Citi Trends Announces First Quarter 2013 Results

  Citi Trends Announces First Quarter 2013 Results

 First quarter 2013 earnings per share of $0.42 compared with $0.69 last year

Business Wire

SAVANNAH, Ga. -- May 22, 2013

Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the first quarter
of fiscal 2013.

Financial Highlights – First quarter ended May 4, 2013

Total sales in the first quarter ended May 4, 2013 decreased 8.0% to $181.8
million compared with $197.7 million in the first quarter ended April 28,
2012. Comparable store sales decreased 4.1% in the first quarter on a
comparable weeks basis. Net income was $6.2 million, or $0.42 per diluted
share, in the first quarter of 2013, compared with $10.1 million, or $0.69 per
diluted share, in last year’s first quarter.

Ed Anderson, Chairman and Chief Executive Officer, commented, “Our first
quarter began slowly, but sales started to improve once the weather turned
warm after Easter. Comparable store sales on a comparable weeks basis were
down 7% in February and 8% in March, before increasing 9% in April. In
addition, comparable store sales are up 2% in the first two weeks of the
second quarter.”

Each year, the Company’s stores are closed on Easter Sunday, and with the
shift in the timing of Easter this year to fiscal March from April last year,
comparable store sales were negatively affected in March by approximately 2%
and positively affected in April by approximately 3%.

The Company opened one store and closed six stores in the first quarter of
2013, resulting in a total store count of 508 at the end of the quarter.

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)231-2921. A replay of
the conference call will be available until May 29, 2013, by dialing
(402)977-9140 and entering the passcode, 21645978. The live broadcast of Citi
Trends’ quarterly conference call will be available online beginning today at
9:00 a.m. ET at the Company’s website, www.cititrends.com, as well as at
http://ir.cititrends.com/events.cfm. The online replay will follow shortly
after the call and continue through May 29, 2013.

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.

About Citi Trends

Citi Trends, Inc. is a value-priced retailer of urban fashion apparel and
accessories for the entire family. After closing two stores since the end of
the first quarter, the Company currently operates 506 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 CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share data)
                                                     
                                Thirteen Weeks Ended         Thirteen Weeks
                                                             Ended
                               May 4, 2013                April 28, 2012  
                                (unaudited)                  (unaudited)
Net sales                       $    181,828                 $   197,694
Cost of sales                      114,505                 123,028    
Gross profit                         67,323                      74,666
Selling, general and                 51,908                      52,669
administrative expenses
Depreciation and                     5,595                       6,145
amortization
Asset impairment                   27                      -          
Income from operations               9,793                       15,852
Interest income                      68                          62
Interest expense                   (47        )             (49      )  
Income before income                 9,814                       15,865
taxes
Income tax expense                 3,650                   5,761      
Net income                     $    6,164                $   10,104     
                                                                             
                                                                             
Basic net income per           $    0.42                 $   0.69       
common share
Diluted net income per         $    0.42                 $   0.69       
common share
                                                                             
                                                                             
Weighted average shares
used to compute basic net          14,752                  14,636     
income per share
Weighted average shares
used to compute diluted            14,753                  14,637     
net income per share
                                                                             
                                                                             
                                                                             
CITI TRENDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
                                                                             
                               May 4, 2013                April 28, 2012  
                                (unaudited)                  (unaudited)
Assets:
Cash and cash equivalents       $    64,065                  $   63,964
Short-term investment                16,249                      1,637
securities
Inventory                            108,509                     115,008
Prepaid and other current            17,269                      17,749
assets
Property and equipment,              69,202                      85,622
net
Long-term investment                 1,769                       18,088
securities
Other noncurrent assets            4,575                   3,022      
Total assets                   $    281,638              $   305,090    
                                                                             
Liabilities and
Stockholders’ Equity:
Accounts payable                $    40,498                  $   59,996
Accrued liabilities                  26,325                      24,628
Other current liabilities            3,101                       1,975
Noncurrent liabilities             9,513                   12,218     
Total liabilities                    79,437                      98,817
                                                                             
Total stockholders’                202,201                 206,273    
equity
Total liabilities and          $    281,638              $   305,090    
stockholders’ equity
                                                                             

Contact:

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