Stein Mart (SMRTQ) 10-Q 31 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 30, 2016	Aug. 29, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
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		46,902,126

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016	Aug. 01, 2015
Current assets:
Cash and cash equivalents	$ 11,765	$ 11,830	$ 11,620
Inventories	279,691	293,608	277,243
Prepaid expenses and other current assets	20,925	18,586	30,060
Total current assets	312,381	324,024	318,923
Property and equipment, net of accumulated depreciation and amortization of $205,195, $190,952 and $178,654, respectively	169,597	162,954	156,072
Other assets	29,892	29,247	30,323
Total assets	511,870	516,225	505,318
Current liabilities:
Accounts payable	98,185	105,569	122,699
Current portion of long-term debt	10,000	10,000	9,167
Accrued expenses and other current liabilities	68,411	71,571	64,661
Total current liabilities	176,596	187,140	196,527
Long-term debt, net of current portion	157,371	180,150	161,033
Deferred rent	42,286	41,146	37,532
Other liabilities	46,149	31,472	36,250
Total liabilities	422,402	439,908	431,342
COMMITMENTS AND CONTINGENCIES
Shareholders' equity:
Preferred stock - $0.01 par value, 1,000,000 shares authorized; no shares issued or outstanding
Common stock - $0.01 par value; 100,000,000 shares authorized; 46,848,195, 45,814,583 and 45,702,328 shares issued and outstanding, respectively	468	458	457
Additional paid-in capital	46,547	42,801	40,025
Retained earnings	42,722	33,337	33,918
Accumulated other comprehensive loss	(269)	(279)	(424)
Total shareholders' equity	89,468	76,317	73,976
Total liabilities and shareholders' equity	$ 511,870	$ 516,225	$ 505,318

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016	Aug. 01, 2015
Statement of Financial Position [Abstract]
Accumulated depreciation and amortization	$ 205,195	$ 190,952	$ 178,654
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	46,848,195	45,814,583	45,702,328
Common stock, shares outstanding	46,848,195	45,814,583	45,702,328

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Income Statement [Abstract]
Net sales	$ 319,761	$ 311,583	$ 675,473	$ 665,104
Cost of merchandise sold	230,322	222,648	477,142	467,789
Gross profit	89,439	88,935	198,331	197,315
Selling, general and administrative expenses	83,840	81,545	170,314	167,167
Operating income	5,599	7,390	28,017	30,148
Interest expense, net	883	807	1,849	1,493
Income before income taxes	4,716	6,583	26,168	28,655
Income tax expense	1,709	2,489	9,850	10,997
Net income	$ 3,007	$ 4,094	$ 16,318	$ 17,658
Net income per share:
Basic	$ 0.07	$ 0.09	$ 0.36	$ 0.39
Diluted	$ 0.06	$ 0.09	$ 0.35	$ 0.38
Weighted-average shares outstanding:
Basic	45,719	44,710	45,657	44,661
Diluted	46,555	45,926	46,415	45,846
Dividends declared per common share	$ 0.075	$ 0.075	$ 0.150	$ 5.150

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 3,007	$ 4,094	$ 16,318	$ 17,658
Other comprehensive income, net of tax:
Amounts reclassified from accumulated other comprehensive income	5	4	10	8
Comprehensive income	$ 3,012	$ 4,098	$ 16,328	$ 17,666

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015
Cash flows from operating activities:
Net income	$ 16,318	$ 17,658
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,611	14,534
Share-based compensation	3,511	4,012
Store closing charges	37	50
Loss on disposal of property and equipment	10	43
Deferred income taxes	978	(1,781)
Tax (expense) benefit from equity issuances	(196)	3,729
Excess tax benefits from share-based compensation	(471)	(3,754)
Changes in assets and liabilities:
Inventories	13,917	8,380
Prepaid expenses and other current assets	(2,339)	(10,626)
Other assets	(708)	976
Accounts payable	(7,763)	(7,721)
Accrued expenses and other current liabilities	(1,207)	(6,183)
Other liabilities	14,949	8,051
Net cash provided by operating activities	52,647	27,368
Cash flow from investing activity:
Net acquisition of property and equipment	(23,939)	(19,786)
Net cash used in investing activity	(23,939)	(19,786)
Cash flows from financing activities:
Proceeds from borrowings	164,913	409,423
Repayments of debt	(187,713)	(239,223)
Debt issuance costs		(380)
Cash dividends paid	(6,885)	(232,267)
Excess tax benefits from share-based compensation	471	3,754
Proceeds from exercise of stock options and other	1,439	477
Repurchase of common stock	(998)	(3,060)
Net cash used in financing activities	(28,773)	(61,276)
Net decrease in cash and cash equivalents	(65)	(53,694)
Cash and cash equivalents at beginning of year	11,830	65,314
Cash and cash equivalents at end of period	11,765	11,620
Supplemental disclosures of cash flow information:
Income taxes paid	11,789	8,555
Interest paid	1,807	1,282
Purchases of property and equipment included in accounts payable, accrued expenses and other current liabilities at the end of the period	$ 2,473	$ 4,374

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 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 Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU No. 2016-04, Liabilities-Extinguishments of Liabilities Subtopic 405-20 Recognition of Breakage for Certain Prepaid Stored-Value Products In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jul. 30, 2016
Equity [Abstract]
Shareholders' Equity	2. Shareholders’ Equity Dividends During the 26 weeks ended July 30, 2016, we paid two quarterly dividends of $0.075 per common share on April 15, 2016 and July 15, 2016. During the 26 weeks ended August 1, 2015, we paid two quarterly dividends of $0.075 per common share on April 17, 2015 and July 17, 2015. 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 retained the same fair value. No incremental compensation expense resulted from these modifications. Stock Repurchase Plan During the 13 weeks ended July 30, 2016, we repurchased 7,376 shares of our common stock at a total cost of approximately $0.1 million. During the 13 weeks ended August 1, 2015, we repurchased 8,833 shares of our common stock at a total cost of approximately $0.1 million. During the 26 weeks ended July 30, 2016, we repurchased 150,658 shares of our common stock at a total cost of approximately $1.0 million. During the 26 weeks ended August 1, 2015, we repurchased 198,973 shares of our common stock at a total cost of approximately $3.1 million. Stock repurchases were for tax withholding amounts due on employee stock awards and during the first half of 2016 and 2015 included no shares purchased on the open market under our previously authorized stock repurchase plan. As of July 30, 2016, there are 570,216 shares that can be repurchased pursuant to the Board of Director’s current authorization.

Earnings per Share

Earnings per Share	6 Months Ended
	Jul. 30, 2016
Earnings Per Share [Abstract]
Earnings per Share	3. Earnings per Share Our restricted stock awards granted in 2013 and prior contain non-forfeitable rights to dividends and, as such, are considered participating securities. Participating securities are to be included in the calculation of earnings per share under the two-class method. In applying the two-class method, income is allocated to both common stock shares and participating securities based on their respective weighted-average shares outstanding for the period. The following table presents the calculation of basic and diluted earnings per share (in thousands, except per share amounts): 13 Weeks Ended 13 Weeks Ended 26 Weeks Ended 26 Weeks Ended Basic Earnings Per Common Share: Net income $ 3,007 $ 4,094 $ 16,318 $ 17,658 Income allocated to participating securities 5 34 36 113 Net income available to common shareholders $ 3,002 $ 4,060 $ 16,282 $ 17,545 Basic weighted-average shares outstanding 45,719 44,710 45,657 44,661 Basic earnings per share $ 0.07 $ 0.09 $ 0.36 $ 0.39 Diluted Earnings Per Common Share: Net income $ 3,007 $ 4,094 $ 16,318 $ 17,658 Income allocated to participating securities 5 34 35 163 Net income available to common shareholders $ 3,002 $ 4,060 $ 16,283 $ 17,495 Basic weighted-average shares outstanding 45,719 44,710 45,657 44,661 Incremental shares from share-based compensation plans 836 1,216 758 1,185 Diluted weighted-average shares outstanding 46,555 45,926 46,415 45,846 Diluted earnings per share $ 0.06 $ 0.09 $ 0.35 $ 0.38 Options totaling approximately 2.5 million and 1.9 million shares of common stock that were outstanding during the 13 and 26 weeks ended July 30, 2016, respectively, were not included in the computation of diluted earnings per common share because their inclusion would have been anti-dilutive. Options totaling approximately 0.5 million and 0.2 million shares of common stock that were outstanding during the 13 and 26 weeks ended August 1, 2015, respectively, were not included in the computation of diluted earnings per common share because their inclusion would have been anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 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 July 30, 2016 and August 1, 2015, we accrued $0.4 million and less than $0.1 million, respectively, and during the 26 weeks ended July 30, 2016 and August 1, 2015, we accrued $1.8 million and $0.1 million, respectively, for actual and anticipated legal settlements. While some of these matters could be material to our results of operations or cash flows for any particular period if an unfavorable outcome results, we do not believe that the ultimate resolution of currently pending legal proceedings, either individually or in the aggregate, will have a material adverse effect on our overall financial condition.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jul. 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 Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU No. 2016-04, Liabilities-Extinguishments of Liabilities Subtopic 405-20 Recognition of Breakage for Certain Prepaid Stored-Value Products In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Jul. 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 (in thousands, except per share amounts): 13 Weeks Ended 13 Weeks Ended 26 Weeks Ended 26 Weeks Ended Basic Earnings Per Common Share: Net income $ 3,007 $ 4,094 $ 16,318 $ 17,658 Income allocated to participating securities 5 34 36 113 Net income available to common shareholders $ 3,002 $ 4,060 $ 16,282 $ 17,545 Basic weighted-average shares outstanding 45,719 44,710 45,657 44,661 Basic earnings per share $ 0.07 $ 0.09 $ 0.36 $ 0.39 Diluted Earnings Per Common Share: Net income $ 3,007 $ 4,094 $ 16,318 $ 17,658 Income allocated to participating securities 5 34 35 163 Net income available to common shareholders $ 3,002 $ 4,060 $ 16,283 $ 17,495 Basic weighted-average shares outstanding 45,719 44,710 45,657 44,661 Incremental shares from share-based compensation plans 836 1,216 758 1,185 Diluted weighted-average shares outstanding 46,555 45,926 46,415 45,846 Diluted earnings per share $ 0.06 $ 0.09 $ 0.35 $ 0.38

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Jul. 15, 2016	Apr. 15, 2016	Jul. 17, 2015	Apr. 17, 2015	Feb. 27, 2015	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Schedule of Shareholders' Equity [Line Items]
Dividends declared and cash paid per share	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 5
Repurchase of shares						7,376	8,833	150,658	198,973
Repurchase shares value						$ 0.1	$ 0.1	$ 1	$ 3.1
Board of Directors [Member]
Schedule of Shareholders' Equity [Line Items]
Repurchase of shares								0	0
Repurchase of shares, remaining						570,216		570,216

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		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Basic Earnings Per Common Share:
Net income	$ 3,007	$ 4,094	$ 16,318	$ 17,658
Income allocated to participating securities	5	34	36	113
Net income available to common shareholders	$ 3,002	$ 4,060	$ 16,282	$ 17,545
Basic weighted-average shares outstanding	45,719	44,710	45,657	44,661
Basic earnings per share	$ 0.07	$ 0.09	$ 0.36	$ 0.39
Diluted Earnings Per Common Share:
Net income	$ 3,007	$ 4,094	$ 16,318	$ 17,658
Income allocated to participating securities	5	34	35	163
Net income available to common shareholders	$ 3,002	$ 4,060	$ 16,283	$ 17,495
Basic weighted-average shares outstanding	45,719	44,710	45,657	44,661
Incremental shares from share-based compensation plans	836	1,216	758	1,185
Diluted weighted-average shares outstanding	46,555	45,926	46,415	45,846
Diluted earnings per share	$ 0.06	$ 0.09	$ 0.35	$ 0.38

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Earnings Per Share [Abstract]
Antidilutive options	2.5	0.5	1.9	0.2

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Contingencies And Commitments [Line Items]
Actual and anticipated legal settlements accrued	$ 400,000		$ 1,800,000	$ 100,000
Maximum [Member]
Contingencies And Commitments [Line Items]
Actual and anticipated legal settlements accrued		$ 100,000