TALBOTS INC

CIK:0000912263|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Apr. 28, 2012	Apr. 30, 2011
Net sales	$ 275,915	$ 301,310
Costs and expenses:
Cost of sales, buying and occupancy	175,338	193,965
Selling, general and administrative	92,569	99,811
Restructuring charges	2,364	2,265
Impairment of store assets		1,217
Merger-related costs		885
Operating income	5,644	3,167
Interest:
Interest expense	4,641	2,044
Interest income	8	16
Interest expense, net	4,633	2,028
Income before taxes	1,011	1,139
Income tax (benefit) expense	(175)	231
Income from continuing operations	1,186	908
Loss from discontinued operations	(93)	(169)
Net income	$ 1,093	$ 739
Basic earnings per share:
Continuing operations	$ 0.02	$ 0.01
Discontinued operations
Net earnings	$ 0.02	$ 0.01
Diluted earnings per share:
Continuing operations	$ 0.02	$ 0.01
Discontinued operations
Net earnings	$ 0.02	$ 0.01
Weighted average shares outstanding:
Basic	69,401	68,709
Diluted	69,713	69,276

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 28, 2012	Apr. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,093	$ 739
Loss from discontinued operations	(93)	(169)
Income from continuing operations	1,186	908
Adjustments to reconcile income from continuing operations to net cash used in operating activities:
Depreciation and amortization	11,118	13,893
Stock-based compensation	1,910	2,894
Amortization of debt issuance costs	606	549
Impairment of store assets		1,217
(Gain) loss on disposal of property and equipment	(45)	99
Deferred rent	(3,037)	(4,264)
Gift card breakage income	(1,404)	(165)
Changes in assets and liabilities:
Customer accounts receivable	(17,125)	(18,759)
Merchandise inventories	(1,383)	(18,921)
Deferred catalog costs	571	(1,379)
Prepaid and other current assets	3,692	(15,462)
Accounts payable	(25,311)	5,417
Accrued liabilities	928	(14,478)
Other assets	(182)	(170)
Other liabilities	(3,850)	(1,982)
Net cash used in operating activities	(32,326)	(50,603)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment	(6,900)	(9,697)
Proceeds from disposal of property and equipment	45
Net cash used in investing activities	(6,855)	(9,697)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on revolving credit facility	495,950	507,200
Payments on revolving credit facility	(489,476)	(445,916)
Change in trade payables financing, net	(21,771)
Borrowings on term loan	75,000
Payment of debt issuance costs	(5,858)
Proceeds from options exercised		1
Purchase of treasury stock	(567)	(2,174)
Net cash provided by financing activities	53,278	59,111
EFFECT OF EXCHANGE RATE CHANGES ON CASH	19	368
CASH FLOWS FROM OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS	(474)	(791)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	13,642	(1,612)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	8,739	10,181
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 22,381	$ 8,569

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Apr. 28, 2012	Jan. 28, 2012	Apr. 30, 2011
Current Assets:
Cash and cash equivalents	$ 22,381	$ 8,739	$ 8,569
Customer accounts receivable, net	159,046	141,902	164,282
Merchandise inventories	166,168	164,734	177,134
Deferred catalog costs	3,230	3,801	5,563
Prepaid and other current assets	22,563	26,234	48,265
Total current assets	373,388	345,410	403,813
Property and equipment, net	165,559	169,765	181,595
Goodwill	35,513	35,513	35,513
Trademarks	75,884	75,884	75,884
Other assets	24,093	17,610	18,970
Total Assets	674,437	644,182	715,775
Current Liabilities:
Accounts payable	74,596	99,272	97,790
Trade payables financing		21,771
Accrued liabilities	132,895	132,685	122,314
Revolving credit facility	122,924	116,450	86,800
Current portion of term loan	2,000
Total current liabilities	332,415	370,178	306,904
Term loan	73,000
Deferred rent under lease commitments	71,603	75,410	88,742
Deferred income taxes	28,456	28,456	28,456
Other liabilities	149,906	154,163	105,512
Commitments and contingencies
Stockholders' Equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 98,346,783 shares, 98,327,700 shares and 98,224,083 shares issued, respectively; and 70,289,134 shares, 70,466,307 shares and 70,713,766 shares outstanding, respectively	983	983	982
Additional paid-in capital	873,747	871,837	864,139
Retained deficit	(148,671)	(149,764)	(37,136)
Accumulated other comprehensive loss	(114,970)	(115,616)	(50,536)
Treasury stock, at cost; 28,057,649 shares, 27,861,393 shares and 27,510,317 shares, respectively	(592,032)	(591,465)	(591,288)
Total stockholders' equity	19,057	15,975	186,161
Total Liabilities and Stockholders' Equity	$ 674,437	$ 644,182	$ 715,775