million as of May 3, 2014. In the Sterling Jewelers
division the credit participation rate was 60.7% in the 13 weeks
ended May 2, 2015 compared to 58.1% in the 13 weeks ended May 3,
2014.
Net inventories were $2,487.8 million, up 63.3% compared to
$1,523.9 million as of the prior year period. The increase was due
primarily to the acquisition of the Zale division, which had
inventories of $895.9 million at the end of first quarter Fiscal
2016. Inventory growth was secondarily driven by new stores and
higher diamond inventory associated with our bridal business and
diamond sourcing initiative.
Long term debt was $1.4 billion compared to $0.0 in the prior
year period due to the financing of the Zale acquisition. On May
28, 2015, Signet amended the note purchase agreement associated
with the asset-backed securitization facility to extend the term of
the facility by one year to May 2017 with all terms substantially
the same as the original agreement.
On May 2, 2015, Signet had 3,589 stores, consisting of the
following:
Store count
Jan 31, 2015 Openings
Closures May 2, 2015 Kay 1,094 19 (2 ) 1,111
Jared 253 4 (1 ) 256 Regional brands 157
— (2 ) 155
Sterling Jewelers
division 1,504 23
(5 ) 1,522 Zales Jewelers
716 1 (3 ) 714 Gordon’s Jewelers 69 — (2 ) 67 Peoples Jewellers 144
— — 144 Mappins 43 — — 43 Zale Jewelry segment 972 1 (5 ) 968
Piercing Pagoda 605 — (6
) 599
Zale division 1,577
1 (11 )
1,567 H.Samuel 302 — — 302 Ernest Jones 196
2 — 198
UK Jewelry
division 498 2
— 500 Signet
3,579 26
(16 ) 3,589
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: 1-877-201-0168 Access code: 42337761
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, the impact of
stockholder litigation with respect to the acquisition of Zale
Corporation, 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.
The Company uses adjusted metrics, which adjust for purchase
accounting and transaction costs related to the Zale acquisition
and the contribution of the Zale division to give investors
information as to the Company’s results without regard to the
expenses associated with the May 2014 acquisition of Zale
Corporation. Signet is furnishing the following schedules in order
to provide further visibility into the components of Adjusted
Signet results until the third quarter of Fiscal 2016.
Non-GAAP Reconciliation for the first
quarter ended May 2, 2015 (in mil. of $ except per share
data)
Purchase Transaction Adjusted
Signet
Accounting(1)
Costs(2)
Signet Sales 1,539.2 (8.6 ) — 1,530.6 Cost of sales (957.8 )
(6.9 ) — (964.7 ) Gross margin 581.4
(15.5 ) — 565.9 Selling, general and administrative expenses (450.9
) 4.1 (6.4 ) (453.2 ) Other operating income, net 63.5
— — 63.5 Operating income
(loss) 194.0 (11.4 ) (6.4 ) 176.2 Interest expense, net (11.0 )
— — (11.0 ) Income before income
taxes 183.0 (11.4 ) (6.4 ) 165.2 Income taxes (52.8 ) 4.0
2.4 (46.4 ) Net income (loss)
130.2 (7.4 ) (4.0 ) 118.8
Earnings per share – diluted 1.62 (0.09
) (0.05 ) 1.48
Signet's First quarter
Guidance $1.57 to $1.62 ($0.12) to ($0.10)
$ (0.03 ) $1.42 to $1.49
Additional schedule for the first
quarter ended May 2, 2015 ($ in mil. except per share data)
Adjusted Signet
excluding Zale(3)
Zale operations Adjusted Signet Sales 1,093.5 100.0 % 445.7
100.0 % 1,539.2 100.0 % Cost of sales (670.1 )
(61.3 )% (287.7 ) (64.6 )% (957.8 ) (62.2 )% Gross
margin 423.4 38.7 % 158.0 35.4 % 581.4 37.8 % Selling, general and
administrative expenses (320.5 ) (29.3 )% (130.4 ) (29.3 )% (450.9
) (29.3 )% Other operating income, net 64.2 5.9 %
(0.7 ) (0.1 )% 63.5 4.1 % Operating income
167.1 15.3 % 26.9 6.0 % 194.0 12.6 % Interest expense, net (10.2 )
(0.9 )% (0.8 ) (0.1 )% (11.0 ) (0.7 )% Income
before income taxes 156.9 14.4 % 26.1 5.9 % 183.0 11.9 % Income
taxes (42.6 ) (3.9 )% (10.2 ) (2.3 )% (52.8 )
(3.4 )% Net income (loss) 114.3 10.5 % 15.9
3.6 % 130.2 8.5 % Earnings per share – diluted
$ 1.42 $ 0.20 $ 1.62
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 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. These costs are included within Signet’s
Other segment.
3.
Includes capital structure and financing costs.
Non-GAAP Reconciliation for the first
quarter ended May 3, 2014 (in mil. of $ except per share
data)
Transaction Adjusted Signet
Costs(1)
Signet Sales 1,056.1 — 1,056.1 Cost of sales (648.9 )
— (648.9 ) Gross margin 407.2 — 407.2 Selling,
general and administrative expenses (302.1 ) (8.4 ) (310.5 ) Other
operating income, net 54.0 — 54.0
Operating income (loss) 159.1 (8.4 ) 150.7 Interest expense,
net (1.0 ) (0.8 ) (1.8 ) Income before income taxes
158.1 (9.2 ) 148.9 Income taxes (54.2 ) 1.9
(52.3 ) Net income (loss) 103.9 (7.3 )
96.6 Earnings per share – diluted $
1.29 $ (0.09 ) $ 1.20
1.
Transaction costs include pre-acquisition
transaction-related expenses associated with bridge financing and
advisor fees for legal, tax, accounting and consulting expenses.
These costs are included within Signet’s Other segment.
Condensed Consolidated Income
Statements
(Unaudited) 13 weeks ended
(in millions, except per share
amounts)
May 2, 2015 May
3, 2014 Sales 1,530.6 1,056.1 Cost of sales
(964.7 ) (648.9 )
Gross margin 565.9 407.2 Selling, general and
administrative expenses (453.2 ) (310.5 ) Other operating income,
net 63.5 54.0
Operating income 176.2 150.7 Interest
expense, net (11.0 ) (1.8
)
Income before income taxes 165.2 148.9
Income taxes (46.4 )
(52.3 )
Net income
118.8 96.6 Earnings per share: basic $ 1.49 $ 1.21
diluted $ 1.48 $ 1.20 Weighted average common shares outstanding:
basic 80.0 79.9 diluted 80.2 80.3 Dividends declared per share $
0.22 $ 0.18
Condensed Consolidated Balance
Sheets
(Unaudited)
(in millions, except par value per
share amount)
May 2, 2015 February 2, 2015
May 3, 2014
Assets
Current assets: Cash and cash equivalents 122.6 193.6 249.1
Accounts receivable, net 1,499.9 1,567.6 1,308.2 Other receivables
56.5 63.6 47.1 Other current assets 132.4 137.2 91.0 Deferred tax
assets 5.7 4.5 2.7 Income taxes 5.3 1.8 10.7 Inventories 2,487.8
2,439.0 1,523.9
Total current assets 4,310.2
4,407.3 3,232.7 Non-current assets: Property, plant
and equipment, net 668.7 665.9 494.0 Goodwill 520.7 519.2 26.8
Intangible assets, net 445.9 447.1 — Other assets 141.1 140.0 93.5
Deferred tax assets 119.9 111.1 114.8 Retirement benefit asset 38.1
37.0 59.8
Total assets 6,244.6 6,327.6
4,021.6 Liabilities and Shareholders’ equity Current
liabilities: Loans and overdrafts 44.8 97.5 8.8 Accounts payable
256.5 277.7 163.1 Accrued expenses and other current liabilities
420.5 482.4 293.8 Deferred revenue 244.0 248.0 174.4 Deferred tax
liabilities 158.9 145.8 123.9 Income taxes 28.3 86.9 32.2
Total
current liabilities 1,153.0 1,338.3 796.2
Non-current liabilities: Long-term debt 1,356.2 1,363.8 — Other
liabilities 224.4 230.2 121.6 Deferred revenue 597.3 563.9 457.3
Deferred tax liabilities 21.8 21.0 2.7
Total liabilities
3,352.7 3,517.2 1,377.8 Shareholders’
equity: Common shares of $0.18 par value: authorized 500
shares, 80.2 shares outstanding (January 31, 2015: 80.3
outstanding; May 3, 2014: 80.2 outstanding) 15.7 15.7 15.7
Additional paid-in capital 265.2 265.2 258.8 Other reserves 0.4 0.4
0.4 Treasury shares at cost: 7.0 shares (January 31, 2015: 6.9
shares; May 3, 2014: 7.0 shares) (393.2 ) (370.0 ) (362.3 )
Retained earnings 3,238.1 3,135.7 2,895.0 Accumulated other
comprehensive loss (234.3 ) (236.6 ) (163.8 )
Total
shareholders’ equity 2,891.9 2,810.4
2,643.8 Total liabilities and shareholders’ equity
6,244.6 6,327.6 4,021.6
Condensed Consolidated Statements of
Cash Flows
(Unaudited)
13 weeks ended (in millions)
May 2, 2015 May 3, 2014 Cash flows from
operating activities: Net income 118.8 96.6 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 41.8 28.0 Amortization of unfavorable
leases and contracts (8.8 ) — Pension benefit — (0.6 ) Share-based
compensation 3.3 3.2 Deferred taxation 6.9 9.4 Excess tax benefit
from exercise of share awards (5.1 ) (7.7 ) Amortization of debt
discount and issuance costs 0.9 1.0 Other non-cash movements 2.2
(0.6 ) Changes in operating assets and liabilities: Decrease in
accounts receivable 67.7 66.2 Decrease (increase) in other
receivables and other assets 5.8 (1.7 ) (Increase) decrease in
other current assets (1.7 ) 0.7 Increase in inventories (43.7 )
(19.9 ) Decrease in accounts payable (19.0 ) (4.2 ) Decrease in
accrued expenses and other liabilities (71.1 ) (42.7 ) Increase in
deferred revenue 27.7 14.9 Decrease in income taxes payable (57.9 )
(68.0 ) Pension plan contributions (0.8 ) (1.1
)
Net cash provided by operating activities
67.0 73.5 Investing activities
Purchase of property, plant and equipment (42.9 ) (28.1 ) Purchase
of available-for-sale securities (1.4 ) — Proceeds from sale of
available-for-sale securities 3.5 —
Net cash used in investing activities
(40.8 ) (28.1 ) Financing
activities Dividends paid (14.4 ) (12.0 ) Proceeds from issuance of
common shares 0.1 1.0 Excess tax benefit from exercise of share
awards 5.1 7.7 Repayments of term loan (5.0 ) — Proceeds from
securitization facility 638.2 — Repayments of securitization
facility (638.2 ) — Payment of debt issuance costs — (3.0 )
Repurchase of common shares (19.1 ) (11.4 ) Net settlement of
equity based awards (8.7 ) (15.3 ) Principal payments under capital
lease obligations (0.3 ) — Repayment of short-term borrowings
(55.0 ) (10.5 )
Net cash used in financing
activities (97.3 )
(43.5 ) Cash and cash equivalents at beginning of
period 193.6 247.6 (Decrease) increase in cash and cash equivalents
(71.1 ) 1.9 Effect of exchange rate changes on cash and cash
equivalents 0.1 (0.4 ) Cash and cash equivalents at end of period
122.6 249.1
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Signet JewelersInvestors:James Grant, VP Investor Relations, +1
330-668-5412orMedia:David Bouffard, VP Corporate Affairs, +1
330-668-5369
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