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November 26, 2013 at 6:45 AM EST

Citi Trends Announces Third Quarter 2013 Results

Third quarter sales decreased 2.4%; comparable store sales increased 0.6%

Third quarter 2013 loss per share of $0.11 compared with $0.25 loss last year

SAVANNAH, Ga.--(BUSINESS WIRE)-- Citi Trends, Inc. (NASDAQ:CTRN) today reported results for the third quarter of fiscal 2013.

Financial Highlights — Third quarter ended November 2, 2013

Total sales in the third quarter ended November 2, 2013 decreased 2.4% to $145.4 million compared with $149.0 million in the third quarter ended October 27, 2012. Comparable store sales increased 0.6% in the third quarter on a comparable weeks basis.

Net loss was $1.7 million, or $0.11 per diluted share, in the third quarter of fiscal 2013, compared with a net loss of $3.7 million, or $0.25 per diluted share, in the third quarter of fiscal 2012. This year's third quarter benefited by a pretax gain of $1.5 million on the sale of the Company's former distribution center. The gain had a positive impact on loss per diluted share of $0.06 in the third quarter of fiscal 2013.

The Company closed one store and relocated or expanded three stores in the third quarter of 2013, resulting in a total store count of 505 at the end of the quarter.

Financial Highlights — First three quarters ended November 2, 2013

Total sales in the first three quarters of fiscal 2013 decreased 2.9% to $465.0 million compared with $479.0 million in the same period of fiscal 2012. Comparable store sales decreased 1.0% on a comparable weeks basis. Net loss was $1.0 million, or $0.07 per diluted share, in the first three quarters of this year, compared with a net loss of $1.5 million, or $0.10 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) 231-2921. A replay of the conference call will be available until December 3, 2013, by dialing (402) 977-9140 and entering the passcode, 21645980. The live broadcast of the 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 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 occurring 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 505 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 2, 2013 October 27, 2012
(unaudited) (unaudited)
Net sales $ 145,362 $ 148,985
Cost of sales   92,074     97,808  
Gross profit 53,288 51,177
Selling, general and administrative expenses (52,148 ) (51,132 )
Depreciation and amortization (5,454 ) (5,970 )
Asset impairment (556 ) (660 )
Gain on sale of former distribution center   1,526     -  
Loss from operations (3,344 ) (6,585 )
Interest income 78 66
Interest expense   (49 )   (50 )
Loss before income tax benefit (3,315 ) (6,569 )
Income tax benefit   (1,643 )   (2,869 )
Net loss $ (1,672 ) $ (3,700 )
 
Basic net loss per common share $ (0.11 ) $ (0.25 )
Diluted net loss per common share $ (0.11 ) $ (0.25 )
 
 
Weighted average shares used to compute basic net loss per share   14,815     14,677  
Weighted average shares used to compute diluted net loss per share   14,815     14,677  
 
 
 
 
 
Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended
November 2, 2013 October 27, 2012
(unaudited) (unaudited)
Net sales $ 465,011 $ 478,997
Cost of sales   294,878     308,739  
Gross profit 170,133 170,258
Selling, general and administrative expenses (155,976 ) (154,733 )
Depreciation and amortization (16,716 ) (18,153 )
Asset impairment (1,237 ) (660 )
Gain on sale of former distribution center   1,526     -  
Loss from operations (2,270 ) (3,288 )
Interest income 213 194
Interest expense   (145 )   (163 )
Loss before income tax benefit (2,202 ) (3,257 )
Income tax benefit   (1,201 )   (1,736 )
Net loss $ (1,001 ) $ (1,521 )
 
Basic net loss per common share $ (0.07 ) $ (0.10 )
Diluted net loss per common share $ (0.07 ) $ (0.10 )
 
 
Weighted average shares used to compute basic net loss per share   14,789     14,662  
Weighted average shares used to compute diluted net loss per share   14,789     14,662  
 
CITI TRENDS, INC.
CONDENSED BALANCE SHEETS (unaudited)
(in thousands)
       
November 2, 2013 October 27, 2012
(unaudited) (unaudited)
Assets:
Cash and cash equivalents $ 47,585 $ 36,195
Short-term investment securities 18,218 4,734
Inventory 123,203 146,700
Prepaid and other current assets 18,882 20,023
Assets held for sale - 1,415
Property and equipment, net 60,979 76,197
Long-term investment securities 20,052 14,957
Other noncurrent assets   6,950   2,268
Total assets $ 295,869 $ 302,489
 
Liabilities and Stockholders' Equity:
Accounts payable $ 58,929 $ 67,098
Accrued liabilities 29,488 25,691
Other current liabilities 2,397 2,544
Noncurrent liabilities   8,416   11,126
Total liabilities 99,230 106,459
 
Total stockholders' equity   196,639   196,030
Total liabilities and stockholders' equity $ 295,869 $ 302,489

Citi Trends, Inc.
Bruce Smith, 912-443-2075
Chief Financial Officer
or
Ed Anderson, 912-443-3705
Chairman & Chief Executive Officer

Source: Citi Trends, Inc.

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