Gordmans Stores, Inc. Announces Fourth Quarter 2012 Results

Gordmans Stores, Inc. Announces Fourth Quarter 2012 Results 
Fourth Quarter Net Sales Increased 9.4%; Fourth Quarter Diluted EPS
of $0.41 
OMAHA, NE -- (Marketwire) -- 03/25/13 --  Gordmans Stores, Inc.
(NASDAQ: GMAN), an Omaha-based apparel and home decor retailer, today
announced results for its fourth quarter (fourteen weeks) and fiscal
year (fifty-three weeks) ended February 2, 2013. 
Fourth Quarter Highlights 


 
--  Net sales increased 9.4% to $202.5 million compared to $185.1 million
    in the fourth quarter of fiscal 2011.
--  Diluted earnings per share were $0.41, which exceeded revised guidance
    of $0.35 - $0.37.

  
Fiscal Year 2012 Highlights 


 
--  Net sales increased 10.2% to $607.7 million compared to $551.5 million
    in fiscal year 2011.
--  Nine new stores were opened in 4 new markets and 2 new states in
 
   fiscal 2012, a 12% expansion in the store base.

  
"Our fourth quarter sales performance was driven primarily by
contributions from the nine stores opened in fiscal 2012, partially
offset by a comparable store sales decline of 4%," commented Jeff
Gordman, President and Chief Executive Officer. "While we are
disappointed with our recent results, including a slow start to
fiscal 2013, we believe that the strategic initiatives that we have
put in place, in concert with the change in our senior leadership
team, will produce improved comparable sales as the year progresses.
In addition, we will continue our expansion strategy with the opening
of 10 new stores in a combination of new and existing markets." 
Fourth Quarter Financial Results
 Net sales for the fourteen weeks
ended February 2, 2013 increased 9.4% to $202.5 million from $185.1
million for the thirteen weeks ended January 28, 2012. Comparable
store sales for the thirteen week period ended January 26, 2013 fell
by 4.1% versus a 2.1% comparable store sales increase for the
thirteen week period ended January 28, 2012. Gross profit increased
5.5% to $78.4 million, or 38.7% of net sales, from $74.3 million, or
40.1% of net sales, in the fourth quarter of fiscal 2011. Selling,
general and administrative expenses were $65.6 million, or 32.4% of
net sales, compared to $58.0 million, or 31.3% of net sales, in the
fourth quarter of fiscal 2011. Net income for the fourth quarter of
fiscal 2012 was $7.9 million, or $0.41 per diluted share, compared to
net income of $10.2 million, or $0.53 per diluted share in the fourth
quarter of fiscal 2011.  
Fiscal Year 2012 Financial Results
 Net sales for the fifty-three
weeks ended February 2, 2013 increased 10.2% to $607.7 million from
$551.5 million for the fifty-two weeks ended January 28, 2012.
Comparable store sales for the fifty-two week period ended January
26, 2013 decreased by 0.7%. Gross profit increased by 9.4% to $264.8
million, or 43.6% of net sales, from $242.0 million, or 43.9% of net
sales, in the prior year. Selling, general and administrative costs
were $226.7 million, or 37.3% of net sales, compared to $201.1
million, or 36.5% of net sales, in the prior year. Net income
decreased by 6.5% to $23.5 million, or $1.21 per diluted share,
compared to net income of $25.2 million, or $1.30 per diluted share
in fiscal 2011.  
Conference Call Information
 A conference call to discuss fourth
quarter financial results is scheduled for today, March 25, 2013 at
4:30 p.m. Eastern Time. The conference call will be webcast live at
http://investor.gordmans.com/events.cfm. A replay of this call will
be available within two hours of the conclusion of the call and will
remain on the website for one year.  
About Gordmans Stores, Inc.
 Gordmans (NASDAQ: GMAN) features a large
selection of the latest name brands, fashions and styles at up to 60
percent off department and specialty store prices every day. The wide
range of merchandise includes apparel for all ages, accessories,
footwear, home decor, gifts, designer fragrances, fashion jewelry,
bedding and bath, accent furniture and toys. Founded in 1915,
Gordmans operates 86 stores in 18 states. For more information about
Gordmans, visit www.gordmans.com.  
Safe Harbor Statement
 Certain statements in this release are
"forward-looking statements" made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Words such as "guidance," "expects," "intends," "projects," "plans,"
"believes," "estimates," "targets," "anticipates," and similar
expressions are used to identify these forward-looking statements.
Examples of forward-looking statements include, but are not limited
to, statements regarding expected net sales, net income, comparable
store sales, diluted earnings per share, and store expansion, as well
as any other statement that does not directly relate to any
historical or current fact. Forward-looking statements are based on
our current expectations and assumptions, which may not prove to be
accurate. These statements are not guarantees and are subject to
risks, uncertainties and changes in circumstances that are difficult
to predict. Many factors could cause actual results to differ
materially and adversely from these forward-looking statements. Among
these factors are (1) changes in consumer spending and general
economic conditions; (2) our ability to identify and respond to new
and changing fashion trends, guest preferences and other related
factors; (3) fluctuations in our sales and profitability on a
seasonal basis; (4) intense competition from other retailers; (5) our
ability to maintain or improve levels of comparable store sales; and
(6) our successful implementation of advertising, marketing and
promotional strategies. 
Additional information concerning these and other factors can be
found in our filings with the Securities and Exchange Commission,
including other risks, relevant factors and uncertainties identified
in the "Risk Factors" section of the Company's Annual Report on Form
10-K for the fiscal year ended January 28, 2012, Quarterly Reports on
Form 10-Q, and Current Reports on Form 8-K. Any forward-looking
statement speaks only as of the date on which it is made, and we
undertake no obligation to publicly update or revise any
forward-looking statement as a result of new information, future
events or otherwise, except as otherwise required by law. 


 
                                                                            
                                                                            
                   GORDMANS STORES, INC. AND SUBSIDIARIES                   
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                        (in 000's except share data)                        
                                                                            
                                                   February 2,  January 28, 
                                                       2013         2012    
                                                   ------------ ------------
ASSETS                                              (Unaudited)             
CURRENT ASSETS:                                                             
  Cash and cash equivalents                        $     40,824 $     35,413
  Accounts receivable                                     2,049        1,787
  Landlord receivable                                     8,787        9,939
  Income taxes receivable                                 1,300        2,805
  Merchandise inventories                                78,006       65,335
  Deferred income taxes                                   2,617        2,964
  Prepaid expenses and other current assets               6,552        5,239
                                                   ------------ ------------
    Total current assets                                140,135      123,482
PROPERTY AND EQUIPMENT, net                              45,966       34,507
INTANGIBLE ASSETS, net                                    1,992        2,078
OTHER ASSETS, net                                         3,033        2,546
                                                   ------------ ------------
                                                                            
TOTAL ASSETS                                       $    191,126 $    162,613
                                                   ============ ============
                                                                            
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
CURRENT LIABILITIES:                                                        
  Accounts payable                                 $     34,211 $     36,034
  Accrued expenses                                       22,789       26,464
  Current portion of long-term debt                         189          655
                                                   ----------
-- ------------
                                                                            
    Total current liabilities                            57,189       63,153
                                                   ------------ ------------
                                                                            
NONCURRENT LIABILITIES:                                                     
  Long-term debt, less current portion                       --          189
  Deferred rent                                          21,997       14,914
  Deferred income taxes                                   9,236        6,604
  Other liabilities                                         316           30
                                                   ------------ ------------
                                                                            
    Total noncurrent liabilities                         31,549       21,737
 
                                                   ------------ ------------
                                                                            
COMMITMENTS AND CONTINGENCIES                                               
                                                                            
STOCKHOLDERS' EQUITY:                                                       
  Preferred stock                                            --           --
  Common stock                                               19           19
  Additional paid-in capital                             52,461       51,327
  Retained earnings                                      49,908       26,377
                                                   ------------ ------------
                                                                            
    Total stockholders' equity                          102,388       77,723
                                                   ------------ ------------
                                                                            
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $    191,126 $    162,613
                                                   ============ ============
                                                                            
                                                                            
                                                                            
                   GORDMANS STORES, INC. AND SUBSIDIARIES                   
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                        (in 000's except share data)                        
                                                                            
                          14 Weeks     13 Weeks      53 Weeks               
                           Ended         Ended        Ended       52 Weeks  
                        February 2,   January 28,  February 2,     Ended    
                            2013         2012          2013     January 28, 
                        (Unaudited)   (Unaudited)  (Unaudited)      2012    
                        -----------  ------------  -----------  ----------- 
Net sales               $   202,460  $    185,148  $   607,692  $   551,476 
License fees from                                                           
 leased departments           1,887         1,792        7,361        6,670 
Cost of sales              (125,963)     (112,627)    (350,212)    (316,167)
                        -----------  ------------  -----------  ----------- 
Gross profit                 78,384        74,313      264,841      241,979 
Selling, general and                                                        
 administrative                                                             
 expenses
                   (65,563)      (58,012)    (226,710)    (201,084)
                        -----------  ------------  -----------  ----------- 
Income from operations       12,821        16,301       38,131       40,895 
Interest expense               (115)         (155)        (481)        (610)
                        -----------  ------------  -----------  ----------- 
Income before taxes          12,706        16,146       37,650       40,285 
Income tax expense           (4,765)       (5,939)     (14,119)     (15,112)
                        -----------  ------------  -----------  ----------- 
Net income              $     7,941  $     10,207  $    23,531  $    25,173 
                        ===========  ============  ===========  =========== 
                                                                            
Basic earnings per                                                          
 share                  $      0.41  $       0.54  $      1.23  $      1.32 
Diluted earnings per                                                        
 share                  $      0.41  $       0.53  $      1.21  $      1.30 
                                                                            
Basic weighted average                                                      
 shares outstanding      19,235,960    19,095,046   19,165,260   19,098,377 
Diluted weighted                                                            
 average shares                                                             
 outstanding             19,448,582    19,360,879   19,405,218   19,370,290 

  
Company Contact: 
Mike James 
Chief Financial Officer 
(402) 691-4126 
Investor Relations: 
ICR, Inc.
Brendon Frey 
(203) 682-8200