Exhibit 99.1
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
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.
Contact: | Bruce Smith | Ed Anderson |
| Chief Financial Officer | Chairman & Chief Executive Officer |
| (912) 443-2075 | (912) 443-3705 |
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 administrative expenses |
| (52,148 | ) | (51,132 | ) | ||
Depreciation and amortization |
| (5,454 | ) | (5,970 | ) | ||
Asset impairment |
| (556 | ) | (660 | ) | ||
Gain on sale of former distribution center |
| 1,526 |
| — |
| ||
Loss from operations |
| (3,344 | ) | (6,585 | ) | ||
Interest income |
| 78 |
| 66 |
| ||
Interest expense |
| (49 | ) | (50 | ) | ||
Loss before income tax benefit |
| (3,315 | ) | (6,569 | ) | ||
Income tax benefit |
| (1,643 | ) | (2,869 | ) | ||
Net loss |
| $ | (1,672 | ) | $ | (3,700 | ) |
|
|
|
|
|
| ||
Basic net loss per common share |
| $ | (0.11 | ) | $ | (0.25 | ) |
Diluted net loss per common share |
| $ | (0.11 | ) | $ | (0.25 | ) |
|
|
|
|
|
| ||
Weighted average shares used to compute basic net loss per share |
| 14,815 |
| 14,677 |
| ||
Weighted average shares used to compute diluted net loss per share |
| 14,815 |
| 14,677 |
| ||
|
| 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 administrative expenses |
| (155,976 | ) | (154,733 | ) | ||
Depreciation and amortization |
| (16,716 | ) | (18,153 | ) | ||
Asset impairment |
| (1,237 | ) | (660 | ) | ||
Gain on sale of former distribution center |
| 1,526 |
| — |
| ||
Loss from operations |
| (2,270 | ) | (3,288 | ) | ||
Interest income |
| 213 |
| 194 |
| ||
Interest expense |
| (145 | ) | (163 | ) | ||
Loss before income tax benefit |
| (2,202 | ) | (3,257 | ) | ||
Income tax benefit |
| (1,201 | ) | (1,736 | ) | ||
Net loss |
| $ | (1,001 | ) | $ | (1,521 | ) |
|
|
|
|
|
| ||
Basic net loss per common share |
| $ | (0.07 | ) | $ | (0.10 | ) |
Diluted net loss per common share |
| $ | (0.07 | ) | $ | (0.10 | ) |
|
|
|
|
|
| ||
Weighted average shares used to compute basic net loss per share |
| 14,789 |
| 14,662 |
| ||
Weighted average shares used to compute diluted net loss per share |
| 14,789 |
| 14,662 |
| ||
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’ equity |
| $ | 295,869 |
| $ | 302,489 |
|