-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GCMTwlXHyJyzkryABmWRw6CKLFNPMEQf13Qj1lVG/HbrQsg4zMtCGrydynAhjC/D vZ1q79r1uIDTT14w7NQXSA== 0000890566-98-001498.txt : 19980824 0000890566-98-001498.hdr.sgml : 19980824 ACCESSION NUMBER: 0000890566-98-001498 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980820 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980820 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: STAGE STORES INC CENTRAL INDEX KEY: 0000006885 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-DEPARTMENT STORES [5311] IRS NUMBER: 760407711 STATE OF INCORPORATION: DE FISCAL YEAR END: 0201 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-14035 FILM NUMBER: 98695279 BUSINESS ADDRESS: STREET 1: 10201 MAIN ST CITY: HOUSTON STATE: TX ZIP: 77025 BUSINESS PHONE: 7138384244 MAIL ADDRESS: STREET 1: 10201 MAIN STREET CITY: HOUSTON STATE: TX ZIP: 77025 FORMER COMPANY: FORMER CONFORMED NAME: APPAREL RETAILERS INC DATE OF NAME CHANGE: 19930908 8-K 1 ============================================================================== FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 AUGUST 20, 1998 (Date of Report, date of earliest event reported) STAGE STORES, INC. (Exact name of registrant as specified in its charter) Commission file number 001-14035 DELAWARE (State or other jurisdiction of 76-0407711 incorporation or organization) (I.R.S. Employer Identifications No.) 10201 MAIN STREET, HOUSTON, TEXAS (Address of principal executive 77025 offices) (Zip Code) (713) 667-5601 (Registrant's telephone number, including area code) NOT APPLICABLE (Former name or address, if changed since last report) ============================================================================== ITEM 5. OTHER EVENTS. A press release regarding the Company's second quarter and six months 1998 results and certain other matters was issued by the Company on August 20, 1998 and is attached hereto as Exhibit 99.1. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (a) Financial statements of business acquired. Not applicable. (b) Pro forma financial information. Not applicable. (c) Exhibits. 99.1 Press release dated August 20, 1998 issued by the Company. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. STAGE STORES, INC. AUGUST 20, 1998 /s/ JAMES A. MARCUM (Date) James A. Marcum Vice Chairman and Chief Financial Officer 3 EX-99.1 2 EXHIBIT 99.1 NEWS RELEASE CONTACT: Bob Aronson Director of Investor Relations (800) 579-2302 FOR IMMEDIATE RELEASE STAGE STORES, INC. ANNOUNCES SECOND QUARTER AND SIX MONTHS 1998 RESULTS ------------------------------ HOUSTON, TX, August 20, 1998 -- Stage Stores, Inc. (NYSE: SGE) today announced results for the second quarter and six months ended August 1, 1998. Net sales for the second quarter of 1998 increased 14.2% to $271.8 million from $238.1 million for the same period last year. Comparable store sales decreased 5.0% during the quarter. Net income for the second quarter was $765,000, or $0.03 per share on a diluted basis, as compared to $6.2 million, or $0.25 per share on a diluted basis before extraordinary items, for the comparable period last year. Net sales for the six months ended August 1, 1998 increased 26.8% to $544.6 million from $429.6 million for the comparable period last year. Comparable store sales decreased 1% for the six month period. Net income was $9.8 million, or $0.34 per share on a diluted basis, this year versus $13.3 million, or $0.54 per share on a diluted basis before extraordinary items, for the comparable period last year. Carl E. Tooker, Chairman, President and Chief Executive Officer, stated, "The unrelenting and record breaking hot and dry weather was really the defining event of the quarter. As we have previously reported, customer traffic was negatively impacted and shopping and spending patterns were affected in a majority of our markets because of the extreme weather and ensuing drought conditions. The results that we are reporting today for the second quarter reflect just how difficult the quarter was." -more- 4 Stage Stores, Inc. Announces SECOND QUARTER 1998 RESULTS Page - 2 Mr. Tooker, continued, "We did have our share of accomplishments during the quarter. We successfully concluded the conversion of the final 36 Anthony stores, we completed the 15 store Tri-North lease purchase, we received final approval of our credit card bank charter application from the Office of the Comptroller of the Currency and opened 18 organic stores while expanding into three new states." Mr. Tooker, concluded, "We are committed to our concept and strategies and believe that our future prospects are strong. Although sales trends to date in the third quarter have improved somewhat from those reported in the second quarter, we continue to remain cautious regarding the impact that the adverse conditions which we experienced for much of the second quarter will have on the fall season and next year." Stage Stores, Inc. brings nationally recognized brand name family apparel, accessories, cosmetics and footwear for the entire family to small towns and communities throughout the central United States. The company operated 630 stores in 28 states at the end of the second quarter, primarily under the Stage, Bealls and Palais Royal trade names. Any statements in this press release that may be considered forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are discussed in periodic reports filed by the Company with the Securities and Exchange Commission that the Company urges investors to consider. (Tables to follow) 4 STAGE STORES, INC. CONSOLIDATED CONDENSED STATEMENT OF INCOME (in thousands, except per share amounts) (unaudited)
Three Months Ended Six Months Ended ---------------------- --------------------- 8/1/98 8/2/97 8/1/98 8/2/97 -------- ------- -------- -------- Net sales .................................. $ 271,805 $ 238,137 $ 544,593 $ 429,649 Cost of sales and related buying, occupancy and distribution expenses .................... 189,566 164,235 375,129 293,822 --------- --------- --------- --------- Gross profit ............................... 82,239 73,902 169,464 135,827 Selling, general and administrative expenses 67,853 53,405 129,483 94,663 Store opening and closure costs .................................... 1,708 761 2,025 904 --------- --------- --------- --------- Operating income ........................... 12,678 19,736 37,956 40,260 Interest, net .............................. 11,423 9,449 21,890 18,391 --------- --------- --------- --------- Income before income tax and extraordinary item ....................... 1,255 10,287 16,066 21,869 Income tax expense ......................... 490 4,041 6,266 8,529 --------- --------- --------- --------- Income before extraordinary item ..................................... 765 6,246 9,800 13,340 Extraordinary item - early retirement of debt ....................... -- (17,380) -- (17,380) --------- --------- --------- --------- Net income (loss) .......................... $ 765 $ (11,134) $ 9,800 $ (4,040) ========= ========= ========= ========= BASIC EARNINGS (LOSS) PER COMMON SHARE DATA: Basic earnings per common share before extraordinary item .......... $ 0.03 $ 0.25 $ 0.35 $ 0.55 Extraordinary item - early retirement of debt ....................... -- (0.70) -- (0.72) --------- --------- --------- --------- Basic earnings (loss) per common share ............................... $ 0.03 $ (0.45) $ 0.35 $ (0.17) ========= ========= ========= ========= Basic weighted average common shares outstanding ....................... 27,874 24,841 27,833 24,066 ========= ========= ========= ========= DILUTED EARNINGS (LOSS) PER COMMON SHARE DATA: Diluted earnings per common share before extraordinary item .......... $ 0.03 $ 0.25 $ 0.34 $ 0.54 Extraordinary item - early retirement of debt ....................... -- (0.69) -- (0.70) --------- --------- --------- --------- Diluted earnings (loss) per common share ............................. $ 0.03 $ (0.44) $ 0.34 $ (0.16) ========= ========= ========= ========= Diluted weighted average common shares outstanding ................ $ 28,582 $ 25,478 $ 28,569 $ 24,688 ========= ========= ========= ========= Comparable store sales data ................ (5.0%) 5.7% (1.0%) 5.3%
STAGE STORES, INC., CONSOLIDATED CONDENSED BALANCE SHEET (in thousands) (unaudited) 8/1/98 1/31/98 8/2/97 -------- -------- -------- ASSETS Cash and cash equivalents ..... $ 18,890 $ 23,315 $ 18,929 Undivided interest in accounts receivable trust ............ 57,285 61,211 51,822 Merchandise inventories, net .. 384,157 303,115 258,488 Other current assets .......... 94,752 78,205 58,393 -------- -------- -------- Total current assets .... 555,084 465,846 387,632 Fixed assets, net ............. 216,621 171,654 138,383 Goodwill, net ................. 94,019 95,486 87,033 Other assets .................. 23,873 26,410 49,629 -------- -------- -------- $889,597 $759,396 $662,677 ======== ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable .............. $108,674 $ 91,799 $ 66,638 Other current liabilities ..... 104,259 55,983 59,379 -------- -------- -------- Total current liabilities 212,933 147,782 126,017 Long-term debt including credit facilities .................. 450,015 395,248 356,877 Other long-term liabilities ... 10,501 11,288 19,048 -------- -------- -------- Total liabilities ....... 673,449 554,318 501,942 Stockholders' equity .......... 216,148 205,078 160,735 -------- -------- -------- $889,597 $759,396 $662,677 ======== ======== ======== STAGE STORES, INC. CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (in thousands) (unaudited) Six Months Ended ------------------------- 8/1/98 8/2/97 ------------ ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income ......................................... $ 9,800 $ (4,040) Adjustments to net income: Depreciation and amortization .................... 14,411 8,003 Other ............................................ 513 17,744 Amortization of debt issue costs and accretion of discount .................................... 1,732 1,595 Changes in working capital ......................... (78,067) 7,327 --------- --------- Net cash provided by (used in) operating activities ................................... (51,611) 30,629 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Acquisitions, net of cash acquired ................. -- (4,996) Additions to fixed assets .......................... (56,837) (20,797) --------- --------- Net cash used in investing activities .......... (56,837) (25,793) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from working capital facility ............. 103,500 5,000 Proceeds from issuance of common stock ............. 715 224 Proceeds from long-term debt ....................... -- 299,720 Payments on long-term debt ......................... (192) (296,805) Additions to debt issue costs ...................... -- (12,332) --------- --------- Net cash provided by (used in) financing activities ................................... 104,023 (4,193) --------- --------- Net decrease in cash and cash equivalents .......... (4,425) 643 Cash and cash equivalents: Beginning of period .............................. 23,315 18,286 ========= ========= End of period .................................... $ 18,890 $ 18,929 ========= ========= -----END PRIVACY-ENHANCED MESSAGE-----