MIRA INFORM REPORT

 

 

Report Date :           

13.07.2011

 

IDENTIFICATION DETAILS

 

Correct  Name :

ZALE CORPORATION (PIERCING PAGODA)

 

 

Registered Office :

2711 Centerville Road Suite 400, Wilmington, De 19808

 

 

Country :

United States 

 

 

Financials (as on) :

31.07.2010

 

 

Date of Incorporation :

26.04.1991

 

 

Legal Form :

Corporation for Profit

 

 

Line of Business :

Specialty retailer of fine jewelry

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

No Complaints 

 

 

Litigation :

Exists

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

United States 

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 Bottom of Form

 

GEOPOLITICS - UNITED STATES

 

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal


Economic Risk: Nil

Currency: USD

Branch Situation: Stable

 

 

IDENTIFICATION

 

Ordered as:

Zales Corporation USA

Address in the order:

901 W Walmnut Hill Lane, Irving TX 75038

 

 

Legal Name:

ZALE CORPORATION (Piercing Pagoda)

Trade Name:

Piercing Pagoda

Legal Address

2711 CENTERVILLE ROAD SUITE 400, WILMINGTON, DE 19808, USA (Register Agent)

Operative Address

901 W. Walnut Hill Lane, Irving, TX 75038-1003, USA

Telephone:

(972) 580 - 4000

ID :

2261333

Fax:

(972) 580 - 4000

Legal Form:

Corporation for Profit

Email:

info@zalecorp.com

Registered in:

Delaware

Website:

http://www.zalecorp.com

Date Created:

1989

Manager:

Theo Killion

Date Incorporated:

April 26, 1991

Staff:

14,500

Stock:

31,980,529

 

 

Value:

$.01

Activity:

Specialty retailer of fine jewelry.

 

 

BANKS

 

Name of the Bank

CITIBANK

 

 

BUSINESS

 

HISTORY

 

The company was founded in 1989 and is headquartered in Irving, Texas.

PRINCIPAL ACTIVITY

 

The company operates as a specialty retailer of fine jewelry.

Products/Services description:

 

At July 31, 2010, Piercing Pagoda operated 672 locations in 41 states and Puerto Rico. The Kiosk Jewelry segment specializes in gold and silver products, including entry level diamond merchandise, that capitalize on the latest fashion trends.

Sales are:

 

Retail

Brands:

 

The company operates through 6 brands:

ZALES

ZALES OUTLET

GORDON´S JEWELERS

PEOPLES

MAPPINS

PIERCING PAGODA

Operations area:

 

National, International

The company export to Canada and Puerto Rico

The subject employs 14,500 employee(s)

PAYMENTS

 

made on a 90 days basis - monitored over the last 12 months

LOCATION

Headquarters

 

The company is headquartered in:

901 W. Walnut Hill Lane, Irving, TX 75038-1003

Comments on location:

 

The company is incorporated in Delaware for tax purposes.

Branches:

 

The company has 1,930 locations throughout the USA, Canada and Puerto Rico.

 

 

Shareholders - Manager - Related Companies

 

Listed at the stock exchange:

 

YES

Capital:

 

% of Shares Held by All Insider and 5% Owners: 25%

% of Shares Held by Institutional & Mutual Fund Owners: 36%

% of Float Held by Institutional & Mutual Fund Owners: 48%

Number of Institutions Holding Shares: 79

Shareholders Parent Company(ies):

 

Major Direct Holders (shares)

 

BREEDEN CAPITAL MANAGEMENT LLC: N/A

GOLDBERG NEAL: 233,584

KILLION THEO: 130,752

HOLLANDER GILBERT P: 46,702

APPEL MATTHEW: 18,677

 

Top Institutional Holders (%):

 

DIMENSIONAL FUND ADVISORS LP: 8.47

Bank of New York Mellon Corporation: 4.00

Scopus Asset Management, LLC: 3.90

Breeden Capital Management LLC: 24.21

VANGUARD GROUP, INC. (THE): 2.30

 

Top Mutual Fund Holders (%):

 

DFA U.S. SMALL CAP VALUE SERIES: 4.63

JNL VARIABLE LLC-JNL/MELLON CAP MANAGEMENT S&P SMID 60 FD: 3.04

VANGUARD TOTAL STOCK MARKET INDEX FUND: 1.24

ISHARES S&P SMALLCAP 600 INDEX FD: 1.10

VANGUARD EXTENDED MARKET INDEX FUND: 0.60

BRIDGEWAY FDS INC-ULTRA SMALL COMPANY MARKET FD: 0.59

Management:

 

Directors:

Yuval Braverman

Richard C. Breeden

James M. Cotter

Stefan Kaluzny

John B. Lowe, Jr

Peter Morrow

Charles M. Sonsteby

 

Management:

Theo Killion, Chief Executive Officer

Matthew W. Appel, Executive Vice President, Chief Financial Officer

Gilbert P. Hollander, Executive Vice President, Chief Merchant & Sourcing Officer

Richard A. Lennox, Executive Vice President, Chief Marketing Officer



Financials - COMMERCIAL TRENDS AND FORECAST

 

The subject is a public company traded at the New York Stock Exchange, under the symbol "ZLC". Please find enclosed the financial statements.

Legal Fillings

 There are several UCC** files listed with the Secretary of State of Delaware

 

The company is subject to various legal proceedings and claims that arise in the ordinary course of their business. Although the outcome of these other claims cannot be predicted with certainty, management does not believe that the ultimate resolution of these matters will have a material adverse effect on the financial condition or results of operations

 

THE COMPANY IS NOT LISTED ON THE OFAC LIST.*

 

For information:

 

* The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.

 

 

** The Uniform Commercial Code (UCC) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America. 

 

The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property).

 

It allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

 

The Uniform Commercial Code Bureau files and maintains on financial obligations (including IRS liens) incurred by individuals (in business as a sole proprietor), business entities and corporations.

 

 

Rating

 

Local credit bureau gave a Correct credit rate.

 

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

 Final Opinion

 

This is a large US company, with 14,500 employees and 21 years of experience.

 

As profitability ratios are negative we suggest working with GUARANTEES.



SUMMARY

 


FINANCIAL SUMMARY


DEBT COLLECTIONS AND PAYMENTS

Profitability

NEGATIVE

Public Records

YES

Indebtedness

CONTROLLED

Payments

REGULAR

Cash

NORMAL

 

 




FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.69

UK Pound

1

Rs.70.87

Euro

1

Rs.62.26

 

 

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

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

----

NB

New Business

----

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.