Stein Mart (SMRTQ) 10-Q 8 Jun 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 29, 2017	Jun. 06, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 29, 2017
Document Fiscal Year Focus	2,017
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	--02-03
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		47,621,851

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016
Current assets:
Cash and cash equivalents	$ 15,554	$ 10,604	$ 16,317
Inventories	322,030	291,110	316,897
Prepaid expenses and other current assets	24,161	30,249	22,676
Total current assets	361,745	331,963	355,890
Property and equipment, net of accumulated depreciation and amortization of $221,626, $218,304 and $197,773, respectively	164,012	165,542	166,261
Other assets	28,692	30,344	30,141
Total assets	554,449	527,849	552,292
Current liabilities:
Accounts payable	162,208	114,419	152,807
Current portion of long-term debt	8,333	10,000	10,000
Accrued expenses and other current liabilities	71,360	72,772	75,385
Total current liabilities	241,901	197,191	238,192
Long-term debt, net of current portion	149,119	171,792	138,960
Deferred rent	42,509	41,774	41,667
Other liabilities	49,128	46,832	45,738
Total liabilities	482,657	457,589	464,557
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; 47,181,498, 47,018,942 and 46,372,908 shares issued and outstanding, respectively	472	470	464
Additional paid-in capital	51,557	50,241	44,370
Retained earnings	20,059	19,853	43,175
Accumulated other comprehensive loss	(296)	(304)	(274)
Total shareholders' equity	71,792	70,260	87,735
Total liabilities and shareholders' equity	$ 554,449	$ 527,849	$ 552,292

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016
Statement of Financial Position [Abstract]
Accumulated depreciation and amortization	$ 221,626	$ 218,304	$ 197,773
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	47,181,498	47,018,942	46,372,908
Common stock, shares outstanding	47,181,498	47,018,942	46,372,908

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Income Statement [Abstract]
Net sales	$ 337,335	$ 355,712
Cost of merchandise sold	241,779	246,820
Gross profit	95,556	108,892
Selling, general and administrative expenses	85,494	86,474
Operating income	10,062	22,418
Interest expense, net	1,139	966
Income before income taxes	8,923	21,452
Income tax expense	5,223	8,141
Net income	$ 3,700	$ 13,311
Earnings per common share:
Basic	$ 0.08	$ 0.29
Diluted	$ 0.08	$ 0.29
Weighted-average shares outstanding:
Basic	46,165	45,595
Diluted	46,171	46,275
Dividends declared per common share	$ 0.075	$ 0.075

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 3,700	$ 13,311
Other comprehensive income, net of tax:
Amounts reclassified from accumulated other comprehensive income	8	5
Comprehensive income	$ 3,708	$ 13,316

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Cash flows from operating activities:
Net income	$ 3,700	$ 13,311
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,085	7,660
Share-based compensation	1,523	1,590
Store closing charges	286
Impairment of property and other assets	31
Loss on disposal of property and equipment	232	9
Deferred income taxes	4,858	197
Tax benefit from equity issuances		(145)
Excess tax benefits from share-based compensation		(5)
Changes in assets and liabilities:
Inventories	(30,920)	(23,289)
Prepaid expenses and other current assets	6,088	(4,090)
Other assets	1,279	(909)
Accounts payable	47,924	46,501
Accrued expenses and other current liabilities	(1,550)	4,801
Other liabilities	(1,355)	14,635
Net cash provided by operating activities	40,181	60,266
Cash flows from investing activity:
Net acquisition of property and equipment	(7,182)	(11,271)
Net cash used in investing activity	(7,182)	(11,271)
Cash flows from financing activities:
Proceeds from borrowings	108,911	80,855
Repayments of debt	(133,261)	(122,055)
Cash dividends paid	(3,494)	(3,443)
Excess tax benefits from share-based compensation		5
Proceeds from exercise of stock options		1,073
Repurchase of common stock	(205)	(943)
Net cash used in financing activities	(28,049)	(44,508)
Net increase in cash and cash equivalents	4,950	4,487
Cash and cash equivalents at beginning of year	10,604	11,830
Cash and cash equivalents at end of period	15,554	16,317
Supplemental disclosures of cash flow information:
Income taxes (received) paid	(8,220)	2,072
Interest paid	1,087	936
Accruals and accounts payable for capital expenditures	$ 1,464	$ 3,853

Basis of Presentation

Basis of Presentation	3 Months Ended
	Apr. 29, 2017
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 S-X. 10-K/A As used herein, the terms “we,” “our,” “us” and “Stein Mart” refer to Stein Mart, Inc. and its wholly-owned subsidiaries. Correction of an Immaterial Error During the fourth quarter of fiscal 2016, we identified an immaterial prior period error in our lower-of-cost-or-market out-of-period Accrued Expenses and Other Current Liabilities The major components of accrued expenses and other current liabilities are as follows (in thousands): April 29, 2017 January 28, 2017 April 30, 2016 Compensation and employee benefits $ 7,116 $ 11,016 $ 9,214 Unredeemed gift and merchandise return cards 9,559 11,954 8,950 Property taxes 12,876 14,274 11,073 Accrued vacation 7,715 7,715 7,306 Other 34,094 27,813 38,842 Accrued expenses and other current liabilities $ 71,360 $ 72,772 $ 75,385 Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Updated (“ASU”) No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ASU 2016-09. tax-related 2016-09. 2016-09, 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) ASU 2016-02 in In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40) No. 2014-15 No. 2014-15 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) No. 2014-09 No. 2015-14, No. 2014-09

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Apr. 29, 2017
Equity [Abstract]
Shareholders' Equity	2. Shareholders’ Equity Dividends During the first quarter of 2017, we paid a quarterly dividend of $0.075 per common share on April 14, 2017. Stock Repurchase Plan During the 13 weeks ended April 29, 2017, we repurchased 56,753 shares of our common stock at a total cost of approximately $0.2 million. 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. Stock repurchases were for tax withholding amounts due on employee stock awards and during the first quarter of 2017 and 2016 included no shares purchased on the open market under our previously authorized stock repurchase plan. As of April 29, 2017, there are 439,777 shares that can be repurchased pursuant to the Board of Director’s current authorization.

Earnings per Share

Earnings per Share	3 Months Ended
	Apr. 29, 2017
Earnings Per Share [Abstract]
Earnings per Share	3. Earnings per Share The following table presents the calculation of basic and diluted earnings per share (in thousands, except per share data): 13 Weeks Ended 13 Weeks Ended Basic: Net income $ 3,700 $ 13,311 Income allocated to participating securities 2 34 Net income available to common shareholders $ 3,698 $ 13,277 Basic weighted-average shares outstanding 46,165 45,595 Basic earnings per common share $ 0.08 $ 0.29 Diluted: Net income $ 3,700 $ 13,311 Income allocated to diluted participating securities 2 34 Net income available to common shareholders $ 3,698 $ 13,277 Basic weighted-average shares outstanding 46,165 45,595 Incremental shares from share-based compensation plans 6 680 Diluted weighted-average shares outstanding 46,171 46,275 Diluted earnings per common share $ 0.08 $ 0.29 Options to acquire shares totaling approximately 3.9 million and 1.3 million shares of common stock that were outstanding during the 13 weeks ended April 29, 2017 and April 30, 2016, 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. 29, 2017
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 29, 2017, we did not accrue for any actual or anticipated legal settlements. During the 13 weeks ended April 30, 2016, we accrued $1.4 million 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)	3 Months Ended
	Apr. 29, 2017
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 S-X. 10-K/A As used herein, the terms “we,” “our,” “us” and “Stein Mart” refer to Stein Mart, Inc. and its wholly-owned subsidiaries.
Correction of an Immaterial Error	Correction of an Immaterial Error During the fourth quarter of fiscal 2016, we identified an immaterial prior period error in our lower-of-cost-or-market out-of-period
Recent Accounting Pronouncements	Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Updated (“ASU”) No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ASU 2016-09. tax-related 2016-09. 2016-09, 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) ASU 2016-02 in In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40) No. 2014-15 No. 2014-15 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) No. 2014-09 No. 2015-14, No. 2014-09

Basis of Presentation (Tables)

Basis of Presentation (Tables)	3 Months Ended
	Apr. 29, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Major Components of Accrued Expenses and Other Current Liabilities	The major components of accrued expenses and other current liabilities are as follows (in thousands): April 29, 2017 January 28, 2017 April 30, 2016 Compensation and employee benefits $ 7,116 $ 11,016 $ 9,214 Unredeemed gift and merchandise return cards 9,559 11,954 8,950 Property taxes 12,876 14,274 11,073 Accrued vacation 7,715 7,715 7,306 Other 34,094 27,813 38,842 Accrued expenses and other current liabilities $ 71,360 $ 72,772 $ 75,385

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Apr. 29, 2017
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 data): 13 Weeks Ended 13 Weeks Ended Basic: Net income $ 3,700 $ 13,311 Income allocated to participating securities 2 34 Net income available to common shareholders $ 3,698 $ 13,277 Basic weighted-average shares outstanding 46,165 45,595 Basic earnings per common share $ 0.08 $ 0.29 Diluted: Net income $ 3,700 $ 13,311 Income allocated to diluted participating securities 2 34 Net income available to common shareholders $ 3,698 $ 13,277 Basic weighted-average shares outstanding 46,165 45,595 Incremental shares from share-based compensation plans 6 680 Diluted weighted-average shares outstanding 46,171 46,275 Diluted earnings per common share $ 0.08 $ 0.29

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Basis Of Presentation And Organization [Line Items]
Immaterial Error Correction		During the fourth quarter of fiscal 2016, we identified an immaterial prior period error in our lower-of-cost-or-marketadjustment for aged inventory. The immaterial error was corrected with a charge during the fourth quarter of fiscal 2016 resulting in an out-of-period increase to Cost of merchandise sold. The effect of this immaterial error on the first quarter of 2016 would have been an increase of $0.3 million to Cost of merchandise sold and a decrease of $0.2 million in net income.
Cost of merchandise sold	$ 241,779	$ 246,820
Net income (loss)	3,700	13,311
Income tax expense	5,223	8,141
Accounting Standards Update 2016-09 [Member]
Basis Of Presentation And Organization [Line Items]
Income tax expense	$ 1,100
Shortfall for share-based payments		(100)
Restatement Adjustment [Member]
Basis Of Presentation And Organization [Line Items]
Cost of merchandise sold		300
Net income (loss)		$ (200)

Basis of Presentation - Major C

Basis of Presentation - Major Components of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016
Accrued Liabilities and Other Liabilities [Abstract]
Compensation and employee benefits	$ 7,116	$ 11,016	$ 9,214
Unredeemed gift and merchandise return cards	9,559	11,954	8,950
Property taxes	12,876	14,274	11,073
Accrued vacation	7,715	7,715	7,306
Other	34,094	27,813	38,842
Accrued expenses and other current liabilities	$ 71,360	$ 72,772	$ 75,385

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Apr. 14, 2017	Apr. 29, 2017	Apr. 30, 2016
Schedule of Shareholders' Equity [Line Items]
Dividends declared and cash paid per share	$ 0.075
Repurchase of shares		56,753	143,282
Repurchase shares value		$ 0.2	$ 0.9
Board of Directors [Member]
Schedule of Shareholders' Equity [Line Items]
Repurchase of shares		0	0
Repurchase of shares, remaining		439,777

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. 29, 2017	Apr. 30, 2016
Basic:
Net income	$ 3,700	$ 13,311
Income allocated to participating securities	2	34
Net income available to common shareholders	$ 3,698	$ 13,277
Basic weighted-average shares outstanding	46,165	45,595
Basic earnings per common share	$ 0.08	$ 0.29
Diluted:
Net income	$ 3,700	$ 13,311
Income allocated to diluted participating securities	2	34
Net income available to common shareholders	$ 3,698	$ 13,277
Basic weighted-average shares outstanding	46,165	45,595
Incremental shares from share-based compensation plans	6	680
Diluted weighted-average shares outstanding	46,171	46,275
Diluted earnings per common share	$ 0.08	$ 0.29

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Earnings Per Share [Abstract]
Antidilutive options and market based performance shares	3.9	1.3

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Actual and anticipated legal settlements accrued	$ 0	$ 1,400,000