EVANSVILLE, Ind., March 7 /PRNewswire/ --
Shoe Carnival, Inc. (NASDAQ: SCVL) a leading retailer of value-priced footwear
and accessories, today announced record sales and earnings for the 14-week
fourth quarter ended February 3, 2001. Net earnings for the fourth quarter
increased to $741,000 compared with net earnings of $420,000 in the 13-week
fourth quarter ended January 29, 2000. Diluted earnings per share increased
100 percent to $.06 per share from $.03 per share last year.
Net sales for the fourth quarter increased 33.2 percent to $112.4 million
from $84.4 million last year. Comparable store sales increased 5.9 percent on
a 13-week basis.
The gross profit margin for the fourth quarter of 2000 increased 50 basis
points to 27.1 percent from 26.6 percent in the fourth quarter of 1999.
Selling, general and administrative expenses for the fourth quarter, as a
percent of sales, decreased to 25.1 percent from 25.3 percent in last year's
fourth quarter. Included in SG&A expense in the fourth quarter of 2000 is a
charge of approximately $220,000, or 0.2 percent of sales, incurred for the
closing of four stores. New store pre-opening costs incurred in the fourth
quarter of 2000 were $506,000, or 0.5 percent of sales, compared with
$351,000, or 0.4 percent of sales last year.
Interest costs rose to $1.0 million in the fourth quarter from $433,000
last year due to higher interest rates and increased borrowings used to fund
the store expansion and common share repurchase programs.
Commenting on the results, Mark Lemond, president and chief executive
officer said, "After a disappointing first half, the Company achieved record
setting third and fourth quarters for both sales and earnings per share.
These outstanding results were driven primarily by sales of fashion athletic
product during the back-to-school season and strong boot sales in the Fall and
Winter. Comparable store sales increases of 4.9 percent for the third quarter
and 5.9 percent for the fourth quarter represent one of the strongest
back-to-back quarterly performances in the Company's history. As a result,
operating earnings for the fourth quarter increased 100 percent to $2.3
million from $1.1 million last year. Consequently, this lead to record fourth
quarter earnings per share."
For the fiscal year 2000, net sales increased 23.0 percent to
$418.2 million from sales of $339.9 million last year. Comparable store sales
increased 2.5 percent on a 52-week basis. Gross margins as a percent of sales
were 28.7 percent for 2000 and 30.0 percent for 1999. Selling, general and
administrative expenses increased to 24.1 percent of sales, compared to
23.8 percent of sales in 1999 due to higher advertising and store closing
costs. New store pre-opening costs incurred during 2000 were $2.4 million, or
0.6 percent of sales, compared with $2.1 million, or 0.6 percent of sales,
last year. Net earnings for the year were $9.7 million, or $.78 per share on
a diluted basis, for the 53-week 2000 fiscal year which ended February 3,
2001. Net earnings for the 52-week 1999 fiscal year ended January 29, 2000
were $12.0 million, or $.88 per share on a diluted basis.
Mr. Lemond concluded, "We will continue our store expansion in 2001,
though more cautiously. With the expectation of a slowing economy, we now
plan to open 15 or 16 new stores in 2001. When economic conditions improve,
we intend to resume a store growth rate of 20 percent per year.
"We are optimistic that our fourth quarter sales and earnings momentum
will carry into the first half of 2001. Despite softer sales in the early
spring season due to unseasonably cold and wet weather, we expect sales to
significantly improve when the weather turns warmer. Currently we project
earnings to be in the range of $.29 to $.31 per share for the first quarter
and $.88 to $.94 per share for the year."
The Company also announced that June 14, 2001 has been set as the date for
the Annual Meeting of Shareholders and April 6, 2001 has been 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 Corporate Information 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 and
management's ability to negotiate acceptable lease terms and 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 1999.
Shoe Carnival is a chain of 166 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/ .
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share)
(Unaudited)
14 Weeks 13 Weeks 53 Weeks 52 Weeks
Ended Ended Ended Ended
February 3, January 29, February 3, January 29,
2001 2000 2001 2000
Net sales $112,438 $84,389 $418,164 $339,929
Cost of sales
(including buying,
distribution and
occupancy costs) 82,020 61,964 298,233 238,097
Gross profit 30,418 22,425 119,931 101,832
Selling, general and
administrative
expenses 28,155 21,292 100,692 80,888
Operating income 2,263 1,133 19,239 20,944
Interest expense 1,038 433 3,168 1,010
Income before income
taxes 1,225 700 16,071 19,934
Income taxes 484 280 6,348 7,973
Net income $741 $420 $9,723 $11,961
Net income per share:
Basic $0.06 $0.03 $0.79 $.90
Diluted $0.06 $0.03 $0.78 $.88
Average shares outstanding:
Basic 11,952 13,303 12,354 13,284
Diluted 12,024 13,478 12,455 13,578
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
February 3, January 29,
2001 2000
Current Assets:
Cash and cash equivalents $3,227 $1,675
Accounts receivable 1,067 694
Merchandise inventories 123,035 104,730
Deferred income tax benefit 728 876
Other 1,434 1,168
Total Current Assets 129,491 109,143
Property and equipment-net 57,860 53,710
TOTAL ASSETS $187,351 $162,853
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $33,030 $33,817
Accrued and other liabilities 7,896 6,266
Current portion of long-term debt 874 714
Total Current Liabilities 41,800 40,797
Long-term debt 41,137 22,338
Deferred lease incentives 3,651 3,077
Deferred income taxes 4,386 3,296
Other 64 0
TOTAL LIABILITIES 91,038 69,508
SHAREHOLDERS' EQUITY 96,313 93,345
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $187,351 $162,853
SOURCE Shoe Carnival, Inc.
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Related links:
http://www.shoecarnival.com
Company News On-Call:
http://www.prnewswire.com/comp/127183 135751.html or fax,
800-758-5804, ext. 127183 135751
CONTACT:
Mark L. Lemond, President and Chief Executive
Officer, or W. Kerry Jackson, Vice President, Chief Financial
Officer and Treasurer, both of Shoe Carnival, 812-867-4034
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