Pier 1 Imports Inc. (NYSE:PIR) filed Quarterly Report for the period ended 2010-08-28.
Pier 1 Imports Inc. has a market cap of $958.3 million; its shares were traded at around $8.18 with a P/E ratio of 15.7 and P/S ratio of 0.7. PIR is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Chuck Royce of Royce& Associates, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Mario Gabelli of GAMCO Investors, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:At the end of the second quarter, the Companys minimum operating lease commitments remaining for fiscal 2011 were $104.9 million. The present value of total existing minimum operating lease commitments discounted at 10% was $603.9 million at the fiscal 2011 second quarter end compared to $682.8 million at the fiscal 2010 second quarter end.
During the first six months of fiscal 2011, the Company sold its distribution center near Chicago, Illinois for a purchase price of $11.8 million and recorded a gain of approximately $1.6 million related to this transaction. The Company repaid approximately $9.5 million of industrial revenue bonds related to the distribution center with proceeds received from the sale. As of August 28, 2010, the Company had $16.5 million classified as the current portion of long-term debt, which relates to the Companys 6.375% convertible senior notes due 2036. The Company anticipates that these notes will be repaid on or before February 15, 2011.
The Companys bank facilities at the end of the second quarter of fiscal 2011 included a $300 million credit facility, expiring in May 2012, which was secured by the Companys eligible merchandise inventory and third-party credit card receivables. As of August 28, 2010, the Company had no outstanding cash borrowings and had utilized $62.0 million in letters of credit and bankers acceptances, which was significantly less than the same period last year. If advances under the facility result in availability of less than $30.0 million, the Company will be required to comply with a fixed charge coverage ratio as stated in the agreement. The Company does not anticipate falling below this minimum availability in the foreseeable future. As of August 28, 2010, the Companys calculated borrowing base was $279.0 million. After excluding the required minimum of $30.0 million and the $62.0 million in utilized letters of credit and bankers acceptances from the borrowing base, $187.0 million remained available for cash borrowings. As of the end of the second quarter of fiscal 2011, the Company was in compliance with required covenants stated in the agreement.
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