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Stage Stores Reports Record Second Quarter Earnings; EPS Grows 28%; Company Raises 2012 Guidance

(Tables to Follow)

 
Stage Stores, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)
                                       
Thirteen Weeks Ended
July 28, 2012 July 30, 2011
Amount % to Sales (1) Amount % to Sales (1)
 
Net sales $ 381,624 100.0 % $ 352,832 100.0 %
Cost of sales and related buying, occupancy and distribution expenses   266,450 69.8 %   248,975 70.6 %
Gross profit 115,174 30.2 % 103,857 29.4 %
Selling, general and administrative expenses 94,747 24.8 % 86,075 24.4 %
Store opening costs 583 0.2 % 906 0.3 %
Interest expense, net of income of $0 and $2, respectively   951 0.2 %   885 0.3 %
Income before income tax 18,893 5.0 % 15,991 4.5 %
Income tax expense   7,231 1.9 %   5,978 1.7 %
Net income $ 11,662 3.1 % $ 10,013 2.8 %
 
Basic and diluted earnings per share data:
Basic earnings per share $ 0.37 $ 0.29
Basic weighted average shares outstanding   31,010   34,236
 
Diluted earnings per share $ 0.37 $ 0.29
Diluted weighted average shares outstanding   31,225   34,635
 
 
 
(1) Percentages may not foot due to rounding.
 
 
Stage Stores, Inc.
Condensed Consolidated Statements of Income
(in thousands, except earnings per share)
(Unaudited)
                                       
Twenty-Six Weeks Ended
July 28, 2012 July 30, 2011
Amount % to Sales (1) Amount % to Sales (1)
 
Net sales $ 747,318 100.0 % $ 699,315 100.0 %
Cost of sales and related buying, occupancy and distribution expenses   538,305 72.0 %   510,238 73.0 %
Gross profit 209,013 28.0 % 189,077 27.0 %
Selling, general and administrative expenses 187,487 25.1 % 169,677 24.3 %
Store opening costs 1,528 0.2 % 3,640 0.5 %
Interest expense, net of income of $0 and $24, respectively   1,782 0.2 %   1,791 0.3 %
Income before income tax 18,216 2.4 % 13,969 2.0 %
Income tax expense   6,972 0.9 %   4,417 0.6 %
Net income $ 11,244 1.5 % $ 9,552 1.4 %
 
Basic and diluted earnings per share data:
Basic earnings per share $ 0.36 $ 0.27
Basic weighted average shares outstanding   30,773   35,258
 
Diluted earnings per share $ 0.36 $ 0.27
Diluted weighted average shares outstanding   30,988   35,725
 
 
 
(1) Percentages may not foot due to rounding.
 
 
Stage Stores, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par value)
(Unaudited)
                   
July 28, 2012 January 28, 2012
 

ASSETS

Cash and cash equivalents $ 22,627 $ 18,621
Merchandise inventories, net 396,545 347,944
Prepaid expenses and other current assets   27,425     33,434  
Total current assets 446,597 399,999
 
Property, equipment and leasehold improvements, net 292,816 300,717
Intangible asset 14,910 14,910
Other non-current assets, net   20,954     19,713  
Total assets $ 775,277   $ 735,339  
 

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable $ 129,936 $ 106,022
Current portion of debt obligations 710 13,782
Accrued expenses and other current liabilities   72,318     66,495  
Total current liabilities 202,964 186,299
 
Long-term debt obligations 46,696 35,721
Other long-term liabilities   97,170     100,613  
Total liabilities   346,830     322,633  
 
Commitments and contingencies
 
Common stock, par value $0.01, 100,000 shares authorized,
31,230 and 30,444 shares issued, respectively 312 304
Additional paid-in capital 359,400 349,366
Less treasury stock - at cost, 4 and 0 shares, respectively (950 ) (835 )
Accumulated other comprehensive loss (4,620 ) (4,748 )
Retained earnings   74,305     68,619  
Total stockholders' equity   428,447     412,706  
Total liabilities and stockholders' equity $ 775,277   $ 735,339  
 
 
Stage Stores, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
                   
Twenty-Six Weeks Ended
July 28, 2012 July 30, 2011
Cash flows from operating activities:
Net income $ 11,244 $ 9,552
 
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, amortization, and impairment of long-lived assets 30,262 30,853
Loss on retirements of property and equipment - 136
Deferred income taxes 449 79
Tax (deficiency) benefit from stock-based compensation (893 ) 749
Stock-based compensation expense 3,436 4,079
Amortization of debt issuance costs 288 155
Excess tax benefits from stock-based compensation (550 ) (1,181 )
Deferred compensation obligation 54 89
Amortization of employee benefit related costs 206 79
Construction allowances from landlords 1,377 2,102
Changes in operating assets and liabilities:
Increase in merchandise inventories (48,601 ) (32,124 )
Decrease in other assets 4,414 420
Increase (decrease) in accounts payable and other liabilities   24,716     (1,402 )
Total adjustments   15,158     4,034  
Net cash provided by operating activities   26,402     13,586  
 
Cash flows from investing activities:
Additions to property, equipment and leasehold improvements (22,621 ) (22,103 )
Proceeds from retirements of property and equipment   -     93  
Net cash used in investing activities   (22,621 )   (22,010 )
 
Cash flows from financing activities:
Proceeds from revolving credit facility borrowings 190,405 51,700
Payments of revolving credit facility borrowings (174,175 ) (23,700 )
Payments of long-term debt obligations (18,327 ) (6,647 )
Payments of debt issuance costs - (1,097 )
Repurchases of common stock (516 ) (74,558 )
Proceeds from exercise of stock awards 7,846 6,956
Excess tax benefits from stock-based compensation 550 1,181
Cash dividends paid   (5,558 )   (5,408 )
Net cash used in financing activities   225     (51,573 )
Net increase (decrease) in cash and cash equivalents 4,006 (59,997 )
 
Cash and cash equivalents:
Beginning of period   18,621     89,349  
End of period $ 22,627   $ 29,352  
 




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