EVANSVILLE, Ind., Aug. 15 /PRNewswire-FirstCall/ -- Shoe Carnival, Inc.
(Nasdaq: SCVL) a leading retailer of value-priced footwear and accessories,
today announced record earnings and sales for the second quarter ended August
3, 2002. Net income for the second quarter of fiscal 2002 increased 42
percent to $3.6 million compared with net income of $2.5 million in the second
quarter of fiscal 2001. Diluted earnings per share increased 35 percent to
$.27 per share from $.20 per share last year.
Net sales for the second quarter of 2002 increased 9 percent to a second
quarter Company record of $124.6 million from $114.0 million last year.
Comparable store sales decreased by 0.5 percent for the 13-week period.
Gross profit margin for the second quarter of 2002 increased to
28.7 percent from 28.3 percent last year. Selling, general and administrative
expenses, as a percentage of sales, decreased to 24.0 percent from
24.2 percent in the second quarter of 2001. New store pre-opening costs
incurred in the second quarter of 2002 were $663,000, or 0.5 percent of sales,
compared with $667,000, or 0.6 percent of sales last year.
Interest costs decreased to $200,000 in the second quarter from $626,000
last year due to a significant reduction in average borrowings and a lower
effective interest rate. Long-term debt of $23.4 million was outstanding at
the end of the second quarter of 2002 compared with $45.8 million of long-term
debt outstanding at the end of the second quarter last year.
Mark Lemond, president and chief executive officer stated, "We are
definitely pleased with our second quarter results during what has been a
difficult retailing environment. Our plan of reducing inventory levels,
especially in our women's non-athletic product, led to substantially higher
gross profit margins for the second quarter and first half of 2002. This
margin improvement, combined with tight expense controls and lower interest
costs, resulted in an increase in net income of 42 percent for the second
quarter and 36 percent for the first half.
"Looking forward, our fundamentals are strong. Our inventories are in
great shape as we enter the Fall season. Store-for-store inventories are below
last year's levels with a higher mix of recent Fall receipts than last year.
We have also strengthened our balance sheet over the past twelve months by
significantly reducing our long-term debt; thereby, positioning us to be able
to accelerate our store expansion in the back half of this year and into next
year."
Net income for the first half of 2002 was $9.2 million, or $ .71 per
diluted share, an increase of 36 percent over net income of $6.8 million, or
$.55 per diluted share, last year. Net sales increased 10 percent to
$254.0 million for the first six months from sales of $231.2 million last
year. Comparable store sales increased 0.4 percent for the six-month period.
Gross profit margin for the first six months of 2002 increased to 29.5 percent
from 29.1 percent last year. Selling, general and administrative expenses, as
a percentage of sales, decreased to 23.5 percent in the first six months of
2002 from 23.8 percent last year. Pre-opening costs for first six months of
2002 were $1.1 million, or 0.4 percent of sales, as compared to $854,000, or
0.4 percent of sales, in the first half of 2001. Interest expense incurred in
the first half of 2002 decreased to $464,000 from $1.4 million in the same
period in 2001.
During the first half of 2002, 15 new stores were opened, nine of which
were opened in the second quarter. An additional 10 stores will be opened in
the second half of 2002 bringing the total new stores to 25 for the year.
Currently, the company plans to open approximately 40 new stores in 2003.
The nine stores opened during the second quarter included locations in:
City Market/Stores
Rock Hill, SC Charlotte, NC, 5
Elyria, OH Cleveland, OH, 3
Cuyahoga Falls, OH Cleveland, OH, 3
Medina, OH Cleveland, OH, 3
Portage, MI Grand Rapids, MI, 6
McAllen, TX McAllen, TX, 1
Harvey, LA New Orleans, LA, 2
Casselberry, FL Orlando, FL, 3
Mishawaka, IN South Bend, IN, 2
Today, at 2:00 p.m. Eastern time, the Company will host a conference call
to discuss the second 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 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; 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 197 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 26 Weeks Ended
August 3, August 4, August 3, August 4,
2002 2001 2002 2001
Net sales $124,626 $113,986 $254,010 $231,172
Cost of sales (including
buying, distribution and
occupancy costs) 88,865 81,732 179,167 163,962
Gross profit 35,761 32,254 74,843 67,210
Selling, general and
administrative expenses 29,873 27,625 59,634 54,912
Operating income 5,888 4,629 15,209 12,298
Interest expense 200 626 464 1,431
Income before income taxes 5,688 4,003 14,745 10,867
Income taxes 2,133 1,501 5,529 4,075
Net income $3,555 $2,502 $9,216 $6,792
Net income per share:
Basic $.28 $.21 $.74 $.57
Diluted $.27 $.20 $.71 $.55
Average shares outstanding:
Basic 12,566 12,066 12,518 12,018
Diluted 13,065 12,467 12,995 12,389
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
August 3, February 2, August 4,
2002 2002 2001
Current Assets:
Cash and cash equivalents $6,316 $5,459 $6,748
Accounts receivable 954 1,298 714
Merchandise inventories 146,615 135,648 142,528
Deferred income tax benefit 316 449 687
Other 3,275 1,816 2,871
Total Current Assets 157,476 144,670 153,548
Property and equipment-net 62,016 57,249 59,233
TOTAL ASSETS $219,492 $201,919 $212,781
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $49,432 $42,108 $42,535
Accrued and other liabilities 12,970 10,452 11,092
Current portion of long-term debt 586 834 946
Total Current Liabilities 62,988 53,394 54,573
Long-term debt 23,447 27,672 45,798
Deferred lease incentives 4,513 4,197 4,229
Deferred income taxes 4,041 4,223 3,660
Other 511 331 192
TOTAL LIABILITIES 95,500 89,817 108,452
SHAREHOLDERS' EQUITY 123,992 112,102 104,329
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $219,492 $201,919 $212,781
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Twenty-six Twenty-six
Weeks Ended Weeks Ended
August 3, 2002 August 4, 2001
Cash Flows From Operating Activities
Net income $9,216 $6,792
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 5,970 5,414
Loss on retirement of assets 6 127
Deferred income taxes (49) (685)
Other (21) (130)
Changes in operating assets and liabilities:
Merchandise inventories (10,967) (19,493)
Accounts receivable 344 353
Accounts payable and accrued liabilities 9,842 12,719
Other (1,459) (1,455)
Net cash provided by operating activities 12,882 3,642
Cash Flows From Investing Activities
Purchases of property and equipment (10,693) (6,735)
Lease incentives 514 831
Net cash used in investing activities (10,179) (5,904)
Cash Flows From Financing Activities
Net (payments) borrowings under line
of credit (4,000) 5,000
Payments on long-term debt (520) (441)
Proceeds from issuance of stock 2,674 1,224
Net cash (used in) provided by
financing activities (1,846) 5,783
Net increase in cash and cash equivalents 857 3,521
Cash and cash equivalents at beginning of period 5,459 3,227
Cash and Cash Equivalents at end of period $6,316 $6,748
SOURCE Shoe Carnival, Inc.
 back to top
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, +1-812-867-4034, both of Shoe
Carnival, Inc.
|
