Attached files
| file | filename |
|---|---|
| 8-K - LIVE FILING - KIRKLAND'S, INC | htm_49472.htm |
| EX-99.2 - EX-99.2 - KIRKLAND'S, INC | exhibit2.htm |
News Release
| Contact: | W. Michael Madden Senior Vice President & CFO (615) 872-4800 |
Tripp Sullivan Corporate Communications, Inc. (615) 324-7335 |
KIRKLAND’S REPORTS FOURTH QUARTER AND FISCAL 2013 RESULTS
NASHVILLE, Tenn. (March 13, 2014) — Kirkland’s, Inc. (NASDAQ: KIRK) today reported financial results for the 13-week and 52-week periods ended February 1, 2014.
Net sales for the 13 weeks ended February 1, 2014, decreased 4.2% to $156.1 million compared with $162.9 million for the 14 weeks ended February 2, 2013. On a 13-week basis, comparable store sales for the fourth quarter of fiscal 2013, including e-commerce sales, were flat compared with a decrease of 2.6% in the prior-year quarter. Kirkland’s opened 8 stores and closed 7 during the fourth quarter, bringing the total number of stores to 324 at quarter end.
Net sales for the 52 weeks ended February 1, 2014, increased 2.7% to $460.6 million compared with $448.4 million for the 53 weeks ended February 2, 2013. On a 52-week basis, comparable store sales for fiscal 2013, including e-commerce sales, increased 0.5% compared with a 3.0% decrease in fiscal 2012. The Company opened 24 stores and closed 23 during fiscal 2013.
The Company reported net income of $12.3 million, or $0.69 per diluted share, for the 13 weeks ended February 1, 2014, compared with net income of $14.3 million, or $0.82 per diluted share, for the 14 weeks ended February 2, 2013.
For the 52 weeks ended February 1, 2014, the Company reported net income of $14.5 million, or $0.82 per diluted share, compared with net income of $13.8 million, or $0.77 per diluted share, for the 53 weeks ended February 2, 2013.
Robert Alderson, Kirkland’s President and Chief Executive Officer, said, “Our results for the fourth quarter were slightly better than our adjusted guidance, and we finished fiscal 2013 in a solid position with over $89 million in cash. Despite continued adverse weather events throughout February and into March, the early first quarter sales and margin trends have been positive and encouraging. As we look to fiscal 2014, we remain excited about the investments in store growth, merchandise systems and process improvement, greater e-commerce capabilities and focused branding initiatives that we expect to drive improved traffic, sales and earnings results.”
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2501 McGavock Pike, Suite 1000 ¦ Nashville, Tennessee 37214 ¦ (615) 872-4800
KIRK Reports Fourth Quarter and Fiscal 2013 Results
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March 13, 2014
Fiscal 2014 Outlook
| Store Growth: | For the 52-week period ending January 31, 2015 (“fiscal 2014”), the Company expects to achieve approximately 10% square footage growth with 35 to 40 new store openings and 10 to 15 store closings. New store openings will be weighted more toward the second half of the year, and store closings will be weighted more toward the first half of the year. |
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| Sales: | Total sales for fiscal 2014 are expected to increase approximately 8% to 10% compared with fiscal 2013. This level of sales performance would imply a comparable store sales increase of approximately 3% to 4% for fiscal 2014. |
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| Margin & Expenses: | The Company expects year-over-year improvement in merchandise and gross profit margins that is expected to result from a lower markdown rate, lower inbound freight costs, and sales leverage. Operating expenses are expected to increase on a dollar basis due to the growth in stores and incremental investments in corporate headcount. The Company is also anticipating approximately $0.03 to $0.04 per diluted share in additional costs associated with its second half lease expiration and transition to replacement corporate headquarters space. |
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| Earnings: | Based on the above assumptions, the Company expects fiscal 2014 earnings per share to be in the range of $0.90 to $1.00. The Company expects its full year tax rate to be approximately 39%. |
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| Cash Flow: | Capital expenditures in fiscal 2014 are estimated to range between $33 million and $36 million. Based on the above assumptions, the Company expects to generate positive cash flow in fiscal 2014. |
First Quarter Fiscal 2014 Outlook
The Company issued guidance for the first quarter ending May 3, 2014, of net income of $0.09 to
$0.12 per diluted share. Net sales are expected to be in the range of $105 million to $106 million
with a comparable store sales increase in the range of 2% to 3%. The Company expects to open
approximately 6 stores and close approximately 7 stores during the quarter.
Investor Conference Call and Web Simulcast
Kirkland’s will issue its earnings release for the fourth quarter before the market opens on
Thursday, March 13, 2014, and will host a conference call on the same day at 11:00 a.m. ET. The
number to call for the interactive teleconference is (212) 231-2918. A replay of the conference
call will be available through Thursday, March 20, 2014, by dialing (402) 977-9140 and entering the
confirmation number, 21706372.
A live broadcast of Kirkland’s quarterly conference call will be available online at the Company’s website www.kirklands.com under Investor Relations or http://www.videonewswire.com/event.asp?id=97960 on March 13, 2014, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for one year.
About Kirkland’s, Inc.
| Kirkland’s, Inc. was founded in 1966 and is a specialty retailer of home décor in the United States. Although originally focused in the Southeast, the Company has grown beyond that region and currently operates 321 stores in 35 states. The Company’s stores present a broad selection of distinctive merchandise, including framed art, mirrors, candles, lamps, picture frames, accent rugs, garden |
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KIRK Reports Fourth Quarter and Fiscal 2013 Results
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March 13, 2014
accessories and artificial floral products. The Company’s stores also offer an extensive assortment of gifts, as well as seasonal merchandise. More information can be found at www.kirklands.com.
Forward-Looking Statements
Except for historical information contained herein, the statements in this release are
forward-looking and made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and
uncertainties, which may cause Kirkland’s actual results to differ materially from forecasted
results. Those risks and uncertainties include, among other things, the competitive environment in
the home décor industry in general and in Kirkland’s specific market areas, inflation, product
availability and growth opportunities, seasonal fluctuations, and economic conditions in general.
Those and other risks are more fully described in Kirkland’s filings with the Securities and
Exchange Commission, including the Company’s Annual Report on Form 10-K filed on April 18, 2013.
Kirkland’s disclaims any obligation to update any such factors or to publicly announce results of
any revisions to any of the forward-looking statements contained herein to reflect future events or
developments.
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KIRK Reports Fourth Quarter and Fiscal 2013 Results
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March 13, 2014
KIRKLAND’S, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In thousands, except per share data)
| 13-Week | 14-Week | |||||||
| Period Ended | Period Ended | |||||||
| February 1, | February 2, | |||||||
| 2014 | 2013 | |||||||
Net sales |
$ | 156,073 | $ | 162,885 | ||||
Cost of sales |
91,441 | 96,751 | ||||||
Gross profit |
64,632 | 66,134 | ||||||
Operating expenses: |
||||||||
Operating expenses |
39,939 | 39,245 | ||||||
Depreciation |
4,157 | 3,833 | ||||||
Operating income |
20,536 | 23,056 | ||||||
Other income, net |
4 | 4 | ||||||
Income before income taxes |
20,540 | 23,060 | ||||||
Income tax expense |
8,214 | 8,807 | ||||||
Net income |
$ | 12,326 | $ | 14,253 | ||||
Earnings per share: |
||||||||
Basic |
$ | 0.71 | $ | 0.83 | ||||
Diluted |
$ | 0.69 | $ | 0.82 | ||||
Shares used to calculate earnings per share: |
||||||||
Basic |
17,297 | 17,076 | ||||||
Diluted |
17,903 | 17,440 | ||||||
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KIRK Reports Fourth Quarter Fiscal 2013 Results
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March 13, 2014
KIRKLAND’S, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In thousands, except per share data)
| 52-Week | 53-Week | |||||||
| Period Ended | Period Ended | |||||||
| February 1, | February 2, | |||||||
| 2014 | 2013 | |||||||
Net sales |
$ | 460,563 | $ | 448,365 | ||||
Cost of sales |
279,747 | 279,749 | ||||||
Gross profit |
180,816 | 168,616 | ||||||
Operating expenses: |
||||||||
Operating expenses |
140,877 | 133,913 | ||||||
Depreciation |
15,947 | 13,175 | ||||||
Operating income |
23,992 | 21,528 | ||||||
Other expense, net |
(33 | ) | (34 | ) | ||||
Income before income taxes |
23,959 | 21,494 | ||||||
Income tax expense |
9,429 | 7,699 | ||||||
Net income |
$ | 14,530 | $ | 13,795 | ||||
Earnings per share: |
||||||||
Basic |
$ | 0.84 | $ | 0.79 | ||||
Diluted |
$ | 0.82 | $ | 0.77 | ||||
Shares used to calculate earnings per share: |
||||||||
Basic |
17,207 | 17,463 | ||||||
Diluted |
17,685 | 17,856 | ||||||
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KIRK Reports Fourth Quarter Fiscal 2013 Results
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March 13, 2014
KIRKLAND’S, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
| February 1, 2014 | February 2, 2013 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 89,050 | $ | 67,797 | ||||
Inventories, net |
52,637 | 49,577 | ||||||
Income taxes receivable |
446 | 832 | ||||||
Deferred income taxes |
2,777 | 1,602 | ||||||
Other current assets |
8,371 | 9,370 | ||||||
Total current assets |
153,281 | 129,178 | ||||||
Property and equipment, net |
80,329 | 78,499 | ||||||
Other assets |
1,838 | 1,559 | ||||||
Total assets |
$ | 235,448 | $ | 209,236 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 23,102 | $ | 21,642 | ||||
Income taxes payable |
5,875 | 1,352 | ||||||
Other current liabilities |
23,670 | 21,009 | ||||||
Total current liabilities |
52,647 | 44,003 | ||||||
Non-current deferred income taxes |
3,337 | 3,128 | ||||||
Deferred rent and other long-term liabilities |
44,235 | 44,230 | ||||||
Total liabilities |
100,219 | 91,361 | ||||||
Net shareholders’ equity |
135,229 | 117,875 | ||||||
Total liabilities and shareholders’ equity |
$ | 235,448 | $ | 209,236 | ||||
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KIRK Reports Fourth Quarter Fiscal 2013 Results
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March 13, 2014
KIRKLAND’S, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
| 52-Week | 52-Week | |||||||
| Period Ended | Period Ended | |||||||
| February 1, 2014 | February 2, 2013 | |||||||
Net cash provided by (used in): |
||||||||
Operating activities |
$ | 39,213 | $ | 32,347 | ||||
Investing activities |
(17,954 | ) | (31,373 | ) | ||||
Financing activities |
(6 | ) | (16,300 | ) | ||||
Cash and cash equivalents: |
||||||||
Net increase (decrease) |
21,253 | (15,326 | ) | |||||
Beginning of the period |
67,797 | 83,123 | ||||||
End of the period |
$ | 89,050 | $ | 67,797 | ||||
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