-
Net Sales
$518 Million , Up 10% -
EPS
$0.33 , Down 6%; Adjusted EPS$0.46 , Up 24%
“Our second quarter results reflect strong sales growth driven by our Carter's
brand retail stores, and our eCommerce and International
operations,” said
Consolidated net sales increased
Operating income in the second quarter of fiscal 2013 was
Net income in the second quarter of fiscal 2013 decreased
A reconciliation of income as reported under GAAP to adjusted income is provided at the end of this release.
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 decreased
OshKosh wholesale segment sales decreased
International Segment
International segment sales increased
Acquisition of Tradenames
On
First Half of Fiscal 2013 compared to First Half of Fiscal 2012
Consolidated net sales increased
Operating income in the first half of fiscal 2013 was
Net income in the first half of fiscal 2013 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 half of fiscal 2013 was
Business Segment Results (First Half of Fiscal 2013 compared to First Half of Fiscal 2012)
Carter’s Segments
Carter’s retail segment sales increased
Carter’s wholesale segment sales increased
OshKosh B’gosh Segments
OshKosh retail segment sales decreased
OshKosh wholesale segment sales decreased
International Segment
International segment sales increased
Stock Repurchase Program
On
During the second quarter of fiscal 2013, the Company repurchased
433,402 shares of its common stock for
Dividends
On
Capital Structure Review / Planned Financing Transaction
As part of the Company's ongoing review of opportunities to improve its capital structure and to take advantage of historically attractive interest rates, the Company plans to engage in a financing transaction to raise new debt to fund the return of additional capital to shareholders. The amount, type, terms, and timing of this financing and the method of any return of capital are subject to market and business conditions, including interest rates, Company performance, and other considerations.
2013 Business Outlook
For the third quarter of fiscal 2013, the Company expects net sales will
increase approximately 12% compared to net sales of
For fiscal 2013, the Company expects net sales will increase
approximately 8% to 10% compared to net sales of
Conference Call
The Company will hold a conference call with investors to discuss second
quarter fiscal 2013 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 third quarter of
fiscal 2013 and fiscal year 2013, 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 risks of: losing one or more major
customers; the Company's products not being accepted in the marketplace;
changes in consumer preference and fashion trends; negative publicity;
the Company failing to protect its intellectual property; the breach of
the Company's consumer databases; incurring costs in connection with
cooperating with regulatory investigations and proceedings; increased
production costs; deflationary pricing pressures; decreases in the
overall level of consumer spending; disruptions resulting from the
Company's dependence on foreign supply sources; the Company's foreign
supply sources not meeting the Company's quality standards or regulatory
requirements; disruption to the Company's eCommerce business or
distribution facilities due to the planned transition or otherwise;
disruptions in the Company's supply chain or in-sourcing capabilities
resulting from sourcing through a single port or otherwise; the loss of
the Company's principal product sourcing agent; increased competition in
the baby and young children's apparel market; the Company being unable
to identify new retail store locations or negotiate appropriate lease
terms for the retail stores; the Company not adequately forecasting
demand, which could, among other things, 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; not attracting and retaining key individuals within
the organization; failure to implement needed upgrades to the Company's
information technology systems; disruptions resulting from the Company's
transition of distribution functions to its new
|
CARTER’S, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in thousands, except for share data) (unaudited) |
|||||||||||||||||
| Fiscal quarters ended | Two fiscal quarters ended | ||||||||||||||||
|
June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
||||||||||||||
| Net sales | $ | 517,874 | $ | 472,162 | $ | 1,108,883 | $ | 1,023,824 | |||||||||
| Cost of goods sold | 297,629 | 288,919 | 645,576 | 645,842 | |||||||||||||
| Gross profit | 220,245 | 183,243 | 463,307 | 377,982 | |||||||||||||
| Selling, general, and administrative expenses | 195,014 | 156,290 | 380,375 | 305,995 | |||||||||||||
| Royalty income | (7,507 | ) | (7,474 | ) | (16,749 | ) | (16,240 | ) | |||||||||
| Operating income | 32,738 | 34,427 | 99,681 | 88,227 | |||||||||||||
| Interest expense, net | 1,060 | 1,666 | 2,163 | 3,623 | |||||||||||||
| Other expense (income), net | 531 | (135 | ) | 1,104 | 171 | ||||||||||||
| Income before income taxes | 31,147 | 32,896 | 96,414 | 84,433 | |||||||||||||
| Provision for income taxes | 11,474 | 12,091 | 35,326 | 31,353 | |||||||||||||
| Net income | $ | 19,673 | $ | 20,805 | $ | 61,088 | $ | 53,080 | |||||||||
| Basic net income per common share | $ | 0.33 | $ | 0.35 | $ | 1.03 | $ | 0.90 | |||||||||
| Diluted net income per common share | $ | 0.33 | $ | 0.35 | $ | 1.02 | $ | 0.89 | |||||||||
| Dividend declared and paid per common share | $ | 0.16 | $ | — | $ | 0.16 | $ | — | |||||||||
|
CARTER’S, INC. BUSINESS SEGMENT RESULTS (dollars in thousands) (unaudited) |
|||||||||||||||||||||||||||||
| Fiscal quarters ended | Two fiscal quarters ended | ||||||||||||||||||||||||||||
|
June 29, 2013 |
% of Total |
June 30, 2012 |
% of Total |
June 29, 2013 |
% of Total |
June 30, 2012 |
% of Total |
||||||||||||||||||||||
| Net sales: | |||||||||||||||||||||||||||||
| Carter’s Wholesale | $ | 196,734 | 38.0 | % | $ | 194,523 | 41.2 | % | $ | 444,912 | 40.1 | % | $ | 444,008 | 43.4 | % | |||||||||||||
| Carter’s Retail (a) | 199,370 | 38.5 | % | 169,261 | 35.8 | % | 407,799 | 36.8 | % | 346,465 | 33.8 | % | |||||||||||||||||
| Total Carter’s | 396,104 | 76.5 | % | 363,784 | 77.0 | % | 852,711 | 76.9 | % | 790,473 | 77.2 | % | |||||||||||||||||
| OshKosh Retail (a) | 56,423 | 10.9 | % | 58,301 | 12.3 | % | 111,768 | 10.1 | % | 116,289 | 11.4 | % | |||||||||||||||||
| OshKosh Wholesale | 11,301 | 2.2 | % | 12,789 | 2.7 | % | 29,487 | 2.7 | % | 33,063 | 3.2 | % | |||||||||||||||||
| Total OshKosh | 67,724 | 13.1 | % | 71,090 | 15.1 | % | 141,255 | 12.8 | % | 149,352 | 14.6 | % | |||||||||||||||||
| International (b) | 54,046 | 10.4 | % | 37,288 | 7.9 | % | 114,917 | 10.3 | % | 83,999 | 8.2 | % | |||||||||||||||||
| Total net sales | $ | 517,874 | 100.0 | % | $ | 472,162 | 100.0 | % | $ | 1,108,883 | 100.0 | % | $ | 1,023,824 | 100.0 | % | |||||||||||||
| Operating income: |
% of segment net sales |
% of segment net sales |
% of segment net sales |
% of segment net sales |
|||||||||||||||||||||||||
| Carter’s Wholesale | $ | 31,298 | 15.9 | % | $ | 35,482 | 18.2 | % | $ | 81,482 | 18.3 | % | $ | 75,698 | 17.0 | % | |||||||||||||
| Carter’s Retail (a) | 33,256 | 16.7 | % | 19,955 | 11.8 | % | 73,040 | 17.9 | % | 50,489 | 14.6 | % | |||||||||||||||||
| Total Carter’s | 64,554 | 16.3 | % | 55,437 | 15.2 | % | 154,522 | 18.1 | % | 126,187 | 16.0 | % | |||||||||||||||||
| OshKosh Retail (a) | (6,073 | ) | (10.8 | )% | (9,342 | ) | (16.0 | )% | (11,168 | ) | (10.0 | )% | (16,682 | ) | (14.3 | )% | |||||||||||||
| OshKosh Wholesale | 681 | 6.0 | % | 67 | 0.5 | % | 3,484 | 11.8 | % | 686 | 2.1 | % | |||||||||||||||||
| Total OshKosh | (5,392 | ) | (8.0 | )% | (9,275 | ) | (13.0 | )% | (7,684 | ) | (5.4 | )% | (15,996 | ) | (10.7 | )% | |||||||||||||
| International (b) (c) | 7,353 | 13.6 | % | 6,098 | 16.4 | % | 12,349 | 10.7 | % | 13,001 | 15.5 | % | |||||||||||||||||
| Total segment operating income | 66,515 | 12.8 | % | 52,260 | 11.1 | % | 159,187 | 14.4 | % | 123,192 | 12.0 | % | |||||||||||||||||
| Corporate expenses (d) (e) | (33,777 | ) | (6.5 | )% | (17,833 | ) | (3.8 | )% | (59,506 | ) | (5.4 | )% | (34,965 | ) | (3.4 | )% | |||||||||||||
| Total operating income | $ | 32,738 | 6.3 | % | $ | 34,427 | 7.3 | % | $ | 99,681 | 9.0 | % | $ | 88,227 | 8.6 | % | |||||||||||||
| (a) | Includes eCommerce results. | |
| (b) | Net sales includes international retail, eCommerce, and wholesale sales. Operating income includes international licensing income. | |
| (c) |
Includes charges associated with the revaluation of the Company’s contingent consideration of $1.0 million and $1.9 million for the second fiscal quarter and first two fiscal quarters of 2013, respectively, and $1.1 million and $1.8 million for the second fiscal quarter and first two fiscal quarters of 2012, respectively. |
|
| (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 the following charges: |
| Fiscal quarters ended | Two fiscal quarters ended | ||||||||||||||
| (dollars in millions) | June 29, 2013 | June 30, 2012 | June 29, 2013 | June 30, 2012 | |||||||||||
| Closure of distribution facility in Hogansville, GA | $ | — | $ | 0.7 | $ | 0.6 | $ | 1.8 | |||||||
| Office closure costs | $ | 10.2 | $ | — | $ | 18.2 | $ | — | |||||||
|
Amortization of H.W. Carter and Sons tradenames |
$ | 1.0 | $ | — | $ | 1.0 | $ | — | |||||||
|
Certain prior year amounts have been reclassified for comparative purposes. |
|||||||||||||||
|
CARTER’S, INC. CONSOLIDATED BALANCE SHEETS (dollars in thousands, except for share data) (unaudited) |
||||||||||||
|
June 29, 2013 |
December 29, |
June 30, 2012 |
||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 312,132 | $ | 382,236 | $ | 237,629 | ||||||
| Accounts receivable, net | 133,277 | 168,046 | 131,888 | |||||||||
| Finished goods inventories, net | 429,223 | 349,530 |
377,857 |
|||||||||
| Prepaid expenses and other current assets | 48,621 | 22,216 | 27,485 | |||||||||
| Deferred income taxes | 32,948 | 35,675 | 23,838 | |||||||||
| Total current assets | 956,201 | 957,703 | 798,697 | |||||||||
| Property, plant, and equipment, net | 208,094 | 170,110 | 139,592 | |||||||||
| Goodwill | 186,957 | 189,749 | 188,621 | |||||||||
| Tradenames and other intangibles, net | 342,883 | 306,072 | 306,249 | |||||||||
| Deferred debt issuance costs, net | 2,486 | 2,878 | 2,270 | |||||||||
| Other assets | 5,130 | 3,597 | 436 | |||||||||
| Total assets | $ | 1,701,751 | $ | 1,630,109 | $ | 1,435,865 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 199,588 | $ | 149,625 | $ | 120,922 | ||||||
| Other current liabilities | 74,062 | 94,610 | 44,639 | |||||||||
| Total current liabilities | 273,650 | 244,235 | 165,561 | |||||||||
| Long-term debt | 186,000 | 186,000 | 186,000 | |||||||||
| Deferred income taxes | 112,171 | 114,341 | 113,355 | |||||||||
| Other long-term liabilities | 108,993 | 100,054 | 103,612 | |||||||||
| Total liabilities | $ | 680,814 | $ | 644,630 | $ | 568,528 | ||||||
| Commitments and contingencies | ||||||||||||
| Stockholders’ equity: | ||||||||||||
| Preferred stock; par value $.01 per share; 100,000 shares authorized; none issued or outstanding at June 29, 2013, December 29, 2012, and June 30, 2012, respectively | — | — | — | |||||||||
| Common stock, voting; par value $.01 per share; 150,000,000 shares authorized; 59,353,894, 59,126,639, and 58,989,420 shares issued and outstanding at June 29, 2013, December 29, 2012, and June 30, 2012, respectively | 594 | 591 | 590 | |||||||||
| Additional paid-in capital | 238,167 | 250,276 | 240,427 | |||||||||
| Accumulated other comprehensive loss | (15,207 | ) | (11,205 | ) | (11,427 | ) | ||||||
| Retained earnings | 797,383 | 745,817 | 637,747 | |||||||||
| Total stockholders’ equity | 1,020,937 | 985,479 | 867,337 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,701,751 | $ | 1,630,109 | $ | 1,435,865 | ||||||
|
CARTER’S, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (dollars in thousands) (unaudited) |
||||||||
| Two fiscal quarters ended | ||||||||
|
June 29, 2013 |
June 30, 2012 |
|||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 61,088 | $ | 53,080 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 25,936 | 17,793 | ||||||
| Revaluation of contingent consideration | 1,866 | 1,779 | ||||||
| Amortization of debt issuance costs | 392 | 354 | ||||||
| Stock-based compensation expense | 8,425 | 6,351 | ||||||
| Income tax benefit from stock-based compensation | (9,929 | ) | (1,834 | ) | ||||
| Loss on disposal of property, plant, and equipment | 112 | 517 | ||||||
| Deferred income taxes | 557 | 554 | ||||||
| Effect of changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 34,519 | 25,887 | ||||||
| Inventories | (81,361 | ) | (30,705 | ) | ||||
| Prepaid expenses and other assets | (28,136 | ) | (8,921 | ) | ||||
| Accounts payable and other liabilities | 56,371 | 25,084 | ||||||
| Net cash provided by operating activities | 69,840 | 89,939 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (70,566 | ) | (37,711 | ) | ||||
| Acquisition of tradenames | (38,007 | ) | — | |||||
| Proceeds from sale of property, plant, and equipment | — | 6 | ||||||
| Net cash used in investing activities | (108,573 | ) | (37,705 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Borrowings under revolving credit facility | — | 2,500 | ||||||
| Payments on revolving credit facility | — | (52,500 | ) | |||||
| Repurchase of common stock | (37,757 | ) | — | |||||
| Dividends paid | (9,522 | ) | — | |||||
| Income tax benefit from stock-based compensation | 9,929 | 1,834 | ||||||
| Withholdings from vesting of restricted stock | (4,539 | ) | (2,408 | ) | ||||
| Proceeds from exercise of stock options | 11,210 | 2,481 | ||||||
| Net cash used in financing activities | (30,679 | ) | (48,093 | ) | ||||
| Effect of exchange rate changes on cash | (692 | ) | (6 | ) | ||||
| Net (decrease) increase in cash and cash equivalents | (70,104 | ) | 4,135 | |||||
| Cash and cash equivalents, beginning of period | 382,236 | 233,494 | ||||||
| Cash and cash equivalents, end of period | $ | 312,132 | $ | 237,629 | ||||
|
CARTER’S, INC. RECONCILIATION OF GAAP TO ADJUSTED RESULTS (dollars in millions, except earnings per share) |
|||||||||||||||
| Fiscal quarter ended June 29, 2013 | |||||||||||||||
| SG&A |
Operating |
Net Income | Diluted EPS | ||||||||||||
| As reported (GAAP) | $ | 195.0 | $ | 32.7 | $ | 19.7 | $ | 0.33 | |||||||
| Office consolidation costs (a) | (10.2 | ) | 10.2 | 6.4 | 0.10 | ||||||||||
| Revaluation of contingent consideration (b) | (1.0 | ) | 1.0 | 1.0 | 0.02 | ||||||||||
| Amortization of tradenames (c) | (1.0 | ) | 1.0 | 0.6 | 0.01 | ||||||||||
| As adjusted (e) | $ | 182.9 | $ | 44.9 | $ | 27.7 | $ | 0.46 | |||||||
| Two fiscal quarters ended June 29, 2013 | ||||||||||||||
| SG&A |
Operating |
Net Income | Diluted EPS | |||||||||||
| As reported (GAAP) | $ | 380.4 | $ | 99.7 | $ | 61.1 | $ | 1.02 | ||||||
| Office consolidation costs (a) | (18.2 | ) | 18.2 | 11.4 | 0.19 | |||||||||
| Revaluation of contingent consideration (b) | (1.9 | ) | 1.9 | 1.9 | 0.03 | |||||||||
| Amortization of tradenames (c) | (1.0 | ) | 1.0 | 0.6 | 0.01 | |||||||||
| Facility closure costs - Hogansville DC (d) | (0.6 | ) | 0.6 | 0.4 | 0.01 | |||||||||
| As adjusted (e) | $ | 358.8 | $ | 121.3 | $ | 75.4 | $ | 1.26 | ||||||
| Fiscal quarter ended June 30, 2012 | ||||||||||||||
| SG&A |
Operating |
Net Income | Diluted EPS | |||||||||||
| As reported (GAAP) | $ | 156.3 | $ | 34.4 | $ | 20.8 | $ | 0.35 | ||||||
| Revaluation of contingent consideration (b) | (1.1 | ) | 1.1 | 1.1 | 0.01 | |||||||||
| Facility closure costs - Hogansville DC (d) | (0.7 | ) | 0.7 | 0.5 | 0.01 | |||||||||
| As adjusted (e) | $ | 154.5 | $ | 36.2 | $ | 22.4 | $ | 0.37 | ||||||
| Two fiscal quarters ended June 30, 2012 | ||||||||||||||
| SG&A |
Operating |
Net Income | Diluted EPS | |||||||||||
| As reported (GAAP) | $ | 306.0 | $ | 88.2 | $ | 53.1 | $ | 0.89 | ||||||
| Revaluation of contingent consideration (b) | (1.8 | ) | 1.8 | 1.8 | 0.03 | |||||||||
| Facility closure costs - Hogansville DC (d) | (1.8 | ) | 1.8 | 1.2 | 0.02 | |||||||||
| As adjusted (e) | $ | 302.4 | $ | 91.8 | $ | 56.0 | $ | 0.94 | ||||||
|
(a) |
Costs related to the office consolidation. |
||
|
(b) |
Revaluation of the contingent consideration liability associated with the Company's acquisition of Bonnie Togs. |
||
|
(c) |
Amortization of H.W. Carter and Sons tradenames. |
||
|
(d) |
Costs related to the closure of a distribution facility located in Hogansville, GA, announced in the first quarter of fiscal 2012. |
||
|
(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 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 (dollars in millions, except earnings per share) |
|||||||||||||||
| Quarter ended September 29, 2012 | |||||||||||||||
| SG&A |
Operating |
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 costs - Hogansville DC (b) | (0.8 | ) | 0.8 | 0.5 | 0.01 | ||||||||||
| As adjusted (d) | $ | 183.3 | $ | 97.3 | $ | 61.0 | $ | 1.02 | |||||||
| Fiscal year ended December 29, 2012 | |||||||||||||||
| SG&A |
Operating |
Net Income | Diluted EPS | ||||||||||||
| As reported (GAAP) | $ | 713.2 | $ | 262.0 | $ | 161.2 | $ | 2.69 | |||||||
| Office consolidation costs (c) | (6.4 | ) | 6.4 | 4.0 | 0.07 | ||||||||||
| Revaluation of contingent consideration (a) | (3.6 | ) | 3.6 | 3.6 | 0.06 | ||||||||||
| Facility closure costs - Hogansville DC (b) | (3.1 | ) | 3.1 | 1.9 | 0.03 | ||||||||||
| As adjusted (d) | $ | 700.1 | $ | 275.1 | $ | 170.7 | $ | 2.85 | |||||||
| (a) | Revaluation of the contingent consideration liability associated with the Company's acquisition of Bonnie Togs. |
| (b) | Costs related to the closure of a distribution facility located in Hogansville, GA, announced in the first quarter of fiscal 2012. |
| (c) | Costs related to the office consolidation. |
| (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 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 NET INCOME ALLOCABLE TO COMMON SHAREHOLDERS |
|||||||||||||||||
| Fiscal quarters ended | Two fiscal quarters ended | ||||||||||||||||
|
June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
||||||||||||||
| Weighted-average number of common and common equivalent shares outstanding: | |||||||||||||||||
| Basic number of common shares outstanding | 58,567,558 | 58,200,702 | 58,519,286 | 58,128,989 | |||||||||||||
| Dilutive effect of equity awards | 588,622 | 676,321 | 648,072 | 645,174 | |||||||||||||
| Diluted number of common and common equivalent shares outstanding | 59,156,180 | 58,877,023 | 59,167,358 | 58,774,163 | |||||||||||||
| As reported on a GAAP Basis: | |||||||||||||||||
| Basic net income per common share: | |||||||||||||||||
| Net income | $ | 19,673,000 | $ | 20,805,000 | $ | 61,088,000 | $ | 53,080,000 | |||||||||
| Income allocated to participating securities | (265,000 | ) | (271,000 | ) | (811,000 | ) | (651,000 | ) | |||||||||
| Net income available to common shareholders | $ | 19,408,000 | $ | 20,534,000 | $ | 60,277,000 | $ | 52,429,000 | |||||||||
| Basic net income per common share | $ | 0.33 | $ | 0.35 | $ | 1.03 | $ | 0.90 | |||||||||
| Diluted net income per common share: | |||||||||||||||||
| Net income | $ | 19,673,000 | $ | 20,805,000 | $ | 61,088,000 | $ | 53,080,000 | |||||||||
| Income allocated to participating securities | (263,000 | ) | (268,000 | ) | (803,000 | ) | (644,000 | ) | |||||||||
| Net income available to common shareholders | $ | 19,410,000 | $ | 20,537,000 | $ | 60,285,000 | $ | 52,436,000 | |||||||||
| Diluted net income per common share | $ | 0.33 | $ | 0.35 | $ | 1.02 | $ | 0.89 | |||||||||
| As adjusted (a): | |||||||||||||||||
| Basic net income per common share: | |||||||||||||||||
| Net income | $ | 27,668,000 | $ | 22,353,000 | $ | 75,378,000 | $ | 56,021,000 | |||||||||
| Income allocated to participating securities | (375,000 | ) | (291,000 | ) | (1,002,000 | ) | (687,000 | ) | |||||||||
| Net income available to common shareholders | $ | 27,293,000 | $ | 22,062,000 | $ | 74,376,000 | $ | 55,334,000 | |||||||||
| Basic net income per common share | $ | 0.47 | $ | 0.38 | $ | 1.27 | $ | 0.95 | |||||||||
| Diluted net income per common share: | |||||||||||||||||
| Net income | $ | 27,668,000 | $ | 22,353,000 | $ | 75,378,000 | $ | 56,021,000 | |||||||||
| Income allocated to participating securities | (372,000 | ) | (288,000 | ) | (992,000 | ) | (680,000 | ) | |||||||||
| Net income available to common shareholders | $ | 27,296,000 | $ | 22,065,000 | $ | 74,386,000 | $ | 55,341,000 | |||||||||
| Diluted net income per common share | $ | 0.46 | $ | 0.37 | $ | 1.26 | $ | 0.94 | |||||||||
| (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 $8.0 million and $14.3 million in after-tax expenses from these results for the fiscal quarter and two fiscal quarters ended June 29, 2013, respectively. The Company has excluded $1.6 million and $2.9 million in after-tax expenses from these results for fiscal quarter and two fiscal quarters ended June 30, 2012, respectively. |
Source: Carter’s, Inc.
Carter’s, Inc.
Sean McHugh, 404-745-2889
Vice President,
Investor
Relations & Treasury