UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): March 15, 2013

 

Citi Trends, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

000-51315

 

52-2150697

(State or other jurisdiction of incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

104 Coleman Boulevard, Savannah, Georgia

 

31408

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (912) 236-1561

 

Former name or former address, if changed since last report: Not applicable

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2 below):

 

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o    Pre- commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02. Results of Operations and Financial Condition.

 

On March 15, 2013, Citi Trends, Inc. (the “Company”) issued a press release reporting its financial results for the fourth quarter and fiscal year ended February 2, 2013 (the “Earnings Release”). A copy of the Earnings Release is attached to this Current Report on Form 8-K (“Current Report”) as Exhibit 99.1 and the contents of which are incorporated herein solely for purposes of this Item 2.02 disclosure.

 

The information in this Item 2.02, including the Earnings Release attached to this Current Report, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information in this Item 2.02, including the Earnings Release, shall not be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Earnings Release dated March 15, 2013

 

2



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

CITI TRENDS, INC.

 

 

 

 

 

Date: March 15, 2013

 

 

 

 

 

By:

/s/ Bruce D. Smith

 

 

Name:

Bruce D. Smith

 

 

Title:

Chief Financial Officer

 

3



 

Exhibit Index

 

Exhibit No.

 

Description

 

 

 

99.1

 

Earnings Release dated March 15, 2013

 

4


Exhibit 99.1

 

CITI TRENDS ANNOUNCES FOURTH QUARTER AND FISCAL 2012 RESULTS

 

SAVANNAH, GA (March 15, 2013) — Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the fourth quarter and fiscal year ended February 2, 2013.

 

The Company’s 2012 fiscal year contained 53 weeks compared with the traditional 52 weeks in fiscal 2011.  Accordingly, comparisons of total sales for the fourth quarter and full year of fiscal 2012 to the same periods in 2011 are affected by an extra week of sales in 2012.  However, for comparable store sales, the Company is reporting on a comparable weeks basis (e.g. the 14 and 53 weeks ended February 2, 2013 compared with the 14 and 53 weeks ended February 4, 2012).

 

Financial Highlights — 14-week fourth quarter ended February 2, 2013

 

Total sales in the 14-week quarter ended February 2, 2013 decreased 1.5% to $175.7 million compared with $178.4 million in the 13-week quarter ended January 28, 2012.  The extra week contributed $8.8 million to total sales in fiscal 2012.  Fourth quarter comparable store sales decreased 11.8%, comparing the 14 weeks ended February 2, 2013 with the 14 weeks ended February 4, 2012.

 

A net loss of $0.7 million, or $0.05 per diluted share, was recognized in the fourth quarter of 2012 compared with a net loss of $5.3 million, or $0.36 per diluted share, in last year’s fourth quarter.

 

Financial Highlights — 53-week fiscal year ended February 2, 2013

 

Total sales in the 53-week fiscal year ended February 2, 2013 increased 2.2% to $654.7 million compared with $640.8 million in the 52-week fiscal year ended January 28, 2012.  Comparable store sales decreased 5.6%, comparing the 53 weeks ended February 2, 2013 with the 53 weeks ended February 4, 2012.

 

A net loss of $2.2 million, or $0.15 per diluted share, was recognized in fiscal 2012 compared with a net loss of $10.0 million, or $0.69 per diluted share, in fiscal 2011.

 

The Company opened 4 stores, relocated or expanded 4 others, and closed 2 stores in 2012.

 

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 March 22, 2013, by dialing (402) 977-9140 and entering the passcode, 21645977.

 

The live broadcast of Citi Trends’ 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 until March 22, 2013.

 

-MORE-

 



 

During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after year-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 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 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.

 

Contact:

 

Bruce Smith

 

Ed Anderson

 

 

Chief Financial Officer

 

Chairman & Chief Executive Officer

 

 

(912) 443-2075

 

(912) 443-3705

 

2



 

CITI TRENDS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

 

 

 

Fourteen Weeks Ended

 

Thirteen Weeks Ended

 

 

 

February 2, 2013

 

January 28, 2012

 

 

 

(unaudited)

 

(unaudited)

 

Net sales

 

$

175,656

 

$

178,356

 

Cost of sales

 

118,165

 

124,532

 

Gross profit

 

57,491

 

53,824

 

Selling, general and administrative expenses

 

52,678

 

52,206

 

Depreciation and amortization

 

5,797

 

6,569

 

Asset impairment

 

517

 

4,209

 

Loss from operations

 

(1,501

)

(9,160

)

Interest income

 

66

 

63

 

Interest expense

 

(49

)

(52

)

Loss before income taxes

 

(1,484

)

(9,149

)

Income tax benefit

 

(780

)

(3,834

)

Net loss

 

$

(704

)

$

(5,315

)

 

 

 

 

 

 

Basic net loss per common share

 

$

(0.05

)

$

(0.36

)

Diluted net loss per common share

 

$

(0.05

)

$

(0.36

)

 

 

 

 

 

 

Weighted average shares used to compute basic net loss per share

 

14,699

 

14,606

 

Weighted average shares used to compute diluted net loss per share

 

14,699

 

14,606

 

 

 

 

Fifty-Three Weeks Ended

 

Fifty-Two Weeks Ended

 

 

 

February 2, 2013

 

January 28, 2012

 

 

 

(unaudited)

 

(unaudited)

 

Net sales

 

$

654,653

 

$

640,824

 

Cost of sales

 

426,904

 

420,321

 

Gross profit

 

227,749

 

220,503

 

Selling, general and administrative expenses

 

207,411

 

207,025

 

Depreciation and amortization

 

23,950

 

24,958

 

Asset impairment

 

1,177

 

6,514

 

Loss from operations

 

(4,789

)

(17,994

)

Interest income

 

260

 

243

 

Interest expense

 

(212

)

(79

)

Loss before income taxes

 

(4,741

)

(17,830

)

Income tax benefit

 

(2,516

)

(7,816

)

Net loss

 

$

(2,225

)

$

(10,014

)

 

 

 

 

 

 

Basic net loss per common share

 

$

(0.15

)

$

(0.69

)

Diluted net loss per common share

 

$

(0.15

)

$

(0.69

)

 

 

 

 

 

 

Weighted average shares used to compute basic net loss per share

 

14,672

 

14,589

 

Weighted average shares used to compute diluted net loss per share

 

14,672

 

14,589

 

 

3



 

CITI TRENDS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

 

 

 

February 2, 2013

 

January 28, 2012

 

 

 

(unaudited)

 

(unaudited)

 

Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

37,263

 

$

41,986

 

Short-term investment securities

 

12,771

 

902

 

Inventory

 

141,473

 

131,526

 

Other current assets

 

19,285

 

28,961

 

Property and equipment, net

 

70,995

 

90,541

 

Long-term investment securities

 

5,754

 

18,840

 

Other noncurrent assets

 

4,604

 

2,021

 

Total assets

 

$

292,145

 

$

314,777

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity:

 

 

 

 

 

Accounts payable

 

$

62,690

 

$

78,941

 

Accrued liabilities

 

22,564

 

26,074

 

Other current liabilities

 

660

 

603

 

Noncurrent liabilities

 

10,260

 

12,756

 

Total liabilities

 

96,174

 

118,374

 

 

 

 

 

 

 

Total stockholders’ equity

 

195,971

 

196,403

 

Total liabilities and stockholders’ equity

 

$

292,145

 

$

314,777

 

 

4