STAGE STORES INC - FORM 8-K - EX-99 - EXHIBIT 99 - May 20, 2015

Attached files

file filename
8-K - 8-K - STAGE STORES INCform8-k_q1earnings.htm


Exhibit 99

NEWS RELEASE

CONTACT:                    
Randi Sonenshein                    
Senior Vice President, Finance and Strategy            
713-346-2430                
(rsonenshein@stagestores.com)

                    
Stage Stores Reports 29% Improvement in First Quarter Results

            
HOUSTON, TX, May 19, 2015 -- Stage Stores, Inc. (NYSE: SSI) today reported financial results for the first quarter ended May 2, 2015.

First Quarter Highlights
•
Loss per share improved 29% to $0.27 this year from $0.38 last year.
•
180 bps improvement in merchandise margin.
•
Comparable sales decreased 1.1%, due in part to a Mother’s Day marketing shift.
•
Direct-to-consumer sales increased 31%.

“Despite difficult market conditions and a marketing calendar shift, we are pleased with the 29% earnings improvement over last year,” said Michael Glazer, President and Chief Executive Officer. “We delivered expanded merchandise margins and grew our direct-to-consumer business by 31%, while controlling our expenses. We are thrilled with our record Mother’s Day sales, which moved our year-to-date comp sales into positive territory after 14 weeks. As we look ahead, we remain confident that we will deliver our expected sales and earnings growth in 2015.”

2015 Guidance
The Company reiterated prior guidance. Comparable sales are expected to be in a range of flat to up 2%. Earnings per diluted share are expected to be in a range of $1.20 to $1.28. Weighted average diluted shares for the year are expected to be 32.7 million.

Conference Call / Webcast Information
The Company will hold a conference call today at 8:30 a.m. Eastern Time to discuss its first quarter results. Interested parties can participate in the Company’s conference call by dialing 844-368-2238. Alternatively, interested parties may listen to a live webcast of the conference call through the Investor Relations section of the Company’s website (www.stagestoresinc.com) under the “Webcasts” caption. A replay of the conference call will be available online until midnight on Friday, May 29, 2015.





About Stage Stores
Stage Stores, Inc. operates 853 specialty department stores in 40 states and direct-to-consumer channel under the BEALLS, GOODY'S, PALAIS ROYAL, PEEBLES and STAGE nameplates. The Company’s stores, predominantly located in small towns and communities, and direct-to-consumer business, offer a moderately priced, broad selection of trend-right, brand name apparel, accessories, cosmetics, footwear and home goods for the entire family. The Company’s direct-to-consumer channel includes its e-commerce website and Send program. Its e-commerce website features assortments of merchandise similar to that found in its stores, as well as products available exclusively online. The Send program allows customers in the stores to have merchandise shipped directly to their homes if the merchandise is not available in the local store. For more information about Stage Stores, visit the Company’s website at www.stagestoresinc.com.

Caution Concerning Forward-Looking Statements
Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and such statements are intended to qualify for the protection of the safe harbor provided by the Act. The words “anticipate,” “estimate,” “expect,” “objective,” “goal,” “project,” “intend,” “plan,” “believe,” “will,” “should,” “may,” “target,” “forecast,” “guidance,” “outlook” and similar expressions generally identify forward-looking statements. Similarly, descriptions of the Company’s objectives, strategies, plans, goals or targets are also forward-looking statements. Forward-looking statements relate to the expectations of management as to future occurrences and trends, including statements expressing optimism or pessimism about future operating results or events and projected sales, earnings, capital expenditures and business strategy. Forward-looking statements are based upon a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Forward-looking statements are based upon management’s then-current views and assumptions regarding future events and operating performance. Although management believes the expectations expressed in forward-looking statements are based on reasonable assumptions within the bounds of its knowledge, forward-looking statements involve risks, uncertainties and other factors which may materially affect the Company’s business, financial condition, results of operations or liquidity.

Forward-looking statements are not guarantees of future performance and actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including, but not limited to, economic conditions, cost and availability of goods, inability to successfully execute strategic initiatives, competitive pressures, economic pressures on the Company and its customers, freight costs, the risks discussed in the Risk Factors section of the Company’s most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”), and other factors discussed from time to time in the Company’s other SEC filings. This release should be read in conjunction with such filings, and you should consider all of such risks, uncertainties and other factors carefully in evaluating forward-looking statements.

You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. The Company undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures the Company makes on related subjects in its public announcements and SEC filings.


(Tables to Follow)






Stage Stores, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)

 
Three Months Ended
 
May 2, 2015
 
May 3, 2014
 
Amount
 
% to Sales (a)
 
Amount
 
% to Sales (a)
 

 

 

 

Net sales
$
369,313

 
100.0
 %
 
$
372,040

 
100.0
 %
Cost of sales and related buying, occupancy and distribution expenses
288,384

 
78.1
 %
 
294,099

 
79.1
 %
Gross profit
80,929

 
21.9
 %
 
77,941

 
20.9
 %
Selling, general and administrative expenses
94,171

 
25.5
 %
 
96,054

 
25.8
 %
Store opening costs
304

 
0.1
 %
 
808

 
0.2
 %
Interest expense
579

 
0.2
 %
 
724

 
0.2
 %
Loss from continuing operations before income tax
(14,125
)
 
(3.8
)%
 
(19,645
)
 
(5.3
)%
Income tax benefit
(5,488
)
 
(1.5
)%
 
(7,599
)
 
(2.0
)%
Loss from continuing operations
(8,637
)
 
(2.3
)%
 
(12,046
)
 
(3.2
)%
Loss from discontinued operations, net of tax benefit of $4,257
—

 
—
 %
 
(6,748
)
 
(1.8
)%
Net loss
$
(8,637
)
 
(2.3
)%
 
$
(18,794
)
 
(5.1
)%
 
 
 
 
 
 
 
 
Basic loss per share data:
 

 
 

 
 

 
 

Continuing operations
$
(0.27
)
 
 
 
$
(0.38
)
 
 
Discontinued operations
—

 
 
 
(0.22
)
 
 
Basic loss per share
$
(0.27
)
 
 
 
$
(0.60
)
 
 
Basic weighted average shares outstanding
31,750

 
 
 
31,492

 
 
 
 
 
 
 
 
 
 
Diluted loss per share data:
 
 
 
 
 
 
 
Continuing operations
$
(0.27
)
 
 
 
$
(0.38
)
 
 
Discontinued operations
—

 
 
 
(0.22
)
 
 
Diluted loss per share
$
(0.27
)
 
 
 
$
(0.60
)
 
 
Diluted weighted average shares outstanding
31,750

 
 
 
31,492

 
 
 
 
 
 
 
 
 
 
(a) Percentages may not foot due to rounding.
 
 
 
 
 
 







Stage Stores, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par value)
(Unaudited)

 
May 2, 2015
 
January 31, 2015
ASSETS

 

Cash and cash equivalents
$
24,606

 
$
17,165

Merchandise inventories, net
486,705

 
441,452

Prepaid expenses and other current assets
40,724

 
45,444

Total current assets
552,035

 
504,061

 


 


Property, equipment and leasehold improvements, net
292,174

 
285,450

Intangible asset
14,910

 
14,910

Other non-current assets, net
22,167

 
20,256

Total assets
$
881,286

 
$
824,677

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 

 
 

Accounts payable
$
154,903

 
$
121,778

Accrued expenses and other current liabilities
70,840

 
83,004

Total current liabilities
225,743

 
204,782

 


 


Long-term debt obligations
93,392

 
45,673

Other long-term liabilities
98,666

 
98,292

Total liabilities
417,801

 
348,747

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
Common stock, par value $0.01, 100,000 shares authorized, 31,946 and 31,632 shares issued, respectively
319

 
316

Additional paid-in capital
396,060

 
395,395

Less treasury stock - at cost, 0 and 0 shares, respectively
(697
)
 
(600
)
Accumulated other comprehensive loss
(6,763
)
 
(6,874
)
Retained earnings
74,566

 
87,693

Total stockholders' equity
463,485

 
475,930

Total liabilities and stockholders' equity
$
881,286

 
$
824,677

 
 
 
 










Stage Stores, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
 
Three Months Ended
 
May 2, 2015
 
May 3, 2014
Cash flows from operating activities:

 

Net loss
$
(8,637
)
 
$
(18,794
)
Adjustments to reconcile net loss to net cash used in operating activities:


 


Depreciation, amortization and impairment of long-lived assets
16,916

 
15,218

Loss on retirements of property, equipment and leasehold improvements
148

 
677

Deferred income taxes
(149
)
 
(420
)
Tax benefit from stock-based compensation
692

 
280

Stock-based compensation expense
2,709

 
1,626

Amortization of debt issuance costs
55

 
75

Excess tax benefits from stock-based compensation
(910
)
 
(815
)
Deferred compensation obligation
97

 
38

Amortization of employee benefit related costs
179

 
100

Construction allowances from landlords
1,072

 
2,425

Changes in operating assets and liabilities:
 
 
 
Increase in merchandise inventories
(45,253
)
 
(15,140
)
Decrease (increase) in other assets
2,738

 
(8,548
)
Increase in accounts payable and other liabilities
13,911

 
17,156

Net cash used in operating activities
(16,432
)
 
(6,122
)
 
 
 
 
Cash flows from investing activities:
 

 
 

Additions to property, equipment and leasehold improvements
(13,295
)
 
(14,714
)
Proceeds from disposal of assets
14

 
1,397

Net cash used in investing activities
(13,281
)
 
(13,317
)
 
 
 
 
Cash flows from financing activities:
 

 
 

Proceeds from revolving credit facility borrowings
116,311

 
116,340

Payments of revolving credit facility borrowings
(71,665
)
 
(86,020
)
Payments of long-term debt obligations
(985
)
 
(1,200
)
Payments for stock related compensation
(3,470
)
 
(1,955
)
Proceeds from exercise of stock awards
543

 
5,010

Excess tax benefits from stock-based compensation
910

 
815

Cash dividends paid
(4,490
)
 
(3,952
)
Net cash provided by financing activities
37,154

 
29,038

Net increase in cash and cash equivalents
7,441

 
9,599

 
 
 
 
Cash and cash equivalents:
 

 
 

Beginning of period
17,165

 
14,762

End of period
$
24,606

 
$
24,361





Stock widget

Investing forum

STAGE STORES INC Reports