NEVADA (State or Other Jurisdiction of Incorporation) | 91-1826900 (I.R.S. Employer Identification No.) |
2425 West Loop South, Houston, Texas (Address of Principal Executive Offices) | 77027 (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 August 18, 2016. |
STAGE STORES, INC. | |
Date: August 19, 2016 | /s/ Oded Shein |
Oded Shein | |
Executive Vice President, | |
Chief Financial Officer and Treasurer |
Three Months Ended | |||||||||||||
July 30, 2016 | August 1, 2015 | ||||||||||||
Amount | % to Sales (a) | Amount | % to Sales (a) | ||||||||||
Net sales | $ | 338,385 | 100.0 | % | $ | 380,916 | 100.0 | % | |||||
Cost of sales and related buying, occupancy and distribution expenses | 252,815 | 74.7 | % | 282,461 | 74.2 | % | |||||||
Gross profit | 85,570 | 25.3 | % | 98,455 | 25.8 | % | |||||||
Selling, general and administrative expenses | 85,368 | 25.2 | % | 95,212 | 25.0 | % | |||||||
Interest expense | 1,192 | 0.4 | % | 673 | 0.2 | % | |||||||
Income (loss) before income tax | (990 | ) | (0.3 | )% | 2,570 | 0.7 | % | ||||||
Income tax expense (benefit) | (1,031 | ) | (0.3 | )% | 955 | 0.3 | % | ||||||
Net income | $ | 41 | — | % | $ | 1,615 | 0.4 | % | |||||
Basic earnings per share data: | |||||||||||||
Basic earnings per share | $ | — | $ | 0.05 | |||||||||
Basic weighted average shares outstanding | 27,111 | 31,982 | |||||||||||
Diluted earnings per share data: | |||||||||||||
Diluted earnings per share | $ | — | $ | 0.05 | |||||||||
Diluted weighted average shares outstanding | 27,175 | 32,013 | |||||||||||
(a) Percentages may not foot due to rounding. |
Six Months Ended | |||||||||||||
July 30, 2016 | August 1, 2015 | ||||||||||||
Amount | % to Sales (a) | Amount | % to Sales (a) | ||||||||||
Net sales | $ | 671,135 | 100.0 | % | $ | 750,229 | 100.0 | % | |||||
Cost of sales and related buying, occupancy and distribution expenses | 518,578 | 77.3 | % | 570,845 | 76.1 | % | |||||||
Gross profit | 152,557 | 22.7 | % | 179,384 | 23.9 | % | |||||||
Selling, general and administrative expenses | 175,512 | 26.2 | % | 189,687 | 25.3 | % | |||||||
Interest expense | 2,221 | 0.3 | % | 1,252 | 0.2 | % | |||||||
Loss before income tax | (25,176 | ) | (3.8 | )% | (11,555 | ) | (1.5 | )% | |||||
Income tax benefit | (9,757 | ) | (1.5 | )% | (4,533 | ) | (0.6 | )% | |||||
Net loss | $ | (15,419 | ) | (2.3 | )% | $ | (7,022 | ) | (0.9 | )% | |||
Basic loss per share data: | |||||||||||||
Basic loss per share | $ | (0.57 | ) | $ | (0.22 | ) | |||||||
Basic weighted average shares outstanding | 27,021 | 31,866 | |||||||||||
Diluted loss per share data: | |||||||||||||
Diluted loss per share | $ | (0.57 | ) | $ | (0.22 | ) | |||||||
Diluted weighted average shares outstanding | 27,021 | 31,866 | |||||||||||
(a) Percentages may not foot due to rounding. |
July 30, 2016 | January 30, 2016 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 20,878 | $ | 16,487 | |||
Merchandise inventories, net | 461,117 | 435,996 | |||||
Prepaid expenses and other current assets | 50,026 | 48,279 | |||||
Total current assets | 532,021 | 500,762 | |||||
Property, equipment and leasehold improvements, net | 324,144 | 311,717 | |||||
Intangible assets | 15,235 | 15,235 | |||||
Other non-current assets, net | 23,337 | 20,385 | |||||
Total assets | $ | 894,737 | $ | 848,099 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Accounts payable | $ | 117,741 | $ | 84,019 | |||
Accrued expenses and other current liabilities | 69,215 | 71,863 | |||||
Total current liabilities | 186,956 | 155,882 | |||||
Long-term debt obligations | 199,838 | 162,876 | |||||
Other long-term liabilities | 98,939 | 99,588 | |||||
Total liabilities | 485,733 | 418,346 | |||||
Commitments and contingencies | |||||||
Common stock, par value $0.01, 100,000 shares authorized, 32,325 and 32,030 shares issued, respectively | 323 | 320 | |||||
Additional paid-in capital | 408,952 | 406,034 | |||||
Treasury stock, at cost, 5,175 shares, respectively | (43,276 | ) | (43,068 | ) | |||
Accumulated other comprehensive loss | (6,075 | ) | (6,353 | ) | |||
Retained earnings | 49,080 | 72,820 | |||||
Total stockholders' equity | 409,004 | 429,753 | |||||
Total liabilities and stockholders' equity | $ | 894,737 | $ | 848,099 | |||
Six Months Ended | |||||||
July 30, 2016 | August 1, 2015 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (15,419 | ) | $ | (7,022 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation, amortization and impairment of long-lived assets | 36,508 | 41,338 | |||||
Loss on retirements of property, equipment and leasehold improvements | 124 | 503 | |||||
Deferred income taxes | (1,404 | ) | (231 | ) | |||
Tax (deficiency) benefit from stock-based compensation | (3,230 | ) | 601 | ||||
Stock-based compensation expense | 6,552 | 5,929 | |||||
Amortization of debt issuance costs | 109 | 109 | |||||
Excess tax benefits from stock-based compensation | — | (944 | ) | ||||
Deferred compensation obligation | 208 | 129 | |||||
Amortization of employee benefit related costs | 448 | 387 | |||||
Construction allowances from landlords | 6,290 | 1,616 | |||||
Other changes in operating assets and liabilities: | |||||||
Increase in merchandise inventories | (25,121 | ) | (48,764 | ) | |||
Increase in other assets | (9,415 | ) | (6,529 | ) | |||
Increase in accounts payable and other liabilities | 34,069 | 25,983 | |||||
Net cash provided by operating activities | 29,719 | 13,105 | |||||
Cash flows from investing activities: | |||||||
Additions to property, equipment and leasehold improvements | (57,677 | ) | (35,572 | ) | |||
Proceeds from disposal of assets | 1,047 | 32 | |||||
Net cash used in investing activities | (56,630 | ) | (35,540 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from revolving credit facility borrowings | 253,095 | 234,347 | |||||
Payments of revolving credit facility borrowings | (215,700 | ) | (192,484 | ) | |||
Proceeds from long-term debt obligation | 5,830 | — | |||||
Payments of long-term debt obligations | (2,785 | ) | (1,222 | ) | |||
Payments for stock related compensation | (817 | ) | (3,629 | ) | |||
Proceeds from issuance of stock awards | — | 543 | |||||
Excess tax benefits from stock-based compensation | — | 944 | |||||
Cash dividends paid | (8,321 | ) | (9,036 | ) | |||
Net cash provided by financing activities | 31,302 | 29,463 | |||||
Net increase in cash and cash equivalents | 4,391 | 7,028 | |||||
Cash and cash equivalents: | |||||||
Beginning of period | 16,487 | 17,165 | |||||
End of period | $ | 20,878 | $ | 24,193 |
Three Months Ended | Six Months Ended | ||||||||||||||
July 30, 2016 | August 1, 2015 | July 30, 2016 | August 1, 2015 | ||||||||||||
Net income (loss) (GAAP) | $ | 41 | $ | 1,615 | $ | (15,419 | ) | $ | (7,022 | ) | |||||
Consolidation of corporate headquarters, net of tax of $3, $239, $43 and $239, respectively | (3 | ) | 389 | 67 | 389 | ||||||||||
Severance charges associated with workforce reduction, net of tax of $308, respectively | 486 | — | 486 | — | |||||||||||
Strategic store closures and other initiatives, net of tax of $211, $3,068, $369 and $3,293, respectively | 302 | 4,990 | 582 | 5,358 | |||||||||||
Adjusted net income (loss) (non-GAAP) | $ | 826 | $ | 6,994 | $ | (14,284 | ) | $ | (1,275 | ) | |||||
Diluted earnings (loss) per share (GAAP) | $ | — | $ | 0.05 | $ | (0.57 | ) | $ | (0.22 | ) | |||||
Consolidation of corporate headquarters | — | 0.01 | — | 0.01 | |||||||||||
Severance charges associated with workforce reduction | 0.02 | — | 0.02 | — | |||||||||||
Strategic store closures and other initiatives | 0.01 | 0.16 | 0.02 | 0.17 | |||||||||||
Adjusted diluted earnings (loss) per share (non-GAAP) | $ | 0.03 | $ | 0.22 | $ | (0.53 | ) | $ | (0.04 | ) | |||||
Three Months Ended | |||||||||||||
July 30, 2016 | August 1, 2015 | ||||||||||||
Amount | % to Sales (a) | Amount | % to Sales (a) | ||||||||||
Gross profit (GAAP) | $ | 85,570 | 25.3 | % | $ | 98,455 | 25.8 | % | |||||
Strategic store closures | 231 | — | % | 8,058 | 2.1 | % | |||||||
Adjusted gross profit (non-GAAP) | $ | 85,801 | 25.4 | % | $ | 106,513 | 28.0 | % | |||||
Selling, general and administrative expenses (GAAP) | $ | 85,368 | 25.2 | % | $ | 95,212 | 25.0 | % | |||||
Consolidation of corporate headquarters | — | — | % | (628 | ) | (0.2 | )% | ||||||
Severance charges associated with workforce reduction | (794 | ) | (0.2 | )% | — | — | % | ||||||
Strategic store closures | (282 | ) | (0.1 | )% | — | — | % | ||||||
Adjusted selling, general and administrative expenses (non-GAAP) | $ | 84,292 | 24.9 | % | $ | 94,584 | 24.8 | % | |||||
(a) Percentages may not foot due to rounding. |
2016 Guidance Range | |||||||
Low | High | ||||||
Diluted earnings per share (GAAP) | $ | 0.15 | - | $ | 0.35 | ||
Consolidation of corporate headquarters, severance charges associated with workforce reduction and strategic store closures | 0.05 | - | 0.05 | ||||
Adjusted diluted earnings per share (non-GAAP) | $ | 0.20 | - | $ | 0.40 |