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Stage Stores’ Third Quarter Results Improve 22%; Company Raises 2012 Guidance

(Tables to Follow)

 
Stage Stores, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
       
Thirteen Weeks Ended
October 27, 2012 October 29, 2011
Amount % to Sales (1) Amount % to Sales (1)
 
Net sales $ 370,583 100.0 % $ 333,508 100.0 %
Cost of sales and related buying, occupancy and distribution expenses   290,719   78.4 %   262,345   78.7 %
Gross profit 79,864 21.6 % 71,163 21.3 %
Selling, general and administrative expenses 92,472 25.0 % 86,994 26.1 %
Store opening costs 1,629 0.4 % 1,578 0.5 %
Interest expense, net of income of $0 and $0, respectively   568   0.2 %   1,015   0.3 %
Income before income tax (14,805 ) -4.0 % (18,424 ) -5.5 %
Income tax benefit   (5,947 ) -1.6 %   (7,118 ) -2.1 %
Net loss $ (8,858 ) -2.4 % $ (11,306 ) -3.4 %
 
Basic and diluted earnings per share data:
Basic earnings per share $ (0.28 ) $ (0.36 )
Basic weighted average shares outstanding   31,558     31,139  
 
Diluted earnings per share $ (0.28 ) $ (0.36 )
Diluted weighted average shares outstanding   31,558     31,139  
 
 
 
(1) Percentages may not foot due to rounding.
 
Stage Stores, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except earnings per share)
(Unaudited)
       
Thirty-Nine Weeks Ended
October 27, 2012 October 29, 2011
Amount % to Sales (1) Amount % to Sales (1)
 
Net sales $ 1,117,901 100.0 % $ 1,032,823 100.0 %
Cost of sales and related buying, occupancy and distribution expenses   829,024 74.2 %   772,583   74.8 %
Gross profit 288,877 25.8 % 260,240 25.2 %
Selling, general and administrative expenses 279,959 25.0 % 256,671 24.9 %
Store opening costs 3,157 0.3 % 5,218 0.5 %
Interest expense, net of income of $0 and $24, respectively   2,350 0.2 %   2,806   0.3 %
Income before income tax 3,411 0.3 % (4,455 ) -0.4 %
Income tax expense   1,025 0.1 %   (2,701 ) -0.3 %
Net income (loss) $ 2,386 0.2 % $ (1,754 ) -0.2 %
 
Basic and diluted earnings per share data:
Basic earnings per share $ 0.08 $ (0.05 )
Basic weighted average shares outstanding   31,035   33,885  
 
Diluted earnings per share $ 0.08 $ (0.05 )
Diluted weighted average shares outstanding   31,301   33,885  
 
 
 
(1) Percentages may not foot due to rounding.
 
Stage Stores, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par value)
(Unaudited)
 
October 27, 2012 January 28, 2012
 

ASSETS

Cash and cash equivalents $ 37,420 $ 18,621
Merchandise inventories, net 510,815 347,944
Prepaid expenses and other current assets   20,893     33,434  
Total current assets 569,128 399,999
 
Property, equipment and leasehold improvements, net 296,845 300,717
Intangible asset 14,910 14,910
Other non-current assets, net   21,538     19,713  
Total assets $ 902,421   $ 735,339  
 

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable $ 250,864 $ 106,022
Current portion of debt obligations 727 13,782
Accrued expenses and other current liabilities   79,804     66,495  
Total current liabilities 331,395 186,299
 
Long-term debt obligations 33,277 35,721
Other long-term liabilities   109,305     100,613  
Total liabilities   473,977     322,633  
 
Commitments and contingencies
 
Common stock, par value $0.01, 100,000 shares authorized, 31,851 and 30,444 shares issued, respectively
319 304
Additional paid-in capital 371,417 349,366
Less treasury stock - at cost, 4 and 0 shares, respectively (988 ) (835 )
Accumulated other comprehensive loss (4,556 ) (4,748 )
Retained earnings   62,252     68,619  
Total stockholders' equity   428,444     412,706  
Total liabilities and stockholders' equity $ 902,421   $ 735,339  
 
Stage Stores, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
 
Thirty-Nine Weeks Ended
October 27, 2012 October 29, 2011
Cash flows from operating activities:
Net income (loss) $ 2,386 $ (1,754 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization, and impairment of long-lived assets 44,894 46,027
Loss on retirements of property and equipment - 123
Deferred income taxes (98 ) (28 )
Tax (deficiency) benefit from stock-based compensation (1,391 ) 774
Stock-based compensation expense 5,459 6,354
Amortization of debt issuance costs 353 251
Excess tax benefits from stock-based compensation (851 ) (1,252 )
Deferred compensation obligation 92 114
Amortization of employee benefit related costs 310 118
Construction allowances from landlords 4,133 4,487
Changes in operating assets and liabilities:
Increase in merchandise inventories (162,871 ) (122,136 )
Decrease (increase) in other assets 10,262 (1,786 )
Increase in accounts payable and other liabilities   157,379     83,093  
Total adjustments   57,671     16,139  
Net cash provided by operating activities   60,057     14,385  
 
Cash flows from investing activities:
Additions to property, equipment and leasehold improvements (35,610 ) (33,166 )
Proceeds from retirements of property and equipment   -     122  
Net cash used in investing activities   (35,610 )   (33,044 )
 
Cash flows from financing activities:
Proceeds from revolving credit facility borrowings 262,620 160,100
Payments of revolving credit facility borrowings (259,620 ) (82,100 )
Payments of long-term debt obligations (18,499 ) (10,043 )
Payments of debt issuance costs - (1,149 )
Repurchases of common stock (583 ) (110,692 )
Proceeds from exercise of stock awards 18,336 7,139
Excess tax benefits from stock-based compensation 851 1,252
Cash dividends paid   (8,753 )   (8,256 )
Net cash used in financing activities   (5,648 )   (43,749 )
Net increase (decrease) in cash and cash equivalents 18,799 (62,408 )
 
Cash and cash equivalents:
Beginning of period   18,621     89,349  
End of period $ 37,420   $ 26,941  




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