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 | Stage Stores, Inc. news release dated May 19, 2015. |
STAGE STORES, INC. | |
Date: May 20, 2015 | /s/ Richard E. Stasyszen |
Richard E. Stasyszen | |
Senior Vice President, | |
Finance and Controller |
• | Loss per share improved 29% to $0.27 this year from $0.38 last year. |
• | 180 bps improvement in merchandise margin. |
• | Comparable sales decreased 1.1%, due in part to a Mother’s Day marketing shift. |
• | Direct-to-consumer sales increased 31%. |
Three Months Ended | |||||||||||||
May 2, 2015 | May 3, 2014 | ||||||||||||
Amount | % to Sales (a) | Amount | % to Sales (a) | ||||||||||
Net sales | $ | 369,313 | 100.0 | % | $ | 372,040 | 100.0 | % | |||||
Cost of sales and related buying, occupancy and distribution expenses | 288,384 | 78.1 | % | 294,099 | 79.1 | % | |||||||
Gross profit | 80,929 | 21.9 | % | 77,941 | 20.9 | % | |||||||
Selling, general and administrative expenses | 94,171 | 25.5 | % | 96,054 | 25.8 | % | |||||||
Store opening costs | 304 | 0.1 | % | 808 | 0.2 | % | |||||||
Interest expense | 579 | 0.2 | % | 724 | 0.2 | % | |||||||
Loss from continuing operations before income tax | (14,125 | ) | (3.8 | )% | (19,645 | ) | (5.3 | )% | |||||
Income tax benefit | (5,488 | ) | (1.5 | )% | (7,599 | ) | (2.0 | )% | |||||
Loss from continuing operations | (8,637 | ) | (2.3 | )% | (12,046 | ) | (3.2 | )% | |||||
Loss from discontinued operations, net of tax benefit of $4,257 | — | — | % | (6,748 | ) | (1.8 | )% | ||||||
Net loss | $ | (8,637 | ) | (2.3 | )% | $ | (18,794 | ) | (5.1 | )% | |||
Basic loss per share data: | |||||||||||||
Continuing operations | $ | (0.27 | ) | $ | (0.38 | ) | |||||||
Discontinued operations | — | (0.22 | ) | ||||||||||
Basic loss per share | $ | (0.27 | ) | $ | (0.60 | ) | |||||||
Basic weighted average shares outstanding | 31,750 | 31,492 | |||||||||||
Diluted loss per share data: | |||||||||||||
Continuing operations | $ | (0.27 | ) | $ | (0.38 | ) | |||||||
Discontinued operations | — | (0.22 | ) | ||||||||||
Diluted loss per share | $ | (0.27 | ) | $ | (0.60 | ) | |||||||
Diluted weighted average shares outstanding | 31,750 | 31,492 | |||||||||||
(a) Percentages may not foot due to rounding. |
May 2, 2015 | January 31, 2015 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 24,606 | $ | 17,165 | |||
Merchandise inventories, net | 486,705 | 441,452 | |||||
Prepaid expenses and other current assets | 40,724 | 45,444 | |||||
Total current assets | 552,035 | 504,061 | |||||
Property, equipment and leasehold improvements, net | 292,174 | 285,450 | |||||
Intangible asset | 14,910 | 14,910 | |||||
Other non-current assets, net | 22,167 | 20,256 | |||||
Total assets | $ | 881,286 | $ | 824,677 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Accounts payable | $ | 154,903 | $ | 121,778 | |||
Accrued expenses and other current liabilities | 70,840 | 83,004 | |||||
Total current liabilities | 225,743 | 204,782 | |||||
Long-term debt obligations | 93,392 | 45,673 | |||||
Other long-term liabilities | 98,666 | 98,292 | |||||
Total liabilities | 417,801 | 348,747 | |||||
Commitments and contingencies | |||||||
Common stock, par value $0.01, 100,000 shares authorized, 31,946 and 31,632 shares issued, respectively | 319 | 316 | |||||
Additional paid-in capital | 396,060 | 395,395 | |||||
Less treasury stock - at cost, 0 and 0 shares, respectively | (697 | ) | (600 | ) | |||
Accumulated other comprehensive loss | (6,763 | ) | (6,874 | ) | |||
Retained earnings | 74,566 | 87,693 | |||||
Total stockholders' equity | 463,485 | 475,930 | |||||
Total liabilities and stockholders' equity | $ | 881,286 | $ | 824,677 | |||
Three Months Ended | |||||||
May 2, 2015 | May 3, 2014 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (8,637 | ) | $ | (18,794 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation, amortization and impairment of long-lived assets | 16,916 | 15,218 | |||||
Loss on retirements of property, equipment and leasehold improvements | 148 | 677 | |||||
Deferred income taxes | (149 | ) | (420 | ) | |||
Tax benefit from stock-based compensation | 692 | 280 | |||||
Stock-based compensation expense | 2,709 | 1,626 | |||||
Amortization of debt issuance costs | 55 | 75 | |||||
Excess tax benefits from stock-based compensation | (910 | ) | (815 | ) | |||
Deferred compensation obligation | 97 | 38 | |||||
Amortization of employee benefit related costs | 179 | 100 | |||||
Construction allowances from landlords | 1,072 | 2,425 | |||||
Changes in operating assets and liabilities: | |||||||
Increase in merchandise inventories | (45,253 | ) | (15,140 | ) | |||
Decrease (increase) in other assets | 2,738 | (8,548 | ) | ||||
Increase in accounts payable and other liabilities | 13,911 | 17,156 | |||||
Net cash used in operating activities | (16,432 | ) | (6,122 | ) | |||
Cash flows from investing activities: | |||||||
Additions to property, equipment and leasehold improvements | (13,295 | ) | (14,714 | ) | |||
Proceeds from disposal of assets | 14 | 1,397 | |||||
Net cash used in investing activities | (13,281 | ) | (13,317 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from revolving credit facility borrowings | 116,311 | 116,340 | |||||
Payments of revolving credit facility borrowings | (71,665 | ) | (86,020 | ) | |||
Payments of long-term debt obligations | (985 | ) | (1,200 | ) | |||
Payments for stock related compensation | (3,470 | ) | (1,955 | ) | |||
Proceeds from exercise of stock awards | 543 | 5,010 | |||||
Excess tax benefits from stock-based compensation | 910 | 815 | |||||
Cash dividends paid | (4,490 | ) | (3,952 | ) | |||
Net cash provided by financing activities | 37,154 | 29,038 | |||||
Net increase in cash and cash equivalents | 7,441 | 9,599 | |||||
Cash and cash equivalents: | |||||||
Beginning of period | 17,165 | 14,762 | |||||
End of period | $ | 24,606 | $ | 24,361 |