This may be helpful for Denise and Jennifer ( I don't know ) -- Marketing370-Consumer Behavior

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Date Posted: 16:12:00 04/03/02 Wed
Author: Starr
Subject: This may be helpful for Denise and Jennifer ( I don't know )

KMART CORPORATION REPORTS 1997 SECOND-QUARTER RESULTS
TROY, Mich., August 14, 1997 -- Kmart Corporation (NYSE: KM) today reported net income from continuing operations of $31 million, or $0.06 per share, in the second quarter of 1997, compared with net income from continuing operations in the second quarter of 1996 of $23 million, or $0.05 per share.
Total sales in the second quarter were $7.846 billion, an increase of 3.7% from $7.566 billion from the second quarter of 1996. On a comparable store basis, consolidated sales for the quarter increased 5.5%.
Gross margin for the second quarter of 1997 was 21.0% of sales versus 22.3% last year, reflecting markdowns related to the clearance of women's apparel and other seasonal merchandise.
Selling, general and administrative (SG&A) expenses declined by $42 million for the quarter, resulting in an SG&A ratio for the second quarter of 19.1% of sales versus 20.3% for the comparable 1996 period.
"Sales in our U.S. Kmart stores increased 5.6% on a comparable store basis for the first six months of 1996, which meets our expectations. Most Kmart merchandise categories reported improved sales performance thus far this year, led by housewares and home decor, cosmetics and fragrances, and consumables," said Floyd Hall, chairman, president and chief executive officer. "Strong sales also helped expense ratios, which improved by 120 basis points in the second quarter. Total spending on SG&A improved both in the quarter and over the first half of 1997, totaling $70 million year-to-date. Gross margin rates for the second quarter were depressed by clearance of slow-moving inventory. Although we have been disappointed by the volume and margin in our women's apparel to date, we enter the third quarter with seasonal inventory levels below last year, and we expect improved softline performance in the second half of 1997."
On a continuing basis, the first half of 1997 resulted in earnings of $45 million, or $0.09 per share, as compared with a loss from continuing operations of $13 million, or $0.02 per share in the first half of 1996.
Net earnings for the first half of 1997 were $45 million, or $0.09 per share, as compared with a net loss for the first half of 1996 of $65 million, or $0.13 per share. Discontinued operations in 1996 included income from Builders Square of $9 million or $0.02 per share and a $61 million charge, or $0.13 per share, resulting from participation in the initial public offering of Thrifty PayLess Holdings, Inc. and the revaluation of the Company's remaining holding at that time.
KMART CORPORATION
SALES AND OPERATING RESULTS
13 WEEKS ENDED JULY 30, 1997 AND JULY 31, 1996
SALES
% Change
All Comparable
(Millions U.S. $) 7-30-97 7-31-96 Stores Stores

General Merchandise-
United States $ 7,749 $ 7,336 5.6 5.5
International (a) 97 230 (57.5) -
Total General Merchandise $ 7,846 $ 7,566 3.7 5.5

OPERATING RESULTS
(Millions U.S. $) 7-30-97 7-31-96 % Change

General Merchandise-
United States $ 151 $ 168 (10.1)
International (a) 1 (16) 106.3
Total General Merchandise $ 152 $ 152 -

(a) Kmart Corporation completed the divestiture of its remaining International operations in June 1997.
KMART CORPORATION
SALES AND OPERATING RESULTS

Kmart Corporation Announces Third Quarter 1998 Net Income
TROY, Mich., November 12, 1998-- Kmart Corporation (NYSE:KM) today reported net income of $38 million, or $0.08 basic earnings per share, for the third quarter, compared with net income of $18 million, or $0.04 basic earnings per share for the third quarter of 1997.
Total consolidated sales in the 1998 third quarter were $7.642 billion, an increase of 4.5% from $7.315 billion for the third quarter of 1997, while comparable store sales for the quarter increased 4.2%. The gross margin rate for the period was 22.1% of sales versus 22.3% last year. Selling, general and administrative (SG&A) expenses for the quarter were $1.540 billion compared with $1.492 billion for the 1997 period, resulting in a SG&A to sales ratio of 20.1% versus 20.4%.
"With our tenth consecutive quarter of increased earnings per share, the turnaround at Kmart continues on track," said Floyd Hall, Chairman, President and CEO. "Sales increases in consumables and hardlines areas, such as pharmacy, health and beauty care, and home-related items, offset weakness in apparel caused by unseasonably warm weather in late September and October. Selling, general and administrative expense ratios improved by 30 basis points in the quarter, continuing the favorable trend year to date. Interest expense was also favorable, reflecting lower levels of borrowings."
Net income for the first nine months of 1998 increased 162 percent over 1997 to $165 million, or $0.34 basic earnings per share, as compared with net income of $63 million, or $0.13 basic earnings per share in the first nine months of 1997.
Under FAS 128, preferred securities are not included in the calculation of diluted earnings per share for the third quarter of either 1997 or 1998 due to their anti-dilutive effect. However, consistent with disclosure required by the Securities and Exchange Commission, if such securities were included in the calculation, diluted earnings per share would have been $0.09 and $0.06 for the third quarters of 1998 and 1997, and $0.36 and $0.18 for the first nine months of 1998 and 1997, respectively.
Kmart Corporation serves America with 2,154 Kmart retail outlets, including 45 stores that opened October 29, 1998. Kmart Corporation common stock is listed on the New York, Pacific, and Chicago Stock Exchanges.
KMART CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in millions, except per share data) 13 Weeks
Ended
10-28-98 13 Weeks
Ended
10-29-97
Sales $ 7,642 $ 7,315
Cost of sales, buying and occupancy 5,954 5,683
Gross margin 1,688 1,632
Selling, general and administrative expenses 1,540 1,492
Income before interest, income taxes and dividends on convertible preferred securities 148 140
Interest expense, net 76 96
Income tax provision 21 13
Dividends on convertible preferred securities, net of income taxes 13 13
Net income $ 38 $ 18

Basic / diluted income per common share $ 0.08 $ 0.04

Basic weighted average shares outstanding 492.8 488.0
Diluted weighted average shares outstanding 564.0 560.5
KMART CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in millions, except per share data) 39 Weeks
Ended
10-28-98 39 Weeks
Ended
10-29-97
Sales $ 23,273 $ 22,424
Cost of sales, buying and occupancy 18,198 17,517
Gross margin 5,075 4,907
Selling, general and administrative expenses 4,550 4,480
Voluntary early retirement program 19 -
Income before interest, income taxes and dividends on convertible preferred securities 506 427
Interest expense, net 220 286
Income tax provision 83 41
Dividends on convertible preferred securities, net of income taxes 38 37
Net income $ 165 $ 63

Basic / diluted income per common share $ 0.34 $ 0.13

Basic weighted average shares outstanding 491.7 486.8
Diluted weighted average shares outstanding 564.8 559.0
KMART CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS
39 Weeks Ended
(Amounts in millions) 10-28-98 10-29-97
Cash Flows From Operating Activities:
Net income from retail operations $ 165 $ 63
Adjustments to reconcile net income to net cash provided by operating activities:
Voluntary early retirement charge 19 -
Depreciation and amortization 498 496
Increase in accounts receivable (213) (114)
Increase in operating supplies and prepaids (62) (37)
Increase in inventories (1,693) (1,439)
Increase in accounts payable 1,096 815
Deferred income taxes and taxes payable 156 25
Decrease in other long-term liabilities (56) (46)
Changes in certain assets and liabilities 20 85
Net cash used for operating activities (70) (152)

Cash Flows From Investing Activities:
Proceeds from divestitures 87 145
Proceeds from real estate financing and other 23 413
Capital contributions from minority interests - (55)
Capital expenditures (745) (489)
Other, net (-) (70)
Net cash used for investing activities (635) (56)

Cash Flows From Financing Activities:
Proceeds from issuance of long-term debt and notes payable 750 901
Changes in common stock and treasury stock 52 36
Payments on capital lease obligations (65) (85)
Payments on long-term debt and notes payable (180) (770)
Net cash provided by financing activities 557 82

Net change in cash and equivalents: (148) (126)
Cash and equivalents at beginning of year 498 406
Cash and equivalents at end of period $ 350 $ 280

KMART CORPORATION

CONSOLIDATED BALANCE SHEETS
(Amounts in millions) 10-28-98 10-29-97 1-28-98
ASSETS
Current Assets:
Cash and equivalents $ 350 $ 280 $ 498
Merchandise inventories 8,060 7,793 6,367
Other current assets 844 1,015 611
Total current assets 9,254 9,088 7,476

Property and equipment, net 5,852 5,442 5,472
Property held for resale 207 241 271
Other assets and deferred charges 236 264 339
TOTAL ASSETS $ 15,549 $ 15,035 $ 13,558
LIABILITIES AND EQUITY
Current Liabilities:
Long-term debt due within one year $ 60 $ 76 $ 78
Trade accounts payable 3,019 2,824 1,923
Accrued payrolls and other liabilities 1,242 1,017 1,064
Taxes other than income taxes 240 250 209
Total current liabilities 4,561 4,167 3,274

Long-term debt and notes payable 2,313 2,347 1,725
Capital lease obligations 1,114 1,362 1,179
Other long-term liabilities 928 921 965
Convertible preferred securities, net 983 979 981
Common stock 493 489 489
Capital in excess of par value 1,654 1,605 1,605
Retained earnings 3,503 3,165 3,340
TOTAL LIABILITIES AND EQUITY $ 15,549 $ 15,035 $ 13,558

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