Citi Trends Announces Third Quarter 2017 Results
Third quarter total sales increased 10.1%; comparable store sales up 7.4%
Quarterly earnings per share of
Financial Highlights - Third quarter ended
Total sales in the third quarter ended
The Company had net income of
During the third quarter, the Company opened five new stores, relocated or expanded two stores, and closed one store.
Financial Highlights - First three quarters
ended
Total sales in the first three quarters of fiscal 2017 increased 6.6% to
The Company had net income of
Bruce Smith, Acting Chief Executive Officer, commented, "We are extremely pleased to report strong sales and operating results for the third quarter. The momentum that we saw in recent quarters continued at an accelerated pace in the third quarter and is being driven by our delivery of fashion-right, value-priced merchandise to our customers. Comparable store sales growth was consistently strong throughout the quarter, with a 7% increase in August and 8% increases in both September and October. Importantly, all five of our major merchandise categories once again contributed to the sales increases.
"In addition to 10% total sales growth in the third quarter, we were
pleased with an improvement in gross margin and significant expense
leverage, all of which led to operating margin expansion of 140 basis
points and a
"We believe that we have entered the fourth quarter in a high-quality, liquid inventory position. Early reads on the holiday season have been positive, as comparable store sales for the first three weeks of November have been up 7% on top of a 6% increase in the same three weeks last year."
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 discussed herein 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 repurchase authorizations, 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
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||
(in thousands, except per share data) | ||||||||
Thirteen Weeks Ended | Thirteen Weeks Ended | |||||||
|
|
|||||||
(unaudited) | (unaudited) | |||||||
Net sales | $ | 176,943 | $ | 160,716 | ||||
Cost of sales (exclusive of depreciation shown separately below) | (110,094 | ) | (100,386 | ) | ||||
Selling, general and administrative expenses | (61,118 | ) | (57,637 | ) | ||||
Depreciation | (4,976 | ) | (4,223 | ) | ||||
Asset impairment | - | (61 | ) | |||||
Income (loss) from operations | 755 | (1,591 | ) | |||||
Interest income | 216 | 146 | ||||||
Interest expense | (38 | ) | (39 | ) | ||||
Income (loss) before income taxes | 933 | (1,484 | ) | |||||
Income tax (expense) benefit | (286 | ) | 648 | |||||
Net income (loss) | $ | 647 | $ | (836 | ) | |||
Basic net income (loss) per common share | $ | 0.05 | $ | (0.06 | ) | |||
Diluted net income (loss) per common share | $ | 0.05 | $ | (0.06 | ) | |||
Weighted average number of shares outstanding | ||||||||
Basic | 13,563 | 14,677 | ||||||
Diluted | 13,614 | 14,677 | ||||||
Thirty-Nine Weeks Ended | Thirty-Nine Weeks Ended | |||||||
|
|
|||||||
(unaudited) | (unaudited) | |||||||
Net sales | $ | 543,098 | $ | 509,664 | ||||
Cost of sales (exclusive of depreciation shown separately below) | (334,659 | ) | (313,345 | ) | ||||
Selling, general and administrative expenses | (181,439 | ) | (172,073 | ) | ||||
Depreciation | (13,863 | ) | (12,961 | ) | ||||
Asset impairment | (77 | ) | (282 | ) | ||||
Income from operations | 13,060 | 11,003 | ||||||
Interest income | 617 | 408 | ||||||
Interest expense | (112 | ) | (120 | ) | ||||
Income before income taxes | 13,565 | 11,291 | ||||||
Income tax expense | (4,238 | ) | (3,510 | ) | ||||
Net income | $ | 9,327 | $ | 7,781 | ||||
Basic net income per common share | $ | 0.66 | $ | 0.53 | ||||
Diluted net income per common share | $ | 0.65 | $ | 0.53 | ||||
Weighted average number of shares outstanding | ||||||||
Basic | 14,221 | 14,649 | ||||||
Diluted | 14,270 | 14,652 | ||||||
|
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||
(in thousands) | ||||||
|
|
|||||
(unaudited) | (unaudited) | |||||
Assets: | ||||||
Cash and cash equivalents | $ | 34,866 | $ | 36,956 | ||
Short-term investment securities | 30,298 | 34,132 | ||||
Inventory | 133,245 | 130,752 | ||||
Prepaid and other current assets | 16,405 | 18,570 | ||||
Property and equipment, net | 63,571 | 54,478 | ||||
Long-term investment securities | 26,117 | 29,183 | ||||
Other noncurrent assets | 8,171 | 9,211 | ||||
Total assets | $ | 312,673 | $ | 313,282 | ||
Liabilities and Stockholders' Equity: | ||||||
Accounts payable | $ | 68,047 | $ | 59,098 | ||
Accrued liabilities | 28,921 | 25,718 | ||||
Other current liabilities | 1,913 | 1,974 | ||||
Noncurrent liabilities | 8,786 | 8,130 | ||||
Total liabilities | 107,667 | 94,920 | ||||
Total stockholders' equity | 205,006 | 218,362 | ||||
Total liabilities and stockholders' equity | $ | 312,673 | $ | 313,282 | ||
|
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, earnings per common share, or expense information prepared in accordance with generally accepted accounting principles (GAAP). |
Thirteen Weeks Ended |
|||||||||||||
As Reported | Adjustment (1) | As Adjusted | |||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||
Net sales | $ | 176,943 | $ | - | $ | 176,943 | |||||||
Cost of sales (exclusive of depreciation shown separately below) | (110,094 | ) | - | (110,094 | ) | ||||||||
Selling, general and administrative expenses | (61,118 | ) | - | (61,118 | ) | ||||||||
Depreciation | (4,976 | ) | - | (4,976 | ) | ||||||||
Asset impairment | - | - | - | ||||||||||
Income from operations | 755 | - | 755 | ||||||||||
Interest income | 216 | - | 216 | ||||||||||
Interest expense | (38 | ) | - | (38 | ) | ||||||||
Income before income taxes | 933 | - | 933 | ||||||||||
Income tax expense | (286 | ) | - | (286 | ) | ||||||||
Net income | $ | 647 | $ | - | $ | 647 | |||||||
Basic net income per common share | $ | 0.05 | $ | 0.05 | |||||||||
Diluted net income per common share | $ | 0.05 | $ | 0.05 | |||||||||
Weighted average number of shares outstanding | |||||||||||||
Basic | 13,563 | 13,563 | |||||||||||
Diluted | 13,614 | 13,614 | |||||||||||
Thirty-Nine Weeks Ended |
|||||||||||||
As Reported | Adjustment (1) | As Adjusted | |||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||
Net sales | $ | 543,098 | $ | - | $ | 543,098 | |||||||
Cost of sales (exclusive of depreciation shown separately below) | (334,659 | ) | - | (334,659 | ) | ||||||||
Selling, general and administrative expenses | (181,439 | ) | 2,516 | (178,923 | ) | ||||||||
Depreciation | (13,863 | ) | - | (13,863 | ) | ||||||||
Asset impairment | (77 | ) | - | (77 | ) | ||||||||
Income from operations | 13,060 | 2,516 | 15,576 | ||||||||||
Interest income | 617 | - | 617 | ||||||||||
Interest expense | (112 | ) | - | (112 | ) | ||||||||
Income before income taxes | 13,565 | 2,516 | 16,081 | ||||||||||
Income tax expense | (4,238 | ) | (786 |
) |
|
(5,024 | ) | ||||||
Net income | $ | 9,327 | $ | 1,730 | $ | 11,057 | |||||||
Basic net income per common share | $ | 0.66 | $ | 0.78 | |||||||||
Diluted net income per common share | $ | 0.65 | $ | 0.77 | |||||||||
Weighted average number of shares outstanding | |||||||||||||
Basic | 14,221 | 14,221 | |||||||||||
Diluted | 14,270 | 14,270 | |||||||||||
(1) Proxy contest expenses and related tax effects |
View source version on businesswire.com: http://www.businesswire.com/news/home/20171121005069/en/
Bruce Smith, (912) 443-2075
Acting Chief
Executive Officer,
Chief Operating Officer and
Chief Financial
Officer
Source:
News Provided by Acquire Media