Stein Mart, Inc. Reports First Quarter 2013 Financial Results

Highlights:
  • Diluted earnings per share of $0.33 compared to $0.25 last year.
  • Net income of $14.7 million increases 35.6 percent.
  • Comparable store sales up 1.2 percent.

JACKSONVILLE, Fla., May 23, 2013 (GLOBE NEWSWIRE) -- Stein Mart, Inc. (Nasdaq:SMRT) today announced financial results for the first quarter ended May 4, 2013.

Overview of Results

Net income for the first quarter of 2013 was $14.7 million or $0.33 per diluted share compared to net income of $10.8 million or $0.25 per diluted share in 2012. EBITDA for the first quarter increased 29.3 percent to $31.2 million compared to $24.1 million in 2012 (see Note 1).

Total sales for the first quarter of 2013 increased 3.8 percent to $321.4 million, while comparable store sales increased 1.2 percent.

"We ended the quarter strongly with an 8.0 percent comp sales increase in April and a positive comp for the quarter, despite a slow start caused by colder than normal weather and the Easter calendar shift," said Jay Stein, Chief Executive Officer. "Our increased sales and a higher gross profit rate leveraged against relatively flat expenses drove our substantially higher earnings."

Comments on Results

Gross profit for the first quarter increased to $97.9 million or 30.5 percent of sales from $91.9 million or 29.7 percent of sales in 2012. The increase in gross profit was due to increased sales and an increase in the gross profit rate which was primarily the result of lower markdowns.

Selling, general and administrative ("SG&A") expenses for the first quarter were $73.6 million or 22.9 percent of sales compared to $72.9 million or 23.6 percent of sales in 2012. The slight increase in SG&A expenses was primarily due to higher depreciation expense and $0.7 million of additional professional fees associated with our restatement, partially offset by various other cost reductions.

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