Current Report
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
May 21, 2009
(Date of Report; Date of Earliest Event Reported)
STEIN MART, INC.
(Exact Name of Registrant as Specified in its Charter)
| Florida | 0-20052 | 64-0466198 | ||
|
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1200 Riverplace Blvd., Jacksonville, Florida 32207
(Address of Principal Executive Offices Including Zip Code)
(904) 346-1500
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
On May 21, 2009, Stein Mart, Inc. issued a press release, a copy of which is attached as Exhibit 99.1, that includes financial results for the quarterly period ended May 2, 2009.
| ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
(d) Exhibits
| 99.1 | Press Release dated May 21, 2009. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| STEIN MART, INC. | ||||
| (Registrant) | ||||
| Date: May 28, 2009 | By: |
/s/ James G. Delfs |
||
| James G. Delfs | ||||
| Senior Vice President, Finance and Chief Financial Officer | ||||
EXHIBIT INDEX
| 99.1 | Press Release dated May 21, 2009. |
Exhibit 99.1
1200 RIVERPLACE BOULEVARD — JACKSONVILLE, FL 32207-1809 — (904) 346-1500
| For more information: | ||
| Susan Datz Edelman | ||
| FOR IMMEDIATE RELEASE | Director, Stockholder Relations | |
| (904) 346-1506 | ||
| May 21, 2009 | sedelman@steinmart.com |
STEIN MART, INC. REPORTS 1Q’09 FINANCIAL RESULTS
JACKSONVILLE, FL – Stein Mart, Inc. (Nasdaq: SMRT) today announced financial results for its first quarter ended May 2, 2009.
First quarter results
For the first quarter of 2009, the Company earned $16.1 million or $0.38 per diluted share as compared to $7.0 million or $0.17 per diluted share in 2008. As previously reported, net sales for the first quarter decreased 9.2 percent to $319.6 million from $352.1 million the previous year and comparable store sales decreased 8.0 percent from the first quarter of 2008.
Gross profit decreased to $96.8 million from $97.7 million in 2008. As a percent of net sales, gross profit increased to 30.3 percent from 27.8 percent in the same period last year. The increase in the gross profit rate resulted from increased markup and decreased markdowns, slightly offset by higher occupancy costs.
Selling, general and administrative (SG&A) expenses were $79.9 million or 25.0 percent of net sales as compared to $91.5 million or 26.0 percent of net sales during the same period last year. The $11.7 million decrease in SG&A resulted primarily from reduced payroll expense in stores and in the corporate office, and from lower depreciation expense.
The effective tax rate for the first quarter of 2009 was 25.8% compared to 40.5% last year. The lower rate in the current quarter resulted from the reversal of a portion of the valuation allowance for deferred tax assets using the discrete period method.
“Despite a very difficult sales environment, first quarter earnings improved due to tightly controlled inventories that enhanced merchandise margins, and significant expense reductions; these initiatives produced a positive cash flow of $32 million and allowed us to end the period debt free,” commented David H. Stovall, Jr., president and chief executive officer of Stein Mart, Inc. “While our conservative outlook regarding the macro environment persists, we believe our re-focused brand strategy and the new marketing initiatives are beginning to gain traction, and will be key to our long-term success.”
Store network
During the first quarter of 2009, a new store opened in Houston, Texas and two existing locations in Atlanta closed. At May 2, 2009, there were 275 stores in operation as compared to 284 stores at the same time last year.
Conference Call
Management will hold a conference call for investment analysts at 10 a.m. ET this morning to discuss these results. The call may be heard on the investor relations portion of the Company’s website at http://ir.steinmart.com . A replay of the presentation will be available on the website until May 29, 2008.
About Stein Mart
Stein Mart stores offer the fashion merchandise, service and presentation of a better department or specialty store, at prices up to 60 percent off department and specialty store original prices, every day. Currently with locations from California to Massachusetts, Stein Mart’s focused assortment of merchandise features current season, moderate to better fashion apparel for women and men, as well as accessories, gifts, linens and shoes.
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 general economic conditions including continued uncertainty in the financial and credit markets |
| • |
the effectiveness of advertising , marketing and promotional strategies |
| • |
intense competition from other retailers |
| • |
changing preferences in apparel |
| • |
access to additional capital at favorable terms, if required |
| • |
ability to successfully negotiate advantageous lease terms with current landlords |
| • |
unanticipated weather conditions and unseasonable weather |
| • |
adequate sources of merchandise at acceptable prices |
| • |
the Company’s ability to attract and retain qualified employees |
| • |
seasonality, including the importance of the holiday selling season |
| • |
disruption of the Company’s distribution system |
| • |
acts of terrorism |
| • |
fluctuation in results could negatively impact stock price |
and the other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission.
###
Additional information about Stein Mart, Inc. can be found at www.steinmart.com
Stein Mart, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except for share data)
Stein Mart, Inc.
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
|
13 Weeks Ended
May 2, 2009 |
13 Weeks Ended
May 3, 2008 |
|||||
|
Net sales |
$ | 319,570 | $ | 352,123 | ||
|
Cost of merchandise sold |
222,740 | 254,377 | ||||
|
Gross profit |
96,830 | 97,746 | ||||
|
Selling, general and administrative expenses |
79,856 | 91,539 | ||||
|
Other income, net |
4,997 | 5,930 | ||||
|
Income from operations |
21,971 | 12,137 | ||||
|
Interest expense, net |
279 | 367 | ||||
|
Income before income taxes |
21,692 | 11,770 | ||||
|
Provision for income taxes |
5,606 | 4,772 | ||||
|
Net income |
$ | 16,086 | $ | 6,998 | ||
|
Net income per share: |
||||||
|
Basic |
$ | 0.38 | $ | 0.17 | ||
|
Diluted |
$ | 0.38 | $ | 0.17 | ||
|
Weighted-average shares outstanding: |
||||||
|
Basic |
42,676 | 42,003 | ||||
|
Diluted |
42,892 | 42,034 | ||||
Stein Mart, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
|
13 Weeks Ended
May 2, 2009 |
13 Weeks Ended
May 3, 2008 |
|||||||
|
Cash flows from operating activities: |
||||||||
|
Net income |
$ | 16,086 | $ | 6,998 | ||||
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
||||||||
|
Depreciation and amortization |
4,939 | 6,497 | ||||||
|
Change in valuation allowance for deferred tax assets |
(2,839 | ) | — | |||||
|
Deferred income taxes |
3,125 | 271 | ||||||
|
Store closing charges |
248 | 111 | ||||||
|
Share-based compensation |
806 | 1,258 | ||||||
|
Changes in assets and liabilities: |
||||||||
|
Trade and other receivables |
407 | 879 | ||||||
|
Inventories |
(2,434 | ) | (18,077 | ) | ||||
|
Income taxes receivable |
7,544 | 4,043 | ||||||
|
Prepaid expenses and other current assets |
(1,085 | ) | (1,729 | ) | ||||
|
Other assets |
4,087 | (1,327 | ) | |||||
|
Accounts payable |
7,402 | 3,268 | ||||||
|
Accrued liabilities |
(1,874 | ) | (2,547 | ) | ||||
|
Other liabilities |
(4,284 | ) | 264 | |||||
|
Net cash provided by (used in) operating activities |
32,128 | (91 | ) | |||||
|
Cash flows from investing activities: |
||||||||
|
Capital expenditures |
(1,621 | ) | (5,448 | ) | ||||
|
Net cash used in investing activities |
(1,621 | ) | (5,448 | ) | ||||
|
Cash flows from financing activities: |
||||||||
|
Borrowings under notes payable to banks |
57,047 | 242,212 | ||||||
|
Repayments of notes payable to banks |
(157,047 | ) | (229,345 | ) | ||||
|
Repurchase of common stock |
(1 | ) | — | |||||
|
Net cash (used in) provided by financing activities |
(100,001 | ) | 12,867 | |||||
|
Net (decrease) increase in cash and cash equivalents |
(69,494 | ) | 7,328 | |||||
|
Cash and cash equivalents at beginning of year |
88,903 | 15,145 | ||||||
|
Cash and cash equivalents at end of period |
$ | 19,409 | $ | 22,473 | ||||