SAKS INC

CIK:0000812900|SEC Filings

Earnings Per Share

6 Months Ended

Aug. 03, 2013

Earnings (Loss) Per Share [Abstract]

NOTE 4: EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share (“EPS”) is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed by adjusting: (i) the income available to common shareholders for the amount of interest expense recognized related to the convertible notes, and (ii) the weighted-average number of common shares outstanding to assume conversion of our convertible notes and the issuance of all other potential common shares, if the effect is dilutive. The following table sets forth the computations of basic and diluted EPS for the three and six months ended August 3, 2013 and July 28, 2012:

		Three Months Ended
		August 3, 2013					July 28, 2012
					Per					Per
		Net			Share		Net			Share
		Loss		Shares	Amount		Loss		Shares	Amount
Basic EPS		$	(19,580)	145,504	$	(0.13)	$	(12,297)	151,231	$	(0.08)
	Effect of dilutive potential common shares		―	―		―		―	―		―
Diluted EPS		$	(19,580)	145,504	$	(0.13)	$	(12,297)	151,231	$	(0.08)

		Six Months Ended
		August 3, 2013					July 28, 2012
					Per					Per
		Net			Share		Net			Share
		Income		Shares	Amount		Income		Shares	Amount
Basic EPS		$	415	145,334	$	0.00	$	19,848	152,955	$	0.13
	Effect of dilutive potential common shares		―	2,321		―		―	2,981		―
Diluted EPS		$	415	147,655	$	0.00	$	19,848	155,936	$	0.13

For the three and six months ended August 3, 2013, the computation of diluted EPS assumes that our 7.5% convertible notes would be settled in shares of common stock for the entire period. For the six months ended August 3, 2013, the computation of diluted EPS assumes that our 2.0% convertible notes would be settled in shares of common stock through March 15, 2013, the date we announced the redemption of our 2.0% convertible notes, and that we would have settled any conversions in cash. For the three and six months ended July 28, 2012, the computations of diluted EPS assume that both our 2.0% and 7.5% convertible notes would be settled in shares of common stock for the entire period.

The following table presents potentially dilutive securities excluded from the computations of diluted EPS:

		Three Months Ended				Six Months Ended
		August 3,		July 28,		August 3,		July 28,
		2013		2012		2013		2012
Stock options¹		1,397	²	1,591	²	495	⁴	1,258	⁴
Restricted stock and performance share awards¹		4,714	²	5,183	²	421	³	—
Contingently convertible securities:
	7.5% Convertible Notes	16,470	²	21,670	²	16,470	⁵	21,670	⁵
	2.0% Convertible Notes	n/a		19,219	²	4,330	⁵	19,219	⁵

The amounts represent the number of instruments outstanding at the end of the period. Application of the treasury stock method would reduce this amount if they had a dilutive effect and were included in the computation of diluted EPS.
Potentially dilutive securities excluded from the computation of diluted EPS because the effect would have been anti-dilutive since we recognized a net loss for the period.
Potentially dilutive securities excluded from the computation of diluted EPS because the performance criteria were not met, assuming that the end of the period was the end of the contingency period.
Potentially dilutive securities excluded from the computation of diluted EPS because the exercise price of the stock options exceeded the average market price of our common stock during the period.
Potentially dilutive securities excluded from the computation of diluted EPS because the effect would have been anti-dilutive.

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Aug. 03, 2013	Jul. 28, 2012
OPERATING ACTIVITIES
Net income	$ 415	$ 19,848
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on extinguishment of debt	13,012	0
Depreciation and amortization	60,926	59,072
Stock-based compensation	9,084	8,390
Amortization of discount on convertible notes	3,996	6,910
Deferred income taxes	4,204	5,894
Impairments and dispositions	(2,674)	4,356
Excess tax benefits from stock-based compensation	(1,842)	(8,949)
Gain on sale of property and equipment	(626)	(180)
Other non-cash items	4,085	1,415
Changes in operating assets and liabilities:
Merchandise inventories	(9,612)	(27,200)
Other current assets	(11,555)	(8,654)
Accounts payable and accrued liabilities	(31,096)	(5,217)
Other operating assets and liabilities	22,801	6,457
NET CASH PROVIDED BY OPERATING ACTIVITIES	61,118	62,142
INVESTING ACTIVITIES
Purchases of property and equipment	(99,043)	(49,768)
Collections from note receivable	1,585	0
Proceeds from the sale of property and equipment	626	180
NET CASH USED IN INVESTING ACTIVITIES	(96,832)	(49,588)
FINANCING ACTIVITIES
Proceeds from revolving credit facility	200,000	0
Payments of long-term debt	(229,773)	0
Payments of capital lease obligations	(4,864)	(3,906)
Repurchase of common stock	(254)	(79,006)
Payment of financing fees	(1,683)	0
Excess tax benefits from stock-based compensation	1,842	8,949
Proceeds from stock options exercised	133	214
NET CASH USED IN FINANCING ACTIVITIES	(34,599)	(73,749)
DECREASE IN CASH AND CASH EQUIVALENTS	(70,313)	(61,195)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	80,409	200,176
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 10,096	$ 138,981

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Aug. 03, 2013	Feb. 02, 2013	Jul. 28, 2012
ASSETS
Cash and cash equivalents	$ 10,096	$ 80,409	$ 138,981
Merchandise inventories	832,511	822,899	749,087
Other current assets	119,817	99,815	86,852
Deferred income taxes, net	76,899	78,999	99,407
Total current assets	1,039,323	1,082,122	1,074,327
Property and equipment, net	931,865	875,202	872,070
Deferred income taxes, net	119,818	121,868	121,602
Other assets	10,825	11,055	24,816
TOTAL ASSETS	2,101,831	2,090,247	2,092,815
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade accounts payable	146,429	144,497	132,990
Accrued expenses	259,225	247,040	222,214
Accrued compensation and related items	38,048	54,811	41,779
Current portion of long-term debt	102,049	98,989	8,905
Total current liabilities	545,751	545,337	405,888
Long-term debt	239,600	260,603	374,348
Other long-term liabilities	161,376	134,458	161,389
Commitments and contingencies
SHAREHOLDERS' EQUITY
Preferred stock, $1.00 par value - 10,000 shares authorized; no shares issued and outstanding	0	0	0
Common stock, $0.10 par value - 500,000 shares authorized; 150,182, 149,660, and 152,677 shares issued and outstanding as of August 3, 2013, February 2, 2013, and July 28, 2012, respectively.	15,019	14,966	15,267
Additional paid-in capital	1,174,901	1,172,581	1,220,634
Accumulated other comprehensive loss	(47,407)	(49,874)	(53,853)
Retained earnings (accumulated deficit)	12,591	12,176	(30,858)
Total shareholders' equity	1,155,104	1,149,849	1,151,190
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 2,101,831	$ 2,090,247	$ 2,092,815