MIRA INFORM REPORT

 

 

Report Date :

05.06.2008

 

IDENTIFICATION DETAILS

 

Name :

JO-ANN STORES, INC.

 

 

Registered Office :

5555 Darrow Road, Hudson, OH 44236

 

 

Country :

United States

 

 

Financials (as on) :

02.02.2008

 

 

Date of Incorporation :

02.28.1951

 

 

Legal Form :

Company quoted on the NYSE Stock Exchange under the symbol “JAS”

 

 

Line of Business :

Specialty Retailer of Crafts

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1,500,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

 

 

 

 

 

 

REQUIRED CREDIT

 

 

ADVISED CREDIT

 

 

MAXIMUM

 

 

1,500,000 USD

 

 

GEOPOLITICS

 

 

POLITICAL DATA

 

 

ECONOMIC DATA

FORM OF GOVERNMENT

 

ECONOMIC RISK

Federal

 


None

 

CURRENCY

 

BRANCH SITUATION

 

USD

 

Satisfying

 

 

IDENTIFICATION

 

 

Company Name:

 

 

JO-ANN STORES, INC. Dba Jo-Ann Fabrics & Crafts

 

Address:

 

 

5555 Darrow Road
Hudson, OH 44236
United States 

 

Phone:

Facsimile:

 

ID:

 

 

State:

 

 

Managers:

 

+ 1 (330) 656-2600

+ 1 (330) 463-6660

 

222082

 

Ohio

 

 

Darrell Webb,  President

 

 

Date founded:

 

 

 02/28/1951


 

Company quoted on the NYSE Stock Exchange under the symbol “JAS”

 

25,276,325

 

N.A.

 

 

5,427 employees

 

Legal form:

 

 

 

Stock:

 

Value:

 

 

Staff:

Business: 

Specialty retailer of crafts

 

 

BANKS

 

LONDON INTERBANK

NATIONAL CITIBANK

FLEET NATIONAL BANK

 

 

BUSINESS

 

Business & Operations:

 

Jo-Ann Stores, Inc. operates as a specialty retailer of crafts in the United States. It operates retail stores under the names of Jo-Ann Fabrics and Crafts and Jo-Ann, which offer a range of merchandise used in sewing, crafting, and home decorating projects, including fabrics, notions, crafts, frames, paper crafting material, artificial and dried flowers, home accents, finished seasonal, and home decor merchandise.

 

As of January 28, 2006, Jo-Ann Stores operated 838 stores in 47 states. The company was founded in 1943 and is based in Hudson, Ohio.

 

Most of the company's roughly 838 stores, located mainly in strip shopping centers, operate under the Jo-Ann Fabrics and Crafts name. The company also operates about 155 Jo-Ann superstores. Recognizing that sewing these days is more often a hobby than a necessity, the company is luring creative customers with arts and crafts and home-decorating items.

 

 

SHAREHOLDERS – SUBSIDIARIES – MANAGERS

 

The directors of the company are:

 

- Darrell Webb, President and Chief Executive Officer,

 

-James Kerr, Chief Financial Officer,

 

-Kenneth Haverkost, Executive Vice President of Store Operations,

 

-Travis Smith, Executive Vice President of Merchandising and Marketing.

 

The major direct holders with 4% of shares are:

 

- TENNENBAUM CAPITAL PARTNERS LLC,

 

-ROSSKAMM ALAN,

 

-WEBB DARRELL,

 

-HOLMBERG DAVID,

 

-SMITH TRAVIS.

 

98% of Shares are Held by Institutional & Mutual Funds.

 

 

FINANCIALS – COMMERCIAL TRENDS AND FORECAST

 

The company is quoted on the NYSE Stock Exchange under the symbol “JAS”.

 

Sales for the year 2007 are in the range of USD 1,878,800,000.

 

We notice a profit of USD 15,400,000.

 

 

All numbers are in thousands USD.

 

 

Annual Income Statement

 

PERIOD ENDING

2-Feb-08

3-Feb-07

28-Jan-06

Total Revenue

1,878,800  

1,850,600  

1,882,800  

Cost of Revenue

1,006,400  

990,800  

1,023,600  

 

Gross Profit

872,400  

859,800  

859,200  

 

 

Operating Expenses

 

Research Development

-  

-  

-  

 

Selling General and Administrative

774,800  

790,500  

774,000  

 

Non Recurring

8,400  

11,100  

50,500  

 

Others

51,800  

49,200  

42,200  

 

 

 

Total Operating Expenses

-  

-  

-  

 

 

 

 

 

Operating Income or Loss

37,400  

9,000  

(7,500)

 

 

 

 

Income from Continuing Operations

 

 

Total Other Income/Expenses Net

-  

-  

-  

 

 

Earnings Before Interest And Taxes

37,400  

9,000  

(7,500)

 

 

Interest Expense

12,500  

15,600  

12,800  

 

 

Income Before Tax

24,900  

(6,600)

(20,300)

 

 

Income Tax Expense

9,500  

(3,700)

2,700  

 

 

Minority Interest

-  

-  

-  

 

 

 

 

Net Income From Continuing Ops

15,400  

(2,900)

(23,000)

 

 

 

 

Non-recurring Events

 

 

Discontinued Operations

-  

-  

-  

 

 

Extraordinary Items

-  

-  

-  

 

 

Effect Of Accounting Changes

-  

1,000  

-  

 

 

Other Items

-  

-  

-  

 

 

 

 

 

Net Income

15,400  

(1,900)

(23,000)

 

Preferred Stock And Other Adjustments

-  

-  

-  

 

 

 

Net Income Applicable To Common Shares

$15,400  

($1,900)

($23,000)

 

 

Annual Balance Sheet

 

PERIOD ENDING

2-Feb-08

3-Feb-07

28-Jan-06

 

Assets

Current Assets

 

Cash And Cash Equivalents

25,400  

18,400  

17,900  

 

Short Term Investments

-  

-  

-  

 

Net Receivables

26,400  

32,000  

38,000  

 

Inventory

472,200  

453,400  

514,700  

 

Other Current Assets

23,800  

30,400  

35,200  

 

Total Current Assets

547,800  

534,200  

605,800  

Long Term Investments

-  

-  

-  

Property Plant and Equipment

297,500  

311,800  

331,700  

Goodwill

11,800  

-  

-  

Intangible Assets

-  

-  

-  

Accumulated Amortization

-  

-  

-  

Other Assets

12,300  

10,700  

9,300  

Deferred Long Term Asset Charges

-  

-  

-  

 

Total Assets

869,400  

856,700  

946,800  

 

Liabilities

Current Liabilities

 

Accounts Payable

242,400  

222,300  

240,700  

 

Short/Current Long Term Debt

-  

-  

-  

 

Other Current Liabilities

-  

-  

-  

 

Total Current Liabilities

242,400  

222,300  

240,700  

Long Term Debt

187,000  

125,300  

283,500  

Other Liabilities

-  

85,100  

-  

Deferred Long Term Liability Charges

-  

14,200  

23,200  

Minority Interest

-  

-  

-  

Negative Goodwill

-  

-  

-  

 

Total Liabilities

429,400  

446,900  

547,400  

 

Stockholders' Equity

Misc Stocks Options Warrants

-  

-  

-  

Redeemable Preferred Stock

-  

-  

-  

Preferred Stock

-  

-  

-  

Common Stock

1,400  

1,400  

1,400  

Retained Earnings

288,500  

274,700  

276,600  

Treasury Stock

(44,500)

(43,200)

(44,000)

Capital Surplus

194,600  

176,900  

165,400  

Other Stockholder Equity

-  

-  

-  

 

Total Stockholder Equity

440,000  

409,800  

399,400  

 

Net Tangible Assets

$428,200  

$409,800  

$399,400  

 

 

A litigation search did not show any significant legal actions in the name of the subject firm.

 

There is no active UCC file listed with the Secretary of State of Ohio.

                                                                 

 

RATING

 

Local credit bureau gave a medium credit rate.

 

The Company is in “good standing”.

This means that all local and federal taxes were paid on due date.

 

 

-        The cash flow is medium.

 

-        Payments are made on a regular basis.

 

 

Our final opinion

 

This is a large company working worldwide.

 

A credit line may be considered.

 

 

SUMMARY

 

 

FINANCIAL SUMMARY

 

 

DEBT COLLECTIONS AND PAYMENTS

PROFITABILITY

 

INDEBTNESS

 

CASH

 

Low

 

Controlled

 

Medium

PUBLIC

 

PAYMENTS

 

 

None

 

Regular

 

 

 

ADVISED CREDIT

 

1,500,000 USD

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions