Exhibit 99.1
FOR: |
| Christopher & Banks Corporation |
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APPROVED BY: |
| Bill Prange |
For Immediate Release |
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CONTACT: |
| Investor Relations: |
CHRISTOPHER & BANKS CORPORATION REPORTS
THIRD QUARTER RESULTS
Minneapolis, MN, December 23, 2003 – Christopher & Banks Corporation (NYSE: CBK) today reported results for its third quarter and nine months ended November 29, 2003.
For the third quarter, net income increased to $11.4 million, or $0.29 per diluted share, compared with $11.3 million, or $0.28 per diluted share, in the prior year period. Net sales for the third quarter increased 17% to $107.3 million from $91.8 million last year, while same-store sales declined 1% during the quarter.
During the quarter, the Company opened 41 new stores bringing the total number of new stores to 97 for the year. As of November 29, 2003, the Company operated 535 stores including 414 Christopher & Banks stores and 121 C.J. Banks stores.
For the nine months ended November 29, 2003, net income increased 11% to $31.0 million, or $0.81 per diluted share, compared with $28.0 million or $0.70 per diluted share last year. Net sales for the nine-month period increased 19% to $290.4 million from $243.4 million last year, while same-store sales were flat with last year.
Bill Prange, Chairman and Chief Executive Officer of Christopher & Banks Corporation commented, “While the retail environment remained difficult, we were able to generate an increase in earnings per diluted share for both the third quarter and nine month period. In addition, we ended
the quarter with a very strong balance sheet as evidenced by approximately $72 million in cash and short-term investments and no long-term debt. We are pleased that our solid financial position, healthy cash flow and efficient operating structure have allowed us to internally fund our new store growth initiatives.”
Mr. Prange concluded, “We have continued to see a cautious consumer thus far in December. In addition, business has been impacted by snowstorms in many of our market areas and intense competition in our market segment. As such, sales have not been as strong as initially expected and we now expect a decline in December same-store sales in the range of 7% to 8%. While current market conditions make it difficult to accurately predict post-holiday sales trends, we are currently planning for a 3% to 6% decrease in same store sales for the fourth quarter. Using these assumptions, we anticipate earnings per diluted share for the fourth quarter to range from $0.24 to $0.27, compared to $0.27 last year, and earnings per diluted share for the full year to range from $1.05 to $1.08 versus $0.97 in the year ago period.
The Company will discuss its third quarter results in a conference call scheduled for today, December 23, 2003, at 5 p.m. Eastern Time. The conference call will be simultaneously broadcast live over the Internet at http://www.christopherandbanks.com.
Christopher & Banks Corporation is a Minneapolis-based specialty retailer of women’s clothing providing exclusive fashions under the Christopher & Banks and C.J. Banks labels. Currently, the Company operates 535 stores in 42 states. For more information on Christopher & Banks Corporation, visit the Company’s website at www.christopherandbanks.com.
This release contains forward-looking statements regarding future performance of the Company. The achievement of such results is subject to certain risks and uncertainties, including changes in economic, market and weather conditions, the effect of consumer tastes and spending habits, the realization of expected economies gained through the use of private label and direct import merchandise, management of growth and other factors outside the Company’s control, including factors discussed from time to time in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that may arise after the date hereof.
Financial Tables Follow
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CHRISTOPHER & BANKS CORPORATION
COMPARATIVE INCOME STATEMENT
FOR THE THREE AND NINE MONTHS ENDED
NOVEMBER 29, 2003 AND NOVEMBER 30, 2002
(in thousands, except per share data)
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| Three Months Ended |
| Nine Months Ended |
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| November 29, |
| November 30, |
| November 29, |
| November 30, |
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| (Unaudited) |
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Net sales |
| $ | 107,285 |
| $ | 91,750 |
| $ | 290,368 |
| $ | 243,364 |
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Merchandise, buying and occupancy, exclusive of depreciation and amortization shown separately below |
| 62,211 |
| 51,825 |
| 163,775 |
| 135,860 |
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Gross profit, exclusive of depreciation and amortization shown separately below |
| 45,074 |
| 39,925 |
| 126,593 |
| 107,504 |
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Selling, general and administrative |
| 23,629 |
| 19,351 |
| 68,120 |
| 55,752 |
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Depreciation and amortization |
| 3,044 |
| 2,415 |
| 8,492 |
| 6,818 |
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Operating income |
| 18,401 |
| 18,159 |
| 49,981 |
| 44,934 |
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Interest income |
| (150 | ) | (196 | ) | (549 | ) | (619 | ) | ||||
Income before income taxes |
| 18,551 |
| 18,355 |
| 50,530 |
| 45,553 |
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Income tax provision |
| 7,161 |
| 7,067 |
| 19,505 |
| 17,538 |
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Net income |
| $ | 11,390 |
| $ | 11,288 |
| $ | 31,025 |
| $ | 28,015 |
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Basic earnings per share: |
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Net income |
| $ | 0.30 |
| $ | 0.29 |
| $ | 0.83 |
| $ | 0.73 |
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Basic shares outstanding |
| 37,747 |
| 38,666 |
| 37,472 |
| 38,384 |
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Diluted earnings per share: |
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Net income |
| $ | 0.29 |
| $ | 0.28 |
| $ | 0.81 |
| $ | 0.70 |
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Diluted shares outstanding |
| 38,705 |
| 39,746 |
| 38,398 |
| 39,894 |
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CHRISTOPHER & BANKS CORPORATION
COMPARATIVE BALANCE SHEET
(in thousands)
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| November 29, 2003 |
| November 30, 2002 |
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| (Unaudited) |
| (Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 21,157 |
| $ | 34,926 |
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Short-term investments |
| 50,865 |
| 11,992 |
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Merchandise inventories |
| 40,229 |
| 36,659 |
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Other current assets |
| 10,251 |
| 10,984 |
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Total current assets |
| 122,502 |
| 94,561 |
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Property, equipment and improvements, net |
| 78,255 |
| 66,901 |
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Other assets |
| 85 |
| 1,956 |
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Total assets |
| $ | 200,842 |
| $ | 163,418 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 4,599 |
| $ | 898 |
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Accrued liabilities |
| 14,587 |
| 11,845 |
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Income taxes payable |
| 959 |
| 2,284 |
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Total current liabilities |
| 20,145 |
| 15,027 |
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Other liabilities |
| 4,997 |
| 2,737 |
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Stockholders’ equity: |
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Common stock |
| 422 |
| 414 |
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Additional paid-in capital |
| 59,090 |
| 51,754 |
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Retained earnings |
| 136,462 |
| 96,486 |
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Common stock held in treasury |
| (20,274 | ) | (3,000 | ) | ||
Total stockholders’ equity |
| 175,700 |
| 145,654 |
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Total liabilities and stockholders’ equity |
| $ | 200,842 |
| $ | 163,418 |
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