Citi Trends Announces Second Quarter 2016 Results and Declares Quarterly Cash Dividend
Second quarter 2016 loss per share of $(0.01) compared with $0.01
income last year
First half 2016 income per share of $0.59 compared with $0.75 last
year
SAVANNAH, Ga.–(BUSINESS WIRE)–Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the second
quarter of fiscal 2016.
Financial Highlights – Second quarter ended
July 30, 2016
Total sales in the second quarter ended July 30, 2016 increased 0.9% to
$155.3 million compared with $153.9 million in the second quarter ended
August 1, 2015. Comparable store sales decreased 1.0% in the quarter.
Net loss was $(0.1) million, or $(0.01) per diluted share, in the second
quarter of 2016 compared with net income of $0.2 million, or $0.01 per
diluted share, in last year’s second quarter.
During the second quarter, the Company opened four new stores and
relocated or expanded two other stores.
Financial Highlights – First half ended July
30, 2016
Total sales in the first half of fiscal 2016 increased less than 0.1% to
$348.9 million compared with $348.8 million in the first half of fiscal
2015. Comparable store sales decreased 2.0% in the first half of this
year.
In the first half of fiscal 2016, net income was $8.6 million compared
with $11.4 million in last year’s first half. Earnings per diluted share
were $0.59 in the first half of 2016 compared with $0.75 in the first
half of 2015.
Quarterly Cash Dividend
The Company announced that its Board of Directors has declared a
quarterly cash dividend of $0.06 per common share, payable on September
13, 2016, to shareholders of record as of the close of business on
August 30, 2016.
Investor Conference Call and Webcast
Citi Trends will host a conference call today at 9:00 a.m. ET. The
number to call for the live interactive teleconference is
(212) 231-2934. A replay of the conference call will be available until
August 24, 2016, by dialing (402) 977-9140 and entering the passcode,
21812475.
The live broadcast of Citi Trends’ conference call will be available
online at the Company’s website, www.cititrends.com,
under the Investor Relations section, beginning today at 9:00 a.m. ET.
The online replay will follow shortly after the call and will be
available for replay for one year.
During the conference call, the Company may discuss and answer questions
concerning business and financial developments and trends that have
occurred after quarter-end. The Company’s responses to questions, as
well as other matters discussed during the conference call, may contain
or constitute information that has not been disclosed previously.
About Citi Trends
Citi Trends, Inc. is an off-price retailer of urban fashion apparel and
accessories for the entire family. The Company operates 530 stores
located in 31 states. Citi Trends’ website address is www.cititrends.com.
CTRN-G
Forward-Looking Statements
All statements other than historical facts contained in this news
release, including statements regarding our future financial results and
position, business policy and plans and objectives of management for
future operations, are forward-looking statements that are subject to
material risks and uncertainties. The words “believe,” “may,” “could,”
“plans,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and
similar expressions, as they relate to Citi Trends, are intended to
identify forward-looking statements. Statements with respect to
earnings guidance are forward-looking statements. Investors are
cautioned that any such forward-looking statements are subject to the
finalization of the Company’s quarterly financial and accounting
procedures, are not guarantees of future performance or results and are
inherently subject to risks and uncertainties, some of which cannot be
predicted or quantified. Actual results or developments may differ
materially from those included in the forward-looking statements as a
result of various factors which are discussed in Citi Trends, Inc.
filings with the Securities and Exchange Commission. These risks
and uncertainties include, but are not limited to, uncertainties
relating to economic conditions, growth risks, consumer spending
patterns, competition within the industry, competition in our markets
and the ability to anticipate and respond to fashion trends. Any
forward-looking statements by the Company, with respect to earnings
guidance, the declaration and payment of dividends, the repurchase of
the Company’s shares, or otherwise, are intended to speak only as of the
date such statements are made. Except as required by applicable
law, including the securities laws of the United States and the rules
and regulations of the Securities and Exchange Commission, Citi Trends
does not undertake to publicly update any forward-looking statements in
this news release or with respect to matters described herein, whether
as a result of any new information, future events or otherwise.
CITI TRENDS, INC. | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||||
(in thousands, except per share data) | |||||||||
Thirteen Weeks Ended |
Thirteen Weeks Ended |
||||||||
July 30, 2016 | August 1, 2015 | ||||||||
(unaudited) | (unaudited) | ||||||||
Net sales | $ | 155,276 | $ | 153,878 | |||||
Cost of sales (exclusive of depreciation shown separately below) | (95,150 | ) | (93,179 | ) | |||||
Selling, general and administrative expenses | (56,105 | ) | (55,703 | ) | |||||
Depreciation | (4,294 | ) | (4,620 | ) | |||||
(Loss) income from operations | (273 | ) | 376 | ||||||
Interest income | 135 | 59 | |||||||
Interest expense | (41 | ) | (47 | ) | |||||
(Loss) income before income tax benefit (expense) | (179 | ) | 388 | ||||||
Income tax benefit (expense) | 59 | (226 | ) | ||||||
Net (loss) income | $ | (120 | ) | $ | 162 | ||||
Basic net (loss) income per common share | $ | (0.01 | ) | $ | 0.01 | ||||
Diluted net (loss) income per common share | $ | (0.01 | ) | $ | 0.01 | ||||
Weighted average shares used to compute basic net (loss) income per share |
14,676 | 15,183 | |||||||
Weighted average shares used to compute diluted net (loss) income per share |
14,676 | 15,204 | |||||||
Twenty-Six Weeks Ended |
Twenty-Six Weeks Ended |
||||||||
July 30, 2016 | August 1, 2015 | ||||||||
(unaudited) | (unaudited) | ||||||||
Net sales | $ | 348,948 | $ | 348,791 | |||||
Cost of sales (exclusive of depreciation shown separately below) | (212,959 | ) | (210,688 | ) | |||||
Selling, general and administrative expenses | (114,436 | ) | (111,515 | ) | |||||
Depreciation | (8,738 | ) | (9,433 | ) | |||||
Asset impairment | (221 | ) | – | ||||||
Income from operations | 12,594 | 17,155 | |||||||
Interest income | 262 | 115 | |||||||
Interest expense | (81 | ) | (94 | ) | |||||
Income before income tax expense | 12,775 | 17,176 | |||||||
Income tax expense | (4,158 | ) | (5,735 | ) | |||||
Net income | $ | 8,617 | $ | 11,441 | |||||
Basic net income per common share | $ | 0.59 | $ | 0.76 | |||||
Diluted net income per common share | $ | 0.59 | $ | 0.75 | |||||
Weighted average shares used to compute basic net income per share | 14,635 | 15,139 | |||||||
Weighted average shares used to compute diluted net income per share | 14,640 | 15,193 | |||||||
CITI TRENDS, INC. | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||||
(in thousands) | |||||||||
July 30, 2016 | August 1, 2015 | ||||||||
(unaudited) | (unaudited) | ||||||||
Assets: | |||||||||
Cash and cash equivalents | $ | 39,606 | $ | 54,380 | |||||
Short-term investment securities | 37,345 | 24,778 | |||||||
Inventory | 132,093 | 126,346 | |||||||
Prepaid and other current assets (1) | 17,034 | 14,890 | |||||||
Property and equipment, net | 52,935 | 47,903 | |||||||
Long-term investment securities | 24,616 | 36,512 | |||||||
Other noncurrent assets (1) | 9,810 | 11,240 | |||||||
Total assets | $ | 313,439 | $ | 316,049 | |||||
Liabilities and Stockholders’ Equity: | |||||||||
Accounts payable | $ | 61,982 | $ | 59,391 | |||||
Accrued liabilities | 22,826 | 25,297 | |||||||
Other current liabilities | 1,742 | 2,128 | |||||||
Noncurrent liabilities | 7,413 | 6,040 | |||||||
Total liabilities | 93,963 | 92,856 | |||||||
Total stockholders’ equity | 219,476 | 223,193 | |||||||
Total liabilities and stockholders’ equity | $ | 313,439 | $ | 316,049 | |||||
(1) August 1, 2015 deferred tax asset balances reflect a |
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Contacts
Citi Trends, Inc.
Bruce Smith, 912-443-2075
Chief Operating
Officer and Chief Financial Officer
or
Jason Mazzola,
912-443-3990
President and Chief Executive Officer