Second quarter 2016 loss per share of
$(0.01) compared with $0.01 income last year
First half 2016 income per share of $0.59
compared with $0.75 last year
Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the
second quarter of fiscal 2016.
Financial Highlights – Second quarter
ended July 30, 2016
Total sales in the second quarter ended July 30, 2016 increased
0.9% to $155.3 million compared with $153.9 million in the second
quarter ended August 1, 2015. Comparable store sales decreased 1.0%
in the quarter.
Net loss was $(0.1) million, or $(0.01) per diluted share, in
the second quarter of 2016 compared with net income of $0.2
million, or $0.01 per diluted share, in last year’s second
quarter.
During the second quarter, the Company opened four new stores
and relocated or expanded two other stores.
Financial Highlights – First half ended
July 30, 2016
Total sales in the first half of fiscal 2016 increased less than
0.1% to $348.9 million compared with $348.8 million in the first
half of fiscal 2015. Comparable store sales decreased 2.0% in the
first half of this year.
In the first half of fiscal 2016, net income was $8.6 million
compared with $11.4 million in last year’s first half. Earnings per
diluted share were $0.59 in the first half of 2016 compared with
$0.75 in the first half of 2015.
Quarterly Cash Dividend
The Company announced that its Board of Directors has declared a
quarterly cash dividend of $0.06 per common share, payable on
September 13, 2016, to shareholders of record as of the close of
business on August 30, 2016.
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) 231-2934. A replay of the conference call will be
available until August 24, 2016, by dialing (402) 977-9140 and
entering the passcode, 21812475.
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 an off-price retailer of urban fashion
apparel and accessories for the entire family. The Company operates
530 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 repurchase of the Company’s shares, 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 CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
Thirteen Weeks Ended
Thirteen Weeks Ended
July 30, 2016 August 1, 2015 (unaudited) (unaudited)
Net sales $ 155,276 $ 153,878 Cost of sales (exclusive of
depreciation shown separately below) (95,150 ) (93,179 ) Selling,
general and administrative expenses (56,105 ) (55,703 )
Depreciation (4,294 ) (4,620 ) (Loss) income from
operations (273 ) 376 Interest income 135 59 Interest expense
(41 ) (47 ) (Loss) income before income tax benefit
(expense) (179 ) 388 Income tax benefit (expense) 59
(226 ) Net (loss) income $ (120 ) $ 162 Basic
net (loss) income per common share $ (0.01 ) $ 0.01 Diluted
net (loss) income per common share $ (0.01 ) $ 0.01
Weighted average shares used to compute basic net (loss)
income per share 14,676 15,183 Weighted
average shares used to compute diluted net (loss) income per share
14,676 15,204
Twenty-Six Weeks Ended
Twenty-Six Weeks Ended
July 30, 2016 August 1, 2015 (unaudited) (unaudited)
Net sales $ 348,948 $ 348,791 Cost of sales (exclusive of
depreciation shown separately below) (212,959 ) (210,688 ) Selling,
general and administrative expenses (114,436 ) (111,515 )
Depreciation (8,738 ) (9,433 ) Asset impairment (221 )
- Income from operations 12,594 17,155 Interest
income 262 115 Interest expense (81 ) (94 ) Income
before income tax expense 12,775 17,176 Income tax expense
(4,158 ) (5,735 ) Net income $ 8,617 $ 11,441
Basic net income per common share $ 0.59 $ 0.76
Diluted net income per common share $ 0.59 $ 0.75
Weighted average shares used to compute basic
net income per share 14,635 15,139
Weighted average shares used to compute diluted net income per
share 14,640 15,193
CITI TRENDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in
thousands) July 30, 2016 August 1, 2015
(unaudited) (unaudited) Assets: Cash and cash equivalents $ 39,606
$ 54,380 Short-term investment securities 37,345 24,778 Inventory
132,093 126,346 Prepaid and other current assets (1) 17,034 14,890
Property and equipment, net 52,935 47,903 Long-term investment
securities 24,616 36,512 Other noncurrent assets (1) 9,810
11,240 Total assets $ 313,439 $ 316,049
Liabilities and Stockholders' Equity: Accounts
payable $ 61,982 $ 59,391 Accrued liabilities 22,826 25,297 Other
current liabilities 1,742 2,128 Noncurrent liabilities 7,413
6,040 Total liabilities 93,963 92,856
Total stockholders' equity 219,476 223,193
Total liabilities and stockholders' equity $ 313,439
$ 316,049
(1) August 1, 2015 deferred tax asset
balances reflect a reclassification between current and noncurrent
assets totaling $4,056 in connection with the retrospective
adoption of ASU 2015-17 in 2016.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160817005066/en/
Citi Trends, Inc.Bruce Smith, 912-443-2075Chief Operating
Officer and Chief Financial OfficerorJason Mazzola,
912-443-3990President and Chief Executive Officer
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