News Column

Citi Trends Announces Second Quarter 2014 Results

August 20, 2014

Second quarter 2014 loss per share of $(0.17) compared with $(0.37) last year

First half 2014 income per share of $0.43 compared with $0.05 last year

Comparable store sales increased 5.3% in second quarter

SAVANNAH, Ga.--(BUSINESS WIRE)-- Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the second quarter of fiscal 2014.

Financial Highlights – Second quarter ended August 2, 2014

Total sales in the second quarter ended August 2, 2014 increased 5.2% to $145.0 million compared with $137.8 million in the second quarter ended August 3, 2013. Comparable store sales increased 5.3% in the quarter.

Net loss was $(2.6) million, or $(0.17) per diluted share, in the second quarter of 2014 compared with a net loss of $(5.5) million, or $(0.37) per diluted share, in last year’s second quarter.

Financial Highlights – First half ended August 2, 2014

Total sales in the first half of fiscal 2014 increased 4.2% to $333.0 million compared with $319.6 million in the first half of fiscal 2013. Comparable store sales increased 4.7% in the first half of this year. Net income increased to $6.5 million compared with $0.7 million in last year’s first half. Earnings per diluted share were $0.43 in the first half of 2014 compared with $0.05 in the first half of 2013.

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) 231-2908. A replay of the conference call will be available until August 27, 2014, by dialing (402) 977-9140 and entering the passcode, 21705727.

The live broadcast of Citi Trends' conference call will be available online at the Company's website, www.cititrends.com, as well as www.cititrends.com/http/ircititrendscom, beginning today at 9 a.m. ET. The online replay will follow shortly after the call and will be available for replay for one year.

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

About Citi Trends

Citi Trends, Inc. is a value-priced retailer of urban fashion apparel and accessories for the entire family. The Company operates 509 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 CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)
         
 
Thirteen Weeks Ended

August 2, 2014
Thirteen Weeks Ended

August 3, 2013
(unaudited) (unaudited)
Net sales $ 144,987 $ 137,821
 
Cost of sales (exclusive of depreciation shown separately below) (91,540 ) (88,299 )
Selling, general and administrative expenses (53,197 ) (51,920 )
Depreciation (5,108 ) (5,667 )
Asset impairment   (83 )   (654 )
Loss from operations (4,941 ) (8,719 )
Interest income 39 67
Interest expense   (56 )   (49 )
Loss before income tax benefit (4,958 ) (8,701 )
Income tax benefit   (2,379 )   (3,208 )
Net loss $ (2,579 ) $ (5,493 )
 
Basic net loss per common share $ (0.17 ) $ (0.37 )
Diluted net loss per common share $ (0.17 ) $ (0.37 )
 
 
Weighted average shares used to compute basic net loss per share   14,972     14,801  
Weighted average shares used to compute diluted net loss per share   14,972     14,801  
 
 
 
 
 
Twenty-Six Weeks Ended

August 2, 2014
Twenty-Six Weeks Ended

August 3, 2013
(unaudited) (unaudited)
Net sales $ 333,003 $ 319,649
 
Cost of sales (exclusive of depreciation shown separately below) (206,307 ) (202,804 )
Selling, general and administrative expenses (107,172 ) (103,828 )
Depreciation (10,268 ) (11,262 )
Asset impairment   (83 )   (681 )
Income from operations 9,173 1,074
Interest income 92 135
Interest expense   (104 )   (96 )
Income before income tax expense 9,161 1,113
Income tax expense   2,661     442  
Net income $ 6,500   $ 671  
 
Basic net income per common share $ 0.44   $ 0.05  
Diluted net income per common share $ 0.43   $ 0.05  
 
 
Weighted average shares used to compute basic net income per share   14,937     14,776  
Weighted average shares used to compute diluted net income per share   14,946     14,778  
 
 
CITI TRENDS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)
         
August 2, 2014August 3, 2013
(unaudited) (unaudited)
Assets:
Cash and cash equivalents $ 70,707 $ 61,242
Short-term investment securities 13,033 15,847
Inventory 120,456 120,402
Prepaid and other current assets 19,145 20,046
Property and equipment, net 51,746 65,213
Long-term investment securities 18,135 8,353
Other noncurrent assets   7,830   6,302
Total assets $ 301,052 $ 297,405
 
Liabilities and Stockholders' Equity:
Accounts payable $ 58,845 $ 64,292
Accrued liabilities 25,886 24,992
Other current liabilities 3,324 1,903
Noncurrent liabilities   6,588   8,743
Total liabilities 94,643 99,930
 
Total stockholders' equity   206,409   197,475
Total liabilities and stockholders' equity $ 301,052 $ 297,405
 





Citi Trends, Inc.

Bruce Smith, 912-443-2075

Chief Financial Officer

or

Ed Anderson, 912-443-3705

Chairman & Chief Executive Officer

Source: Citi Trends, Inc.


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