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SEC Filings, Earing Reports, Press Releases
Kohl's Corp. Reports Operating Results (10-Q/A)
Posted by: gurufocus (IP Logged)
Date: September 13, 2011 05:10PM
Kohl's Corp. (KSS) filed Amended Quarterly Report for the period ended 2011-04-30.
Highlight of Business Operations:
Diluted earnings per share increased 10% to $0.69 in the first quarter of 2011, compared to $0.63 in the first quarter of 2010. Net income was $201 million for the quarter compared to $195 million in the prior-year quarter.
Depreciation and amortization increased nine percent from $176 million in the first quarter of 2010 to $191 million in the current-year quarter. The increase is primarily attributable to new stores and remodels.
Interest expense of $76 million for the first quarter of 2011 was comparable to $77 million in the first quarter of 2010 as increases in interest on capital lease and financing obligations due to new stores were largely offset by a decrease attributable to the $300 million of debt repaid in March 2011.
In the first quarter of 2011, we repurchased 8.3 million shares of our common stock for $445 million (including $34 million of shares which were purchased, but not settled, at quarter end). The shares were purchased as part of our $3.5 billion share repurchase program. Pursuant to this program, we may repurchase shares from time to time in open market transactions, accelerated stock repurchase programs, tender offers, privately negotiated transactions or by other means. Subject to market conditions, we expect to complete the program by the end of Fiscal 2013.
We repaid $300 million of long-term debt which was due in March 2011. An additional $100 million of long-term debt will be due in October 2011. We expect to replace this debt with new debt financing in the third quarter of 2011. In anticipation of the this debt issuance, we entered into 10-year interest rate swaps in December 2010 and May 2011 to hedge our exposure to the risk of increases in interest rates on $400 million of debt we expect to issue. Amounts related to these financial instruments were not material.
We have various facilities upon which we may draw funds, including a $900 million senior unsecured revolving facility and two demand notes with aggregate availability of $50 million. The $900 million revolving facility expires in October 2011. The co-leads of this facility, The Bank of New York Mellon and Bank of America, have each committed $100 million. The remaining 12 lenders have each committed between $30 and $130 million. There were no draws on these facilities during 2011 or 2010. We expect to replace the $900 million revolving facility in the second quarter of 2011.