Stage Stores, Inc. (Nasdaq: STGS): -0- *T --Second Quarter Sales
Increase to Record $309.4 Million-- --Reports Earnings of $0.33 Per
Diluted Share-- *T Stage Stores, Inc. (Nasdaq: STGS) today reported
that total sales for the second quarter ended July 30, 2005
increased 10.5% to a record $309.4 million from $279.9 million for
the prior year second quarter ended July 31, 2004. The increase was
driven by the Company's comparable store sales increase for the
quarter of 7.0% and sales from new stores. Net income increased
20.4% during the second quarter, rising to $6.5 million from $5.4
million last year, and diluted earnings per share increased 22.2%
to $0.33 from $0.27 in the prior year period. Jim Scarborough,
Chairman, President and Chief Executive Officer, commented, "This
was a quarter filled with significant achievements and important
milestones. We achieved record sales for the second quarter, driven
by our strong 7.0% comparable store sales increase, as our
customers responded positively to our spring and summer merchandise
assortments. We enjoyed strong sales performances across a broad
range of product categories, with three merchandise categories,
namely women's special sizes (+20.9%), accessories (+16.9%) and
misses sportswear (+10.8%), achieving double-digit comparable store
sales growth for the quarter. Additionally, our comparable store
sales performance at our Peebles stores once again exceeded our
Company average for the quarter, demonstrating that our initiatives
to improve the sales productivity in these stores continue to yield
favorable results." Mr. Scarborough continued, "During the quarter,
we announced a 3-for-2 stock split, payable on August 19, 2005, and
instituted a new $30 million Stock Repurchase Program. We also had
a changing of the guard in our Peebles merchandising organization.
In conjunction with the retirement of Ron Palmore, we have promoted
two exceptionally talented individuals, John Bower and Wendy
Morgan, who will continue to build upon the success of our Peebles
merchandising team." Total sales for the six-month period ended
July 30, 2005 increased 8.8% to $619.5 million from $569.5 million
last year. Comparable store sales increased 5.9% versus an increase
of 0.6% for the prior year. The Company noted that last year's
comparable store sales results were negatively impacted by a
calendar shift in the Texas sales tax holiday weekend, which moved
this significant event from the second quarter in 2003 to the third
quarter in 2004. Net income for the period was $27.0 million, or
$1.36 per diluted share, compared to $23.9 million, or $1.17 per
diluted share, for the same period last year. For the six-month
period, diluted earnings per share have grown by 16.2%. Mr.
Scarborough concluded, "We are also very pleased with our solid
performance during the first half of the year, as our comparable
store sales increased 5.9%, and our diluted earnings per share
increased 16.2%. Looking ahead, our merchants have done an
outstanding job of putting together great merchandise assortments
for back-to-school and the upcoming fall season, and we are upbeat
about our prospects for the second half of the year." Store
Activity The Company reported that it opened seven new stores
during the second quarter, including one Bealls store, four Stage
stores and two Peebles stores. These seven openings brought the
total number of stores opened during the first half of the year to
seventeen. The Company also reported that it closed one Stage store
and one Palais Royal store during the period. The Company further
reported that it relocated two stores and remodeled three stores
during the quarter. The Company added that it currently anticipates
opening twenty-one new stores during the second half of the year,
with the majority of the stores opening in the third quarter.
Fiscal 2005 - Third Quarter, Fourth Quarter and Full Year Outlook
Fiscal 2005 - 3rd Quarter: For the third quarter ending October 29,
2005, the Company currently anticipates reporting revenues in the
range of $298 to $304 million, with the expectation of a comparable
store sales increase in the low single digits. Net income is
currently projected to be in the range of $9.3 to $10.1 million, or
earnings of $0.47 to $0.51 per diluted share. This outlook compares
to earnings of $8.9 million, or $0.46 per diluted share, for the
prior year third quarter. In projecting diluted earnings per share
for the fiscal 2005 third quarter, the Company used an estimated
diluted share count of 19.9 million shares. Fiscal 2005 - 4th
Quarter: For the fourth quarter ending January 28, 2006, the
Company currently anticipates reporting revenues in the range of
$409 to $417 million, with the expectation of a comparable store
sales increase in the low single digits. Net income is currently
projected to be in the range of $19.6 to $20.6 million, or earnings
of $0.99 to $1.04 per diluted share. This outlook compares to
earnings of $18.6 million, or $0.94 per diluted share, for the
prior year fourth quarter. In projecting diluted earnings per share
for the fiscal 2005 fourth quarter, the Company used an estimated
diluted share count of 19.8 million shares. Fiscal 2005 - Full
Year: Updating its outlook for the 2005 fiscal year ending January
28, 2006, the Company currently anticipates reporting revenues in
the range of $1.327 to $1.341 billion, with the expectation of a
comparable store sales increase in the upper low single digits. Net
income is currently projected to be in the range of $55.9 to $57.7
million, or earnings of $2.81 to $2.90 per diluted share. This
outlook compares to earnings of $51.4 million, or $2.58 per diluted
share, for the 2004 fiscal year. In projecting diluted earnings per
share for the 2005 fiscal year, the Company used an estimated
diluted share count of 19.9 million shares. In comparing this
year's net income forecast to last year's actual results, the
Company noted that its 2005 projections include non-recurring costs
expected to be incurred in connection with the closure of its
Knoxville, Tennessee distribution center, which is anticipated to
occur in the fourth quarter, as well as expenses associated with
improvements being made to its South Hill, Virginia distribution
center and merchandising system. The Company currently estimates
that these expenses will total, after tax, approximately $1.5
million, or $0.07 to $0.08 per diluted share, split $0.01 in each
of the first three quarters of the year, and $0.04 to $0.05 in the
fourth quarter. 3-for-2 Stock Split The Company stated that its
previously announced stock split would be paid tomorrow, August 19,
2005. As such, effective August 22, 2005, the Company's stock price
as quoted on Nasdaq will be adjusted for the split, and the Company
will begin issuing financial information and earnings guidance on a
post-split basis. Conference Call Information The Company will host
a conference call today at 8:30 a.m. Eastern Time to discuss the
second quarter's results as well as its outlook for the second half
of the 2005 fiscal year. All interested parties can listen to a
live webcast of the Company's conference call by logging on to the
Company's web site at www.stagestores.com and then clicking on
Investor Relations, then Webcasts, then the webcast link. A replay
of the conference call will be available online at each web site
until midnight on Friday, August 26, 2005. About Stage Stores Stage
Stores, Inc. brings nationally recognized brand name apparel,
accessories, cosmetics and footwear for the entire family to small
and mid-size towns and communities through 545 stores located in 30
states. The Company operates under the Bealls, Palais Royal and
Stage names throughout the South Central states, and under the
Peebles name throughout the Mid-Atlantic, Southeastern and
Midwestern states. For more information about Stage Stores, visit
the Company's web site at www.stagestores.com. "Safe Harbor"
Statement This news release contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, including comments regarding the Company's store opening
plans for the second half of the 2005 fiscal year, as well as the
Company's outlook and expectations for the third quarter of the
2005 fiscal year, the fourth quarter of the 2005 fiscal year and
for the entire 2005 fiscal year. The Company intends forward
looking terminology such as "believes", "expects", "may", "will",
"should", "could", "anticipates", "plans" or similar expressions to
identify forward-looking statements. Such statements are subject to
certain risks and uncertainties which could cause the Company's
actual results to differ materially from those anticipated by the
forward-looking statements. These risks and uncertainties include,
but are not limited to, those described in the Company's Annual
Report on Form 10-K as filed with the Securities and Exchange
Commission (the "SEC") on April 28, 2005, in the Company's
Quarterly Reports on Form 10-Q as filed with the SEC and other
factors as may periodically be described in other Company filings
with the SEC. (Tables to Follow) -0- *T Stage Stores, Inc.
Condensed Consolidated Statements of Income (in thousands, except
earnings per share) (unaudited) Thirteen Weeks Ended
--------------------------------- July 30, 2005 July 31, 2004
---------------- ---------------- % to % to Sales Sales Amount (1)
Amount (1) --------- ------ --------- ------ Net sales $309,430
100.0% $279,872 100.0% Cost of sales and related buying, occupancy
and distribution expenses 226,661 73.3% 207,210 74.0% ---------
------ --------- ------ Gross profit 82,769 26.7% 72,662 26.0%
Selling, general and administrative expenses 71,047 23.0% 63,359
22.6% Store pre-opening costs 739 0.2% 155 0.1% Interest expense
645 0.2% 581 0.2% --------- ------ --------- ------ Income before
income tax 10,338 3.3% 8,567 3.1% Income tax expense 3,825 1.2%
3,170 1.1% --------- ------ --------- ------ Net income $6,513 2.1%
$5,397 1.9% ========= ====== ========= ====== (1) Percentages may
not foot due to rounding. Basic and diluted earnings per share
data: Basic earnings per share $0.36 $0.30 ========= =========
Basic weighted average shares outstanding 18,150 18,194 =========
========= Diluted earnings per share $0.33 $0.27 =========
========= Diluted weighted average shares outstanding 19,869 20,016
========= ========= *T -0- *T Stage Stores, Inc. Condensed
Consolidated Statements of Income (in thousands, except earnings
per share) (unaudited) Twenty-Six Weeks Ended
--------------------------------- July 30, 2005 July 31, 2004
---------------- ---------------- % to % to Sales Sales Amount (1)
Amount (1) --------- ------ --------- ------ Net sales $619,490
100.0% $569,530 100.0% Cost of sales and related buying, occupancy
and distribution expenses 432,559 69.8% 400,404 70.3% ---------
------ --------- ------ Gross profit 186,931 30.2% 169,126 29.7%
Selling, general and administrative expenses 141,211 22.8% 129,672
22.8% Store pre-opening costs 1,694 0.3% 496 0.1% Interest expense,
net of interest income of $128 and $13, respectively 1,113 0.2%
1,057 0.2% --------- ------ --------- ------ Income before income
tax 42,913 6.9% 37,901 6.7% Income tax expense 15,878 2.6% 14,023
2.5% --------- ------ --------- ------ Net income $27,035 4.4%
$23,878 4.2% ========= ====== ========= ====== (1) Percentages may
not foot due to rounding. Basic and diluted earnings per share
data: Basic earnings per share $1.48 $1.29 ========= =========
Basic weighted average shares outstanding 18,230 18,559 =========
========= Diluted earnings per share $1.36 $1.17 =========
========= Diluted weighted average shares outstanding 19,890 20,381
========= ========= *T -0- *T Stage Stores, Inc. Condensed
Consolidated Balance Sheets (in thousands, except par values)
(unaudited) July 30, January 2005 29, 2005 --------- ---------
ASSETS ------ Cash and cash equivalents $15,649 $40,455 Merchandise
inventories, net 323,133 281,588 Current deferred taxes 23,672
24,031 Prepaid expenses and other current assets 26,638 22,278
--------- --------- Total current assets 389,092 368,352 Property,
equipment and leasehold improvements, net 230,996 212,179 Goodwill
79,353 79,353 Intangible asset 14,910 14,910 Other non-current
assets, net 13,874 12,205 --------- --------- Total assets $728,225
$686,999 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------ Accounts payable $98,271
$74,957 Income taxes payable 2,796 11,024 Current portion of debt
obligations 69 130 Accrued expenses and other current liabilities
58,233 57,080 --------- --------- Total current liabilities 159,369
143,191 Debt obligations 5,018 3,048 Deferred taxes 10,323 11,527
Other long-term liabilities 53,683 47,960 --------- --------- Total
liabilities 228,393 205,726 --------- --------- Commitments and
contingencies Common stock, par value $0.01, 50,000 shares
authorized, 21,642 and 21,405 shares issued, respectively 216 214
Additional paid-in capital 402,951 396,336 Less treasury stock - at
cost, 3,458 and 3,083 shares, respectively (109,921) (94,828)
Minimum pension liability adjustment (451) (451) Retained earnings
207,037 180,002 --------- --------- Stockholders' equity 499,832
481,273 --------- --------- Total liabilities and stockholders'
equity $728,225 $686,999 ========= ========= *T -0- *T Stage
Stores, Inc. Condensed Consolidated Statements of Cash Flows (in
thousands) (unaudited) Twenty- Twenty- Six Six Weeks Weeks Ended
Ended -------- -------- July 30, July 31, 2005 2004 --------
-------- Cash flows from operating activities: Net income $27,035
$23,878 Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 19,493 17,414
Deferred income taxes (845) 1,834 Amortization of debt issue costs
223 223 Provision for bad debts - 311 Deferred stock compensation
347 115 Proceeds from sale of proprietary credit card portfolio,
net - 34,764 Construction allowances received from landlords 6,303
979 Changes in operating assets and liabilities: Decrease in
accounts receivable and retained interest in receivables sold -
3,537 Increase in merchandise inventories (41,545) (27,301)
(Increase) decrease in other assets (6,323) 4,996 Increase in
accounts payable and other liabilities 15,659 2,726 --------
-------- Total adjustments (6,688) 39,598 -------- -------- Net
cash provided by operating activities 20,347 63,476 --------
-------- Cash flows from investing activities: Additions to
property, equipment and leasehold improvements (38,239) (15,251)
-------- -------- Net cash used in investing activities (38,239)
(15,251) -------- -------- Cash flows from financing activities:
Proceeds from (payments on): Revolving credit facility, net 2,000
7,790 Repurchases of common stock (15,093) (57,060) Debt
obligations (91) (782) Exercise of stock options 6,270 4,461
-------- -------- Net cash used in financing activities (6,914)
(45,591) -------- -------- Net increase (decrease) in cash and cash
equivalents (24,806) 2,634 Cash and cash equivalents: Beginning of
period 40,455 14,733 -------- -------- End of period $15,649
$17,367 ======== ======== Supplemental disclosures: Interest paid
$906 $716 ======== ======== Income taxes paid $22,640 $3,176
======== ======== *T
Stage Stores (NASDAQ:STGS)
éŽåŽ» æ ªä¾¡ãƒãƒ£ãƒ¼ãƒˆ
ã‹ã‚‰ 5 2024 ã¾ã§ 6 2024
Stage Stores (NASDAQ:STGS)
éŽåŽ» æ ªä¾¡ãƒãƒ£ãƒ¼ãƒˆ
ã‹ã‚‰ 6 2023 ã¾ã§ 6 2024