Stein Mart, Inc. Revises Preliminary First Quarter 2016 Earnings Results
June 07 2016 - 7:30AM
Summary of changes to first quarter 2016
results:
Stein Mart, Inc. (NASDAQ:SMRT) today announced that it is revising
its preliminary financial results for the first quarter ended April
30, 2016 previously released on May 19, 2016. The revision, which
increases selling, general and administrative (SG&A) expenses
by $675,000, was required to record additional accruals for actual
and anticipated legal settlements. Subsequent to the previous
release but prior to the filing of our Form 10-Q for the first
quarter ended April 30, 2016, new facts developed on these existing
matters which resulted in the adjustment.
As a result of this revision, SG&A expenses for the first
quarter of 2016 now include $1.4 million of expense for actual and
anticipated legal settlements. The financial statements and EBITDA
table (see Note 1) included in this release reflect the changes
described above.
Our Form 10-Q for the fiscal quarter ended April 30, 2016 will
be filed with the Securities and Exchange Commission (SEC)
today.
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. With 283 locations from California to Massachusetts,
as well as steinmart.com, Stein Mart’s focused assortment of
merchandise features current season, moderate to better fashion
apparel for women and men, as well as accessories, shoes and home
fashions. For more information, please visit
www.steinmart.com.
Cautionary Statement Regarding Forward-Looking
Statements
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: consumer sensitivity to economic conditions,
competition in the retail industry, changes in consumer preferences
and fashion trends, ability to implement our strategic plans to
sustain profitable growth, effectiveness of advertising and
marketing, capital availability and debt levels, ability to
negotiate acceptable lease terms with current and potential
landlords, ability to successfully implement strategies to exit
under-performing stores, extreme and/or unseasonable weather
conditions, adequate sources of merchandise at acceptable prices,
dependence on certain key personnel and ability to attract and
retain qualified employees, impacts of seasonality, increases in
the cost of compensation and employee benefits, disruption of the
Company’s distribution process, dependence on imported merchandise,
information technology failures, data security breaches, single
supplier for shoe department, single provider for ecommerce
website, acts of terrorism, ability to adapt to new regulatory
compliance and disclosure obligations, material weaknesses in
internal control over financial reporting and other risks and
uncertainties described in the Company’s filings with the SEC.
SMRT-F
Additional information about Stein Mart, Inc. can
be found at www.steinmart.com
Stein Mart,
Inc. |
Condensed
Consolidated Statements of Income |
(Unaudited) |
(In thousands, except per
share amounts) |
|
|
|
|
|
|
13 Weeks Ended |
13 Weeks Ended |
|
|
April 30, 2016 |
May 2, 2015 |
|
|
|
|
Net sales |
|
$ |
355,712 |
|
$ |
353,521 |
|
Cost of merchandise sold |
|
|
246,820 |
|
|
245,141 |
|
Gross profit |
|
|
108,892 |
|
|
108,380 |
|
Selling, general and administrative expenses |
|
|
86,474 |
|
|
85,622 |
|
Operating income |
|
|
22,418 |
|
|
22,758 |
|
Interest expense, net |
|
|
966 |
|
|
686 |
|
Income before income taxes |
|
|
21,452 |
|
|
22,072 |
|
Income tax expense |
|
|
8,141 |
|
|
8,508 |
|
Net income |
|
$ |
13,311 |
|
$ |
13,564 |
|
|
|
|
|
Net income per share: |
|
|
|
Basic |
|
$ |
0.29 |
|
$ |
0.30 |
|
Diluted |
|
$ |
0.29 |
|
$ |
0.29 |
|
|
|
|
|
Weighted-average shares outstanding: |
|
|
|
Basic |
|
|
45,595 |
|
|
44,612 |
|
Diluted |
|
|
46,275 |
|
|
45,766 |
|
|
|
|
|
Stein Mart,
Inc. |
Condensed
Consolidated Balance Sheets |
(Unaudited) |
(In thousands, except
for share and per share data) |
|
|
|
|
|
April 30, 2016 |
|
January 30,
2016 |
|
May 2, 2015 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
16,317 |
|
|
$ |
11,830 |
|
|
$ |
17,190 |
|
Inventories |
|
316,897 |
|
|
|
293,608 |
|
|
|
302,781 |
|
Prepaid expenses and other current
assets |
|
22,676 |
|
|
|
18,586 |
|
|
|
24,586 |
|
Total current assets |
|
355,890 |
|
|
|
324,024 |
|
|
|
344,557 |
|
Property and equipment, net |
|
166,261 |
|
|
|
162,954 |
|
|
|
149,254 |
|
Other assets |
|
30,141 |
|
|
|
29,247 |
|
|
|
31,026 |
|
Total assets |
$ |
552,292 |
|
|
$ |
516,225 |
|
|
$ |
524,837 |
|
LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
152,807 |
|
|
$ |
105,569 |
|
|
$ |
164,092 |
|
Current portion of debt |
|
10,000 |
|
|
|
10,000 |
|
|
|
6,667 |
|
Accrued expenses and other current
liabilities |
|
75,385 |
|
|
|
71,571 |
|
|
|
67,219 |
|
Total current liabilities |
|
238,192 |
|
|
|
187,140 |
|
|
|
237,978 |
|
Long-term debt |
|
138,960 |
|
|
|
180,150 |
|
|
|
145,777 |
|
Deferred rent |
|
41,667 |
|
|
|
41,146 |
|
|
|
33,654 |
|
Other liabilities |
|
45,738 |
|
|
|
31,472 |
|
|
|
36,677 |
|
Total liabilities |
|
464,557 |
|
|
|
439,908 |
|
|
|
454,086 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
Shareholders’ 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; 46,372,908, 45,814,583
and 45,395,851 |
|
|
|
shares issued and outstanding,
respectively |
|
464 |
|
|
|
458 |
|
|
|
454 |
|
Additional paid-in capital |
|
44,370 |
|
|
|
42,801 |
|
|
|
37,476 |
|
Retained earnings |
|
43,175 |
|
|
|
33,337 |
|
|
|
33,249 |
|
Accumulated other comprehensive
loss |
|
(274 |
) |
|
|
(279 |
) |
|
|
(428 |
) |
Total shareholders’ equity |
|
87,735 |
|
|
|
76,317 |
|
|
|
70,751 |
|
Total liabilities and shareholders’
equity |
$ |
552,292 |
|
|
$ |
516,225 |
|
|
$ |
524,837 |
|
|
|
|
|
NOTE TO PRESS RELEASE
Note 1 – EBITDA:As used in this
release, EBITDA is defined as earnings before interest, income
taxes, depreciation and amortization. EBITDA is not a measure
of financial performance under generally accepted accounting
principles (GAAP). However, we present EBITDA in this release
because we consider it to be an important supplemental measure of
our performance and because it is frequently used by analysts,
investors and others to evaluate the performance of
companies. EBITDA is not calculated in the same manner by all
companies. EBITDA should be used as a supplement to results of
operations and cash flows as reported under GAAP and should not be
considered to be a more meaningful measure than, or an alternative
to, measures of operating performance as determined in accordance
with GAAP.
Reconciliation of Net Income to EBITDA and Adjusted
EBITDA |
Unaudited (in thousands) |
|
|
13
Weeks |
13
Weeks |
|
|
Ended |
Ended |
|
|
|
April 30,
2016 |
|
|
May 2,
2015 |
Net income |
$ |
13,311 |
|
$ |
13,564 |
Add back amounts for
computation of EBITDA: |
|
|
|
|
|
Interest expense,
net |
|
966 |
|
|
686 |
Income tax expense |
|
8,141 |
|
|
8,508 |
Depreciation and
amortization |
|
7,660 |
|
|
7,223 |
EBITDA |
|
30,078 |
|
|
29,981 |
Adjustments: |
|
|
Expense related to
legal settlements |
|
1,425 |
|
|
84 |
E-commerce losses |
|
1,052 |
|
|
501 |
Store closing and
impairment charges |
|
1 |
|
|
55 |
Pre-opening costs |
|
1,126 |
|
|
344 |
Total adjustments |
|
3,604 |
|
|
984 |
Adjusted EBITDA |
$ |
33,682 |
|
$ |
30,965 |
|
|
|
|
|
|
For more information:
Linda L. Tasseff
Director, Investor Relations
(904) 858-2639
ltasseff@steinmart.com
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