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8-K - LIVE FILING - KIRKLAND'S, INC | htm_54973.htm |
KIRKLANDS
KIRKLANDS REPORTS FIRST QUARTER 2017 RESULTS
NASHVILLE, Tenn. (May 23, 2017) Kirklands, Inc. (NASDAQ: KIRK) today reported financial results for the 13-week period ended April 29, 2017.
Net sales for the 13 weeks ended April 29, 2017 increased 2.3% to $132.8 million compared with $129.9 million for the 13 weeks ended April 30, 2016. Comparable store sales for the first quarter of fiscal 2017, including e-commerce sales, decreased 3.8% compared with an increase of 0.5% in the prior-year quarter. Kirklands opened 8 stores and closed 11 during the first quarter of fiscal 2017, bringing the total number of stores to 401 at quarter end.
The net loss for the 13 weeks ended April 29, 2017 was $1.4 million, or $0.09 per diluted share compared with net income of $0.9 million, or $0.06 per diluted share, for the 13 weeks ended April 30, 2016.
Although we had a slow start to February, we experienced improvement in sales trends as we progressed through the quarter, said Mike Madden, Chief Executive Officer. Highlights for the quarter included stabilization in several key product categories and definitive progress on our path to improve our merchandise assortment. Operating expenses and inventory levels remained well-controlled, and I am very pleased with the first quarters e-commerce results, which achieved a 32% increase in revenue and reflected improvements in our operating efficiency.
Overall, were encouraged about the progress were making on our strategic priorities and believe the groundwork we laid during the first quarter will help us establish better merchandising and marketing execution, continued Mr. Madden. Weve identified significant opportunities to drive the business, and we remain confident in our long-term outlook.
Fiscal 2017 Outlook
Kirklands maintained its fiscal 2017 outlook given on March 10, 2017, which provides for diluted earnings per share in the range of $0.50 to $0.65.
This performance outlook is based on current information as of May 23, 2017. The information on which this outlook is based is subject to change, and the Company may update its full year business outlook or any portion thereof at any time for any reason.
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KIRK Reports First Fiscal Quarter 2017 Results
Page 2
May 23, 2017
Investor Conference Call and Web Simulcast
Kirklands will hold its earnings call for the first quarter later today at 11:00 a.m. ET. Participating on the call will be Mike Madden, President and Chief Executive Officer, and Adam Holland, Vice President and Chief Financial Officer. The number to call for the interactive teleconference is (412) 542-4163. A replay of the conference call will be available through Tuesday, May 30, 2017, by dialing (412) 317-0088 and entering the confirmation number, 10106773.
A live broadcast of Kirklands quarterly conference call will be available online at ir.kirklands.com or https://www.webcaster4.com/Webcast/Page/957/20999 on May 23, 2017, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for one year.
About Kirklands, Inc.
Kirklands, 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 401 stores in 36 states as well as an e-Commerce enabled website, www.kirklands.com. The Companys stores present a broad selection of distinctive merchandise, including framed art, mirrors, candles, lamps, picture frames, accent rugs, garden accessories and artificial floral products. The Companys 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 Kirklands 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 Kirklands specific market areas, inflation, possibility
of new tax legislation, fluctuations in cost and availability of products, interruptions in supply
chain and distribution systems, the ability to control employment, and other operating costs,
availability of suitable retail locations and other growth opportunities, disruptions in
information technology systems including the potential for security breaches of Kirklands or its
customers information, seasonal fluctuations in consumer spending, and economic conditions in
general. Those and other risks are more fully described in Kirklands filings with the Securities
and Exchange Commission, including the Companys Annual Report on Form 10-K filed on March 31, 2017
and subsequent reports. Kirklands 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 First Quarter Fiscal 2017 Results
Page 3
May 23, 2017
KIRKLANDS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
13-Week | 13-Week | |||||||
Period Ended | Period Ended | |||||||
April 29, | April 30, | |||||||
2017 | 2016 | |||||||
Net sales |
$ | 132,841 | $ | 129,911 | ||||
Cost of sales |
85,217 | 80,374 | ||||||
Gross profit |
47,624 | 49,537 | ||||||
Operating expenses: |
||||||||
Operating expenses |
43,505 | 42,040 | ||||||
Depreciation |
6,397 | 5,973 | ||||||
Operating (loss) income |
(2,278 | ) | 1,524 | |||||
Other (income) expense, net |
(25 | ) | 14 | |||||
(Loss) income before income taxes |
(2,253 | ) | 1,510 | |||||
Income tax (benefit) expense |
(818 | ) | 594 | |||||
Net (loss) income |
$ | (1,435 | ) | $ | 916 | |||
(Loss) Earnings per share: |
||||||||
Basic |
$ | (0.09 | ) | $ | 0.06 | |||
Diluted |
$ | (0.09 | ) | $ | 0.06 | |||
Shares used to calculate (loss) earnings per share: |
||||||||
Basic |
15,913 | 15,780 | ||||||
Diluted |
15,913 | 16,101 | ||||||
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KIRK Reports First Quarter Fiscal 2017 Results
Page 4
May 23, 2017
KIRKLANDS, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
April 29, | January 28, | April 30, | ||||||||||
2017 | 2017 | 2016 | ||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
$ | 59,804 | $ | 63,937 | $ | 38,203 | ||||||
Inventories, net |
74,669 | 75,447 | 69,107 | |||||||||
Other current assets |
10,789 | 13,656 | 13,627 | |||||||||
Total current assets |
145,262 | 153,040 | 120,937 | |||||||||
Property and equipment, net |
110,869 | 110,870 | 108,626 | |||||||||
Non-current deferred income taxes |
1,144 | 1,198 | - | |||||||||
Other assets |
5,815 | 5,038 | 2,659 | |||||||||
Total assets |
$ | 263,090 | $ | 270,146 | $ | 232,222 | ||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Accounts payable |
$ | 29,915 | $ | 37,898 | $ | 24,753 | ||||||
Income taxes payable |
4,891 | 6,273 | - | |||||||||
Other current liabilities |
31,633 | 30,270 | 27,647 | |||||||||
Total current liabilities |
66,439 | 74,441 | 52,400 | |||||||||
Non-current deferred income taxes |
957 | 479 | 1,191 | |||||||||
Deferred rent and other long-term liabilities |
62,431 | 61,413 | 57,028 | |||||||||
Total liabilities |
129,827 | 136,333 | 110,619 | |||||||||
Net shareholders equity |
133,263 | 133,813 | 121,603 | |||||||||
Total liabilities and shareholders equity |
$ | 263,090 | $ | 270,146 | $ | 232,222 | ||||||
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KIRK Reports First Quarter Fiscal 2017 Results
Page 5
May 23, 2017
KIRKLANDS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
13-Week | ||||||||
13-Week | Period Ended | |||||||
Period Ended | April 30, | |||||||
April 29, 2017 | 2016 | |||||||
Net cash provided by (used in): |
||||||||
Operating activities |
$ | 1,358 | $ | 2,660 | ||||
Investing activities |
(5,587 | ) | (8,682 | ) | ||||
Financing activities |
96 | (127 | ) | |||||
Cash and cash equivalents: |
||||||||
Net decrease |
(4,133 | ) | (6,149 | ) | ||||
Beginning of the period |
63,937 | 44,352 | ||||||
End of the period |
$ | 59,804 | $ | 38,203 | ||||
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