Attached files
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| 8-K - 8-K - Citi Trends Inc | a10-16048_18k.htm |
Exhibit 99.1
CITI TRENDS ANNOUNCES SECOND QUARTER 2010 RESULTS
Second quarter net loss of $567,000 compared with net loss of $69,000 last year
Second quarter sales increased 15.6%; comparable store sales decreased 0.6%
Net income in the first half of 2010 increased 51.2% to $11.9 million
SAVANNAH, GA (August 18, 2010) — Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the second quarter of fiscal 2010.
Financial Highlights — Second quarter ended July 31, 2010
Total sales in the second quarter ended July 31, 2010 increased 15.6% to $129.0 million compared with $111.6 million in the second quarter ended August 1, 2009. Comparable store sales decreased 0.6% in the second quarter. A net loss of $567,000 was recognized in this year’s second quarter compared with a net loss of $69,000 in the second quarter of 2009. Last year’s second quarter included an unrealized pretax gain of $671,000 related to auction rate securities held at that time. Loss per diluted share was $(0.04) in the second quarter of 2010 compared with loss per diluted share of $(0.00) in the second quarter of 2009.
Store activity in the second quarter of 2010 included five new openings and two expansions, resulting in a total store count of 425 at the end of the quarter.
Financial Highlights — First half ended July 31, 2010
Total sales in the first half of fiscal 2010 increased 21.9% to $310.4 million compared with $254.7 million in the first half of fiscal 2009. Comparable store sales increased 5.1% in the first half of this year. Net income increased 51.2% to $11.9 million compared with $7.9 million in last year’s first half. Earnings per diluted share were $0.82 in the first half of 2010 compared with $0.54 in 2009’s first half.
Fiscal 2010 Outlook
The Company estimates that 2010 earnings will be in a range of $1.60 to $1.70 per diluted share which includes an anticipated comparable store sales increase of flat to 2% in the last half of 2010. For the full year, the Company expects to increase selling square footage by at least 15%. The effective tax rate for 2010 is estimated to approximate 35%.
The Company reminds investors of the complexity of accurately assessing future results given the difficulty in predicting fashion trends, consumer preferences and general economic conditions and the impact of other business variables. See “Forward-Looking Statements” below for more information regarding these uncertainties.
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) 231-2900. A replay of the conference call will be available until August 25, 2010, by dialing (402) 977-9140 and entering the passcode, 21463754. 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 through August 25, 2010.
During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends. 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. After opening 4 stores thus far in August 2010, the Company currently operates 429 stores located in 25 states in the Southeast, Mid-Atlantic and Midwest regions and the states of Texas and California. 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. 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.
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Contact: |
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Bruce Smith |
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David Alexander |
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Chief Financial Officer |
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President and Chief Executive Officer |
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(912) 443-2075 |
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(912) 443-3924 |
CITI TRENDS, INC.
CONDENSED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
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Thirteen Weeks Ended |
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Thirteen Weeks Ended |
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July 31, 2010 |
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August 1, 2009 |
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(unaudited) |
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(unaudited) |
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Net sales |
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$ |
129,042 |
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$ |
111,605 |
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Cost of sales |
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80,762 |
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69,011 |
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Gross profit |
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48,280 |
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42,594 |
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Selling, general and administrative expenses |
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44,426 |
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38,994 |
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Depreciation and amortization |
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4,769 |
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4,455 |
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Loss from operations |
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(915 |
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(855 |
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Interest income |
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44 |
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105 |
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Interest expense |
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(5 |
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(28 |
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Unrealized gain on investment securities |
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— |
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671 |
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Loss before income tax benefit |
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(876 |
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(107 |
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Income tax benefit |
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(309 |
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(38 |
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Net loss |
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$ |
(567 |
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$ |
(69 |
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Basic net loss per common share |
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$ |
(0.04 |
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$ |
(0.00 |
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Diluted net loss per common share |
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$ |
(0.04 |
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$ |
(0.00 |
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Net loss attributable to common shares (1): |
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Basic |
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$ |
(567 |
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$ |
(69 |
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Diluted |
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$ |
(567 |
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$ |
(69 |
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Weighted average shares used to compute basic net loss per share |
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14,515 |
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14,365 |
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Weighted average shares used to compute diluted net loss per share |
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14,515 |
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14,365 |
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Twenty-Six Weeks Ended |
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Twenty-Six Weeks Ended |
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July 31, 2010 |
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August 1, 2009 |
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(unaudited) |
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(unaudited) |
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Net sales |
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$ |
310,448 |
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$ |
254,702 |
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Cost of sales |
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189,778 |
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154,920 |
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Gross profit |
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120,670 |
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99,782 |
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Selling, general and administrative expenses |
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92,876 |
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79,127 |
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Depreciation and amortization |
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9,519 |
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8,828 |
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Income from operations |
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18,275 |
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11,827 |
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Interest income |
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99 |
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244 |
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Interest expense |
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(9 |
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(69 |
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Unrealized loss on investment securities |
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— |
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(57 |
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Income before income tax expense |
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18,365 |
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11,945 |
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Income tax expense |
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6,483 |
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4,085 |
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Net income |
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$ |
11,882 |
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$ |
7,860 |
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Basic net income per common share |
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$ |
0.82 |
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$ |
0.54 |
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Diluted net income per common share |
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$ |
0.82 |
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$ |
0.54 |
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Net income attributable to common shares (1): |
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Basic |
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$ |
11,882 |
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$ |
7,700 |
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Diluted |
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$ |
11,882 |
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$ |
7,700 |
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Weighted average shares used to compute basic net income per share |
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14,486 |
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14,342 |
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Weighted average shares used to compute diluted net income per share |
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14,510 |
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14,370 |
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(1) Net of income allocated to nonvested restricted stockholders
CITI TRENDS, INC.
CONDENSED BALANCE SHEETS (unaudited)
(in thousands)
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July 31, 2010 |
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August 1, 2009 |
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(unaudited) |
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(unaudited) |
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Assets: |
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Cash and cash equivalents |
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$ |
84,636 |
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$ |
36,361 |
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Short-term investment securities |
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3,148 |
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42,468 |
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Inventory |
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107,556 |
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88,829 |
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Other current assets |
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16,742 |
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13,199 |
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Property and equipment, net |
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73,434 |
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59,741 |
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Other noncurrent assets |
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4,849 |
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4,744 |
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Total assets |
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$ |
290,365 |
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$ |
245,342 |
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Liabilities and Stockholders’ Equity: |
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Accounts payable |
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$ |
58,942 |
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$ |
46,129 |
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Accrued liabilities |
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24,685 |
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20,336 |
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Other current liabilities |
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1,909 |
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2,370 |
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Noncurrent liabilities |
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9,253 |
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8,836 |
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Total liabilities |
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94,789 |
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77,671 |
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Total stockholders’ equity |
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195,576 |
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167,671 |
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Total liabilities and stockholders’ equity |
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$ |
290,365 |
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$ |
245,342 |
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