Citi Trends Announces Fourth Quarter and Fiscal 2013 Results

  Citi Trends Announces Fourth Quarter and Fiscal 2013 Results

Business Wire

SAVANNAH, Ga. -- March 14, 2014

Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the fourth quarter
and fiscal year ended February 1, 2014.

The Company’s 2013 fiscal year contained 52 weeks, while the 2012 fiscal year
contained 53 weeks. Accordingly, comparisons of results for the fourth quarter
and full year of fiscal 2013 to the same periods in 2012 are affected by an
extra week in 2012.

Financial Highlights – 13-week fourth quarter ended February 1, 2014

Total sales in the 13 weeks ended February 1, 2014 decreased 10.5% to $157.2
million compared with $175.7 million in the 14 weeks ended February 2, 2013,
with the extra week at the beginning of fiscal 2012’s fourth quarter
contributing approximately $12 million to total sales. For comparable store
sales, the Company is reporting on a comparable weeks basis (i.e. the 13 weeks
ended February 1, 2014 compared to the 13 weeks ended February 2, 2013).
Comparable store sales on a comparable weeks basis decreased 3.5% for the
quarter.

The Company had net income of $1.5 million, or $0.10 per diluted share, in the
fourth quarter of 2013 compared with a net loss of $0.7 million, or $0.05 per
diluted share, in last year’s fourth quarter.

Financial Highlights – 52-week fiscal year ended February 1, 2014

Total sales in the 52 weeks ended February 1, 2014 decreased 5.0% to $622.2
million compared with $654.7 million in the 53 weeks ended February 2, 2013,
with the extra week at the beginning of last year contributing approximately
$21 million. For comparable store sales, the Company is reporting on a
comparable weeks basis (i.e. the 52 weeks ended February 1, 2014 compared to
the 52 weeks ended February 2, 2013). Comparable store sales on a comparable
weeks basis decreased 1.6% for the year.

The Company had net income of $0.5 million, or $0.03 per diluted share, in
fiscal 2013 compared with a net loss of $2.2 million, or $0.15 per diluted
share, in fiscal 2012.

The Company opened one store, relocated or expanded six others, and closed
nine stores in 2013.

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)231-2908. A replay of
the conference call will be available until March 21, 2014, by dialing
(402)977-9140 and entering the passcode, 21705725.

The live broadcast of Citi Trends’ 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 that have occurred
after year-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 year-end 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    Fourteen Weeks Ended
                               February 1, 2014        February 2, 2013
                               (unaudited)             (unaudited)
Net sales                      $     157,193           $     175,656
                                                       
Cost of sales (exclusive of
depreciation shown                   (99,567     )           (118,165     )
separately below)
Selling, general and                 (50,170     )           (52,678      )
administrative expenses
Depreciation                         (5,258      )           (5,797       )
Asset impairment                    (305        )          (517         )
Income (loss) from                   1,893                   (1,501       )
operations
Interest income                      68                      66
Interest expense                    (49         )          (49          )
Income (loss) before income          1,912                   (1,484       )
taxes
Income tax expense (benefit)        447                   (780         )
Net income (loss)              $     1,465            $     (704         )
                                                       
Basic net income (loss) per    $     0.10             $     (0.05        )
common share
Diluted net income (loss)      $     0.10             $     (0.05        )
per common share
                                                       
                                                       
Weighted average shares used
to compute basic net income         14,825                14,699       
(loss) per share
Weighted average shares used
to compute diluted net              14,882                14,699       
income (loss) per share
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                                                       
                               Fifty-Two Weeks Ended   Fifty-Three Weeks Ended
                               February 1, 2014        February 2, 2013
                               (unaudited)             (unaudited)
Net sales                      $     622,204           $     654,653
                                                       
Cost of sales (exclusive of
depreciation shown                   (394,445    )           (426,904     )
separately below)
Selling, general and                 (206,146    )           (207,411     )
administrative expenses
Depreciation                         (21,974     )           (23,950      )
Asset impairment                     (1,542      )           (1,177       )
Gain on sale of former              1,526                 -            
distribution center
Loss from operations                 (377        )           (4,789       )
Interest income                      281                     260
Interest expense                    (194        )          (212         )
Loss before income taxes             (290        )           (4,741       )
Income tax benefit                  (754        )          (2,516       )
Net income (loss)              $     464              $     (2,225       )
                                                       
Basic net income (loss) per    $     0.03             $     (0.15        )
common share
Diluted net income (loss)      $     0.03             $     (0.15        )
per common share
                                                       
                                                       
Weighted average shares used
to compute basic net income         14,798                14,672       
(loss) per share
Weighted average shares used
to compute diluted net              14,813                14,672       
income (loss) per share







CITI TRENDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)
                                                           
                                           February 1, 2014   February 2, 2013
                                           (unaudited)        (unaudited)
Assets:
Cash and cash equivalents                  $     58,928       $     37,263
Short-term investment securities                 6,004              12,771
Inventory                                        126,501            141,473
Other current assets                             16,326             19,285
Property and equipment, net                      56,154             70,995
Long-term investment securities                  19,777             5,754
Other noncurrent assets                         7,618             4,604
Total assets                               $     291,308      $     292,145
                                                              
Liabilities and Stockholders' Equity:
Accounts payable                           $     60,037       $     62,690
Accrued liabilities                              24,199             22,564
Other current liabilities                        515                660
Noncurrent liabilities                          7,686             10,260
Total liabilities                                92,437             96,174
                                                              
Total stockholders' equity                      198,871           195,971
Total liabilities and stockholders'        $     291,308      $     292,145
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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