This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stein Mart, Inc. Reports 2012 Results, Completion Of Restatement And Plans For 2013

The effect of the adjustments for fiscal 2011 was to increase previously reported net income by $0.1 million (see Note 2 in the attached materials). The impact on individual quarters was generally a reduction in first quarter income with increases in second and third quarter income. See Note 3 in the attached materials for tables that present the effect of corrections to the Consolidated Statements of Income for each quarterly period of 2011 and the first quarter of 2012.

Balance Sheet Highlights

Cash at year end 2012 was $67.2 million, after paying a dividend of $43.8 million, compared to $94.1 million in 2011. The Company has no debt and had no borrowings under its credit facility during 2012 or 2011.

Inventories were $243.3 million at year-end 2012 compared to $218.8 million at the end of 2011. Year-end inventories were higher than last year, as planned, due to an additional week of early season spring receipts from the shift of the 53 rd week into fiscal 2012, as well as a strategy to increase wear-now merchandise to drive early first quarter selling.

Capital expenditures were $45.4 million for 2012 driven by our investment in information systems, including our new merchandise information system, as well as new, relocated and remodeled stores.

Store Network

Six new stores were opened, five were closed and four were relocated in 2012. The company operated 263 Stein Mart stores at year-end compared to 262 at the end of 2011.

2013 Plans

In 2013, we are continuing to embrace our value proposition with controlled couponing and even lower prices on selected merchandise. Our goal is to build on the sales increases we experienced in 2012 primarily by deepening our relationship with existing customers, attracting new customers and increasing our share of their spending. 

We expect the following factors to influence our business in 2013:

  • The gross profit rate is expected to be slightly lower than in 2012 as we continue to manage our selling prices and couponing and from lower margins on e-commerce sales in the second half of the year.
  • SG&A expenses are expected to increase $3-4 million as a result of the following:                           
  • We will incur approximately $3 million in start-up costs related to the launch of our new e-commerce business and the transition of our supply chain from third-party to company-operated locations.
  • Depreciation will increase by approximately $3 million as a result of recent years' investments in capital.
  • 2012 SG&A included the impact of certain expenses and income not expected to reoccur in 2013, including $4.0 million of legal and accounting fees related to the restatement of our financial statements and $2.1 million of higher breakage income on unused gift and merchandise return cards as a result of changes in breakage assumptions.
  • The effective tax rate for the year is expected to be approximately 39.5 percent.
  • Current plans are to open four stores, close three stores and relocate four stores to better locations in their respective markets in 2013.
  • Capital expenditures for 2013 are expected to be approximately $34 million, including $14 million for continuing information system upgrades, $5 million for distribution center equipment and software, and the remainder for new and relocated stores, store remodels and new fixtures.

We will be launching our new e-commerce business in mid to late 2013 with a representative merchandise selection. This will enable us to reach new customers and increase our share of existing customers' spend through a multi-channel approach. As noted above, this initiative will actually have a negative bottom line impact in 2013 from start-up costs and margins that are lower than for our brick and mortar stores due to relatively high fulfillment costs at our initial expected sales volume levels. This is an important initiative from which we expect significant future benefit as we grow our sales.

4 of 10

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,563.30 -317.06 -1.88%
S&P 500 1,930.67 -39.40 -2.00%
NASDAQ 4,369.7730 -93.1290 -2.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs