Nebraska
|
47-0366193
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
incorporation or organization)
|
Identification No.)
|
Title of class
|
Name of Each Exchange on Which Registered
|
Common Stock, $.01 par value
|
New York Stock Exchange
|
Pages
|
||
Part I. Financial Information (unaudited) | ||
3
|
||
17
|
||
26
|
||
26
|
||
Part II. Other Information | ||
27
|
||
27
|
||
27
|
||
27
|
||
27
|
||
27
|
||
27
|
||
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28 |
CONSOLIDATED BALANCE SHEETS
|
||||||||
(Amounts in Thousands Except Share and Per Share Amounts)
|
||||||||
(Unaudited)
|
||||||||
July 28,
|
January 28,
|
|||||||
ASSETS
|
2012
|
2012
|
||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$ | 166,020 | $ | 166,511 | ||||
Short-term investments
|
31,720 | 29,998 | ||||||
Receivables
|
7,724 | 4,584 | ||||||
Inventory
|
124,506 | 104,209 | ||||||
Prepaid expenses and other assets
|
17,177 | 14,825 | ||||||
Total current assets
|
347,147 | 320,127 | ||||||
PROPERTY AND EQUIPMENT
|
374,076 | 358,866 | ||||||
Less accumulated depreciation and amortization
|
(200,802 | ) | (189,832 | ) | ||||
173,274 | 169,034 | |||||||
LONG-TERM INVESTMENTS
|
35,663 | 39,985 | ||||||
OTHER ASSETS
|
2,323 | 2,393 | ||||||
$ | 558,407 | $ | 531,539 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable
|
$ | 44,648 | $ | 27,416 | ||||
Accrued employee compensation
|
16,963 | 42,854 | ||||||
Accrued store operating expenses
|
9,067 | 11,125 | ||||||
Gift certificates redeemable
|
13,877 | 20,286 | ||||||
Income taxes payable
|
- | 8,150 | ||||||
Total current liabilities
|
84,555 | 109,831 | ||||||
DEFERRED COMPENSATION
|
9,823 | 8,581 | ||||||
DEFERRED RENT LIABILITY
|
37,707 | 36,503 | ||||||
OTHER LIABILITIES
|
12,681 | 13,477 | ||||||
Total liabilities
|
144,766 | 168,392 | ||||||
COMMITMENTS
|
||||||||
STOCKHOLDERS’ EQUITY:
|
||||||||
Common stock, authorized 100,000,000 shares of $.01 par value; 47,921,197 and 47,432,089
|
||||||||
shares issued and outstanding at July 28, 2012 and January 28, 2012, respectively
|
479 | 474 | ||||||
Additional paid-in capital
|
108,947 | 100,333 | ||||||
Retained earnings
|
304,903 | 263,039 | ||||||
Accumulated other comprehensive loss
|
(688 | ) | (699 | ) | ||||
Total stockholders’ equity
|
413,641 | 363,147 | ||||||
$ | 558,407 | $ | 531,539 | |||||
See notes to unaudited condensed consolidated financial statements.
|
THE BUCKLE, INC.
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
(Amounts in Thousands Except Per Share Amounts)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Thirteen Weeks Ended
|
Twenty-six Weeks Ended
|
|||||||||||||||
July 28,
|
July 30,
|
July 28,
|
July 30,
|
|||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
SALES, Net of returns and allowances
|
$ | 215,483 | $ | 212,378 | $ | 479,245 | $ | 452,470 | ||||||||
COST OF SALES (Including buying,
|
||||||||||||||||
distribution, and occupancy costs)
|
128,980 | 125,233 | 278,547 | 262,381 | ||||||||||||
Gross profit
|
86,503 | 87,145 | 200,698 | 190,089 | ||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||
Selling
|
41,491 | 42,428 | 87,761 | 85,159 | ||||||||||||
General and administrative
|
8,622 | 7,942 | 18,525 | 16,801 | ||||||||||||
50,113 | 50,370 | 106,286 | 101,960 | |||||||||||||
INCOME FROM OPERATIONS
|
36,390 | 36,775 | 94,412 | 88,129 | ||||||||||||
OTHER INCOME, Net
|
361 | 506 | 2,173 | 2,118 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
36,751 | 37,281 | 96,585 | 90,247 | ||||||||||||
PROVISION FOR INCOME TAXES
|
13,528 | 13,723 | 35,553 | 33,220 | ||||||||||||
NET INCOME
|
$ | 23,223 | $ | 23,558 | $ | 61,032 | $ | 57,027 | ||||||||
EARNINGS PER SHARE:
|
||||||||||||||||
Basic
|
$ | 0.49 | $ | 0.50 | $ | 1.29 | $ | 1.22 | ||||||||
Diluted
|
$ | 0.49 | $ | 0.50 | $ | 1.28 | $ | 1.21 | ||||||||
Basic weighted average shares
|
47,343 | 46,824 | 47,281 | 46,786 | ||||||||||||
Diluted weighted average shares
|
47,662 | 47,314 | 47,630 | 47,289 | ||||||||||||
See notes to unaudited condensed financial statements.
|
THE BUCKLE, INC.
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
||||||||||||||||
(Amounts in Thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Thirteen Weeks Ended
|
Twenty-six Weeks Ended
|
|||||||||||||||
July 28,
|
July 30,
|
July 28,
|
July 30,
|
|||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
NET INCOME
|
$ | 23,223 | $ | 23,558 | $ | 61,032 | $ | 57,027 | ||||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX:
|
||||||||||||||||
Change in unrealized loss on investments
|
13 | 91 | 11 | 112 | ||||||||||||
Other comprehensive income
|
13 | 91 | 11 | 112 | ||||||||||||
COMPREHENSIVE INCOME
|
$ | 23,236 | $ | 23,649 | $ | 61,043 | $ | 57,139 | ||||||||
See notes to unaudited condensed consolidated financial statements.
|
THE BUCKLE, INC.
|
||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
(Amounts in Thousands Except Share and Per Share Amounts)
|
||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||
Additional
|
Other
|
|||||||||||||||||||||||
Number
|
Common
|
Paid-in
|
Retained
|
Comprehensive
|
||||||||||||||||||||
of Shares
|
Stock
|
Capital
|
Earnings
|
Loss
|
Total
|
|||||||||||||||||||
FISCAL 2012
|
||||||||||||||||||||||||
BALANCE, January 29, 2012
|
47,432,089 | $ | 474 | $ | 100,333 | $ | 263,039 | $ | (699 | ) | $ | 363,147 | ||||||||||||
Net income
|
- | - | - | 61,032 | - | 61,032 | ||||||||||||||||||
Dividends paid on common stock,
|
||||||||||||||||||||||||
($0.40 per share)
|
- | - | - | (19,168 | ) | - | (19,168 | ) | ||||||||||||||||
Common stock issued on exercise
|
||||||||||||||||||||||||
of stock options
|
238,448 | 2 | 315 | - | - | 317 | ||||||||||||||||||
Issuance of non-vested stock, net of forfeitures
|
250,660 | 3 | (3 | ) | - | - | - | |||||||||||||||||
Amortization of non-vested stock grants,
|
||||||||||||||||||||||||
net of forfeitures
|
- | - | 4,137 | - | - | 4,137 | ||||||||||||||||||
Income tax benefit related to exercise of
|
||||||||||||||||||||||||
stock options
|
- | - | 4,165 | - | - | 4,165 | ||||||||||||||||||
Change in unrealized loss on investments,
|
||||||||||||||||||||||||
net of tax
|
- | - | - | - | 11 | 11 | ||||||||||||||||||
BALANCE, July 28, 2012
|
47,921,197 | $ | 479 | $ | 108,947 | $ | 304,903 | $ | (688 | ) | $ | 413,641 | ||||||||||||
FISCAL 2011
|
||||||||||||||||||||||||
BALANCE, January 30, 2011
|
47,127,926 | $ | 471 | $ | 89,719 | $ | 256,146 | $ | (671 | ) | $ | 345,665 | ||||||||||||
Net income
|
- | - | - | 57,027 | - | 57,027 | ||||||||||||||||||
Dividends paid on common stock,
|
||||||||||||||||||||||||
($0.40 per share)
|
- | - | - | (18,938 | ) | - | (18,938 | ) | ||||||||||||||||
Common stock issued on exercise
|
||||||||||||||||||||||||
of stock options
|
105,244 | 1 | 570 | - | - | 571 | ||||||||||||||||||
Issuance of non-vested stock, net of forfeitures
|
128,735 | 2 | (2 | ) | - | - | - | |||||||||||||||||
Amortization of non-vested stock grants,
|
||||||||||||||||||||||||
net of forfeitures
|
- | - | 3,128 | - | - | 3,128 | ||||||||||||||||||
Income tax benefit related to exercise of
|
||||||||||||||||||||||||
stock options
|
- | - | 1,389 | - | - | 1,389 | ||||||||||||||||||
Change in unrealized loss on investments,
|
||||||||||||||||||||||||
net of tax
|
- | - | - | - | 112 | 112 | ||||||||||||||||||
BALANCE, July 30, 2011
|
47,361,905 | $ | 474 | $ | 94,804 | $ | 294,235 | $ | (559 | ) | $ | 388,954 | ||||||||||||
See notes to unaudited condensed consolidated financial statements.
|
THE BUCKLE, INC.
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Amounts in Thousands)
|
||||||||
(Unaudited)
|
||||||||
Twenty-six Weeks Ended
|
||||||||
July 28,
|
July 30,
|
|||||||
2012
|
2011
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$ | 61,032 | $ | 57,027 | ||||
Adjustments to reconcile net income to net cash flows
|
||||||||
from operating activities:
|
||||||||
Depreciation and amortization
|
16,249 | 15,308 | ||||||
Amortization of non-vested stock grants, net of forfeitures
|
4,137 | 3,128 | ||||||
Deferred income taxes
|
(1,530 | ) | (1,157 | ) | ||||
Other
|
401 | 428 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Receivables
|
51 | (348 | ) | |||||
Inventory
|
(20,297 | ) | (38,249 | ) | ||||
Prepaid expenses and other assets
|
(1,640 | ) | 203 | |||||
Accounts payable
|
15,978 | 14,482 | ||||||
Accrued employee compensation
|
(25,891 | ) | (18,793 | ) | ||||
Accrued store operating expenses
|
(2,058 | ) | (307 | ) | ||||
Gift certificates redeemable
|
(6,409 | ) | (5,699 | ) | ||||
Income taxes payable
|
(10,869 | ) | 5,436 | |||||
Deferred rent liabilities and deferred compensation
|
2,446 | 1,126 | ||||||
Net cash flows from operating activities
|
31,600 | 32,585 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchase of property and equipment
|
(19,637 | ) | (23,168 | ) | ||||
Change in other assets
|
70 | (4 | ) | |||||
Purchases of investments
|
(14,041 | ) | (7,973 | ) | ||||
Proceeds from sales/maturities of investments
|
16,659 | 14,014 | ||||||
Net cash flows from investing activities
|
(16,949 | ) | (17,131 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from the exercise of stock options
|
317 | 571 | ||||||
Excess tax benefit from stock option exercises
|
3,709 | 1,346 | ||||||
Payment of dividends
|
(19,168 | ) | (18,938 | ) | ||||
Net cash flows from financing activities
|
(15,142 | ) | (17,021 | ) | ||||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(491 | ) | (1,567 | ) | ||||
CASH AND CASH EQUIVALENTS, Beginning of period
|
166,511 | 116,470 | ||||||
CASH AND CASH EQUIVALENTS, End of period
|
$ | 166,020 | $ | 114,903 | ||||
See notes to unaudited condensed consolidated financial statements.
|
1.
|
Management Representation
|
2.
|
Description of the Business
|
Percentage of Net Sales
|
Percentage of Net Sales
|
|||||||||||||||
Thirteen Weeks Ended
|
Twenty-six Weeks Ended
|
|||||||||||||||
Merchandise Group
|
July 28, 2012
|
July 30, 2011
|
July 28, 2012
|
July 30, 2011
|
||||||||||||
Denims
|
36.2 | % | 38.5 | % | 40.9 | % | 41.7 | % | ||||||||
Tops (including sweaters)
|
33.9 | 34.5 | 31.9 | 32.8 | ||||||||||||
Sportswear/Fashions
|
12.0 | 11.1 | 11.2 | 10.2 | ||||||||||||
Accessories
|
10.1 | 8.9 | 8.4 | 8.3 | ||||||||||||
Footwear
|
5.9 | 5.6 | 5.7 | 5.5 | ||||||||||||
Casual bottoms
|
0.8 | 0.6 | 0.9 | 0.6 | ||||||||||||
Outerwear
|
0.8 | 0.5 | 0.8 | 0.6 | ||||||||||||
Other
|
0.3 | 0.3 | 0.2 | 0.3 | ||||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
3.
|
Earnings Per Share
|
Thirteen Weeks Ended
|
Thirteen Weeks Ended
|
|||||||||||||||||||||||
July 28, 2012
|
July 30, 2011
|
|||||||||||||||||||||||
Weighted
|
Weighted
|
|||||||||||||||||||||||
Average
|
Per Share
|
Average
|
Per Share
|
|||||||||||||||||||||
Income
|
Shares
|
Amount
|
Income
|
Shares
|
Amount
|
|||||||||||||||||||
Basic EPS
|
$ | 23,223 | 47,343 | $ | 0.49 | $ | 23,558 | 46,824 | $ | 0.50 | ||||||||||||||
Effect of Dilutive Securities:
|
||||||||||||||||||||||||
Stock options and
|
||||||||||||||||||||||||
non-vested shares
|
- | 319 | - | - | 490 | - | ||||||||||||||||||
Diluted EPS
|
$ | 23,223 | 47,662 | $ | 0.49 | $ | 23,558 | 47,314 | $ | 0.50 |
Twenty-six Weeks Ended
|
Twenty-six Weeks Ended
|
|||||||||||||||||||||||
July 28, 2012
|
July 30, 2011
|
|||||||||||||||||||||||
Weighted
|
Weighted
|
|||||||||||||||||||||||
Average
|
Per Share
|
Average
|
Per Share
|
|||||||||||||||||||||
Income
|
Shares
|
Amount
|
Income
|
Shares
|
Amount
|
|||||||||||||||||||
Basic EPS
|
$ | 61,032 | 47,281 | $ | 1.29 | $ | 57,027 | 46,786 | $ | 1.22 | ||||||||||||||
Effect of Dilutive Securities:
|
||||||||||||||||||||||||
Stock options and
|
||||||||||||||||||||||||
non-vested shares
|
- | 349 | (0.01 | ) | - | 503 | (0.01 | ) | ||||||||||||||||
Diluted EPS
|
$ | 61,032 | 47,630 | $ | 1.28 | $ | 57,027 | 47,289 | $ | 1.21 |
4.
|
Investments
|
Amortized
|
Gross
|
Gross
|
Other-than-
|
Estimated
|
||||||||||||||||
Cost or
|
Unrealized
|
Unrealized
|
Temporary
|
Fair
|
||||||||||||||||
Par Value
|
Gains
|
Losses
|
Impairment
|
Value
|
||||||||||||||||
Available-for-sale securities:
|
||||||||||||||||||||
Auction-rate securities
|
$ | 15,075 | $ | - | $ | (1,092 | ) | $ | (725 | ) | $ | 13,258 | ||||||||
Preferred stock
|
2,000 | - | - | (1,974 | ) | 26 | ||||||||||||||
$ | 17,075 | $ | - | $ | (1,092 | ) | $ | (2,699 | ) | $ | 13,284 | |||||||||
Held-to-maturity securities:
|
||||||||||||||||||||
State and municipal bonds
|
$ | 43,776 | $ | 182 | $ | (6 | ) | $ | - | $ | 43,952 | |||||||||
Certificates of deposit
|
500 | 11 | - | - | 511 | |||||||||||||||
$ | 44,276 | $ | 193 | $ | (6 | ) | $ | - | $ | 44,463 | ||||||||||
Trading securities:
|
||||||||||||||||||||
Mutual funds
|
$ | 10,015 | $ | - | $ | (192 | ) | $ | - | $ | 9,823 |
Amortized
|
Gross
|
Gross
|
Other-than-
|
Estimated
|
||||||||||||||||
Cost or
|
Unrealized
|
Unrealized
|
Temporary
|
Fair
|
||||||||||||||||
Par Value
|
Gains
|
Losses
|
Impairment
|
Value
|
||||||||||||||||
Available-for-sale securities:
|
||||||||||||||||||||
Auction-rate securities
|
$ | 15,975 | $ | - | $ | (1,110 | ) | $ | (725 | ) | $ | 14,140 | ||||||||
Preferred stock
|
2,000 | - | - | (1,974 | ) | 26 | ||||||||||||||
$ | 17,975 | $ | - | $ | (1,110 | ) | $ | (2,699 | ) | $ | 14,166 | |||||||||
Held-to-maturity securities:
|
||||||||||||||||||||
State and municipal bonds
|
$ | 43,474 | $ | 323 | $ | - | $ | - | $ | 43,797 | ||||||||||
Fixed maturities
|
3,262 | 20 | - | - | 3,282 | |||||||||||||||
Certificates of deposit
|
500 | 16 | - | - | 516 | |||||||||||||||
$ | 47,236 | $ | 359 | $ | - | $ | - | $ | 47,595 | |||||||||||
Trading securities:
|
||||||||||||||||||||
Mutual funds
|
$ | 8,946 | $ | - | $ | (365 | ) | $ | - | $ | 8,581 |
Nature
|
Underlying Collateral
|
Par Value
|
||
Municipal revenue bonds
|
100% insured by AAA/AA/A-rated bond insurers at July 28, 2012
|
$ 10,075
|
||
Municipal bond funds
|
Fixed income instruments within issuers' money market funds
|
2,050
|
||
Student loan bonds
|
Student loans guaranteed by state entities
|
2,950
|
||
Preferred stock
|
Underlying investments of closed-end funds
|
2,000
|
||
Total par value
|
$ 17,075
|
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
|||||||
Held-to-maturity securities
|
||||||||
Less than 1 year
|
$ | 31,720 | $ | 31,833 | ||||
1 - 5 years
|
12,556 | 12,630 | ||||||
$ | 44,276 | $ | 44,463 |
5.
|
Fair Value Measurements
|
|
●
|
Level 1 – Quoted market prices in active markets for identical assets or liabilities. Short-term and long-term investments with active markets or known redemption values are reported at fair value utilizing Level 1 inputs.
|
|
●
|
Level 2 – Observable market-based inputs (either directly or indirectly) such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or inputs that are corroborated by market data.
|
|
●
|
Level 3 – Unobservable inputs that are not corroborated by market data and are projections, estimates, or interpretations that are supported by little or no market activity and are significant to the fair value of the assets. The Company has concluded that certain of its ARS represent Level 3 valuation and should be valued using a discounted cash flow analysis. The assumptions used in preparing the discounted cash flow model include estimates for interest rates, timing and amount of cash flows, and expected holding periods of the ARS. As of July 28, 2012, the unobservable inputs used by the Company and its independent third-party valuation consultant in valuing its Level 3 investments in ARS included:
|
|
o
|
Durations until redemption ranging from 0.5 to 31.0 years, with a weighted average of 5.0 years.
|
|
o
|
Discount rates ranging from 0.57% to 6.10%, with a weighted average of 2.43%.
|
|
o
|
Loss severities ranging from 0% to 25% of par value, with a weighted average of 6.92%.
|
|
●
|
Pricing was provided by the custodian of ARS;
|
|
●
|
Pricing was provided by a third-party broker for ARS;
|
|
●
|
Sales of similar securities;
|
|
●
|
Quoted prices for similar securities in active markets;
|
|
●
|
Quoted prices for publicly traded preferred securities;
|
|
●
|
Quoted prices for similar assets in markets that are not active - including markets where there are few transactions for the asset, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly;
|
|
●
|
Pricing was provided by a third-party valuation consultant (using Level 3 inputs).
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||||||
Quoted Prices in
|
||||||||||||||||
Active Markets
|
Significant
|
Significant
|
||||||||||||||
for Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
July 28, 2012
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
||||||||||||
Available-for-sale securities:
|
||||||||||||||||
Auction-rate securities
|
$ | - | $ | 2,088 | $ | 11,170 | $ | 13,258 | ||||||||
Preferred stock
|
26 | - | - | 26 | ||||||||||||
Trading securities (including mutual funds)
|
9,823 | - | - | 9,823 | ||||||||||||
Totals
|
$ | 9,849 | $ | 2,088 | $ | 11,170 | $ | 23,107 |
Fair Value Measurements at Reporting Date Using
|
||||||||||||||||
Quoted Prices in
|
||||||||||||||||
Active Markets
|
Significant
|
Significant
|
||||||||||||||
for Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
January 28, 2012
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
||||||||||||
Available-for-sale securities:
|
||||||||||||||||
Auction-rate securities
|
$ | - | $ | 2,920 | $ | 11,220 | $ | 14,140 | ||||||||
Preferred stock
|
26 | - | - | 26 | ||||||||||||
Trading securities (including mutual funds)
|
8,581 | - | - | 8,581 | ||||||||||||
Totals
|
$ | 8,607 | $ | 2,920 | $ | 11,220 | $ | 22,747 |
Twenty-six Weeks Ended July 28, 2012
|
||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||||||||
Available-for-Sale Securities
|
Trading Securities
|
|||||||||||||||
Auction-rate
|
Preferred
|
Mutual
|
||||||||||||||
Securities
|
Stock
|
Funds
|
Total
|
|||||||||||||
Balance, beginning of year
|
$ | 11,220 | $ | - | $ | - | $ | 11,220 | ||||||||
Purchases, Issuances,
|
||||||||||||||||
Sales, and Settlements:
|
||||||||||||||||
Sales
|
(50 | ) | - | - | (50 | ) | ||||||||||
Balance, end of quarter
|
$ | 11,170 | $ | - | $ | - | $ | 11,170 |
Twenty-six Weeks Ended July 30, 2011
|
|||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
|||||||||||||||||
Available-for-Sale Securities
|
Trading Securities
|
||||||||||||||||
Auction-rate
|
Preferred
|
Mutual
|
|||||||||||||||
Securities
|
Stock
|
Funds
|
Total
|
||||||||||||||
Balance, beginning of year
|
$ | 8,586 | $ | - | $ | - | $ | 8,586 | |||||||||
Transfers into Level 3
|
2,787 |
(a)
|
- | - | 2,787 | ||||||||||||
Total gains and losses:
|
|||||||||||||||||
Included in other
|
|||||||||||||||||
comprehensive income
|
91 | - | - | 91 | |||||||||||||
Purchases, Issuances,
|
|||||||||||||||||
Sales, and Settlements:
|
|||||||||||||||||
Sales
|
(50 | ) | - | - | (50 | ) | |||||||||||
Balance, end of quarter
|
$ | 11,414 | $ | - | $ | - | $ | 11,414 |
(a)
|
Transferred from Level 2 to Level 3 due to lack of observable market data due to reduction in market activity. The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period in which the transfer occurred.
|
6.
|
Supplemental Cash Flow Information
|
7.
|
Stock-Based Compensation
|
Thirteen Weeks Ended
|
||||||||
July 28, 2012
|
July 30, 2011
|
|||||||
Stock-based compensation expense, before tax
|
$ | 1,999 | $ | 1,507 | ||||
Stock-based compensation expense, after tax
|
$ | 1,259 | $ | 949 |
Twenty-six Weeks Ended
|
||||||||
July 28, 2012
|
July 30, 2011
|
|||||||
Stock-based compensation expense, before tax
|
$ | 4,137 | $ | 3,128 | ||||
Stock-based compensation expense, after tax
|
$ | 2,606 | $ | 1,971 |
Weighted
|
|||||||||||||||||
Weighted
|
Average
|
||||||||||||||||
Average
|
Remaining
|
Aggregate
|
|||||||||||||||
Exercise
|
Contractual
|
Intrinsic
|
|||||||||||||||
Shares
|
Price
|
Life
|
Value
|
||||||||||||||
Outstanding - beginning of year
|
417,972 | $ | 2.38 | ||||||||||||||
Granted
|
- | - | |||||||||||||||
Expired/forfeited
|
- | - | |||||||||||||||
Exercised
|
(238,448 | ) | 1.33 | ||||||||||||||
Outstanding - end of quarter
|
179,524 | $ | 3.78 | 2.02 |
years
|
$ | 6,414 | ||||||||||
Exercisable - end of quarter
|
179,524 | $ | 3.78 | 2.02 |
years
|
$ | 6,414 |
Weighted Average
|
||||||||
Grant Date
|
||||||||
Shares
|
Fair Value
|
|||||||
Non-Vested - beginning of year
|
386,202 | $ | 31.61 | |||||
Granted
|
250,900 | 43.35 | ||||||
Forfeited
|
(240 | ) | 36.12 | |||||
Vested
|
(58,723 | ) | 35.18 | |||||
Non-Vested - end of quarter
|
578,139 | $ | 36.34 |
8.
|
Recently Adopted Accounting Pronouncements
|
Percentage of Net Sales
|
Percentage
|
Percentage of Net Sales
|
Percentage
|
|||||||||||||||||||||
Thirteen Weeks Ended
|
Increase/
|
Twenty-six Weeks Ended
|
Increase/
|
|||||||||||||||||||||
July 28, 2012
|
July 30, 2011
|
(Decrease)
|
July 28, 2012
|
July 30, 2011
|
(Decrease)
|
|||||||||||||||||||
Net sales
|
100.0 | % | 100.0 | % | 1.5 | % | 100.0 | % | 100.0 | % | 5.9 | % | ||||||||||||
Cost of sales (including buying,
|
||||||||||||||||||||||||
distribution, and occupancy costs)
|
59.9 | % | 59.0 | % | 3.0 | % | 58.1 | % | 58.0 | % | 6.2 | % | ||||||||||||
Gross profit
|
40.1 | % | 41.0 | % | -0.7 | % | 41.9 | % | 42.0 | % | 5.6 | % | ||||||||||||
Selling expenses
|
19.2 | % | 20.0 | % | -2.2 | % | 18.3 | % | 18.8 | % | 3.1 | % | ||||||||||||
General and administrative expenses
|
4.0 | % | 3.7 | % | 8.6 | % | 3.9 | % | 3.7 | % | 10.3 | % | ||||||||||||
Income from operations
|
16.9 | % | 17.3 | % | -1.0 | % | 19.7 | % | 19.5 | % | 7.1 | % | ||||||||||||
Other income, net
|
0.2 | % | 0.3 | % | -28.5 | % | 0.4 | % | 0.4 | % | 2.6 | % | ||||||||||||
Income before income taxes
|
17.1 | % | 17.6 | % | -1.4 | % | 20.1 | % | 19.9 | % | 7.0 | % | ||||||||||||
Provision for income taxes
|
6.3 | % | 6.5 | % | -1.4 | % | 7.4 | % | 7.3 | % | 7.0 | % | ||||||||||||
Net income
|
10.8 | % | 11.1 | % | -1.4 | % | 12.7 | % | 12.6 | % | 7.0 | % |
1.
|
Revenue Recognition
.
Retail store sales are recorded upon the purchase of merchandise by customers. Online sales are recorded when merchandise is delivered to the customer, with the time of delivery being based on estimated shipping time from the Company’s distribution center to the customer. Shipping fees charged to customers are included in revenue and shipping costs are included in selling expenses. The Company recognizes revenue from sales made under its layaway program upon delivery of the merchandise to the customer. Revenue is not recorded when gift cards and gift certificates are sold, but rather when a card or certificate is redeemed for merchandise. A current liability for unredeemed gift cards and certificates is recorded at the time the card or certificate is purchased. The amounts of the gift certificate and gift card liabilities are determined using the outstanding balances from the prior three and four years of issuance, respectively. The liability recorded for unredeemed gift certificates and gift cards was $13.9 million and $20.3 million as of July 28, 2012 and January 28, 2012, respectively. The Company records breakage as other income when the probability of redemption, which is based on historical redemption patterns, is remote.
|
2.
|
Inventory
. Inventory is valued at the lower of cost or market. Cost is determined using an average cost method that approximates the first-in, first-out (FIFO) method. Management makes adjustments to inventory and cost of goods sold, based upon estimates, to reserve for merchandise obsolescence and markdowns that could affect market value, based on assumptions using calculations applied to current inventory levels within each different markdown level. Management also reviews the levels of inventory in each markdown group and the overall aging of the inventory versus the estimated future demand for such product and the current market conditions. Such judgments could vary significantly from actual results, either favorably or unfavorably, due to fluctuations in future economic conditions, industry trends, consumer demand, and the competitive retail environment. Such changes in market conditions could negatively impact the sale of markdown inventory, causing further markdowns or inventory obsolescence, resulting in increased cost of goods sold from write-offs and reducing the Company’s net earnings. The liability recorded as a reserve for markdowns and/or obsolescence was $5.8 million and $4.9 million as of July 28, 2012 and January 28, 2012, respectively. The Company is not aware of any events, conditions, or changes in demand or price that would indicate that its inventory valuation may not be materially accurate at this time.
|
3.
|
Income Taxes
. The Company records a deferred tax asset and liability for expected future tax consequences resulting from temporary differences between financial reporting and tax bases of assets and liabilities. The Company considers future taxable income and ongoing tax planning in assessing the value of its deferred tax assets. If the Company determines that it is more than likely that these assets will not be realized, the Company would reduce the value of these assets to their expected realizable value, thereby decreasing net income. Estimating the value of these assets is based upon the Company’s judgment. If the Company subsequently determined that the deferred tax assets, which had been written down, would be realized in the future, such value would be increased. Adjustment would be made to increase net income in the period such determination was made. As of July 28, 2012 and January 28, 2012, the Company’s non-current deferred tax liability includes a $0.2 million valuation allowance recorded to reduce the value of the Company’s capital loss carryforward to its expected realizable amount prior to expiration.
|
4.
|
Operating Leases
. The Company leases retail stores under operating leases. Most lease agreements contain tenant improvement allowances, rent holidays, rent escalation clauses, and/or contingent rent provisions. For purposes of recognizing lease incentives and minimum rental expense on a straight-line basis over the terms of the leases, the Company uses the date of initial possession to begin amortization, which is generally when the Company enters the space and begins to make improvements in preparation of intended use. For tenant improvement allowances and rent holidays, the Company records a deferred rent liability on the consolidated balance sheets and amortizes the deferred rent over the terms of the leases as reductions to rent expense on the consolidated statements of income.
|
5.
|
Investments
. Investments classified as short-term investments include securities with a maturity of greater than three months and less than one year. Available-for-sale securities are reported at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component of stockholders’ equity (net of the effect of income taxes), using the specific identification method, until they are sold.
|
●
|
Pricing was provided by the custodian of ARS;
|
●
|
Pricing was provided by a third-party broker for ARS;
|
●
|
Sales of similar securities;
|
●
|
Quoted prices for similar securities in active markets;
|
●
|
Quoted prices for publicly traded preferred securities;
|
●
|
Quoted prices for similar assets in markets that are not active - including markets where there are few transactions for the asset, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly;
|
●
|
Pricing was provided by a third-party valuation consultant (using Level 3 inputs).
|
|
●
|
Durations until redemption ranging from 0.5 to 31.0 years, with a weighted average of 5.0 years.
|
|
●
|
Discount rates ranging from 0.57% to 6.10%, with a weighted average of 2.43%.
|
|
●
|
Loss severities ranging from 0% to 25% of par value, with a weighted average of 6.92%.
|
Payments Due by Period
|
||||||||||||||||||||
Contractual obligations (dollar amounts in thousands):
|
Total
|
Less than
1
year
|
1-3 years
|
4-5 years
|
After 5
years
|
|||||||||||||||
Long term debt and purchase obligations
|
$ | 4,282 | $ | 4,195 | $ | 87 | $ | - | $ | - | ||||||||||
Deferred compensation
|
9,823 | - | - | - | 9,823 | |||||||||||||||
Operating leases
|
363,931 | 57,077 | 101,380 | 84,105 | 121,369 | |||||||||||||||
Total contractual obligations
|
$ | 378,036 | $ | 61,272 | $ | 101,467 | $ | 84,105 | $ | 131,192 |
Amount of Commitment Expiration Per Period
|
||||||||||||||||||||
Other commercial commitments (dollar amounts in thousands):
|
Total
Amounts
Committed
|
Less than
1
year
|
1-3 years
|
4-5 years
|
After 5
years
|
|||||||||||||||
Lines of credit
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Total commercial commitments
|
$ | - | $ | - | $ | - | $ | - | $ | - |
Total
Number
of Shares
Purchased
|
Average
Price Paid
Per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
|
Maximum Number of Shares
that May Yet Be Purchased
Under Publicly
Announced Plans
|
|||||||||||||
Apr. 29, 2012 to May 26, 2012
|
- | - | - | 543,900 | ||||||||||||
May 27, 2012 to June 30, 2012
|
- | - | - | 543,900 | ||||||||||||
July 1, 2012 to July 28, 2012
|
- | - | - | 543,900 | ||||||||||||
- | - | - |
Defaults Upon Senior Securities:
None
|
Mine Safety Disclosures.
None
|
Other Information:
None
|
Exhibits:
|
(a)
|
Exhibit 10.1. Revolving Line of Credit Note and First Amendment to Credit Agreement, dated June 8, 2012, between The Buckle, Inc. and Buckle Brands, Inc. and Wells Fargo Bank, N.A for a $25.0 million line of credit.
|
(b)
|
Exhibits 31.1 and 31.2 certifications, as well as Exhibits 32.1 and 32.2 Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
(c)
|
Exhibit 101 includes the following materials from The Buckle, Inc.’s Quarterly Report on Form 10-Q for the quarter ended July 28, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Income; (iii) Consolidated Statements of Comprehensive Income; (iv) Consolidated Statements of Stockholders’ Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and in detail.
|
THE BUCKLE, INC.
|
|
Dated:
September 6
,
2012
|
/s/ DENNIS H. NELSON
|
DENNIS H. NELSON, President and CEO
|
|
(principal executive officer)
|
|
Dated:
September 6,
2012
|
/s/ KAREN B. RHOADS
|
KAREN B. RHOADS, Vice President
|
|
of Finance and CFO
|
|
(principal accounting officer)
|
|
$25,000,000.00
|
Omaha, Nebraska
|
June 8, 2012
|
LIBOR =
|
Base LIBOR
|
|
100% - LIBOR Reserve Percentage
|
THE BUCKLE, INC.
|
||
By:
|
/s/ DENNIS H. NELSON
|
|
Title:
|
President and CEO
|
|
|
||
BUCKLE BRANDS, INC.
|
||
By:
|
/s/ DENNIS H. NELSON
|
|
Title:
|
President and CEO
|
|
WELLS FARGO BANK,
|
||||
THE BUCKLE, INC.
|
NATIONAL ASSOCIATION
|
|||
By:
|
/s/ DENNIS H. NELSON
|
By:
|
/s/ DAVID WISE
|
|
David Wise, Relationship Manager
|
||||
Title:
|
President and CEO
|
|
||
BUCKLE BRANDS, INC.
|
||||
By:
|
/s/ DENNIS H. NELSON
|
|||
Title:
|
President and CEO
|
1.
|
I have reviewed this report of The Buckle, Inc. on Form 10-Q for the quarterly period ended July 28, 2012;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors:
|
Date: September 6, 2012
|
/s/ DENNIS H. NELSON
|
|
Dennis H. Nelson
Chief Executive Officer
(principal executive officer)
|
1.
|
I have reviewed this report of The Buckle, Inc. on Form 10-Q for the quarterly period ended July 28, 2012;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors:
|
Date: September 6, 2012
|
/s/ KAREN B. RHOADS
|
|
Karen B. Rhoads
Chief Financial Officer
(principal accounting officer)
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|