EVANSVILLE, Ind., May 16 /PRNewswire-FirstCall/ -- Shoe Carnival, Inc.
(Nasdaq: SCVL) a leading retailer of value-priced footwear and accessories,
today announced record earnings and sales for the first quarter ended May 4,
2002. Net income for the first quarter of fiscal 2002 increased 32 percent to
$5.7 million compared with net income of $4.3 million in the first quarter of
fiscal 2001. Diluted earnings per share increased 26 percent to $.44 per
share from $.35 per share last year. These results represent the highest
quarterly sales, earnings and per share earnings achieved in any quarter in
the Company's history.
Net sales for the first quarter of 2002 increased 10 percent to
$129.4 million from $117.2 million last year. Comparable store sales
increased by 1.1 percent for the 13-week period.
Gross profit margin for the first quarter of 2002 increased to
30.2 percent of sales from 29.8 percent last year. Selling, general and
administrative expenses, as a percentage of sales, decreased to 23.0 percent
from 23.3 percent last year. New store pre-opening costs incurred in the
first quarter were $432,000, or 0.3 percent of sales, compared with $187,000,
or 0.2 percent of sales last year.
Interest costs decreased to $264,000 in the first quarter from $805,000
last year due to a 45 percent reduction in average borrowings and a lower
effective interest rate. The effective income tax rate for both quarters was
37.5 percent.
Mark Lemond, president and chief executive officer stated, "We are very
pleased with our record setting performance in the first quarter. This
spring, our key merchandise strategy centered on lowering inventory levels of
seasonal fashion product in order to increase the overall gross profit margin.
While we recorded our seventh consecutive quarter of comparable store sales
increases, our record earnings in the first quarter were fueled primarily by
this improvement in gross margins. Additionally, SG&A costs were leveraged
against a higher sales base, despite an increase in new store pre-opening
costs due to our accelerated expansion.
"Our gross margin initiative will continue for the remainder of 2002.
Excluding in-transit goods, total inventories are down about six percent from
last year on a per-store basis. This allows us substantial merchandising
flexibility as we enter the warmer months of the spring season.
"With the improved operating performance, we were able to significantly
strengthen our balance sheet by reducing debt approximately $11 million.
Consequently, long-term debt to total capital was 12 percent at the end of the
first quarter compared to 29 percent a year ago."
The Company opened six stores during the first quarter. The locations
include:
City Market/Stores
Durham, NC Raleigh, 4
Louisville, KY Louisville, 6
Virginia Beach, VA Norfolk, 2
Greendale, WI Milwaukee, 1
Norridge, IL Chicago, 14
New Orleans, LA New Orleans, 1
The Company expects to open seven stores in the second quarter and 12
stores in the third and fourth quarters combined for a total of 25 new stores
in fiscal 2002.
Today, at 2:00 p.m. Eastern time, the Company will host a conference call
to discuss the first 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 press release contains forward-looking statements that involve a
number of risks and uncertainties. A number of factors could cause our actual
results, performance, achievements or industry results to be materially
different from any future results, performance or achievements expressed or
implied by these forward-looking statements. These factors include, but are
not limited to: general economic conditions in the areas of the United States
in which our stores are located; changes in the overall retail environment and
more specifically in the apparel and footwear retail sectors; the potential
impact of national and international security concerns on the retail
environment; changes in our relationships with key suppliers; the impact of
competition and pricing; changes in weather patterns, consumer buying trends
and our ability to identify and respond to emerging fashion trends; risks
associated with the seasonality of the retail industry; the availability of
desirable store locations at acceptable lease terms and our ability to open
new stores in a timely manner; higher than anticipated costs associated with
the closing of underperforming stores; the inability of manufacturers to
deliver products in a timely manner; and changes in the trade relationships
between the United States and countries which are the major manufacturers of
footwear.
In addition, these forward-looking statements necessarily depend upon
assumptions, estimates and dates that may be incorrect or imprecise and
involve known and unknown risks, uncertainties and other factors. Accordingly,
any forward-looking statements included in this press release do not purport
to be predictions of future events or circumstances and may not be realized.
Forward-looking statements can be identified by, among other things, the use
of forward-looking terms such as "believes," "expects," "may," "will,"
"should," "seeks," "pro forma," "anticipates," "intends" or the negative of
any of these terms, or comparable terminology, or by discussions of strategy
or intentions. Given these uncertainties, we caution investors not to place
undue reliance on these forward-looking statements, which speak only as of the
date hereof. We disclaim any obligation to update any of these factors or to
publicly announce any revisions to the forward-looking statements contained in
this press release to reflect future events or developments.
Shoe Carnival is a chain of 188 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 Ended
May 4, May 5,
2002 2001
Net sales $129,384 $117,186
Cost of sales (including buying,
distribution and occupancy costs) 90,302 82,230
Gross profit 39,082 34,956
Selling, general and administrative
expenses 29,761 27,287
Operating income 9,321 7,669
Interest expense 264 805
Income before income taxes 9,057 6,864
Income taxes 3,396 2,574
Net income $5,661 $4,290
Net income per share:
Basic $.45 $.36
Diluted $.44 $.35
Average shares outstanding:
Basic 12,471 11,971
Diluted 12,932 12,303
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
May 4, February 2, May 5,
2002 2002 2001
Current Assets:
Cash and cash equivalents $3,616 $5,459 $3,677
Accounts receivable 1,392 1,298 706
Merchandise inventories 129,783 135,648 128,158
Deferred income tax benefit 483 449 755
Other 1,584 1,816 3,495
Total Current Assets 136,858 144,670 136,791
Property and equipment-net 59,607 57,249 57,636
TOTAL ASSETS $196,465 $201,919 $194,427
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $37,787 $42,108 $31,843
Accrued and other liabilities 13,177 10,452 11,665
Current portion of long-term
debt 725 834 913
Total Current Liabilities 51,689 53,394 44,421
Long-term debt 16,269 27,672 40,976
Deferred lease incentives 4,096 4,197 4,035
Deferred income taxes 4,078 4,223 4,090
Other 439 331 130
TOTAL LIABILITIES 76,571 89,817 93,652
SHAREHOLDERS' EQUITY 119,894 112,102 100,775
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $196,465 $201,919 $194,427
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Thirteen Thirteen
Weeks Ended Weeks Ended
May 4, 2002 May 5, 2001
Cash Flows From Operating Activities
Net income $5,661 $4,290
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 2,882 2,670
Loss on retirement of assets 6 126
Deferred income taxes (179) (323)
Other 6 (59)
Changes in operating assets and liabilities:
Merchandise inventories 5,866 (5,123)
Accounts receivable (94) 360
Accounts payable and accrued liabilities (1,595) 2,582
Other 231 (2,061)
Net cash provided by operating activities 12,784 2,462
Cash Flows From Investing Activities
Purchases of property and equipment (5,198) (2,476)
Lease incentives 0 507
Net cash used in investing activities (5,198) (1,969)
Cash Flows From Financing Activities
Net payments under line of credit (11,300) 0
Payments on long-term debt (260) (215)
Proceeds from issuance of stock 2,131 172
Net cash used in financing activities (9,429) (43)
Net (decrease) increase in cash and cash
equivalents (1,843) 450
Cash and cash equivalents at beginning of period 5,459 3,227
Cash and Cash Equivalents at end of period $3,616 $3,677
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, Senior Vice President, Chief
Financial Officer and Treasurer of Shoe Carnival, Inc.,
+1-812-867-4034
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