Warehouse lines of credit by the MBSD Group

"Dividend elimination signals a potential cash-flow crunch," said Lehman Brothers analyst Alan Rifkin in a research note. "We believe that Pier 1 Imports' dividend was one of the few positive signals of stability, given Pier 1's deteriorating performance over the past four years." By warehouse lines of credit Pier 1's thinking, however, taking out the dividend leaves more money to shore up its finances for a quicker turnaround. With the strategy struggling, the company is also finding itself inching closer to a cash crisis that has some observers now seeing little promise of a rebound in the foreseeable future.

But what Girouard didn't say was disclosed in the latest quarterly filing with the Securities and Exchange Commission. Marvin Girouard, the chief executive and 32-year Pier 1 veteran (who said over the weekend that he will take retirement at the end of the fiscal year in February), insisted in a statement Tuesday that Pier 1's "cash on hand, available lines of credit and proceeds from the sale of the credit-card business will be sufficient to meet our expected cash requirements over the next fiscal year." Much of the money the company is using to stock merchandise, make payroll and cover lease expenses is coming from available lines of credit and the $155 million in net cash proceeds from the sale of its proprietary credit-card division, while warehouse lines burns through what little cash it has left. Pier 1 Imports did not return a phone call seeking comment. That's because it's not generating any cash from the couches and candles that it sells. Pier 1's annual dividend growth rate of 23.36% comes amid a meager 4.7% revenue growth rate and an earnings growth rate of zero -- resulting in an average 0% yield over the same period, according to the company.

Warehouse lines of credit links

Warehouse lines
Warehouse lenders
Warehouse line workout
Warehousing
Warehouse lines of credit
Warehouse lines

Contact the MBSD Group today for all your warehouse banking needs.