Citi Trends Announces First Quarter 2012 Results

Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the first quarter of fiscal 2012.

Financial Highlights – First quarter ended April 28, 2012

Total sales in the first quarter ended April 28, 2012 increased 4.5% to $197.7 million compared with $189.2 million in the first quarter ended April 30, 2011. Comparable store sales decreased 5.0% in the first quarter. Net income was $10.1 million, or $0.69 per diluted share, in the first quarter of 2012, compared with $12.1 million, or $0.83 per diluted share, in last year’s first quarter.

The Company opened two stores, relocated one store, and closed two stores in the first quarter of 2012, resulting in a total store count of 511 at the end of the quarter.

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 [phone]. A replay of the conference call will be available until May 23, 2012, by dialing [phone] and entering the passcode, 21575848. 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 May 23, 2012.

During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends 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 511 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 INCOME

(unaudited)

(in thousands, except per share data)

Thirteen Weeks Ended

Thirteen Weeks Ended

April 28, 2012

April 30, 2011

        
      
      
        
        
        
        
        
        
        
          (unaudited)
        
        
        
        
        
        
          (unaudited)
        
      
      
        
          Net sales
        
        
        
        
        
        
          $
        
        
          197,694
        
        
        
        
        
        
        
        
          $
        
        
          189,168
        
        
        
      
      
        
          Cost of sales
        
        
        
        
        
        
           
        
        
          123,028
        
        
           
        
        
        
        
        
        
           
        
        
          114,099
        
        
           
        
      
      
        
          Gross profit
        
        
        
        
        
        
        
        
          74,666
        
        
        
        
        
        
        
        
        
        
          75,069
        
        
        
      
      
        
          Selling, general and administrative expenses
        
        
        
        
        
        
        
        
          52,669
        
        
        
        
        
        
        
        
        
        
          51,072
        
        
        
      
      
        
          Depreciation and amortization
        
        
        
        
        
        
           
        
        
          6,145
        
        
           
        
        
        
        
        
        
           
        
        
          5,584
        
        
           
        
      
      
        
          Income from operations
        
        
        
        
        
        
        
        
          15,852
        
        
        
        
        
        
        
        
        
        
          18,413
        
        
        
      
      
        
          Interest income
        
        
        
        
        
        
        
        
          62
        
        
        
        
        
        
        
        
        
        
          54
        
        
        
      
      
        
          Interest expense
        
        
        
        
        
        
           
        
        
          (49
        
        
          )
        
        
        
        
        
        
           
        
        
          (4
        
        
          )
        
      
      
        
          Income before income taxes
        
        
        
        
        
        
        
        
          15,865
        
        
        
        
        
        
        
        
        
        
          18,463
        
        
        
      
      
        
          Income tax expense
        
        
        
        
        
        
           
        
        
          5,761
        
        
           
        
        
        
        
        
        
           
        
        
          6,370
        
        
           
        
      
      
        
          Net income
        
        
        
        
        
        
          $
        
        
          10,104
        
        
           
        
        
        
        
        
        
          $
        
        
          12,093
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Basic net income per common share
        
        
        
        
        
        
          $
        
        
          0.69
        
        
           
        
        
        
        
        
        
          $
        
        
          0.83
        
        
           
        
      
      
        
          Diluted net income per common share
        
        
        
        
        
        
          $
        
        
          0.69
        
        
           
        
        
        
        
        
        
          $
        
        
          0.83
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Weighted average shares used to compute basic net income per share
        
        
        
        
        
        
           
        
        
          14,636
        
        
           
        
        
        
        
        
        
           
        
        
          14,554
        
        
           
        
      
      
        
          Weighted average shares used to compute diluted net income per share
        
        
        
        
        
        
           
        
        
          14,637
        
        
           
        
        
        
        
        
        
           
        
        
          14,567
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

CITI TRENDS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands)

April 28, 2012

April 30, 2011

        
      
      
        
        
        
        
        
        
        
          (unaudited)
        
        
        
        
        
        
          (unaudited)
        
      
      
        
          Assets:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cash and cash equivalents
        
        
        
        
        
        
          $
        
        
          63,964
        
        
        
        
        
        
        
        
          $
        
        
          76,847
        
        
        
      
      
        
          Short-term investment securities
        
        
        
        
        
        
        
        
          1,637
        
        
        
        
        
        
        
        
        
        
          -
        
        
        
      
      
        
          Inventory
        
        
        
        
        
        
        
        
          115,008
        
        
        
        
        
        
        
        
        
        
          113,380
        
        
        
      
      
        
          Prepaid and other current assets
        
        
        
        
        
        
        
        
          17,749
        
        
        
        
        
        
        
        
        
        
          15,828
        
        
        
      
      
        
          Property and equipment, net
        
        
        
        
        
        
        
        
          85,622
        
        
        
        
        
        
        
        
        
        
          91,175
        
        
        
      
      
        
          Long-term investment securities
        
        
        
        
        
        
        
        
          18,088
        
        
        
        
        
        
        
        
        
        
          16,824
        
        
        
      
      
        
          Other noncurrent assets
        
        
        
        
        
        
           
        
        
          3,022
        
        
           
        
        
        
        
        
        
           
        
        
          3,132
        
        
           
        
      
      
        
          Total assets
        
        
        
        
        
        
          $
        
        
          305,090
        
        
           
        
        
        
        
        
        
          $
        
        
          317,186
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Liabilities and Stockholders' Equity:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Accounts payable
        
        
        
        
        
        
          $
        
        
          59,996
        
        
        
        
        
        
        
        
          $
        
        
          58,988
        
        
        
      
      
        
          Accrued liabilities
        
        
        
        
        
        
        
        
          24,628
        
        
        
        
        
        
        
        
        
        
          23,370
        
        
        
      
      
        
          Other current liabilities
        
        
        
        
        
        
        
        
          1,975
        
        
        
        
        
        
        
        
        
        
          6,223
        
        
        
      
      
        
          Noncurrent liabilities
        
        
        
        
        
        
           
        
        
          12,218
        
        
           
        
        
        
        
        
        
           
        
        
          10,778
        
        
           
        
      
      
        
          Total liabilities
        
        
        
        
        
        
        
        
          98,817
        
        
        
        
        
        
        
        
        
        
          99,359
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total stockholders' equity
        
        
        
        
        
        
           
        
        
          206,273
        
        
           
        
        
        
        
        
        
           
        
        
          217,827
        
        
           
        
      
      
        
          Total liabilities and stockholders' equity
        
        
        
        
        
        
          $
        
        
          305,090
        
        
           
        
        
        
        
        
        
          $
        
        
          317,186