10-Q 1 cato22qtr3q.htm FORM 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended October 29, 2022

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________to__________________

Commission file number                1-31340

 

THE CATO CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

56-0484485

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

 

8100 Denmark Road, Charlotte, North Carolina 28273-5975

(Address of principal executive offices)

(Zip Code)

 

(704)554-8510

(Registrant's telephone number, including area code)

 

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A - Common Stock, par value $.033 per share

CATO

New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

X

No

 

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

X

No

 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

As of October 29, 2022, there were 19,128,675 shares of Class A common stock and 1,763,652 shares of Class B common stock outstanding.

 


 

THE CATO CORPORATION

 

FORM 10-Q

 

Quarter Ended October 29, 2022

Table of Contents

 

Page No.

 

PART I – FINANCIAL INFORMATION (UNAUDITED)

 

 

 

 

 

Item 1.

Financial Statements (Unaudited):

 

 

 

 

Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)

3

 

 

For the Three Months and Nine Months Ended October 29, 2022 and October 30, 2021

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

4

 

 

At October 29, 2022 and January 29, 2022

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows

5

 

 

For the Nine Months Ended October 29, 2022 and October 30, 2021

 

 

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity

6 – 7

 

 

For the Nine Months Ended October 29, 2022 and October 30, 2021

 

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements

8 – 22

 

 

For the Three Months and Nine Months Ended October 29, 2022 and October 30, 2021

 

 

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

23 – 30

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

31

 

 

 

 

Item 4.

Controls and Procedures

31

 

 

 

 

PART II – OTHER INFORMATION

 

 

 

 

 

 

Item 1.

Legal Proceedings

32

 

 

 

 

 

Item 1A.

Risk Factors

32

 

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

33

 

 

 

 

 

Item 3.

Defaults Upon Senior Securities

33

 

 

 

 

 

Item 4.

Mine Safety Disclosures

34

 

 

 

 

 

Item 5.

Other Information

34

 

 

 

 

 

Item 6.

Exhibits

34

 

 

 

 

 

Signatures

35

2


 

PART I FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

THE CATO CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND

COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

October 29, 2022

 

October 30, 2021

 

October 29, 2022

 

October 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

REVENUES

 

 

 

 

 

 

 

 

 

 

 

Retail sales

$

174,921

 

$

170,513

 

$

574,860

 

$

587,709

Other revenue (principally finance charges, late fees and

 

 

 

 

 

 

 

 

 

 

 

layaway charges)

 

1,705

 

 

1,700

 

 

5,351

 

 

5,335

Total revenues

 

176,626

 

 

172,213

 

 

580,211

 

 

593,044

 

 

 

 

 

 

 

 

 

 

 

 

COSTS AND EXPENSES, NET

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold (exclusive of depreciation shown below)

 

123,752

 

 

104,225

 

 

387,744

 

 

343,487

Selling, general and administrative (exclusive of depreciation

 

 

 

 

 

 

 

 

 

 

 

shown below)

 

61,397

 

 

62,466

 

 

182,606

 

 

196,687

Depreciation

 

2,864

 

 

3,173

 

 

8,418

 

 

9,352

Interest and other income

 

(2,278)

 

 

(541)

 

 

(4,565)

 

 

(1,719)

Costs and expenses, net

 

185,735

 

 

169,323

 

 

574,203

 

 

547,807

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(9,109)

 

 

2,890

 

 

6,008

 

 

45,237

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense

 

(4,656)

 

 

(5,713)

 

 

2,988

 

 

1,929

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(4,453)

 

$

8,603

 

$

3,020

 

$

43,308

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

$

(0.21)

 

$

0.39

 

$

0.14

 

$

1.93

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share

$

(0.21)

 

$

0.39

 

$

0.14

 

$

1.93

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(4,453)

 

$

8,603

 

$

3,020

 

$

43,308

Unrealized gain (loss) on available-for-sale securities, net of

 

 

 

 

 

 

 

 

 

 

 

deferred income taxes of ($189) and ($532) for the three and

 

 

 

 

 

 

 

 

 

 

 

nine months ended October 29, 2022 and ($150) and ($235) for

 

 

 

 

 

 

 

 

 

 

 

the three and nine months ended October 30, 2021, respectively

 

(629)

 

 

(496)

 

 

(1,774)

 

 

(775)

Comprehensive income (loss)

$

(5,082)

 

$

8,107

 

$

1,246

 

$

42,533

 

See notes to condensed consolidated financial statements (unaudited).

3


 

 

THE CATO CORPORATION

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

October 29, 2022

 

January 29, 2022

 

 

 

 

 

 

ASSETS

(Dollars in thousands)

Current Assets:

 

 

 

 

 

Cash and cash equivalents

$

17,282

 

$

19,759

Short-term investments

 

128,458

 

 

145,998

Restricted cash

 

3,743

 

 

3,919

Accounts receivable, net of allowance for customer credit losses of

 

 

 

 

 

$827 and $803 at October 29, 2022 and January 29, 2022, respectively

 

25,679

 

 

55,812

Merchandise inventories

 

116,718

 

 

124,907

Prepaid expenses and other current assets

 

6,947

 

 

5,273

Total Current Assets

 

298,827

 

 

355,668

Property and equipment – net

 

70,595

 

 

63,083

Noncurrent deferred income taxes

 

9,844

 

 

9,313

Other assets

 

21,103

 

 

24,437

Right-of-Use assets – net

 

140,176

 

 

181,265

Total Assets

$

540,545

 

$

633,766

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

$

95,155

 

$

109,546

Accrued expenses

 

47,003

 

 

40,373

Accrued employee benefits and bonus

 

2,709

 

 

26,488

Accrued income taxes

 

2,838

 

 

920

Current lease liability

 

55,723

 

 

66,808

Total Current Liabilities

 

203,428

 

 

244,135

Other noncurrent liabilities

 

16,688

 

 

17,914

Lease liability

 

85,622

 

 

117,521

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

Preferred stock, $100 par value per share, 100,000 shares

 

 

 

 

 

authorized, none issued

 

-

 

 

-

Class A common stock, $0.033 par value per share, 50,000,000

 

 

 

 

 

shares authorized; 19,128,675 shares and 19,824,093 shares

 

 

 

 

 

issued at October 29, 2022 and January 29, 2022, respectively

 

646

 

 

669

Convertible Class B common stock, $0.033 par value per share,

 

 

 

 

 

15,000,000 shares authorized; 1,763,652 shares and 1,763,652 shares

 

 

 

 

 

issued at October 29, 2022 and January 29, 2022, respectively

 

59

 

 

59

Additional paid-in capital

 

121,314

 

 

119,540

Retained earnings

 

114,842

 

 

134,208

Accumulated other comprehensive income

 

(2,054)

 

 

(280)

Total Stockholders' Equity

 

234,807

 

 

254,196

Total Liabilities and Stockholders' Equity

$

540,545

 

$

633,766

 

See notes to condensed consolidated financial statements (unaudited).

4


 

THE CATO CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

Nine Months Ended

 

 

October 29, 2022

 

October 30, 2021

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

Net income

$

3,020

 

$

43,308

 

Adjustments to reconcile net income to net cash provided

 

 

 

 

 

 

by operating activities:

 

 

 

 

 

 

Depreciation

 

8,418

 

 

9,352

 

Provision for customer credit losses

 

217

 

 

368

 

Purchase premium and premium amortization of investments

 

606

 

 

(952)

 

Share-based compensation

 

1,517

 

 

2,999

 

Loss on disposal of property and equipment

 

106

 

 

392

 

Changes in operating assets and liabilities which provided

 

 

 

 

 

 

(used) cash:

 

 

 

 

 

 

Accounts receivable

 

29,916

 

 

(3,641)

 

Merchandise inventories

 

8,189

 

 

(6,106)

 

Prepaid and other assets

 

1,704

 

 

(6,190)

 

Operating lease right-of-use assets and liabilities

 

(1,895)

 

 

(2,892)

 

Accrued income taxes

 

1,918

 

 

3,891

 

Accounts payable, accrued expenses and other liabilities

 

(34,418)

 

 

38,881

 

Net cash provided by operating activities

 

19,298

 

 

79,410

 

 

 

 

 

 

 

 

Investing Activities:

 

 

 

 

 

 

Expenditures for property and equipment

 

(14,382)

 

 

(1,790)

 

Purchase of short-term investments

 

(53,765)

 

 

(131,837)

 

Sales of short-term investments

 

68,348

 

 

82,355

 

Net cash provided by (used in) investing activities

 

201

 

 

(51,272)

 

 

 

 

 

 

 

 

Financing Activities:

 

 

 

 

 

 

Dividends paid

 

(10,870)

 

 

(6,276)

 

Repurchase of common stock

 

(11,561)

 

 

(15,152)

 

Proceeds from employee stock purchase plan

 

279

 

 

176

 

Net cash used in financing activities

 

(22,152)

 

 

(21,252)

 

 

 

 

 

 

 

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

(2,653)

 

 

6,886

 

 

 

 

 

 

 

 

Cash, cash equivalents, and restricted cash at beginning of period

 

23,678

 

 

21,022

 

Cash, cash equivalents, and restricted cash at end of period

$

21,025

 

$

27,908

 

 

 

 

 

 

 

 

Non-cash activity:

 

 

 

 

 

 

Accrued other assets and property and equipment

$

2,311

 

$

862

 

 

 

See notes to condensed consolidated financial statements (unaudited).

5


 

THE CATO CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

Additional

 

 

Other

Total

 

Common

Paid-in

Retained

Comprehensive

Stockholders'

 

Stock

Capital

Earnings

Income

Equity

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance — January 29, 2022

$

728

$

119,540

$

134,208

$

(280)

$

254,196

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

-

 

-

 

9,748

 

-

 

9,748

Unrealized gain (loss) on available-for-sale securities, net of

 

 

 

 

 

 

 

 

 

 

deferred income tax benefit of ($362)

 

-

 

-

 

-

 

(1,206)

 

(1,206)

Dividends paid ($0.17 per share)

 

-

 

-

 

(3,638)

 

-

 

(3,638)

Class A common stock sold through employee stock purchase plan

 

-

 

111

 

-

 

-

 

111

Share-based compensation issuances and exercises

 

-

 

-

 

5

 

-

 

5

Share-based compensation expense

 

-

 

598

 

-

 

-

 

598

Repurchase and retirement of treasury shares

 

(20)

 

-

 

(9,142)

 

-

 

(9,162)

 

 

 

 

 

 

 

 

 

 

 

Balance — April 30, 2022

$

708

$

120,249

$

131,181

$

(1,486)

$

250,652

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

-

 

-

 

(2,274)

 

-

 

(2,274)

Unrealized gain (loss) on available-for-sale securities, net of

 

 

 

 

 

 

 

 

 

 

deferred income tax expense of $18

 

-

 

-

 

-

 

61

 

61

Dividends paid ($0.17 per share)

 

-

 

-

 

(3,632)

 

-

 

(3,632)

Class A common stock sold through employee stock purchase plan

 

-

 

62

 

-

 

-

 

62

Share-based compensation issuances and exercises

 

7

 

308

 

6

 

-

 

321

Share-based compensation expense

 

-

 

1,077

 

-

 

-

 

1,077

Repurchase and retirement of treasury shares

 

(1)

 

-

 

(433)

 

-

 

(434)

 

 

 

 

 

 

 

 

 

 

 

Balance — July 30, 2022

$

714

$

121,696

$

124,848

$

(1,425)

$

245,833

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

-

 

-

 

(4,453)

 

-

 

(4,453)

Unrealized gain (loss) on available-for-sale securities, net of

 

 

 

 

 

 

 

 

 

 

deferred income tax benefit of ($189)

 

-

 

-

 

-

 

(629)

 

(629)

Dividends paid ($0.17 per share)

 

-

 

-

 

(3,600)

 

-

 

(3,600)

Class A common stock sold through employee stock purchase plan

 

1

 

154

 

-

 

-

 

155

Share-based compensation issuances and exercises

 

-

 

(308)

 

-

 

-

 

(308)

Share-based compensation expense

 

(3)

 

(228)

 

5

 

-

 

(226)

Repurchase and retirement of treasury shares

 

(7)

 

-

 

(1,958)

 

-

 

(1,965)

 

 

 

 

 

 

 

 

 

 

 

Balance — October 29, 2022

$

705

$

121,314

$

114,842

$

(2,054)

$

234,807

 

 

See notes to condensed consolidated financial statements (unaudited).

6


 

THE CATO CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

 

 

 

 

 

 

 

Accumulated

 

 

 

 

Additional

 

 

Other

Total

 

Common

Paid-in

Retained

Comprehensive

Stockholders'

 

Stock

Capital

Earnings

Income

Equity

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance — January 30, 2021

$

762

$

115,278

$

129,303

$

1,155

$

246,498

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

-

 

-

 

20,713

 

-

 

20,713

Unrealized gain (loss) on available-for-sale securities, net of

 

 

 

 

 

 

 

 

 

 

deferred income tax benefit of ($40)

 

-

 

-

 

-

 

(134)

 

(134)

Dividends paid ($ - per share)

 

-

 

-

 

-

 

-

 

-

Class A common stock sold through employee stock purchase plan

 

1

 

150

 

-

 

-

 

151

Share-based compensation issuances and exercises

 

13

 

(12)

 

-

 

-

 

1

Share-based compensation expense

 

-

 

283

 

-

 

-

 

283

Repurchase and retirement of treasury shares

 

(14)

 

-

 

(5,615)

 

-

 

(5,629)

 

 

 

 

 

 

 

 

 

 

 

Balance — May 1, 2021

$

762

$

115,699

$

144,401

$

1,021

$

261,883

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

-

 

-

 

13,992

 

-

 

13,992

Unrealized gain (loss) on available-for-sale securities, net of

 

 

 

 

 

 

 

 

 

 

deferred income tax benefit of ($44)

 

-

 

-

 

-

 

(145)

 

(145)

Dividends paid ($0.11 per share)

 

-

 

-

 

(2,488)

 

-

 

(2,488)

Class A common stock sold through employee stock purchase plan

 

-

 

23

 

-

 

-

 

23

Share-based compensation issuances and exercises

 

-

 

509

 

5

 

-

 

514

Share-based compensation expense

 

-

 

1,081

 

-

 

-

 

1,081

Repurchase and retirement of treasury shares

 

(2)

 

-

 

(1,046)

 

-

 

(1,048)

 

 

 

 

 

 

 

 

 

 

 

Balance — July 31, 2021

$

760

$

117,312

$

154,864

$

876

$

273,812

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

-

 

-

 

8,603

 

-

 

8,603

Unrealized gain (loss) on available-for-sale securities, net of

 

 

 

 

 

 

 

 

 

 

deferred income tax benefit of ($150)

 

-

 

-

 

-

 

(496)

 

(496)

Dividends paid ($0.17 per share)

 

-

 

-

 

(3,788)

 

-

 

(3,788)

Class A common stock sold through employee stock purchase plan

 

-

 

34

 

-

 

-

 

34

Share-based compensation issuances and exercises

 

-

 

1,081

 

8

 

-

 

1,089

Share-based compensation expense

 

-

 

-

 

-

 

-

 

-

Repurchase and retirement of treasury shares

 

(18)

 

-

 

(8,458)

 

-

 

(8,476)

 

 

 

 

 

 

 

 

 

 

 

Balance — October 30, 2021

$

742

$

118,427

$

151,229

$

380

$

270,778

 

See notes to condensed consolidated financial statements (unaudited).

NOTE 1 - GENERAL:

 

The condensed consolidated financial statements have been prepared from the accounting records of The Cato Corporation and its wholly-owned subsidiaries (the “Company”), and all amounts shown as of and for the periods ended October 29, 2022 and October 30, 2021 are unaudited. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements have been included. All such adjustments are of a normal, recurring nature unless otherwise noted. The results of the interim period may not be indicative of the results expected for the entire year.

 

The interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2022. Amounts as of January 29, 2022 have been derived from the audited balance sheet, but do not include all disclosures required by accounting principles generally accepted in the United States of America.

 

The Company received $33 million of its income tax receivable in the second quarter of the current fiscal year. The Company anticipates that the remaining balance, which is included in Accounts receivable in the accompanying Condensed Consolidated Balance Sheets, will be received by the end of the fourth quarter of fiscal 2022.

 

During the third quarter of the current fiscal year, the Company received $1.4 million from the state of North Carolina’s Business Recovery Program, which provides aid to eligible North Carolina businesses that suffered significant economic damage from the COVID-19 pandemic. The full amount received is recorded in Interest and other income in the accompanying Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss).

 

On November 17, 2022, the Board of Directors maintained the quarterly dividend at $0.17 per share.

 

Recently Adopted Accounting Policies

 

In November 2021, the Financial Accounting Standards Board issued Accounting Standards Update 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update provides for increased transparency of government assistance, including the disclosure of the types of assistance an entity receives, an entity’s method of accounting for government assistance and the effect of the assistance on an entity’s financial statements. This standard is effective for annual periods beginning after December 15, 2021. The Company adopted this standard on a prospective basis on January 30, 2022.

7


 

 

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND NINE MONTHS ENDED OCTOBER 29, 2022 AND OCTOBER 30, 2021

 

 

 

 

8


 

 

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND NINE MONTHS ENDED OCTOBER 29, 2022 AND OCTOBER 30, 2021

 

 

 

NOTE 2 - EARNINGS PER SHARE:

 

Accounting Standard Codification (“ASC”) 260 – Earnings Per Share requires dual presentation of basic and diluted Earnings Per Share (“EPS”) on the face of all income statements for all entities with complex capital structures. The Company has presented one basic EPS and one diluted EPS amount for all common shares in the accompanying Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). While the Company’s certificate of incorporation provides the right for the Board of Directors to declare dividends on Class A shares without declaration of commensurate dividends on Class B shares, the Company has historically paid the same dividends to both Class A and Class B shareholders and the Board of Directors has resolved to continue this practice. Accordingly, the Company’s allocation of income for purposes of the EPS computation is the same for Class A and Class B shares and the EPS amounts reported herein are applicable to both Class A and Class B shares.

 

Basic EPS is computed as net income less earnings allocated to non-vested equity awards divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and the Employee Stock Purchase Plan.

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

 

October 29, 2022

 

 

October 30, 2021

 

 

October 29, 2022

 

 

October 30, 2021

 

 

(Dollars in thousands)

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

(4,453)

 

$

8,603

 

$

3,020

 

$

43,308

 

(Earnings) loss allocated to non-vested equity awards

 

 

240

 

 

(464)

 

 

(153)

 

 

(2,239)

 

Net earnings (loss) available to common stockholders

 

$

(4,213)

 

$

8,139

 

$

2,867

 

$

41,069

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

 

19,934,592

 

 

21,030,099

 

 

20,029,703

 

 

21,295,693

 

Diluted weighted average common shares outstanding

 

 

19,934,592

 

 

21,030,099

 

 

20,029,703

 

 

21,295,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

(0.21)

 

$

0.39

 

$

0.14

 

$

1.93

 

Diluted earnings (loss) per share

 

$

(0.21)

 

$

0.39

 

$

0.14

 

$

1.93

9


 

 

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND NINE MONTHS ENDED OCTOBER 29, 2022 AND OCTOBER 30, 2021

 

 

 

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME:

 

The following table sets forth information regarding the reclassification out of Accumulated other comprehensive income (in thousands) for the three months ended October 29, 2022:

 

 

 

Changes in Accumulated Other

 

 

 

Comprehensive Income (a)

 

 

 

 

 

Unrealized Gains

 

 

 

 

 

 

 

and (Losses) on

 

 

 

 

 

 

 

Available-for-Sale

 

 

 

 

 

 

 

Securities

 

 

 

 

Beginning Balance at July 30, 2022

 

$

(1,425)

 

 

 

 

Other comprehensive income before