Citi Trends Announces Third Quarter 2014 Results

Comparable store sales increased 6.7% in third quarter

Results include $1.7 million legal settlement expense in this year’s third quarter; $1.5 million gain on sale of distribution center in last year’s third quarter

Third quarter 2014 loss per share of $(0.15) compared with $(0.11) last year

Year-to-date income per share of $0.29 compared with a loss of $(0.07) last year

Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the third quarter of fiscal 2014.

Financial Highlights – Third quarter ended November 1, 2014

Total sales in the third quarter ended November 1, 2014 increased 7.8% to $156.7 million compared with $145.4 million in the third quarter ended November 2, 2013. Comparable store sales increased 6.7% in the quarter.

Net loss was $(2.2) million, or $(0.15) per diluted share, in the third quarter of 2014 compared with a net loss of $(1.7) million, or $(0.11) per diluted share, in last year’s third quarter. Selling, general and administrative expenses in this year’s third quarter included $1.7 million in expense related to a legal settlement, which had a negative impact on loss per diluted share of $0.07 in the third quarter of 2014. Last year’s third quarter benefited from a pretax gain of $1.5 million on the sale of the Company’s former distribution center, which had a positive impact on loss per diluted share of $0.06.

Financial Highlights – First three quarters ended November 1, 2014

Total sales in the first three quarters of fiscal 2014 increased 5.3% to $489.7 million compared with $465.0 million in the same period of fiscal 2013. Comparable store sales increased 5.3% in the first three quarters of this year. Net income was $4.3 million, or $0.29 per diluted share, in the first three quarters of this year, compared with a net loss of $(1.0) million, or $(0.07) per diluted share, in last year’s first three quarters.

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 December 2, 2014, by dialing [phone] and entering the passcode, 21705728.

The live broadcast of Citi Trends' conference call will be available online at the Company's website, www.cititrends.com, as well as www.cititrends.com/http/ircititrendscom, beginning today at 9 a.m. ET. The online replay will follow shortly after the call and will be available for replay for one year.

During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred 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 STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

Thirteen Weeks Ended

Thirteen Weeks Ended

November 1, 2014

November 2, 2013

        
      
      
        
        
        
        
        
        
        
          (unaudited)
        
        
        
        
        
        
          (unaudited)
        
      
      
        
          Net sales
        
        
        
        
        
        
          $
        
        
          156,694
        
        
        
        
        
        
        
        
          $
        
        
          145,362
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cost of sales (exclusive of depreciation shown separately below)
        
        
        
        
        
        
        
        
          (98,542
        
        
          )
        
        
        
        
        
        
        
        
          (92,074
        
        
          )
        
      
      
        
          Selling, general and administrative expenses
        
        
        
        
        
        
        
        
          (56,354
        
        
          )
        
        
        
        
        
        
        
        
          (52,148
        
        
          )
        
      
      
        
          Depreciation
        
        
        
        
        
        
        
        
          (5,038
        
        
          )
        
        
        
        
        
        
        
        
          (5,454
        
        
          )
        
      
      
        
          Asset impairment
        
        
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
        
        
          (556
        
        
          )
        
      
      
        
          Gain on sale of former distribution center
        
        
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
        
        
           
        
        
          1,526
        
        
           
        
      
      
        
          Loss from operations
        
        
        
        
        
        
        
        
          (3,240
        
        
          )
        
        
        
        
        
        
        
        
          (3,344
        
        
          )
        
      
      
        
          Interest income
        
        
        
        
        
        
        
        
          43
        
        
        
        
        
        
        
        
        
        
          78
        
        
        
      
      
        
          Interest expense
        
        
        
        
        
        
           
        
        
          (48
        
        
          )
        
        
        
        
        
        
           
        
        
          (49
        
        
          )
        
      
      
        
          Loss before income tax benefit
        
        
        
        
        
        
        
        
          (3,245
        
        
          )
        
        
        
        
        
        
        
        
          (3,315
        
        
          )
        
      
      
        
          Income tax benefit
        
        
        
        
        
        
           
        
        
          1,038
        
        
           
        
        
        
        
        
        
           
        
        
          1,643
        
        
           
        
      
      
        
          Net loss
        
        
        
        
        
        
          $
        
        
          (2,207
        
        
          )
        
        
        
        
        
        
          $
        
        
          (1,672
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Basic net loss per common share
        
        
        
        
        
        
          $
        
        
          (0.15
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.11
        
        
          )
        
      
      
        
          Diluted net loss per common share
        
        
        
        
        
        
          $
        
        
          (0.15
        
        
          )
        
        
        
        
        
        
          $
        
        
          (0.11
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Weighted average shares used to compute basic net loss per share
        
        
        
        
        
        
           
        
        
          14,982
        
        
           
        
        
        
        
        
        
           
        
        
          14,815
        
        
           
        
      
      
        
          Weighted average shares used to compute diluted net loss per share
        
        
        
        
        
        
           
        
        
          14,982
        
        
           
        
        
        
        
        
        
           
        
        
          14,815
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          

Thirty-Nine Weeks Ended

Thirty-Nine Weeks Ended

November 1, 2014

November 2, 2013

        
      
      
        
        
        
        
        
        
        
          (unaudited)
        
        
        
        
        
        
          (unaudited)
        
      
      
        
          Net sales
        
        
        
        
        
        
          $
        
        
          489,697
        
        
        
        
        
        
        
        
          $
        
        
          465,011
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cost of sales (exclusive of depreciation shown separately below)
        
        
        
        
        
        
        
        
          (304,849
        
        
          )
        
        
        
        
        
        
        
        
          (294,878
        
        
          )
        
      
      
        
          Selling, general and administrative expenses
        
        
        
        
        
        
        
        
          (163,526
        
        
          )
        
        
        
        
        
        
        
        
          (155,976
        
        
          )
        
      
      
        
          Depreciation
        
        
        
        
        
        
        
        
          (15,306
        
        
          )
        
        
        
        
        
        
        
        
          (16,716
        
        
          )
        
      
      
        
          Asset impairment
        
        
        
        
        
        
        
        
          (83
        
        
          )
        
        
        
        
        
        
        
        
          (1,237
        
        
          )
        
      
      
        
          Gain on sale of former distribution center
        
        
        
        
        
        
           
        
        
          -
        
        
           
        
        
        
        
        
        
           
        
        
          1,526
        
        
           
        
      
      
        
          Income (loss) from operations
        
        
        
        
        
        
        
        
          5,933
        
        
        
        
        
        
        
        
        
        
          (2,270
        
        
          )
        
      
      
        
          Interest income
        
        
        
        
        
        
        
        
          135
        
        
        
        
        
        
        
        
        
        
          213
        
        
        
      
      
        
          Interest expense
        
        
        
        
        
        
           
        
        
          (152
        
        
          )
        
        
        
        
        
        
           
        
        
          (145
        
        
          )
        
      
      
        
          Income (loss) before income tax expense (benefit)
        
        
        
        
        
        
        
        
          5,916
        
        
        
        
        
        
        
        
        
        
          (2,202
        
        
          )
        
      
      
        
          Income tax (expense) benefit
        
        
        
        
        
        
           
        
        
          (1,623
        
        
          )
        
        
        
        
        
        
           
        
        
          1,201
        
        
           
        
      
      
        
          Net income (loss)
        
        
        
        
        
        
          $
        
        
          4,293
        
        
           
        
        
        
        
        
        
          $
        
        
          (1,001
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Basic net income (loss) per common share
        
        
        
        
        
        
          $
        
        
          0.29
        
        
           
        
        
        
        
        
        
          $
        
        
          (0.07
        
        
          )
        
      
      
        
          Diluted net income (loss) per common share
        
        
        
        
        
        
          $
        
        
          0.29
        
        
           
        
        
        
        
        
        
          $
        
        
          (0.07
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Weighted average shares used to compute basic net income (loss) per 
          share
        
        
        
        
        
        
           
        
        
          14,952
        
        
           
        
        
        
        
        
        
           
        
        
          14,789
        
        
           
        
      
      
        
          Weighted average shares used to compute diluted net income (loss) 
          per share
        
        
        
        
        
        
           
        
        
          14,985
        
        
           
        
        
        
        
        
        
           
        
        
          14,789
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      
        
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
        
      
      
        
          

CITI TRENDS, INC.

CONDENSED BALANCE SHEETS (unaudited)

(in thousands)

November 1, 2014

November 2, 2013

        
      
      
        
        
        
        
        
        
        
          (unaudited)
        
        
        
        
        
        
          (unaudited)
        
      
      
        
          Assets:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cash and cash equivalents
        
        
        
        
        
        
          $
        
        
          65,991
        
        
        
        
        
        
          $
        
        
          47,585
        
      
      
        
          Short-term investment securities
        
        
        
        
        
        
        
        
          13,988
        
        
        
        
        
        
        
        
          18,218
        
      
      
        
          Inventory
        
        
        
        
        
        
        
        
          128,516
        
        
        
        
        
        
        
        
          123,203
        
      
      
        
          Prepaid and other current assets
        
        
        
        
        
        
        
        
          18,658
        
        
        
        
        
        
        
        
          18,882
        
      
      
        
          Property and equipment, net
        
        
        
        
        
        
        
        
          49,756
        
        
        
        
        
        
        
        
          60,979
        
      
      
        
          Long-term investment securities
        
        
        
        
        
        
        
        
          24,038
        
        
        
        
        
        
        
        
          20,052
        
      
      
        
          Other noncurrent assets
        
        
        
        
        
        
           
        
        
          7,005
        
        
        
        
        
        
           
        
        
          6,950
        
      
      
        
          Total assets
        
        
        
        
        
        
          $
        
        
          307,952
        
        
        
        
        
        
          $
        
        
          295,869
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Liabilities and Stockholders' Equity:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Accounts payable
        
        
        
        
        
        
          $
        
        
          63,478
        
        
        
        
        
        
          $
        
        
          58,929
        
      
      
        
          Accrued liabilities
        
        
        
        
        
        
        
        
          30,847
        
        
        
        
        
        
        
        
          29,488
        
      
      
        
          Other current liabilities
        
        
        
        
        
        
        
        
          2,359
        
        
        
        
        
        
        
        
          2,397
        
      
      
        
          Noncurrent liabilities
        
        
        
        
        
        
           
        
        
          6,247
        
        
        
        
        
        
           
        
        
          8,416
        
      
      
        
          Total liabilities
        
        
        
        
        
        
        
        
          102,931
        
        
        
        
        
        
        
        
          99,230
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total stockholders' equity
        
        
        
        
        
        
           
        
        
          205,021
        
        
        
        
        
        
           
        
        
          196,639
        
      
      
        
          Total liabilities and stockholders' equity
        
        
        
        
        
        
          $
        
        
          307,952
        
        
        
        
        
        
          $
        
        
          295,869
        
      
    
    

Citi Trends, Inc.Bruce Smith, 912-443-2075Chief Financial OfficerorEd Anderson, 912-443-3705Chairman & Chief Executive Officer