Citi Trends Announces First Quarter 2018 Results and Declares Quarterly Dividend
Total Sales increased 5.5%; Comparable Store Sales up 2.1%
Financial Highlights – First quarter ended
Total sales in the first quarter ended
Net income in the first quarter of 2018 was
Smith further noted, “Within the quarter, comparable store sales fluctuated somewhat due to an earlier Easter and a later start to spring. However, by the end of the quarter, we were pleased with the results, and we are now excited with our early second quarter sales, as the later spring is driving sales of warm-weather merchandise. As we enter the second quarter, our sales momentum continues, with comparable store sales increasing 10% thus far in the fiscal month of May.”
During the first quarter, the Company opened five new stores, expanded one store and closed one store.
Guidance
The Company reaffirmed its previous guidance of earnings per diluted
share in the range of
Capital Return Program
The Company announced that its Board of Directors has declared a
quarterly dividend of
During the first quarter of 2018, the Company repurchased 86,000 shares
of its common stock at an aggregate cost of
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 Measures
The non-GAAP financial measures 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 the Company’s 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 the Company, are intended to identify
forward-looking statements, although not all forward-looking statements
contain such language.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 quarter-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 the Company’s filings with the
| CITI TRENDS, INC. | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
| (unaudited) | ||||||||||
| (in thousands, except per share data) | ||||||||||
|
Thirteen Weeks Ended |
Thirteen Weeks Ended | |||||||||
| May 5, 2018 | April 29, 2017 | |||||||||
| (unaudited) | (unaudited) | |||||||||
| Net sales | $ | 211,032 | $ | 199,955 | ||||||
| Cost of sales (exclusive of depreciation shown separately below) | (129,413 | ) | (122,390 | ) | ||||||
| Selling, general and administrative expenses | (63,005 | ) | (60,487 | ) | ||||||
| Depreciation | (4,974 | ) | (4,298 | ) | ||||||
| Income from operations | 13,640 | 12,780 | ||||||||
| Interest income | 295 | 186 | ||||||||
| Interest expense | (37 | ) | (37 | ) | ||||||
| Income before income taxes | 13,898 | 12,929 | ||||||||
| Income tax expense | (2,601 | ) | (4,039 | ) | ||||||
| Net income | $ | 11,297 | $ | 8,890 | ||||||
| Basic net income per common share | $ | 0.83 | $ | 0.60 | ||||||
| Diluted net income per common share | $ | 0.83 | $ | 0.60 | ||||||
| Weighted average shares used to compute basic net income per share | 13,578 | 14,719 | ||||||||
| Weighted average shares used to compute diluted net income per share | 13,631 | 14,780 | ||||||||
| CITI TRENDS, INC. | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (unaudited) | ||||||||||
| (in thousands) | ||||||||||
| May 5, 2018 | April 29, 2017 | |||||||||
| (unaudited) | (unaudited) | |||||||||
| Assets: | ||||||||||
| Cash and cash equivalents | $ | 53,978 | $ | 73,037 | ||||||
| Short-term investment securities | 33,504 | 34,189 | ||||||||
| Inventory | 125,331 | 124,533 | ||||||||
| Prepaid and other current assets | 16,372 | 13,853 | ||||||||
| Property and equipment, net | 59,156 | 61,152 | ||||||||
| Long-term investment securities | 21,707 | 25,914 | ||||||||
| Other noncurrent assets | 6,203 | 7,753 | ||||||||
| Total assets | $ | 316,251 | $ | 340,431 | ||||||
| Liabilities and Stockholders' Equity: | ||||||||||
| Accounts payable | $ | 63,814 | $ | 71,465 | ||||||
| Accrued liabilities | 21,971 | 27,530 | ||||||||
| Other current liabilities | 5,530 | 2,147 | ||||||||
| Noncurrent liabilities | 8,325 | 8,260 | ||||||||
| Total liabilities | 99,640 | 109,402 | ||||||||
| Total stockholders' equity | 216,611 | 231,029 | ||||||||
| Total liabilities and stockholders' equity | $ | 316,251 | $ | 340,431 | ||||||
| CITI TRENDS, INC. | |||||||||||||||
| 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 |
|||||||||||||||
| Thirteen Weeks Ended April 29, 2017 | |||||||||||||||
| As Reported | Adjustment (1) | As Adjusted | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Net sales | $ | 199,955 | $ | - | $ | 199,955 | |||||||||
| Cost of sales (exclusive of depreciation shown separately below) | (122,390 | ) | - | (122,390 | ) | ||||||||||
| Selling, general and administrative expenses | (60,487 | ) | 1,590 | (58,897 | ) | ||||||||||
| Depreciation | (4,298 | ) | - | (4,298 | ) | ||||||||||
| Income from operations | 12,780 | 1,590 | 14,370 | ||||||||||||
| Interest income | 186 | - | 186 | ||||||||||||
| Interest expense | (37 | ) | - | (37 | ) | ||||||||||
| Income before income taxes | 12,929 | 1,590 | 14,519 | ||||||||||||
| Income tax expense | (4,039 | ) | (497 | ) | (4,536 | ) | |||||||||
| Net income | $ | 8,890 | $ | 1,093 | $ | 9,983 | |||||||||
| Basic net income per common share | $ | 0.60 | $ | 0.68 | |||||||||||
| Diluted net income per common share | $ | 0.60 | $ | 0.68 | |||||||||||
| Weighted average shares used to compute basic net income per share | 14,719 | 14,719 | |||||||||||||
| Weighted average shares used to compute diluted net income per share | 14,780 | 14,780 | |||||||||||||
| (1) Proxy contest expenses and related tax effects | |||||||||||||||
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Source:
Citi Trends, Inc.
Bruce Smith, 912-443-2075
President and
Chief Executive Officer