Exhibit 99.1
2400 Xenium Lane North, Plymouth, MN 55441 • (763)551-5000 • Fax (763)551-5198 • www.christopherandbanks.com
FOR: |
| Christopher & Banks Corporation |
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APPROVED BY: |
| Andrew Moller |
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| Executive Vice President and Chief |
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| Financial Officer |
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| (763) 551-5000 |
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CONTACT: |
| Investor Relations: |
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| James Palczynski/Bill Zima |
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| Integrated Corporate Relations |
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| (203) 682-8200 |
CHRISTOPHER & BANKS CORPORATION REPORTS
FOURTH QUARTER AND FULL YEAR RESULTS
Minneapolis, MN, April 5, 2006 – Christopher & Banks Corporation (NYSE: CBK) today reported results for the fourth quarter and fiscal year ended February 25, 2006.
Net sales in the fourth quarter increased 6% to $126.6 million compared to $119.3 million in the prior year period, while same-store sales declined 1%. Net income for the fourth quarter increased 74% to $6.7 million, or $0.18 per diluted share, compared with $3.8 million, or $0.11 per diluted share in the year ago period.
For the fiscal year, net sales increased 12% to $490.5 million from $438.9 million last year, while same-store sales rose 1%. Net income increased 13% to $30.4 million, or $0.84 per diluted share, compared with $27.0 million, or $0.73 per diluted share in the prior year period.
As of February 25, 2006 the Company operated 705 stores compared to 642 stores at February 26, 2005.
Joe Pennington, Chief Executive Officer of Christopher & Banks Corporation commented, “We are pleased to have ended the year on a strong note. We achieved significant improvement in merchandise margins in the fourth quarter, which drove a 72% increase in operating income and a 74% increase in net income. Selling, general and administrative expenses increased by approximately 280 basis points in the fourth quarter due to a combination of factors, including contractual obligations to William Prange, the Company’s former Chief Executive Officer, increased self-insured medical and workers compensation claims and Acorn integration costs, as
well as store salaries and other administrative costs which could not be leveraged with a 1% decline in same-store sales.”
Mr. Pennington concluded, “Our inventories continue to be well controlled and we finished the year with approximately 15% less inventory per store than last year. As we transition through the first quarter, inventory receipts are anticipated to increase over last year levels and by the May/June time frame we expect inventory per store to be similar to last year. While it is still early, we are encouraged by our strong full-priced selling of Spring merchandise. As we look forward, we are excited about the continued evolution of our brands and the opportunities ahead.”
The Company will discuss its fourth quarter and full year results in a conference call scheduled for today, April 5, 2006, at 5:00 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. The Company operates 714 stores in 45 states under the names: Christopher & Banks, C.J. Banks and Acorn. The Company currently has 507 Christopher & Banks stores, 182 C.J. Banks stores and 25 Acorn stores.
This release contains forward-looking statements regarding future performance of the Company related specifically to inventory levels and the early optimism about the strong full priced selling of spring merchandise. 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 Statements Follow
2
CHRISTOPHER & BANKS CORPORATION
UNAUDITED COMPARATIVE INCOME STATEMENT
FOR THE QUARTERS AND YEARS ENDED
FEBRUARY 25, 2006 AND FEBRUARY 26, 2005
(in thousands, except per share data)
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| Quarter Ended |
| Year Ended |
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| February 25, |
| February 26, |
| February 25, |
| February 26, |
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| 2006 |
| 2005 |
| 2006 |
| 2005 |
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Net sales |
| $ | 126,571 |
| $ | 119,272 |
| $ | 490,508 |
| $ | 438,862 |
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Costs and expenses: |
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Merchandise, buying and occupancy |
| 75,151 |
| 78,290 |
| 292,072 |
| 270,937 |
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Selling, general and administrative |
| 36,215 |
| 30,730 |
| 131,955 |
| 108,856 |
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Depreciation and amortization |
| 5,113 |
| 4,381 |
| 18,847 |
| 16,157 |
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Total costs and expenses |
| 116,479 |
| 113,401 |
| 442,874 |
| 395,950 |
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Operating income |
| 10,092 |
| 5,871 |
| 47,634 |
| 42,912 |
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Interest income |
| 856 |
| 349 |
| 2,092 |
| 1,038 |
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Income before income taxes |
| 10,948 |
| 6,220 |
| 49,726 |
| 43,950 |
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Income tax provision |
| 4,268 |
| 2,371 |
| 19,313 |
| 16,935 |
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Net income |
| $ | 6,680 |
| $ | 3,849 |
| $ | 30,413 |
| $ | 27,015 |
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Basic earnings per share: |
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Net income |
| $ | 0.19 |
| $ | 0.11 |
| $ | 0.85 |
| $ | 0.74 |
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Basic shares outstanding |
| 36,097 |
| 35,711 |
| 35,907 |
| 36,322 |
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Diluted earnings per share: |
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Net income |
| $ | 0.18 |
| $ | 0.11 |
| $ | 0.84 |
| $ | 0.73 |
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Diluted shares outstanding |
| 36,384 |
| 36,104 |
| 36,220 |
| 36,825 |
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Dividends per share |
| $ | 0.04 |
| $ | 0.04 |
| $ | 0.16 |
| $ | 0.16 |
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3
CHRISTOPHER & BANKS CORPORATION
UNAUDITED COMPARATIVE BALANCE SHEET
(in thousands)
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| February 25, |
| February 26, |
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| 2006 |
| 2005 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 62,385 |
| $ | 14,063 |
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Short-term investments |
| 30,000 |
| 46,748 |
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Merchandise inventories |
| 37,871 |
| 40,525 |
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Other current assets |
| 10,384 |
| 11,277 |
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Total current assets |
| 140,640 |
| 112,613 |
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Property, equipment and improvements, net |
| 118,342 |
| 112,059 |
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Other assets: |
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Goodwill |
| 3,587 |
| 3,587 |
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Other |
| 894 |
| 945 |
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Total other assets |
| 4,481 |
| 4,532 |
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Total assets |
| $ | 263,463 |
| $ | 229,204 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 9,853 |
| $ | 12,323 |
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Accrued liabilities |
| 25,930 |
| 18,733 |
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Total current liabilities |
| 35,783 |
| 31,056 |
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Other liabilities: |
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Deferred lease incentives |
| 21,803 |
| 20,648 |
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Other |
| 13,084 |
| 14,291 |
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Total other liabilities |
| 34,887 |
| 34,939 |
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Stockholders’ equity: |
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Common stock |
| 430 |
| 425 |
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Additional paid-in capital |
| 65,941 |
| 61,036 |
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Retained earnings |
| 186,998 |
| 162,324 |
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Common stock held in treasury |
| (60,576 | ) | (60,576 | ) | ||
Total stockholders’ equity |
| 192,793 |
| 163,209 |
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Total liabilities and stockholders’ equity |
| $ | 263,463 |
| $ | 229,204 |
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