EVANSVILLE, Ind., Nov. 16 /PRNewswire/ -- Shoe Carnival, Inc.
(Nasdaq: SCVL) a leading retailer of value-priced footwear and accessories,
today announced record sales and diluted earnings per share for the third
quarter ended October 28, 2000. Earnings per share on a diluted basis
increased to an all-time Company record of $.32 per share surpassing the prior
Company record of $.31 per share set in last year's third quarter.
Net earnings in the third quarter of fiscal 2000 were $3.8 million
compared with $4.2 million in the third quarter of fiscal 1999. The reduction
in net income was attributable to the reduction in the gross profit margin and
higher interest costs. In August 2000, the Company completed a $10 million
share repurchase program that began in January 2000. Total shares repurchased
under the program were 1,445,350.
Net sales for the third quarter increased 21.7 percent to $114.7 million
from $94.2 million last year. Comparable store sales increased by 4.9 percent
for the 13-week period.
Gross profit margins, as a percentage of sales, were 29.6 percent in the
third quarter compared to 31.3 percent last year. This decline was due
primarily to a higher level of clearance sales in August and September. Gross
margins, however, were higher in October than last year on the strength of the
new Fall product.
Selling, general and administrative expenses, as a percentage of sales,
decreased to 23.4 percent from 23.5 percent in the third quarter of 1999.
Interest costs rose to $782,000 in the third quarter from $237,000 last year
due to higher interest rates, increased borrowings associated with the
previously announced $10 million share repurchase program and increased
borrowings used to fund the store growth.
Net earnings for the first nine months of 2000 were $9 million, or $.71
per share on a diluted basis, compared with net earnings of $11.5 million, or
$.85 per share on a diluted basis, last year. Net sales increased 19.6
percent to $305.7 million for the first nine months from sales of $255.5
million last year. Comparable store sales increased 1.4 percent for the nine
month period. As a percentage of sales, gross profit margins for the first
nine months of 2000 were 29.3 percent compared with 31.1 percent for the first
nine months last year. Selling, general and administrative expenses, as a
percent of sales, increased to 23.7 percent for the first nine months of 2000
from 23.3 percent for the first nine months of 1999.
Mark Lemond, president and chief executive officer stated, "We entered the
third quarter with conservative expectations given the difficult retail
environment and the lack of consumer response to the spring and summer
merchandise as seen in the first half of the year. Our buyers did a fantastic
job identifying the shift in consumer preferences to fashion athletics and
women's boots and buying into that trend to drive our sales. The 4.9 percent
comparable store sales increase was the highest third quarter comparable store
sales increase in the past seven years. The promotional retail environment
and the clearance of the spring and summer product resulted in lower gross
margins in the months of August and September. However, we realized strong
gross margins on our new Fall product, and consequently, our gross margins in
October were well above October of last year.
"Due to the solid sales and margin trend in women's fashion footwear and
fashion athletic product we remain comfortable with the First Call consensus
estimate of $.04 per diluted share for the fourth quarter."
The Company opened nine stores and closed one store in the third quarter
and ended the quarter with 162 stores. By the end of this week, 6 new stores
will have opened in November and, after closing four stores in January 2001 at
the conclusion of their leases, the Company expects to end the year with 164
stores consisting of 1.9 million square feet of retail space. As previously
announced, due to the current uncertain economic climate, the Company has
elected to be more conservative in its store expansion program in the year
2001. Currently, fifteen new stores are anticipated to open in fiscal 2001.
However, if economic conditions warrant it, additional stores openings may be
added in the second half of next year.
The Company also announced a $15 million increase in its unsecured line of
credit and an extension of the expiration date to March 31, 2003. With this
increase, $70 million is available under the line of credit for cash advances
and letters of credit. Additionally, LaSalle Bank National Association became
a new participant in the credit facility. The Bank group continues to
demonstrate support of the Company's business model and management team with
the expansion of the line of credit on an unsecured basis.
Today, at 2:00 p.m. ET, the Company will host a conference call to discuss
the third 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.
The fifteen stores opened during the third and fourth quarters included
locations in:
City Market/Stores
Killeen, TX Waco, 2
Champaign, IL Springfield, 2
Alexandria, LA Alexandria, 1
Tuscaloosa, AL Birmingham, 2
Decatur, AL Huntsville, 3
Toledo, OH Toledo, 1
St. Joseph, MO St. Joseph, 1
Rockford, IL Rockford, 1
Owasso, OK Tulsa
Tulsa, OK (2) Tulsa, 3
Charleston, SC Charleston, 2
Hanover, MD Baltimore, 1
Mooresville, NC Charlotte
Charlotte, NC Charlotte, 4
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 STATEMENTS OF INCOME
(In thousands, except per share)
(Unaudited)
13 Weeks Ended 39 Weeks Ended
October 28, October 30, October 28, October 30,
2000 1999 2000 1999
Net sales $114,710 $94,223 $305,726 $255,540
Cost of sales (including
buying, distribution
and occupancy costs) 80,781 64,768 216,213 176,133
Gross profit 33,929 29,455 89,513 79,407
Selling, general and
administrative
expenses 26,858 22,164 72,537 59,596
Operating income 7,071 7,291 16,976 19,811
Interest expense 782 237 2,130 577
Income before income taxes 6,289 7,054 14,846 19,234
Income taxes 2,484 2,821 5,864 7,693
Net income $3,805 $4,233 $8,982 $11,541
Net income per share:
Basic $.32 $.32 $.72 $.87
Diluted $.32 $.31 $.71 $.85
Average shares outstanding:
Basic 11,977 13,333 12,498 13,277
Diluted 11,989 13,564 12,598 13,619
SHOE CARNIVAL, INC.
CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
October 28, January 29, October 30,
2000 2000 1999
Current Assets:
Cash and cash equivalents $3,071 $1,675 $2,582
Accounts receivable 1,006 694 1,159
Merchandise inventories 128,770 104,730 101,983
Deferred income tax benefit 613 876 546
Other 1,788 1,168 1,287
Total Current Assets 135,248 109,143 107,557
Property and equipment-net 58,458 53,710 52,628
TOTAL ASSETS $193,706 $162,853 $160,185
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $34,949 $33,817 $31,121
Accrued and other liabilities 10,083 6,266 7,650
Current portion of
long-term debt 813 714 715
Total Current Liabilities 45,845 40,797 39,486
Long-term debt 45,142 22,338 20,003
Deferred lease incentives 3,243 3,077 3,148
Deferred income taxes 3,946 3,296 2,245
TOTAL LIABILITIES 98,176 69,508 64,882
SHAREHOLDERS' EQUITY 95,530 93,345 95,303
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $193,706 $162,853 $160,185
SOURCE Shoe Carnival, Inc.
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Related links:
http://www.shoecarnival.com
Company News On-Call:
http://www.prnewswire.com/comp/127183.html or fax,
800-758-5804, ext. 127183
CONTACT:
Mark L. Lemond, President and Chief Executive
Officer, or W. Kerry Jackson, Vice President, Chief Financial
Officer and Treasurer of Shoe Carnival, Inc., 812-867-4034
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