Exhibit 99.1
| FOR: |
| Christopher & Banks Corporation |
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| APPROVED BY: |
| Bill Prange |
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| Chairman and Chief Executive Officer |
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| (763) 551-5000 |
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| CONTACT: |
| Investor Relations: |
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| Cara O’Brien/Melissa Myron |
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| Financial Dynamics |
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| (212) 850-5600 |
FOR IMMEDIATE RELEASE
CHRISTOPHER & BANKS CORPORATION REPORTS
FULL YEAR AND FOURTH QUARTER RESULTS
~ Full Year Diluted EPS Increases to $1.02 ~
Minneapolis, MN, April 7, 2004 – Christopher & Banks Corporation (NYSE: CBK) today reported results for the fiscal year and fourth quarter ended February 28, 2004.
For the fiscal year, net sales increased 15% to $390.7 million from $338.8 million last year, while same-store sales declined 2%. Net income increased to $39.3 million, or $1.02 per diluted share, compared to net income of $38.5 million, or $0.97 per diluted share, for the year ended March 1, 2003.
Net sales in the fourth quarter increased 5% to $100.4 million compared to $95.4 million in the prior year period, while same-store sales declined 9%. Net income for the fourth quarter was $8.3 million, or $0.22 per diluted share, compared to $10.5 million, or $0.27 per diluted share, in the year ago period.
As of February 28, 2004, the Company operated 534 stores compared to 438 stores on March 1, 2003.
Bill Prange, Chairman and Chief Executive Officer, commented, “Our fourth quarter earnings per diluted share of $0.22 was within the range of our previously announced expectations and we achieved record earnings per diluted share for the full year of $1.02.
“While the second half of the year was challenging, particularly in the sweater category, we were able to generate a 16.2% operating margin for the full year. At the same time, we expanded our store base over 20% by opening a total of 97 new stores in fiscal 2004, including 68 Christopher & Banks stores and 29 C.J. Banks stores. In addition, we remain comfortable
with our plans to open approximately 100 new stores in fiscal 2005.
Mr. Prange concluded, “Our business continues to generate significant cash flow. This enabled us to fund approximately $22 million of capital expenditures, initiate a regular quarterly cash dividend of $0.04 per share and repurchase approximately $9 million of our common stock during the year. All of this was accomplished while growing our balance of cash and short term investments from $64.1 million to $88.8 million.”
The Company repurchased 294,000 shares of its common stock under the stock repurchase program authorized by the Company’s Board of Directors in February 2004. The total cost, including commissions, for shares repurchased was $4.9 million, leaving $20.1 million available under the current authorization.
The Company will discuss its fourth quarter results in a conference call scheduled for today, April 7, 2004, 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 547 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 To Follow)
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CHRISTOPHER & BANKS CORPORATION
COMPARATIVE INCOME STATEMENT
FOR THE FOURTH QUARTER AND YEAR ENDED FEBRUARY 28, 2004
AND MARCH 1, 2003
(in thousands, except per share data)
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| Quarter Ended |
| Year Ended |
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| February 28, 2004 |
| March 1, 2003 |
| February 28, 2004 |
| March 1, 2003 |
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Net sales |
| $ | 100,355 |
| $ | 95,392 |
| $ | 390,723 |
| $ | 338,756 |
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Merchandise, buying and occupancy |
| 62,845 |
| 55,268 |
| 226,620 |
| 191,129 |
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Gross profit |
| 37,510 |
| 40,124 |
| 164,103 |
| 147,627 |
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Selling, general and administrative |
| 21,196 |
| 20,921 |
| 89,316 |
| 76,672 |
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Depreciation and amortization |
| 3,137 |
| 2,570 |
| 11,629 |
| 9,387 |
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Operating income |
| 13,177 |
| 16,633 |
| 63,158 |
| 61,568 |
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Interest income |
| 325 |
| 276 |
| 873 |
| 895 |
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Income before income taxes |
| 13,502 |
| 16,909 |
| 64,031 |
| 62,463 |
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Income tax provision |
| 5,187 |
| 6,450 |
| 24,691 |
| 23,988 |
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Net income |
| $ | 8,315 |
| $ | 10,459 |
| $ | 39,340 |
| $ | 38,475 |
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Basic earnings per share: |
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Net income |
| $ | 0.22 |
| $ | 0.27 |
| $ | 1.05 |
| $ | 1.00 |
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Basic shares outstanding |
| 37,782 |
| 38,433 |
| 37,549 |
| 38,396 |
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Diluted earnings per share: |
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Net income |
| $ | 0.22 |
| $ | 0.27 |
| $ | 1.02 |
| $ | 0.97 |
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Diluted shares outstanding |
| 38,418 |
| 39,263 |
| 38,403 |
| 39,736 |
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CHRISTOPHER & BANKS CORPORATION
COMPARATIVE BALANCE SHEET
(in thousands)
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| February 28, 2004 |
| March 1, 2003 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 34,955 |
| $ | 8,279 |
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Short-term investments |
| 53,844 |
| 55,812 |
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Merchandise inventory |
| 31,300 |
| 24,134 |
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Other current assets |
| 6,243 |
| 8,665 |
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Total current assets |
| 126,342 |
| 96,890 |
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Property, equipment and improvements, net |
| 80,122 |
| 69,164 |
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Other assets |
| 83 |
| 303 |
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Total assets |
| $ | 206,547 |
| $ | 166,357 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 6,823 |
| $ | 4,717 |
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Accrued liabilities |
| 13,479 |
| 13,532 |
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Total current liabilities |
| 20,302 |
| 18,249 |
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Other liabilities |
| 8,443 |
| 4,808 |
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Stockholders’ equity: |
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Common stock |
| 422 |
| 416 |
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Additional paid-in capital |
| 59,308 |
| 52,233 |
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Retained earnings |
| 143,265 |
| 106,945 |
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Treasury stock |
| (25,193 | ) | (16,294 | ) | ||
Total stockholders’ equity |
| 177,802 |
| 143,300 |
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Total liabilities and stockholders’ equity |
| $ | 206,547 |
| $ | 166,357 |
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# # #
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