SHOE CARNIVAL, INC. |
(Exact name of registrant as specified in its charter)
|
Indiana
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0-21360
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35-1736614
|
(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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7500 East Columbia Street, Evansville, Indiana 47715 |
(Address of principal executive offices and zip code)
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Registrant’s telephone number, including area code: (812) 867-6471
|
Not applicable |
(Former name or former address, if changed since last report)
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☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under The Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under The Exchange Act (17 CFR 240.13e-4(c)) |
SHOE CARNIVAL, INC. | |||
(Registrant) | |||
Date: November 15, 2018
|
By:
|
/s/ W. Kerry Jackson | |
W. Kerry Jackson | |||
Senior Executive Vice President | |||
Chief Operating and Financial Officer and Treasurer |
·
|
Earnings per diluted share increased 15 percent to $0.76
|
·
|
Comparable store sales increased 4.5 percent
|
·
|
Due to fiscal 2017 being a 53-week year, approximately $25.1 million of net sales reported in the third quarter of 2017 shifted into the second quarter of fiscal 2018, resulting in a net sales decrease of $18.3 million in the third quarter compared to the same period last year
|
·
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Repurchased 519,048 shares of common stock at a total cost of $20.0 million under share repurchase program
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New Stores
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Store Closings
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|||
1st quarter 2018
|
0
|
3
|
||
2nd quarter 2018
|
0
|
3
|
||
3rd quarter 2018
|
3
|
3
|
||
4th quarter 2018
|
0
|
5
|
||
Fiscal year 2018
|
3
|
14
|
City
|
Market
|
Total Stores in
the Market
|
||
Cookeville, TN
|
Nashville, TN
|
8
|
||
Dania, FL
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Miami-Ft. Lauderdale, FL
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3
|
||
Miami Gardens, FL | Miami-Ft. Lauderdale, FL | 3 |
·
|
Net sales in the range of $1.020 billion to $1.022 billion, with comparable store sales up approximately 3.5 percent;
|
·
|
Earnings per diluted share in the range of $2.36 to $2.38. Fiscal 2017 earnings per diluted share were $1.15 and adjusted earnings per diluted share were $1.49.
|
Thirteen
|
Thirteen
|
Thirty-nine
|
Thirty-nine
|
|||||||||||||
Weeks Ended
|
Weeks Ended
|
Weeks Ended
|
Weeks Ended
|
|||||||||||||
November 3,
|
October 28,
|
November 3,
|
October 28,
|
|||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net sales
|
$
|
269,181
|
$
|
287,469
|
$
|
794,992
|
$
|
775,922
|
||||||||
Cost of sales (including buying,
|
||||||||||||||||
distribution and occupancy costs)
|
187,963
|
201,802
|
552,666
|
549,872
|
||||||||||||
Gross profit
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81,218
|
85,667
|
242,326
|
226,050
|
||||||||||||
Selling, general and administrative
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||||||||||||||||
expenses
|
65,202
|
67,787
|
194,063
|
188,519
|
||||||||||||
Operating income
|
16,016
|
17,880
|
48,263
|
37,531
|
||||||||||||
Interest income
|
(273
|
)
|
(1
|
)
|
(392
|
)
|
(3
|
)
|
||||||||
Interest expense
|
37
|
57
|
113
|
248
|
||||||||||||
Income before income taxes
|
16,252
|
17,824
|
48,542
|
37,286
|
||||||||||||
Income tax expense
|
4,206
|
7,127
|
11,766
|
14,462
|
||||||||||||
Net income
|
$
|
12,046
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$
|
10,697
|
$
|
36,776
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$
|
22,824
|
||||||||
Net income per share:
|
||||||||||||||||
Basic
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$
|
0.80
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$
|
0.66
|
$
|
2.40
|
$
|
1.38
|
||||||||
Diluted
|
$
|
0.76
|
$
|
0.66
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$
|
2.36
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$
|
1.38
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||||||||
Weighted average shares:
|
||||||||||||||||
Basic
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15,071
|
15,957
|
15,282
|
16,287
|
||||||||||||
Diluted
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15,812
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15,966
|
15,544
|
16,293
|
||||||||||||
Cash dividends declared per share
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$
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0.080
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$
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0.075
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$
|
0.235
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$
|
0.220
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November 3,
2018
|
February 3,
2018
|
October 28,
2017
|
||||||||||
ASSETS
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||||||||||||
Current Assets:
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||||||||||||
Cash and cash equivalents
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$
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36,699
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$
|
48,254
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$
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21,050
|
||||||
Accounts receivable
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2,322
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6,270
|
7,365
|
|||||||||
Merchandise inventories
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300,510
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260,500
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302,935
|
|||||||||
Other
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11,762
|
5,562
|
6,883
|
|||||||||
Total Current Assets
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354,293
|
320,586
|
338,233
|
|||||||||
Property and equipment - net
|
74,471
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86,276
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93,041
|
|||||||||
Deferred income taxes
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8,866
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8,182
|
10,769
|
|||||||||
Other noncurrent assets
|
389
|
536
|
663
|
|||||||||
Total Assets
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$
|
438,019
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$
|
415,580
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$
|
442,706
|
||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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||||||||||||
Current Liabilities:
|
||||||||||||
Accounts payable
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$
|
56,270
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$
|
41,739
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$
|
59,355
|
||||||
Accrued and other liabilities
|
28,094
|
15,045
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21,933
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|||||||||
Total Current Liabilities
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84,364
|
56,784
|
81,288
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|||||||||
Deferred lease incentives
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23,478
|
29,024
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29,297
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|||||||||
Accrued rent
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8,808
|
10,132
|
10,689
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|||||||||
Deferred compensation
|
11,811
|
11,372
|
10,974
|
|||||||||
Other
|
806
|
966
|
884
|
|||||||||
Total Liabilities
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129,267
|
108,278
|
133,132
|
|||||||||
Total Shareholders' Equity
|
308,752
|
307,302
|
309,574
|
|||||||||
Total Liabilities and Shareholders' Equity
|
$
|
438,019
|
$
|
415,580
|
$
|
442,706
|
Thirty-nine
Weeks Ended
November 3,
2018
|
Thirty-nine
Weeks Ended
October 28,
2017
|
|||||||
Cash Flows From Operating Activities
|
||||||||
Net income
|
$
|
36,776
|
$
|
22,824
|
||||
Adjustments to reconcile net income to net
|
||||||||
cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
16,551
|
17,944
|
||||||
Stock-based compensation
|
7,604
|
2,073
|
||||||
Loss on retirement and impairment of assets
|
(1,412
|
)
|
1,831
|
|||||
Deferred income taxes
|
(684
|
)
|
(1,169
|
)
|
||||
Lease incentives
|
298
|
3,515
|
||||||
Other
|
(6,882
|
)
|
(5,212
|
)
|
||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
4,218
|
(2,047
|
)
|
|||||
Merchandise inventories
|
(40,010
|
)
|
(23,289
|
)
|
||||
Accounts payable and accrued liabilities
|
23,330
|
(8,446
|
)
|
|||||
Other
|
(2,009
|
)
|
940
|
|||||
Net cash provided by operating activities
|
37,780
|
8,964
|
||||||
Cash Flows From Investing Activities
|
||||||||
Purchases of property and equipment
|
(5,021
|
)
|
(16,708
|
)
|
||||
Other
|
1,489
|
0
|
||||||
Net cash used in investing activities
|
(3,532
|
)
|
(16,708
|
)
|
||||
Cash Flows From Financing Activities
|
||||||||
Borrowings under line of credit
|
0
|
88,600
|
||||||
Payments on line of credit
|
0
|
(88,600
|
)
|
|||||
Proceeds from issuance of stock
|
148
|
196
|
||||||
Dividends paid
|
(3,593
|
)
|
(3,603
|
)
|
||||
Purchase of common stock for treasury
|
(39,046
|
)
|
(29,798
|
)
|
||||
Shares surrendered by employees to pay taxes on restricted stock
|
(312
|
)
|
(945
|
)
|
||||
Net cash used in financing activities
|
(42,803
|
)
|
(34,150
|
)
|
||||
Net decrease in cash and cash equivalents
|
(8,555
|
)
|
(41,894
|
)
|
||||
Cash and cash equivalents at beginning of period
|
48,254
|
62,944
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
39,699
|
$
|
21,050
|
||||
Fifty-three
Weeks Ended
February 3,
2018
|
||||
Reported net income per diluted share
|
$
|
1.15
|
||
Gain on insurance proceeds
|
(0.21
|
)
|
||
Non-cash impairment charges
|
0.21
|
|||
Additional stock-based compensation expense associated with the Tax Act
|
0.12
|
|||
Tax effect of gain on insurance proceeds, non-cash impairment charges and stock-based compensation expense
|
(0.05
|
)
|
||
Additional income tax expense on re-measurement of deferred tax assets and liabilities
|
0.27
|
|||
Adjusted diluted earnings per share
|
$
|
1.49
|