Citi Trends Announces Third Quarter 2013 Results

  Citi Trends Announces Third Quarter 2013 Results

  Third quarter sales decreased 2.4%; comparable store sales increased 0.6%

Third quarter 2013 loss per share of $0.11 compared with $0.25 loss last year

Business Wire

SAVANNAH, Ga. -- November 26, 2013

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

Financial Highlights – Third quarter ended November 2, 2013

Total sales in the third quarter ended November 2, 2013 decreased 2.4% to
$145.4 million compared with $149.0 million in the third quarter ended October
27, 2012. Comparable store sales increased 0.6% in the third quarter on a
comparable weeks basis.

Net loss was $1.7 million, or $0.11 per diluted share, in the third quarter of
fiscal 2013, compared with a net loss of $3.7 million, or $0.25 per diluted
share, in the third quarter of fiscal 2012. This year’s third quarter
benefited by a pretax gain of $1.5 million on the sale of the Company’s former
distribution center. The gain had a positive impact on loss per diluted share
of $0.06 in the third quarter of fiscal 2013.

The Company closed one store and relocated or expanded three stores in the
third quarter of 2013, resulting in a total store count of 505 at the end of
the quarter.

Financial Highlights – First three quarters ended November 2, 2013

Total sales in the first three quarters of fiscal 2013 decreased 2.9% to
$465.0 million compared with $479.0 million in the same period of fiscal 2012.
Comparable store sales decreased 1.0% on a comparable weeks basis. Net loss
was $1.0 million, or $0.07 per diluted share, in the first three quarters of
this year, compared with a net loss of $1.5 million, or $0.10 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)231-2921. A replay of
the conference call will be available until December 3, 2013, by dialing
(402)977-9140 and entering the passcode, 21645980. 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 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 occurring 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 505 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 2, 2013            October 27, 2012
                             (unaudited)                 (unaudited)
Net sales                    $     145,362               $    148,985
Cost of sales                     92,074                   97,808      
Gross profit                       53,288                     51,177
Selling, general and               (52,148      )             (51,132     )
administrative expenses
Depreciation and                   (5,454       )             (5,970      )
amortization
Asset impairment                   (556         )             (660        )
Gain on sale of former            1,526                    -           
distribution center
Loss from operations               (3,344       )             (6,585      )
Interest income                    78                         66
Interest expense                  (49          )            (50         )
Loss before income tax             (3,315       )             (6,569      )
benefit
Income tax benefit                (1,643       )            (2,869      )
Net loss                     $     (1,672       )        $    (3,700      )
                                                         
Basic net loss per           $     (0.11        )        $    (0.25       )
common share
Diluted net loss per         $     (0.11        )        $    (0.25       )
common share
                                                         
                                                         
Weighted average shares
used to compute basic             14,815                   14,677      
net loss per share
Weighted average shares
used to compute diluted           14,815                   14,677      
net loss per share
                                                         
                                                         
                                                         
                                                         
                                                         
                             Thirty-Nine Weeks Ended     Thirty-Nine Weeks
                                                         Ended
                             November 2, 2013            October 27, 2012
                             (unaudited)                 (unaudited)
Net sales                    $     465,011               $    478,997
Cost of sales                     294,878                  308,739     
Gross profit                       170,133                    170,258
Selling, general and               (155,976     )             (154,733    )
administrative expenses
Depreciation and                   (16,716      )             (18,153     )
amortization
Asset impairment                   (1,237       )             (660        )
Gain on sale of former            1,526                    -           
distribution center
Loss from operations               (2,270       )             (3,288      )
Interest income                    213                        194
Interest expense                  (145         )            (163        )
Loss before income tax             (2,202       )             (3,257      )
benefit
Income tax benefit                (1,201       )            (1,736      )
Net loss                     $     (1,001       )        $    (1,521      )
                                                         
Basic net loss per           $     (0.07        )        $    (0.10       )
common share
Diluted net loss per         $     (0.07        )        $    (0.10       )
common share
                                                         
                                                         
Weighted average shares
used to compute basic             14,789                   14,662      
net loss per share
Weighted average shares
used to compute diluted           14,789                   14,662      
net loss per share


CITI TRENDS, INC.
CONDENSED BALANCE SHEETS (unaudited)
(in thousands)
                                                         
                                         November 2, 2013     October 27, 2012
                                         (unaudited)          (unaudited)
Assets:
Cash and cash equivalents                $     47,585         $     36,195
Short-term investment securities               18,218               4,734
Inventory                                      123,203              146,700
Prepaid and other current assets               18,882               20,023
Assets held for sale                           -                    1,415
Property and equipment, net                    60,979               76,197
Long-term investment securities                20,052               14,957
Other noncurrent assets                       6,950               2,268
Total assets                             $     295,869        $     302,489
                                                              
Liabilities and Stockholders'
Equity:
Accounts payable                         $     58,929         $     67,098
Accrued liabilities                            29,488               25,691
Other current liabilities                      2,397                2,544
Noncurrent liabilities                        8,416               11,126
Total liabilities                              99,230               106,459
                                                              
Total stockholders' equity                    196,639             196,030
Total liabilities and stockholders'      $     295,869        $     302,489
equity

Contact:

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