Nebraska
|
47-0366193
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|
2407
West 24th Street, Kearney, Nebraska
|
68845-4915
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Title
of class
|
Name
of Each Exchange on Which Registered
|
|
Common
Stock, $.01 par value
|
New
York Stock Exchange
|
Page
|
||
Part
I
|
||
Item
1.
|
Business
|
4
|
Item
1A.
|
Risk
Factors
|
12
|
Item
1B.
|
Unresolved
Staff Comments
|
13
|
Item
2.
|
Properties
|
14
|
Item
3.
|
Legal
Proceedings
|
14
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
14
|
Part
II
|
||
Item
5.
|
Market
for Registrant's Common Equity, Related Shareholder Matters and
Issuer
Purchases of Equity Securities
|
14
|
Item
6.
|
Selected
Financial Data
|
16
|
Item
7.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
17
|
Item
7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
24
|
Item
8.
|
Financial
Statements and Supplementary Data
|
25
|
Item
9.
|
Changes
In and Disagreements With Accountants on Accounting and Financial
Disclosure
|
40
|
Item
9A.
|
Controls
and Procedures
|
40
|
Item
9B.
|
Other
Information
|
44
|
Part
III
|
||
Item
10.
|
Directors
and Executive Officers of the Registrant
|
44
|
Item
11.
|
Executive
Compensation
|
44
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
44
|
Item
13.
|
Certain
Relationships and Related Transactions
|
44
|
Item
14.
|
Principal
Accountant Fees and Services
|
44
|
Part
IV
|
||
Item
15.
|
Exhibits
and Financial Statements Schedules
|
44
|
Percentage
of Net Sales
|
||||||||||
Fiscal
2005
|
Fiscal
2004
|
Fiscal
2003
|
||||||||
Denims
|
42.7
|
%
|
40.3
|
%
|
36.2
|
%
|
||||
Tops
(including sweaters)
|
29.8
|
31.8
|
32.1
|
|||||||
Accessories
|
10.2
|
11.4
|
11.4
|
|||||||
Footwear
|
8.1
|
7.6
|
8.9
|
|||||||
Outerwear
|
3.5
|
2.5
|
2.9
|
|||||||
Sportswear/fashions
|
3.1
|
4.2
|
4.5
|
|||||||
Casual
bottoms
|
2.5
|
2.1
|
3.8
|
|||||||
Other
|
0.1
|
0.1
|
0.2
|
|||||||
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
Location
of
Stores
|
||||||||||
State
|
Number
of Stores
|
State
|
Number
of Stores
|
State
|
Number
of Stores
|
|||||
Alabama
|
5
|
Louisiana
|
8
|
Oregon
|
2
|
|||||
Arizona
|
8
|
Michigan
|
17
|
Pennsylvania
|
5
|
|||||
Arkansas
|
5
|
Minnesota
|
12
|
South
Carolina
|
1
|
|||||
California
|
12
|
Mississippi
|
5
|
South
Dakota
|
3
|
|||||
Colorado
|
12
|
Missouri
|
14
|
Tennessee
|
10
|
|||||
Florida
|
6
|
Montana
|
5
|
Texas
|
37
|
|||||
Georgia
|
4
|
Nebraska
|
15
|
Utah
|
10
|
|||||
Idaho
|
5
|
Nevada
|
2
|
Virginia
|
2
|
|||||
Illinois
|
17
|
New
Mexico
|
4
|
Washington
|
10
|
|||||
Indiana
|
12
|
North
Carolina
|
8
|
West
Virginia
|
2
|
|||||
Iowa
|
19
|
North
Dakota
|
3
|
Wisconsin
|
13
|
|||||
Kansas
|
16
|
Ohio
|
13
|
Wyoming
|
1
|
|||||
Kentucky
|
5
|
Oklahoma
|
13
|
Total
|
341
|
Total
Number of Stores Per Year
|
||||||||
Fiscal
Year
|
Open
at start of
year
|
Opened
in Current Year
|
Closed
in Current Year
|
Total
|
||||
1996
|
164
|
17
|
-
|
181
|
||||
1997
|
181
|
19
|
1
|
199
|
||||
1998
|
199
|
24
|
1
|
222
|
||||
1999
|
222
|
27
|
1
|
248
|
||||
2000
|
248
|
28
|
2
|
274
|
||||
2001
|
274
|
24
|
3
|
295
|
||||
2002
|
295
|
11
|
2
|
304
|
||||
2003
|
304
|
16
|
4
|
316
|
||||
2004
|
316
|
13
|
2
|
327
|
||||
2005
|
327
|
15
|
4
|
338
|
· |
anticipating
and responding timely to changing customer demands and preferences;
|
· |
effectively
marketing both branded and private label merchandise to consumers
in
several diverse market segments and maintaining favorable brand
recognition;
|
· |
providing
unique, high-quality merchandise in styles, colors and sizes that
appeal
to consumers;
|
· |
sourcing
merchandise efficiently;
|
· |
competitively
pricing merchandise and creating customer perception of
value.
|
Year
|
Number
of expiring leases
|
|||
2007
|
58
|
|||
2008
|
36
|
|||
2009
|
31
|
|||
2010
|
53
|
|||
2011
|
41
|
|||
2012
|
28
|
|||
2013
|
22
|
|||
2014
and later
|
72
|
|||
Total
|
341
|
Total
Number
of
Shares
Purchased
|
Average
Price
Paid
Per
Share
|
Total
Number of
Shares
Purchased
as
Part of Publicly
Announced
Plans
|
Approximate
Dollar
Value of Shares that May Yet Be Purchased
Under
Publicly
Announced
Plans
|
||||||||||
Oct.
30, to Nov. 26, 2005
|
53,300
|
$ | 34.08 |
53,300
|
$
|
15,061,932
|
|||||||
Nov.
27, to Dec. 31, 2005
|
205,000
|
$ | 32.76 |
205,000
|
$ | 7,785,960 | |||||||
Jan.
1, 2006 to Jan. 28, 2006
|
51,900
|
$ | 33.27 |
51,900
|
$ | 6,471,617 | |||||||
310,200
|
$ | 33.07 |
310,200
|
SELECTED
FINANCIAL DATA
(Amounts
in Thousands Except Share, Per Share Amounts and Selected Operating
Data)
|
||||||||||||||||
Fiscal
Years Ended
|
||||||||||||||||
January
28,
2006
|
January
29,
2005
|
January
31,
2004
|
February
1,
2003
|
February
2,
2002
|
||||||||||||
Income
Statement Data
|
||||||||||||||||
Net
sales
|
$
|
501,101
|
$
|
470,937
|
$
|
422,820
|
$
|
401,060
|
$
|
387,638
|
||||||
Cost
of sales (including buying, distribution and occupancy
costs)
|
307,063
|
299,958
|
280,004
|
269,516
|
259,994
|
|||||||||||
Gross
profit
|
194,038
|
170,979
|
142,816
|
131,544
|
127,644
|
|||||||||||
Selling
expenses
|
100,148
|
89,008
|
79,668
|
74,754
|
69,786
|
|||||||||||
General
and administrative expenses
|
17,568
|
18,599
|
15,045
|
10,979
|
10,939
|
|||||||||||
Income
from operations
|
76,322
|
63,372
|
48,103
|
45,811
|
46,919
|
|||||||||||
Other
income, net
|
6,123
|
4,470
|
4,688
|
4,698
|
4,820
|
|||||||||||
Income
before income taxes
|
82,445
|
67,842
|
52,791
|
50,509
|
51,739
|
|||||||||||
Provision
for income taxes
|
30,539
|
24,613
|
19,112
|
18,434
|
19,097
|
|||||||||||
Net
income
|
$
|
51,906
|
$
|
43,229
|
$
|
33,679
|
$
|
32,075
|
$
|
32,642
|
||||||
Basic
earnings per share
|
$
|
2.64
|
$
|
2.02
|
$
|
1.60
|
$
|
1.52
|
$
|
1.57
|
||||||
Diluted
earnings per share
|
$
|
2.54
|
$
|
1.94
|
$
|
1.56
|
$
|
1.47
|
$
|
1.51
|
||||||
Dividends
declared per share (a)
|
$
|
0.61
|
$
|
0.44
|
$
|
0.20
|
$
|
0.00
|
$
|
0.00
|
||||||
Selected
Operating Data
|
||||||||||||||||
Stores
open at end of period
|
338
|
327
|
316
|
304
|
295
|
|||||||||||
Average
sales per square foot
|
$
|
298
|
$
|
291
|
$
|
274
|
$
|
274
|
$
|
279
|
||||||
Average
sales per store (000's)
|
$
|
1,474
|
$
|
1,454
|
$
|
1,350
|
$
|
1,334
|
$
|
1,352
|
||||||
Comparable
store sales change (b)
|
1.4
|
%
|
6.3
|
%
|
1.1
|
%
|
-0.5
|
%
|
-6.2
|
%
|
||||||
Balance
Sheet Data (c) (d)
|
||||||||||||||||
Working
capital
|
$
|
193,428
|
$
|
219,231
|
$
|
174,188
|
$
|
142,840
|
$
|
147,675
|
||||||
Long-term
investments
|
$
|
41,654
|
$
|
54,395
|
$
|
59,137
|
$
|
56,248
|
$
|
30,510
|
||||||
Total
assets
|
$
|
374,266
|
$
|
405,543
|
$
|
356,222
|
$
|
318,011
|
$
|
282,871
|
||||||
Long-term
debt
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Stockholders'
equity
|
$
|
299,793
|
$
|
332,928
|
$
|
293,845
|
$
|
261,027
|
$
|
230,046
|
Percentage
of Net Sales For Fiscal Years
Ended |
Percentage
Increase (Decrease)
Fiscal
Year
|
|||||||||||||||
January
28,
2006
|
January
29,
2005
|
January
31,
2004
|
2004
to 2005
|
2003
to 2004
|
||||||||||||
Income
Statement Data
|
||||||||||||||||
Net
sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
6.4
|
%
|
11.4
|
%
|
||||||
Cost
of sales (including buying, distribution and occupancy
costs)
|
61.3
|
%
|
63.7
|
%
|
66.2
|
%
|
2.4
|
%
|
7.1
|
%
|
||||||
Gross
profit
|
38.7
|
%
|
36.3
|
%
|
33.8
|
%
|
13.5
|
%
|
19.7
|
%
|
||||||
Selling
expenses
|
20.0
|
%
|
18.9
|
%
|
18.8
|
%
|
12.5
|
%
|
11.7
|
%
|
||||||
General
and administrative expenses
|
3.5
|
%
|
3.9
|
%
|
3.6
|
%
|
-5.5
|
%
|
23.6
|
%
|
||||||
Income
from operations
|
15.2
|
%
|
13.5
|
%
|
11.4
|
%
|
20.4
|
%
|
31.7
|
%
|
||||||
Other
income
|
1.3
|
%
|
0.9
|
%
|
1.1
|
%
|
37.0
|
%
|
-4.6
|
%
|
||||||
Income
before income taxes
|
16.5
|
%
|
14.4
|
%
|
12.5
|
%
|
21.5
|
%
|
28.5
|
%
|
||||||
Provision
for income taxes
|
6.1
|
%
|
5.2
|
%
|
4.5
|
%
|
24.1
|
%
|
28.8
|
%
|
||||||
Net
income
|
10.4
|
%
|
9.2
|
%
|
8.0
|
%
|
20.1
|
%
|
28.4
|
%
|
1. |
Revenue
Recognition.
Sales are recorded upon the purchase of merchandise by customers.
The
Company accounts for layaway sales in accordance with SAB No. 101,
recognizing revenue from sales made under its layaway program upon
delivery of the merchandise to the customer. Revenue is not recorded
when
gift cards and gift certificates are sold, but rather when a card
or
certificate is redeemed for merchandise. A current liability for
unredeemed gift certificates is recorded at the time of purchase.
The
Company establishes a liability for estimated merchandise returns
based
upon historical average sales return percentage, applying the percentage
using the assumption that merchandise returns will occur within nine
days
following the sale. Customer returns could potentially exceed historical
average and returns may occur after the time period reserved for,
thus
reducing future net sales results and potentially reducing future
net
earnings. The accrued liability for reserve for sales returns was
$308,000
and $277,000 at January 28, 2006 and January 29, 2005, respectively.
The
liability recorded for unredeemed gift cards and gift certificates
was
$5.5 million and $4.7 million as of January 28, 2006 and January
29, 2005,
respectively.
|
2. |
Inventory.
Inventory is valued at the lower of cost or market. Cost is determined
using an average cost method that approximates the first-in, first-out
(FIFO) method. Management makes adjustments to inventory and cost
of goods
sold, based upon estimates, to reserve for merchandise obsolescence
and
markdowns that could affect market value, based on assumptions using
calculations applied to current inventory levels within each of four
different markdown levels. Management also reviews the levels of
inventory
in each markdown group and the overall aging of the inventory versus
the
estimated future demand for such product and the current market
conditions. Such judgments could vary significantly from actual results,
either favorably or unfavorably, due to fluctuations in future economic
conditions, industry trends, consumer demand and the competitive
retail
environment. Such changes in market conditions could negatively impact
the
sale of markdown inventory causing further markdowns or inventory
obsolescence, resulting in increased cost of goods sold from write-offs
and reducing the Company’s net earnings. The liability recorded as a
reserve for markdowns and/or obsolescence was $6.5 million and $5.0
million as of January 28, 2006 and January 29, 2005, respectively.
We are
not aware of any events, conditions or changes in demand or price
that
would indicate that our inventory valuation may not be materially
accurate
at this time.
|
3. |
Income
Taxes.
The Company records a deferred tax asset and liability for expected
future
tax consequences resulting from temporary differences between financial
reporting and tax bases of assets and liabilities. The Company considers
future taxable income and ongoing tax planning in assessing the
value
of its deferred tax assets. If the Company determines that it is
more than
likely that these assets will not be realized, the Company would
reduce
the value of these assets to their expected realizable value, thereby
decreasing net income. Estimating the value of these assets is based
upon
the Company’s judgment. If the Company subsequently determined that the
deferred tax assets, which had been written down, would be realized
in the
future, such value would be increased. Adjustment would be made to
increase net income in the period such determination was
made.
|
4. |
Operating
Leases.
The Company leases retail stores under operating leases. Most lease
agreements contain tenant improvement allowances, rent holidays,
rent
escalation clauses and/or contingent rent provisions. For purposes
of
recognizing lease incentives and minimum rental expenses on a
straight-line basis over the terms of the leases, the Company uses
the
date of initial possession to begin amortization, which is generally
when
the Company enters the space and begins to make improvements in
preparation of intended use. For tenant improvement allowances and
rent
holidays, the Company records a deferred rent liability on the balance
sheets and amortizes the deferred rent over the terms of the leases
as
reductions to rent expense on the statements of
income.
|
Payments
Due by Period
|
||||||||||||||||
Contractual
obligations (dollar amounts in thousands)
|
Total
|
Less
than 1 year
|
1-3
years
|
4-5
years
|
After
5 years
|
|||||||||||
Long
term debt
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Purchase
obligations
|
$
|
535
|
$
|
535
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Deferred
compensation
|
$
|
2,518
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,518
|
||||||
Operating
leases
|
$
|
190,180
|
$
|
33,161
|
$
|
60,125
|
$
|
46,604
|
$
|
50,290
|
||||||
Total
contractual obligations
|
$
|
193,233
|
$
|
33,696
|
$
|
60,125
|
$
|
46,604
|
$
|
52,808
|
|
Amount
of Commitment Expiration Per Period
|
|||||||||||||||
Other
commercial commitments (dollar amounts in thousands)
|
Total
Amounts Committed
|
Less
than 1 year
|
1-3
years
|
4-5
years
|
After
5 years
|
|||||||||||
Lines
of credit
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Total
commercial commitments
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
January
28,
2006
(1)
|
January
29,
2005
(1)
|
||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash
and cash equivalents
|
$
|
23,438
|
$
|
16,196
|
|||
Short-term
investments (Note B)
|
134,672
|
172,861
|
|||||
Accounts
receivable, net of allowance of $94 and $113, respectively
|
4,824
|
1,887
|
|||||
Inventory
|
68,731
|
68,330
|
|||||
Prepaid
expenses and other assets (Note E)
|
6,894
|
5,693
|
|||||
Total
current assets
|
238,559
|
264,967
|
|||||
PROPERTY
AND EQUIPMENT (Note C):
|
199,618
|
179,056
|
|||||
Less
accumulated depreciation and amortization
|
(108,222
|
)
|
(95,514
|
)
|
|||
91,396
|
83,542
|
||||||
LONG-TERM
INVESTMENTS (Note B)
|
41,654
|
54,395
|
|||||
OTHER
ASSETS (Notes E and F)
|
2,657
|
2,639
|
|||||
$
|
374,266
|
$
|
405,543
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
CURRENT
LIABILITIES:
|
|||||||
Accounts
payable
|
$
|
11,119
|
$
|
12,665
|
|||
Accrued
employee compensation
|
20,096
|
18,467
|
|||||
Accrued
store operating expenses
|
3,725
|
4,236
|
|||||
Gift
certificates redeemable
|
5,495
|
4,654
|
|||||
Income
taxes payable
|
4,696
|
5,714
|
|||||
Total
current liabilities
|
45,131
|
45,736
|
|||||
DEFERRED
COMPENSATION (Note H)
|
2,518
|
1,799
|
|||||
DEFERRED
RENT LIABILITY (Note A)
|
26,824
|
25,080
|
|||||
Total
liabilities
|
74,473
|
72,615
|
|||||
COMMITMENTS
(Notes D and G)
|
|||||||
STOCKHOLDERS’
EQUITY (Note I):
|
|||||||
Common
stock, authorized 100,000,000 shares of $.01 par value; issued
and
|
|||||||
outstanding;
19,339,153 and 21,685,008 shares, respectively
|
193
|
217
|
|||||
Additional
paid-in capital
|
39,651
|
26,857
|
|||||
Retained
earnings
|
261,948
|
305,854
|
|||||
Unearned
compensation - restricted stock
|
(1,999
|
)
|
-
|
||||
Total
stockholders’ equity
|
299,793
|
332,928
|
|||||
$
|
374,266
|
$
|
405,543
|
Fiscal
Years Ended
|
||||||||||
January
28,
2006
|
January
29,
2005
|
January
31,
2004
|
||||||||
SALES,
Net of returns and allowances of
|
||||||||||
$36,936,
$35,028 and $32,364, respectively
|
$
|
501,101
|
$
|
470,937
|
$
|
422,820
|
||||
COST
OF SALES (Including buying, distribution
|
||||||||||
and
occupancy costs)
|
307,063
|
299,958
|
280,004
|
|||||||
Gross
profit
|
194,038
|
170,979
|
142,816
|
|||||||
OPERATING
EXPENSES:
|
||||||||||
Selling
|
100,148
|
89,008
|
79,668
|
|||||||
General
and administrative
|
17,568
|
18,599
|
15,045
|
|||||||
117,716
|
107,607
|
94,713
|
||||||||
INCOME
FROM OPERATIONS
|
76,322
|
63,372
|
48,103
|
|||||||
OTHER
INCOME, Net
|
6,123
|
4,470
|
4,688
|
|||||||
INCOME
BEFORE INCOME TAXES
|
82,445
|
67,842
|
52,791
|
|||||||
PROVISION
FOR INCOME TAXES (Note E)
|
30,539
|
24,613
|
19,112
|
|||||||
NET
INCOME
|
$
|
51,906
|
$
|
43,229
|
$
|
33,679
|
||||
EARNINGS
PER SHARE (Note J):
|
||||||||||
Basic
|
$
|
2.64
|
$
|
2.02
|
$
|
1.60
|
||||
Diluted
|
$
|
2.54
|
$
|
1.94
|
$
|
1.56
|
Additional
|
||||||||||||||||
Common
|
Paid-in
|
Retained
|
Unearned
|
|||||||||||||
Stock
|
Capital
|
Earnings
|
Compensation
|
Total
|
||||||||||||
BALANCE,
February 2, 2003
|
$
|
210
|
$
|
18,089
|
$
|
242,728
|
$
|
-
|
$
|
261,027
|
||||||
Net
income
|
-
|
-
|
33,679
|
-
|
33,679
|
|||||||||||
Dividends
paid on common stock,
|
||||||||||||||||
$.10
per share
|
-
|
-
|
(4,282
|
)
|
-
|
(4,282
|
)
|
|||||||||
Common
stock (421,485 shares)
|
||||||||||||||||
issued
on exercise of stock options
|
4
|
2,505
|
-
|
-
|
2,509
|
|||||||||||
Restricted
stock grants (169,840 shares)
|
2
|
4,373
|
-
|
(4,375
|
)
|
-
|
||||||||||
Amortization
of restricted stock grant
|
-
|
-
|
-
|
1,635
|
1,635
|
|||||||||||
Common
stock (152,300 shares)
|
||||||||||||||||
purchased
and retired
|
(1
|
)
|
(2,907
|
)
|
-
|
-
|
(2,908
|
)
|
||||||||
Income
tax benefit related to exercise of
|
||||||||||||||||
employee
stock options
|
-
|
2,185
|
-
|
-
|
2,185
|
|||||||||||
BALANCE,
January 31, 2004
|
215
|
24,245
|
272,125
|
(2,740
|
)
|
293,845
|
||||||||||
Net
income
|
-
|
-
|
43,229
|
-
|
43,229
|
|||||||||||
Dividends
paid on common stock, ($.10 per
|
||||||||||||||||
share
in the 1st and 2nd quarters and $.12
|
||||||||||||||||
per
share in the 3rd and 4th quarters)
|
-
|
-
|
(9,500
|
)
|
-
|
(9,500
|
)
|
|||||||||
Common
stock (336,108 shares)
|
||||||||||||||||
issued
on exercise of stock options
|
3
|
4,297
|
-
|
-
|
4,300
|
|||||||||||
Amortization
of restricted stock grant
|
-
|
-
|
-
|
2,724
|
2,724
|
|||||||||||
Forfeiture
of restricted stock (3,959 shares)
|
-
|
(117
|
)
|
-
|
16
|
(101
|
)
|
|||||||||
Common
stock (130,700 shares)
|
||||||||||||||||
purchased
and retired
|
(1
|
)
|
(3,442
|
)
|
-
|
-
|
(3,443
|
)
|
||||||||
Income
tax benefit related to exercise of
|
||||||||||||||||
employee
stock options
|
-
|
1,874
|
-
|
-
|
1,874
|
|||||||||||
BALANCE,
January 29, 2005
|
217
|
26,857
|
305,854
|
-
|
332,928
|
|||||||||||
Net
income
|
-
|
-
|
51,906
|
-
|
51,906
|
|||||||||||
Dividends
paid on common stock, ($.12 per
|
||||||||||||||||
share
in the 1st quarter, $.15 per share in
|
||||||||||||||||
the
2nd quarter and $.17 per share in the
|
||||||||||||||||
3rd
and 4th quarters)
|
-
|
-
|
(11,808
|
)
|
-
|
(11,808
|
)
|
|||||||||
Common
stock (905,720 shares)
|
||||||||||||||||
issued
on exercise of stock options
|
9
|
12,486
|
-
|
-
|
12,495
|
|||||||||||
Restricted
stock grants (77,500 shares)
|
-
|
2,666
|
-
|
(2,666
|
)
|
-
|
||||||||||
Amortization
of restricted stock grant
|
-
|
-
|
-
|
667
|
667
|
|||||||||||
Common
stock (3,329,075 shares)
|
||||||||||||||||
purchased
and retired
|
(33
|
)
|
(10,898
|
)
|
(84,004
|
)
|
-
|
(94,935
|
)
|
|||||||
Income
tax benefit related to exercise of
|
||||||||||||||||
employee
stock options
|
-
|
8,540
|
-
|
-
|
8,540
|
|||||||||||
BALANCE,
January 28, 2006
|
$
|
193
|
$
|
39,651
|
$
|
261,948
|
$
|
(1,999
|
)
|
$
|
299,793
|
Fiscal
Years Ended
|
||||||||||
January
28,
|
January
29,
|
January
31,
|
||||||||
2006
(1)
|
2005
(1)
|
2004
(1)
|
||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||
Net
income
|
$
|
51,906
|
$
|
43,229
|
$
|
33,679
|
||||
Adjustments
to reconcile net income to net cash flows
|
||||||||||
from
operating activities:
|
||||||||||
Depreciation
and amortization
|
17,613
|
16,353
|
15,956
|
|||||||
Amortization
of unearned compensation - restricted stock
|
667
|
2,724
|
1,635
|
|||||||
Deferred
income taxes
|
(973
|
)
|
(1,184
|
)
|
1,813
|
|||||
Income
tax benefit from employee stock option exercises
|
8,540
|
1,874
|
2,185
|
|||||||
Other
|
114
|
531
|
773
|
|||||||
Changes
in operating assets and liabilities:
|
||||||||||
Accounts
receivable
|
(2,937
|
)
|
1,698
|
(2,195
|
)
|
|||||
Inventory
|
(401
|
)
|
(7,174
|
)
|
(1,115
|
)
|
||||
Prepaid
expenses
|
(254
|
)
|
4,291
|
(256
|
)
|
|||||
Accounts
payable
|
(1,546
|
)
|
(1,542
|
)
|
889
|
|||||
Accrued
employee compensation
|
1,629
|
6,577
|
1,564
|
|||||||
Accrued
store operating expenses
|
(511
|
)
|
403
|
671
|
||||||
Gift
certificates redeemable
|
841
|
876
|
300
|
|||||||
Long-term
liabilities and deferred compensation
|
2,463
|
970
|
2,175
|
|||||||
Income
taxes payable
|
(1,018
|
)
|
2,954
|
(206
|
)
|
|||||
Net
cash flows from operating activities
|
76,133
|
72,580
|
57,868
|
|||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||
Purchase
of property and equipment
|
(25,625
|
)
|
(16,637
|
)
|
(20,237
|
)
|
||||
Proceeds
from sale of property and equipment
|
44
|
13
|
22
|
|||||||
Decrease
in other assets
|
8
|
170
|
23
|
|||||||
Purchases
of investments
|
(115,126
|
)
|
(133,432
|
)
|
(142,242
|
)
|
||||
Proceeds
from sales/maturities of investments
|
166,056
|
95,755
|
106,560
|
|||||||
Net
cash flows from investing activities
|
25,357
|
(54,131
|
)
|
(55,874
|
)
|
|||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||
Proceeds
from the exercise of stock options
|
12,495
|
4,300
|
2,509
|
|||||||
Purchases
of common stock
|
(94,935
|
)
|
(3,443
|
)
|
(2,908
|
)
|
||||
Payment
of dividends
|
(11,808
|
)
|
(9,500
|
)
|
(4,282
|
)
|
||||
Net
cash flows from financing activities
|
(94,248
|
)
|
(8,643
|
)
|
(4,681
|
)
|
||||
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
7,242
|
9,806
|
(2,687
|
)
|
||||||
CASH
AND CASH EQUIVALENTS, Beginning of year
|
16,196
|
6,390
|
9,077
|
|||||||
CASH
AND CASH EQUIVALENTS, End of year
|
$
|
23,438
|
$
|
16,196
|
$
|
6,390
|
Fiscal
Year
|
||||||||||
2005
|
2004
|
2003
|
||||||||
Net
income, as reported
|
$
|
51,906
|
$
|
43,229
|
$
|
33,679
|
||||
Add:
Stock-based employee compensation expense
|
||||||||||
included
in reported net income, net of tax effects
|
||||||||||
of
$250, $1,074 and $598, respectively
|
417
|
1,650
|
1,037
|
|||||||
Deduct:
Total stock-based employee compensation expense
|
||||||||||
determined
under fair value based method for all awards,
|
||||||||||
net
of tax effects of $1,686, $2,741 and $2,244, respectively
|
(2,810
|
)
|
(4,568
|
)
|
(3,740
|
)
|
||||
Pro
forma net income
|
$
|
49,513
|
$
|
40,311
|
$
|
30,976
|
||||
Earnings
per share:
|
||||||||||
Basic
- as reported
|
$
|
2.64
|
$
|
2.02
|
$
|
1.60
|
||||
Basic
- pro forma
|
$
|
2.52
|
$
|
1.88
|
$
|
1.47
|
||||
Diluted
- as reported
|
$
|
2.54
|
$
|
1.94
|
$
|
1.56
|
||||
Diluted
- pro forma
|
$
|
2.42
|
$
|
1.81
|
$
|
1.43
|
Gross
|
Gross
|
Estimated
|
|||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
||||||||||
Cost
|
Gains
|
Losses
|
Value
|
||||||||||
Available-for-Sale
Securities:
|
|||||||||||||
Auction
rate securities
|
$
|
106,277
|
$
|
-
|
$
|
-
|
$
|
106,277
|
|||||
Held-to-Maturity
Securities:
|
|||||||||||||
State
and municipal bonds
|
$
|
50,024
|
$
|
117
|
$
|
(427
|
)
|
$
|
49,714
|
||||
U.S.
corporate bonds
|
3,500
|
193
|
3,693
|
||||||||||
Certificates
of deposit
|
599
|
-
|
(9
|
)
|
590
|
||||||||
U.S.
treasuries
|
13,408
|
12
|
(165
|
)
|
13,255
|
||||||||
$
|
67,531
|
$
|
322
|
$
|
(601
|
)
|
$
|
67,252
|
|||||
Trading
Securities:
|
|||||||||||||
Mutual
funds
|
$
|
2,075
|
$
|
453
|
$
|
(10
|
)
|
$
|
2,518
|
Gross
|
Gross
|
Estimated
|
|||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
||||||||||
Cost
|
Gains
|
Losses
|
Value
|
||||||||||
Available-for-Sale
Securities:
|
|||||||||||||
Auction
rate securities
|
$
|
148,095
|
$
|
-
|
$
|
-
|
$
|
148,095
|
|||||
Held-to-Maturity
Securities:
|
|||||||||||||
State
and municipal bonds
|
$
|
62,759
|
$
|
425
|
$
|
(310
|
)
|
$
|
62,874
|
||||
U.S.
corporate bonds
|
3,750
|
98
|
(11
|
)
|
3,837
|
||||||||
Certificates
of deposit
|
499
|
-
|
(5
|
)
|
494
|