Citi Trends Announces Third Quarter 2015 Results

Third quarter 2015 income per share of $0.04 compared with $(0.15)
loss last year

Comparable store sales decreased 0.5% in the quarter; up 1.7%
year-to-date

Income per share in this year’s third quarter includes $0.04
benefit from legal recovery;
Loss per share in last year’s
third quarter includes $(0.07) legal settlement expense

Year-to-date income per share of $0.79 compared with $0.29 last
year

SAVANNAH, Ga.–(BUSINESS WIRE)–Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the third
quarter of fiscal 2015.

Financial Highlights – Third quarter ended
October 31, 2015

Total sales in the third quarter ended October 31, 2015 increased 1.4%
to $158.9 million compared with $156.7 million in the third quarter
ended November 1, 2014. Comparable store sales decreased 0.5% in the
quarter.

Net income was $0.6 million, or $0.04 per diluted share, in the third
quarter of 2015 compared with a net loss of $(2.2) million, or $(0.15)
per diluted share, in last year’s third quarter. Selling, general and
administrative expenses in this year’s third quarter included a $0.9
million pretax benefit from a legal recovery, which had a positive
impact on income per diluted share of $0.04. Last year’s third quarter
included $1.7 million in pretax expense related to a legal settlement,
which had a negative impact on loss per diluted share of $(0.07).

Financial Highlights – First three quarters
ended October 31, 2015

Total sales in the first three quarters of fiscal 2015 increased 3.7% to
$507.7 million compared with $489.7 million in the same period of fiscal
2014. Comparable store sales increased 1.7% in the first three quarters
of this year. Net income was $12.1 million, or $0.79 per diluted share,
in the first three quarters of this year, compared with $4.3 million, or
$0.29 per diluted share, in last year’s first three quarters.

As previously announced, the Board of Directors has declared a quarterly
dividend payment of $0.06 per share, which will be paid on December 15,
2015 to stockholders of record as of December 1, 2015.

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) 231-2937. A replay of the conference call will be available until
December 1, 2015, by dialing (402) 977-9140 and entering the passcode,
21761235.

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 a value-priced retailer of urban fashion apparel
and accessories for the entire family. The Company operates 521 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 Company’s share
repurchase program, 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 STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
 
 
      Thirteen Weeks Ended     Thirteen Weeks Ended
October 31, 2015 November 1, 2014
(unaudited) (unaudited)
Net sales $ 158,937 $ 156,694
 
Cost of sales (exclusive of depreciation shown separately below) (97,565 ) (98,542 )
Selling, general and administrative expenses (55,616 ) (56,354 )
Depreciation   (4,589 )   (5,038 )
Income (loss) from operations 1,167 (3,240 )
Interest income 107 43
Interest expense   (107 )   (48 )
Income (loss) before income tax (expense) benefit 1,167 (3,245 )
Income tax (expense) benefit   (553 )   1,038  
Net income (loss) $ 614   $ (2,207 )
 
Basic net income (loss) per common share $ 0.04   $ (0.15 )
Diluted net income (loss) per common share $ 0.04   $ (0.15 )
 
 
Weighted average shares used to compute basic net income (loss) per
share
  15,056     14,982  
Weighted average shares used to compute diluted net income (loss)
per share
  15,115     14,982  
 
 
 
 
Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended
October 31, 2015 November 1, 2014
(unaudited) (unaudited)
Net sales $ 507,728 $ 489,697
 
Cost of sales (exclusive of depreciation shown separately below) (308,253 ) (304,849 )
Selling, general and administrative expenses (167,131 ) (163,526 )
Depreciation (14,022 ) (15,306 )
Asset impairment       (83 )
Income from operations 18,322 5,933
Interest income 222 135
Interest expense   (201 )   (152 )
Income before income tax expense 18,343 5,916
Income tax expense   (6,288 )   (1,623 )
Net income $ 12,055   $ 4,293  
 
Basic net income per common share $ 0.80   $ 0.29  
Diluted net income per common share $ 0.79   $ 0.29  
 
 
Weighted average shares used to compute basic net income per share   15,112     14,952  
Weighted average shares used to compute diluted net income per share   15,167     14,985  
 
 
 
 
 
 
CITI TRENDS, INC.
CONDENSED BALANCE SHEETS (unaudited)
(in thousands)
 
October 31, 2015 November 1, 2014
(unaudited) (unaudited)
Assets:
Cash and cash equivalents $ 41,585 $ 65,991
Short-term investment securities 34,142 13,988
Inventory 129,433 128,516
Prepaid and other current assets 18,249 18,658
Property and equipment, net 49,978 49,756
Long-term investment securities 30,582 24,038
Other noncurrent assets   8,960     7,005  
Total assets $ 312,929   $ 307,952  
 
Liabilities and Stockholders’ Equity:
Accounts payable $ 58,210 $ 63,478
Accrued liabilities 29,759 30,847
Other current liabilities 2,284 2,359
Noncurrent liabilities   6,225     6,247  
Total liabilities 96,478 102,931
 
Total stockholders’ equity   216,451     205,021  
Total liabilities and stockholders’ equity $ 312,929   $ 307,952  
 
 
 
 

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