Citi Trends Announces First Quarter 2017 Results and Declares Quarterly Dividend
Financial Highlights - First quarter ended
Total sales in the first quarter ended
On a GAAP basis, the Company had net income of
Bruce Smith, Acting Chief Executive Officer, commented, "Despite a challenging start to the quarter which was negatively impacted by later tax refund disbursements, we are pleased to have delivered positive comparable store sales and a 14% increase in net income adjusted for proxy contest expenses. The success in the quarter confirms that our strategic direction remains on track as we continue to diversify our offerings into complementary product lines, while maintaining a keen focus on delivering fashion-right and value-priced merchandise that resonates with our customer base. In particular, our non-apparel business, accessories and home, which now comprises 37% of our merchandise mix, continues to perform well. The accessories division has had comparable store sales increases in 28 of the last 31 quarters, while the home division increased for the 19th consecutive quarter. While adding significantly to the Company's sales, the non-apparel business consistently delivers gross margin above the Company-average, making our merchandise offering even more profitable."
During the first quarter, the Company opened six new stores, relocated or expanded two other stores and closed one store.
In addition, the Company announced that its Board of Directors has
declared a quarterly dividend of
Investor Conference Call and Webcast
The live broadcast of
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
*Non-GAAP Financial Measure
The non-GAAP financial measures are reconciled to their corresponding GAAP measures at the end of this press release.
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, objectives of management for future
operations and our intentions and ability to pay dividends and complete
any share repurchases, 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
Important Additional Information
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
(unaudited) | |||||||||||
(in thousands, except per share data) | |||||||||||
Thirteen Weeks Ended | Thirteen Weeks Ended | ||||||||||
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(unaudited) | (unaudited) | ||||||||||
Net sales | $ | 199,955 | $ | 193,672 | |||||||
Cost of sales (exclusive of depreciation shown separately below) | (122,390 | ) | (117,809 | ) | |||||||
Selling, general and administrative expenses | (60,487 | ) | (58,331 | ) | |||||||
Depreciation | (4,298 | ) | (4,444 | ) | |||||||
Asset impairment | - | (221 | ) | ||||||||
Income from operations | 12,780 | 12,867 | |||||||||
Interest income | 186 | 127 | |||||||||
Interest expense | (37 | ) | (40 | ) | |||||||
Income before income taxes | 12,929 | 12,954 | |||||||||
Income tax expense | (4,039 | ) | (4,217 | ) | |||||||
Net income | $ | 8,890 | $ | 8,737 | |||||||
Basic net income per common share | $ | 0.60 | $ | 0.60 | |||||||
Diluted net income per common share | $ | 0.60 | $ | 0.60 | |||||||
Weighted average shares used to compute basic net income per share | 14,719 | 14,594 | |||||||||
Weighted average shares used to compute diluted net income per share | 14,780 | 14,603 | |||||||||
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CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(unaudited) | |||||||||
(in thousands) | |||||||||
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(unaudited) | (unaudited) | ||||||||
Assets: | |||||||||
Cash and cash equivalents | $ | 73,037 | $ | 53,032 | |||||
Short-term investment securities | 34,189 | 40,215 | |||||||
Inventory | 124,533 | 123,330 | |||||||
Prepaid and other current assets | 13,853 | 13,536 | |||||||
Property and equipment, net | 61,152 | 49,816 | |||||||
Long-term investment securities | 25,914 | 24,327 | |||||||
Other noncurrent assets | 7,753 | 9,223 | |||||||
Total assets | $ | 340,431 | $ | 313,479 | |||||
Liabilities and Stockholders' Equity: | |||||||||
Accounts payable | $ | 71,465 | $ | 60,128 | |||||
Accrued liabilities | 27,530 | 24,316 | |||||||
Other current liabilities | 2,147 | 2,528 | |||||||
Noncurrent liabilities | 8,260 | 6,661 | |||||||
Total liabilities | 109,402 | 93,633 | |||||||
Total stockholders' equity | 231,029 | 219,846 | |||||||
Total liabilities and stockholders' equity | $ | 340,431 | $ | 313,479 | |||||
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RECONCILIATION OF GAAP BASIS OPERATING RESULTS TO |
ADJUSTED NON-GAAP OPERATING RESULTS |
(unaudited) |
(in thousands, except per share data) |
The Company makes reference in this release to net income adjusted for proxy contest expenses and earnings per diluted share adjusted for proxy contest expenses. The Company believes that excluding proxy contest expenses and their related tax effects from its financial results reflects operating results that are more indicative of the Company's ongoing operating performance while improving comparability to prior periods, and as such, may provide investors with an enhanced understanding of the Company's past financial performance and prospects for the future. This information is not intended to be considered in isolation or as a substitute for net income, net income per common share or expense information prepared in accordance with generally accepted accounting principles (GAAP).
Thirteen Weeks Ended |
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As Reported | Adjustment (1) | As Adjusted | ||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||
Net sales | $ | 199,955 | $ | - | $ | 199,955 | ||||||||||
Cost of sales (exclusive of depreciation shown separately below) | (122,390 | ) | - | (122,390 | ) | |||||||||||
Selling, general and administrative expenses | (60,487 | ) | 1,590 | (58,897 | ) | |||||||||||
Depreciation | (4,298 | ) | - | (4,298 | ) | |||||||||||
Income from operations | 12,780 | 1,590 | 14,370 | |||||||||||||
Interest income | 186 | - | 186 | |||||||||||||
Interest expense | (37 | ) | - | (37 | ) | |||||||||||
Income before income taxes | 12,929 | 1,590 | 14,519 | |||||||||||||
Income tax expense | (4,039 | ) | (497 | ) | (4,536 | ) | ||||||||||
Net income | $ | 8,890 | $ | 1,093 | $ | 9,983 | ||||||||||
Basic net income per common share | $ | 0.60 | $ | 0.68 | ||||||||||||
Diluted net income per common share | $ | 0.60 | $ | 0.68 | ||||||||||||
Weighted average shares used to compute basic net income per share | 14,719 | 14,719 | ||||||||||||||
Weighted average shares used to compute diluted net income per share | 14,780 | 14,780 | ||||||||||||||
(1) Proxy contest expenses and related tax effects | ||||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170517005188/en/
For
Bruce Smith, 912-443-2075
Acting Chief
Executive Officer,
Chief Operating Officer and
Chief Financial
Officer
Source:
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