UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15 (d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
|
Date
of Report (date of earliest event reported)
|
August
17, 2006
|
THE
CHILDREN'S PLACE RETAIL STORES, INC.
|
(Exact
name of registrant as specified in its charter)
|
|
DELAWARE
|
0-23071
|
31-1241495
|
||
|
(State
or other jurisdiction
of
incorporation)
|
(Commission
File
Number)
|
(IRS
Employer ID
Number)
|
|
915
Secaucus Road, Secaucus, New Jersey
|
07094
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
Registrant's
Telephone Number, including area code:
|
(201)
558-2400
|
|
Not
Applicable
|
|
(Former
name or former address, if changed since last
report)
|
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
|
On
August
17, 2006, The Children’s Place Retail Stores, Inc. (the “Company”) issued a
press release announcing certain financial information for the second quarter
and six months ended July 29, 2006. A copy of the Company’s press release is
included as Exhibit 99.1 hereto.
Item
5.02 Departure of Directors or Principal Officers; Election of Directors;
Appointment of Principal Officers.
On
August
17, 2006, the Company announced that its Board of Directors has appointed
James
Goldman to its Board of Directors as a Class I director and as a member of
the
Compensation Committee of the Board of Directors.
Mr.
Goldman is not a party to any arrangement or understanding with any person
pursuant to which Mr. Goldman was selected as a director,
nor is
Mr. Goldman a party to any transaction, or series of transactions, required
to
be disclosed pursuant to Item 404(a) of Regulation S-K.
Item
9.01 Financial Statements and Exhibits
(a) Financial
Statements of Business Acquired: Not applicable
(b) Pro
Forma
Financial Information: Not applicable
(c) Shell
Company Transactions: Not applicable
(d) Exhibits:
99.1 Press
Release dated August 17, 2006.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
| THE CHILDREN'S PLACE RETAIL STORES, INC. | ||
| |
|
|
| By: | /s/ Steven Balasiano | |
|
Name: Steven Balasiano, Senior Vice President |
||
| Chief Administrative Officer, General Counsel and Secretary | ||
FOR
IMMEDIATE RELEASE
THE
CHILDREN’S PLACE RETAIL STORES, INC. REPORTS SECOND QUARTER 2006 FINANCIAL
RESULTS
~
Loss Per Share of $0.53 Compared to Loss Per Share of $0.68 Last Year
~
~
Net
Sales Increased 24%; Comparable Store Sales Increased 16% ~
Secaucus,
New Jersey - August 17, 2006 - The Children’s Place Retail Stores, Inc. (Nasdaq:
PLCE)
today
reported financial results for the fiscal second quarter and twenty-six weeks
ended July 29, 2006.
Second
Quarter
|
·
|
Consolidated
net sales for the second quarter ended July 29, 2006 increased 24%
to
$395.6 million compared to $318.7 million last year. Second quarter
sales
were comprised of $269.4 million from The Children’s Place brand, a 25%
increase over last year, and $126.2 million from Disney Store, a
22%
increase over last year.
|
|
·
|
Consolidated
comparable store sales increased 16% in the quarter. The Children’s Place
brand’s comparable store sales increased 16% on top of last year’s 4%
increase. Disney Store’s comparable store sales increased 15%.
|
|
·
|
Net
loss was $15.2 million, compared to a loss of $18.9 million last
year.
|
|
·
|
Loss
per share was $0.53, including equity compensation expense of $2.7
million
pre tax, compared to a loss per share of $0.68 in the second quarter
last
year. Last year’s loss per share as originally reported was $0.66, prior
to the adoption of FSP FAS No. 13-1, which required the expensing
of rent
during construction and increased the loss per share by $0.02 to
$0.68.
|
|
·
|
During
the second quarter, the Company opened 14 Children’s Place stores and five
Disney Stores. In addition, the Company closed one Children’s Place
store.
|
Six-Month
Period
|
·
|
Consolidated
net sales for the six-month period ended July 29, 2006 increased
19% to
$822.1 million compared to $688.0 million last year. Sales for the
six-month period were comprised of $591.4 million from The Children’s
Place brand, a 19% increase over last year, and $230.7 million from
Disney
Store, a 20% increase over last
year.
|
|
·
|
Consolidated
comparable store sales increased 12% for the six-month period. The
Children’s Place brand’s comparable store sales increased 11% on top of
last year’s 9% increase. Disney Store’s comparable store sales increased
15%.
|
|
·
|
Net
earnings for the six-month period were break-even compared to a net
loss
of $9.1 million last year.
|
|
·
|
Earnings
per share were break-even, including equity compensation expense
of $5.7
million pre tax, compared to a loss per share of $0.33 last year.
Last
year’s loss per share as originally reported was $0.29, prior to the
adoption of FSP FAS No. 13-1, which required the expensing of rent
during
construction and increased the loss per share by $0.04 to $0.33.
Last
year’s loss per share also included a $0.03 non-cash charge related to
acquired Disney Store inventory.
|
|
·
|
During
the six-month period, the Company opened 22 Children’s Place stores and
five Disney Stores. In addition, the Company closed two Children’s Place
stores and two Disney Stores.
|
“We
are
pleased with our second quarter and first half financial results,” said Ezra
Dabah, Chairman and Chief Executive Officer of The Children’s Place Retail
Stores, Inc. “We drove substantial improvements at both brands through
consistent execution of our strategies. We are particularly pleased with our
first half results, are encouraged by our initial start to the Back-to-School
season, and we look forward to the second half of the year.”
-
more
-
PLCE
-Second Quarter 2006 Financial Results
Page
2
The
Children’s Place will host a webcast of its second quarter conference call today
at 10:00 a.m., Eastern Time. Interested parties are invited to listen to the
call at the Company’s web site, www.childrensplace.com.
An
archive of the webcast will be available on the site through Thursday, August
24, 2006.
The
Children’s Place Retail Stores, Inc. is a leading specialty retailer of
children’s merchandise. The Company designs, contracts to manufacture and sells
high-quality, value-priced merchandise under the proprietary “The Children’s
Place” and licensed “Disney Store” brand names. As of July 29, 2006, the Company
owned and operated 822 The Children’s Place stores and 320 Disney Stores in
North America and The Children’s Place online store at www.childrensplace.com.
This
press release and above referenced call may contain certain forward-looking
statements regarding future circumstances. These forward-looking statements
are
based upon the Company’s current expectations and assumptions and are subject to
various risks and uncertainties that could cause actual results to differ
materially from those contemplated in such forward-looking statements including,
in particular, the risks and uncertainties described in the Company’s filings
with the Securities and Exchange Commission. Actual
results, events, and performance may differ. Readers or listeners (on the call)
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. We undertake no obligation to release
publicly any revisions to these forward-looking statements that may be made
to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. The inclusion of any statement in this
release does not constitute an admission by The Children's Place or any other
person that the events or circumstances described in such statement are
material.
| Contact: |
The
Children’s Place Retail Stores, Inc.
Susan
Riley, Chief Financial Officer, 201/453-7160
Susan
LaBar, Investor Relations Analyst
201/453-6955
|
(Tables
Follow)
THE
CHILDREN’S PLACE RETAIL STORES, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(In
thousands, except per share amounts)
(Unaudited)
|
13
Weeks Ended:
|
26
Weeks Ended:
|
||||||||||||
|
July
29,
2006
|
July
30,
2005
|
July
29,
2006
|
July
30,
2005
|
||||||||||
|
Net
sales
|
$
|
395,614
|
$
|
318,750
|
$
|
822,123
|
$
|
687,967
|
|||||
|
Cost
of sales
|
261,452
|
219,675
|
520,378
|
447,362
|
|||||||||
|
Gross
profit
|
134,162
|
99,075
|
301,745
|
240,605
|
|||||||||
|
Selling,
general and administrative
expenses
|
143,688
|
117,892
|
273,118
|
231,316
|
|||||||||
|
Depreciation
and amortization
|
15,489
|
12,496
|
29,696
|
24,620
|
|||||||||
|
Operating
(loss) income
|
(25,015
|
)
|
(31,313
|
)
|
(1,069
|
)
|
(15,331
|
)
|
|||||
|
Interest
income, net
|
796
|
335
|
1,673 |
430
|
|||||||||
|
(Loss)
income before income taxes
|
(24,219
|
)
|
(30,978
|
)
|
604
|
(14,901
|
)
|
||||||
|
(Benefit)
provision for income taxes
|
(8,973
|
)
|
(12,067
|
)
|
509
|
(5,788
|
)
|
||||||
|
Net
(loss) income
|
$
|
(15,246
|
)
|
$
|
(18,911
|
)
|
$
|
95
|
$
|
(9,113
|
)
|
||
|
Basic
(loss) income per share
|
$
|
(0.53
|
)
|
(0.68
|
)
|
$
|
0.00
|
$
|
(0.33
|
)
|
|||
|
Basic
weighted average number of shares outstanding
|
28,899
|
27,683
|
28,571
|
27,533
|
|||||||||
|
Diluted
(loss) income per share
|
$
|
(0.53
|
)
|
$
|
(0.68
|
)
|
$
|
0.00
|
$
|
(0.33
|
)
|
||
|
Diluted
weighted average number
of
shares outstanding
|
28,899
|
27,683
|
29,651
|
27,533
|
|||||||||
Note:
Prior periods presented include the retrospective application of FSP FAS
13-1.
THE
CHILDREN’S PLACE RETAIL STORES, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
thousands)
(Unaudited)
|
July
29, 2006
|
January
28, 2006
|
July
30, 2005
|
||||||||
|
Current
assets:
|
||||||||||
|
Cash
and investments
|
$
|
110,084
|
$
|
173,323
|
$
|
121,958
|
||||
|
Accounts
receivable
|
34,703
|
28,971
|
22,162
|
|||||||
|
Inventories
|
256,093
|
214,702
|
180,708
|
|||||||
|
Other
current assets
|
62,047
|
42,998
|
60,551
|
|||||||
|
Total
current assets
|
462,927
|
459,994
|
385,379
|
|||||||
|
Property
and equipment, net
|
282,711
|
248,628
|
208,507
|
|||||||
|
Other
assets, net
|
57,953
|
48,698
|
20,413
|
|||||||
|
Total
assets
|
$
|
803,591
|
$
|
757,320
|
$
|
614,299
|
||||
|
Current
liabilities:
|
||||||||||
|
Revolving
credit facility
|
$
|
0
|
$
|
0
|
$
|
23,090
|
||||
|
Accounts
payable
|
103,626
|
82,826
|
82,065
|
|||||||
|
Accrued
expenses and other current liabilities
|
103,904
|
143,238
|
89,330
|
|||||||
|
Total
current liabilities
|
207,530
|
226,064
|
194,485
|
|||||||
|
Other
liabilities
|
158,481
|
138,390
|
112,711
|
|||||||
|
Total
liabilities
|
366,011
|
364,454
|
307,196
|
|||||||
|
Stockholders’
equity
|
437,580
|
392,866
|
307,103
|
|||||||
|
Total
liabilities and stockholders’ equity
|
$
|
803,591
|
$
|
757,320
|
$
|
614,299
|
||||
Note:
The
July 30, 2005 balance sheet includes the retrospective application of FSP FAS
13-1.
THE
CHILDREN’S PLACE RETAIL STORES, INC.
SEGMENT
INFORMATION
(In
millions)
(Unaudited)
|
Thirteen
Weeks Ended July 29, 2006
|
|||||||||||||
|
The
Children’s
Place
|
Disney
Store
|
Shared
Services
|
Total
Company
|
||||||||||
|
|
|
|
|
||||||||||
|
Net
sales
|
$
|
269.4
|
$
|
126.2
|
$
|
-
|
$
|
395.6
|
|
||||
|
Segment
operating profit (loss)
|
3.5
|
(4.5)
|
(24.0)
|
(25.0)
|
|||||||||
|
Operating
profit (loss) as a percent of net sales
|
1.3
|
%
|
(3.6)
|
%
|
N/A
|
(6.3)
|
%
|
||||||
|
Thirteen
Weeks Ended July 30, 2005
|
|||||||||||||
|
The
Children’s
Place
|
Disney
Store
|
Shared
Services
|
Total
Company
|
||||||||||
|
|
|
|
|
||||||||||
|
Net
sales
|
$
|
215.3
|
$
|
103.4
|
$
|
-
|
$
|
318.7
|
|
||||
|
Segment
operating profit (loss)
|
(2.1)
|
(11.0)
|
(18.2)
|
(31.3)
|
|||||||||
|
Operating
profit (loss) as a percent of net sales
|
(1.0)
|
%
|
(10.6)
|
%
|
N/A
|
(9.8)
|
%
|
||||||
|
Twenty
Six Weeks Ended July 29, 2006
|
|||||||||||||
|
The
Children’s
Place
|
Disney
Store
|
Shared
Services
|
Total
Company
|
||||||||||
|
|
|
|
|
||||||||||
|
Net
sales
|
$
|
591.4
|
$
|
230.7
|
$
|
-
|
$
|
822.1
|
|
||||
|
Segment
operating profit (loss)
|
56.0
|
(10.9)
|
(46.2)
|
(1.1)
|
|||||||||
|
Operating
profit (loss) as a percent of net sales
|
9.5
|
%
|
(4.7)
|
%
|
N/A
|
(0.1)
|
%
|
||||||
|
Twenty
Six Weeks Ended July 30, 2005
|
|||||||||||||
|
The
Children’s
Place
|
Disney
Store
|
Shared
Services
|
Total
Company
|
||||||||||
|
|
|
|
|
||||||||||
|
Net
sales
|
$
|
496.0
|
$
|
192.0
|
$
|
-
|
$
|
688.0
|
|
||||
|
Segment
operating profit (loss)
|
45.3
|
(25.0)
|
(35.6)
|
(15.3)
|
|||||||||
|
Operating
profit (loss) as a percent of net sales
|
9.1
|
%
|
(13.0)
|
%
|
N/A
|
(2.2)
|
%
|
||||||
Note:
Prior periods presented include the retrospective application of FSP FAS
13-1.
###