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<SEC-DOCUMENT>0001206774-06-000457.txt : 20060316
<SEC-HEADER>0001206774-06-000457.hdr.sgml : 20060316
<ACCEPTANCE-DATETIME>20060316124234
ACCESSION NUMBER:		0001206774-06-000457
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060316
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060316
DATE AS OF CHANGE:		20060316

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SHOE CARNIVAL INC
		CENTRAL INDEX KEY:			0000895447
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-SHOE STORES [5661]
		IRS NUMBER:				351736614
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21360
		FILM NUMBER:		06690821

	BUSINESS ADDRESS:	
		STREET 1:		8233 BAUMGART ROAD
		CITY:			EVANSVILLE
		STATE:			IN
		ZIP:			47725
		BUSINESS PHONE:		8128674039

	MAIL ADDRESS:	
		STREET 1:		8233 BAUMGART RD
		CITY:			EVANSVILLE
		STATE:			IN
		ZIP:			47725
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>sc101266.htm
<DESCRIPTION>FORM 8-K
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<p  align="center"><font size="5" face="Times New Roman"><b>UNITED STATES</b></font><br>
<font size="5"><b>SECURITIES AND EXCHANGE COMMISSION</b></font><br>
<font size="3"><b>Washington, D.C. 20549</b></font></p>
<p  align="center">
<font size="5" face="Times New Roman"><b>FORM 8-K</b></font></p>
<p  align="center">
<font size="3" face="Times New Roman"><b>CURRENT REPORT<br> PURSUANT TO SECTION 13 OR 15(d) OF THE<br> SECURITIES EXCHANGE ACT OF 1934</b></font></p>
<p  align="center">
<font size="2" face="Times New Roman"><b>Date of Report (Date of earliest event reported) &nbsp;&nbsp;&nbsp;March 16, 2006</b></font></p>
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<font size="6" face="Times New Roman"><b>SHOE   CARNIVAL, INC.</b></font></p>  </td>
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<font size="1" face="Times New Roman"><b>(Exact   name of registrant as specified in its charter)</b></font></p>  </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td width="35%" valign="top">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td width="5%" valign="top">
  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="2" face="Times New Roman"><b>Indiana</b></font></p>  </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="2" face="Times New Roman"><b>0-21360</b></font></p>  </td>
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  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="2" face="Times New Roman"><b>35-1736614</b></font></p>  </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em"><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman"><b>(State or   other jurisdiction <br>   of incorporation)</b></font></p>  </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="1" face="Times New Roman"><b>(Commission   <br>   File&#160; Number)</b></font></p>  </td>
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  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="1" face="Times New Roman"><b>(IRS   Employer <br>   Identification No.)</b></font></p>  </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman"><b>8233 Baumgart Road, Evansville, IN </b></font></p>  </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="2" face="Times New Roman"><b>47725</b></font></p>  </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman"><b>(Address   of principal executive offices)</b></font></p>  </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="1" face="Times New Roman"><b>(Zip Code)</b></font></p>  </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman"><b>Registrant&#146;s telephone   number, including area code&nbsp;&nbsp;&nbsp;(812) 867-6471</b></font></p>  </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="2" face="Times New Roman"><b>Not Applicable</b></font></p>  </td>
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<font size="1" face="Times New Roman"><b>(Former   name or former address if changed since last report)</b></font></p>  </td>
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<p>
<font size="2" face="Times New Roman">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<i>see </i>General Instruction A.2. below):</font></p>
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<font size="2" face="Wingdings">o</font></p>  </td>
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<font size="2" face="Times New Roman">Written communications pursuant to Rule 425 under   the Securities Act (17 CFR 230.425)</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Wingdings">o</font></p>  </td>
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<font size="2" face="Times New Roman">Soliciting material pursuant to Rule 14a-12 under   the Exchange Act (17 CFR 240.14a-12)</font></p>  </td>
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  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Wingdings">o</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman">Pre-commencement communications pursuant to Rule   14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Wingdings">o</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman">Pre-commencement communications pursuant to Rule   13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  </td>
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<div style="page-break-before:always"></div>
<PAGE>
<br>

<p>
<font size="2" face="Times New Roman"><b>Section 2--Financial Information</b></font></p>
<p>
<font size="2" face="Times New Roman"><b>Item 2.02&nbsp;&nbsp;Results of Operations and Financial Condition.</b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March 16, 2006, Shoe Carnival, Inc. (the &#147;Company&#148;) issued a press release announcing its operating and financial results for its fiscal year and fourth quarter ended January 28, 2006.&#160; A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.</font></p>
<p>
<font size="2" face="Times New Roman"><b>Section 9--Financial Statements and Exhibits</b></font></p>
<p>
<font size="2" face="Times New Roman"><b>Item 9.01&nbsp;&nbsp;Financial Statements and Exhibits.</b></font></p>
<p>
<font size="2" face="Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits:</font></p>

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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman"><b>Exhibit No.</b></font></p>  </td>
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  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="1" face="Times New Roman"><b>Exhibits</b></font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">99.1</font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman">Earnings Release&nbsp;&#150;&nbsp;Fiscal year and Quarter   Ended January 28, 2006.</font></p>  </td>
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<p  align="center">
<font size="2" face="Times New Roman">2</font></p>

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<PAGE>
<br>

<p  align="center">
<font size="2" face="Times New Roman"><b>SIGNATURES</b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>
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  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman">SHOE CARNIVAL, INC.</font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman">(Registrant)</font></p>  </td>
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  <td width="60%" valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="5%" valign="bottom">
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman">Dated:&nbsp;&nbsp;March 16, 2006</font></p>  </td>
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<font size="2" face="Times New Roman">By:</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman">/s/ W. Kerry Jackson</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <hr size="1" width="100%" noshade color=black>

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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman">W. Kerry Jackson</font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman">Executive Vice President and Chief Financial Officer</font></p>  </td>
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<p  align="center"><font size="2" face="Times New Roman">3</font></p>



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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>sc101266ex991.htm
<DESCRIPTION>EXHIBIT 99.1
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  <p>
<font size="2" face="Times New Roman"><b>8233 Baumgart Road</b></font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><b>Contact   Mark L. Lemond</b></font></p>  </td>
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  <p>
<font size="2" face="Times New Roman"><b>Evansville, Indiana 47725</b></font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p  align=right>
<font size="2" face="Times New Roman"><b>President   and Chief Executive Officer</b></font></p>  </td>
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  <p>
<font size="2" face="Times New Roman"><b>www.shoecarnival.com</b></font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><b>or W.   Kerry Jackson</b></font></p>  </td>
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  <p>
<font size="2" face="Times New Roman"><b>(812) 867-4034</b></font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p  align=right>
<font size="2" face="Times New Roman"><b>Executive   Vice President, Chief Financial Officer</b></font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p  align=right>
<font size="2" face="Times New Roman"><b>and   Treasurer</b></font></p>  </td>
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  <p>
<font size="2" face="Times New Roman"><b><i>FOR IMMEDIATE RELEASE</i></b></font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  colspan="3"  valign="top">
  <hr size="1" width="100%" noshade color=black>


  </td>
 </tr>
</table>

<p  align="center">
<font size="2" face="Times New Roman"><b>SHOE CARNIVAL REPORTS FOURTH QUARTER AND FULL YEAR 2005 RESULTS;<br> ACHIEVES RECORD EARNINGS FOR FOURTH QUARTER AND YEAR</b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Evansville, Indiana, March 16, 2006 - Shoe Carnival, Inc. (Nasdaq: SCVL) a leading retailer of value-priced footwear and accessories, today announced sales and earnings for the fourth quarter and fiscal year ended January 28, 2006.&#160; </font></p>
<p>
<font size="2" face="Times New Roman"><b>Fourth Quarter Results</b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net earnings for the 13-week fourth quarter increased 154 percent to $3.0 million from net earnings of $1.2 million in the fourth quarter last year.&#160; Diluted earnings per share increased to $0.22 per share from $0.09 per share last year.</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net sales for the fourth quarter increased 13.7 percent to $163.6 million from $143.9 million last year.&#160; Comparable store sales increased 11.7 percent for the 13-week period.</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The gross profit margin for the fourth quarter of fiscal 2005 increased to 28.6 percent from 27.3 percent in the fourth quarter of fiscal 2004.&#160; Selling, general and administrative expenses for the fourth quarter, as a percentage of sales, decreased to 25.6 percent from 26.1 percent in last year&#146;s fourth quarter.&#160; Included in the fourth quarter selling, general and administrative expenses is a charge of $821,000 for store closing costs related to fiscal 2005 store closings and impairment charges for three stores expected to be closed in fiscal 2006.&#160; In the fourth quarter of fiscal 2004, we incurred $114,000 in store closing costs.</font></p>

<p><font size="2" face="Times New Roman"><b>Fiscal 2005 Results</b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net earnings for the 52-week 2005 fiscal year increased 50 percent to $18.8 million, or $1.40 per diluted share, from $12.5 million, or $0.96 per diluted share, for the 2004 fiscal year.</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the 52-week 2005 fiscal year, net sales increased 11.1 percent to $655.6 million from sales of $590.2 million for fiscal 2004.&#160; Comparable store sales increased 6.9 percent for the 52-week period.</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commenting on the results, Mark Lemond, president and chief executive officer said, &#147;The comparable store sales increase in the fourth quarter was the highest quarterly sales increase in the Company&#146;s history.&#160; Our customers&#146; response to our better fashion assortment resulted in double-digit comparable store sales increases for both our women&#146;s and men&#146;s non-athletic footwear.&#160; In turn, these record sales led to a record-breaking earnings performance in the fourth quarter.&#160; Our diluted earnings per share for the quarter increased over 140 percent compared to the fourth quarter of fiscal 2004.&#148;</font></p>

<div style="page-break-before:always"></div>
<PAGE>
<br>

<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;The fourth quarter was just one part of a record-breaking year.&#160; Fiscal 2005 ended with a comparable store sales increase at 6.9 percent, the best annual performance in our history.&#160; As was the case for the fourth quarter, each of our product categories had comparable store sales increases for the full year, with women&#146;s non-athletic and men&#146;s non-athletic achieving solid double-digit increases.&#160; Our annual earnings were record breaking as well.&#160; For fiscal 2005, our diluted earnings per share were $1.40, a 46 percent increase from $0.96 for fiscal 2004.&#148;</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;The footwear industry is positioned for a solid performance in fiscal 2006.&#160; We feel we can capitalize on the positive retail environment and build upon our momentum from the second half of fiscal 2005 by continuing to attract customers with our broad selection of today&#146;s fashions at value prices.&#148;</font></p>

<p><font size="2" face="Times New Roman"><b>Store Growth</b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company opened 15 new stores in fiscal 2005 and closed seven to end the year with 263 stores.&#160; Total gross retail selling square footage increased 2.6 percent to end the year at 3.0 million square feet.</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect to open 13 to 15 new stores, and close five, in fiscal 2006.</font></p>
<p>
<font size="2" face="Times New Roman"><b>2006 EPS Outlook</b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnings per diluted share in the first quarter of fiscal 2006 are expected to range from $0.52 to $0.54.&#160; This assumes a total sales increase of between 5 and 6 percent and comparable store sales of between 4 and 5 percent.&#160; Earnings per diluted share for the first quarter of fiscal 2005 were $0.45.</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the full year of fiscal 2006, earnings per diluted share are expected to range from $1.65 to $1.75. </font></p>
<p>
<font size="2" face="Times New Roman"><b>Conference Call</b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Today, at 2:00 p.m. Eastern time, the Company will host a conference call to discuss the fourth quarter and annual results.&#160; The public can listen to the live webcast of the call by visiting Shoe Carnival&#146;s Investor Relations page at www.shoecarnival.com.&#160; While the question-and-answer session will be available to all listeners, questions from the audience will be limited to institutional analysts and investors.&#160; A replay of the webcast will be available on our website beginning approximately two hours after the conclusion of the conference call and will be archived for one year.</font></p>

<div style="page-break-before:always"></div>
<PAGE>
<br>

<p>
<font size="2" face="Times New Roman"><b>Record Date and Date of Annual Shareholder Meeting </b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company also announced that June 12, 2006 has been set as the date for the Annual Meeting of Shareholders and April 21, 2006 was set as the shareholder record date.</font></p>

<p><font size="2" face="Times New Roman"><b>Cautionary Statement Regarding Forward-Looking Information</b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This press release contains forward-looking statements that involve a number of risks and uncertainties.&#160; A number of factors could cause our actual results, performance, achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.&#160; These factors include, but are not limited to: general economic conditions in the areas of the United States in which our stores are located; changes in the overall retail environment and more specifically in the apparel and footwear retail sectors; the potential impact of national and international security concerns on the retail environment; changes in our relationships with key suppliers; the impact of competition and pricing; changes in weather patterns, consumer buying trends and our ability to identify and respond to emerging fashion trends; the impact of
hurricanes on our stores, as well as on consumer confidence and purchasing in general; risks associated with the seasonality of the retail industry; the availability of desirable store locations at acceptable lease terms and our ability to open new stores in a timely and profitable manner; higher than anticipated costs associated with the closing of underperforming stores; the inability of manufacturers to deliver products in a timely manner; changes in the political and economic environments in the People&#146;s Republic of China, a major manufacturer of footwear; and the continued favorable trade relations between the United States and China and other countries which are the major manufacturers of footwear.</font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties and other factors.&#160; Accordingly, any forward-looking statements included in this press release do not purport to be predictions of future events or circumstances and may not be realized.&#160; Forward-looking statements can be identified by, among other things, the use of forward-looking terms such as &#147;believes,&#148; &#147;expects,&#148; &#147;may,&#148; &#147;will,&#148; &#147;should,&#148; &#147;seeks,&#148; &#147;pro forma,&#148; &#147;anticipates,&#148; &#147;intends&#148; or the negative of any of these terms, or comparable terminology, or by discussions of strategy or intentions.&#160; Given these uncertainties, we caution investors not to place undue reliance on these forward-looking statements, which speak only
as of the date hereof.&#160; We disclaim any obligation to update any of these factors or to publicly announce any revisions to the forward-looking statements contained in this press release to reflect future events or developments.</font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shoe Carnival is a chain of 263 footwear stores located in the Midwest, South and Southeast.&#160; Combining value pricing with an entertaining store format, Shoe Carnival is a leading retailer of name brand and private label footwear for the entire family.&#160; Headquartered in Evansville, IN, Shoe Carnival trades on the Nasdaq Stock Market under the symbol SCVL.&#160; Shoe Carnival&#146;s press releases and annual report are available on the Company&#146;s website at www.shoecarnival.com.</font></p>
<p  align="center">
<font size="2" face="Times New Roman">Financial Tables Follow</font></p>

<div style="page-break-before:always"></div>
<PAGE>
<br>

<p  align="center">
<font size="2" face="Times New Roman"><b>SHOE CARNIVAL, INC.<br> CONDENSED CONSOLIDATED STATEMENTS OF INCOME</b><br> (In thousands, except per share)<br> (Unaudited)</font></p>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  colspan="2" valign="bottom"><p  align="center"> <font size="1" face="Times New Roman"><b>Thirteen<br>
        Weeks Ended<br>
        January 28,<br>
        2006</b></font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  colspan="2" valign="bottom"><p  align="center"> <font size="1" face="Times New Roman"><b>Thirteen<br>
        Weeks Ended<br>
        January 29,<br>
        2005</b></font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  colspan="2" valign="bottom"><p  align="center"> <font size="1" face="Times New Roman"><b>Fifty-two<br>
        Weeks Ended<br>
        January 28,<br>
        2006</b></font></p></td>
    <td  valign="bottom"><p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  colspan="2" valign="bottom"><p  align="center"> <font size="1" face="Times New Roman"><b>Fifty-two<br>
        Weeks Ended<br>
        January 29,<br>
        2005</b></font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"><font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  colspan="2" valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  colspan="2" valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  colspan="2" valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  colspan="2" valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td width="54%" valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Net sales</font></p></td>
    <td width="2%" valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td width="1%" valign="bottom" ><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td width="8%" valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">163,570</font></p></td>
    <td width="2%" valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td width="1%" valign="bottom" ><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td width="8%" valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">143,878</font></p></td>
    <td width="2%" valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td width="1%" valign="bottom" ><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td width="8%" valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">655,638</font></p></td>
    <td width="2%" valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td width="1%" valign="bottom" ><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td width="8%" valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">590,186</font></p></td>
    <td width="1%" valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Cost of sales (including buying, distribution and occupancy costs)</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">116,853</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">104,567</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">465,942</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">422,961</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Gross profit</font></p></td>
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">46,717</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">39,311</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">189,696</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">167,225</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Selling, general and administrative expenses</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">41,836</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">37,549</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">158,860</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">146,360</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"><font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Operating income</font></p></td>
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">4,881</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">1,762</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">30,836</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">20,865</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Interest (income) expense-net</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">(7</font></p></td>
    <td  valign="bottom"><p> <font size="2" face="Times New Roman">)</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">150</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">354</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">658</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Income before income taxes</font></p></td>
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">4,888</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">1,612</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">30,482</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">20,207</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Income tax expense</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">1,873</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">426</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">11,692</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">7,678</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"><font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Net income</font></p></td>
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">3,015</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">1,186</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">18,790</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">12,529</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"><font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Net income per share:</font></p></td>
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Basic</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">.23</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">.09</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">1.43</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">.98</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p  style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Diluted</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">.22</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">.09</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">1.40</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">.96</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Average shares outstanding:</font></p></td>
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Basic</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">13,246</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">12,842</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">13,128</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">12,820</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p><font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p  style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Diluted</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">13,586</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">13,038</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">13,457</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">13,051</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p><font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
</table>
<div style="page-break-before:always"></div>
<PAGE>
<br>

<p  align="center"><font size="2" face="Times New Roman"><b>SHOE CARNIVAL, INC.<br> CONDENSED CONSOLIDATED BALANCE SHEETS</b><br> (In thousands)<br> (Unaudited)</font></p>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">

 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  colspan="2" valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>January   28,<br>   2006</b></font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  colspan="2" valign="bottom">
  <p  align="center">
<font size="1" face="Times New Roman"><b>January   29,<br>   2005</b></font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  colspan="2" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  colspan="2" valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#cceeff">
  <td width="76%" valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman"><b>ASSETS</b></font></p>  </td>
  <td width="2%" valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="1%" valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="8%" valign="bottom">
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td width="2%" valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="1%" valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="8%" valign="bottom">
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td width="1%" valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Current Assets:</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#cceeff">
  <td  valign="bottom">
  <p  style="margin-left:3em; text-indent:-1em">
<font size="2" face="Times New Roman">Cash and cash   equivalents</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">20,304</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">4,889</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p  style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Accounts receivable</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">286</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">992</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#cceeff">
  <td  valign="bottom">
  <p  style="margin-left:3em; text-indent:-1em">
<font size="2" face="Times New Roman">Merchandise inventories</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">183,993</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">180,590</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p  style="margin-left:3em; text-indent:-1em">
<font size="2" face="Times New Roman">Deferred income tax   benefit</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">1,075</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">0</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#cceeff">
  <td  valign="bottom">
  <p  style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Other</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">2,327</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">1,982</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p  style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#cceeff">
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Total Current Assets</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">207,985</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">188,453</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Property and equipment-net</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">66,848</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">68,452</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#cceeff">
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Total Assets</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">274,833</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">256,905</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <hr size="3" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <hr size="3" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <hr size="3" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <hr size="3" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#cceeff">
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman"><b>LIABILITIES AND SHAREHOLDERS&#146;   EQUITY</b></font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Current Liabilities:</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#cceeff">
  <td  valign="bottom">
  <p  style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Accounts payable</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">64,756</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">62,291</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p  style="margin-left:3em; text-indent:-1em">
<font size="2" face="Times New Roman">Accrued and other   liabilities</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">11,451</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">10,198</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#cceeff">
  <td  valign="bottom">
  <p  style="margin-left:3em; text-indent:-1em">
<font size="2" face="Times New Roman">Deferred income taxes</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">0</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">413</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p  style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Current portion of   long-term debt</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">0</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">56</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p  style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#cceeff">
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Total Current Liabilities</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">76,207</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">72,958</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Long-term debt</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">0</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">7,300</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#cceeff">
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Deferred lease incentives</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">6,399</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">6,613</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Accrued rent</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">6,658</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">6,977</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#cceeff">
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Deferred income taxes</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">2,151</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">4,487</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Other</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">2,263</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">1,651</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#cceeff">
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Total Liabilities</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">93,678</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">99,986</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman">Total Shareholders&#146; Equity</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">181,155</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">156,919</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <hr size="1" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr bgcolor="#cceeff">
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Total Liabilities and Shareholders&#146; Equity</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">274,833</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="2" face="Times New Roman">$</font></p>  </td>
  <td  valign="bottom">
  <p  align=right>
<font size="2" face="Times New Roman">256,905</font></p>  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <p style="margin-left:1em; text-indent:-1em">
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <hr size="3" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <hr size="3" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="bottom">
  <hr size="3" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <hr size="3" width="100%" noshade color=black>


  </td>
  <td  valign="bottom">
  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
</table>


<div style="page-break-before:always"></div>
<PAGE>
<br>

<p  align="center">
<font size="2" face="Times New Roman"><b>SHOE CARNIVAL, INC.<br> CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<br> </b>(In thousands)<br> (Unaudited)</font></p>
<table align="center"  border="0" style="border-collapse:collapse" cellspacing="0"  cellpadding="0"  width="100%">
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p><font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  colspan="2" valign="bottom"><p  align="center"> <font size="1" face="Times New Roman"><b>Fifty-two<br>
        Weeks Ended<br>
        January 28,<br>
        2006</b></font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  colspan="2" valign="bottom"><p  align="center"> <font size="1" face="Times New Roman"><b>Fifty-two<br>
        Weeks Ended<br>
        January 29,<br>
        2005</b></font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  colspan="2" valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  colspan="2" valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td width="73%" valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Cash flows from operating activities</font></p></td>
    <td width="2%" valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td width="1%" valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td width="9%" valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td width="2%" valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td width="1%" valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td width="9%" valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td width="1%" valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Net income</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">18,790</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">12,529</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p  style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Adjustments to reconcile net income to net cash provided by operating activities:</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:4em; text-indent:-1em"> <font size="2" face="Times New Roman">Depreciation and amortization</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">14,766</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">14,428</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p  style="margin-left:4em; text-indent:-1em"> <font size="2" face="Times New Roman">Stock option income tax benefit</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">1,222</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">730</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:4em; text-indent:-1em"><font size="2" face="Times New Roman">Loss on retirement and impairment of assets</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">1,210</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">564</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p  style="margin-left:4em; text-indent:-1em"> <font size="2" face="Times New Roman">Deferred income taxes</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">(3,824</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">)</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">304</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:4em; text-indent:-1em"> <font size="2" face="Times New Roman">Lease incentives</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">874</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">719</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p  style="margin-left:4em; text-indent:-1em"><font size="2" face="Times New Roman">Other</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">(180</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">)</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">(88</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">)</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:4em; text-indent:-1em"> <font size="2" face="Times New Roman">Changes in operating assets and liabilities:</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p  style="margin-left:5em; text-indent:-1em"> <font size="2" face="Times New Roman">Accounts receivable</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">553</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">(446</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">)</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:5em; text-indent:-1em"><font size="2" face="Times New Roman">Merchandise inventories</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">(3,403</font></p></td>
    <td  valign="bottom"><p> <font size="2" face="Times New Roman">)</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">(15,480</font></p></td>
    <td  valign="bottom"><p> <font size="2" face="Times New Roman">)</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p  style="margin-left:5em; text-indent:-1em"> <font size="2" face="Times New Roman">Accounts payable and accrued liabilities</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">4,023</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">11,101</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:5em; text-indent:-1em"> <font size="2" face="Times New Roman">Other</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">(346</font></p></td>
    <td  valign="bottom"><p> <font size="2" face="Times New Roman">)</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">4,771</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p><font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Net cash provided by operating activities</font></p></td>
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">33,685</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">29,132</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Cash flows from investing activities</font></p></td>
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Purchases of property and equipment</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">(14,747</font></p></td>
    <td  valign="bottom"><p> <font size="2" face="Times New Roman">)</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">(14,213</font></p></td>
    <td  valign="bottom"><p> <font size="2" face="Times New Roman">)</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p  style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Other</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">223</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">59</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p><font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Net cash used in investing activities</font></p></td>
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">(14,524</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">)</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">(14,154</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">)</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Cash flows from financing activities</font></p></td>
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Borrowings under line of credit</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">234,825</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">367,405</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p  style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Payments on line of credit</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">(242,125</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">)</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">(382,005</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">)</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"><font size="2" face="Times New Roman">Payments on long-term debt</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">(56</font></p></td>
    <td  valign="bottom"><p> <font size="2" face="Times New Roman">)</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">(222</font></p></td>
    <td  valign="bottom"><p> <font size="2" face="Times New Roman">)</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p  style="margin-left:3em; text-indent:-1em"> <font size="2" face="Times New Roman">Proceeds from issuance of stock</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">3,610</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">662</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p  style="margin-left:3em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Net cash used in financing activities</font></p></td>
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">(3,746</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">)</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">(14,160</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">)</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Net increase in cash and cash equivalents</font></p></td>
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">15,415</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">818</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"><font size="2" face="Times New Roman">Cash and cash equivalents at beginning of year</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">4,889</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p  align=right> <font size="2" face="Times New Roman">4,071</font></p></td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="1" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr bgcolor="#cceeff">
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="2" face="Times New Roman">Cash and Cash Equivalents at End of Year</font></p></td>
    <td  valign="bottom" ><p style="margin-left:1em; text-indent:-1em"> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">20,304</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom" ><p> <font size="2" face="Times New Roman">$</font></p></td>
    <td  valign="bottom" ><p  align=right> <font size="2" face="Times New Roman">4,889</font></p></td>
    <td  valign="bottom" ><p> <font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
  <tr>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"><font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><p style="margin-left:1em; text-indent:-1em"><font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p><font size="1" face="Times New Roman">&nbsp;</font></p></td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><hr size="3" width="100%" noshade color=black>
    </td>
    <td  valign="bottom"><p><font size="1" face="Times New Roman">&nbsp;</font></p></td>
  </tr>
</table>
<p><font size=1 face="Times New Roman">&nbsp;</font></p>



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