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GENESCO Inc. Reports Operating Results (10-Q)

December 09, 2010 | About:
10qk

10qk

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GENESCO Inc. (GCO) filed Quarterly Report for the period ended 2010-10-30.

Genesco Inc. has a market cap of $976.4 million; its shares were traded at around $40.6 with a P/E ratio of 17.4 and P/S ratio of 0.6. Genesco Inc. had an annual average earning growth of 6.4% over the past 10 years.

Highlight of Business Operations:

During the first quarter this year, the board increased the total repurchase authorization under its common stock repurchase plan to $35.0 million. In October 2010, the board restored the total repurchase authorization to $35.0 million. The Company repurchased 864,000 shares at a cost of $24.8 million during the first nine months of Fiscal 2011 of which $1.1 million was not paid in the third quarter but included in other accrued liabilities in the Condensed Consolidated Balance Sheets. All of the $24.8 million in repurchases for the nine months this year, except $0.6 million, was repurchased under the original $35.0 million authorization. The Company did not repurchase any shares during the nine months ended October 31, 2009.

The Company recorded a pretax charge to earnings of $2.6 million in the third quarter of Fiscal 2010 for asset impairments. The Company recorded a pretax charge to earnings of $10.9 million in the first nine months of Fiscal 2010, including $10.5 million in asset impairments, $0.3 million for other legal matters and $0.1 million for lease terminations.

Earnings from continuing operations before income taxes (pretax earnings) for the third quarter ended October 30, 2010 were $26.4 million compared to $17.4 million for the third quarter ended October 31, 2009. Pretax earnings for the third quarter ended October 30, 2010 included restructuring and other charges of $2.1 million for retail store asset impairments. Pretax earnings for the third quarter ended October 31, 2009 included restructuring and other charges of $2.6 million, primarily for retail store asset impairments.

Corporate and other expense for the third quarter ended October 30, 2010 was $12.5 million compared to $10.3 million for the third quarter ended October 31, 2009. Corporate expense in the third quarter this year included $2.1 million in restructuring and other charges, primarily for retail store asset impairments. Last years expense in the third quarter included $2.6 million in restructuring and other charges, primarily for retail store asset impairments. Offsetting the year-over-year reduction in the charges listed above, corporate and other expense increased primarily due to increased bonus accruals as a result of improving performance in the third quarter this year.

Earnings from continuing operations before income taxes (pretax earnings) for the nine months ended October 30, 2010 were $37.0 million compared to $8.2 million for the nine months ended October 31, 2009. Pretax earnings for the nine months ended October 30, 2010 included restructuring and other charges of $6.6 million, primarily for retail store asset impairments and other legal matters. Pretax earnings for the nine months ended October 31, 2009 included a loss on the early retirement of debt of $5.1 million and restructuring and other charges of $10.9 million primarily for retail store asset impairments, other legal matters and lease terminations.

Net earnings for the nine months ended October 30, 2010 were $22.4 million ($0.93 diluted earnings per share) compared to $3.0 million ($0.13 diluted earnings per share) for the nine months ended October 31, 2009. Net earnings for the nine months ended October 30, 2010 included a $0.8 million ($0.04 diluted loss per share) charge to earnings (net of tax) primarily for anticipated costs of environmental remediation related to facilities formerly operated by the Company. Net earnings for the nine months ended October 31, 2009 included a $0.3 million ($0.02 diluted loss per share) charge to earnings (net of tax) primarily for anticipated costs of environmental remediation related to facilities formerly operated by the Company. The Company recorded an effective income tax rate of 37.5% in the first nine months this year compared to 60.5% in the same period last year. The variance in the effective tax rate for the first nine months this year compared to the first nine months last year is primarily attributable to the non-deductibility of certain items incurred in connection with the inducement of the conversion of the 4 1/8% Debentures for common stock in the first nine months last year.

Read the The complete Report

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