Citi Trends Announces Fourth Quarter and Fiscal 2012 Results

Citi Trends Announces Fourth Quarter and Fiscal 2012 Results

SAVANNAH, Ga.--(BUSINESS WIRE)-- Citi Trends, Inc. (Nasdaq: CTRN  ) today reported results for the fourth quarter and fiscal year ended February 2, 2013.

The Company’s 2012 fiscal year contained 53 weeks compared with the traditional 52 weeks in fiscal 2011. Accordingly, comparisons of total sales for the fourth quarter and full year of fiscal 2012 to the same periods in 2011 are affected by an extra week of sales in 2012. However, for comparable store sales, the Company is reporting on a comparable weeks basis (e.g. the 14 and 53 weeks ended February 2, 2013 compared with the 14 and 53 weeks ended February 4, 2012).

Financial Highlights – 14-week fourth quarter ended February 2, 2013

Total sales in the 14-week quarter ended February 2, 2013 decreased 1.5% to $175.7 million compared with $178.4 million in the 13-week quarter ended January 28, 2012. The extra week contributed $8.8 million to total sales in fiscal 2012. Fourth quarter comparable store sales decreased 11.8%, comparing the 14 weeks ended February 2, 2013 with the 14 weeks ended February 4, 2012.

A net loss of $0.7 million, or $0.05 per diluted share, was recognized in the fourth quarter of 2012 compared with a net loss of $5.3 million, or $0.36 per diluted share, in last year’s fourth quarter.

Financial Highlights – 53-week fiscal year ended February 2, 2013

Total sales in the 53-week fiscal year ended February 2, 2013 increased 2.2% to $654.7 million compared with $640.8 million in the 52-week fiscal year ended January 28, 2012. Comparable store sales decreased 5.6%, comparing the 53 weeks ended February 2, 2013 with the 53 weeks ended February 4, 2012.

A net loss of $2.2 million, or $0.15 per diluted share, was recognized in fiscal 2012 compared with a net loss of $10.0 million, or $0.69 per diluted share, in fiscal 2011.

The Company opened 4 stores, relocated or expanded 4 others, and closed 2 stores in 2012.

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) 231-2921. A replay of the conference call will be available until March 22, 2013, by dialing (402) 977-9140 and entering the passcode, 21645977.

The live broadcast of Citi Trends' 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 until March 22, 2013.

During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after year-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.

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 year-end 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 CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
       
Fourteen Weeks Ended Thirteen Weeks Ended
February 2, 2013 January 28, 2012
(unaudited) (unaudited)
Net sales $ 175,656 $ 178,356
Cost of sales   118,165     124,532  
Gross profit 57,491 53,824
Selling, general and administrative expenses 52,678 52,206
Depreciation and amortization 5,797 6,569
Asset impairment   517     4,209  
Loss from operations (1,501 ) (9,160 )
Interest income 66 63
Interest expense   (49 )   (52 )
Loss before income taxes (1,484 ) (9,149 )
Income tax benefit   (780 )   (3,834 )
Net loss $ (704 ) $ (5,315 )
 
Basic net loss per common share $ (0.05 ) $ (0.36 )
Diluted net loss per common share $ (0.05 ) $ (0.36 )
 
 
Weighted average shares used to compute basic net loss per share   14,699     14,606  
Weighted average shares used to compute diluted net loss per share   14,699     14,606  
 
 
Fifty-Three Weeks Ended Fifty-Two Weeks Ended
February 2, 2013 January 28, 2012
(unaudited) (unaudited)
Net sales $ 654,653 $ 640,824
Cost of sales   426,904     420,321  
Gross profit 227,749 220,503
Selling, general and administrative expenses 207,411 207,025
Depreciation and amortization 23,950 24,958
Asset impairment   1,177     6,514  
Loss from operations (4,789 ) (17,994 )
Interest income 260 243
Interest expense   (212 )   (79 )
Loss before income taxes (4,741 ) (17,830 )
Income tax benefit   (2,516 )   (7,816 )
Net loss $ (2,225 ) $ (10,014 )
 
Basic net loss per common share $ (0.15 ) $ (0.69 )
Diluted net loss per common share $ (0.15 ) $ (0.69 )
 
 
Weighted average shares used to compute basic net loss per share   14,672     14,589  
Weighted average shares used to compute diluted net loss per share   14,672     14,589  
 
 
               
CITI TRENDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)
 
February 2, 2013 January 28, 2012
(unaudited) (unaudited)
Assets:
Cash and cash equivalents $ 37,263 $ 41,986
Short-term investment securities 12,771 902
Inventory 141,473 131,526
Other current assets 19,285 28,961
Property and equipment, net 70,995 90,541
Long-term investment securities 5,754 18,840
Other noncurrent assets   4,604   2,021
Total assets $ 292,145 $ 314,777
 
Liabilities and Stockholders' Equity:
Accounts payable $ 62,690 $ 78,941
Accrued liabilities 22,564 26,074
Other current liabilities 660 603
Noncurrent liabilities   10,260   12,756
Total liabilities 96,174 118,374
 
Total stockholders' equity   195,971   196,403
Total liabilities and stockholders' equity $ 292,145 $ 314,777



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:

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