Linens 'n Things, Inc. (NYSE: LIN) today announced net income for the second quarter ended July 1, 2000 of $6.9 million, or $0.17 per share, an increase of 36.1%, compared with $5.1 million, or $0.12 per share, for the same period last year. Net sales increased 25.0% to $339.7 million for the second quarter ended July 1, 2000 up from $271.6 million for the same period last year. Comparable store net sales for the second quarter increased 5.7% as compared with 6.4% for the same period last year.

Net income for the twenty-six week period ending July 1, 2000 was $12.0 million, or $0.30 per share, an increase of 38.0%, compared with $8.7 million, or $0.21 per share, for the same period last year. Net sales increased 22.3% to $666.6 million for the twenty-six week period ended July 1, 2000 up from $545.2 million for the same period last year. Comparable store net sales for the twenty-six week period ended July 1, 2000 increased 4.5% as compared with 6.4% for the same period last year.

The Company ended the second quarter with $14.5 million in short-term borrowings and reported a net cash position of $6.6 million.

During the second quarter, the Company opened five new stores and closed one store, as compared with opening 11 stores and closing three stores during the same period last year. Year to date, the Company opened 17 stores and closed three stores, increasing its total square footage to 8,451,000. The Company currently projects opening approximately 50 to 55 stores in 2000, further expanding its presence as a leading retailer of home furnishings. Stores which are scheduled to open in the third quarter, include: Santa Margarita, CA; Hadley, MA; Leominister, MA; Coon Rapids, MN; Chesterfield, MO; Fenton, MO; Hickory, NC; Fayetteville, NC; Lincoln, NE; Concord, NH; Albany, NY; Clifton Park, NY; Kingston, NY; Niles, OH; Oklahoma City, OK; Erie, PA; Knoxville, TN; Midland, TX; San Antonio, TX; Cedar Hill, TX and Spokane, WA.

Linens 'n Things, Inc.

Linens 'n Things, with 1999 sales of $1,300.6 million, is one of the leading, national large format retailers of home textiles, housewares and home accessories. At the end of the second quarter ended July 1, 2000, the Company was operating 244 stores in 40 states and two provinces across the United States and Canada.

The foregoing contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. The statements are made a number of times throughout the document and may be identified by forward-looking terminology as ``expect,'' ``believe,'' ``may,'' ``will,'' ``intend'' or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties including levels of sales, store traffic, acceptance of product offerings and fashions, competitive pressures from other home furnishings retailers, availability of suitable future store locations and schedule of store expansion. These and other important factors that may cause actual results to differ materially from such forward-looking statements are included in the ``Risk Factors'' section of the Company's Registration Statement on Form S-1 as filed with the Securities and Exchange Commission on May 29, 1997, and may be contained in subsequent reports filed with the Securities and Exchange Commission. You are urged to consider such factors. The Company assumes no obligation for updating any such forward-looking statements.

LINENS 'N THINGS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
         
 
Second Quarter Ended
Twenty-Six Weeks Ended
 
July 1,
July 3,
July 1,
July 3,
 
2000
1999
2000
1999
 
(unaudited)
(unaudited)
 
Net sales
$339,655
$271,628
$666,631
$545,168
Cost of sales
199,972
160,733
398,647
327,581
 
Gross profit
139,683
110,895
267,984
217,587
Selling, general and administrative expenses
127,743
102,454
247,970
203,497
 
Operating profit
11,940
8,441
20,014
14,090
Interest expense (income), net
666
143
560
(55)
 
Income before provision for income taxes
11,274
8,298
19,454
14,145
Provision for income taxes
4,327
3,195
7,452
5,447
 
Net income
$ 6,947
$ 5,103
$ 12,002
$ 8,698
 
Per share of common stock:
Basic
Net income per share
$ 0.18
$ 0.13
$ 0.30
$ 0.22
Weighted average shares outstanding
39,672
39,362
39,577
39,259
 
Diluted
Net income per share
$ 0.17
$ 0.12
$ 0.30
$ 0.21
Weighted average shares outstanding
40,621
41,074
39,766
40,968

 

LINENS 'N THINGS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
     
 
July 1, 2000
July 3, 1999
ASSETS (unaudited)
Current assets:
Cash and cash equivalents
$ 6,608
$ 3,901
Inventories
426,455
332,626
Other current assets
45,056
47,202
 
Total current assets
478,119
383,729
 
Property and equipment, net
241,060
200,556
Other non-current assets
25,412
25,644
 
Total assets
$744,591
$609,929
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$192,891
$157,156
Accrued expenses and other current liabilities
84,801
73,239
Short-term debt
14,500
---
 
Total current liabilities
292,192
230,395
 
Other long-term liabilities
51,776
41,139
 
Total liabilities
343,968
271,534
 
Shareholders' equity
400,623
338,395
 
Total liabilities and shareholders' equity
$744,591
$609,929
 
     
LINENS 'N THINGS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
     
 
Twenty-Six Weeks Ended
 
July 1, 2000
July 3, 1999
Cash Flows From Operating Activities
(unaudited)
 
Net income
$ 12,002
$ 8,698
 
Depreciation and amortization
15,598
12,637
 
Change in working capital
(62,472)
(32,183)
 
Net cash used in operating activities
(34,872)
(10,848)
 
Cash Flows From Investing Activities
 
Additions to property and equipment
(33,003)
(33,163)
 
Cash Flows From Financing Activities
 
Increase in short-term debt
14,500
---
 
Proceeds from common stock exercised under stock incentive plans
4,659
7,165
Purchase of treasury stock
---
(1,044)
Other
9,573
(847)
 
Net cash provided by financing activities
28,732
5,274
 
Net decrease in cash and cash equivalents
(39,143)
(38,737)
 
Cash and cash equivalents at beginning of period
45,751
42,638
 
Cash and cash equivalents at end of period
$ 6,608
$ 3,901