EVANSVILLE, Ind., March 9 /PRNewswire/ -- Shoe Carnival, Inc.
(Nasdaq: SCVL) a leading retailer of value-priced footwear and accessories,
today announced record net earnings of $12.0 million, or $.88 per share on a
diluted basis, for the 1999 fiscal year which ended January 29, 2000. This
represents a 17 percent increase over net earnings of $10.2 million, or
$.76 per share on a diluted basis, for fiscal 1998. Net sales for the 1999
fiscal year increased 21 percent to $339.9 million from sales of
$280.2 million for the 1998 fiscal year. Comparable store sales increased
1.4 percent for the 52-week period.
Net earnings for the fourth quarter of 1999 were $420,000, or $.03 per
share on a diluted basis, compared with net earnings of $670,000, or $.05 per
share on a diluted basis, in the fourth quarter of 1998. Net sales for the
fourth quarter increased 21 percent to $84.4 million from $69.9 million last
year. Comparable store sales decreased 0.4 percent for the 13-week period.
Commenting on the results, Mark Lemond, president and chief executive
officer said, "Despite slightly weaker fourth quarter results, we achieved
record annual sales and earnings results for the third consecutive year.
Comparable store sales have increased in each of the last three years and we
have recorded double digit growth in annual sales for the last two years and
double digit growth in annual earnings for the last four years."
The gross profit margin for both the fourth quarter of 1999 and the fourth
quarter of 1998 was unchanged at 26.6 percent of sales. Gross margins for
both the 1999 and 1998 fiscal years were also flat at 30.0 percent of sales.
SG&A expenses for the fourth quarter of 1999 increased to 25.3 percent of
sales from 24.8 percent in last year's fourth quarter due, primarily, to the
de-leveraging effect of lower comparable store sales and slightly higher new
store pre-opening costs in the fourth quarter of 1999 compared to the fourth
quarter of 1998. Pre-opening costs incurred in the fourth quarters of 1999
and 1998 were $351,000, or 0.4 percent of sales, and $204,000, or 0.3 percent
of sales, respectively. For the 1999 fiscal year, SG&A expenses were
23.8 percent of sales, compared to 23.7 percent of sales in 1998. New store
pre-opening costs incurred during the 1999 and 1998 fiscal years were
$2.1 million, or 0.6 percent of sales, and $1.7 million, or 0.6 percent of
sales, respectively.
Annual operating earnings increased 19 percent to $20.9 million in 1999
from $17.6 million in 1998, but declined slightly as a percentage of sales to
6.2 percent in 1999 from 6.3 percent in 1998.
Mr. Lemond continued, "During the year, we opened 28 new stores, expanded
2 and closed one store for a net addition of 316,000 square feet of retail
space. We ended the year with 138 stores and 1.6 million square feet of
retail space. We also doubled the size of our distribution center to 200,000
square feet and installed state-of-the-art material handling, picking and
sorting equipment and software. This enhanced facility should result in
operating efficiencies in the near future and provide for distribution
capability for a total of at least 400 stores.
"In fiscal 2000, we will continue our 20 percent plus store growth
strategy by opening between 30 and 35 stores."
In order to support the store growth and the share repurchase program, the
Company's current bank group has approved a $10 million increase in the line
of credit. Documentation of the increase is expected to be completed within a
week. The total availability for cash advances and letters of credit under
the line of credit will then be $55 million.
During the fourth quarter of 1999, the Company repurchased 291,900 shares
of its common stock for $2.4 million as part of its previously announced
$10 million share repurchase program. There were 13.1 million common shares
outstanding at the end of the year. The Company intends to continue to
repurchase shares from time to time.
The Company also announced that June 8, 2000 has been set as the date for
the Annual Meeting of Shareholders and April 14, 2000 has been set as the
Shareholder record date.
Mr. Lemond concluded, "Beginning with the last week of February and
continuing through yesterday, we have seen a much stronger sales trend due
primarily to more spring-like weather patterns. The early receipt of spring
merchandise in our stores combined with the obvious customer approval of our
merchandise mix leaves us optimistic about the up-coming spring season."
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 1998.
Shoe Carnival is a chain of 141 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, Ind., 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)
13 Weeks Ended 52 Weeks Ended
Jan. 29, Jan. 30, Jan. 29, Jan. 30,
2000 1999 2000 1999
Net sales $84,389 $69,917 $339,929 $280,157
Cost of sales (including
buying, distribution
and occupancy costs) 61,964 51,342 238,097 196,141
Gross profit 22,425 18,575 101,832 84,016
Selling, general and
administrative expenses 21,292 17,337 80,888 66,464
Operating income 1,133 1,238 20,944 17,552
Interest expense 433 121 1,010 507
Income before income taxes 700 1,117 19,934 17,045
Income taxes 280 447 7,973 6,818
Net income $420 $670 $11,961 $10,227
Net income per share:
Basic $0.03 $0.05 $.90 $0.78
Diluted $0.03 $0.05 $.88 $0.76
Average shares outstanding:
Basic 13,303 13,175 13,284 13,150
Diluted 13,478 13,420 13,578 13,429
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
January 29, January 30,
2000 1999
Current Assets:
Cash and cash equivalents $1,675 $1,944
Accounts receivable 694 567
Merchandise inventories 104,730 75,390
Deferred income tax benefit 876 782
Other 1,168 1,222
Total Current Assets 109,143 79,905
Property and equipment-net 53,710 40,856
TOTAL ASSETS $162,853 $120,761
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $33,817 $25,698
Accrued and other liabilities 6,266 5,757
Current portion of long-term debt 714 782
Total Current Liabilities 40,797 32,237
Long-term debt 22,338 1,361
Deferred lease incentives 3,077 2,424
Deferred income taxes 3,296 2,072
TOTAL LIABILITIES 69,508 38,094
SHAREHOLDERS' EQUITY 93,345 82,667
TOTAL LIABILITIES AND SHAREHOLDERS'EQUITY $162,853 $120,761
SOURCE Shoe Carnival, Inc.
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Related links:
http://www.shoecarnival.com
CONTACT:
Mark L. Lemond, President and Chief Executive
Officer, or W. Kerry Jackson, Vice President, Chief Financial
Officer and Treasurer, both of Shoe Carnival, Inc., 812-867-4034
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