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
