2017 Q2 Form 10-Q Financial Statement

#000106082217000015 Filed on April 27, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2016 Q2
Revenue $732.8M $724.1M
YoY Change 1.21% 5.74%
Cost Of Revenue $417.1M $413.2M
YoY Change 0.96% 3.11%
Gross Profit $315.7M $310.9M
YoY Change 1.53% 9.46%
Gross Profit Margin 43.08% 42.94%
Selling, General & Admin $247.8M $229.0M
YoY Change 8.21% 8.43%
% of Gross Profit 78.49% 73.65%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $19.51M $17.18M
YoY Change 13.6% 15.48%
% of Gross Profit 6.18% 5.52%
Operating Expenses $247.8M $229.0M
YoY Change 8.21% 8.43%
Operating Profit $78.46M $93.01M
YoY Change -15.65% 10.06%
Interest Expense $7.104M $6.739M
YoY Change 5.42% 0.7%
% of Operating Profit 9.05% 7.25%
Other Income/Expense, Net $221.0K -$3.193M
YoY Change -106.92% 62.74%
Pretax Income $71.71M $83.28M
YoY Change -13.89% 9.6%
Income Tax $25.12M $29.30M
% Of Pretax Income 35.02% 35.18%
Net Earnings $46.60M $53.98M
YoY Change -13.68% 8.41%
Net Earnings / Revenue 6.36% 7.45%
Basic Earnings Per Share $0.96 $1.05
Diluted Earnings Per Share $0.95 $1.04
COMMON SHARES
Basic Shares Outstanding 48.32M shares 51.18M shares
Diluted Shares Outstanding 48.88M shares 51.64M shares

Balance Sheet

Concept 2017 Q2 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $154.3M $395.1M
YoY Change -60.95% 4.69%
Cash & Equivalents $154.3M $395.1M
Short-Term Investments
Other Short-Term Assets $46.20M $68.60M
YoY Change -32.65% 2.85%
Inventory $434.7M $376.5M
Prepaid Expenses $48.40M $36.79M
Receivables $194.4M $192.6M
Other Receivables $0.00 $0.00
Total Short-Term Assets $844.1M $1.033B
YoY Change -18.27% 3.52%
LONG-TERM ASSETS
Property, Plant & Equipment $386.3M $377.3M
YoY Change 2.39% 10.42%
Goodwill $232.9M $177.2M
YoY Change 31.42% -0.91%
Intangibles $365.7M $309.9M
YoY Change 18.02% -1.62%
Long-Term Investments
YoY Change
Other Assets $23.03M $15.26M
YoY Change 50.96% 9.79%
Total Long-Term Assets $1.044B $879.6M
YoY Change 18.64% 3.56%
TOTAL ASSETS
Total Short-Term Assets $844.1M $1.033B
Total Long-Term Assets $1.044B $879.6M
Total Assets $1.888B $1.912B
YoY Change -1.29% 3.54%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $101.4M $90.39M
YoY Change 12.17% -3.98%
Accrued Expenses $97.70M $83.30M
YoY Change 17.29% 11.07%
Deferred Revenue $16.86M
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $227.0M $192.9M
YoY Change 17.7% 2.85%
LONG-TERM LIABILITIES
Long-Term Debt $581.6M $580.3M
YoY Change 0.22% 0.01%
Other Long-Term Liabilities $173.3M $161.7M
YoY Change 7.14% 5.49%
Total Long-Term Liabilities $754.9M $742.1M
YoY Change 1.73% 1.15%
TOTAL LIABILITIES
Total Short-Term Liabilities $227.0M $192.9M
Total Long-Term Liabilities $754.9M $742.1M
Total Liabilities $1.116B $1.064B
YoY Change 4.87% 2.15%
SHAREHOLDERS EQUITY
Retained Earnings $805.4M $879.3M
YoY Change -8.4% 5.4%
Common Stock $485.0K $512.0K
YoY Change -5.27% -2.66%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $772.1M $848.7M
YoY Change
Total Liabilities & Shareholders Equity $1.888B $1.912B
YoY Change -1.29% 3.54%

Cashflow Statement

Concept 2017 Q2 2016 Q2
OPERATING ACTIVITIES
Net Income $46.60M $53.98M
YoY Change -13.68% 8.41%
Depreciation, Depletion And Amortization $19.51M $17.18M
YoY Change 13.6% 15.48%
Cash From Operating Activities $84.18M $128.3M
YoY Change -34.38% 47.07%
INVESTING ACTIVITIES
Capital Expenditures $17.99M $25.55M
YoY Change -29.59% 23.08%
Acquisitions
YoY Change
Other Investing Activities -$143.7M $0.00
YoY Change -100.0%
Cash From Investing Activities -$161.7M -$25.55M
YoY Change 532.81% 23.54%
FINANCING ACTIVITIES
Cash Dividend Paid $18.00M $17.03M
YoY Change 5.67% 46.87%
Common Stock Issuance & Retirement, Net $46.63M $71.56M
YoY Change -34.84% 406.81%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$67.52M -$90.16M
YoY Change -25.11% 209.18%
NET CHANGE
Cash From Operating Activities $84.18M $128.3M
Cash From Investing Activities -$161.7M -$25.55M
Cash From Financing Activities -$67.52M -$90.16M
Net Change In Cash -$145.0M $12.57M
YoY Change -1253.42% -66.36%
FREE CASH FLOW
Cash From Operating Activities $84.18M $128.3M
Capital Expenditures $17.99M $25.55M
Free Cash Flow $66.19M $102.7M
YoY Change -35.57% 54.56%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">THE COMPANY</font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Carter's, Inc. and its wholly owned subsidiaries (collectively, the "Company," "its," "us" and "our") design, source, and market branded childrenswear and related products under the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Carter's, Child of</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Mine, Just One You,</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Precious Firsts</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Simple Joys</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">OshKosh B'gosh ("OshKosh")</font><font style="font-family:inherit;font-size:10pt;">,</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> Skip Hop </font><font style="font-family:inherit;font-size:10pt;">and other brands. The Company's products are sourced through contractual arrangements with manufacturers worldwide for wholesale distribution to leading department stores, national chains, and specialty retailers domestically and internationally and for the Company's own retail stores and websites that market its brand name merchandise and other licensed products manufactured by other companies. As of </font><font style="font-family:inherit;font-size:10pt;">April&#160;1, 2017</font><font style="font-family:inherit;font-size:10pt;">, the Company operated </font><font style="font-family:inherit;font-size:10pt;">965</font><font style="font-family:inherit;font-size:10pt;"> retail stores.</font></div></div>

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