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

Stocks in this article: SMRT

SAFE HARBOR STATEMENT>>>>>>>Except for historical information contained herein, the statements in this release may be forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The Company does not assume any obligation to update or revise any forward-looking statements even if experience or future changes make it clear that projected results expressed or implied will not be realized. Forward-looking statements involve known and unknown risks and uncertainties that may cause Stein Mart's actual results in future periods to differ materially from forecasted or expected results. Those risks include, without limitation:

  • consumer sensitivity to economic conditions
  • competition in the retail industry
  • changes in consumer preferences and fashion trends
  • the effectiveness of advertising , marketing and promotional strategies
  • ability to negotiate acceptable lease terms with current and potential landlords
  • ability to successfully implement strategies to exit under-performing stores
  • extreme and/or unseasonable weather conditions
  • adequate sources of merchandise at acceptable prices
  • dependence on certain key personnel and ability to attract and retain qualified employees
  • increases in the cost of employee benefits
  • disruption of the Company's distribution process
  • information technology failures
  • acts of terrorism
  • material weaknesses in internal control over financial reporting
  • other risks and uncertainties described in the Company's filings with the Securities and Exchange Commission.

SMRT-F

Additional information about Stein Mart, Inc. can be found at www.steinmart.com

 
Stein Mart, Inc.
Consolidated Balance Sheets
(In thousands, except for share and per share data)
     
  February 2, 2013 January 28, 2012
    (Restated)
ASSETS    
Current assets:    
Cash and cash equivalents  $ 67,233  $ 94,053
Inventories  243,345  218,832
Prepaid expenses and other current assets  22,855  34,139
Total current assets  333,433  347,024
Property and equipment, net  131,570  109,990
Other assets  26,706  22,569
Total assets  $ 491,709  $ 479,583
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities:    
Accounts payable  $ 130,972  $ 106,063
Accrued expenses and other current liabilities  66,109  68,063
Total current liabilities  197,081  174,126
Other liabilities  60,594  55,786
Total liabilities  257,675  229,912
Shareholders' equity:    
Preferred stock -- $.01 par value; 1,000,000 shares authorized; no shares issued or outstanding    
Common stock -- $.01 par value; 100,000,000 shares authorized; 43,808,485 and 43,588,821 shares issued and outstanding, respectively  438  436
Additional paid-in capital  17,491  15,268
Retained earnings  216,574  235,386
Accumulated other comprehensive loss  (469)  (1,419)
Total shareholders' equity  234,034  249,671
Total liabilities and shareholders' equity  $ 491,709  $ 479,583
 
 
Stein Mart, Inc.
Consolidated Statements of Income
(In thousands, except for per share amounts)
         
  14 Weeks Ended 13 Weeks Ended Year Ended Year Ended
  February 2, 2013 January 28, 2012 February 2, 2013 January 28, 2012
    (Restated)   (Restated)
         
Net sales  $ 368,557  $ 330,952  $ 1,232,366  $ 1,177,951
Cost of merchandise sold  262,300  243,460  889,736  858,335
Gross profit  106,257  87,492  342,630  319,616
Selling, general and administrative expenses  89,101  78,243  306,407  287,184
Operating income  17,156  9,249  36,223  32,432
Interest expense, net  55  35  225  286
Income before income taxes  17,101  9,214  35,998  32,146
Income tax provision  3,554  3,321  10,971  12,215
Net income  $ 13,547  $ 5,893  $ 25,027  $ 19,931
         
Net income per share:        
Basic  $ 0.31  $ 0.13  $ 0.57  $ 0.45
Diluted  $ 0.30  $ 0.13  $ 0.57  $ 0.44
         
Weighted-average shares outstanding:        
Basic  42,688  42,733  42,639  43,482
Diluted  43,004  42,769  42,828  43,721
 
 
Stein Mart, Inc.
Consolidated Statements of Comprehensive Income
(In thousands)
         
  14 Weeks Ended 13 Weeks Ended Year Ended Year Ended
  February 2, 2013 January 28, 2012 February 2, 2013 January 28, 2012
    (Restated)   (Restated)
         
Net income  $ 13,547  $ 5,893  $ 25,027  $ 19,931
Other comprehensive income (loss), net of tax:        
Change in post-retirement benefit obligations  873  (1,875)  950  (1,875)
Comprehensive income  $ 14,420  $ 4,018  $ 25,977  $ 18,056
 
 
Stein Mart, Inc.
Consolidated Statements of Cash Flows
(In thousands)
     
  Year Ended Year Ended
  February 2, 2013 January 28, 2012
    (Restated)
Cash flows from operating activities:    
Net income  $ 25,027  $ 19,931
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization  23,911  18,614
Share-based compensation  6,203  3,821
Store closing charges  996  793
Impairment of property and other assets  523  1,166
Loss on disposal of property and equipment  1,324  77
Deferred income taxes  2,916  12,247
Tax deficiency from equity issuances  (510)  (437)
Excess tax benefits from share-based compensation  (640)  (375)
Changes in assets and liabilities:    
Inventories  (24,513)  10,864
Prepaid expenses and other current assets  11,836  (12,986)
Other assets  (4,137)  (3,515)
Accounts payable  24,909  10,518
Accrued expenses and other current liabilities  450  (3,518)
Other liabilities  3,044  7,384
Net cash provided by operating activities  71,339  64,584
Cash flows from investing activities:    
Capital expenditures  (45,426)  (38,012)
Cash used in investing activities  (45,426)  (38,012)
Cash flows from financing activities:    
Cash dividends paid  (43,839)  --
Capital lease payments  (6,066)  (3,362)
Excess tax benefits from share-based compensation  640  375
Proceeds from exercise of stock options and other  471  2,891
Repurchase of common stock  (3,939)  (12,141)
Net cash used in financing activities  (52,733)  (12,237)
Net (decrease) increase in cash and cash equivalents  (26,820)  14,335
Cash and cash equivalents at beginning of year  94,053  79,718
Cash and cash equivalents at end of year  $ 67,233  $ 94,053

NOTES TO PRESS RELEASE

Note 1 – EBITDA:

As used in this release, EBITDA is defined as earnings before interest, income taxes, depreciation and amortization.  EBITDA is not a measure of financial performance under generally accepted accounting principles ("GAAP").  However, we present EBITDA in this release because we consider it to be an important supplemental measure of our performance and because it is frequently used by analysts, investors and others to evaluate the performance of companies. EBITDA is not calculated in the same manner by all companies. EBITDA should be used as a supplement to results of operations and cash flows as reported under GAAP and should not be considered to be a more meaningful measure than, or an alternative to, measures of operating performance as determined in accordance with GAAP.  Below is a reconciliation of Operating income to EBITDA for the years ended February 2, 2013 and January 28, 2012.

  Year Ended Year Ended
  February 2, 2013 January 28, 2012
    (Restated)
Operating income  $ 36,223  $ 32,432
Add back amounts for computation of EBITDA:    
Depreciation and amortization  23,911  18,614
EBITDA  $ 60,134  $ 51,046

Note 2 - RESTATEMENT ITEMS:

Our Consolidated Financial Statements for the first quarter of fiscal 2012 and all periods in fiscal year 2011 have been restated for the errors described below.

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