UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 29, 2007
CIRCUIT CITY STORES, INC.
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(Exact name of registrant as specified in its charter)
Virginia
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(State or other jurisdiction of incorporation)
001-05767 54-0493875
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(Commission File Number) (I.R.S. Employer
Identification Number)
9950 Mayland Drive, Richmond, Virginia 23233
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(Address of principal executive offices) (Zip Code)
(804) 486-4000
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
SECTION 7 - REGULATION FD
Item 7.01 Regulation FD Disclosure.
The company returned the management of 92 Rogers Plus(R) stores to Rogers
Wireless Inc. in January 2007. The following quarterly information is being
provided to reflect the presentation of the results from these 92 Rogers Plus(R)
stores as discontinued operations.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CIRCUIT CITY STORES, INC.
By: /s/ Philip J. Dunn
---------------
Philip J. Dunn
Senior Vice President, Treasurer, Controller
and Chief Accounting Officer
Dated: March 29, 2007
CIRCUIT CITY STORES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands except per share data)
(UNAUDITED)
Three Months Ended
---------------------------------------------
May 31, August 31, November 30,
2006 2006 2006
------------- ------------- --------------
NET SALES $ 2,596,615 $ 2,818,498 $ 3,080,982
Cost of sales, buying and warehousing 1,960,851 2,148,355 2,398,135
------------- ------------- --------------
GROSS PROFIT 635,764 670,143 682,847
Selling, general and administrative expenses 634,292 656,670 714,766
------------- ------------- --------------
OPERATING INCOME (LOSS) 1,472 13,473 (31,919)
Interest income 7,046 5,794 5,744
Interest expense 212 113 1,034
------------- ------------- --------------
Earnings (loss) from continuing operations before income taxes 8,306 19,154 (27,209)
Income tax provision (benefit) 2,999 7,499 (11,710)
------------- ------------- --------------
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS 5,307 11,655 (15,499)
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX (708) (1,614) (491)
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE, NET OF TAX 1,773 - -
------------- ------------- --------------
NET EARNINGS (LOSS) $ 6,372 $ 10,041 $ (15,990)
============= ============= ==============
Weighted average common shares:
Basic 171,054 169,973 171,063
============= ============= ==============
Diluted 176,256 174,659 171,063
============= ============= ==============
EARNINGS (LOSS) PER SHARE:
Basic:
Continuing operations $ 0.03 $ 0.07 $ (0.09)
Discontinued operations $ - $ (0.01) $ -
Cumulative effect of change in accounting principle $ 0.01 $ - $ -
Net earnings (loss) $ 0.04 $ 0.06 $ (0.09)
Diluted:
Continuing operations $ 0.03 $ 0.07 $ (0.09)
Discontinued operations $ - $ (0.01) $ -
Cumulative effect of change in accounting principle $ 0.01 $ - $ -
Net earnings (loss) $ 0.04 $ 0.06 $ (0.09)
CIRCUIT CITY STORES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands except per share data)
(UNAUDITED)
Three Months Ended
-------------------------------------------- Fiscal Year Ended
May 31, August 31, November 30, February 28, February 28,
2005 2005 2005 2006 2006
---------- --------- ---------- --------- ------------
NET SALES 2,212,095 $2,535,956 $2,879,715 $3,886,385 $ 11,514,151
Cost of sales, buying and warehousing 1,658,064 1,931,708 2,185,163 2,928,748 8,703,683
---------- --------- ---------- --------- ------------
GROSS PROFIT 554,031 604,248 694,552 957,637 2,810,468
Selling, general and administrative expenses 579,743 604,573 682,843 728,547 2,595,706
---------- --------- ---------- --------- ------------
OPERATING (LOSS) INCOME (25,712) (325) 11,709 229,090 214,762
Interest income 6,292 4,602 4,334 6,598 21,826
Interest expense 415 215 1,113 1,400 3,143
---------- --------- ---------- --------- ------------
(Loss) earnings from continuing operations before income taxes (19,835) 4,062 14,930 234,288 233,445
Income tax (benefit) provision (7,565) 1,410 5,843 86,308 85,996
---------- --------- ---------- --------- ------------
NET (LOSS) EARNINGS FROM CONTINUING OPERATIONS (12,270) 2,652 9,087 147,980 147,449
(LOSS) EARNINGS FROM DISCONTINUED OPERATIONS, NET OF TAX (839) (1,304) 1,055 (4,262) (5,350)
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE, NET OF TAX - - - (2,353) (2,353)
---------- --------- ---------- --------- -----------
NET (LOSS) EARNINGS (13,109) $ 1,348 $ 10,142 $ 141,365 $ 139,746
========== ========= ========== ========= ============
Weighted average common shares:
Basic 184,729 179,057 174,438 171,433 177,456
========== ========= ========== ========= ============
Diluted 184,729 181,801 177,509 175,516 180,653
========== ========= ========== ========= ============
(LOSS) EARNINGS PER SHARE:
Basic:
Continuing operations (0.07) $ 0.01 $ 0.05 $ 0.86 $ 0.83
Discontinued operations (0.00) $ (0.01) $ 0.01 $ (0.02) $ (0.03)
Cumulative effect of change in accounting principle - $ - $ - $ (0.01) $ (0.01)
Net (loss) earnings (0.07) $ 0.01 $ 0.06 $ 0.82 $ 0.79
Diluted:
Continuing operations (0.07) $ 0.01 $ 0.05 $ 0.84 $ 0.82
Discontinued operations (0.00) $ (0.01) $ 0.01 $ (0.02) $ (0.03)
Cumulative effect of change in accounting principle - $ - $ - $ (0.01) $ (0.01)
Net (loss) earnings (0.07) $ 0.01 $ 0.06 $ 0.81 $ 0.77
CIRCUIT CITY STORES, INC.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Consolidated
Three Months Ended
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May 31, 2006 August 31, 2006 November 30, 2006
(Dollar amounts in millions) $ % of Sales $ % of Sales $ % of Sales
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Store expenses 534.0 20.6 % 563.1 20.0 % 633.3 20.6 %
General and administrative expenses 87.4 3.4 83.6 3.0 78.1 2.5
Stock-based compensation expense 8.7 0.3 6.6 0.2 5.4 0.2
Remodel expenses - - 0.5 - 0.1 -
Relocation expenses 1.5 0.1 0.5 - (7.0) (0.2)
Pre-opening expenses 2.6 0.1 2.4 0.1 4.9 0.2
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Total 634.3 24.4 % 656.7 23.3 % 714.8 23.2 %
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Three Months Ended
--------------------------------------------------------------------------- Fiscal Year Ended
May 31, 2005 August 31, 2005 November 30, 2005 February 28, 2006 February 28, 2006
(Dollar amounts in millions) $ % of Sales $ % of Sales $ % of Sales $ % of Sales $ % of Sales
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Store expenses 497.0 22.5% 516.8 20.4% 580.1 20.1% 641.5 16.5% 2,235.4 19.4%
General and administrative expenses 77.2 3.5 78.8 3.1 86.4 3.0 74.8 1.9 317.2 2.8
Stock-based compensation expense 3.2 0.1 6.6 0.3 9.3 0.3 7.8 0.2 26.9 0.2
Remodel expenses - - - - - - - - - -
Relocation expenses 2.0 0.1 0.3 - 2.6 0.1 2.2 0.1 7.1 0.1
Pre-opening expenses 0.2 0.0 2.1 0.1 4.3 0.2 2.4 0.1 9.0 0.1
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Total 579.7 26.2% 604.6 23.8% 682.8 23.7% 728.5 18.7% 2,595.7 22.5%
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International Segment
Three Months Ended
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May 31, 2006 August 31, 2006 November 30, 2006
(Dollar amounts in millions) $ % of Sales $ % of Sales $ % of Sales
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Store expenses $ 37.1 33.4 % 38.9 28.2 % 41.1 27.3 %
General and administrative expenses 8.5 7.7 9.2 6.7 8.7 5.8
Stock-based compensation expense 1.1 1.0 0.2 0.1 0.3 0.2
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Total $ 46.7 42.0 % 48.3 35.0 % 50.0 33.3 %
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Three Months Ended
----------------------------------------------------------------------------- Fiscal Year Ended
May 31, 2005 August 31, 2005 November 30, 2005 February 28, 2006 February 28, 2006
(Dollar amounts in millions) $ % of Sales $ % of Sales $ % of Sales $ % of Sales $ % of Sales
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Store expenses $31.2 32.0% 32.8 26.9% 40.6 27.3% 45.5 26.5% 150.1 27.8%
General and administrative expenses 20.2 20.7 16.2 13.3 18.0 12.1 10.3 6.0 64.7 12.0
Stock-based compensation expense 0.2 0.2 0.2 0.1 0.3 0.2 0.3 0.2 1.0 0.2
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Total $51.6 52.9% 49.2 40.3% 58.9 39.6% 56.1 32.7% 215.8 40.0%
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CIRCUIT CITY STORES, INC.
INTERNATIONAL SEGMENT PERFORMANCE SUMMARY AND
COMPARABLE STORE SALES CHANGE SUMMARY
International Segment Performance Summary
Three Months Ended
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May 31, Aug. 31, Nov. 30,
(Amounts in millions) 2006 2006 2006
-------------------------------------------------------------------------------------------------
Net sales $111.1 $137.9 $150.2
Gross profit $ 40.9 $ 50.5 $ 50.5
Selling, general and administrative expenses $ 46.7 $ 48.3 $ 50.0
Net (loss) earnings from continuing operations $ (4.0) $ 1.2 $ (0.1)
Three Months Ended
-------------------------------------------------------- Fiscal Year Ended
May 31, Aug. 31, Nov. 30, Feb. 28, Feb. 28,
(Amounts in millions) 2005 2005 2005 2006 2006
----------------------------------------------------------------------------------------------------------------------------
Net sales $ 97.5 $121.9 $148.9 $171.8 $ 540.2
Gross profit $ 41.1 $ 46.5 $ 53.5 $ 64.9 $ 206.0
Selling, general and administrative expenses $ 51.6 $ 49.2 $ 58.9 $ 56.1 $ 215.8
Net (loss) earnings from continuing operations $ (6.4) $ (1.7) $ (4.0) $ 4.8 $ (7.3)
Comparable Store Sales Change Summary
Consolidated
Three Months Ended
---------------------------------------- One Month Ended
May 31, Aug. 31, Nov. 30, Dec. 31,
2006 2006 2006 2006
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Comparable store sales change 14.6 % 8.5 % 5.2 % 4.3 %
Three Months Ended One Month Three Months Fiscal Year
Ended Ended Ended
May 31, Aug. 31, Nov. 30, Dec. 31, Feb. 28, Feb 28,
2005 2005 2005 2005 2006 2006
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Comparable store sales change 0.0 % 5.1 % 13.1 % 10.8 % 11.6% 8.2%
International Segment
Three Months Ended
---------------------------------------- One Month Ended
May 31, Aug. 31, Nov. 30, Dec. 31,
2006 2006 2006 2006
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Comparable store sales change (0.3)% (0.1)% (3.1)% (2.0)%
Three Months Ended One Month Three Months Fiscal Year
--------------------------------- Ended Ended Ended
May 31, Aug. 31, Nov. 30, Dec. 31, Feb. 28, Feb. 28,
2005* 2005 2005 2005 2006 2006
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Comparable store sales change - % 5.4 % 7.5 % 2.9 % 2.9% 5.0%
*International segment sales were not included in the company's comparable store
sales until the quarter ended August 31, 2005.