of Financial Condition and Results
of Operations
19 - 25
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
26
Item 4.
Controls and Procedures
26
PART

II - OTHER INFORMATION
Item 1.
Legal Proceedings
27
Item 1A.
Risk Factors
27
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
27
Item 3.
Defaults Upon Senior Securities
27
Item 4.
Mine Safety Disclosures
28
Item 5.
Other Information
28
Item 6.
Exhibits
28
Signatures
29




























2
PART

I FINANCIAL INFORMATION
ITEM 1.

FINANCIAL STATEMENTS
THE CATO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS

OF INCOME AND
COMPREHENSIVE INCOME
(UNAUDITED)
Three Months Ended
April 30, 2022
May 1, 2021
(Dollars in thousands, except per share data)
REVENUES

Retail sales
$
204,933
$
211,234

Other revenue (principally finance charges, late fees and



layaway charges)
1,788
1,851

Total revenues
206,721
213,085
COSTS AND EXPENSES, NET

Cost of goods sold (exclusive of depreciation shown below) 132,243 123,675

Selling, general and administrative (exclusive of depreciation



shown below)
60,441
63,237

Depreciation
2,743
3,042

Interest and other income
(403)
(663)

Costs and expenses, net
195,024
189,291
Income before income taxes
11,697
23,794
Income tax expense
1,949
3,081
Net income
$
9,748
$
20,713
Basic earnings per share
$
0.46
$
0.92
Diluted earnings per share
$
0.46
$
0.92
Comprehensive income:
Net income
$
9,748
$
20,713
Unrealized gain (loss) on available-for-sale securities, net


of deferred income taxes of ($
362
) and ($
40
) for April 30, 2022
(1,206)
(134)

and May 1, 2021, respectively
Comprehensive income
$
8,542
$
20,579
See notes to condensed consolidated financial statements (unaudited).




















3
THE CATO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
April 30, 2022
January 29, 2022
(Dollars in thousands)
ASSETS
Current Assets:
Cash and cash equivalents

$
25,881
$
19,759
Short-term investments

120,021
145,998
Restricted cash
3,920
3,919
Accounts receivable, net of allowance for customer credit losses of

$
801

and $
803

at April 30, 2022 and January 29, 2022, respectively
60,121
55,812
Merchandise inventories

127,576
124,907
Prepaid expenses and other current assets
6,029
5,273

Total Current Assets

343,548
355,668
Property and equipment - net

67,079
63,083
Noncurrent deferred income taxes
9,674
9,313
Other assets

23,192
24,437
Right-of-Use assets - net

168,537
181,265

Total Assets

$
612,030
$
633,766
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable

$
106,229
$
109,546
Accrued expenses

45,377
40,373
Accrued bonus and benefits

18,901
26,488
Accrued income taxes

2,062
920
Current lease liability
63,175
66,808

Total Current Liabilities

235,744
244,135
Other noncurrent liabilities
17,797
17,914
Lease liability
107,837
117,521
Stockholders' Equity:
Preferred stock, $
100

par value per share,
100,000

shares

authorized, none issued

-
-
Class A common stock, $
0.033

par value per share,
50,000,000

shares authorized;
19,223,633

and
19,824,093

shares issued

at April 30, 2022 and January 29, 2022, respectively
649
669
Convertible Class B common stock, $
0.033

par value per share,

15,000,000

shares authorized;
1,763,652

and

1,763,652

shares issued at April 30, 2022 and January 29, 2022, respectively
59
59
Additional paid-in capital

120,249
119,540
Retained earnings

131,181
134,208

Accumulated other comprehensive income



(1,486)
(280)

Total Stockholders' Equity

250,652
254,196

Total Liabilities and Stockholders' Equity



$

612,030


$

633,766

See notes to condensed consolidated financial statements (unaudited).























4
THE CATO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS

OF CASH FLOWS
(UNAUDITED)
Three Months Ended
April 30, 2022
May 1, 2021
(Dollars in thousands)
Operating Activities:
Net income
$
9,748
$
20,713
Adjustments to reconcile net income to net cash provided (used) by operating
activities:
Depreciation
2,743
3,042
Provision for customer credit losses
72
113
Purchase premium and premium amortization of investments
388
(1,121)
Share-based compensation
624
306
Deferred income taxes
-
(1)
Loss on disposal of property and equipment
16
58
Changes in operating assets and liabilities which provided (used) cash:

Accounts receivable
(4,382)
(2,510)

Merchandise inventories
(2,669)
(726)

Prepaid and other assets
474
(493)

Operating lease right-of-use assets and liabilities (590) (1,242)



Accrued income taxes
1,142
356

Accounts payable, accrued expenses and other liabilities
(8,331)
26,005
Net cash provided (used) by operating activities
(765)
44,500
Investing Activities:
Expenditures for property and equipment

(4,440)

(554)


Purchase of short-term investments
(1,529)
(62,075)
Sales of short-term investments
25,566
28,397
Net cash provided (used) by investing activities
19,597
(34,232)
Financing Activities:
Dividends paid
(3,638)
-
Repurchase of common stock
(9,162)
(5,629)
Proceeds from employee stock purchase plan
91
128
Net cash provided (used) by financing activities
(12,709)
(5,501)
Net increase (decrease) in cash, cash equivalents, and restricted cash
6,123
4,767
Cash, cash equivalents, and restricted cash at beginning of period
23,678
21,022
Cash, cash equivalents, and restricted cash at end of period

$
29,801
$
25,789
Non-cash activity:
Accrued other assets and property and equipment
$
2,971
$
263
See notes to condensed consolidated financial statements (unaudited).




5
THE CATO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS

OF STOCKHOLDERS' EQUITY
(UNAUDITED)
Accumulated
Additional
Other
Total
Common
Paid-in
Retained
Comprehensive
Stockholders'
Stock
Capital
Earnings
Income
Equity
(Dollars in thousands)
Balance - January 29, 2022
$
728
$
119,540
$
134,208
$
(280)
$
254,196
Comprehensive income:

Net income
-
-
9,748
-
9,748

Unrealized net losses on available-for-sale securities, net of deferred




income tax benefit of ($
362
)
-
-
-
(1,206)
(1,206)
Dividends paid ($
0.17

per share)
-
-
(3,638)
-
(3,638)
Class A common stock sold through employee stock purchase


plan -
9,468

shares
-
111
-
-
111

Class A common stock issued through restricted stock grant plans



-


0 shares
-
598
5
-
603
Repurchase and retirement of treasury shares -
609,928

shares

(20)
-
(9,142)
-
(9,162)
Balance - April 30, 2022
$
708
$
120,249
$
131,181
$
(1,486)
$
250,652
Accumulated
Additional
Other
Total
Common
Paid-in
Retained
Comprehensive
Stockholders'
Stock
Capital
Earnings
Income
Equity
(Dollars in thousands)
Balance - January 30, 2021
$
762
$
115,278
$
129,303
$
1,155
$
246,498
Comprehensive income:

Net income
-
-
20,713
-
20,713

Unrealized net losses on available-for-sale securities, net of deferred




income tax benefit of ($
40
)
-
-
-
(134)
(134)
Dividends paid ($0.00 per share)
-
-
-
-
-
Class A common stock sold through employee stock purchase


plan -
19,248

shares
1
150
-
-
151

Class A common stock issued through restricted stock grant plans



-


396,558

shares
13
271
-
-
284
Repurchase and retirement of treasury shares -
425,661

shares

(14)
-
(5,615)
-
(5,629)
Balance - May 1, 2021
$
762
$
115,699
$
144,401
$
1,021
$
261,883
See notes to condensed consolidated financial statements (unaudited).

THE CATO CORPORATION

© Edgar Online, source Glimpses