Payless ShoeSource ramps up $30.2mn in Q1 earnings

20 May '05

7 min read

the company's effective income tax rate on continuing operations was 28.6 percent during the first quarter 2005, including the benefit of released tax reserves relating to favorable income tax audit settlements. for the full fiscal year 2005, the effective income tax rate is expected to be approximately 35 percent, exclusive of the reserve release which was specific to the first quarter.

balance sheet
the company ended the first quarter 2005 with cash of $303.3 million, an increase of $178.0 million over the cash and marketable securities balance as of the end of the first quarter 2004.

total inventories at the end of the first quarter 2005 were $383.9 million compared to $422.2 million at the end of first quarter 2004.

inventory per store decreased by 5.6 percent. there were no borrowings on the company's revolving credit facility outstanding as of the end of the first quarter 2005.

capital expenditures
total capital expenditures were $13.8 million during the first quarter 2005. during fiscal year 2005, payless intends capital expenditures to be approximately $70 million. this reduction in capital expenditures compared with recent years is consistent with the company's focus on execution of merchandise authority in its core business.

store count
in the first quarter 2005, the company opened 16 new stores and closed 10, for a net increase of 6 stores. the company also relocated 23 stores. the store count asny also relocated 23 stores. the store count as of the end of the first quarter 2005 was 4,646. as of the end of the first quarter 2004, the store count for continuing operations was 4,824.

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