For the fiscal 2000 fourth quarter, diluted earnings per share were $.44, up 7% over last year's exceptionally strong earnings of $.41 per share on a pro forma basis, which reflects the Company's accounting change for layaway sales. Income from continuing operations was $137 versus $136 million earned on a pro forma basis last year. Net sales for the fiscal 2000 fourth quarter were $2.5 billion, up 9% over last year on a pro forma basis.
Bernard Cammarata, Chairman and Chief Executive Officer of The TJX Companies, Inc. stated, "Nineteen ninety-nine was another excellent year for The TJX Companies. Earnings per share from continuing operations were up 29% over the prior year's 47% increase. We are also gratified to have earned a 45% after-tax return on average shareholders' equity. We exceeded our earnings per share plans in all four quarters of the year. We are especially pleased with our better-than-plan performance in the fourth quarter, given the exceptionally strong performance in 1998's fourth quarter.
"T.J. Maxx and Marshalls (The Marmaxx Group) performed extremely well, together achieving a 4% comparable store sales increase and a 13% gain in operating income for the year, which exceeded our plans. We continued to maintain separate identities for each chain through marketing and merchandising, encouraging customers to shop at both franchises. In general, non-apparel sales gains led apparel. We saw strong performance geographically throughout the country. Additionally, we did a good job in managing inventories, which remained lean, enabling us to take advantage of the best buys in the marketplace.
"Winners Apparel, Ltd. in Canada had a stellar year, posting an 8% gain in comparable store sales and a 38% increase in operating income, both over strong gains last year. These results were significantly ahead of our goals. Winners is performing very well throughout Canada, with apparel as well as non-apparel sales exceeding our expectations. Through strong merchandise and inventory management, Winners continues as the dominant player in the off-price retail market in Canada.
"HomeGoods had an excellent year in 1999, reporting a profit which was greater than we had expected. HomeGoods achieved a 13% comparable store sales increase over a 9% increase last year. HomeGoods has become a destination for great off-price values in home fashions. Both HomeGoods' free-standing and superstore concepts are performing very well, with merchandise turning at rates as fast as we experience in apparel at our other divisions. We are pleased that our investment in this business is paying off and we are excited about accelerating our roll-out of HomeGoods and increasing our presence in the rapidly growing home furnishings market.
"T.K. Maxx also had a very strong year, achieving profits above our expectations. T.K. Maxx posted a 12% comp store sales increase over a 12% gain last year. This chain is experiencing rapid inventory turns at store level and merchandise margins similar to those at The Marmaxx Group. We are very enthusiastic about our accelerated roll-out of this chain throughout the United Kingdom and Ireland and our longer term potential to develop this business on the European mainland.
"A.J. Wright has shown progress as we continue to develop this business. We expanded our presence beyond New England to Tidewater, Virginia, Baltimore and Detroit in 1999. We continue to view A.J. Wright as a long-term growth vehicle as we pursue our marketing strategies to educate the moderate-income consumer about the off-price concept.
"Our strong financial position enabled us to continue to aggressively execute our $750 million, multi-year stock buy-back program during the fourth quarter. During fiscal 2000, we have spent $601 million, retiring 23.6 million shares. Cumulatively, we have spent $697 million under this program."
Cammarata concluded, "Our Company is extremely strong, with highly profitable and proven off-price concepts. Our rate of revenue growth has expanded and we are excited about further ramping up our new store growth both in the U.S. and abroad. We are very well-positioned as the year 2000 begins, to continue to achieve our targets for earnings growth."
The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The Company operates 632 T.J. Maxx, 505 Marshalls, 51 HomeGoods and 15 A.J. Wright stores in the United States. In Canada, the Company operates 100 Winners and, in Europe, 54 T.K. Maxx stores. TJX's press releases and financial information are available on the Internet at www.tjx.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Certain statements contained in this release are forward-looking and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: general economic conditions and consumer demand and consumer preferences and weather patterns in the U.S., Canada and Europe, particularly the United Kingdom; competitive factors, including continuing pressure from pricing and promotional activities of major competitors; impact of excess retail capacity and the availability of desirable store locations on suitable terms; the availability, selection and purchasing of attractive merchandise on favorable terms; import risks, including potential disruptions and duties, tariffs and quotas on imported merchandise, including economic and political problems in countries from which merchandise is imported; currency and exchange rate factors in the Company's foreign operations; risks in the development of new businesses and application of the Company's off-price strategies in foreign countries; acquisition and divestment activities; risks and uncertainties relating to the Year 2000 issue; and other factors that may be described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL SUMMARY
(Unaudited)
(Dollars In Thousands Except Per Share Amounts)
Pro Forma As Reported
13 Weeks 13 Weeks 13 Weeks
Ended Ended Ended
January 29, January 30, January 30,
2000 1999 1999
Net sales $2,526,936 $2,323,952 $2,282,440
Cost of sales,
including buying and
occupancy costs 1,929,090 1,753,990 1,728,163
Selling, general and
administrative
expenses 375,189 360,290 360,290
Interest (income)
expense, net 1,841 (1,204) (1,204)
Income from continuing
operations before income
taxes 220,816 210,876 195,191
Provision for income
taxes 83,866 74,541 68,299
Income from continuing
operations 136,950 136,335 126,892
(Loss) from discontinued
operations, net of income
taxes - - -
Income before cumulative
effect of accounting
change 136,950 136,335 126,892
Cumulative effect of
accounting change, net
ofincome taxes - - -
Net income $ 136,950 $ 136,335 $ 126,892
Diluted earnings per share:
Income from continuing
operations $ 0.44 $ 0.41 $ 0.39
Net income $ 0.44 $ 0.41 $ 0.39
Cash dividends per
common share $ 0.035 $ 0.03 $ 0.03
Number of shares used
for diluted earnings
per share
computation 308,281,445 328,800,046 328,800,046
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
FINANCIAL SUMMARY
(Unaudited)
(Dollars In Thousands Except Per Share Amounts)
Pro Forma As Reported
52 Weeks 52 Weeks 52 Weeks
Ended Ended Ended
January 29, January 30, January 30,
2000 1999 1999
Net sales $8,795,347 $7,948,871 $7,949,101
Cost of sales,
including buying and
occupancy costs 6,579,400 5,957,685 5,957,415
Selling, general and
administrative
expenses 1,354,665 1,285,988 1,285,988
Interest (income)
expense, net 7,345 1,686 1,686
Income from continuing
operations before income
taxes 853,937 703,512 704,012
Provision for income
taxes 327,115 270,610 270,810
Income from continuing
operations 526,822 432,902 433,202
(Loss) from discontinued
operations, net of income
taxes - (9,048) (9,048)
Income before cumulative
effect of accounting
change 526,822 423,854 424,154
Cumulative effect of
accounting change,
net of income taxes (5,154) - -
Net income $ 521,668 $ 423,854 $ 424,154
Diluted earnings per share:
Income from continuing
operations $ 1.66 $ 1.29 $ 1.29
Net income $ 1.64 $ 1.27 $ 1.27
Cash dividends per
common share $ 0.14 $ 0.12 $ 0.12
Number of shares used
for diluted earnings
per share
computation 317,790,764 334,647,950 334,647,950
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Unaudited)
(In Millions)
January 29, January 30,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 371.8 $ 461.2
Accounts receivable and other
current assets 99.2 95.8
Merchandise inventories 1,229.6 1,186.1
Total current assets 1,700.6 1,743.1
Property, net of depreciation 834.6 756.6
Other assets 55.8 27.4
Deferred income taxes 23.1 22.4
Goodwill and tradename, net of
amortization 190.9 198.3
TOTAL ASSETS $ 2,805.0 $ 2,747.8
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of
long-term debt $ 100.4 $ .7
Accounts payable 615.7 617.2
Accrued expenses and other
current liabilities 607.3 624.8
Federal and state income taxes
payable 43.0 64.2
Total current liabilities 1,366.4 1,306.9
Long-term debt 319.4 220.3
Shareholders' equity 1,119.2 1,220.6
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 2,805.0 $ 2,747.8
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Millions)
52 Weeks 52 Weeks
Ended Ended
January 29, January 30,
2000 1999
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $ 521.7 $ 424.2
Loss from discontinued operations,
net of income taxes - 9.0
Cumulative effect of accounting
change, net of income taxes 5.2 -
Depreciation and amortization 160.4 136.5
(Increase) in accounts receivable
and other current assets (23.7) (7.7)
(Increase) decrease in merchandise
inventories (28.9) 4.1
Increase (decrease) in accounts
payable (1.5) 34.4
Increase (decrease) in accrued
expenses and other current
liabilities (13.6) 42.3
Increase (decrease) in federal and
state income taxes payable (21.2) 6.3
Other (20.4) (20.2)
Net cash provided by operating
activities 578.0 628.9
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions (238.5) (207.7)
Proceeds from sale of other assets - 9.4
Net cash (used in) investing
activities (238.5) (198.3)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings of
long-term debt 198.1 -
Principal payments on long-term debt (.7) (23.4)
Common stock repurchased (604.6) (337.7)
Cash dividends (42.7) (40.4)
Other 21.0 27.7
Net cash (used in) financing
activities (428.9) (373.8)
Net increase (decrease) in cash
and cash equivalents (89.4) 56.8
Cash and cash equivalents at
beginning of year 461.2 404.4
Cash and cash equivalents at
end of year $ 371.8 $ 461.2
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES SELECTED
INFORMATION BY MAJOR BUSINESS SEGMENT (Unaudited)
(In Thousands)
Pro Forma As Reported
13 Weeks 13 Weeks 13 Weeks
Ended Ended Ended
January 29, January 30, January 30,
2000 1999 1999
Net sales:
Off-price family
apparel stores $2,454,280 $2,275,409 $2,233,897
Off-price home
fashion stores 72,656 48,543 48,543
$2,526,936 $2,323,952 $2,282,440
Operating income (loss):
Off-price family
apparel stores $ 230,874 $ 239,520 $ 223,835
Off-price home
fashion stores 4,195 141 141
235,069 239,661 223,976
General corporate
expense 11,760 29,337 29,337
Goodwill amortization 652 652 652
Interest (income)
expense, net 1,841 (1,204) (1,204)
Income from continuing
operations before
income taxes $ 220,816 $ 210,876 $ 195,191
Stores in operation end
of period:
T.J. Maxx 632 604
Marshalls 505 475
Winners 100 87
HomeGoods 51 35
T.K. Maxx 54 39
A.J. Wright 15 6
Total 1,357 1,246
THE TJX COMPANIES, INC. AND CONSOLIDATED SUBSIDIARIES
SELECTED INFORMATION BY MAJOR BUSINESS SEGMENT
(Unaudited)
(In Thousands)
Pro Forma As Reported
52 Weeks 52 Weeks 52 Weeks
Ended Ended Ended
January 29, January 30, January 30,
2000 1999 1999
Net sales:
Off-price family
apparel stores $8,588,537 $7,816,333 $7,816,563
Off-price home
fashion stores 206,810 132,538 132,538
$8,795,347 $7,948,871 $7,949,101
Operating income (loss):
Off-price family
apparel stores $ 896,492 $ 782,206 $ 782,706
Off-price home
fashion stores 4,581 (4,950) (4,950)
901,073 777,256 777,756
General corporate
expense 37,182 69,449 69,449
Goodwill amortization 2,609 2,609 2,609
Interest (income)
expense, net 7,345 1,686 1,686
Income from continuing
operations before
income taxes $ 853,937 $ 703,512 $ 704,012
Stores in operation end of period:
T.J. Maxx 632 604
Marshalls 505 475
Winners 100 87
HomeGoods 51 35
T.K. Maxx 54 39
A.J. Wright 15 6
Total 1,357 1,246
The TJX Companies, Inc. and Consolidated Subsidiaries
Notes to Consolidated Condensed Financial Statements
1. On February 11, 2000, the Company announced that, effective
January 31, 1999, it had adopted the provisions of the SEC's Staff
Accounting Bulletin No. 101 related to layaway sales. As a result, the
Company restated its earnings for the first three quarters of fiscal
year ended January 29, 2000 and recorded a one-time, non-cash,
after-tax charge of $5.2 million, in the first quarter of fiscal 2000
for the cumulative effect of the accounting change. Pro forma
operating results for periods ending January 30, 1999 are presented
for comparative purposes.
2. During the fiscal year ended January 29, 2000, the Company
repurchased 23.6 million shares of its common stock at a cost of
$601.3 million under its $750 million multi-year stock repurchase
program. Since the inception of the $750 million stock repurchase
program, the Company has repurchased 27.7 million shares at a cost of
$696.8 million.
