Google Finance
SEC Filing
Web Site
Aug 16, 2011
Check list:
1.Major Business.
Sale home decors, gifts. 294 stores across U.S at end of Q2 2011. Found by Carl Kirkland(and others maybe) at 1966 and IPO at 2002.
Q1 to Q3 sales almost flat. Q4 50% higher.
2.Balance sheet.
Recent Price:$8.61, Tangible book value:$6.15, Share outstanding:19.9m, Market Cap:$172m.
Current asset:$145m, Current liability:$41m, Debt:0, Inventory:$45m, Cash:$90m.
Current ratio >3.
3.Credit facility.
$50m with BAC to 2016. around LIBOR+2%. No covenants. Current no amount outstanding.
4.Financial data by years.
| 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 415 | 406 | 391 | 396 | 443 | 415 | 394 | 369 | 342 | 307 |
| Stores | 300 | 279 | 299 | 335 | 349 | 347 | 320 | 280 | 249 | 233 |
| Income/s | 1.28 | 1.71 | 0.47 | (1.33) | (0.01) | 0.01 | 0.34 | 0.92 | 0.70 | (0.60) |
| FCF | 14.1 | 40 | 30.6 | (19.6) | 10 | (4.0) | 0.3 | 13.1 | 10.3 | 32.8 |
| Cash | 91.2 | 76.4 | 36.4 | 5.8 | 25.4 | 15.0 | 17.9 | 17.4 | 4.2 | 29.7 |
| Debt | 0* | 58 |
*Used IPO to paid off all debt and preferred stock.
Revenue/Price > 2:1
Never paid any dividend.
5.Cost structure
Leasing obligations: Around $40m per year.
6.Insider holding, options, Insider trading info, share buy back.
Robert Alderson(CEO): 810k(4%)(include 350k options)
Carl Kirkland(founder):1.5m(7.5%). there is also 1m (5%) share for his family.
Royce and other 3 funds: 4.6m(20%).
1.8m options outstanding. Average exercise price $9.78
Issued share buy back of $50m at Aug 2011 for the next 18 month. Around 30% of current market cap.
7.Management compensation.
2010 top 3 $3.5m
8.Employee numbers. Revenue/Employee. Compensation/Employee.
around 3948 employees at Mar. 2011. Around $100k sales per employee.
9.Industry comparison.
Major competitors in the same industry. Whether the business is competitive?
10.Auditor
Ernst & Young LLP.
11.Major events.
Business acquisition, law suit etc.
12.Comments.
Concerns and thoughts.
