Stein Mart (SMRTQ) 10-Q 1 Dec 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 29, 2016	Nov. 30, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 29, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
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		46,897,234

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Oct. 29, 2016	Jan. 30, 2016	Oct. 31, 2015
Current assets:
Cash and cash equivalents	$ 13,968	$ 11,830	$ 14,126
Inventories	383,932	293,608	372,912
Prepaid expenses and other current assets	29,980	18,586	31,614
Total current assets	427,880	324,024	418,652
Property and equipment, net of accumulated depreciation and amortization of $212,689, $190,952 and $185,520, respectively	172,771	162,954	162,907
Other assets	29,831	29,247	30,505
Total assets	630,482	516,225	612,064
Current liabilities:
Accounts payable	208,161	105,569	202,176
Current portion of long-term debt	10,000	10,000	10,000
Accrued expenses and other current liabilities	77,076	71,571	68,162
Total current liabilities	295,237	187,140	280,338
Long-term debt, net of current portion	169,681	180,150	181,833
Deferred rent	42,266	41,146	41,163
Other liabilities	45,401	31,472	36,470
Total liabilities	552,585	439,908	539,804
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; 46,919,426, 45,814,583 and 45,675,579 shares issued and outstanding, respectively	469	458	457
Additional paid-in capital	49,497	42,801	41,826
Retained earnings	28,196	33,337	30,397
Accumulated other comprehensive loss	(265)	(279)	(420)
Total shareholders' equity	77,897	76,317	72,260
Total liabilities and shareholders' equity	$ 630,482	$ 516,225	$ 612,064

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Oct. 29, 2016	Jan. 30, 2016	Oct. 31, 2015
Statement of Financial Position [Abstract]
Accumulated depreciation and amortization	$ 212,689	$ 190,952	$ 185,520
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	46,919,426	45,814,583	45,675,579
Common stock, shares outstanding	46,919,426	45,814,583	45,675,579

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015	Oct. 29, 2016	Oct. 31, 2015
Income Statement [Abstract]
Net sales	$ 299,527	$ 300,665	$ 975,000	$ 965,769
Cost of merchandise sold	226,816	218,497	703,958	686,286
Gross profit	72,711	82,168	271,042	279,483
Selling, general and administrative expenses	89,034	81,464	259,348	248,631
Operating (loss) income	(16,323)	704	11,694	30,852
Interest expense, net	949	891	2,798	2,384
(Loss) income before income taxes	(17,272)	(187)	8,896	28,468
Income tax (benefit) expense	(6,262)	10	3,588	11,007
Net (loss) income	$ (11,010)	$ (197)	$ 5,308	$ 17,461
Net (loss) income per share:
Basic	$ (0.24)	$ (0.01)	$ 0.12	$ 0.39
Diluted	$ (0.24)	$ (0.01)	$ 0.11	$ 0.37
Weighted-average shares outstanding:
Basic	45,845	44,791	45,720	44,704
Diluted	45,845	44,791	46,599	45,916
Dividends declared per common share	$ 0.075	$ 0.075	$ 0.225	$ 5.225

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015	Oct. 29, 2016	Oct. 31, 2015
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (11,010)	$ (197)	$ 5,308	$ 17,461
Other comprehensive income, net of tax:
Amounts reclassified from accumulated other comprehensive income	4	4	14	12
Comprehensive (loss) income	$ (11,006)	$ (193)	$ 5,322	$ 17,473

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015
Cash flows from operating activities:
Net income	$ 5,308	$ 17,461
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23,636	22,050
Share-based compensation	6,306	5,773
Store closing charges	25	7
Impairment of property and other assets	277
Loss on disposal of property and equipment	14	53
Deferred income taxes	520	(769)
Tax (expense) benefit from equity issuances	(187)	3,836
Excess tax benefits from share-based compensation	(31)	(3,875)
Changes in assets and liabilities:
Inventories	(90,324)	(87,289)
Prepaid expenses and other current assets	(11,581)	(12,221)
Other assets	(585)	603
Accounts payable	102,469	71,617
Accrued expenses and other current liabilities	6,812	(2,177)
Other liabilities	14,764	11,226
Net cash provided by operating activities	57,423	26,295
Cash flow from investing activity:
Net acquisition of property and equipment	(35,026)	(34,470)
Net cash used in investing activity	(35,026)	(34,470)
Cash flows from financing activities:
Proceeds from borrowings	292,183	533,334
Repayments of debt	(302,683)	(341,501)
Debt issuance costs		(380)
Cash dividends paid	(10,378)	(235,691)
Excess tax benefits from share-based compensation	31	3,875
Proceeds from exercise of stock options and other	1,715	562
Repurchase of common stock	(1,127)	(3,212)
Net cash used in financing activities	(20,259)	(43,013)
Net increase (decrease) in cash and cash equivalents	2,138	(51,188)
Cash and cash equivalents at beginning of year	11,830	65,314
Cash and cash equivalents at end of period	13,968	14,126
Supplemental disclosures of cash flow information:
Income taxes paid	11,818	12,304
Interest paid	2,715	2,130
Purchases of property and equipment included in accounts payable, accrued expenses and other current liabilities at the end of the period	$ 2,866	$ 4,051

Basis of Presentation

Basis of Presentation	9 Months Ended
	Oct. 29, 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. Certain reclassifications have been made in the 2015 Condensed Consolidated Statement of Cash Flows to conform to classifications used in 2016. Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments 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)

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Oct. 29, 2016
Equity [Abstract]
Shareholders' Equity	2. Shareholders’ Equity Dividends During the 39 weeks ended October 29, 2016, we paid three quarterly dividends of $0.075 per common share on April 15, 2016, July 15, 2016 and October 14, 2016. During the 39 weeks ended October 31, 2015, we paid three quarterly dividends of $0.075 per common share on April 17, 2015, July 17, 2015 and October 16, 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 October 29, 2016, we repurchased 15,999 shares of our common stock at a total cost of approximately $0.1 million. During the 13 weeks ended October 31, 2015, we repurchased 14,842 shares of our common stock at a total cost of approximately $0.1 million. During the 39 weeks ended October 29, 2016, we repurchased 166,657 shares of our common stock at a total cost of approximately $1.1 million. During the 39 weeks ended October 31, 2015, we repurchased 213,815 shares of our common stock at a total cost of approximately $3.2 million. Stock repurchases were for tax withholding amounts due on employee stock awards and during the first 39 weeks of 2016 and 2015 included no shares purchased on the open market under our previously authorized stock repurchase plan. As of October 29, 2016, there are 554,217 shares that can be repurchased pursuant to the Board of Director’s current authorization.

Earnings per Share

Earnings per Share	9 Months Ended
	Oct. 29, 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 sets forth the calculation of basic and diluted earnings per share (in thousands, except per share amounts): 13 Weeks Ended 13 Weeks Ended 39 Weeks Ended 39 Weeks Ended October 29, 2016 October 31, 2015 October 29, 2016 October 31, 2015 Basic (Loss) Earnings Per Common Share: Net (loss) income $ (11,010 ) $ (197 ) $ 5,308 $ 17,461 Income allocated to participating securities 18 26 22 205 Net (loss) income available to common shareholders $ (11,028 ) $ (223 ) $ 5,286 $ 17,256 Basic weighted-average shares outstanding 45,845 44,791 45,720 44,704 Basic (loss) earnings per share $ (0.24 ) $ (0.01 ) $ 0.12 $ 0.39 Diluted (Loss) Earnings Per Common Share: Net (loss) income $ (11,010 ) $ (197 ) $ 5,308 $ 17,461 Income allocated to participating securities 18 26 22 255 Net (loss) income available to common shareholders $ (11,028 ) $ (223 ) $ 5,286 $ 17,206 Basic weighted-average shares outstanding 45,845 44,791 45,720 44,704 Incremental shares from share-based compensation plans — — 879 1,212 Diluted weighted-average shares outstanding 45,845 44,791 46,599 45,916 Diluted (loss) earnings per share $ (0.24 ) $ (0.01 ) $ 0.11 $ 0.37 Due to the Company’s net loss position for the third quarter of 2016 and 2015, 0.1 million and 0.4 million weighted average unvested restricted shares (participating securities) and 1.1 million and 1.3 million weighted average common stock equivalents (non-participating securities), respectively, were not considered in the calculation of net loss available to common shareholders used for diluted EPS for the quarter. Options totaling approximately 1.4 million and 2.1 million shares of common stock that were outstanding during the 13 and 39 weeks ended October 29, 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 0.4 million and 0.2 million shares of common stock that were outstanding during the 13 and 39 weeks ended October 31, 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	9 Months Ended
	Oct. 29, 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 both the 13 weeks ended October 29, 2016 and October 31, 2015, we accrued less than $0.1 million and during the 39 weeks ended October 29, 2016 and October 31, 2015, we accrued $1.9 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)	9 Months Ended
	Oct. 29, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	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. Certain reclassifications have been made in the 2015 Condensed Consolidated Statement of Cash Flows to conform to classifications used in 2016.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments 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)

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Oct. 29, 2016
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Earning Per Share	The following table sets forth the calculation of basic and diluted earnings per share (in thousands, except per share amounts): 13 Weeks Ended 13 Weeks Ended 39 Weeks Ended 39 Weeks Ended October 29, 2016 October 31, 2015 October 29, 2016 October 31, 2015 Basic (Loss) Earnings Per Common Share: Net (loss) income $ (11,010 ) $ (197 ) $ 5,308 $ 17,461 Income allocated to participating securities 18 26 22 205 Net (loss) income available to common shareholders $ (11,028 ) $ (223 ) $ 5,286 $ 17,256 Basic weighted-average shares outstanding 45,845 44,791 45,720 44,704 Basic (loss) earnings per share $ (0.24 ) $ (0.01 ) $ 0.12 $ 0.39 Diluted (Loss) Earnings Per Common Share: Net (loss) income $ (11,010 ) $ (197 ) $ 5,308 $ 17,461 Income allocated to participating securities 18 26 22 255 Net (loss) income available to common shareholders $ (11,028 ) $ (223 ) $ 5,286 $ 17,206 Basic weighted-average shares outstanding 45,845 44,791 45,720 44,704 Incremental shares from share-based compensation plans — — 879 1,212 Diluted weighted-average shares outstanding 45,845 44,791 46,599 45,916 Diluted (loss) earnings per share $ (0.24 ) $ (0.01 ) $ 0.11 $ 0.37

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Oct. 14, 2016	Jul. 15, 2016	Apr. 15, 2016	Oct. 16, 2015	Jul. 17, 2015	Apr. 17, 2015	Feb. 27, 2015	Oct. 29, 2016	Oct. 31, 2015	Oct. 29, 2016	Oct. 31, 2015
Schedule of Shareholders' Equity [Line Items]
Dividends declared and cash paid per share	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 5
Repurchase of shares								15,999	14,842	166,657	213,815
Repurchase shares value								$ 0.1	$ 0.1	$ 1.1	$ 3.2
Board of Directors [Member]
Schedule of Shareholders' Equity [Line Items]
Repurchase of shares										0	0
Repurchase of shares, remaining								554,217		554,217

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		9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015	Oct. 29, 2016	Oct. 31, 2015
Basic (Loss) Earnings Per Common Share:
Net (loss) income	$ (11,010)	$ (197)	$ 5,308	$ 17,461
Income allocated to participating securities	18	26	22	205
Net (loss) income available to common shareholders	$ (11,028)	$ (223)	$ 5,286	$ 17,256
Basic weighted-average shares outstanding	45,845	44,791	45,720	44,704
Basic (loss) earnings per share	$ (0.24)	$ (0.01)	$ 0.12	$ 0.39
Diluted (Loss) Earnings Per Common Share:
Net (loss) income	$ (11,010)	$ (197)	$ 5,308	$ 17,461
Income allocated to participating securities	18	26	22	255
Net (loss) income available to common shareholders	$ (11,028)	$ (223)	$ 5,286	$ 17,206
Basic weighted-average shares outstanding	45,845	44,791	45,720	44,704
Incremental shares from share-based compensation plans			879	1,212
Diluted weighted-average shares outstanding	45,845	44,791	46,599	45,916
Diluted (loss) earnings per share	$ (0.24)	$ (0.01)	$ 0.11	$ 0.37

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015	Oct. 29, 2016	Oct. 31, 2015
Earnings Per Share [Line Items]
Weighted average common stock equivalents	45,845	44,791	46,599	45,916
Antidilutive options	1,400	400	2,100	200
Participating Securities [Member]
Earnings Per Share [Line Items]
Weighted average unvested restricted shares	100	400
Non Participating Securities [Member]
Earnings Per Share [Line Items]
Weighted average common stock equivalents	1,100	1,300

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015	Oct. 29, 2016	Oct. 31, 2015
Contingencies And Commitments [Line Items]
Actual and anticipated legal settlements accrued			$ 1,900,000	$ 100,000
Maximum [Member]
Contingencies And Commitments [Line Items]
Actual and anticipated legal settlements accrued	$ 100,000	$ 100,000