Analyze the financial performance of Vera Bradley, including key financial ratios. Would you describe the company as financially strong? Why or why not.
EXHIBIT I Flnanclal Summary for Vera Bradley, Inc., Fiscal 2011-Fiscal 2015 dollar amounts in thousands, except per share and store data) Fiscal Year Endec January 31 February1 February 2, January 28, January 29, 2013 2015 2014 2012 2011 Consolidated statement of income data Net revenues Cost of sales 508,990 536,021 541,148 460,843 366,057 239.981240,589 232,86 203,220 156910 209.147 163,053 37364776 627 7975 7225 53,319 Gross profit Selling. general, and administrative expenses Other income 269,009 295,432 205,957 308,281 204.412 257,623 169.427 208,675 64,070 63,663 Operating income Interest expense, net 94.251 382 93,869 6791147 95,024 Income before income taxes 109.467 22,82835,057 40597 37.103 5496 $38.44958,812 68,870 57.921 46,198 36,813 36,851 Income tax expense Net income Basic weighted-average shares outstanding Diluted welghted-average shares outstanding Basic net income per share Diluted net income per share 40,568 40,632 40,599 40,648 40,536 40,571 40,507 40542 Net revenues by segment Direct Indirect $335,602 326,217 209,804 $508,990 536,021 292,564 $225,287 151.118 248,584 541.148 460,843 366,057 173,388 235.556 214.939 Total stores open at end of year Comparable-store sales (decrease) Increase Total gross square footage at end ofyear Average net revenues per gross square foot Consolidated balance sheet data Cash and casheuvaents Working capital Total assets Long-term debt, including current portion Shareholders' equity 76 56 (1.3% 34.8% 278,779 760 156,310 $1,083 113,504 $1,042 74.426 851 207,096 $887 112,29259,215 9,603 4,922 13,953 45,641 277,319 15,095 194.255 204,648 377,284 186,543 332.927 106,234 219,513 25,184 124,007 206,039 67,017 64,322 284.471 255.147 Source: Vera Bradley, Inc., 10K report 2014, 2015 EXHIBIT 2 Vera Bradley, Inc:'s Balance Sheets, Fiscal 2014-Fiscal 2015 (in thousands) Fiscal Year Ended January 31, 2015 February 1, 2014 Assets Current assets: Cash and casheents Accounts recelvable, net Inventories Prepaid expenses and other current assets Deferred income taxes Total current assets $112 292 31,374 98403 9.100 13,320 267,697 109,003 59,215 27.718 136,923 9,952 13,094 246,902 84.940 1085 $332,927 Property, plant, and equipment, net Other assets Total assets $377 284 Liabilities and shareholders equity Current liabilities: Accounts payable Accrued employment costs Other accrued liabilities Income taxes payable Total current liabilities $32.906 14595 15,548 27,745 10,586 20.403 63,049 60,359 Long-term debt Deferred Income taxes Other long-term liabilities 5297 24467 92813 4,643 12,778 77.780 Total liabilities Commitments and contingencies Shareholders' equity Preferred stock; 5,000 shares authortzed, no shares Issued or outstanding Common stock, without par value: 200,000 shares authorized, 40,695 and 40,607 shares issued and outstanding respectively Additional pald-In capital Retained earnings 80,992 216.451 (15) (12.957 284471 $277284 78,153 178,002 (1,008) Accumulated other comprehenslve loss Treasury stock Total shareholders equity Total labilities and shareholders' equity 255,147 $332.927
