-
Net Sales
$669 Million , Up 5% -
Earnings Per Share
$0.99 , Up 71%; Adjusted Earnings Per Share$1.02 , Up 52%
“We are reporting a record level of sales and earnings in our third
quarter. These results were driven by the growth of our
direct-to-consumer businesses, higher sales of our Carter's and OshKosh
B'gosh branded products in international markets, and an improvement
in product costs,” said
Third Quarter of Fiscal 2012 compared to Third Quarter of Fiscal 2011
Consolidated net sales increased
Operating income in the third quarter of fiscal 2012 was
Net income increased
A reconciliation of income as reported under accounting principles
generally accepted in
Business Segment Results
Carter’s Segments
Carter’s retail segment sales increased
Carter’s wholesale segment sales fell
OshKosh B’gosh Segments
OshKosh retail segment sales decreased
OshKosh wholesale segment sales increased
International Segment
International segment sales increased
First Nine Months of Fiscal 2012 compared to First Nine Months of Fiscal 2011
Consolidated net sales increased
Operating income in the first nine months of fiscal 2012 was
Net income increased
A reconciliation of income as reported under GAAP to adjusted income is provided at the end of this release.
Cash flow from operations in the first nine months of fiscal 2012 was
Business Segment Results
Carter’s Segments
Carter’s retail segment sales increased
Carter’s wholesale segment sales increased
OshKosh B’gosh Segments
OshKosh retail segment sales increased
OshKosh wholesale segment sales were
International Segment
International segment sales increased
2012 Business Outlook
For the fourth quarter of fiscal 2012, the Company expects net sales to
increase approximately 10% over the fourth quarter of fiscal 2011. The
Company expects adjusted diluted earnings per share, excluding expenses
of approximately
For fiscal 2012, the Company expects net sales will increase
approximately 12% over fiscal 2011. The Company expects adjusted diluted
earnings per share, excluding expenses totaling approximately
Conference Call
The Company will hold a conference call with investors to discuss third
quarter fiscal 2012 results and its business outlook on
About
Cautionary Language
This press release contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 relating to the Company's future
performance, including, without limitation, statements with respect to
the Company's anticipated financial results for the fourth quarter of
fiscal 2012 and fiscal year 2012, or any other future period, assessment
of the Company's performance and financial position, and drivers of the
Company's sales and earnings growth. Such statements are based on
current expectations only, and are subject to certain risks,
uncertainties, and assumptions. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those anticipated,
estimated, or projected. Factors that could cause actual results to
materially differ include: the acceptance of the Company's products in
the marketplace; changes in consumer preference and fashion trends;
seasonal fluctuations in the children's apparel business; negative
publicity; the breach of the Company's consumer databases; increased
production costs; deflationary pricing pressures and customer acceptance
of higher selling prices; a continued decrease in the overall level of
consumer spending; the Company's dependence on its foreign supply
sources; failure of its foreign supply sources to meet the Company's
quality standards or regulatory requirements; the impact of governmental
regulations and environmental risks applicable to the Company's
business; disruption to our eCommerce business, distribution facilities,
or in-sourcing capabilities; the loss of a product sourcing agent;
increased competition in the baby and young children's apparel market;
the ability of the Company to identify new retail store locations, and
negotiate appropriate lease terms for the retail stores; the ability of
the Company to adequately forecast demand, which could create
significant levels of excess inventory; failure to achieve sales growth
plans, cost savings, and other assumptions that support the carrying
value of the Company's intangible assets; the ability to attract and
retain key individuals within the organization; the risk that actual
charges related to the consolidation of the company's
CARTER’S, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in thousands, except for share data) (unaudited) |
|||||||||||||||||||
For the three-month periods ended |
For the nine-month periods ended |
||||||||||||||||||
September 29, 2012 |
October 1, |
September 29, 2012 |
October 1, 2011 |
||||||||||||||||
Net sales | $ | 668,657 | $ | 639,617 | $ | 1,692,481 | $ | 1,503,105 | |||||||||||
Cost of goods sold | 398,580 | 447,504 | 1,044,422 | 1,017,864 | |||||||||||||||
Gross profit | 270,077 | 192,113 | 648,059 | 485,241 | |||||||||||||||
Selling, general, and administrative expenses | 185,167 | 145,842 | 491,162 | 380,912 | |||||||||||||||
Royalty income | (10,482 | ) | (10,494 | ) | (26,722 | ) | (28,092 | ) | |||||||||||
Operating income | 95,392 | 56,765 | 183,619 | 132,421 | |||||||||||||||
Interest expense, net | 1,716 | 1,699 | 5,411 | 5,305 | |||||||||||||||
Foreign currency gain | (249 | ) | (88 | ) | (150 | ) | (319 | ) | |||||||||||
Income before income taxes | 93,925 | 55,154 | 178,358 | 127,435 | |||||||||||||||
Provision for income taxes | 34,547 | 20,705 | 65,900 | 48,204 | |||||||||||||||
Net income | $ | 59,378 | $ | 34,449 | $ | 112,458 | $ | 79,231 | |||||||||||
Basic net income per common share | $ | 1.01 | $ | 0.59 | $ | 1.91 | $ | 1.37 | |||||||||||
Diluted net income per common share | $ | 0.99 | $ | 0.58 | $ | 1.88 | $ | 1.35 |
CARTER’S, INC. BUSINESS SEGMENT RESULTS (unaudited) |
|||||||||||||||||||||||||||||||||||
For the three-month periods ended | For the nine-month periods ended | ||||||||||||||||||||||||||||||||||
(dollars in thousands) |
September 29, 2012 |
% of |
October 1, 2011 |
% of Total |
September 29, 2012 |
% of Total |
October 1, 2011 |
% of Total |
|||||||||||||||||||||||||||
Net sales: |
|||||||||||||||||||||||||||||||||||
Carter’s Wholesale | $ | 275,577 | 41.2 | % | $ | 288,775 | 45.1 | % | $ | 719,585 | 42.5 | % | $ | 703,028 | 46.7 | % | |||||||||||||||||||
Carter’s Retail (a) | 217,299 | 32.5 | % | 184,498 | 28.9 | % | 563,764 | 33.3 | % | 465,281 | 31.0 | % | |||||||||||||||||||||||
Total Carter’s | 492,876 | 73.7 | % | 473,273 | 74.0 | % | 1,283,349 | 75.8 | % | 1,168,309 | 77.7 | % | |||||||||||||||||||||||
OshKosh Retail (a) | 78,070 | 11.7 | % | 80,472 | 12.6 | % | 194,359 | 11.5 | % | 191,578 | 12.7 | % | |||||||||||||||||||||||
OshKosh Wholesale | 28,276 | 4.2 | % | 26,472 | 4.1 | % | 61,339 | 3.6 | % | 61,248 | 4.1 | % | |||||||||||||||||||||||
Total OshKosh | 106,346 | 15.9 | % | 106,944 | 16.7 | % | 255,698 | 15.1 | % | 252,826 | 16.8 | % | |||||||||||||||||||||||
International (b) | 69,435 | 10.4 | % | 59,400 | 9.3 | % | 153,434 | 9.1 | % | 81,970 | 5.5 | % | |||||||||||||||||||||||
Total net sales | $ | 668,657 | 100.0 | % | $ | 639,617 | 100.0 | % | $ | 1,692,481 | 100.0 | % | $ | 1,503,105 | 100.0 | % | |||||||||||||||||||
Operating income (loss): |
% of segment net sales |
% of segment net sales |
% of segment net sales |
% of segment net sales |
|||||||||||||||||||||||||||||||
Carter’s Wholesale | $ | 53,284 | 19.3 | % | $ | 33,023 | 11.4 | % | $ | 129,500 | 18.0 | % | $ | 90,603 | 12.9 | % | |||||||||||||||||||
Carter’s Retail (a) | 43,050 | 19.8 | % | 26,090 | 14.1 | % | 93,535 | 16.6 | % | 72,146 | 15.5 | % | |||||||||||||||||||||||
Total Carter’s | 96,334 | 19.5 | % | 59,113 | 12.5 | % | 223,035 | 17.4 | % | 162,749 | 13.9 | % | |||||||||||||||||||||||
OshKosh Retail (a) | 3,397 | 4.4 | % | 1,694 | 2.1 | % | (13,419 | ) | (6.9 | )% | (9,427 | ) | (4.9 | )% | |||||||||||||||||||||
OshKosh Wholesale | 1,927 | 6.8 | % | 513 | 1.9 | % | 1,507 | 2.5 | % | 81 | 0.1 | % | |||||||||||||||||||||||
Total OshKosh | 5,324 | 5.0 | % | 2,207 | 2.1 | % | (11,912 | ) | (4.7 | )% | (9,346 | ) | (3.7 | )% | |||||||||||||||||||||
International (b) (c) | 16,643 | 24.0 | % | 7,934 | 13.4 | % | 30,371 | 19.8 | % | 16,519 | 20.2 | % | |||||||||||||||||||||||
Segment operating income |
118,301 | 17.7 | % | 69,254 | 10.8 | % | 241,494 | 14.3 | % | 169,922 | 11.3 | % | |||||||||||||||||||||||
Corporate expenses (d) | (22,909 | ) | (e) | (3.4 | )% | (12,489 | ) | (f) | (2.0 | )% | (57,875 | ) | (e) | (3.4 | )% | (37,501 | ) | (f) | (2.5 | )% | |||||||||||||||
Total operating income | $ | 95,392 | 14.3 | % | $ | 56,765 | 8.9 | % | $ | 183,619 | 10.8 | % | $ | 132,421 | 8.8 | % |
(a) | Includes eCommerce results. | |
(b) | Net sales includes international retail, eCommerce, and wholesale sales. Operating income includes international licensing income. | |
(c) | Includes charges of $1.1 million and $2.9 million for the three and nine-month periods ended September 29, 2012, respectively, associated with the revaluation of the Company’s contingent consideration. Includes charges of $1.0 million for both the three and nine-month periods ended October 1, 2011, associated with the revaluation of the Company’s contingent consideration and $5.9 million for both periods related to the amortization of the fair value step-up for Bonnie Togs inventory acquired. | |
(d) | Corporate expenses generally include expenses related to incentive compensation, stock-based compensation, executive management, severance and relocation, finance, building occupancy, information technology, certain legal fees, consulting, and audit fees. | |
(e) | Includes $0.8 million and $2.6 million in facility closure-related costs related to closure of a distribution facility located in Hogansville, Georgia for the three and nine-month periods ended September 29, 2012, respectively. For the third quarter of fiscal 2012, the total closure-related costs consisted of severance of $0.3 million, accelerated depreciation (included in selling, general and administrative expenses) of $0.4 million, and other closure costs of $0.1 million. For the first nine months of fiscal 2012, the total closure-related costs consisted of severance of $1.7 million, accelerated depreciation (included in selling, general and administrative expenses) of $0.8 million, and other closure costs of $0.1 million. | |
(f) | Includes $0.1 million and $2.3 million of professional service fees associated with the acquisition of Bonnie Togs for the three and nine-month periods ended October 1, 2011, respectively. |
Certain prior year amounts have been reclassified for comparative purposes.
CARTER’S, INC. CONSOLIDATED BALANCE SHEETS (dollars in thousands, except for share data) (unaudited) |
||||||||||||
September 29, 2012 |
December 31, 2011 |
October 1, 2011 |
||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 254,321 | $ | 233,494 | $ | 81,634 | ||||||
Accounts receivable, net | 200,156 | 157,754 | 214,558 | |||||||||
Finished goods inventories, net | 375,102 | 347,215 | 385,960 | |||||||||
Prepaid expenses and other current assets | 16,913 | 18,519 | 16,412 | |||||||||
Deferred income taxes | 29,984 | 25,165 | 24,384 | |||||||||
Total current assets | 876,476 | 782,147 | 722,948 | |||||||||
Property, plant, and equipment, net | 153,330 | 122,346 | 111,830 | |||||||||
Tradenames | 305,962 | 306,176 | 306,234 | |||||||||
Goodwill | 190,470 | 188,679 | 186,536 | |||||||||
Deferred debt issuance costs, net | 3,074 | 2,624 | 2,801 | |||||||||
Other intangible assets, net | 210 | 258 | 268 | |||||||||
Other assets | 3,268 | 479 | 499 | |||||||||
Total assets | $ | 1,532,790 | $ | 1,402,709 | $ | 1,331,116 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Current maturities of long-term debt | $ | — | $ | — | $ | — | ||||||
Accounts payable | 115,005 | 102,804 | 83,491 | |||||||||
Other current liabilities | 89,158 | 49,949 | 42,426 | |||||||||
Total current liabilities | 204,163 | 152,753 | 125,917 | |||||||||
Long-term debt | 186,000 | 236,000 | 236,000 | |||||||||
Deferred income taxes | 113,280 | 114,421 | 115,982 | |||||||||
Other long-term liabilities | 95,905 | 93,826 | 81,600 | |||||||||
Total liabilities | 599,348 | 597,000 | 559,499 | |||||||||
Commitments and contingencies | ||||||||||||
Stockholders’ equity: | ||||||||||||
Preferred stock; par value $.01 per share; 100,000 shares authorized; none issued or outstanding at September 29, 2012, December 31, 2011, and October 1, 2011 | — | — | — | |||||||||
Common stock, voting; par value $.01 per share; 150,000,000 shares authorized; 59,035,891, 58,595,421, and 58,529,586 shares issued and outstanding at September 29, 2012, December 31, 2011, and October 1, 2011, respectively | 590 | 586 | 585 | |||||||||
Additional paid-in capital | 244,861 | 231,738 | 228,061 | |||||||||
Accumulated other comprehensive loss | (9,134 | ) | (11,282 | ) | (6,911 | ) | ||||||
Retained earnings | 697,125 | 584,667 | 549,882 | |||||||||
Total stockholders’ equity | 933,442 | 805,709 | 771,617 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,532,790 | $ | 1,402,709 | $ | 1,331,116 |
CARTER’S, INC. CONSOLIDATED STATEMENTS OF CASH FLOW (dollars in thousands) (unaudited) |
|||||||||||
For the nine-month periods ended |
|||||||||||
September 29, 2012 |
October 1, 2011 |
||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 112,458 | $ | 79,231 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 26,338 | 23,522 | |||||||||
Amortization of Bonnie Togs inventory step-up | — | 5,944 | |||||||||
Non-cash revaluation of contingent consideration | 2,883 | 1,020 | |||||||||
Amortization of Bonnie Togs tradename and non-compete agreements | 281 | 96 | |||||||||
Amortization of debt issuance costs | 681 | 531 | |||||||||
Non-cash stock-based compensation expense | 9,718 | 7,161 | |||||||||
Income tax benefit from stock-based compensation | (2,387 | ) | (6,292 | ) | |||||||
Loss on disposal of property, plant, and equipment | 747 | 149 | |||||||||
Deferred income taxes | (5,612 | ) | 8,021 | ||||||||
Effect of changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (42,209 | ) | (90,263 | ) | |||||||
Inventories | (26,963 | ) | (59,355 | ) | |||||||
Prepaid expenses and other assets | (332 | ) | 1,019 | ||||||||
Accounts payable and other liabilities | 53,612 | (56,572 | ) | ||||||||
Net cash provided by (used in) operating activities | 129,215 | (85,788 | ) | ||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (59,816 | ) | (29,157 | ) | |||||||
Acquisition of Bonnie Togs | — | (61,199 | ) | ||||||||
Proceeds from sale of property, plant, and equipment | 6 | 10 | |||||||||
Net cash used in investing activities | (59,810 | ) | (90,346 | ) | |||||||
Cash flows from financing activities: | |||||||||||
Borrowings under revolving credit facility | 2,500 | — | |||||||||
Payments on revolving credit facility | (52,500 | ) | — | ||||||||
Payment of debt issuance costs | (1,916 | ) | — | ||||||||
Income tax benefit from stock-based compensation | 2,387 | 6,292 | |||||||||
Withholdings from vesting of restricted stock | (2,794 | ) | (1,635 | ) | |||||||
Proceeds from exercise of stock options | 3,650 | 5,428 | |||||||||
Net cash (used in) provided by financing activities | (48,673 | ) | 10,085 | ||||||||
Effect of exchange rate changes on cash | 95 | 301 | |||||||||
Net increase (decrease) in cash and cash equivalents | 20,827 | (165,748 | ) | ||||||||
Cash and cash equivalents, beginning of period | 233,494 | 247,382 | |||||||||
Cash and cash equivalents, end of period | $ | 254,321 | $ | 81,634 |
CARTER’S, INC. RECONCILIATION OF GAAP TO ADJUSTED RESULTS |
||||||||||||||||||||
Three-month period ended September 29, 2012 | ||||||||||||||||||||
(dollars in millions, except earnings per share) | SG&A |
Operating Income |
Net Income | Diluted EPS | ||||||||||||||||
As reported (GAAP) | $ | 185.2 | $ | 95.4 | $ | 59.4 | $ | 0.99 | ||||||||||||
Revaluation of contingent consideration (a) | (1.1 | ) | 1.1 | 1.1 | 0.02 | |||||||||||||||
Facility closure-related costs (b) | (0.8 | ) | 0.8 | 0.5 | 0.01 | |||||||||||||||
As adjusted (e) | $ | 183.3 | $ | 97.3 | $ | 61.0 | $ | 1.02 | ||||||||||||
Nine-month period ended September 29, 2012 | ||||||||||||||||||||
(dollars in millions, except earnings per share) |
SG&A |
Operating Income |
Net Income | Diluted EPS | ||||||||||||||||
As reported (GAAP) | $ | 491.2 | $ | 183.6 | $ | 112.5 | $ | 1.88 | ||||||||||||
Revaluation of contingent consideration (a) |
(2.9 | ) | 2.9 | 2.9 | 0.05 | |||||||||||||||
Facility closure-related costs (b) |
(2.6 | ) | 2.6 | 1.6 | 0.03 | |||||||||||||||
As adjusted (e) | $ | 485.7 | $ | 189.1 | $ | 117.0 | $ | 1.96 | ||||||||||||
Three-month period ended October 1, 2011 | ||||||||||||||||||||
(dollars in millions, except earnings per share) | Gross Margin | SG&A |
Operating Income |
Net Income | Diluted EPS | |||||||||||||||
As reported (GAAP) | $ | 192.1 | $ | 145.8 | $ | 56.8 | $ | 34.4 | $ | 0.58 | ||||||||||
Amortization of fair value step-up of inventory (c) |
5.9 | — | 5.9 | 4.3 | 0.07 | |||||||||||||||
Revaluation of contingent consideration (a) |
— | (1.0 | ) | 1.0 | 1.0 | 0.02 | ||||||||||||||
Professional fees / other expenses (d) |
— | (0.1 | ) | 0.1 | — | — | ||||||||||||||
As adjusted (e) | $ | 198.1 | $ | 144.8 | $ | 63.8 | $ | 39.8 | $ | 0.67 | ||||||||||
Nine-month period ended October 1, 2011 | ||||||||||||||||||||
(dollars in millions, except earnings per share) | Gross Margin | SG&A |
Operating Income |
Net Income | Diluted EPS | |||||||||||||||
As reported (GAAP) | $ | 485.2 | $ | 380.9 | $ | 132.4 | $ | 79.2 | $ | 1.35 | ||||||||||
Amortization of fair value step-up of inventory (c) | 5.9 | — | 5.9 | 4.3 | 0.07 | |||||||||||||||
Revaluation of contingent consideration (a) | — | (1.0 | ) | 1.0 | 1.0 | 0.02 | ||||||||||||||
Professional fees / other expenses (d) | — | (2.3 | ) | 2.3 | 1.4 | 0.02 | ||||||||||||||
As adjusted (e) | $ | 491.2 | $ | 377.6 | $ | 141.7 | $ | 86.0 | $ | 1.46 |
(a) | Revaluation of the contingent consideration liability associated with the Company's June 2011 acquisition of Bonnie Togs. | |
(b) | Costs related to the closure of a distribution facility located in Hogansville, Georgia, including severance and related benefits of $0.3 million and $1.7 million for the three and nine-month periods ended September 29, 2012, respectively, $0.4 million and $0.8 million in accelerated depreciation for the three and nine-months period ended September 29, 2012, respectively, and $0.1 million in other closure costs for the three and nine-month periods ended September 29, 2012, respectively. | |
(c) | Expense related to the amortization of the fair value step-up for Bonnie Togs inventory acquired. | |
(d) | Professional service fees associated with the acquisition of Bonnie Togs. | |
(e) | In addition to the results provided in this earnings release in accordance with GAAP, the Company has provided adjusted, non-GAAP financial measurements that present gross margin, SG&A, operating income, net income, and net income on a diluted share basis excluding the adjustments discussed above. The Company believes these adjustments provide a meaningful comparison of the Company’s results. The adjusted, non-GAAP financial measurements included in this earnings release should not be considered as an alternative to net income or as any other measurement of performance derived in accordance with GAAP. The adjusted, non-GAAP financial measurements are presented for informational purposes only and are not necessarily indicative of the Company’s future condition or results of operations. |
Note: Results may not be additive due to rounding.
Certain
prior year amounts have been reclassified for comparative purposes.
CARTER’S, INC. RECONCILIATION OF GAAP TO ADJUSTED RESULTS |
|||||||||||||||||||||||||
Three-month period ended December 31, 2011 | |||||||||||||||||||||||||
(dollars in millions, except earnings per share) | Gross Margin | SG&A |
Operating Income |
Net Income | Diluted EPS | ||||||||||||||||||||
As reported (GAAP) | $ | 207.0 | $ | 161.2 | $ | 55.0 | $ | 34.8 | $ | 0.59 | |||||||||||||||
Amortization of fair value step-up of inventory (a) | 0.7 | — | 0.7 | 0.5 | 0.01 | ||||||||||||||||||||
Revaluation of contingent consideration (b) | — | (1.5 | ) | 1.5 | 1.5 | 0.02 | |||||||||||||||||||
Professional fees / other expenses (c) | — | (0.8 | ) | 0.8 | 0.5 | 0.01 | |||||||||||||||||||
As adjusted (d) | $ | 207.8 | $ | 158.9 | $ | 58.0 | $ | 37.3 | $ | 0.63 | |||||||||||||||
Twelve-month period ended December 31, 2011 | |||||||||||||||||||||||||
(dollars in millions, except earnings per share) | Gross Margin | SG&A |
Operating Income |
Net Income | Diluted EPS | ||||||||||||||||||||
As reported (GAAP) | $ | 692.3 | $ | 542.1 | $ | 187.5 | $ | 114.0 | $ | 1.94 | |||||||||||||||
Amortization of fair value step-up of inventory (a) | 6.7 | — | 6.7 | 4.8 | 0.08 | ||||||||||||||||||||
Revaluation of contingent consideration (b) | — | (2.5 | ) | 2.5 | 2.5 | 0.04 | |||||||||||||||||||
Professional fees / other expenses (c) | — | (3.0 | ) | 3.0 | 1.9 | 0.03 | |||||||||||||||||||
As adjusted (d) | $ | 698.9 | $ | 536.6 | $ | 199.7 | $ | 123.2 | $ | 2.09 |
(a) | Expense related to the amortization of the fair value step-up for Bonnie Togs inventory acquired. | |
(b) | Revaluation of the contingent consideration liability associated with the Company's June 2011 acquisition of Bonnie Togs. | |
(c) | Professional service fees associated with the acquisition of Bonnie Togs. | |
(d) | In addition to the results provided in this earnings release in accordance with GAAP, the Company has provided adjusted, non-GAAP financial measurements that present gross margin, SG&A, operating income, net income, and net income on a diluted share basis excluding the adjustments discussed above. The Company believes these adjustments provide a meaningful comparison to the Company's results. The adjusted, non-GAAP financial measurements included in this earnings release should not be considered as an alternative to net income or as any other measurement of performance derived in accordance with GAAP. The adjusted, non-GAAP financial measurements are presented for informational purposes only and are not necessarily indicative of the Company's future condition or results of operations. |
Note: Results may not be additive due to rounding.
Certain
prior year amounts have been reclassified for comparative purposes.
CARTER’S, INC. RECONCILIATION OF NET INCOME ALLOCABLE TO COMMON SHAREHOLDERS |
|||||||||||||||||||||
For the
three-month periods ended |
For the nine-month periods ended |
||||||||||||||||||||
September 29, 2012 |
October 1, 2011 |
September 29, 2012 |
October 1, 2011 |
||||||||||||||||||
Weighted-average number of common and common equivalent outstanding: | |||||||||||||||||||||
Basic number of common shares outstanding | 58,267,398 | 57,729,572 | 58,175,125 | 57,366,529 | |||||||||||||||||
Dilutive effect of unvested restricted stock | 189,203 | 121,633 | 179,816 | 108,577 | |||||||||||||||||
Dilutive effect of stock options | 693,526 | 464,846 | 663,749 | 599,805 | |||||||||||||||||
Diluted number of common and common equivalent shares outstanding | 59,150,127 | 58,316,051 | 59,018,690 | 58,074,911 | |||||||||||||||||
As reported on a GAAP Basis: |
|||||||||||||||||||||
Basic net income per common share: | |||||||||||||||||||||
Net income | $ | 59,378,000 | $ | 34,449,000 | $ | 112,458,000 | $ | 79,231,000 | |||||||||||||
Income allocated to participating securities | (775,127 | ) | (384,738 | ) | (1,470,338 | ) | (890,416 | ) | |||||||||||||
Net income available to common shareholders | $ | 58,602,873 | $ | 34,064,262 | $ | 110,987,662 | $ | 78,340,584 | |||||||||||||
Basic net income per common share | $ | 1.01 | $ | 0.59 | $ | 1.91 | $ | 1.37 | |||||||||||||
Diluted net income per common share | |||||||||||||||||||||
Net income | $ | 59,378,000 | $ | 34,449,000 | $ | 112,458,000 | $ | 79,231,000 | |||||||||||||
Income allocated to participating securities | (766,127 | ) | (381,699 | ) | (1,453,966 | ) | (881,305 | ) | |||||||||||||
Net income available to common shareholders | $ | 58,611,873 | $ | 34,067,301 | $ | 111,004,034 | $ | 78,349,695 | |||||||||||||
Diluted net income per common share | $ | 0.99 | $ | 0.58 | $ | 1.88 | $ | 1.35 | |||||||||||||
As adjusted (a): |
|||||||||||||||||||||
Basic net income per common share: | |||||||||||||||||||||
Net income | $ | 60,963,000 | $ | 39,791,000 | $ | 116,983,000 | $ | 85,967,000 | |||||||||||||
Income allocated to participating securities | (795,818 | ) | (444,400 | ) | (1,529,500 | ) | (966,117 | ) | |||||||||||||
Net income available to common shareholders | $ | 60,167,182 | $ | 39,346,600 | $ | 115,453,500 | $ | 85,000,883 | |||||||||||||
Basic net income per common share | $ | 1.03 | $ | 0.68 | $ | 1.98 | $ | 1.48 | |||||||||||||
Diluted net income per common share | |||||||||||||||||||||
Net income | $ | 60,963,000 | $ | 39,791,000 | $ | 116,983,000 | $ | 85,967,000 | |||||||||||||
Income allocated to participating securities | (786,578 | ) | (440,889 | ) | (1,512,469 | ) | (956,231 | ) | |||||||||||||
Net income available to common shareholders | $ | 60,176,422 | $ | 39,350,111 | $ | 115,470,531 | $ | 85,010,769 | |||||||||||||
Diluted net income per common share | $ | 1.02 | $ | 0.67 | $ | 1.96 | $ | 1.46 |
(a) | In addition to the results provided in this earnings release in accordance with GAAP, the Company has provided adjusted, non-GAAP financial measurements that present per share data excluding the adjustments discussed above. The Company has excluded $1.6 million and $4.5 million in after-tax expenses from these results for the three and nine-month periods ended September 29, 2012, respectively. The Company has excluded $5.3 million and $6.7 million in after-tax expenses from these results for the three and nine-month periods ended October 1, 2011, respectively. |
Source: Carter’s, Inc.
Carter’s, Inc.
Sean McHugh, 404-745-2889
Vice President,
Investor
Relations & Treasury