Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the
third quarter of fiscal 2010.
Financial Highlights – Third quarter
ended October 30, 2010
Total sales in the third quarter ended October 30, 2010
increased 10.0% to $140.0 million compared with $127.4 million in
the third quarter ended October 31, 2009. Comparable store sales
decreased 4.2% in the third quarter. A net loss of $394,000 was
recognized in this year’s third quarter compared with net income of
$606,000 in the third quarter of 2009. Loss per diluted share was
$(0.03) in the third quarter of 2010 compared with earnings per
diluted share of $0.04 in the third quarter of 2009.
Store activity in the third quarter of 2010 included 33 new
openings and 5 relocations/expansions, resulting in a total store
count of 458 at the end of the quarter.
Financial Highlights – First three
quarters ended October 30, 2010
Total sales in the first three quarters of fiscal 2010 increased
17.9% to $450.5 million compared with $382.1 million in the same
period of fiscal 2009. Comparable store sales increased 2.2% in the
first three quarters of this year. Net income increased 35.7% to
$11.5 million compared with $8.5 million in last year’s first three
quarters. Earnings per diluted share increased to $0.79 in the
first three quarters of 2010 compared with $0.58 in the same period
of 2009.
Fiscal 2010 Outlook
The Company estimates that 2010 earnings will be in a range of
$1.50 to $1.60 per diluted share which includes an anticipated
comparable store sales decrease of 1% to 4% in the fourth quarter
of 2010. The effective tax rate for 2010 is expected to be in a
range of 34% to 35%.
The Company reminds investors of the complexity of accurately
assessing future results given the difficulty in predicting fashion
trends, consumer preferences and general economic conditions and
the impact of other business variables. See “Forward-Looking
Statements” below for more information regarding these
uncertainties.
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) 231-2938. A replay of the conference call will be
available until November 29, 2010, by dialing (402) 977-9140
and entering the passcode, 21463760. 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 through November 29, 2010.
During the conference call, the Company may discuss and answer
questions concerning business and financial developments and
trends. 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. After opening 2
stores thus far in November 2010, the Company currently operates
460 stores located in 27 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. 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 30, 2010
October 31, 2009 (unaudited) (unaudited) Net sales $ 140,037
$ 127,356 Cost of sales 88,356 79,720
Gross profit 51,681 47,636 Selling, general and administrative
expenses 47,243 41,989 Depreciation and amortization 5,324
4,851 (Loss) income from operations (886 ) 796
Interest income 41 85 Interest expense (8 ) (17 ) Unrealized gain
on investment securities - 57 (Loss)
income before income tax (benefit) expense (853 ) 921 Income tax
(benefit) expense (459 ) 315 Net (loss) income
$ (394 ) $ 606 Basic net (loss) income per common
share $ (0.03 ) $ 0.04 Diluted net (loss) income per common
share $ (0.03 ) $ 0.04 Net (loss) income attributable
to common shares (1): Basic $ (394 ) $ 593 Diluted $ (394 )
$ 593 Weighted average shares used to compute basic
net (loss) income per share 14,519 14,370
Weighted average shares used to compute diluted net (loss)
income per share 14,519 14,409
Thirty-Nine Weeks Ended Thirty-Nine Weeks
Ended October 30, 2010 October 31, 2009
(unaudited) (unaudited) Net sales $ 450,485 $ 382,058 Cost of sales
278,134 234,640 Gross profit 172,351
147,418 Selling, general and administrative expenses 140,119
121,116 Depreciation and amortization 14,843
13,679 Income from operations 17,389 12,623 Interest income
140 329 Interest expense (17 ) (86 ) Income before
income tax expense 17,512 12,866 Income tax expense 6,024
4,400 Net income $ 11,488 $ 8,466
Basic net income per common share $ 0.79 $
0.58 Diluted net income per common share $ 0.79 $
0.58 Net income attributable to common shares (1):
Basic $ 11,488 $ 8,289 Diluted $ 11,488 $
8,289 Weighted average shares used to compute basic
net income per share 14,497 14,351
Weighted average shares used to compute diluted net income per
share 14,518 14,383 (1) Net of
income allocated to nonvested restricted stockholders
CITI TRENDS, INC. CONDENSED BALANCE SHEETS
(unaudited) (in thousands)
October 30, 2010 October 31, 2009
(unaudited) (unaudited) Assets: Cash and cash equivalents $ 69,632
$ 32,487 Short-term investment securities 4,752 42,225 Inventory
115,273 105,314 Other current assets 21,995 16,420 Property and
equipment, net 76,879 62,422 Other noncurrent assets 4,470
4,282 Total assets $ 293,001 $ 263,150 Liabilities
and Stockholders' Equity: Accounts payable $ 61,355 $ 60,762
Accrued liabilities 22,111 20,263 Other current liabilities 3,200
3,504 Noncurrent liabilities 10,422 9,719 Total
liabilities 97,088 94,248 Total stockholders' equity
195,913 168,902 Total liabilities and stockholders' equity $
293,001 $ 263,150
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