Citi Trends Announces Third Quarter 2012 Results

Before you go, we thought you'd like these...
Before you go close icon

Citi Trends Announces Third Quarter 2012 Results

Third quarter sales increased 4.1%; comparable store sales increased 0.5%

Third quarter 2012 loss per share of $0.25 compared with $0.46 loss last year


SAVANNAH, Ga.--(BUSINESS WIRE)-- Citi Trends, Inc. (NAS: CTRN) today reported results for the third quarter of fiscal 2012.

Financial Highlights - Third quarter ended October 27, 2012

Total sales in the third quarter ended October 27, 2012 increased 4.1% to $149.0 million compared with $143.1 million in the third quarter ended October 29, 2011. Comparable store sales increased 0.5%.

Net loss was $3.7 million, or $0.25 per diluted share, in the third quarter of fiscal 2012, compared with a net loss of $6.8 million, or $0.46 per diluted share, in the third quarter of fiscal 2011. Last year's third quarter was affected by severance costs of $1.2 million, incurred primarily in connection with the elimination of 40 positions in the Company's corporate offices, distribution centers and store organization. The severance expense had an adverse impact on loss per diluted share of $0.05 in the third quarter of fiscal 2011.

The Company opened one store and relocated or expanded two others in the third quarter of 2012, reaching a total store count of 513 at the end of the quarter.

Financial Highlights - First three quarters ended October 27, 2012

Total sales in the first three quarters of fiscal 2012 increased 3.6% to $479.0 million compared with $462.5 million in the same period of fiscal 2011. Comparable store sales decreased 3.1%. Net loss was $1.5 million, or $0.10 per diluted share, in the first three quarters of this year, compared with a net loss of $4.7 million, or $0.32 per diluted share, in last year's first three quarters.

Investor Conference Call and Webcast

Citi Trends will host a conference call today at 9:00 a.m. ET. The number to call for the live interactive teleconference is (212) 231-2906. A replay of the conference call will be available until November 27, 2012, by dialing (402) 977-9140 and entering the passcode, 21602893. The live broadcast of the quarterly conference call will be available online at the Company's website, www.cititrends.com, as well as http://ir.cititrends.com/events.cfm, beginning today at 9:00 a.m. ET. The online replay will follow shortly after the call and continue through November 27, 2012.

During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends after quarter-end. The Company's responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.

The Company's next scheduled press release is scheduled for February 13, 2013 and will consist of a report on fourth quarter sales results.

About Citi Trends

Citi Trends, Inc. is a value-priced retailer of urban fashion apparel and accessories for the entire family. The Company operates 513 stores located in 29 states. Citi Trends' website address is www.cititrends.com. CTRN-E

Forward-Looking Statements

All statements other than historical facts contained in this news release, including statements regarding our future financial results and position, business policy and plans and objectives of management for future operations, are forward-looking statements that are subject to material risks and uncertainties.The words "believe," "may," "could," "plans," "estimate," "continue," "anticipate," "intend," "expect" and similar expressions, as they relate to Citi Trends, are intended to identify forward-looking statements.Statements with respect to earnings guidance are forward-looking statements.Investors are cautioned that any such forward-looking statements are subject to the finalization of the Company's quarterly financial and accounting procedures, are not guarantees of future performance or results and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Actual results or developments may differ materially from those included in the forward-looking statements as a result of various factors which are discussed in Citi Trends, Inc. filings with the Securities and Exchange Commission.These risks and uncertainties include, but are not limited to, uncertainties relating to economic conditions, growth risks, consumer spending patterns, competition within the industry, competition in our markets and the ability to anticipate and respond to fashion trends.Any forward-looking statements by the Company, with respect to earnings guidance or otherwise, are intended to speak only as of the date such statements are made.Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, Citi Trends does not undertake to publicly update any forward-looking statements in this news release or with respect to matters described herein, whether as a result of any new information, future events or otherwise.

 
CITI TRENDS, INC.
CONDENSED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
 
  Thirteen Weeks Ended  Thirteen Weeks Ended
October 27, 2012October 29, 2011
(unaudited)(unaudited)
Net sales$148,985$143,067
Cost of sales 97,808  94,909 
Gross profit51,17748,158
Selling, general and administrative expenses51,13253,059
Depreciation and amortization5,9706,454
Asset impairment 660  696 
Loss from operations(6,585)(12,051)
Interest income6661
Interest expense (50) (17)
Loss before income tax benefit(6,569)(12,007)
Income tax benefit (2,869) (5,246)
Net loss$(3,700)$(6,761)
 
Basic net loss per common share$(0.25)$(0.46)
Diluted net loss per common share$(0.25)$(0.46)
 
 
Weighted average shares used to compute basic net loss per share 14,677  14,602 
Weighted average shares used to compute diluted net loss per share 14,677  14,602 
 
 
 
 
Thirty-Nine Weeks EndedThirty-Nine Weeks Ended
October 27, 2012October 29, 2011
(unaudited)(unaudited)
Net sales$478,997$462,468
Cost of sales 308,739  295,789 
Gross profit170,258166,679
Selling, general and administrative expenses154,733154,819
Depreciation and amortization18,15318,389
Asset impairment 660  2,305 
Loss from operations(3,288)(8,834)
Interest income194180
Interest expense (163) (27)
Loss before income tax benefit(3,257)(8,681)
Income tax benefit (1,736) (3,982)
Net loss$(1,521)$(4,699)
 
Basic net loss per common share$(0.10)$(0.32)
Diluted net loss per common share$(0.10)$(0.32)
 
 
Weighted average shares used to compute basic net loss per share 14,662  14,584 
Weighted average shares used to compute diluted net loss per share 14,662  14,584 
 
    
CITI TRENDS, INC.
CONDENSED BALANCE SHEETS (unaudited)
(in thousands)
 
October 27, 2012October 29, 2011
(unaudited)(unaudited)
Assets:
Cash and cash equivalents$36,195$33,225
Short-term investment securities4,734-
Inventory146,700127,156
Prepaid and other current assets20,02327,836
Assets held for sale1,4151,415
Property and equipment, net76,19795,369
Long-term investment securities14,95719,760
Other noncurrent assets 2,268 3,308
Total assets$302,489$308,069
 

Liabilities and Stockholders' Equity:

Accounts payable$67,098$64,120
Accrued liabilities25,69125,126
Other current liabilities2,5443,363
Noncurrent liabilities 11,126 12,974
Total liabilities106,459105,583
 

Total stockholders' equity

 196,030 202,486

Total liabilities and stockholders' equity

$302,489$308,069
 



Citi Trends, Inc.
Bruce Smith, 912-443-2075
Chief Financial Officer
or
Ed Anderson, 912-443-3705
Chairman & Chief Executive Officer

KEYWORDS:   United States  North America  Georgia

INDUSTRY KEYWORDS:

The article Citi Trends Announces Third Quarter 2012 Results originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners