Comparable store sales increased 6.7% in
third quarter
Results include $1.7 million legal
settlement expense in this year’s third quarter; $1.5
million gain on sale of distribution center in last year’s third
quarter
Third quarter 2014 loss per share of $(0.15)
compared with $(0.11) last year
Year-to-date income per share of $0.29
compared with a loss of $(0.07) last year
Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the
third quarter of fiscal 2014.
Financial Highlights – Third quarter
ended November 1, 2014
Total sales in the third quarter ended November 1, 2014
increased 7.8% to $156.7 million compared with $145.4 million in
the third quarter ended November 2, 2013. Comparable store sales
increased 6.7% in the quarter.
Net loss was $(2.2) million, or $(0.15) per diluted share, in
the third quarter of 2014 compared with a net loss of $(1.7)
million, or $(0.11) per diluted share, in last year’s third
quarter. Selling, general and administrative expenses in this
year’s third quarter included $1.7 million in expense related to a
legal settlement, which had a negative impact on loss per diluted
share of $0.07 in the third quarter of 2014. Last year’s third
quarter benefited from a pretax gain of $1.5 million on the sale of
the Company’s former distribution center, which had a positive
impact on loss per diluted share of $0.06.
Financial Highlights – First three
quarters ended November 1, 2014
Total sales in the first three quarters of fiscal 2014 increased
5.3% to $489.7 million compared with $465.0 million in the same
period of fiscal 2013. Comparable store sales increased 5.3% in the
first three quarters of this year. Net income was $4.3 million, or
$0.29 per diluted share, in the first three quarters of this year,
compared with a net loss of $(1.0) million, or $(0.07) per diluted
share, in last year’s first three quarters.
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) 231-2908. A replay of the conference call will be
available until December 2, 2014, by dialing (402) 977-9140
and entering the passcode, 21705728.
The live broadcast of Citi Trends' conference call will be
available online at the Company's website, www.cititrends.com, as
well as www.cititrends.com/http/ircititrendscom, beginning today at
9 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
511 stores located in 29 states. 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. Any forward-looking statements by the
Company, with respect to earnings guidance 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 November 1, 2014 November 2,
2013 (unaudited) (unaudited) Net sales $ 156,694 $ 145,362
Cost of sales (exclusive of depreciation shown separately
below) (98,542 ) (92,074 ) Selling, general and administrative
expenses (56,354 ) (52,148 ) Depreciation (5,038 ) (5,454 ) Asset
impairment - (556 ) Gain on sale of former distribution center
- 1,526 Loss from operations (3,240 )
(3,344 ) Interest income 43 78 Interest expense (48 )
(49 ) Loss before income tax benefit (3,245 ) (3,315 ) Income tax
benefit 1,038 1,643 Net loss $ (2,207 )
$ (1,672 ) Basic net loss per common share $ (0.15 ) $ (0.11
) Diluted net loss per common share $ (0.15 ) $ (0.11 )
Weighted average shares used to compute basic net loss per
share 14,982 14,815 Weighted average
shares used to compute diluted net loss per share 14,982
14,815
Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended
November 1, 2014 November 2, 2013 (unaudited)
(unaudited) Net sales $ 489,697 $ 465,011 Cost of sales
(exclusive of depreciation shown separately below) (304,849 )
(294,878 ) Selling, general and administrative expenses (163,526 )
(155,976 ) Depreciation (15,306 ) (16,716 ) Asset impairment (83 )
(1,237 ) Gain on sale of former distribution center -
1,526 Income (loss) from operations 5,933 (2,270 )
Interest income 135 213 Interest expense (152 ) (145
) Income (loss) before income tax expense (benefit) 5,916 (2,202 )
Income tax (expense) benefit (1,623 ) 1,201
Net income (loss) $ 4,293 $ (1,001 ) Basic net income
(loss) per common share $ 0.29 $ (0.07 ) Diluted net income
(loss) per common share $ 0.29 $ (0.07 )
Weighted average shares used to compute basic net income (loss) per
share 14,952 14,789 Weighted average
shares used to compute diluted net income (loss) per share
14,985 14,789
CITI TRENDS, INC. CONDENSED BALANCE SHEETS
(unaudited) (in thousands) November 1,
2014 November 2, 2013 (unaudited) (unaudited) Assets:
Cash and cash equivalents $ 65,991 $ 47,585 Short-term investment
securities 13,988 18,218 Inventory 128,516 123,203 Prepaid and
other current assets 18,658 18,882 Property and equipment, net
49,756 60,979 Long-term investment securities 24,038 20,052 Other
noncurrent assets 7,005 6,950 Total assets $ 307,952
$ 295,869 Liabilities and Stockholders' Equity: Accounts
payable $ 63,478 $ 58,929 Accrued liabilities 30,847 29,488 Other
current liabilities 2,359 2,397 Noncurrent liabilities 6,247
8,416 Total liabilities 102,931 99,230 Total
stockholders' equity 205,021 196,639 Total
liabilities and stockholders' equity $ 307,952 $ 295,869
Citi Trends, Inc.Bruce Smith, 912-443-2075Chief Financial
OfficerorEd Anderson, 912-443-3705Chairman & Chief Executive
Officer
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