Stein Mart (SMRTQ) 10-Q 7 Jun 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 30, 2016	May. 27, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	SMRT
Entity Registrant Name	STEIN MART INC
Entity Central Index Key	884,940
Current Fiscal Year End Date	--01-28
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		46,365,471

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 30, 2016	May. 02, 2015
Current assets:
Cash and cash equivalents	$ 16,317	$ 11,830	$ 17,190
Inventories	316,897	293,608	302,781
Prepaid expenses and other current assets	22,676	18,586	24,586
Total current assets	355,890	324,024	344,557
Property and equipment, net of accumulated depreciation and amoritization of $197,773, $190,952 and $173,800, respectively	166,261	162,954	149,254
Other assets	30,141	29,247	31,026
Total assets	552,292	516,225	524,837
Current liabilities:
Accounts payable	152,807	105,569	164,092
Current portion of debt	10,000	10,000	6,667
Accrued expenses and other current liabilities	75,385	71,571	67,219
Total current liabilities	238,192	187,140	237,978
Long-term debt	138,960	180,150	145,777
Deferred rent	41,667	41,146	33,654
Other liabilities	45,738	31,472	36,677
Total liabilities	$ 464,557	$ 439,908	$ 454,086
COMMITMENTS AND CONTINGENCIES
Shareholders' equity:
Preferred stock - $.01 par value, 1,000,000 shares authorized; no shares issued or outstanding
Common stock - $.01 par value; 100,000,000 shares authorized; 46,372,908, 45,814,583 and 45,395,851 shares issued and outstanding, respectively	$ 464	$ 458	$ 454
Additional paid-in capital	44,370	42,801	37,476
Retained earnings	43,175	33,337	33,249
Accumulated other comprehensive loss	(274)	(279)	(428)
Total shareholders' equity	87,735	76,317	70,751
Total liabilities and shareholders' equity	$ 552,292	$ 516,225	$ 524,837

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 30, 2016	May. 02, 2015
Statement of Financial Position [Abstract]
Accumulated depreciation and amortization	$ 197,773	$ 190,952	$ 173,800
Preferred stock, par value	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000	1,000,000
Preferred stock, shares issued	0	0	0
Preferred stock, shares outstanding	0	0	0
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000	100,000,000
Common stock, shares issued	46,372,908	45,814,583	45,395,851
Common stock, shares outstanding	46,372,908	45,814,583	45,395,851

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2016	May. 02, 2015
Income Statement [Abstract]
Net sales	$ 355,712	$ 353,521
Cost of merchandise sold	246,820	245,141
Gross profit	108,892	108,380
Selling, general and administrative expenses	86,474	85,622
Operating income	22,418	22,758
Interest expense, net	966	686
Income before income taxes	21,452	22,072
Income tax expense	8,141	8,508
Net income	$ 13,311	$ 13,564
Earnings per common share:
Basic	$ 0.29	$ 0.30
Diluted	$ 0.29	$ 0.29
Weighted-average shares outstanding:
Basic	45,595	44,612
Diluted	46,275	45,766
Dividends declared per common share	$ 0.075	$ 5.075

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	May. 02, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 13,311	$ 13,564
Other comprehensive income, net of tax:
Amounts reclassified from accumulated other comprehensive income	5	4
Comprehensive income	$ 13,316	$ 13,568

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	May. 02, 2015
Cash flows from operating activities:
Net income	$ 13,311	$ 13,564
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,660	7,223
Share-based compensation	1,590	1,783
Store closing charges		51
Loss on disposal of property and equipment	9	1
Deferred income taxes	197	(100)
Tax benefit from equity issuances	(145)	3,722
Excess tax benefits from share-based compensation	(5)	(3,723)
Changes in assets and liabilities:
Inventories	(23,289)	(17,158)
Prepaid expenses and other current assets	(4,090)	(5,156)
Other assets	(909)	29
Accounts payable	46,501	33,231
Accrued expenses and other current liabilities	4,801	(2,111)
Other liabilities	14,635	3,178
Net cash provided by operating activities	60,266	34,534
Cash flows from investing activity:
Net acquisition of property and equipment	(11,271)	(7,085)
Net cash used in investing activity	(11,271)	(7,085)
Cash flows from financing activities:
Proceeds from borrowings	80,855	267,200
Repayments of debt	(122,055)	(114,756)
Debt issuance costs		(369)
Cash dividends paid	(3,443)	(228,825)
Excess tax benefits from share-based compensation	5	3,723
Proceeds from exercise of stock options	1,073	63
Repurchase of common stock	(943)	(2,609)
Net cash used in financing activities	(44,508)	(75,573)
Net increase (decrease) in cash and cash equivalents	4,487	(48,124)
Cash and cash equivalents at beginning of year	11,830	65,314
Cash and cash equivalents at end of period	16,317	17,190
Supplemental disclosures of cash flow information:
Income taxes paid	2,072
Interest paid	936	557
Accruals and accounts payable for capital expenditures	$ 3,853	$ 2,904

Basis of Presentation

Basis of Presentation	3 Months Ended
	Apr. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“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 of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments (consisting primarily of normal and recurring adjustments) considered necessary for a fair presentation have been included. Due to the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 30, 2016, filed with the Securities and Exchange Commission (“SEC”) on April 11, 2016. As used herein, the terms “we,” “our,” “us” and “Stein Mart” refer to Stein Mart, Inc. and its wholly-owned subsidiaries. Recent Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606)

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Apr. 30, 2016
Federal Home Loan Banks [Abstract]
Shareholders' Equity	2. Shareholders’ Equity Dividends During the first quarter of 2016, we paid a quarterly dividend of $0.075 per common share on April 14, 2016. On February 4, 2015, we announced that our Board of Directors declared a special cash dividend of $5.00 per common share which was paid on February 27, 2015. As a result of the special cash dividend, all outstanding stock options and performance share awards were modified during 2015 so that they retain the same fair value. No incremental compensation expense resulted from these modifications. In the first quarter of 2015, we also paid a quarterly dividend of $0.075 per common share on April 17, 2015 Stock Repurchase Plan During the 13 weeks ended April 30, 2016, we repurchased 143,282 shares of our common stock at a total cost of approximately $0.9 million. During the 13 weeks ended May 2, 2015, we repurchased 190,140 shares of our common stock at a total cost of approximately $3.0 million. Stock repurchases were for tax withholding amounts due on employee stock awards and during the first quarter of 2016 and 2015 included no shares purchased on the open market under our previously authorized stock repurchase plan. As of April 30, 2016, there are 577,592 shares that can be repurchased pursuant to the Board of Director’s current authorization.

Earnings per Share

Earnings per Share	3 Months Ended
	Apr. 30, 2016
Earnings Per Share [Abstract]
Earnings per Share	3. Earnings per Share The following table presents the calculation of basic and diluted earnings per share (shares in thousands): 13 Weeks Ended April 30, 2016 13 Weeks Ended May 2, 2015 Basic: Net income $ 13,311 $ 13,564 Income allocated to participating securities 34 144 Net income available to common shareholders $ 13,277 $ 13,420 Basic weighted-average shares outstanding 45,595 44,612 Basic earnings per common share $ 0.29 $ 0.30 Diluted: Net income $ 13,311 $ 13,564 Income allocated to diluted participating securities 34 195 Net income available to common shareholders $ 13,277 $ 13,369 Basic weighted-average shares outstanding 45,595 44,612 Incremental shares from share-based compensation plans 680 1,154 Diluted weighted-average shares outstanding 46,275 45,766 Diluted earnings per common share $ 0.29 $ 0.29 Options to acquire shares totaling approximately 1.3 million and 28 thousand shares of common stock that were outstanding during the 13 weeks ended April 30, 2016 and May 2, 2015, respectively, were not included in the computation of diluted earnings per common share. Options excluded were those that had exercise prices greater than the average market price of the common shares such that inclusion would have been anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	4. Commitments and Contingencies We are involved in various routine legal proceedings incidental to the conduct of our business. During the 13 weeks ended April 30, 2016 and May 2, 2015, we accrued $1.4 million and $0.1 million, respectively, for actual and anticipated legal settlements. Management does not believe that any of these legal proceedings will have a material adverse effect on our financial condition, results of operations or cash flows.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Apr. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“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 of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments (consisting primarily of normal and recurring adjustments) considered necessary for a fair presentation have been included. Due to the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 30, 2016, filed with the Securities and Exchange Commission (“SEC”) on April 11, 2016. As used herein, the terms “we,” “our,” “us” and “Stein Mart” refer to Stein Mart, Inc. and its wholly-owned subsidiaries.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606)

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Apr. 30, 2016
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Earning Per Share	The following table presents the calculation of basic and diluted earnings per share (shares in thousands): 13 Weeks Ended April 30, 2016 13 Weeks Ended May 2, 2015 Basic: Net income $ 13,311 $ 13,564 Income allocated to participating securities 34 144 Net income available to common shareholders $ 13,277 $ 13,420 Basic weighted-average shares outstanding 45,595 44,612 Basic earnings per common share $ 0.29 $ 0.30 Diluted: Net income $ 13,311 $ 13,564 Income allocated to diluted participating securities 34 195 Net income available to common shareholders $ 13,277 $ 13,369 Basic weighted-average shares outstanding 45,595 44,612 Incremental shares from share-based compensation plans 680 1,154 Diluted weighted-average shares outstanding 46,275 45,766 Diluted earnings per common share $ 0.29 $ 0.29

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Apr. 14, 2016	Apr. 17, 2015	Feb. 27, 2015	Apr. 30, 2016	May. 02, 2015
Schedule of Shareholders' Equity [Line Items]
Dividend declared and cash paid per share	$ 0.075	$ 0.075	$ 5
Repurchase of shares				143,282	190,140
Repurchase shares value				$ 0.9	$ 3
Board of Directors [Member]
Schedule of Shareholders' Equity [Line Items]
Repurchase of shares				0	0
Repurchase of shares, remaining				577,592

Earnings Per Share - Calculatio

Earnings Per Share - Calculation of Basic and Diluted Earning Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2016	May. 02, 2015
Basic:
Net income	$ 13,311	$ 13,564
Income allocated to participating securities	34	144
Net income available to common shareholders	$ 13,277	$ 13,420
Basic weighted-average shares outstanding	45,595	44,612
Basic earnings per common share	$ 0.29	$ 0.30
Diluted:
Net income	$ 13,311	$ 13,564
Income allocated to diluted participating securities	34	195
Net income available to common shareholders	$ 13,277	$ 13,369
Basic weighted-average shares outstanding	45,595	44,612
Incremental shares from share-based compensation plans	680	1,154
Diluted weighted-average shares outstanding	46,275	45,766
Diluted earnings per common share	$ 0.29	$ 0.29

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended
	Apr. 30, 2016	May. 02, 2015
Earnings Per Share [Abstract]
Antidilutive options	1,300,000	28,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	Apr. 30, 2016	May. 02, 2015
Commitments and Contingencies Disclosure [Abstract]
Actual and anticipated legal settlements accrued	$ 1.4	$ 0.1