Citi Trends Draws Down on Credit Facility
March 23 2020 - 7:00AM
Business Wire
Citi Trends, Inc. (NASDAQ: CTRN) announced today that it has
drawn down $43.7 million in principal amount under its committed
$50 million revolving credit facility.
The Company’s borrowing under its revolving credit facility was
a proactive measure taken by the Company to increase its cash
position and preserve financial flexibility in light of current
uncertainties resulting from the coronavirus (COVID-19) outbreak.
In accordance with the terms of the revolving credit facility, the
proceeds from this borrowing may in the future be used for working
capital, general corporate purposes or other purposes permitted by
the revolving credit facility.
The draw down on the facility is in addition to the actions
previously announced that are being taken by the Company to
strengthen its financial position and balance sheet and preserve
liquidity during these uncertain times. These additional actions
include reviewing all operating expenses, reducing capital
expenditures, reducing inventory as appropriate and for the time
being, the Company is not intending to repurchase any shares under
the previously announced share repurchase program.
About Citi Trends
Citi Trends, Inc. is a value-priced retailer of fashion apparel,
accessories and home goods for the entire family. The Company
operates 574 stores located in 33 states. Citi Trends’ website
address is www.cititrends.com. CTRN-G
Forward-Looking
Statements
All statements other than historical facts contained in this
news release are forward-looking statements that are subject to
material risks and uncertainties. The words "believe," "may,"
"could," "plans," "estimate," "continue," "anticipate," "intend,"
"expect," “upcoming,” “trend” and similar expressions, as they
relate to the Company, are intended to identify forward-looking
statements, although not all forward-looking statements contain
such language. Investors are cautioned that any such
forward-looking statements 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 the Company’s filings with the Securities and Exchange
Commission, including those set forth under the heading “Item 1A.
Risk Factors” in the Company’s Form 10-K for the fiscal year ended
February 2, 2019. These risks and uncertainties include, but are
not limited to, potential risks and uncertainties relating to the
ultimate geographic spread of the coronavirus (COVID-19), the
severity of the disease, the duration of the COVID-19 outbreak,
actions that may be taken by governmental authorities to contain
the COVID-19 outbreak or to treat its impact, the potential
negative impacts of COVID-19 on the global economy and foreign
sourcing and the impacts of COVID-19 on the Company's financial
condition and business operation. Any forward-looking statements by
the Company 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, the
Company 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200323005088/en/
Investor Relations Contact: Tom Filandro ICR, Inc. (646)
277-1235
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