NEVADA (State or Other Jurisdiction of Incorporation) | 91-1826900 (I.R.S. Employer Identification No.) |
10201 Main Street, Houston, Texas (Address of Principal Executive Offices) | 77025 (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99 | News Release issued by Stage Stores, Inc. on May 20, 2014, announcing its financial results for the first fiscal quarter of 2014 and providing full year 2014 sales and earnings guidance. |
STAGE STORES, INC. | |
May 20, 2014 | /s/ Richard Stasyszen |
(Date) | Richard Stasyszen |
Senior Vice President, Finance and Controller | |
FY 2014 OUTLOOK* | FY 2013* | |||||
Sales ($mm) | $1,640 | — | $1,670 | $1,610 | ||
Adjusted EPS | $1.25 | — | $1.35 | 1.22** | ||
Diluted Shares (m) | 32,300 | 32,311 |
Thirteen Weeks Ended | |||||||||||||
May 3, 2014 | May 4, 2013 | ||||||||||||
Amount | % to Sales (1) | Amount | % to Sales (1) | ||||||||||
Net sales | $ | 372,040 | 100.0 | % | $ | 372,103 | 100.0 | % | |||||
Cost of sales and related buying, occupancy and distribution expenses | 294,099 | 79.1 | % | 282,474 | 75.9 | % | |||||||
Gross profit | 77,941 | 20.9 | % | 89,629 | 24.1 | % | |||||||
Selling, general and administrative expenses | 96,054 | 25.8 | % | 97,947 | 26.3 | % | |||||||
Store opening costs | 808 | 0.2 | % | 975 | 0.3 | % | |||||||
Interest expense | 724 | 0.2 | % | 586 | 0.2 | % | |||||||
Loss from continuing operations before income tax | (19,645 | ) | (5.3 | )% | (9,879 | ) | (2.7 | )% | |||||
Income tax benefit | (7,599 | ) | (2.0 | )% | (3,691 | ) | (1.0 | )% | |||||
Loss from continuing operations | (12,046 | ) | (3.2 | )% | (6,188 | ) | (1.7 | )% | |||||
Loss from discontinued operations, net of tax benefit of $4,257 and $398, respectively | (6,748 | ) | (1.8 | )% | (668 | ) | (0.2 | )% | |||||
Net loss | $ | (18,794 | ) | (5.1 | )% | $ | (6,856 | ) | (1.8 | )% | |||
Basic loss per share data: | |||||||||||||
Continuing operations | $ | (0.38 | ) | $ | (0.19 | ) | |||||||
Discontinued operations | (0.22 | ) | (0.02 | ) | |||||||||
Basic loss per share | $ | (0.60 | ) | $ | (0.21 | ) | |||||||
Basic weighted average shares outstanding | 31,492 | 32,306 | |||||||||||
Diluted loss per share data: | |||||||||||||
Continuing operations | $ | (0.38 | ) | $ | (0.19 | ) | |||||||
Discontinued operations | (0.22 | ) | (0.02 | ) | |||||||||
Diluted loss per share | $ | (0.60 | ) | $ | (0.21 | ) | |||||||
Diluted weighted average shares outstanding | 31,492 | 32,306 | |||||||||||
(1) Percentages may not foot due to rounding. |
May 3, 2014 | February 1, 2014 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 24,361 | $ | 14,762 | |||
Merchandise inventories, net | 449,547 | 434,407 | |||||
Prepaid expenses and other current assets | 47,526 | 40,082 | |||||
Total current assets | 521,434 | 489,251 | |||||
Property, equipment and leasehold improvements, net | 281,936 | 282,534 | |||||
Intangible asset | 14,910 | 14,910 | |||||
Other non-current assets, net | 25,166 | 24,142 | |||||
Total assets | $ | 843,446 | $ | 810,837 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Accounts payable | $ | 147,651 | $ | 125,707 | |||
Accrued expenses and other current liabilities | 68,658 | 69,549 | |||||
Total current liabilities | 216,309 | 195,256 | |||||
Long-term debt obligations | 90,208 | 60,871 | |||||
Other long-term liabilities | 100,170 | 100,266 | |||||
Total liabilities | 406,687 | 356,393 | |||||
Commitments and contingencies | — | — | |||||
Common stock, par value $0.01, 100,000 shares authorized, 31,721 and 31,222 shares issued, respectively | 317 | 312 | |||||
Additional paid-in capital | 389,327 | 384,295 | |||||
Less treasury stock - at cost, 0 and 0 shares, respectively | (1,005 | ) | (967 | ) | |||
Accumulated other comprehensive loss | (4,554 | ) | (4,616 | ) | |||
Retained earnings | 52,674 | 75,420 | |||||
Total stockholders' equity | 436,759 | 454,444 | |||||
Total liabilities and stockholders' equity | $ | 843,446 | $ | 810,837 | |||
Thirteen Weeks Ended | |||||||
May 3, 2014 | May 4, 2013 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (18,794 | ) | $ | (6,856 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization and impairment of long-lived assets | 15,218 | 15,047 | |||||
Loss on retirements of property and equipment | 677 | 186 | |||||
Deferred income taxes | (420 | ) | (428 | ) | |||
Tax benefit from stock-based compensation | 280 | 1,597 | |||||
Stock-based compensation expense | 1,626 | 1,979 | |||||
Amortization of debt issuance costs | 75 | 64 | |||||
Excess tax benefits from stock-based compensation | (815 | ) | (1,792 | ) | |||
Deferred compensation obligation | 38 | 158 | |||||
Amortization of employee benefit related costs | 100 | 153 | |||||
Construction allowances from landlords | 2,425 | 968 | |||||
Changes in operating assets and liabilities: | |||||||
Increase in merchandise inventories | (15,140 | ) | (38,705 | ) | |||
Increase in other assets | (8,548 | ) | (7,525 | ) | |||
Increase in accounts payable and other liabilities | 17,156 | 375 | |||||
Total adjustments | 12,672 | (27,923 | ) | ||||
Net cash used in operating activities | (6,122 | ) | (34,779 | ) | |||
Cash flows from investing activities: | |||||||
Additions to property, equipment and leasehold improvements | (14,714 | ) | (16,809 | ) | |||
Proceeds from disposal of assets | 1,397 | — | |||||
Net cash used in investing activities | (13,317 | ) | (16,809 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from revolving credit facility borrowings | 116,340 | 103,125 | |||||
Payments of revolving credit facility borrowings | (86,020 | ) | (48,475 | ) | |||
Payments of long-term debt obligations | (1,200 | ) | (180 | ) | |||
Payments for stock related compensation | (1,955 | ) | (2,088 | ) | |||
Proceeds from exercise of stock awards | 5,010 | 9,328 | |||||
Excess tax benefits from stock-based compensation | 815 | 1,792 | |||||
Cash dividends paid | (3,952 | ) | (3,253 | ) | |||
Net cash provided by financing activities | 29,038 | 60,249 | |||||
Net increase in cash and cash equivalents | 9,599 | 8,661 | |||||
Cash and cash equivalents: | |||||||
Beginning of period | 14,762 | 17,937 | |||||
End of period | $ | 24,361 | $ | 26,598 |
Thirteen Weeks Ended | |||||||
May 3, 2014 | May 4, 2013 | ||||||
Net loss from continuing operations: | |||||||
On a U.S. GAAP basis | $ | (12,046 | ) | $ | (6,188 | ) | |
South Hill consolidation related charges, net of tax of $3,616 | — | 6,062 | |||||
On a non-U.S. GAAP basis | $ | (12,046 | ) | $ | (126 | ) | |
Diluted loss per share: | |||||||
On a U.S. GAAP basis | $ | (0.38 | ) | $ | (0.19 | ) | |
South Hill consolidation related charges | — | 0.19 | |||||
On a non-U.S. GAAP basis | $ | (0.38 | ) | $ | — | ||