Cato(US:CATO)2023-03-22 16:00Store Operations - In fiscal 2022, the Company opened 19 new stores and closed 50 stores, indicating a net reduction of 31 locations[168]. Financial Performance - Total revenues for the fiscal year ended January 28, 2023, were $759,260,000, a decrease of 1.3% from $769,271,000 in fiscal 2021[352]. - The Company reported a net income of $29,000 for fiscal 2022, a significant decline from $36,844,000 in fiscal 2021[352]. - Basic and diluted earnings per share for fiscal 2022 were both $0.00, compared to $1.65 in fiscal 2021[352]. - The Company reported a net loss of $(5,902) thousand in interest and other income for the fiscal year ended January 28, 2023, compared to $(2,141) thousand for the fiscal year ended January 29, 2022[401]. - The Company reported finance charge and late charge revenue of $2,243,000 for the fiscal year ended January 28, 2023, an increase from $2,066,000 in the previous year[417]. Costs and Expenses - Cost of goods sold increased to $509,664,000 in fiscal 2022 from $453,065,000 in fiscal 2021, reflecting a rise of 12.5%[352]. - Advertising expenses rose to approximately $6,868,000 in fiscal 2022, up from $6,037,000 in fiscal 2021, marking an increase of 13.7%[343]. - The Company faced higher operating costs due to inflation, impacting shipping, supplies, wages, and fuel, which affects customers' disposable income and willingness to purchase discretionary items[164]. Tax and Refunds - The Company reported a refund of $29.206 million in income tax payments for the fiscal year ended January 28, 2023, compared to a payment of $13.176 million in the previous year[331]. Equity and Liabilities - The Company's total stockholders' equity as of January 28, 2023, was $226.593 million, a decrease from $254.196 million as of January 29, 2022[326]. - The Company had total liabilities of $(8,903) thousand as of January 28, 2023, with no outstanding borrowings under its $35 million revolving credit agreement[393]. - The company’s total liabilities related to deferred compensation decreased from $(10,020,000) at January 29, 2022, to $(8,903,000) at January 28, 2023, indicating improved financial health[413]. Assets and Investments - The total assets of the company as of January 28, 2023, amounted to $158,288,000, compared to $145,998,000 in the previous year, reflecting an increase of approximately 8.4%[408]. - The investment portfolio primarily consisted of corporate bonds and governmental debt securities, with a fair value of $108,652 thousand as of January 28, 2023[403]. - The Company’s cash surrender value of life insurance decreased to $9,274 thousand as of January 28, 2023, from $11,472 thousand as of January 29, 2022[386]. - The cash surrender value of life insurance assets was reported at $11,472,000 as of January 28, 2023, compared to $18,556,000 in the previous year[408]. - The Company’s short-term investments are classified as available-for-sale and are carried at fair value, impacting the overall financial position[330]. Management and Internal Controls - The Company maintained effective internal control over financial reporting as of January 28, 2023, based on established criteria[313]. - The Company’s management is responsible for the consolidated financial statements and the effectiveness of internal control over financial reporting[314]. Employee and Compensation - The total accrued employment and related items increased to $7,377 thousand as of January 28, 2023, from $6,388 thousand as of January 29, 2022[391]. - The Company contributed $32,510,000 to the Employee Stock Ownership Plan (ESOP) for the year ended January 28, 2023, up from $29,430,000 in the previous year[424]. Other Financial Metrics - The Company estimated customer credit losses of $349,000 for the twelve months ended January 28, 2023, on proprietary credit card sales of $23.3 million[367]. - The Company’s allowance for customer credit losses was approximately $280,000 for the fiscal year ended January 28, 2023, down from $429,000 in the previous year[417]. - The unrealized net gain/loss on short-term investments was $(1,609,000) for the year ended January 28, 2023, compared to $(1,238,000) in the previous year[405]. - The accumulated unrealized gains and losses in short-term investments were reported as part of accumulated other comprehensive income, reflecting the fair value of investments[381]. Government Assistance - The Company received $1.4 million from North Carolina's Business Recovery Program in fiscal 2022 due to COVID-19 impacts[351]. - The Company adopted new accounting standards for government assistance disclosures effective January 30, 2022, enhancing transparency regarding government assistance received[375].