Net Sales growth of 22.4% for
Q4 2012
Adjusted EPS $0.65, a 25%
increase from Q4 2011
Board of Directors Authorizes
an Additional $25 Million for Share Repurchase Program
rue21, inc. (Nasdaq:RUE) today announced its financial results for
the fourth quarter and full fiscal year ended February 2, 2013.
Fourth Quarter Fiscal 2012 Summary:
For the fourth quarter of fiscal 2012, net sales increased 22.4%
to $269.1 million from $219.9 million a year ago, including a
comparable store sales increase for the quarter of 0.7% following a
2.2% decrease in the fourth quarter of fiscal 2011. The Company
opened 17 new stores and closed 2 stores in the fourth quarter of
fiscal 2012. Gross margin increased 110 bps to 37.6% for the
quarter, driven by improved merchandise margin of 70 basis points
and leverage of expenses. Net income and diluted earnings per share
(EPS) for the fourth quarter were impacted by non-recurring
professional fees of $1.2 million. On a GAAP basis, net income
increased 16.4% and EPS were $0.62 versus $0.52 in the fourth
quarter of 2011. Adjusting out non-recurring professional fees in
this year's fourth quarter, net income increased by 22.4% and
adjusted EPS were $0.65 versus $0.52 in the fourth quarter of
fiscal 2011. A reconciliation of GAAP to non-GAAP financial
measures is included in the schedules accompanying the consolidated
financial statements included with this release.
Bob Fisch, rue21's President and CEO, stated: "Fiscal 2012 was
another year of consistent top and bottom line growth for rue21,
including record gross margin and double-digit growth in net
income. We continue to focus on the qualities that make rue21
appealing to our customers and our financial returns attractive for
our shareholders: offering current fashion at every day great
value, executing on our strategic square footage growth, and
methodically delivering productivity and profitability gains every
quarter."
Fiscal Year 2012 Summary:
For fiscal 2012, net sales increased 18.6% to $901.9 million,
and comparable-store sales increased 0.7%. Gross margin increased
60 bps to 38.3% from 37.7%, driven primarily by merchandise margin
improvement. The Company opened 125 new stores, closed 3
stores, and ended the year with 877 stores. On a GAAP basis,
net income increased 12.7% and EPS were $1.76 versus $1.55 in
fiscal year 2011. Net income and EPS for fiscal 2012 were
impacted by non-recurring professional fees and non-recurring
litigation expense associated with the settlement and related costs
of wage and hour claims in California. Adjusted net income
increased 19.4% for the year, to $46.5 million from $39.0
million. Adjusted EPS were $1.87 in fiscal 2012 as compared to
$1.55 in fiscal 2011.
For the year, cash and short term investments decreased 11.7% to
$63.5 million. During fiscal 2012, the Company repurchased
925,668 shares of its stock for $25 million. The Company did not
borrow during the year and had no long term debt as of February 2,
2013. Total Company inventory per square foot was up 2.3% from
the prior year end.
Impact of 53rd Week:
Fiscal 2012 included an extra week in the fourth quarter of the
year (the 53rd week). The 53rd week is not included in the
calculation of comparable store sales, but is included in net sales
and net income for fiscal 2012. The 53rd week was not material
to fourth quarter or fiscal 2012 net income.
Stock Repurchase Program:
During the fourth quarter of fiscal 2012, the Company
repurchased 97,568 shares for $2.8 million. For the full
fiscal year, the Company repurchased 925,668 shares for $25
million. At the end of the fourth quarter, $25 million of the $50
million stock repurchase program remained available for future
repurchases. The board of directors also authorized an additional
$25 million for the stock repurchase program. Under the stock
repurchase program, the Company may repurchase shares in the open
market at current market prices at the time of purchase or in
privately negotiated transactions. The timing and actual number of
shares repurchased under the program will depend on a variety of
factors including price, corporate and regulatory requirements, and
other market and business conditions. The Company may suspend or
discontinue the program at any time, and may thereafter reinstitute
purchases, all without prior announcement.
Outlook:
For fiscal 2013 (52 week year), the Company currently expects
diluted earnings per share to be in the range of $2.10 to $2.15 not
including the impact of the Company's investments in the
construction of its e-commerce platform. We anticipate
e-commerce investments to have approximately a $0.10 impact on
earnings per diluted share in 2013. Revenue impact from
e-commerce in fiscal 2013, if any, will be immaterial. The
Company expects comparable store sales growth in 2013 to be in the
low single digits. The Company guidance incorporates 24.2 million
average diluted shares expected for fiscal 2013. Diluted
earnings per share for the first quarter are expected to be in the
range of $0.47 to $0.50, not including the impact of the Company's
investment in its e-commerce platform. For the first quarter
the e-commerce impact is anticipated to be $0.02. The Company
currently expects comparable store sales growth in the first
quarter of fiscal 2013 to be slightly negative to slightly
positive.
Conference Call Information:
A conference call to discuss fourth quarter and fiscal 2012
financial results is scheduled for today, March 21, 2013 at 4:30 PM
Eastern Time. To participate, dial toll-free (888) 298-3466 or
1-719-325-2324 (international). The conference call will also be
webcast live at www.rue21.com under the Investor Relations section.
A replay of this call will be available on the Investor Relations
section of the Company's website, www.rue21.com, within two hours
of the conclusion of the call and will remain on the website for
ninety days.
About rue21, inc.
rue21 is a leading specialty apparel retailer offering exclusive
branded merchandise and the newest trends at a great
value. rue21 currently operates 900 stores in 47
states. Learn more at www.rue21.com
Forward Looking Statements:
Certain statements herein, including statements relating to
future store openings and growth strategies, are "forward-looking
statements" made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements reflect the Company's current
expectations or beliefs concerning future events and actual results
of operations may differ materially from historical results or
current expectations. Any such forward-looking statements are
subject to various risks and uncertainties, including the strength
of the economy, consumer spending, our ability to effectively
identify and respond to changing fashion trends, our ability to
compete with other retailers, our strategy and expansion plans,
implementation of systems upgrades, reliance on key personnel,
trade restrictions, events that may affect our vendors or their
ability to finance their operations, availability of suitable new
store locations and other factors which are set forth in the
Company's Annual Report on Form 10-K filed March 27, 2012, and
in all filings with the SEC made by the Company subsequent to the
filing of the Form 10-K. The Company does not undertake to publicly
update or revise its forward-looking statements, whether as a
result of new information, future events or otherwise.
Non-GAAP Financial Measures:
Management has presented its operating results in accordance
with GAAP and on an "adjusted" (or non-GAAP) basis for the fourteen
week and fifty-three week periods ended February 2, 2013. The
Company believes that the presentation of non-GAAP financial
measures provides useful supplementary information to and
facilitates additional analysis by investors. The Company uses
these non-GAAP financial measures in connection with assessing its
financial performance. These non-GAAP financial measures are in
addition to, not a substitute for, or superior to, measures of
financial performance prepared in conformity with GAAP.
rue21,
inc. |
Consolidated Statements
of Income |
|
|
|
|
|
|
Three Months
Ended |
Twelve Months
Ended |
|
February 2, |
January 28, |
February 2, |
January 28, |
|
2013 |
2012 |
2013 |
2012 |
|
(Unaudited) |
|
(Unaudited) |
|
|
(in thousands,
except per share data) |
|
|
|
|
|
Net sales |
$ 269,054 |
$ 219,896 |
$ 901,886 |
$ 760,302 |
Cost of goods sold (includes certain buying,
occupancy and distribution center expenses) |
167,854 |
139,531 |
556,368 |
473,662 |
Gross profit |
101,200 |
80,365 |
345,518 |
286,640 |
|
|
|
|
|
Selling, general, and administrative
expense |
68,763 |
52,130 |
244,096 |
197,176 |
Depreciation and amortization expense |
8,894 |
7,262 |
32,961 |
26,618 |
Income from operations |
23,543 |
20,973 |
68,461 |
62,846 |
|
|
|
|
|
Interest expense (income), net |
37 |
16 |
(27) |
(9) |
Income before income taxes |
23,506 |
20,957 |
68,488 |
62,855 |
|
|
|
|
|
Provision for income taxes |
8,462 |
8,036 |
24,587 |
23,905 |
Net income |
$ 15,044 |
$ 12,921 |
$ 43,901 |
$ 38,950 |
|
|
|
|
|
Basic income per common share |
$ 0.63 |
$ 0.53 |
$ 1.81 |
$ 1.60 |
Diluted income per common share |
$ 0.62 |
$ 0.52 |
$ 1.76 |
$ 1.55 |
|
|
|
|
|
Weighted average basic common shares
outstanding |
23,783 |
24,467 |
24,287 |
24,417 |
Weighted average diluted common shares
outstanding |
24,393 |
25,054 |
24,903 |
25,051 |
|
|
|
|
|
NOTE: The three and twelve months
ended February 2, 2013 consisted of 14 weeks and 53 weeks,
respectively, compared with 13 weeks and 52 weeks in the comparable
prior-year periods. |
|
|
|
rue21,
inc. |
Consolidated Balance
Sheets |
|
|
|
|
February 2, |
January 28, |
|
2013 |
2012 |
|
(Unaudited) |
|
|
(in
thousands, except per share data) |
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 43,519 |
$ 41,960 |
Short term investments |
20,000 |
30,000 |
Accounts receivable |
10,555 |
6,675 |
Merchandise inventory, net |
157,269 |
131,136 |
Prepaid expenses and other current
assets |
13,905 |
11,767 |
Deferred tax assets |
5,910 |
5,121 |
Total current assets |
251,158 |
226,659 |
|
|
|
Property and equipment, net |
144,852 |
117,798 |
|
|
|
Other assets |
3,499 |
3,565 |
Total assets |
$ 399,509 |
$ 348,022 |
|
|
|
Liabilities and stockholders'
equity |
|
|
Current liabilities: |
|
|
Accounts payable |
$ 108,760 |
$ 103,914 |
Accrued expenses and other current
liabilities |
24,202 |
16,570 |
Accrued payroll and related taxes |
8,932 |
12,045 |
Deferred rent and tenant allowances, current
portion |
10,228 |
8,652 |
Accrued income and franchise taxes |
126 |
1,068 |
Total current liabilities |
152,248 |
142,249 |
|
|
|
Long-term liabilities: |
|
|
Deferred rent, tenant allowances and other
long-term liabilities |
59,325 |
46,965 |
Deferred tax liabilities |
9,625 |
11,585 |
Total long-term liabilities |
68,950 |
58,550 |
|
|
|
Commitments and Contingencies |
– |
– |
|
|
|
Stockholders' equity: |
|
|
Preferred stock--- par value $0.001 per
share, 10,000,000 shares authorized; none issued or
outstanding |
– |
– |
Common stock--- par value $0.001 per share;
200,000 shares authorized; 23,755 and 24,476 shares issued and
outstanding, respectively |
25 |
24 |
Additional paid in capital |
50,281 |
37,696 |
Treasury stock, 939, and 0 respectively |
(25,399) |
– |
Retained earnings |
153,404 |
109,503 |
Total stockholder's equity |
178,311 |
147,223 |
|
|
|
Total liabilities and stockholders'
equity |
$ 399,509 |
$ 348,022 |
|
|
|
|
rue21, inc. |
|
|
|
Reconciliation of GAAP Earnings to
Adjusted Earnings |
|
|
|
(In thousands, except per share
data) |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
Three Months
Ended February 2, 2013 |
|
|
|
|
|
|
|
|
|
GAAP |
Professional Fees
(1) |
As Adjusted |
|
|
|
|
Income from Operations |
$ 23,543 |
$ 1,200 |
$ 24,743 |
Interest expense (income), net |
37 |
|
37 |
|
|
|
|
Income before income taxes |
23,506 |
|
24,706 |
Provision for income taxes |
8,462 |
432 |
8,894 |
|
|
|
|
Net income |
$ 15,044 |
|
$ 15,812 |
|
|
|
|
Basic income per common share |
$ 0.63 |
|
$ 0.66 |
Diluted income per common share |
$ 0.62 |
|
$ 0.65 |
|
|
|
|
Weighted average basic common shares
outstanding |
23,783 |
|
23,783 |
Weighted average diluted common shares
outstanding |
24,393 |
|
24,393 |
|
|
|
|
|
Twelve Months
Ended February 2, 2013 |
|
|
|
|
|
|
Expense |
|
|
GAAP |
Adjustments (1)
(2) |
As Adjusted |
|
|
|
|
Income from Operations |
$ 68,461 |
$ 4,100 |
$ 72,561 |
Interest expense (income), net |
(27) |
|
(27) |
|
|
|
|
Income before income taxes |
68,488 |
|
72,588 |
Provision for income taxes |
24,587 |
1,491 |
26,078 |
|
|
|
|
Net income |
$ 43,901 |
|
$ 46,510 |
|
|
|
|
Basic income per common share |
$ 1.81 |
|
$ 1.92 |
Diluted income per common share |
$ 1.76 |
|
$ 1.87 |
|
|
|
|
Weighted average basic common shares
outstanding |
24,287 |
|
24,287 |
Weighted average diluted common shares
outstanding |
24,903 |
|
24,903 |
|
|
|
|
|
|
|
|
|
|
|
|
1. Estimated
adjusted basic and diluted earnings per common share represents
management's estimate of basic and diluted earnings per common
share for the periods presented, before expenses associated with
our non-recurring professional fees in Fourth Quarter
2013. Adjusted basic and diluted earnings per common share is
presented because management believes it is a useful adjunct to
basic and diluted earnings per common share under accounting
principles generally accepted in the United States since it is a
meaningful measure of the Company's ongoing operating performance
excluding the non-recurring costs. Adjusted basic and diluted
earnings per common share is not a measure of financial performance
under accounting principles generally accepted in the United States
and should not be considered as an alternative to basic and diluted
earnings per common share. |
|
|
|
|
2. Estimated
adjusted basic and diluted earnings per common share represents
management's estimate of basic and diluted earnings per common
share for the periods presented, before expenses associated with
our legal settlement for California wage and hour litigation in
October 2012. Adjusted basic and diluted earnings per common
share is presented because management believes it is a useful
adjunct to basic and diluted earnings per common share under
accounting principles generally accepted in the United States since
it is a meaningful measure of the Company's ongoing operating
performance excluding the non-recurring costs for our California
wage and hour litigation costs. Adjusted basic and diluted earnings
per common share is not a measure of financial performance under
accounting principles generally accepted in the United States and
should not be considered as an alternative to basic and diluted
earnings per common share. |
CONTACT: Joseph Teklits / Jill Gaul
ICR, Inc
203-682-8200
jill.gaul@icrinc.com
jteklits@icrinc.com
Rue21, Inc. (MM) (NASDAQ:RUE)
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Rue21, Inc. (MM) (NASDAQ:RUE)
過去 株価チャート
から 7 2023 まで 7 2024