Print page |
Email page
| 
Download PDF
|
Add to briefcase
« Previous Release | Next Release »
JACKSONVILLE, Fla., May 22, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Stein Mart, Inc. (Nasdaq: SMRT) today announced financial results for its first quarter ended May 3, 2008.
First quarter results
For the first quarter of 2008, the Company earned $7.0 million or $0.17 per diluted share as compared to net income of $8.1 million or $0.18 per diluted share in 2007. As previously reported, net sales for the first quarter decreased 6.4 percent to $352.1 million from $376.1 million the previous year and comparable store sales decreased 9.3 percent from the first quarter of 2007.
Gross profit decreased to $97.7 million or 27.8 percent of net sales from $104.9 million or 27.9 percent of net sales in the same period last year. The gross profit rate was essentially flat, with increased occupancy costs offset by improved markup and decreased markdowns.
Selling, general and administrative (SG&A) expenses were $91.5 million or 26.0 percent of net sales as compared to $97.4 million or 25.9 percent of net sales during the same period last year. The SG&A rate was higher due to a lack of leverage on negative comparable store sales, but reflected a decrease of $5.9 million primarily from reduced advertising and corporate office expenses.
"Entering the period with lowered levels of inventory compared to last year and a focused expense discipline was instrumental in our first quarter performance, and we believe those efforts will continue to be critical as we move through the months ahead," noted president and chief executive officer Linda M. Farthing. "While we have had some individual event success, the persistent trend of decreased sales absent promotional drivers is troubling, and we remain concerned about the consumer's cautious mindset as we look out at the rest of the year."
Farthing went on to say, "If these sales trends persist, we will have to take steeper markdowns in the second quarter in order to reach our goal of keeping inventories current. And while we were able to reduce expenditures in the first quarter, there will be less opportunity for savings in the second quarter."
Other news
The Company continues to work on initiatives related to merchandising, expense control, inventory management and the in-store experience. A greater proportion of recognizable brands in the store and more opportunistic purchases are appearing on the sales floor. The reduction of SG&A expenses continues to be a priority, with a focus on non-merchandise procurement and other indirect spend categories. Using tools like a stronger customer relationship management program, strategies are being developed to deliver a stronger value message to potential and returning customers.
Store network
During the first quarter of 2008, five new stores (Westboro, MA; Phoenix, AZ; Indianapolis, IN; and Franklin Park and Holmdel, NJ) were opened and one was closed. At May 3, 2008, there were 284 stores in operation as compared to 270 at the same time last year.
Conference Call
Management will hold a conference call for investment analysts at 10 a.m. ET this morning to discuss these results. The call may be heard on the investor relations portion of the Company's website at http://ir.steinmart.com. A replay of the presentation will be available on the website until May 30, 2008.
About Stein Mart
Stein Mart stores offer the fashion merchandise, service and presentation of a better department or specialty store, at prices competitive with off- price retail chains. Currently with locations from California to Massachusetts, Stein Mart's focused assortment of merchandise features moderate to better fashion apparel for women and men, as well as accessories, gifts, linens and shoes.
SAFE HARBOR STATEMENT>>>>>>>Except for historical information contained herein, the statements in this release may be forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company does not assume any obligation to update or revise any forward-looking statements even if experience or future changes make it clear that projected results expressed or implied will not be realized. Forward-looking statements involve known and unknown risks and uncertainties that may cause Stein Mart's actual results in future periods to differ materially from forecasted or expected results. Those risks include, without limitation:
-- changes in consumer spending due to current events and/or general
economic conditions
-- the effectiveness of advertising, marketing and promotional strategies
-- on-going competition from other retailers
-- changing preferences in apparel
-- unanticipated weather conditions and unseasonable weather
-- adequate sources of merchandise at acceptable prices
-- availability of new store sites at acceptable lease terms
-- the Company's ability to attract and retain qualified employees to
support planned growth
-- ability to successfully implement strategies to exit or improve under-
performing stores
-- disruption of the Company's distribution system
-- acts of terrorism
and the other risks and uncertainties described in the Company's filings with the Securities and Exchange Commission.
SMRT-F
Additional information about Stein Mart, Inc. can be found at
www.steinmart.com
Stein Mart, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except for share data)
May 3, February 2, May 5,
2008 2008 2007
ASSETS
Current assets:
Cash and cash equivalents $22,473 $15,145 $23,484
Trade and other receivables 11,493 12,372 10,172
Inventories 280,573 262,496 308,279
Income taxes receivable 10,060 14,103 -
Prepaid expenses and other current assets 15,309 13,985 17,151
Total current assets 339,908 318,101 359,086
Property and equipment, net 109,948 110,687 112,376
Other assets 33,535 31,751 28,633
Total assets $483,391 $460,539 $500,095
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $80,392 $77,124 $91,635
Accrued liabilities 73,774 75,508 73,093
Income taxes payable - - 9,108
Total current liabilities 154,166 152,632 173,836
Notes payable to banks 40,000 27,133 5,420
Other liabilities 28,864 24,085 24,359
Total liabilities 223,030 203,850 203,615
COMMITMENTS AND CONTINGENCIES
Stockholders' 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; 42,078,878, 41,831,182 and
43,850,458 shares issued and outstanding,
respectively 421 418 438
Additional paid-in capital 6,489 5,288 24,888
Retained earnings 253,451 250,983 271,154
Total stockholders' equity 260,361 256,689 296,480
Total liabilities and stockholders'
equity $483,391 $460,539 $500,095
Stein Mart, Inc.
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
13 Weeks Ended 13 Weeks Ended
May 3, 2008 May 5, 2007
Net sales $352,123 $376,119
Cost of merchandise sold 254,377 271,209
Gross profit 97,746 104,910
Selling, general and administrative expenses 91,539 97,411
Other income, net 5,930 5,379
Income from operations 12,137 12,878
Interest (expense) income, net (367) 127
Income before income taxes 11,770 13,005
Provision for income taxes 4,772 4,893
Net income $6,998 $8,112
Net income per share:
Basic $0.17 $0.19
Diluted $0.17 $0.18
Weighted-average shares outstanding:
Basic 41,251 43,240
Diluted 41,435 43,912
Stein Mart, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
13 Weeks 13 Weeks
Ended Ended
May 3, May 5,
2008 2007
Cash flows from operating activities:
Net income $6,998 $8,112
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation and amortization 6,497 6,365
Impairment of property and other assets - 108
Store closing charges 111 55
Deferred income taxes 271 (1,092)
Share-based compensation 1,258 2,300
Tax benefit from equity issuances - 293
Excess tax benefits from share-based
compensation - (267)
Changes in assets and liabilities:
Trade and other receivables 879 (8)
Inventories (18,077) (17,336)
Income taxes receivable 4,043 -
Prepaid expenses and other current assets (1,729) (687)
Other assets (1,327) (2,410)
Accounts payable 3,268 8,392
Accrued liabilities (2,547) (4,938)
Income taxes payable - (3,983)
Other liabilities 264 2,005
Net cash used in operating activities (91) (3,091)
Cash flows from investing activities:
Capital expenditures (5,448) (5,266)
Purchases of short-term investments - (36,580)
Sales of short-term investments - 47,415
Net cash (used in) provided by investing
activities (5,448) 5,569
Cash flows from financing activities:
Borrowings under notes payable to banks 242,212 7,420
Repayments of notes payable to banks (229,345) (2,000)
Cash dividends paid - (2,734)
Excess tax benefits from share-based compensation - 267
Proceeds from exercise of stock options - 3,450
Repurchase of common stock - (2,957)
Net cash provided by financing activities 12,867 3,446
Net increase in cash and cash equivalents 7,328 5,924
Cash and cash equivalents at beginning of year 15,145 17,560
Cash and cash equivalents at end of period $22,473 $23,484
SOURCE Stein Mart, Inc.
http://www.steinmart.com
Copyright (C) 2008 PR Newswire. All rights reserved
News Provided by COMTEX