Citi Trends Announces Fourth Quarter and Fiscal 2005 Results;
SAVANNAH, Ga., March 14, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Citi Trends, Inc. (Nasdaq: CTRN) today reported results for the 13-week and 52-week periods ended January 28, 2006.
Financial Highlights - 13 weeks ended January 28, 2006
Total net sales increased 46.0% to $96.8 million compared with $66.3 million for the 13-week period ended January 29, 2005. Comparable store sales increased 22.8% compared with a 4.6% increase in the prior-year quarter. Comparable store sales in markets not affected by the hurricanes increased approximately 17% for the quarter. Relocated and expanded stores are included in the comparable store sales results. Net income increased 61.9% to $7.9 million compared with $4.9 million for the prior-year quarter. Earnings per diluted share increased 22.2% to $0.55 compared with $0.45 in the prior-year quarter. Included in these net income results are secondary offering expenses of approximately $0.5 million pre-tax, or $0.02 per diluted share.
Financial Highlights - 52 weeks ended January 28, 2006
Total net sales increased 42.5% to $289.8 million compared with $203.4 million for the 52-week period ended January 29, 2005. Comparable store sales increased 16.7% compared with a 3.0% increase in the prior-year period. Net income increased 95.7% to $14.2 million compared with $7.3 million for the prior-year period. Earnings per diluted share increased 61.2% to $1.08 compared with $0.67 in the prior-year period. Included in these net income results is a one-time management agreement termination fee paid in connection with the Company's initial public offering, incurred in the second quarter of fiscal 2005, of $1.2 million pre-tax and secondary offering expenses of approximately $0.5 million pre-tax incurred in the fourth quarter of fiscal 2005 for a total of $1.7 million, or approximately $0.08 per diluted share.
Fiscal 2006 Outlook
The Company estimates fiscal 2006 earnings of between $1.25 and $1.29 per diluted share. This estimate is based upon a fiscal 2006 comparable store sales increase of between 1% and 3%, 14.5 million diluted shares outstanding, and the opening of 42 to 45 new stores with 2 projected closings. The new store openings in fiscal 2006 are expected to increase selling square footage by approximately 20%. Total sales and net income are expected to increase 20-25% for the year. The above estimates for 2006 include stock option compensation expense which will be required under FAS 123R. The Company's current estimate for 2006 stock option compensation expense is approximately $1.2 million pre-tax, or approximately $0.05 per diluted share. In addition, due to the shift in Easter to mid-April, the Company expects comparable sales increases of flat to 3% in March and increases of 10% to 15% in April resulting in a high single-digit to low double-digit comparable sales increase and a total sales increase of 28% to 32% for the first quarter of 2006.
The Company reminds investors of the complexity of accurately assessing future growth given the difficulty in predicting fashion trends, consumer preferences and general economic conditions and the impact of other business variables.
Investor Conference Call and Webcast
Citi Trends will host a conference call on March 14, 2006, at 5:00 p.m. EST. The number to call for the live interactive teleconference is (719) 457-2629. A replay of the conference call will be available until March 21, 2006, by dialing (719) 457-0820 and entering the passcode, 1242577.
The live broadcast of Citi Trends' quarterly conference call will be available online at the Company's website, http://www.cititrends.com, as well as http://ir.cititrends.com/medialist.cfm on March 14, 2006, beginning at 5:00 p.m. EST. The online replay will follow shortly after the call and continue through March 28, 2006.
About Citi Trends
Citi Trends, Inc. is a value-priced retailer of urban fashion apparel and accessories for the entire family. The Company currently operates 237 stores located in 14 states in the South, Southeast, Midwest and Mid-Atlantic regions, and our website address is www.cititrends.com. CTRN-E
All statements other than historical facts contained in this news release, including statements regarding our future financial 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," "estimate," "continue," "anticipate," "intend," "expect" and similar expressions, as they relate to Citi Trends, are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, and that actual results or developments may differ materially from those 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 and expansion risks, consumer spending patterns, competition within the industry, competition in our markets and the ability to anticipate and respond to fashion trends. 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 STATEMENT OF INCOME (unaudited) (in $000's, except share and per share data) Thirteen Weeks Ended Jan. 28, 2006 Jan. 29, 2005 (unaudited) (unaudited) Net sales $96,844 $66,313 Cost of sales 59,915 41,020 Gross profit 36,929 25,293 Selling, general and administrative expenses 25,364 17,154 Income from operations 11,565 8,139 Interest income 392 4 Interest expense 43 179 Net income before taxes 11,914 7,964 Provision for income taxes 3,992 3,070 Net income $7,922 $4,894 Net income per share, basic $0.61 $0.53 Net income per share, diluted $0.55 $0.45 Weighted average shares used to compute net income per share, basic 12,941,959 9,295,000 Weighted average shares used to compute net income per share, diluted 14,405,559 10,902,736 CITI TRENDS INC. CONDENSED STATEMENT OF INCOME (unaudited) (in $000's, except share and per share data) Fifty-two Weeks Ended Jan. 28, 2006 Jan. 29, 2005 (unaudited) (unaudited) Net sales $289,804 $203,442 Cost of sales 178,953 127,308 Gross profit 110,851 76,134 Selling, general and administrative expenses 89,646 63,594 Income from operations 21,205 12,540 Interest income 892 42 Interest expense 345 774 Net income before taxes 21,752 11,808 Provision for income taxes 7,552 4,551 Net income $14,200 $7,257 Net income per share, basic $1.21 $0.78 Net income per share, diluted $1.08 $0.67 Weighted average shares used to compute net income per share, basic 11,746,866 9,302,800 Weighted average shares used to compute net income per share, diluted 13,148,602 10,879,388 CITI TRENDS, INC. CONDENSED BALANCE SHEETS (in $000's) (unaudited) Jan. 28, 2006 Jan. 29, 2005 (unaudited) (unaudited) Assets Cash and cash equivalents $9,079 $11,801 Marketable securities 54,458 - Inventory 54,021 36,173 Other assets 6,306 5,242 Property and equipment, net 23,426 17,574 Total assets $147,290 $70,790 Liabilities and Stockholders' Equity Borrowings under line of credit $- $- Accounts payable and accrued liabilities 57,667 33,870 Other liabilities 5,874 13,155 Total stockholders' equity 83,749 23,765 Total liabilities and stockholders' equity $147,290 $70,790
SOURCE Citi Trends, Inc.
Tom Stoltz, Chief Financial Officer, +1-912-443-2075, or Ed Anderson, Chief Executive Officer, +1-912-443-3705, both of Citi Trends, Inc.
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