Q4 Earnings up 36% to $1.24 per Share; Comp Sales of 4.6%; Total
Sales up 15%; Comp Transactions up 1.2%; FY12 Earnings up 39% to $3.55
per Share; Comp Sales of 6.3%; Total Sales up 11%; Comp Transactions up
2.4%
PHOENIX--(BUSINESS WIRE)--Mar. 6, 2013--
PetSmart, Inc. (NASDAQ: PETM)
today reported financial results for the fourth quarter and fiscal year
2012, and provided guidance for 2013. The fourth quarter and fiscal year
2012 results include an extra week in 2012 compared to 2011. The fourth
quarter of fiscal year 2012 was a 14-week quarter versus the fourth
quarter of fiscal year 2011 which was a 13-week quarter. Fiscal year
2012 was a 53-week year versus fiscal year 2011 which was a 52-week
year. Both the fourth quarter and fiscal year 2012 ended on February 3,
2013. The fourth quarter and fiscal year 2011 ended on January 29, 2012.
Comparable store sales and transactions are calculated on an equivalent
basis and are versus the 14 and 53 weeks ended February 5, 2012.
For the quarter, earnings per share were up 36% to $1.24. Comparable
store sales, or sales in stores open at least a year, grew 4.6%,
benefitting from comparable transactions growth of 1.2%. Total sales for
the quarter were up 15% to $1.9 billion, partially impacted by $3
million in favorable foreign currency fluctuations. Services sales,
which are included in total sales, grew 15% to $194 million.
For the year, the company delivered earnings per share of $3.55, up 39%
compared to $2.55 last year. Comparable store sales grew 6.3%,
benefitting from comparable transactions growth of 2.4%. Total sales for
the year were $6.8 billion, up 11%, including an unfavorable impact from
foreign currency fluctuations of $2 million, and services sales grew 10%
to $740 million.
The impact of the extra week was $126 million in sales and $0.17 in
earnings per share.
During the year, the company generated $696 million in operating cash
flow and spent $138 million in capital expenditures. In addition, the
company repurchased $457 million of PetSmart stock during 2012, with
$175 million repurchased during the fourth quarter. The company also
distributed $84 million in dividends during 2012, ending the year with
$407 million in cash, cash equivalents and restricted cash and zero
borrowings on its credit facility.
“We are pleased to report another quarter of solid earnings growth,”
said Bob Moran, Chairman and Chief Executive Officer. “Our unique
portfolio of solutions centered on our merchandise and service offerings
is further strengthened by our culture of innovation and differentiation
and truly sets us apart from the competition.”
“Guidance for 2013 will be on a GAAP basis; therefore all comparisons
will be 52 weeks for fiscal year 2013 versus 53 weeks for fiscal year
2012. For 2013, we anticipate comparable store sales growth of 2% to 4%
and total sales growth of 2% to 4%. We expect earnings per share between
$3.76 to $3.92, and spending for capital expenditures projects to be
between $140 million to $150 million,” said Chip Molloy, Executive Vice
President and Chief Financial Officer. “For the first quarter of 2013,
we are expecting comparable store sales growth of 2% to 4%, and earnings
per share between $0.92 to $0.98.”
Conference call information
PetSmart management has scheduled a teleconference for 4:30 p.m. EST on
March 6, 2013 to discuss results for the fourth quarter and fiscal year
2012. This teleconference will be webcast live for all investors at www.petm.com.
The webcast will be available until the company announces results for
the first quarter of 2013. In addition, you can listen to the call live
by dialing 866-814-1933 (within the United States and Canada) or
703-639-1365 (for international callers), code 1606485.
A phone replay will be available through April 6, 2013, 11:59 p.m. EDT,
at 888-266-2081 in the United States and Canada, or at 703-925-2533 for
international callers, code 1606485.
About PetSmart
PetSmart,
Inc. (NASDAQ: PETM) is the largest specialty pet retailer of
services and solutions for the lifetime needs of pets. The company
employs approximately 52,000 associates and operates more than 1,278 pet
stores in the United States, Canada and Puerto Rico, over 196 in-store PetSmart®
PetsHotel® dog and cat boarding facilities and is a
leading online provider of pet supplies and pet care information (http://www.petsmart.com).
PetSmart provides a broad range of competitively priced pet food and pet
products; and offers dog training, pet grooming, pet boarding, PetSmart
Doggie Day CampSM day care services and pet adoption
services. Since 1994, PetSmart
Charities, Inc., an independent 501(c)(3) non-profit animal welfare
organization and the largest funder of animal welfare efforts in North
America, has provided more than $165 million in grants and programs
benefiting animal welfare organizations. Through its in-store pet
adoption partnership with PetSmart Charities®, PetSmart has
helped save the lives of nearly 5 million pets.
Forward-looking statements
This news release contains forward-looking statements concerning our
expectations for future performance, including the statements comprising
our 2013 guidance. These "forward-looking statements" are based on
currently available information, operating plans and projections about
future events and trends. They inherently involve risks and
uncertainties that could cause actual results to differ materially from
those predicted in such forward-looking statements. Such risks and
uncertainties include, but are not limited to: changes in general
economic conditions; conditions affecting customer transactions and
average ticket including, but not limited to, weather conditions or
other seasonal events; our ability to compete effectively; disruption of
our supply chain; our ability to effectively manage our growth and
operations; changes in our cost structure; and changes in the legal or
regulatory environment. Undue reliance should not be placed on such
forward-looking statements as they speak only as of the date hereof, and
we undertake no obligation to update these statements to reflect
subsequent events or circumstances except as may be required by law. For
additional information on these and other factors that arise when
investing in PetSmart, please see our filings with the Securities and
Exchange Commission, including our most recent annual report on Form
10-K and subsequent reports on Forms 10-Q and 8-K.
Follow PetSmart on Twitter www.twitter.com/PetSmartTLC
Find
PetSmart on Facebook www.facebook.com/PetSmart
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PetSmart, Inc. and Subsidiaries
|
|
Consolidated Statements of Operations
|
|
(in thousands, except per share and store data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourteen Weeks Ended
|
|
|
|
Thirteen Weeks Ended
|
|
|
|
Fifty-three Weeks Ended
|
|
|
|
Fifty-two Weeks Ended
|
|
|
|
|
|
February 3, 2013
|
|
|
% of Sales
|
|
|
|
January 29, 2012
|
|
|
% of Sales
|
|
|
|
February 3, 2013
|
|
|
% of Sales
|
|
|
|
January 29, 2012
|
|
|
% of Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandise sales
|
|
|
|
$
|
1,675,979
|
|
|
|
89.2
|
%
|
|
|
|
$
|
1,460,090
|
|
|
|
89.1
|
%
|
|
|
|
$
|
5,979,604
|
|
|
|
88.4
|
%
|
|
|
|
$
|
5,401,731
|
|
|
|
88.4
|
%
|
|
Services sales
|
|
|
|
|
193,572
|
|
|
|
10.3
|
%
|
|
|
|
|
168,479
|
|
|
|
10.3
|
%
|
|
|
|
|
740,471
|
|
|
|
11.0
|
%
|
|
|
|
|
674,859
|
|
|
|
11.0
|
%
|
|
Other revenue
|
|
|
|
|
9,615
|
|
|
|
0.5
|
%
|
|
|
|
|
9,259
|
|
|
|
0.6
|
%
|
|
|
|
|
38,162
|
|
|
|
0.6
|
%
|
|
|
|
|
36,714
|
|
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
1,879,166
|
|
|
|
100.0
|
%
|
|
|
|
|
1,637,828
|
|
|
|
100.0
|
%
|
|
|
|
|
6,758,237
|
|
|
|
100.0
|
%
|
|
|
|
|
6,113,304
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of merchandise sales
|
|
|
|
|
1,134,761
|
|
|
|
60.4
|
%
|
|
|
|
|
1,006,779
|
|
|
|
61.5
|
%
|
|
|
|
|
4,124,432
|
|
|
|
61.0
|
%
|
|
|
|
|
3,783,951
|
|
|
|
61.9
|
%
|
|
Cost of services sales
|
|
|
|
|
141,352
|
|
|
|
7.5
|
%
|
|
|
|
|
123,926
|
|
|
|
7.5
|
%
|
|
|
|
|
533,504
|
|
|
|
7.9
|
%
|
|
|
|
|
488,216
|
|
|
|
8.0
|
%
|
|
Cost of other revenue
|
|
|
|
|
9,615
|
|
|
|
0.5
|
%
|
|
|
|
|
9,259
|
|
|
|
0.6
|
%
|
|
|
|
|
38,162
|
|
|
|
0.6
|
%
|
|
|
|
|
36,714
|
|
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of sales
|
|
|
|
|
1,285,728
|
|
|
|
68.4
|
%
|
|
|
|
|
1,139,964
|
|
|
|
69.6
|
%
|
|
|
|
|
4,696,098
|
|
|
|
69.5
|
%
|
|
|
|
|
4,308,881
|
|
|
|
70.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
593,438
|
|
|
|
31.6
|
%
|
|
|
|
|
497,864
|
|
|
|
30.4
|
%
|
|
|
|
|
2,062,139
|
|
|
|
30.5
|
%
|
|
|
|
|
1,804,423
|
|
|
|
29.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating, general and administrative expenses
|
|
|
|
|
372,186
|
|
|
|
19.8
|
%
|
|
|
|
|
327,900
|
|
|
|
20.0
|
%
|
|
|
|
|
1,410,922
|
|
|
|
20.9
|
%
|
|
|
|
|
1,301,304
|
|
|
|
21.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
221,252
|
|
|
|
11.8
|
%
|
|
|
|
|
169,964
|
|
|
|
10.4
|
%
|
|
|
|
|
651,217
|
|
|
|
9.6
|
%
|
|
|
|
|
503,119
|
|
|
|
8.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
|
(13,275
|
)
|
|
|
-0.7
|
%
|
|
|
|
|
(14,102
|
)
|
|
|
-0.9
|
%
|
|
|
|
|
(54,329
|
)
|
|
|
-0.8
|
%
|
|
|
|
|
(56,842
|
)
|
|
|
-0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense
and equity income from Banfield
|
|
|
|
|
207,977
|
|
|
|
11.1
|
%
|
|
|
|
|
155,862
|
|
|
|
9.5
|
%
|
|
|
|
|
596,888
|
|
|
|
8.8
|
%
|
|
|
|
|
446,277
|
|
|
|
7.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
|
(78,489
|
)
|
|
|
-4.2
|
%
|
|
|
|
|
(56,604
|
)
|
|
|
-3.5
|
%
|
|
|
|
|
(223,329
|
)
|
|
|
-3.3
|
%
|
|
|
|
|
(166,960
|
)
|
|
|
-2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity income from Banfield
|
|
|
|
|
4,522
|
|
|
|
0.2
|
%
|
|
|
|
|
2,742
|
|
|
|
0.2
|
%
|
|
|
|
|
15,970
|
|
|
|
0.2
|
%
|
|
|
|
|
10,926
|
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
134,010
|
|
|
|
7.1
|
%
|
|
|
|
$
|
102,000
|
|
|
|
6.2
|
%
|
|
|
|
$
|
389,529
|
|
|
|
5.7
|
%
|
|
|
|
$
|
290,243
|
|
|
|
4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
1.26
|
|
|
|
|
|
|
|
$
|
0.92
|
|
|
|
|
|
|
|
$
|
3.61
|
|
|
|
|
|
|
|
$
|
2.59
|
|
|
|
|
|
Diluted
|
|
|
|
$
|
1.24
|
|
|
|
|
|
|
|
$
|
0.91
|
|
|
|
|
|
|
|
$
|
3.55
|
|
|
|
|
|
|
|
$
|
2.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
106,470
|
|
|
|
|
|
|
|
|
110,364
|
|
|
|
|
|
|
|
|
107,819
|
|
|
|
|
|
|
|
|
111,909
|
|
|
|
|
|
Diluted
|
|
|
|
|
108,071
|
|
|
|
|
|
|
|
|
112,100
|
|
|
|
|
|
|
|
|
109,611
|
|
|
|
|
|
|
|
|
113,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stores open at beginning of each period
|
|
|
|
|
1,269
|
|
|
|
|
|
|
|
|
1,210
|
|
|
|
|
|
|
|
|
1,232
|
|
|
|
|
|
|
|
|
1,187
|
|
|
|
|
|
Stores opened during each period
|
|
|
|
|
11
|
|
|
|
|
|
|
|
|
25
|
|
|
|
|
|
|
|
|
60
|
|
|
|
|
|
|
|
|
53
|
|
|
|
|
|
Stores closed during each period
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
(14
|
)
|
|
|
|
|
|
|
|
(8
|
)
|
|
|
|
|
Stores open at end of each period
|
|
|
|
|
1,278
|
|
|
|
|
|
|
|
|
1,232
|
|
|
|
|
|
|
|
|
1,278
|
|
|
|
|
|
|
|
|
1,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PetSmart, Inc. and Subsidiaries
|
|
Consolidated Balance Sheets
|
|
(In thousands, except par value)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February 3,
|
|
|
January 29,
|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
335,155
|
|
|
|
$
|
342,892
|
|
|
Short-term investments
|
|
|
|
|
9,150
|
|
|
|
|
20,311
|
|
|
Restricted cash
|
|
|
|
|
71,916
|
|
|
|
|
70,189
|
|
|
Receivables, net
|
|
|
|
|
72,198
|
|
|
|
|
53,899
|
|
|
Merchandise inventories
|
|
|
|
|
679,090
|
|
|
|
|
644,864
|
|
|
Deferred income taxes
|
|
|
|
|
62,859
|
|
|
|
|
51,381
|
|
|
Prepaid expenses and other current assets
|
|
|
|
|
86,768
|
|
|
|
|
80,352
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
|
1,317,136
|
|
|
|
|
1,263,888
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
985,707
|
|
|
|
|
1,067,028
|
|
|
Equity investment in Banfield
|
|
|
|
|
39,934
|
|
|
|
|
37,824
|
|
|
Deferred income taxes
|
|
|
|
|
102,992
|
|
|
|
|
93,485
|
|
|
Goodwill
|
|
|
|
|
44,242
|
|
|
|
|
44,084
|
|
|
Other noncurrent assets
|
|
|
|
|
46,970
|
|
|
|
|
37,775
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
2,536,981
|
|
|
|
$
|
2,544,084
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
Accounts payable and bank overdraft
|
|
|
|
$
|
202,122
|
|
|
|
$
|
199,177
|
|
|
Accrued payroll, bonus and employee benefits
|
|
|
|
|
176,082
|
|
|
|
|
158,079
|
|
|
Accrued occupancy expenses and deferred rents
|
|
|
|
|
70,671
|
|
|
|
|
68,584
|
|
|
Current maturities of capital lease obligations
|
|
|
|
|
61,581
|
|
|
|
|
54,219
|
|
|
Other current liabilities
|
|
|
|
|
244,436
|
|
|
|
|
201,247
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
754,892
|
|
|
|
|
681,306
|
|
|
|
|
|
|
|
|
|
|
|
Capital lease obligations
|
|
|
|
|
464,578
|
|
|
|
|
505,273
|
|
|
Deferred rents
|
|
|
|
|
73,855
|
|
|
|
|
81,403
|
|
|
Other noncurrent liabilities
|
|
|
|
|
120,064
|
|
|
|
|
122,273
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
1,413,389
|
|
|
|
|
1,390,255
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
Preferred stock; $.0001 par value
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Common stock; $.0001 par value
|
|
|
|
|
17
|
|
|
|
|
16
|
|
|
Additional paid-in capital
|
|
|
|
|
1,418,411
|
|
|
|
|
1,312,996
|
|
|
Retained earnings
|
|
|
|
|
1,827,996
|
|
|
|
|
1,507,054
|
|
|
Accumulated other comprehensive income
|
|
|
|
|
5,506
|
|
|
|
|
5,490
|
|
|
Less: Treasury stock
|
|
|
|
|
(2,128,338
|
)
|
|
|
|
(1,671,727
|
)
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
|
|
1,123,592
|
|
|
|
|
1,153,829
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
|
$
|
2,536,981
|
|
|
|
$
|
2,544,084
|
|
Source: PetSmart, Inc.
PetSmart, Inc.
Investor Relations, 623-587-2025
|
