Year Ended December 31,
( i n t h o u s a n d s , e x c e p t p e r s h a r e d a t a )
2 0 0 0
1 9 9 9
1 9 9 8
1 9 9 7
1 9 9 6
STATEMENT OF EARNINGS DATA:
Net revenue
$779,217
$599,650
$471,931
$515,372
$551,162
Earnings from operations
43,349
93,776
57,046
70,646
98,095
Earnings before interest and income taxes
43,349
96,485
56,183
68,605
97,106
Net earnings
16,493
51,900
25,111
37,511
66,741
SUPPLEMENTAL STATEMENTS OF EARNINGS DATA:
1
Earnings before income taxes and
change in accounting principle
2
29,593
87,100
43,291
54,887
82,567
Income taxes
13,100
35,200
18,180
21,337
33,241
Net earnings
16,493
51,900
25,111
37,511
49,326
EARNINGS PER SHARE:
3
Basic
0.38
1.21
0.59
0.87
1.18
Diluted
0.38
1.20
0.59
0.87
1.18
Weighted number of shares
outstanding -- basic
3
43,464
43,005
42,904
42,898
41,906
Weighted number of shares
outstanding -- diluted
3
43,819
43,366
42,919
42,902
41,908
December 31,
2 0 0 0
1 9 9 9
1 9 9 8
1 9 9 7
1 9 9 6
BALANCE SHEET DATA:
Working capital
$ 96,289
$ 97,944
$101,310
$106,670
$ 76,821
Total assets
419,683
369,036
263,772
287,814
239,306
Notes payable and long-term debt
103,781
83,363
99,000
141,517
127,316
Net stockholders' equity
175,156
167,355
100,409
75,330
34,928
1 R e f l e c t s p r o f o r m a a d j u s t m e n t s f o r 1 9 9 6 f o r f e d e r a l a n d s t a t e i n c o m e t a x e s a s i f t h e C o m p a n y h a d b e e n t a x e d a s a C c o r p o r a t i o n r a t h e r t h a n a n S c o r p o r a t i o n .
P r i o r t o t h e C o m p a n y 's I P O i n A u g u s t 1 9 9 6 , t h e C o m p a n y h a d e l e c t e d t o b e t a x e d a s a n S c o r p o r a t i o n f o r f e d e r a l i n c o m e t a x p u r p o s e s . I n c e r t a i n s t a t e s ,
t h e C o m p a n y w a s t a x e d a s a n S c o r p o r a t i o n ; i n o t h e r s t a t e s , t h e C o m p a n y w a s t a x e d a s a C c o r p o r a t i o n . E f f e c t i v e J a n u a r y 1 , 1 9 9 1 , t h e C o m p a n y e l e c t e d
t o b e t r e a t e d a s a n S c o r p o r a t i o n f o r C a l i f o r n i a t a x p u r p o s e s . A s a r e s u l t o f t h e C o m p a n y 's I P O , a l l S c o r p o r a t i o n e l e c t i o n s w e r e t e r m i n a t e d .
2 E f f e c t i v e J a n u a r y 1 , 1 9 9 7 , t h e C o m p a n y c h a n g e d i t s m e t h o d o f a c c o u n t i n g f o r p r o d u c t d i s p l a y f i x t u r e s l o c a t e d i n i t s w h o l e s a l e c u s t o m e r s ' r e t a i l s t o r e s ,
w h e r e b y t h e c o s t s f o r s u c h f i x t u r e s a r e c a p i t a l i z e d a n d a m o r t i z e d o v e r f i v e y e a r s u s i n g t h e s t r a i g h t - l i n e m e t h o d . I n p r i o r y e a r s , t h e s e c o s t s h a d b e e n
e x p e n s e d a s i n c u r r e d . T h e C o m p a n y b e l i e v e s t h a t t h i s n e w m e t h o d m o r e c l o s e l y m a t c h e s t h e l o n g - t e r m b e n e f i t t h a t t h e p r o d u c t d i s p l a y f i x t u r e s p r o v i d e
w i t h t h e e x p e c t e d f u t u r e r e v e n u e f r o m s u c h f i x t u r e s . T h e c u m u l a t i v e e f f e c t o f t h e c h a n g e i n a c c o u n t i n g p r i n c i p l e , r e c o r d e d i n t h e f i r s t q u a r t e r o f 1 9 9 7 ,
i s c a l c u l a t e d b a s e d u p o n t h e r e t r o a c t i v e e f f e c t o f a p p l y i n g t h e n e w a c c o u n t i n g m e t h o d t o p r i o r y e a r f i x t u r e a c q u i s i t i o n s . T h e c u m u l a t i v e e f f e c t o f t h e
c h a n g e i n a c c o u n t i n g p r i n c i p l e o f $ 4 . 0 m i l l i o n ( $ 0 . 0 9 p e r s h a r e a f t e r r e d u c t i o n f o r i n c o m e t a x e x p e n s e o f $ 2 . 7 m i l l i o n ) i s i n c l u d e d i n e a r n i n g s f o r t h e
y e a r e n d e d D e c e m b e r 3 1 , 1 9 9 7 . E x c l u d i n g t h e c u m u l a t i v e e f f e c t o f t h e c h a n g e i n a c c o u n t i n g p r i n c i p l e , t h e e f f e c t o f t h e c h a n g e d u r i n g 1 9 9 7 w a s t o
i n c r e a s e n e t e a r n i n g s b y a p p r o x i m a t e l y $ 6 . 2 m i l l i o n o r $ 0 . 1 4 p e r s h a r e .
3 T h e w e i g h t e d n u m b e r o f s h a r e s o u t s t a n d i n g a t D e c e m b e r 3 1 , 1 9 9 6 r e f l e c t s ( i ) 3 2 , 6 8 1 , 8 1 9 s h a r e s o f C o m m o n S t o c k o u t s t a n d i n g p r i o r t o t h e I P O a n d t h e
a s s u m e d i s s u a n c e o f 8 , 7 3 0 , 0 0 0 s h a r e s o f C o m m o n S t o c k a t t h e I P O p r i c e ( $ 1 8 . 0 0 p e r s h a r e ) t o g e n e r a t e s u f f i c i e n t c a s h t o p a y a d i s t r i b u t i o n o f r e t a i n e d
e a r n i n g s t o i t s t h e n e x i s t i n g s t o c k h o l d e r s a s p a r t o f t h e t e r m i n a t i o n o f i t s S c o r p o r a t i o n s t a t u s i n a n a m o u n t e q u a l t o r e t a i n e d e a r n i n g s a s o f t h e I P O d a t e
a n d ( i i ) a n a v e r a g e o f 4 2 , 6 8 2 , 0 0 0 s h a r e s o u t s t a n d i n g s u b s e q u e n t t o t h e I P O , r e p r e s e n t i n g t h e a c t u a l s h a r e s o u t s t a n d i n g .
page
2 5
GUESS?, Inc. and Subsidiaries
S E L E C T E D F I N A N C I A L D A T A
