SAVANNAH, Ga., Nov. 21 /PRNewswire-FirstCall/ -- Citi Trends, Inc.
(NASDAQ:CTRN) today reported results for the 13-week and 39-week
periods ended October 29, 2005. Financial Highlights - 13 weeks
ended October 29, 2005 Total net sales increased 51.8% to $69.9
million compared with $46.0 million for the 13-week period ended
October 30, 2004. Comparable store sales increased 25.0% compared
with a 3.0% increase in the prior-year quarter. Relocated and
expanded stores are included in the comparable store sales results.
Net income increased to $2.6 million compared with $165,000 for the
prior-year quarter. Earnings per diluted share increased to $0.18
compared with $0.02 in the prior-year quarter. As discussed in the
previous press release relating to October sales, the Company's
results were net positively impacted by Hurricanes Katrina, Rita
and Wilma. Sales and earnings results for September and October for
stores in the impacted areas were substantially higher than the
remainder of the stores. Four stores remain closed as a result of
the hurricanes. Sales in the non- affected comparable stores
increased approximately 17% to 19% for the third fiscal quarter,
compared to the overall comparable store sales increase of 25%.
Financial Highlights - 39 weeks ended October 29, 2005 Total net
sales increased 40.7% to $193.0 million compared with $137.1
million for the 39-week period ended October 30, 2004. Comparable
store sales increased 14.1% compared with a 2.1% increase in the
prior-year period. Net income increased 166% to $6.3 million
compared with $2.4 million for the prior-year period. Earnings per
diluted share increased 123% to $0.49 compared with $0.22 in the
prior-year period. Included in these net income results is a
one-time termination fee paid in connection with the Company's
initial public offering, incurred in the second quarter of fiscal
2005, of $1.2 million, or $0.06 per diluted share. For the
year-to-date period, the Company opened 26 stores, reaching a total
store count of 226 (including the four stores currently closed due
to the hurricanes). In the fourth quarter, the Company plans to
open an additional 11 stores bringing the store count to 237. The
Company expects to re-open by year end from none to two of the four
stores currently closed, bringing the stores in operation at year
end to 233 to 235. Fiscal 2005 Outlook Based upon results in the
third fiscal quarter and the current expectations for the fourth
fiscal quarter, the Company now expects to report earnings
(excluding the one-time termination fee paid in connection with the
Company's initial public offering of $1.2 million, or $0.06 per
diluted share) for fiscal 2005 of between $1.00 to $1.03 per
diluted share. This estimate is based upon fiscal 2005 comparable
store sales of between 10% and 13%, 13.3 million diluted shares
outstanding and the opening of 37 new stores during the year.
Fiscal 2006 Outlook The Company estimates fiscal 2006 earnings of
between $1.12 and $1.17 per diluted share. This estimate is based
upon a fiscal 2006 comparable store sales increase of between 2%
and 3%, 14.5 million diluted shares outstanding, and the opening of
42 to 45 new stores with 2 projected closings. The new store
openings in fiscal 2006 are expected to increase selling square
footage by approximately 20%. Total sales and net income are
expected to increase 20- 23% for the year. Due to the exceptional
sales and earnings results in the second and third quarters of
fiscal 2005, comparisons in 2006 against these results will be
difficult. The above estimates for 2006 do not include stock option
compensation expense which will be required under FAS 123R. The
Company's current estimate for 2006 stock option compensation
expense is approximately $1.0 million to $1.5 million, or
approximately $0.04 to $0.07 per diluted share. The Company reminds
investors of the complexity of accurately assessing future growth
given the difficulty in predicting fashion trends, consumer
preferences and general economic conditions and the impact of other
business variables. Investor Conference Call and Webcast Citi
Trends will host a conference call on November 21, 2005, at 5:00
p.m. EST. The number to call for the live interactive
teleconference is (913) 981-5510. A replay of the conference call
will be available until November 28, 2005, by dialing (719)
457-0820 and entering the passcode, 4373471. The live broadcast of
Citi Trends' quarterly conference call will be available online at
the Company's website, http://www.cititrends.com/, as well as
http://ir.cititrends.com/medialist.cfm on November 21, 2005,
beginning at 5:00 p.m. EST. The online replay will follow shortly
after the call and continue through December 5, 2005. About Citi
Trends Citi Trends, Inc. is a value-priced retailer of urban
fashion apparel and accessories for the entire family. The Company
currently operates 226 stores (including the four stores currently
closed due to the hurricanes) located in 12 states in the South,
Southeast and Mid-Atlantic regions, and our website address is
http://www.cititrends.com/. CTRN-E Forward-Looking Statements All
statements other than historical facts contained in this news
release, including statements regarding our future financial
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," "estimate," "continue," "anticipate," "intend,"
"expect" and similar expressions, as they relate to Citi Trends,
are intended to identify forward-looking statements. Investors are
cautioned that any such forward-looking statements are not
guarantees of future performance or results and are inherently
subject to risks and uncertainties, some of which cannot be
predicted or quantified, and that actual results or developments
may differ materially from those 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 and expansion
risks, consumer spending patterns, competition within the industry,
competition in our markets and the ability to anticipate and
respond to fashion trends. 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 STATEMENT OF
INCOME (unaudited) (in $000's, except share and per share data)
Thirteen Weeks Ended ------------------------------- Oct. 29, 2005
Oct. 30, 2004 ------------- ------------- (unaudited) (unaudited)
Net sales $69,895 $46,049 Gross profit 27,022 16,890 Selling,
general and administrative expenses 23,252 16,413 Income from
operations 3,770 477 Net income $2,632 $165 Net income per share,
basic $0.21 $0.02 Net income per share, diluted $0.18 $0.02
Weighted average shares used to compute net income per share, basic
12,825,199 9,300,200 Weighted average shares used to compute net
income per share, diluted 14,379,974 10,967,346 CITI TRENDS INC.
CONDENSED STATEMENT OF INCOME (unaudited) (in $000's, except share
and per share data) Thirty-nine Weeks Ended
------------------------------- Oct. 29, 2005 Oct. 30, 2004
------------- ------------- (unaudited) (unaudited) Net sales
$192,961 $137,129 Gross profit 73,922 50,841 Selling, general and
administrative expenses 64,281 46,440 Income from operations 9,641
4,401 Net income $6,278 $2,364 Net income per share, basic $0.55
$0.25 Net income per share, diluted $0.49 $0.22 Weighted average
shares used to compute net income per share, basic 11,348,502
9,305,400 Weighted average shares used to compute net income per
share, diluted 12,847,419 10,945,038 CITI TRENDS, INC. CONDENSED
BALANCE SHEETS (in $000's) Oct. 29, 2005 Oct. 30, 2004
------------- ------------- (unaudited) (unaudited) Assets Cash and
cash equivalents $9,371 $2,156 Marketable securities 32,581 --
Inventory 53,978 40,331 Other assets 7,651 5,259 Property and
equipment, net 21,797 16,079 ------------- ------------- Total
assets $125,378 $63,825 ============= ============= Liabilities and
Stockholders' Equity Borrowings under line of credit $-- $5,388
Accounts payable and accrued liabilities 45,504 29,511 Other
liabilities 7,081 10,067 Total stockholders' equity 72,793 18,859
------------- ------------- Total liabilities and stockholders'
equity $125,378 $63,825 ============= ============= DATASOURCE:
Citi Trends, Inc. CONTACT: Tom Stoltz, Chief Financial Officer,
+1-912-443-2075, or Ed Anderson, Chief Executive Officer,
+1-912-443-3705, both of Citi Trends, Inc. Web site:
http://www.cititrends.com/ http://ir.cititrends.com/medialist.cfm
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