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Citi Trends Announces Third Quarter 2012 Results


Third quarter sales increased 4.1%; comparable store sales increased 0.5%

Third quarter 2012 loss per share of $0.25 compared with $0.46 loss last year

SAVANNAH, Ga.--(BUSINESS WIRE)-- Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the third quarter of fiscal 2012.

Financial Highlights — Third quarter ended October 27, 2012

Total sales in the third quarter ended October 27, 2012 increased 4.1% to $149.0 million compared with $143.1 million in the third quarter ended October 29, 2011. Comparable store sales increased 0.5%.

Net loss was $3.7 million, or $0.25 per diluted share, in the third quarter of fiscal 2012, compared with a net loss of $6.8 million, or $0.46 per diluted share, in the third quarter of fiscal 2011. Last year's third quarter was affected by severance costs of $1.2 million, incurred primarily in connection with the elimination of 40 positions in the Company's corporate offices, distribution centers and store organization. The severance expense had an adverse impact on loss per diluted share of $0.05 in the third quarter of fiscal 2011.

The Company opened one store and relocated or expanded two others in the third quarter of 2012, reaching a total store count of 513 at the end of the quarter.

Financial Highlights — First three quarters ended October 27, 2012

Total sales in the first three quarters of fiscal 2012 increased 3.6% to $479.0 million compared with $462.5 million in the same period of fiscal 2011. Comparable store sales decreased 3.1%. Net loss was $1.5 million, or $0.10 per diluted share, in the first three quarters of this year, compared with a net loss of $4.7 million, or $0.32 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) 231-2906. A replay of the conference call will be available until November 27, 2012, by dialing (402) 977-9140 and entering the passcode, 21602893. 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 continue through November 27, 2012.

During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends 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.

The Company's next scheduled press release is scheduled for February 13, 2013 and will consist of a report on fourth quarter sales results.

About Citi Trends

Citi Trends, Inc. is a value-priced retailer of urban fashion apparel and accessories for the entire family. The Company operates 513 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
October 27, 2012 October 29, 2011
(unaudited) (unaudited)
Net sales $ 148,985 $ 143,067
Cost of sales   97,808     94,909  
Gross profit 51,177 48,158
Selling, general and administrative expenses 51,132 53,059
Depreciation and amortization 5,970 6,454
Asset impairment   660     696  
Loss from operations (6,585 ) (12,051 )
Interest income 66 61
Interest expense   (50 )   (17 )
Loss before income tax benefit (6,569 ) (12,007 )
Income tax benefit   (2,869 )   (5,246 )
Net loss $ (3,700 ) $ (6,761 )
 
Basic net loss per common share $ (0.25 ) $ (0.46 )
Diluted net loss per common share $ (0.25 ) $ (0.46 )
 
 
Weighted average shares used to compute basic net loss per share   14,677     14,602  
Weighted average shares used to compute diluted net loss per share   14,677     14,602  
 
 
 
 
Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended
October 27, 2012 October 29, 2011
(unaudited) (unaudited)
Net sales $ 478,997 $ 462,468
Cost of sales   308,739     295,789  
Gross profit 170,258 166,679
Selling, general and administrative expenses 154,733 154,819
Depreciation and amortization 18,153 18,389
Asset impairment   660     2,305  
Loss from operations (3,288 ) (8,834 )
Interest income 194 180
Interest expense   (163 )   (27 )
Loss before income tax benefit (3,257 ) (8,681 )
Income tax benefit   (1,736 )   (3,982 )
Net loss $ (1,521 ) $ (4,699 )
 
Basic net loss per common share $ (0.10 ) $ (0.32 )
Diluted net loss per common share $ (0.10 ) $ (0.32 )
 
 
Weighted average shares used to compute basic net loss per share   14,662     14,584  
Weighted average shares used to compute diluted net loss per share   14,662     14,584  
 
       
CITI TRENDS, INC.
CONDENSED BALANCE SHEETS (unaudited)
(in thousands)
 
October 27, 2012 October 29, 2011
(unaudited) (unaudited)
Assets:
Cash and cash equivalents $ 36,195 $ 33,225
Short-term investment securities 4,734 -
Inventory 146,700 127,156
Prepaid and other current assets 20,023 27,836
Assets held for sale 1,415 1,415
Property and equipment, net 76,197 95,369
Long-term investment securities 14,957 19,760
Other noncurrent assets   2,268   3,308
Total assets $ 302,489 $ 308,069
 

Liabilities and Stockholders' Equity:

Accounts payable $ 67,098 $ 64,120
Accrued liabilities 25,691 25,126
Other current liabilities 2,544 3,363
Noncurrent liabilities   11,126   12,974
Total liabilities 106,459 105,583
 

Total stockholders' equity

  196,030   202,486

Total liabilities and stockholders' equity

$ 302,489 $ 308,069
 

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.

News Provided by Acquire Media

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