Citi Trends Announces Second Quarter 2013 Results

  Citi Trends Announces Second Quarter 2013 Results

   Second Quarter Sales Increased 4.2%; Including a Comparable Store Sales
                               Increase of 1.7%

Second Quarter 2013 Loss Per Share of $0.37 Compared with $0.54 Loss Last Year

Business Wire

SAVANNAH, Ga. -- August 21, 2013

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

Financial Highlights – Second quarter ended August 3, 2013

Total sales in the second quarter ended August 3, 2013 increased 4.2% to
$137.8 million compared with $132.3 million in the second quarter ended July
28, 2012. Comparable store sales increased 1.7% in the second quarter on a
comparable weeks basis. Net loss was $5.5 million, or $0.37 per diluted share,
in the second quarter of 2013, compared with a net loss of $7.9 million, or
$0.54 per diluted share, in the second quarter of 2012.

The Company closed two stores in the second quarter of 2013, resulting in a
total store count of 506 at the end of the quarter.

Financial Highlights – First half ended August 3, 2013

Total sales in the first half of fiscal 2013 decreased 3.1% to $319.6 million
compared with $330.0 million in the first half of fiscal 2012. Comparable
store sales decreased 1.7% in the first half of this year. Net income
decreased to $0.7 million compared with $2.2 million in last year’s first
half. Earnings per diluted share were $0.05 in the first half of 2013 compared
with $0.15 in 2012’s first half.

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 August 28, 2013, by dialing
(402)977-9140 and entering the passcode, 21645979. The live broadcast of Citi
Trends’ 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 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 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 operated 506 stores located in
29 states as of the end of the second quarter of 2013. 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 OPERATIONS (unaudited)
(in thousands, except per share data)
                                                     
                               Thirteen Weeks Ended     Thirteen Weeks Ended
                               August 3, 2013           July 28, 2012
                               (unaudited)              (unaudited)
Net sales                      $      137,821           $      132,318
Cost of sales                        88,299                 87,903     
Gross profit                          49,522                   44,415
Selling, general and                  51,920                   50,932
administrative expenses
Depreciation and                      5,667                    6,038
amortization
Asset impairment                     654                    -          
Loss from operations                  (8,719     )             (12,555    )
Interest income                       67                       66
Interest expense                     (49        )            (64        )
Loss before income tax                (8,701     )             (12,553    )
benefit
Income tax benefit                   (3,208     )            (4,628     )
Net loss                       $      (5,493     )      $      (7,925     )
                                                        
Basic net loss per common      $      (0.37      )      $      (0.54      )
share
Diluted net loss per common    $      (0.37      )      $      (0.54      )
share
                                                        
                                                        
Weighted average shares used
to compute basic net loss            14,801                 14,673     
per share
Weighted average shares used
to compute diluted net loss          14,801                 14,673     
per share
                                                        
                                                        
                                                        
                                                        
                               Twenty-Six Weeks Ended   Twenty-Six Weeks Ended
                               August 3, 2013           July 28, 2012
                               (unaudited)              (unaudited)
Net sales                      $      319,649           $      330,012
Cost of sales                        202,804                210,931    
Gross profit                          116,845                  119,081
Selling, general and                  103,828                  103,601
administrative expenses
Depreciation and                      11,262                   12,183
amortization
Asset impairment                     681                    -          
Income from operations                1,074                    3,297
Interest income                       135                      128
Interest expense                     (96        )            (113       )
Income before income tax              1,113                    3,312
expense
Income tax expense                   442                    1,133      
Net income                     $      671              $      2,179      
                                                        
Basic net income per common    $      0.05             $      0.15       
share
Diluted net income per         $      0.05             $      0.15       
common share
                                                        
                                                        
Weighted average shares used
to compute basic net income          14,776                 14,654     
per share
Weighted average shares used
to compute diluted net               14,778                 14,656     
income per share
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
CITI TRENDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)
                                                        
                               August 3, 2013           July 28, 2012
                               (unaudited)              (unaudited)
Assets:
Cash and cash equivalents      $      61,242            $      51,730
Short-term investment                 15,847                   3,311
securities
Inventory                             120,402                  133,773
Prepaid and other current             20,046                   23,845
assets
Property and equipment, net           65,213                   80,990
Long-term investment                  8,353                    16,397
securities
Other noncurrent assets              6,302                  2,688      
Total assets                   $      297,405          $      312,734    
                                                        
Liabilities and
Stockholders' Equity:
Accounts payable               $      64,292            $      71,959
Accrued liabilities                   24,992                   27,943
Other current liabilities             1,903                    1,995
Noncurrent liabilities               8,743                  11,815     
Total liabilities                     99,930                   113,712
                                                        
Total stockholders' equity           197,475                199,022    
Total liabilities and          $      297,405          $      312,734    
stockholders' equity
                                                        
                                                        
                                                        

Contact:

Citi Trends, Inc.
Bruce Smith, 912-443-2075
Chief Financial Officer
or
Ed Anderson, 912-443-3705
Chief Executive Officer
 
Press spacebar to pause and continue. Press esc to stop.