Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Nov. 02, 2013 | Nov. 19, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Citi Trends Inc | ' |
Entity Central Index Key | '0001318484 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 2-Nov-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--02-02 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 15,450,197 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $47,585 | $37,263 |
Short-term investment securities | 18,218 | 12,771 |
Inventory | 123,203 | 141,473 |
Prepaid and other current assets | 12,737 | 10,648 |
Income tax receivable | 1,442 | 1,134 |
Deferred tax asset | 4,703 | 6,088 |
Assets held for sale | ' | 1,415 |
Total current assets | 207,888 | 210,792 |
Property and equipment, net of accumulated depreciation and amortization of $156,635 and $142,770 as of November 2, 2013 and February 2, 2013, respectively | 60,979 | 70,995 |
Long-term investment securities | 20,052 | 5,754 |
Deferred tax asset | 6,250 | 3,863 |
Other assets | 700 | 741 |
Total assets | 295,869 | 292,145 |
Current liabilities: | ' | ' |
Accounts payable | 58,929 | 62,690 |
Accrued expenses | 17,408 | 14,435 |
Accrued compensation | 12,080 | 8,129 |
Layaway deposits | 2,397 | 660 |
Total current liabilities | 90,814 | 85,914 |
Other long-term liabilities | 8,416 | 10,260 |
Total liabilities | 99,230 | 96,174 |
Stockholders' equity: | ' | ' |
Common stock, $0.01 par value. Authorized 32,000,000 shares; 15,616,665 shares issued as of November 2, 2013 and 15,295,780 shares issued as of February 2, 2013; 15,450,915 shares outstanding as of November 2, 2013 and 15,130,030 outstanding as of February 2, 2013 | 150 | 149 |
Paid-in-capital | 82,048 | 80,380 |
Retained earnings | 114,606 | 115,607 |
Treasury stock, at cost; 165,750 shares as of November 2, 2013 and February 2, 2013 | -165 | -165 |
Total stockholders' equity | 196,639 | 195,971 |
Commitments and contingencies (note 10) | ' | ' |
Total liabilities and stockholders' equity | $295,869 | $292,145 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets | ' | ' |
Property and equipment, accumulated depreciation and amortization (in dollars) | $156,635 | $142,770 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, Authorized shares | 32,000,000 | 32,000,000 |
Common stock, shares issued | 15,616,665 | 15,295,780 |
Common stock, shares outstanding | 15,450,915 | 15,130,030 |
Treasury stock, shares | 165,750 | 165,750 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Condensed Consolidated Statements of Operations | ' | ' | ' | ' |
Net sales | $145,362 | $148,985 | $465,011 | $478,997 |
Cost of sales | 92,074 | 97,808 | 294,878 | 308,739 |
Gross profit | 53,288 | 51,177 | 170,133 | 170,258 |
Selling, general and administrative expenses | -52,148 | -51,132 | -155,976 | -154,733 |
Depreciation and amortization | -5,454 | -5,970 | -16,716 | -18,153 |
Asset impairment | -556 | -660 | -1,237 | -660 |
Gain on sale of former distribution center | 1,526 | ' | 1,526 | ' |
Loss from operations | -3,344 | -6,585 | -2,270 | -3,288 |
Interest income | 78 | 66 | 213 | 194 |
Interest expense | -49 | -50 | -145 | -163 |
Loss before income tax benefit | -3,315 | -6,569 | -2,202 | -3,257 |
Income tax benefit | -1,643 | -2,869 | -1,201 | -1,736 |
Net loss | ($1,672) | ($3,700) | ($1,001) | ($1,521) |
Basic net loss per common share (in dollars per share) | ($0.11) | ($0.25) | ($0.07) | ($0.10) |
Diluted net loss per common share (in dollars per share) | ($0.11) | ($0.25) | ($0.07) | ($0.10) |
Weighted average number of shares outstanding | ' | ' | ' | ' |
Basic (in shares) | 14,815,107 | 14,676,817 | 14,789,320 | 14,661,910 |
Diluted (in shares) | 14,815,107 | 14,676,817 | 14,789,320 | 14,661,910 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 |
Operating activities: | ' | ' |
Net loss | ($1,001) | ($1,521) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 16,716 | 18,153 |
Asset impairment | 1,237 | 660 |
Gain on sale of former distribution center | -1,526 | ' |
Loss on disposal of property and equipment | 1 | 14 |
Deferred income taxes | -1,002 | -601 |
Noncash stock-based compensation expense | 2,572 | 1,980 |
Excess tax benefits from stock-based payment arrangements | 294 | 463 |
Changes in assets and liabilities: | ' | ' |
Inventory | 18,270 | -15,174 |
Prepaid and other current assets | -2,089 | -478 |
Other assets | 41 | 42 |
Accounts payable | -3,761 | -11,843 |
Accrued expenses and other long-term liabilities | 1,020 | 917 |
Accrued compensation | 3,951 | -1,615 |
Income tax receivable/payable | -602 | 7,850 |
Layaway deposits | 1,737 | 1,941 |
Net cash provided by operating activities | 35,858 | 788 |
Investing activities: | ' | ' |
Sales/redemptions of investment securities | 3,736 | 51 |
Purchases of investment securities | -23,481 | ' |
Proceeds from sale of former distribution center | 2,941 | ' |
Purchases of property and equipment | -7,829 | -5,798 |
Net cash used in investing activities | -24,633 | -5,747 |
Financing activities: | ' | ' |
Excess tax benefits from stock-based payment arrangements | -294 | -463 |
Proceeds from the exercise of stock options | 44 | ' |
Shares acquired to settle withholding taxes on the vesting of nonvested restricted stock | -653 | -369 |
Net cash used in financing activities | -903 | -832 |
Net increase (decrease) in cash and cash equivalents | 10,322 | -5,791 |
Cash and cash equivalents: | ' | ' |
Beginning of period | 37,263 | 41,986 |
End of period | 47,585 | 36,195 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid for interest | 95 | 109 |
Cash payments (refunds) of income taxes | 404 | -8,985 |
Supplemental disclosures of noncash investing activities: | ' | ' |
Increase (decrease) in accrual for purchases of property and equipment | $109 | ($1,315) |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Nov. 02, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
Citi Trends, Inc. and its subsidiary (the “Company”) operate as a value-priced retailer of urban fashion apparel and accessories for the entire family. As of November 2, 2013, the Company operated 505 stores in 29 states. | |
The condensed consolidated balance sheet as of November 2, 2013, the condensed consolidated statements of operations for the thirty-nine and thirteen week periods ended November 2, 2013 and October 27, 2012, and the condensed consolidated statements of cash flows for the thirty-nine week periods ended November 2, 2013 and October 27, 2012 have been prepared by the Company without audit. The condensed consolidated balance sheet as of February 2, 2013 has been derived from the audited financial statements as of that date, but does not include all required year-end disclosures. In the opinion of management, such statements include all adjustments considered necessary to present fairly the Company’s financial position as of November 2, 2013 and February 2, 2013, and its results of operations and cash flows for all periods presented. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended February 2, 2013. | |
The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. Operating results for the interim periods ended November 2, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ending February 1, 2014. | |
The following contains references to years 2013 and 2012, which represent fiscal years ending or ended on February 1, 2014 and February 2, 2013, respectively. Fiscal 2013 has a 52-week accounting period and fiscal 2012 had a 53-week accounting period. |
Use_of_Estimates
Use of Estimates | 9 Months Ended |
Nov. 02, 2013 | |
Use of Estimates | ' |
Use of Estimates | ' |
2. Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and use assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
The most significant estimates made by management include those used in the valuation of inventory, property and equipment, self-insurance liabilities, leases and income taxes. Management periodically evaluates estimates used in the preparation of the consolidated financial statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based on such periodic evaluations. |
Cash_and_Cash_EquivalentsConce
Cash and Cash Equivalents/Concentration of Credit Risk | 9 Months Ended |
Nov. 02, 2013 | |
Cash and Cash Equivalents/Concentration of Credit Risk | ' |
Cash and Cash Equivalents/Concentration of Credit Risk | ' |
3. Cash and Cash Equivalents/Concentration of Credit Risk | |
For purposes of the condensed consolidated balance sheets and condensed consolidated statements of cash flows, the Company considers all highly liquid investments with maturities at date of purchase of three months or less to be cash equivalents. Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents. The Company places its cash and cash equivalents in what it believes to be high credit quality banks and institutional money market funds. The Company maintains cash accounts that exceed federally insured limits. |
Earnings_per_Share
Earnings per Share | 9 Months Ended | |||||
Nov. 02, 2013 | ||||||
Earnings per Share | ' | |||||
Earnings per Share | ' | |||||
4. Earnings per Share | ||||||
Basic earnings per common share amounts are calculated using the weighted average number of common shares outstanding for the period. Diluted earnings per common share amounts are calculated using the weighted average number of common shares outstanding plus the additional dilution for all potentially dilutive securities, such as nonvested restricted stock and stock options. During loss periods, diluted loss per share amounts are based on the weighted average number of common shares outstanding, because the inclusion of common stock equivalents would be antidilutive. | ||||||
The dilutive effect of stock-based compensation arrangements is accounted for using the treasury stock method. This method assumes that the proceeds the Company receives from the exercise of stock options are used to repurchase common shares in the market. The Company includes as assumed proceeds the amount of compensation cost attributed to future services and not yet recognized, and the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of outstanding options and vesting of nonvested restricted stock. For the thirty-nine weeks ended November 2, 2013 and October 27, 2012, there were 43,000 and 46,000 stock options, respectively, and 619,000 and 393,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution. For the thirteen weeks ended November 2, 2013 and October 27, 2012, there were 36,000 and 48,000 stock options, respectively, and 639,000 and 476,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution. | ||||||
The following table provides a reconciliation of the average number of common shares outstanding used to calculate basic earnings per share to the number of common shares and common stock equivalents outstanding used in calculating diluted earnings per share for the thirty-nine and thirteen week periods ended November 2, 2013 and October 27, 2012: | ||||||
Thirty-Nine Weeks Ended | ||||||
November 2, 2013 | October 27, 2012 | |||||
Average number of common shares outstanding | 14,789,320 | 14,661,910 | ||||
Incremental shares from assumed exercises of stock options | — | — | ||||
Incremental shares from assumed vesting of nonvested restricted stock | — | — | ||||
Average number of common shares and common stock equivalents outstanding | 14,789,320 | 14,661,910 | ||||
Thirteen Weeks Ended | ||||||
November 2, 2013 | October 27, 2012 | |||||
Average number of common shares outstanding | 14,815,107 | 14,676,817 | ||||
Incremental shares from assumed exercises of stock options | — | — | ||||
Incremental shares from assumed vesting of nonvested restricted stock | — | — | ||||
Average number of common shares and common stock equivalents outstanding | 14,815,107 | 14,676,817 |
Fair_Value_Measurement
Fair Value Measurement | 9 Months Ended | |||||||||||||
Nov. 02, 2013 | ||||||||||||||
Fair Value Measurement | ' | |||||||||||||
Fair Value Measurement | ' | |||||||||||||
5. Fair Value Measurement | ||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market at the measurement date. Fair value is established according to a hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: | ||||||||||||||
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | ||||||||||||||
Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | ||||||||||||||
Level 3: Unobservable inputs are used when little or no market data is available. Level 3 inputs are given the lowest priority in the fair value hierarchy. | ||||||||||||||
As of November 2, 2013, the Company’s investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands): | ||||||||||||||
Amortized Cost | Gross | Gross | Fair Market | |||||||||||
Unrealized | Unrealized | Value | ||||||||||||
Gains | Losses | |||||||||||||
Short-term: | ||||||||||||||
Obligations of states and municipalities (Level 2) | $ | 2,407 | $ | 1 | $ | — | $ | 2,408 | ||||||
Obligations of the U. S. Treasury (Level 1) | 4,999 | 8 | — | 5,007 | ||||||||||
Bank certificates of deposit (Level 2) | 10,812 | — | (1 | ) | 10,811 | |||||||||
$ | 18,218 | $ | 9 | $ | (1 | ) | $ | 18,226 | ||||||
Long-term: | ||||||||||||||
Obligations of the U. S. Treasury (Level 1) | $ | 15,177 | $ | 15 | $ | (1 | ) | $ | 15,191 | |||||
Bank certificates of deposit (Level 2) | 4,875 | — | — | 4,875 | ||||||||||
$ | 20,052 | $ | 15 | $ | (1 | ) | $ | 20,066 | ||||||
The amortized cost and fair market value of investment securities as of November 2, 2013 by contractual maturity are as follows (in thousands): | ||||||||||||||
Amortized | Fair Market | |||||||||||||
Cost | Value | |||||||||||||
Mature in one year or less | $ | 18,218 | $ | 18,226 | ||||||||||
Mature after one year through five years | 20,052 | 20,066 | ||||||||||||
$ | 38,270 | $ | 38,292 | |||||||||||
As of February 2, 2013, the Company’s investment securities were classified as held-to-maturity and consisted of the following (in thousands): | ||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||
Cost | Unrealized | Unrealized | Market | |||||||||||
Gains | Losses | Value | ||||||||||||
Short-term: | ||||||||||||||
Obligations of the U. S. Treasury (Level 1) | $ | 4,993 | $ | 39 | $ | — | $ | 5,032 | ||||||
Obligations of states and municipalities (Level 2) | 1,731 | 9 | — | 1,740 | ||||||||||
Bank certificates of deposit (Level 2) | 6,047 | — | — | 6,047 | ||||||||||
$ | 12,771 | $ | 48 | $ | — | $ | 12,819 | |||||||
Long-term: | ||||||||||||||
Bank certificates of deposit (Level 2) | $ | 5,754 | $ | 6 | $ | — | $ | 5,760 | ||||||
The amortized cost and fair market value of investment securities as of February 2, 2013 by contractual maturity were as follows (in thousands): | ||||||||||||||
Amortized | Fair | |||||||||||||
Cost | Market | |||||||||||||
Value | ||||||||||||||
Mature in one year or less | $ | 12,771 | $ | 12,819 | ||||||||||
Mature after one year through five years | 5,754 | 5,760 | ||||||||||||
$ | 18,525 | $ | 18,579 | |||||||||||
There were no changes among the levels in the thirty-nine weeks ended November 2, 2013. | ||||||||||||||
Fair market values of Level 2 investments are determined by management with the assistance of a third party pricing service. Because quoted prices in active markets for identical assets are not available, these prices are determined by the third party pricing service using observable market information such as quotes from less active markets and quoted prices of similar securities. |
Impairment_of_LongLived_Assets
Impairment of Long-Lived Assets | 9 Months Ended |
Nov. 02, 2013 | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | ' |
6. Impairment of Long-Lived Assets | |
If facts and circumstances indicate that a long-lived asset may be impaired, the carrying value is reviewed. If this review indicates that the carrying value of the asset will not be recovered as determined based on projected undiscounted cash flows related to the asset over its remaining life, the carrying value of the asset is reduced to its estimated fair value. Non-cash impairment expense related to leasehold improvements and fixtures and equipment at underperforming stores totaled $1.2 million and $0.6 million, respectively, in the thirty-nine and thirteen-week periods ended November 2, 2013. Impairment expense totaled $0.7 million in the thirty-nine and thirteen-week periods ended October 27, 2012. |
Revolving_Line_of_Credit
Revolving Line of Credit | 9 Months Ended |
Nov. 02, 2013 | |
Revolving Line of Credit | ' |
Revolving Line of Credit | ' |
7. Revolving Line of Credit | |
On October 27, 2011, the Company entered into a five-year, $50 million credit facility with Bank of America to replace its prior $20 million credit facility. The facility includes a $25 million uncommitted “accordion” feature that under certain circumstances could allow the Company to increase the size of the facility to $75 million. Borrowings, if any, under the facility will bear interest (a) for LIBOR Rate Loans, at LIBOR plus 1.5%, or (b) for Base Rate Loans, at a rate equal to the highest of (i) the prime rate plus 0.5%, (ii) the Federal Funds Rate plus 1.0%, or (iii) LIBOR plus 1.5%. The facility is secured by the Company’s inventory, accounts receivable and related assets, but not its real estate, fixtures and equipment, and it contains one financial covenant, a fixed charge coverage ratio, which is applicable and tested only in certain circumstances. The facility has an unused commitment fee of 0.25% and permits the payment of cash dividends subject to certain limitations, including a requirement that there were no borrowings outstanding in the 30 days prior to the dividend payment and no borrowings are expected in the 30 days subsequent to the payment. The Company has had no borrowings under either the existing or prior facility. |
Income_Taxes
Income Taxes | 9 Months Ended |
Nov. 02, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
8. Income Taxes | |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |
For the thirty-nine week periods ended November 2, 2013 and October 27, 2012, the Company has utilized the discrete effective tax rate method, as allowed by ASC 740-270, “Income Taxes - Interim Reporting,” to calculate income taxes. Under the discrete method, the Company determines its tax expense based upon actual results as if the interim period were an annual period. ASC 740 requires companies to apply their estimated full-year tax rate on a year-to-date basis in each interim period unless the estimated full-year tax rate is not reliably predictable. For the thirty-nine-week periods ended November 2, 2013 and October 27, 2012, the Company concluded that the use of the discrete method was more appropriate than the annual effective tax rate method, because the annual rate method would not be reliable due to its sensitivity to minimal changes in forecasted annual pre-tax earnings. | |
The effective tax rates reflected in income tax benefit for the thirty-nine and thirteen-week periods ended November 2, 2013 and October 27, 2012 include the benefit of various tax credits. Such tax credits are higher during the interim periods of fiscal 2013 than 2012 because they include Work Opportunity Tax Credits (WOTC) which have been available throughout fiscal 2013, but were not extended by Congress in fiscal 2012 until after the third quarter. The benefit from tax credits in the thirty-nine weeks ended November 2, 2013 is partially offset by income tax expense of $0.4 million which resulted from an increase in a valuation allowance in the second quarter of 2013. Such increase occurred when the Company concluded that its ability to utilize certain tax credits in one state was no longer more likely than not. |
Other_LongTerm_Liabilities
Other Long-Term Liabilities | 9 Months Ended | |||||||
Nov. 02, 2013 | ||||||||
Other Long-Term Liabilities | ' | |||||||
Other Long-Term Liabilities | ' | |||||||
9. Other Long-Term Liabilities | ||||||||
The components of other long-term liabilities as of November 2, 2013 and February 2, 2013 are as follows (in thousands): | ||||||||
November 2, | February 2, | |||||||
2013 | 2013 | |||||||
Deferred rent | $ | 2,389 | $ | 3,342 | ||||
Tenant improvement allowances | 4,339 | 5,384 | ||||||
Other | 1,688 | 1,534 | ||||||
$ | 8,416 | $ | 10,260 |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Nov. 02, 2013 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
10. Commitments and Contingencies | |
On August 12, 2011, the Company received a letter of determination from the U.S. Equal Employment Opportunity Commission (the “EEOC”) commencing a conciliation process regarding alleged discrimination against males by the Company in its hiring and promotion practices during the years 2004 through 2006. In its letter of determination, the EEOC sought recovery in the amount of $0.2 million on behalf of a former male employee and in the additional amount of $3.8 million in a settlement fund for a class of unidentified males who sought or considered seeking manager or assistant manager positions in the Company’s stores. The EEOC also seeks certain undertakings by the Company with regard to its employment policies and procedures and a reporting obligation to the EEOC with respect to the Company’s compliance with these undertakings. | |
The Company has not received full documentation or information from the EEOC in support of its letter of determination, but has undertaken its own internal analysis of the EEOC’s claims and defenses to such claims and has had discussions with the EEOC in that regard. Following discussions with the EEOC regarding possible settlement, the EEOC has proposed a settlement amount to be paid by the Company of $2.5 million, with any unclaimed funds following efforts to identify and compensate claimants to be directed to one or more charities. In the interest of reaching a satisfactory conciliation agreement with the EEOC, the Company has proposed a total economic settlement offer of $1.0 million to cover all claims and the expenses of administering and complying with the settlement (excluding professional fees), with no reversion of unclaimed funds back to the Company. The Company continues to await the EEOC’s response to the Company’s most recent proposal regarding settlement. The Company is also evaluating other aspects of the conciliation process established by the EEOC. | |
On February 24, 2012, a suit was filed in the United States District Court for the Northern District of Alabama, Middle Division, by certain individuals as a purported collective action on behalf of current and former employees of the Company holding store managerial positions. The plaintiffs allege that store managers have been improperly classified as exempt from the obligation to pay overtime in violation of the Fair Labor Standards Act. The Company intends to vigorously defend the claims that have been asserted in this lawsuit. The trial court conditionally certified a class of store managers and ruled that the store managers are not subject to arbitration. The size and scope of the class remains undetermined, however, and the decision on arbitration is expected to be subject to appellate review. Also, notwithstanding the initial actions by the trial court, the conditional class may be subject to decertification at the close of discovery. Because no discovery has been conducted to date, the Company is unable to determine the probability of any particular outcome and it is not reasonably possible to estimate a range of loss with respect to this matter. Accordingly, no accrual for costs has been recorded, and the potential impact of this matter on the Company’s financial position, results of operations and cash flows cannot be determined at this time. | |
The Company from time to time is also involved in various other legal proceedings incidental to the conduct of its business, including claims by customers, employees or former employees. Once it becomes probable that the Company will incur costs in connection with a legal proceeding and such costs can be reasonably estimated, it establishes appropriate reserves. While legal proceedings are subject to uncertainties and the outcome of any such matter is not predictable, the Company is not aware of any other legal proceedings pending or threatened against it that it expects to have a material adverse effect on its financial condition, results of operations or liquidity. |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 9 Months Ended | |||||
Nov. 02, 2013 | ||||||
Earnings per Share | ' | |||||
Schedule of reconciliation of the number of average common shares outstanding used to calculate basic and diluted earnings per share | ' | |||||
Thirty-Nine Weeks Ended | ||||||
November 2, 2013 | October 27, 2012 | |||||
Average number of common shares outstanding | 14,789,320 | 14,661,910 | ||||
Incremental shares from assumed exercises of stock options | — | — | ||||
Incremental shares from assumed vesting of nonvested restricted stock | — | — | ||||
Average number of common shares and common stock equivalents outstanding | 14,789,320 | 14,661,910 | ||||
Thirteen Weeks Ended | ||||||
November 2, 2013 | October 27, 2012 | |||||
Average number of common shares outstanding | 14,815,107 | 14,676,817 | ||||
Incremental shares from assumed exercises of stock options | — | — | ||||
Incremental shares from assumed vesting of nonvested restricted stock | — | — | ||||
Average number of common shares and common stock equivalents outstanding | 14,815,107 | 14,676,817 |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 9 Months Ended | |||||||||||||
Nov. 02, 2013 | ||||||||||||||
Fair Value Measurement | ' | |||||||||||||
Schedule of investment securities classified as held-to-maturity | ' | |||||||||||||
As of November 2, 2013, the Company’s investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands): | ||||||||||||||
Amortized Cost | Gross | Gross | Fair Market | |||||||||||
Unrealized | Unrealized | Value | ||||||||||||
Gains | Losses | |||||||||||||
Short-term: | ||||||||||||||
Obligations of states and municipalities (Level 2) | $ | 2,407 | $ | 1 | $ | — | $ | 2,408 | ||||||
Obligations of the U. S. Treasury (Level 1) | 4,999 | 8 | — | 5,007 | ||||||||||
Bank certificates of deposit (Level 2) | 10,812 | — | (1 | ) | 10,811 | |||||||||
$ | 18,218 | $ | 9 | $ | (1 | ) | $ | 18,226 | ||||||
Long-term: | ||||||||||||||
Obligations of the U. S. Treasury (Level 1) | $ | 15,177 | $ | 15 | $ | (1 | ) | $ | 15,191 | |||||
Bank certificates of deposit (Level 2) | 4,875 | — | — | 4,875 | ||||||||||
$ | 20,052 | $ | 15 | $ | (1 | ) | $ | 20,066 | ||||||
As of February 2, 2013, the Company’s investment securities were classified as held-to-maturity and consisted of the following (in thousands): | ||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||
Cost | Unrealized | Unrealized | Market | |||||||||||
Gains | Losses | Value | ||||||||||||
Short-term: | ||||||||||||||
Obligations of the U. S. Treasury (Level 1) | $ | 4,993 | $ | 39 | $ | — | $ | 5,032 | ||||||
Obligations of states and municipalities (Level 2) | 1,731 | 9 | — | 1,740 | ||||||||||
Bank certificates of deposit (Level 2) | 6,047 | — | — | 6,047 | ||||||||||
$ | 12,771 | $ | 48 | $ | — | $ | 12,819 | |||||||
Long-term: | ||||||||||||||
Bank certificates of deposit (Level 2) | $ | 5,754 | $ | 6 | $ | — | $ | 5,760 | ||||||
Schedule of amortized cost and fair market value of investment securities by contractual maturity | ' | |||||||||||||
The amortized cost and fair market value of investment securities as of November 2, 2013 by contractual maturity are as follows (in thousands): | ||||||||||||||
Amortized | Fair Market | |||||||||||||
Cost | Value | |||||||||||||
Mature in one year or less | $ | 18,218 | $ | 18,226 | ||||||||||
Mature after one year through five years | 20,052 | 20,066 | ||||||||||||
$ | 38,270 | $ | 38,292 | |||||||||||
The amortized cost and fair market value of investment securities as of February 2, 2013 by contractual maturity were as follows (in thousands): | ||||||||||||||
Amortized | Fair | |||||||||||||
Cost | Market | |||||||||||||
Value | ||||||||||||||
Mature in one year or less | $ | 12,771 | $ | 12,819 | ||||||||||
Mature after one year through five years | 5,754 | 5,760 | ||||||||||||
$ | 18,525 | $ | 18,579 |
Other_LongTerm_Liabilities_Tab
Other Long-Term Liabilities (Tables) | 9 Months Ended | |||||||
Nov. 02, 2013 | ||||||||
Other Long-Term Liabilities | ' | |||||||
Schedule of components of other long-term liabilities | ' | |||||||
The components of other long-term liabilities as of November 2, 2013 and February 2, 2013 are as follows (in thousands): | ||||||||
November 2, | February 2, | |||||||
2013 | 2013 | |||||||
Deferred rent | $ | 2,389 | $ | 3,342 | ||||
Tenant improvement allowances | 4,339 | 5,384 | ||||||
Other | 1,688 | 1,534 | ||||||
$ | 8,416 | $ | 10,260 |
Basis_of_Presentation_Details
Basis of Presentation (Details) | 12 Months Ended | ||
Feb. 01, 2014 | Feb. 02, 2013 | Nov. 02, 2013 | |
item | |||
Basis of Presentation | ' | ' | ' |
Number of stores operated | ' | ' | 505 |
Number of states in which company operates | ' | ' | 29 |
Length of fiscal year | '364 days | '371 days | ' |
Earnings_per_Share_Details
Earnings per Share (Details) | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | |
Reconciliation of average number of common shares outstanding used to calculate basic and diluted earnings per share | ' | ' | ' | ' |
Average number of common shares outstanding | 14,815,107 | 14,676,817 | 14,789,320 | 14,661,910 |
Average number of common shares and common stock equivalents outstanding | 14,815,107 | 14,676,817 | 14,789,320 | 14,661,910 |
Stock options | ' | ' | ' | ' |
Antidilutive securities | ' | ' | ' | ' |
Shares excluded from the calculation of diluted earnings per share | 36,000 | 48,000 | 43,000 | 46,000 |
Restricted stock | ' | ' | ' | ' |
Antidilutive securities | ' | ' | ' | ' |
Shares excluded from the calculation of diluted earnings per share | 639,000 | 476,000 | 619,000 | 393,000 |
Fair_Value_Measurement_Details
Fair Value Measurement (Details) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Investment securities classified as held to maturity | ' | ' |
Amortized Cost | $38,270 | $18,525 |
Total Fair Market Value | 38,292 | 18,579 |
Short-term: | ' | ' |
Investment securities classified as held to maturity | ' | ' |
Amortized Cost | 18,218 | 12,771 |
Gross Unrealized Gains | 9 | 48 |
Gross Unrealized Losses | -1 | ' |
Total Fair Market Value | 18,226 | 12,819 |
Short-term: | Obligations of the U.S. Treasury | Level 1 | ' | ' |
Investment securities classified as held to maturity | ' | ' |
Amortized Cost | 4,999 | 4,993 |
Gross Unrealized Gains | 8 | 39 |
Total Fair Market Value | 5,007 | 5,032 |
Short-term: | Obligations of states and municipalities | Level 2 | ' | ' |
Investment securities classified as held to maturity | ' | ' |
Amortized Cost | 2,407 | 1,731 |
Gross Unrealized Gains | 1 | 9 |
Total Fair Market Value | 2,408 | 1,740 |
Short-term: | Bank certificates of deposit | Level 2 | ' | ' |
Investment securities classified as held to maturity | ' | ' |
Amortized Cost | 10,812 | 6,047 |
Gross Unrealized Losses | -1 | ' |
Total Fair Market Value | 10,811 | 6,047 |
Long-term: | ' | ' |
Investment securities classified as held to maturity | ' | ' |
Amortized Cost | 20,052 | ' |
Gross Unrealized Gains | 15 | ' |
Gross Unrealized Losses | -1 | ' |
Total Fair Market Value | 20,066 | ' |
Long-term: | Obligations of the U.S. Treasury | Level 1 | ' | ' |
Investment securities classified as held to maturity | ' | ' |
Amortized Cost | 15,177 | ' |
Gross Unrealized Gains | 15 | ' |
Gross Unrealized Losses | -1 | ' |
Total Fair Market Value | 15,191 | ' |
Long-term: | Bank certificates of deposit | Level 2 | ' | ' |
Investment securities classified as held to maturity | ' | ' |
Amortized Cost | 4,875 | 5,754 |
Gross Unrealized Gains | ' | 6 |
Total Fair Market Value | $4,875 | $5,760 |
Fair_Value_Measurement_Details1
Fair Value Measurement (Details 2) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost | ' | ' |
Mature in one year or less | $18,218 | $12,771 |
Mature after one year through five years | 20,052 | 5,754 |
Total | 38,270 | 18,525 |
Fair Market Value | ' | ' |
Mature in one year or less | 18,226 | 12,819 |
Mature after one year through five years | 20,066 | 5,760 |
Total Fair Market Value | 38,292 | 18,579 |
Changes among the fair value levels | ' | ' |
Changes between Level 1 to Level 2, Assets | 0 | ' |
Changes between Level 2 to Level 1, Assets | 0 | ' |
Changes between Level 1 to Level 2, Liabilities | 0 | ' |
Changes between Level 2 to Level 1, Liabilities | $0 | ' |
Impairment_of_LongLived_Assets1
Impairment of Long-Lived Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Impairment of Long-Lived Assets | ' | ' | ' | ' |
Non-cash impairment expense related to leasehold improvements and fixtures and equipment | $556 | $660 | $1,237 | $660 |
Revolving_Line_of_Credit_Detai
Revolving Line of Credit (Details) (USD $) | 1 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Oct. 31, 2011 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | Oct. 27, 2011 |
Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Prior credit facility | Prior credit facility | |
item | LIBOR Rate Loans | LIBOR | Bank of America's prime rate | Federal Funds Rate | ||||
Base Rate Loans | Base Rate Loans | Base Rate Loans | ||||||
Revolving Line of Credit | ' | ' | ' | ' | ' | ' | ' | ' |
Term of credit facility | '5 years | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | $50 | ' | ' | ' | ' | ' | $20 |
Borrowing capacity, accordion feature | ' | 25 | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity including accordion expansion | ' | 75 | ' | ' | ' | ' | ' | ' |
Variable interest rate basis | ' | ' | 'LIBOR | 'LIBOR | 'prime rate | 'Federal Funds Rate | ' | ' |
Margin added to variable rate (as a percent) | ' | ' | 1.50% | 1.50% | 0.50% | 1.00% | ' | ' |
Number of covenants | ' | 1 | ' | ' | ' | ' | ' | ' |
Unused commitment fee (as a percent) | ' | 0.25% | ' | ' | ' | ' | ' | ' |
Amount of outstanding borrowings prior to cash dividend payment within specified period, per covenant | ' | 0 | ' | ' | ' | ' | ' | ' |
Period prior to cash dividend payment when no borrowings may be outstanding, per covenant | ' | '30 days | ' | ' | ' | ' | ' | ' |
Amount of expected borrowings subsequent to cash dividend payment within specified period, per covenant | ' | 0 | ' | ' | ' | ' | ' | ' |
Period subsequent to cash dividend payment when no borrowings may be expected, per covenant | ' | '30 days | ' | ' | ' | ' | ' | ' |
Borrowings outstanding | ' | $0 | ' | ' | ' | ' | $0 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Aug. 03, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Income Taxes | ' | ' | ' | ' | ' |
Income tax benefit | ($1,643) | $400 | ($2,869) | ($1,201) | ($1,736) |
Other_LongTerm_Liabilities_Det
Other Long-Term Liabilities (Details) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||
Other Long-Term Liabilities | ' | ' |
Deferred rent | $2,389 | $3,342 |
Tenant improvement allowances | 4,339 | 5,384 |
Other | 1,688 | 1,534 |
Other long-term liabilities total | $8,416 | $10,260 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Aug. 31, 2011 | Nov. 02, 2013 |
Current and former employees | United States District Court for the Northern District of Alabama, Middle Division | ' | ' |
Commitments and Contingencies | ' | ' |
Accrual for costs | ' | $0 |
EEOC | ' | ' |
Commitments and Contingencies | ' | ' |
Amount of settlement proposed by the Company | ' | 2.5 |
EEOC | Former male employee | ' | ' |
Commitments and Contingencies | ' | ' |
Amount of recovery or settlement sought in regulatory matter | 0.2 | ' |
EEOC | Class of unidentified males | ' | ' |
Commitments and Contingencies | ' | ' |
Amount of recovery or settlement sought in regulatory matter | 3.8 | ' |
Amount of settlement proposed by the Company | ' | $1 |