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PetSmart, Inc. Message Board

  • not_a_short not_a_short Mar 4, 2000 10:02 AM Flag

    Flat earnings

    The only reason the earnings per share increased
    was due to the smaller number of shares in the per
    share calculations. This reduction was mainly due to
    the fact that 20M shares related to the convertible
    were not included since the conversion price is higher
    than the market price. If you add them in to get a
    fair comparison with last year you get $.15 earnings.

    I don't know who they think they are fooling. It is
    a misrepresentation to compare fully diluted
    numbers with undiluted numbers.


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    • Thank you for corrercting me. I'll try to improve my spelling.

      In the free classes that you mention, do they serve free kauphy?

    • I am sure are available some where near your
      location. These services are often free or available at low
      cost. Please take advantage of this chance to improve
      your communication skills.
      Simple spelling errors
      detract greatly from the message you are trying to

      Plagiarize is the correct spelling.

    • Short, I understand your question. There is a
      rule (FAS 128 paragraph 96) which requires the use of
      a "control number" for the denominator in the EPS
      calculation. It states that when there are other EPS amounts
      to report for the quarter, the control number
      denominator is based on earnings from continuing operations
      (net loss in PETM's Q4). All other EPS amounts will be
      calculated using the same denomintor so that they will be
      additive. Is it fair comparison in this case? No. Is is
      according to GAAP? Yes! I suggest comparing the net income
      dollar amount and ignore EPS, but remember are fewer
      shares outstanding this year.
      If this was answered
      later, sorry don't want to appear to plagerize


    • two of the seven analysts following PETM have
      upgraded their recommendations from buy to strong buy.
      This could result in some more institutional buying,
      and when coupled with Petsmart's stock buy back plan,
      we should begin to see an upward bias.

    • Statement of Operations and you will see the
      requisite disclosures. Here is the link,

      Where does PETM fail to report "diluted" eps/lps? Where
      does PETM compare "basic" versus "diluted" per share

    • Nowhere in the press releases I have seen do they
      report earnings (excluding losses) using the fully
      diluted number.

      Do you think the earning
      estimates were for diluted or undiluted earnings per


    • Q4 Statement of Operations for PETM and you will
      see that PETM reported both "basic" and "diluted"
      numbers. How are you determining that PETM violated SEC
      regulations by not doing so? How did you determine PETM
      compared a "basic" eps in 1999 with a "diluted" eps in

      Do you understand my question? Can you
      read financial statements?

    • petsmart losses last quarter whete due to uk sale
      and Uk is gone. That losses
      show up next quarter. is going to have is
      own ipo. Is petsmart going to gain from the ipo ?
      Comparing ipet with, ipet has less revenue and
      more losses than petsmart.

    • You really don't seem to get my point. Let me
      restate it clearly. PETM would have reported $.15 for Q4
      earnings (excluding losses) if they had used the diluted
      number like they did last year. I'm not sure of the SEC
      rules for deciding when they must use the diluted vs
      the undiluted number. In any event, they should have
      reported both numbers so as to not confuse or mislead
      investors. The whole point of reporting the earnings
      excluding charges is to help investors understand how the
      business is doing. Do you understand my point?

      Maybe blsh can help out out on the rules for using the
      diluted vs the undiluted number. I'm sure there is no
      rule for providing both diluted and undiluted

      Do you think the earnings estimates were for
      undiluted or diluted numbers? They are usually for fully
      diluted numbers. In my opinion PETM management used the
      undiluted number to show they met the earnings estimates. I
      feel they missed the earnings number. They did however
      succeed in convincing the financial press that they did
      meet the estimate.

      Serious investors do no
      take kindly to this sort of


    • you posted. You conveniently omitted the articles

      Thursday March 2, 4:10 pm Eastern Time
      Company Press
      PETsMART, Inc. Reports Fourth Quarter Results
      Operating Income Increases 39 Percent

      Note ...
      the important disclosure is operating income is up
      39%. Why did you not include this in your previous
      post? Hmmmmmmmmm.

      BTW ... I already showed you
      that Q4 operating income was up over 9% with the
      adverse impact of system conversion costs and store
      opening expense spend ... 20% if you exclude those items.
      See post 16290.

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