Attached files
| file | filename |
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| 8-K - FORM 8-K - STEIN MART INC | d274715d8k.htm |
Exhibit 99.1
1200 RIVERPLACE BOULEVARD — JACKSONVILLE, FL 32207-1809 — (904) 346-1500
| December 23, 2011 | For more information: | |||
| Gregory W. Kleffner | ||||
| FOR IMMEDIATE RELEASE | EVP, Chief Financial Officer | |||
| (904) 346-1500 | ||||
| investorrelations@steinmart.com |
STEIN MART, INC. REPORTS FINAL THIRD QUARTER AND YEAR-TO-DATE 2011 FINANCIAL RESULTS
JACKSONVILLE, FL – Stein Mart, Inc. (Nasdaq: SMRT) today announced final results for its third quarter and first nine months ended October 29, 2011.
As the result of information technology systems issues discussed in the press release dated December 8, 2011, markdowns were understated in the earnings reported on November 17, 2011. The additional markdowns reduce gross margin and inventory by $2.2 million from what was reported previously for the third quarter. Understated markdowns in the second quarter were not material. The after tax impact of the additional third quarter markdowns increases the net loss previously released by $1.3 million or $0.03 per diluted share. Attached are revised financial statements which reflect the additional markdowns. Full financial statements and disclosures were filed yesterday on Form 10-Q, which was delayed until the final results were confirmed. As a result of the filing of Form 10-Q, the Company will be in full compliance with NASDAQ’s listing requirements.
Revised Results
Revised net loss for the quarter was $3.1 million or $0.07 per diluted share. For the first nine months, revised net income was $14.1 million or $0.31 per diluted share.
Sales were not impacted by this revision. Gross profit for the quarter, revised for the higher markdowns, was $59.3 million or 22.9 percent of net sales. For the first nine months of 2011 revised gross profit was $214.5 million or 25.8 percent of net sales.
Revised Results as Adjusted
Results for the first nine months of 2011 include a first quarter pre-tax gain of $2.0 million ($1.2 million after tax or $0.03 per diluted share) to correct an error in the Company’s credit card reward liability (recorded in other income). Excluding this gain, revised net income as adjusted was $12.9 million and earnings per diluted share were $0.28.
Investor Presentation
Stein Mart’s updated third quarter 2011 investor presentation has been posted to the investor relations portion of the Company’s website at http://ir.steinmart.com.
About Stein Mart
Stein Mart stores offer the fashion merchandise, service and presentation of a better department or specialty store, at prices competitive with off-price retail chains. Currently with locations from California to Massachusetts, Stein Mart’s focused assortment of merchandise features current season, moderate to better fashion apparel for women and men, as well as accessories, shoes and home fashions.
SAFE HARBOR STATEMENT>>>>>>>Except for historical information contained herein, the statements in this release may be forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company does not assume any obligation to update or revise any forward-looking statements even if experience or future changes make it clear that projected results expressed or implied will not be realized. Forward-looking statements involve known and unknown risks and uncertainties that may cause Stein Mart’s actual results in future periods to differ materially from forecasted or expected results. Those risks include, without limitation:
| • | continued consumer sensitivity to economic conditions |
| • | on-going competition from other retailers |
| • | changing preferences in apparel |
| • | the effectiveness of advertising, marketing and promotional strategies |
| • | ability to negotiate acceptable lease terms with current landlords |
| • | ability to successfully implement strategies to exit under-performing stores |
| • | unanticipated weather conditions and unseasonable weather |
| • | adequate sources of merchandise at acceptable prices |
| • | the Company’s ability to attract and retain qualified employees |
| • | disruption of the Company’s distribution system |
| • | acts of terrorism |
| • | other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission. |
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Additional information about Stein Mart, Inc. can be found at www.steinmart.com
Stein Mart, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except for share data)
| October 29, 2011 | January 29, 2011 | October 30, 2010 | ||||||||||
| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ | 102,495 | $ | 80,171 | $ | 80,546 | ||||||
| Inventories |
274,538 | 232,295 | 280,986 | |||||||||
| Prepaid expenses and other current assets |
38,681 | 27,968 | 25,556 | |||||||||
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| Total current assets |
415,714 | 340,434 | 387,088 | |||||||||
| Property and equipment, net |
100,564 | 79,964 | 77,313 | |||||||||
| Other assets |
14,976 | 16,046 | 14,614 | |||||||||
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| Total assets |
$ | 531,254 | $ | 436,444 | $ | 479,015 | ||||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ | 168,378 | $ | 95,545 | $ | 137,573 | ||||||
| Accrued expenses and other current liabilities |
74,641 | 72,587 | 73,069 | |||||||||
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| Total current liabilities |
243,019 | 168,132 | 210,642 | |||||||||
| Other liabilities |
32,305 | 21,061 | 19,691 | |||||||||
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| Total liabilities |
275,324 | 189,193 | 230,333 | |||||||||
| COMMITMENTS AND CONTINGENCIES |
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| Shareholders’ equity: |
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| Preferred stock - $.01 par value; 1,000,000 shares authorized; no shares issued or outstanding |
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| Common stock - $.01 par value; 100,000,000 shares authorized; 43,654,608, 44,396,504 and 43,460,452 shares issued and outstanding, respectively |
437 | 444 | 435 | |||||||||
| Additional paid-in capital |
15,702 | 21,126 | 19,041 | |||||||||
| Retained earnings |
239,335 | 225,225 | 228,637 | |||||||||
| Accumulated other comprehensive income |
456 | 456 | 569 | |||||||||
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| Total shareholders’ equity |
255,930 | 247,251 | 248,682 | |||||||||
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| Total liabilities and shareholders’ equity |
$ | 531,254 | $ | 436,444 | $ | 479,015 | ||||||
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Stein Mart, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
| 13 Weeks Ended October 29, 2011 |
13 Weeks Ended October 30, 2010 |
39 Weeks Ended October 29, 2011 |
39 Weeks Ended October 30, 2010 |
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| Net sales |
$ | 258,520 | $ | 267,887 | $ | 832,233 | $ | 844,840 | ||||||||
| Cost of merchandise sold |
199,264 | 199,862 | 617,686 | 620,208 | ||||||||||||
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| Gross profit |
59,256 | 68,025 | 214,547 | 224,632 | ||||||||||||
| Selling, general and administrative expenses |
71,291 | 70,165 | 211,581 | 211,852 | ||||||||||||
| Other income, net |
6,602 | 4,699 | 20,059 | 24,434 | ||||||||||||
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| Income (loss) from operations |
(5,433 | ) | 2,559 | 23,025 | 37,214 | |||||||||||
| Interest income, net |
16 | 13 | 23 | 37 | ||||||||||||
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| Income (loss) before income taxes |
(5,417 | ) | 2,572 | 23,048 | 37,251 | |||||||||||
| Income tax benefit (provision) |
2,311 | 1,723 | (8,938 | ) | (7,319 | ) | ||||||||||
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| Net (loss) income |
$ | (3,106 | ) | $ | 4,295 | $ | 14,110 | $ | 29,932 | |||||||
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| Net (loss) income per share: |
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| Basic |
$ | (0.07 | ) | $ | 0.10 | $ | 0.31 | $ | 0.68 | |||||||
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| Diluted |
$ | (0.07 | ) | $ | 0.10 | $ | 0.31 | $ | 0.67 | |||||||
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| Weighted-average shares outstanding: |
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| Basic |
43,248 | 42,677 | 43,731 | 42,600 | ||||||||||||
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| Diluted |
43,248 | 43,714 | 44,038 | 43,509 | ||||||||||||
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Stein Mart, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
| 39 Weeks Ended October 29, 2011 |
39 Weeks Ended October 30, 2010 |
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| Cash flows from operating activities: |
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| Net income |
$ | 14,110 | $ | 29,932 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
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| Depreciation and amortization |
13,714 | 12,937 | ||||||
| Share-based compensation |
2,544 | 2,281 | ||||||
| Store closing charges |
327 | 286 | ||||||
| Impairment of property and other assets |
— | 575 | ||||||
| Deferred income taxes |
11,652 | 6,570 | ||||||
| Change in valuation allowance for deferred tax assets |
— | (6,570 | ) | |||||
| Tax (deficiency) benefit from equity issuances |
(233 | ) | 2,077 | |||||
| Excess tax benefits from share-based compensation |
(303 | ) | (2,032 | ) | ||||
| Changes in assets and liabilities: |
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| Inventories |
(42,243 | ) | (62,861 | ) | ||||
| Prepaid expenses and other current assets |
(13,339 | ) | (4,266 | ) | ||||
| Other assets |
(1,222 | ) | (498 | ) | ||||
| Accounts payable |
72,833 | 57,255 | ||||||
| Accrued expenses and other current liabilities |
(2,878 | ) | (13,504 | ) | ||||
| Other liabilities |
1,223 | (1,348 | ) | |||||
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| Net cash provided by operating activities |
56,185 | 20,834 | ||||||
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| Cash flows from investing activities: |
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| Capital expenditures |
(24,366 | ) | (22,007 | ) | ||||
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| Net cash used in investing activities |
(24,366 | ) | (22,007 | ) | ||||
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| Cash flows from financing activities: |
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| Capital lease payments |
(2,056 | ) | — | |||||
| Excess tax benefits from share-based compensation |
303 | 2,032 | ||||||
| Proceeds from exercise of stock options and other |
2,500 | 834 | ||||||
| Repurchase of common stock |
(10,242 | ) | (2,122 | ) | ||||
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| Net cash (used in) provided by financing activities |
(9,495 | ) | 744 | |||||
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| Net increase (decrease) in cash and cash equivalents |
22,324 | (429 | ) | |||||
| Cash and cash equivalents at beginning of year |
80,171 | 80,975 | ||||||
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| Cash and cash equivalents at end of period |
$ | 102,495 | $ | 80,546 | ||||
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