EVANSVILLE, Ind., March 6 /PRNewswire-FirstCall/ -- Shoe Carnival, Inc.
(Nasdaq: SCVL) a leading retailer of value-priced footwear and accessories,
today announced record sales and earnings for the fourth quarter and fiscal
year ended February 2, 2002.
Net earnings for the 13-week fourth quarter increased to $1.2 million as
compared with net earnings of $741,000 in the 14-week fourth quarter ended
February 3, 2001. Diluted earnings per share increased 50 percent to $.09 per
share from $.06 per share last year. Net earnings for the 52-week 2001 fiscal
year increased almost 30 percent to $12.6 million, or $1.01 per diluted share,
from $9.7 million, or $.78 per diluted share for the 53-week 2000 fiscal year.
Net sales for the fourth quarter increased 7 percent to $120.6 million
from $112.4 million last year. Comparable store sales increased 6.6 percent
on a 13-week basis.
The gross profit margin for the fourth quarter of 2001 decreased to
25.8 percent from 27.1 percent in the fourth quarter of 2000. Unseasonably
warm weather throughout the fourth quarter slowed the sale of winter product.
Aggressive promotions, particularly in the latter half of the quarter, cleared
winter product to a level lower than that of a year ago but resulted in lower
gross margins for the quarter compared with last year's fourth quarter.
Selling, general and administrative expenses for the fourth quarter, as a
percent of sales, decreased to 24.0 percent from 25.1 percent in last year's
fourth quarter. Included in the selling, general and administrative expenses
are charges for costs associated with store closings of $380,000, or
0.3 percent of sales, in the fourth quarter of 2001 and $220,000, or
0.2 percent of sales, in the fourth quarter of 2000. No stores were opened in
the fourth quarter of 2001 and no pre-opening costs were incurred. Seven
stores were opened in the fourth quarter of 2000 and pre-opening costs were
$506,000, or 0.5 percent of sales.
Interest expense declined to $364,000 in the fourth quarter from
$1.0 million last year due to substantial reductions in borrowings and the
effective interest rate. The effective income tax rate for the fourth quarter
declined to 37.5 percent from 39.5 percent in last year's fourth quarter as a
result of lower state income taxes.
For the 52-week 2001 fiscal year, net sales increased 14 percent to
$476.6 million from sales of $418.2 million for the 53-week 2000 fiscal year.
Comparable store sales increased 3 percent on a 52-week basis. Gross margins
as a percent of sales were 28.4 percent for 2001 and 28.7 percent for 2000.
Selling, general and administrative expenses decreased to 23.7 percent of
sales, compared to 24.1 percent of sales in 2000 primarily due to a reduction
in pre-opening costs for the year.
New store pre-opening costs incurred during 2001 were $1.2 million, or
0.2 percent of sales, compared with $2.4 million, or 0.6 percent of sales last
year. Eighteen stores were opened in 2001 and one store was closed. Thirty-
two stores were opened in 2000 and 5 stores were closed.
Commenting on the results, Mark Lemond, president and chief executive
officer said, "A 50 percent increase in earnings in the fourth quarter
completed a record year for Shoe Carnival. For the full year we achieved a
10 percent increase in the number of stores, a 14 percent increase in sales
and an increase in earnings of almost 30 percent. These are solid
accomplishments in a difficult retail environment. Five years ago we
initiated a transformation of the Shoe Carnival concept, changing virtually
every aspect of our business. These changes reshaped the potential of the
Company and have resulted in a five-year compounded annual sales growth rate
of 15 percent. More importantly, during the same time period, earnings have
increased at a 25 percent compounded annual growth rate. As a result of this
consistent track record, the Company is recognized as a leader in the footwear
industry. During 2001 Forbes Magazine recognized Shoe Carnival as one of
"America's 200 Best Small Companies" and Footwear News, a leading trade
publication in the footwear industry, named Shoe Carnival "Chain Retailer of
the Year."
"Looking ahead to 2002, we will focus on previously successful strategies
in our efforts to continue our strong performance. While we turn our
inventory faster than most of our competitors, we are intent on improving our
inventory turns. Faster turning inventories should result in fresher
inventories and help to limit end-of-season markdowns. This has the potential
of improving the gross margins and the return on invested capital. Our plan
is to open 25 stores during 2002. Although pre-opening expenses will increase
in 2002, we will tightly control administrative expenses and thus, we expect
to leverage selling, general and administrative expenses against a higher
sales base. We are looking forward to another year of strong growth and to
extend our track record of consistent performance."
The Company also announced that June 5, 2002 has been set as the date for
the Annual Meeting of Shareholders and April 5, 2002 was set as the
shareholder record date.
Today, at 2:00 p.m. Eastern time, the Company will host a conference call
to discuss the fourth quarter results. The public can listen to the live
webcast of the call by visiting Shoe Carnival's Investor Relations page at
http://www.shoecarnival.com . While the question-and-answer session will be available
to all listeners, questions from the audience will be limited to institutional
analysts and investors. A replay of the webcast will be available on our
website for two weeks beginning approximately two hours after the conclusion
of the conference call.
This release contains certain forward-looking statements that involve a
number of risks and uncertainties. Among the factors that could cause actual
results to differ materially are the following: general economic conditions
in the areas of the United States in which the Company's stores are located;
changes in the overall retail environment and more specifically in the apparel
and footwear retail sectors; the impact of competition, weather patterns,
consumer buying trends and the ability of the Company to identify and respond
to emerging fashion trends; the availability of desirable store locations at
acceptable lease terms and the ability of the Company to open new stores in a
timely manner; higher than anticipated costs associated with the closing of
underperforming stores; and other factors described in the Company's form 10-K
for fiscal year 2000.
Shoe Carnival is a chain of 183 footwear stores located in the Midwest,
South and Southeast. Combining value pricing with an entertaining store
format, Shoe Carnival is a leading retailer of name brand and private label
footwear for the entire family. Headquartered in Evansville, IN, Shoe
Carnival trades on the Nasdaq Stock Market under the symbol SCVL. Shoe
Carnival's press releases and annual report are available on the Company's
website at http://www.shoecarnival.com
Financial Tables Follow
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share)
(Unaudited)
13 Weeks 14 Weeks 52 Weeks 53 Weeks
Ended Ended Ended Ended
February 2, February 3, February 2, February 3,
2002 2001 2002 2001
Net sales $120,606 $112,438 $476,556 $418,164
Cost of sales
(including buying,
distribution and
occupancy costs) 89,498 82,020 341,425 298,233
Gross profit 31,108 30,418 135,131 119,931
Selling, general
and administrative
expenses 28,892 28,155 112,736 100,692
Operating income 2,216 2,263 22,395 19,239
Interest expense 364 1,038 2,275 3,168
Income before income
taxes 1,852 1,225 20,120 16,071
Income taxes 694 484 7,545 6,348
Net income $1,158 $741 $12,575 $9,723
Net income per share:
Basic $0.09 $0.06 $1.04 $0.79
Diluted $0.09 $0.06 $1.01 $0.78
Average shares outstanding:
Basic 12,265 11,952 12,124 12,354
Diluted 12,662 12,024 12,483 12,455
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
February 2, February 3,
2002 2001
Current Assets:
Cash and cash equivalents $5,459 $3,227
Accounts receivable 1,298 1,067
Merchandise inventories 135,648 123,035
Deferred income tax benefit 449 728
Other 1,816 1,434
Total Current Assets 144,670 129,491
Property and equipment-net 57,249 57,860
TOTAL ASSETS $201,919 $187,351
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $42,108 $33,030
Accrued and other liabilities 10,452 7,896
Current portion of long-term debt 834 874
Total Current Liabilities 53,394 41,800
Long-term debt 27,672 41,137
Deferred lease incentives 4,197 3,651
Deferred income taxes 4,223 4,386
Other 331 64
TOTAL LIABILITIES 89,817 91,038
SHAREHOLDERS' EQUITY 112,102 96,313
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $201,919 $187,351
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
February 2, February 3,
2002 2001
Cash Flows From Operating Activities
Net income $12,575 $9,723
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 11,172 10,346
Loss on retirement of assets 283 321
Deferred income taxes 116 1,237
Other (222) (417)
Changes in operating assets and liabilities:
Merchandise inventories (12,613) (18,305)
Accounts receivable (231) (373)
Accounts payable and accrued liabilities 11,650 844
Other (400) (266)
Net cash provided by operating activities 22,330 3,110
Cash Flows From Investing Activities
Purchases of property and equipment (10,395) (14,029)
Lease incentives 1,026 1,048
Other 0 2
Net cash used in investing activities (9,369) (12,979)
Cash Flows From Financing Activities
Net (payments) borrowings under line of credit (13,000) 19,000
Payments on long-term debt (943) (824)
Proceeds from issuance of stock 3,214 821
Common stock repurchased 0 (7,576)
Net cash (used in) provided by financing
activities (10,729) 11,421
Net increase (decrease) in cash and cash
equivalents 2,232 1,552
Cash and cash equivalents at beginning of year 3,227 1,675
Cash and Cash Equivalents at End of Year $5,459 $3,227
SOURCE Shoe Carnival, Inc.
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Related links:
http://www.shoecarnival.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/127183.html
CONTACT:
Mark L. Lemond, President and Chief Executive
Officer, or W. Kerry Jackson, Sr. Vice President, Chief Financial
Officer and Treasurer of Shoe Carnival, Inc., +1-812-867-4034
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