Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the
third quarter of fiscal 2009.
Financial Highlights – Third
quarter ended October 31, 2009
Total sales in the third quarter ended October 31, 2009
increased 21.4% to $127.4 million compared with $104.9 million in
the third quarter ended November 1, 2008. Comparable store sales
increased 6.3% in the third quarter. Net income was $606,000 in
this year’s third quarter compared with a net loss of $687,000 in
the third quarter of 2008. Earnings per diluted share were $0.04 in
the third quarter of 2009 compared with a loss per diluted share of
$(0.05) in the third quarter of 2008.
Sales and earnings in this year’s third quarter benefited from a
strong back-to-school season and a favorable comparison to last
year’s third quarter which was impacted by less discretionary
spending by consumers on apparel due to abnormally high gasoline
and food prices.
Store activity in the third quarter of 2009 included twenty-two
new openings and five expansions, resulting in a total store count
of 392 at the end of the quarter.
Financial Highlights – First
three quarters ended October 31, 2009
Total sales in the first three quarters of fiscal 2009 increased
11.8% to $382.1 million compared with $341.6 million in the same
period of fiscal 2008. Comparable store sales increased 0.4% in the
first three quarters of this year. Net income increased 15.5% to
$8.5 million compared with $7.3 million in last year’s first three
quarters. Earnings per diluted share increased 13.7% to $0.58 in
the first three quarters of 2009 compared with $0.51 in the same
period of 2008.
Fiscal 2009
Outlook
The Company estimates that 2009 earnings will be in a range of
$1.30 to $1.35 per diluted share. This guidance is based upon an
anticipated comparable store sales increase of 1% to 3% in the
fourth quarter, an increase of approximately 15% in selling square
footage for the year, and an effective tax rate for 2009 of
approximately 34%.
The Company reminds investors of the complexity of accurately
assessing future results given the difficulty in predicting fashion
trends, consumer preferences and general economic conditions and
the impact of other business variables. See “Forward-Looking
Statements” below for more information regarding these
uncertainties.
Investor Conference Call and
Webcast
Citi Trends will host a conference call today at 5:00 p.m. ET.
The number to call for the live interactive teleconference is
(212) 231-2907. A replay of the conference call will be
available until November 30, 2009, by dialing (402) 977-9140
and entering the passcode, 21440721. The live broadcast of Citi
Trends’ quarterly conference call will be available online at the
Company’s website, www.cititrends.com, as well as
http://ir.cititrends.com/events.cfm, beginning today at 5:00 p.m.
ET. The online replay will follow shortly after the call and
continue through November 30, 2009.
During the conference call, the Company may discuss and answer
questions concerning business and financial developments and
trends. 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. After opening 11
stores thus far in November 2009, the Company currently operates
403 stores located in 24 states in the Southeast, Mid-Atlantic and
Midwest regions and the states of Texas and California. Citi
Trends’ website address is 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
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. 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 October 31, 2009 November 1, 2008
(unaudited) (unaudited) Net sales $ 127,356 $ 104,948 Cost of sales
79,720 66,208 Gross profit 47,636
38,740 Selling, general and administrative expenses 41,989 36,482
Depreciation and amortization 4,851 4,134
Income (loss) from operations 796 (1,876 ) Interest income
85 790 Interest expense (17 ) (94 ) Unrealized gain on investment
securities 57 - Income (loss) before
income tax expense (benefit) 921 (1,180 ) Income tax expense
(benefit) 315 (493 ) Net income (loss) $ 606
$ (687 ) Basic net income (loss) per common share $
0.04 $ (0.05 ) Diluted net income (loss) per common share $
0.04 $ (0.05 ) Net income (loss) attributable to
common shares (1): Basic $ 593 $ (687 ) Diluted $ 593
$ (687 ) Weighted average shares used to compute basic net
income (loss) per share 14,370 14,141
Weighted average shares used to compute diluted net income (loss)
per share 14,409 14,141
CITI TRENDS, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in
thousands, except per share data) Thirty-Nine
Weeks Ended Thirty-Nine Weeks Ended October 31,
2009 November 1, 2008 (unaudited) (unaudited) Net sales
$ 382,058 $ 341,599 Cost of sales 234,640
211,172 Gross profit 147,418 130,427 Selling, general and
administrative expenses 121,116 109,600 Depreciation and
amortization 13,679 11,915 Income from
operations 12,623 8,912 Interest income 329 2,215 Interest expense
(86 ) (256 ) Income before income tax expense
12,866 10,871 Income tax expense 4,400 3,544
Net income $ 8,466 $ 7,327 Basic net
income per common share $ 0.58 $ 0.51 Diluted net
income per common share $ 0.58 $ 0.51 Net
income attributable to common shares (1): Basic $ 8,289 $
7,239 Diluted $ 8,289 $ 7,240 Weighted
average shares used to compute basic net income per share
14,351 14,095 Weighted average shares used to
compute diluted net income per share 14,383
14,262 (1) Net of income allocated to nonvested
restricted stockholders
CITI TRENDS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited) (in thousands) October 31,
2009 November 1, 2008 (unaudited) (unaudited) Assets:
Cash and cash equivalents $ 32,487 $ 12,415 Short-term investment
securities 42,225 - Inventory 105,314 89,822 Other current assets
16,420 12,690 Property and equipment, net 62,422 58,659 Long-term
investment securities - 41,785 Other noncurrent assets 4,282
7,154 Total assets $ 263,150 $ 222,525 Liabilities
and Stockholders' Equity: Accounts payable $ 60,762 $ 46,366
Accrued liabilities 20,263 17,516 Other current liabilities 3,504
4,281 Noncurrent liabilities 9,719 7,673 Total
liabilities 94,248 75,836 Total stockholders' equity
168,902 146,689 Total liabilities and stockholders' equity $
263,150 $ 222,525
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