Citi Trends Announces Third Quarter 2014 Results

Comparable store sales increased 6.7% in third quarter

Results include $1.7 million legal settlement expense in this year’s third quarter; $1.5 million gain on sale of distribution center in last year’s third quarter

Third quarter 2014 loss per share of $(0.15) compared with $(0.11) last year

Year-to-date income per share of $0.29 compared with a loss of $(0.07) last year

SAVANNAH, Ga.--()--Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the third quarter of fiscal 2014.

Financial Highlights – Third quarter ended November 1, 2014

Total sales in the third quarter ended November 1, 2014 increased 7.8% to $156.7 million compared with $145.4 million in the third quarter ended November 2, 2013. Comparable store sales increased 6.7% in the quarter.

Net loss was $(2.2) million, or $(0.15) per diluted share, in the third quarter of 2014 compared with a net loss of $(1.7) million, or $(0.11) per diluted share, in last year’s third quarter. Selling, general and administrative expenses in this year’s third quarter included $1.7 million in expense related to a legal settlement, which had a negative impact on loss per diluted share of $0.07 in the third quarter of 2014. Last year’s third quarter benefited from a pretax gain of $1.5 million on the sale of the Company’s former distribution center, which had a positive impact on loss per diluted share of $0.06.

Financial Highlights – First three quarters ended November 1, 2014

Total sales in the first three quarters of fiscal 2014 increased 5.3% to $489.7 million compared with $465.0 million in the same period of fiscal 2013. Comparable store sales increased 5.3% in the first three quarters of this year. Net income was $4.3 million, or $0.29 per diluted share, in the first three quarters of this year, compared with a net loss of $(1.0) million, or $(0.07) per diluted share, in last year’s first three quarters.

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) 231-2908. A replay of the conference call will be available until December 2, 2014, by dialing (402) 977-9140 and entering the passcode, 21705728.

The live broadcast of Citi Trends' conference call will be available online at the Company's website, www.cititrends.com, as well as www.cititrends.com/http/ircititrendscom, beginning today at 9 a.m. ET. The online replay will follow shortly after the call and will be available for replay for one year.

During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. 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. The Company operates 511 stores located in 29 states. 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. Any forward-looking statements by the Company, with respect to earnings guidance or otherwise, are intended to speak only as of the date such statements are made. 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.

       
CITI TRENDS, INC.
CONDENSED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
 
 
Thirteen Weeks Ended Thirteen Weeks Ended
November 1, 2014 November 2, 2013
(unaudited) (unaudited)
Net sales $ 156,694 $ 145,362
 
Cost of sales (exclusive of depreciation shown separately below) (98,542 ) (92,074 )
Selling, general and administrative expenses (56,354 ) (52,148 )
Depreciation (5,038 ) (5,454 )
Asset impairment - (556 )
Gain on sale of former distribution center   -     1,526  
Loss from operations (3,240 ) (3,344 )
Interest income 43 78
Interest expense   (48 )   (49 )
Loss before income tax benefit (3,245 ) (3,315 )
Income tax benefit   1,038     1,643  
Net loss $ (2,207 ) $ (1,672 )
 
Basic net loss per common share $ (0.15 ) $ (0.11 )
Diluted net loss per common share $ (0.15 ) $ (0.11 )
 
 
Weighted average shares used to compute basic net loss per share   14,982     14,815  
Weighted average shares used to compute diluted net loss per share   14,982     14,815  
 
 
 
 
 
Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended
November 1, 2014 November 2, 2013
(unaudited) (unaudited)
Net sales $ 489,697 $ 465,011
 
Cost of sales (exclusive of depreciation shown separately below) (304,849 ) (294,878 )
Selling, general and administrative expenses (163,526 ) (155,976 )
Depreciation (15,306 ) (16,716 )
Asset impairment (83 ) (1,237 )
Gain on sale of former distribution center   -     1,526  
Income (loss) from operations 5,933 (2,270 )
Interest income 135 213
Interest expense   (152 )   (145 )
Income (loss) before income tax expense (benefit) 5,916 (2,202 )
Income tax (expense) benefit   (1,623 )   1,201  
Net income (loss) $ 4,293   $ (1,001 )
 
Basic net income (loss) per common share $ 0.29   $ (0.07 )
Diluted net income (loss) per common share $ 0.29   $ (0.07 )
 
 
Weighted average shares used to compute basic net income (loss) per share   14,952     14,789  
Weighted average shares used to compute diluted net income (loss) per share   14,985     14,789  
 
       
CITI TRENDS, INC.
CONDENSED BALANCE SHEETS (unaudited)
(in thousands)
 
November 1, 2014 November 2, 2013
(unaudited) (unaudited)
Assets:
Cash and cash equivalents $ 65,991 $ 47,585
Short-term investment securities 13,988 18,218
Inventory 128,516 123,203
Prepaid and other current assets 18,658 18,882
Property and equipment, net 49,756 60,979
Long-term investment securities 24,038 20,052
Other noncurrent assets   7,005   6,950
Total assets $ 307,952 $ 295,869
 
Liabilities and Stockholders' Equity:
Accounts payable $ 63,478 $ 58,929
Accrued liabilities 30,847 29,488
Other current liabilities 2,359 2,397
Noncurrent liabilities   6,247   8,416
Total liabilities 102,931 99,230
 
Total stockholders' equity   205,021   196,639
Total liabilities and stockholders' equity $ 307,952 $ 295,869

Contacts

Citi Trends, Inc.
Bruce Smith, 912-443-2075
Chief Financial Officer
or
Ed Anderson, 912-443-3705
Chairman & Chief Executive Officer

Contacts

Citi Trends, Inc.
Bruce Smith, 912-443-2075
Chief Financial Officer
or
Ed Anderson, 912-443-3705
Chairman & Chief Executive Officer