Citi Trends Announces Third Quarter 2012 Results Third quarter sales increased 4.1%; comparable store sales increased 0.5% Third quarter 2012 loss per share of $0.25 compared with $0.46 loss last year Business Wire SAVANNAH, Ga. -- November 20, 2012 Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the third quarter of fiscal 2012. Financial Highlights – Third quarter ended October 27, 2012 Total sales in the third quarter ended October 27, 2012 increased 4.1% to $149.0 million compared with $143.1 million in the third quarter ended October 29, 2011. Comparable store sales increased 0.5%. Net loss was $3.7 million, or $0.25 per diluted share, in the third quarter of fiscal 2012, compared with a net loss of $6.8 million, or $0.46 per diluted share, in the third quarter of fiscal 2011. Last year’s third quarter was affected by severance costs of $1.2 million, incurred primarily in connection with the elimination of 40 positions in the Company’s corporate offices, distribution centers and store organization. The severance expense had an adverse impact on loss per diluted share of $0.05 in the third quarter of fiscal 2011. The Company opened one store and relocated or expanded two others in the third quarter of 2012, reaching a total store count of 513 at the end of the quarter. Financial Highlights – First three quarters ended October 27, 2012 Total sales in the first three quarters of fiscal 2012 increased 3.6% to $479.0 million compared with $462.5 million in the same period of fiscal 2011. Comparable store sales decreased 3.1%. Net loss was $1.5 million, or $0.10 per diluted share, in the first three quarters of this year, compared with a net loss of $4.7 million, or $0.32 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)231-2906. A replay of the conference call will be available until November 27, 2012, by dialing (402)977-9140 and entering the passcode, 21602893. The live broadcast of the quarterly conference call will be available online at the Company’s website, www.cititrends.com, as well as http://ir.cititrends.com/events.cfm, beginning today at 9:00 a.m. ET. The online replay will follow shortly after the call and continue through November 27, 2012. During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends 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. The Company’s next scheduled press release is scheduled for February 13, 2013 and will consist of a report on fourth quarter sales results. About Citi Trends Citi Trends, Inc. is a value-priced retailer of urban fashion apparel and accessories for the entire family. The Company operates 513 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 October 27, 2012 October 29, 2011 (unaudited) (unaudited) Net sales $ 148,985 $ 143,067 Cost of sales 97,808 94,909 Gross profit 51,177 48,158 Selling, general and 51,132 53,059 administrative expenses Depreciation and 5,970 6,454 amortization Asset impairment 660 696 Loss from operations (6,585 ) (12,051 ) Interest income 66 61 Interest expense (50 ) (17 ) Loss before income tax (6,569 ) (12,007 ) benefit Income tax benefit (2,869 ) (5,246 ) Net loss $ (3,700 ) $ (6,761 ) Basic net loss per common $ (0.25 ) $ (0.46 ) share Diluted net loss per $ (0.25 ) $ (0.46 ) common share Weighted average shares used to compute basic net 14,677 14,602 loss per share Weighted average shares used to compute diluted 14,677 14,602 net loss per share Thirty-Nine Weeks Thirty-Nine Weeks Ended Ended October 27, 2012 October 29, 2011 (unaudited) (unaudited) Net sales $ 478,997 $ 462,468 Cost of sales 308,739 295,789 Gross profit 170,258 166,679 Selling, general and 154,733 154,819 administrative expenses Depreciation and 18,153 18,389 amortization Asset impairment 660 2,305 Loss from operations (3,288 ) (8,834 ) Interest income 194 180 Interest expense (163 ) (27 ) Loss before income tax (3,257 ) (8,681 ) benefit Income tax benefit (1,736 ) (3,982 ) Net loss $ (1,521 ) $ (4,699 ) Basic net loss per common $ (0.10 ) $ (0.32 ) share Diluted net loss per $ (0.10 ) $ (0.32 ) common share Weighted average shares used to compute basic net 14,662 14,584 loss per share Weighted average shares used to compute diluted 14,662 14,584 net loss per share CITI TRENDS, INC. CONDENSED BALANCE SHEETS (unaudited) (in thousands) October 27, 2012 October 29, 2011 (unaudited) (unaudited) Assets: Cash and cash equivalents $ 36,195 $ 33,225 Short-term investment securities 4,734 - Inventory 146,700 127,156 Prepaid and other current assets 20,023 27,836 Assets held for sale 1,415 1,415 Property and equipment, net 76,197 95,369 Long-term investment securities 14,957 19,760 Other noncurrent assets 2,268 3,308 Total assets $ 302,489 $ 308,069 Liabilities and Stockholders’ Equity: Accounts payable $ 67,098 $ 64,120 Accrued liabilities 25,691 25,126 Other current liabilities 2,544 3,363 Noncurrent liabilities 11,126 12,974 Total liabilities 106,459 105,583 Total stockholders’ equity 196,030 202,486 Total liabilities and stockholders’ $ 302,489 $ 308,069 equity Contact: Citi Trends, Inc. Bruce Smith, 912-443-2075 Chief Financial Officer or Ed Anderson, 912-443-3705 Chairman & Chief Executive Officer
Citi Trends Announces Third Quarter 2012 Results
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