Net interest expense in the six months of 2005 was $15 million, flat to last year.
Net Income
Net income increased in the six months of 2005 to $126 million, or 5.4 percent of net sales, from $119 million in 2004, or 5.6 percent of net sales. Diluted EPS increased 6.5 percent to $1.15 in the six months of 2005, up from $1.08 in 2004.
Average diluted shares outstanding decreased by 1.5 million shares to 109.2 million in the six months of 2005 on a year-over-year basis, as a result of the impact of shares repurchased during the second quarter of 2005, partially offset by the exercise of stock options and the effect of dilutive securities.
BALANCE SHEET AND CASH FLOW
They ended the second quarter of 2005 with $178 million in cash and marketable securities, compared to $272 million at the end of the second quarter of 2004, and with $503 million of debt outstanding compared to $463 million at the end of the second quarter of 2004.
This $134 million increase in our net debt position is primarily attributable to $105 million in share repurchases, the 160 million euro ($192 million based upon the exchange rate on such date) final payment made in connection with the fiscal 2001 acquisition of Mexx Europe, $144 million in capital and in-store expenditures, the $29 million payment made in connection with the acquisition of C & C California, the $35 million payment made in connection with the purchase of an additional 8.25 percent of the equity interest of Lucky Brand and the 45 million Canadian dollars ($37 million based upon the exchange rate on such date) final payment made in connection with the fiscal 2002 acquisition of Mexx Canada over the prior twelve months, partially offset by cash flow from operations for the prior twelve months of $424 million and the effect of foreign currency translation on our Eurobond (which reduced our debt balance by $7 million).
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
