Interviews
'We will continue to deliver newness in merchandise assortments' - JCP CEO
16 May '09
4 min read
Financial Condition
The cash and cash equivalents balance as of the end of the first quarter of 2009 was $2.1 billion, an increase of about $100 million over the same period last year, and free cash flow year over year for the quarter improved $308 million. Free cash flow, a non-GAAP measure, is defined as net cash provided by operating activities of continuing operations less capital expenditures and dividends paid, plus proceeds from sales of assets. A reconciliation of free cash flow for the first quarter to the most directly comparable GAAP measure for the same period is included in this release. Liquidity was further enhanced in the quarter through the renewal of the $750 million bank line of credit.
2009 Second Quarter and Full Year Guidance
Management's 2009 second quarter guidance is as follows:
• Total sales: decrease 7 to 10 percent.
• Comparable store sales: decrease 9 to 12 percent.
• Gross margin rate: modest improvement versus last year.
• SG&A expenses: approximately flat to last year.
• Depreciation and amortization: approximately $120 million.
• Pre-opening expenses: approximately $12 million.
• Operating income: expected to decline versus last year as a result of lower sales volume and higher non-cash pension expense.
• Interest expense: approximately $66 million.
• Income tax rate: approximately 37 percent.
• Average shares for EPS calculation: approximately 222 million average basic shares of common stock.
• Earnings per share: loss in the range of $0.15 to $0.25 per share.
The Company continues to anticipate a challenging consumer environment over the remainder of 2009, and has not changed its operating performance outlook for the remaining three quarters of the year. However, incorporating the above-plan operating performance during the first quarter, management now expects full year comparable store sales to decrease approximately 9 percent and full year earnings to be in a range of $0.50 to $0.65 per share.
The cash and cash equivalents balance as of the end of the first quarter of 2009 was $2.1 billion, an increase of about $100 million over the same period last year, and free cash flow year over year for the quarter improved $308 million. Free cash flow, a non-GAAP measure, is defined as net cash provided by operating activities of continuing operations less capital expenditures and dividends paid, plus proceeds from sales of assets. A reconciliation of free cash flow for the first quarter to the most directly comparable GAAP measure for the same period is included in this release. Liquidity was further enhanced in the quarter through the renewal of the $750 million bank line of credit.
2009 Second Quarter and Full Year Guidance
Management's 2009 second quarter guidance is as follows:
• Total sales: decrease 7 to 10 percent.
• Comparable store sales: decrease 9 to 12 percent.
• Gross margin rate: modest improvement versus last year.
• SG&A expenses: approximately flat to last year.
• Depreciation and amortization: approximately $120 million.
• Pre-opening expenses: approximately $12 million.
• Operating income: expected to decline versus last year as a result of lower sales volume and higher non-cash pension expense.
• Interest expense: approximately $66 million.
• Income tax rate: approximately 37 percent.
• Average shares for EPS calculation: approximately 222 million average basic shares of common stock.
• Earnings per share: loss in the range of $0.15 to $0.25 per share.
The Company continues to anticipate a challenging consumer environment over the remainder of 2009, and has not changed its operating performance outlook for the remaining three quarters of the year. However, incorporating the above-plan operating performance during the first quarter, management now expects full year comparable store sales to decrease approximately 9 percent and full year earnings to be in a range of $0.50 to $0.65 per share.
J. C. Penney Company Inc
Popular News
Leave your Comments
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
