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Citi Trends Announces Fourth Quarter and Fiscal 2011 Results


SAVANNAH, Ga.--(BUSINESS WIRE)-- Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the fourth quarter and fiscal year ended January 28, 2012.

Financial Highlights — Fourth quarter ended January 28, 2012

Total sales in the fourth quarter ended January 28, 2012 increased 3.7% to $178.4 million compared with $172.0 million in the quarter ended January 29, 2011. Comparable store sales decreased 6.2% in the fourth quarter.

A net loss of $5.3 million, or $0.36 per diluted share, was recognized in the fourth quarter of 2011 compared with net income of $9.4 million, or $0.64 per diluted share, in last year's fourth quarter. The loss in the fourth quarter of 2011 includes non-cash asset impairment expense totaling $0.18 per diluted share.

The Company opened 5 stores and closed 1 store in the fourth quarter of 2011, reaching a total store count of 511 at the end of the year.

Financial Highlights — Fiscal year ended January 28, 2012

Total sales in the fiscal year ended January 28, 2012 increased 2.9% to $640.8 million compared with $622.5 million in the fiscal year ended January 29, 2011. Comparable store sales decreased 8.3% for the full year.

A net loss of $10.0 million, or $0.69 per diluted share, was recognized in fiscal 2011 compared with net income of $20.9 million, or $1.44 per diluted share, in fiscal 2010. The net loss in 2011 includes non-cash asset impairment expense totaling $0.27 per diluted share.

The Company opened 55 stores, relocated or expanded 14 others, and closed 5 stores in 2011.

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) 231-2906. A replay of the conference call will be available until March 16, 2012, by dialing (402) 977-9140 and entering the passcode, 21575847. The live broadcast of Citi Trends' 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 continue through March 16, 2012.

During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends in fiscal 2012. 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 year-end 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
January 28, 2012 January 29, 2011
(unaudited) (unaudited)
Net sales $ 178,356 $ 172,043
Cost of sales   124,532     105,184  
Gross profit 53,824 66,859
Selling, general and administrative expenses 52,206 47,112
Depreciation and amortization 6,569 5,671
Asset impairment   4,209     21  
(Loss) income from operations (9,160 ) 14,055
Interest income 63 34
Interest expense   (52 )   (7 )
(Loss) income before income taxes (9,149 ) 14,082
Income tax (benefit) expense   (3,834 )   4,718  
Net (loss) income $ (5,315 ) $ 9,364  
 
Basic net (loss) income per common share $ (0.36 ) $ 0.64  
Diluted net (loss) income per common share $ (0.36 ) $ 0.64  
 
 
Weighted average shares used to compute basic net (loss) income per share   14,606     14,523  
Weighted average shares used to compute diluted net (loss) income per share   14,606     14,537  
 
 
 
 
Fifty-Two Weeks Ended Fifty-Two Weeks Ended
January 28, 2012 January 29, 2011
(unaudited) (unaudited)
Net sales $ 640,824 $ 622,528
Cost of sales   420,321     383,318  
Gross profit 220,503 239,210
Selling, general and administrative expenses 207,025 187,231
Depreciation and amortization 24,958 20,324
Asset impairment   6,514     211  
(Loss) income from operations (17,994 ) 31,444
Interest income 243 174
Interest expense   (79 )   (24 )
(Loss) income before income taxes (17,830 ) 31,594
Income tax (benefit) expense   (7,816 )   10,742  
Net (loss) income $ (10,014 ) $ 20,852  
 
Basic net (loss) income per common share $ (0.69 ) $ 1.44  
Diluted net (loss) income per common share $ (0.69 ) $ 1.44  
 
 
Weighted average shares used to compute basic net (loss) income per share   14,589     14,503  
Weighted average shares used to compute diluted net (loss) income per share   14,589     14,523  
 
 
CITI TRENDS, INC.
CONDENSED BALANCE SHEETS (unaudited)
(in thousands)
 
    January 28, 2012     January 29, 2011
(unaudited) (unaudited)
Assets:
Cash and cash equivalents $ 41,986 $ 69,231
Short-term investment securities 902 586
Inventory 131,526 121,432
Other current assets 28,961 16,669
Property and equipment, net 90,541 85,299
Long-term investment securities 18,840 9,205
Other noncurrent assets   2,021   3,980
Total assets $ 314,777 $ 306,402
 

Liabilities and Stockholders' Equity:

Accounts payable $ 78,941 $ 67,934
Accrued liabilities 26,074 23,184
Other current liabilities 603 444
Noncurrent liabilities   12,756   10,036
Total liabilities 118,374 101,598
 

Total stockholders' equity

  196,403   204,804

Total liabilities and stockholders' equity

$ 314,777 $ 306,402

Citi Trends, Inc.
Bruce Smith, 912-443-2075
Chief Financial Officer
or
Ed Anderson, 912-443-3924
Chief Executive Officer

Source: Citi Trends, Inc.

News Provided by Acquire Media

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