Stage Stores, Inc. (NYSE: SSI) today reported results for the
second quarter ended August 3, 2019. For the second quarter,
comparable sales increased 1.8%. Net loss was $23.9 million, and
adjusted EBITDA was a loss of $0.1 million.
“Second quarter results reflect a significant milestone in the
implementation of our 2019 and long-term strategies,” commented
Michael Glazer, Chief Executive Officer. “Our second quarter
comparable sales increase reflects a 150 basis point benefit from
off-price conversions as well as stabilization of our women’s
apparel business. We were excited to see that total comparable
sales growth was driven by increases in both average transaction
value and number of transactions. Additionally, our liquidity
improved more than $10 million from the end of the first quarter,
and we continue to expect positive cash flow for the full year.
We are pleased with the continued momentum in August following
the 500 basis point improvement in comparable store sales in the
second quarter from the first quarter. In fact, comparable sales
are up mid-single digits for the first two weeks of the third
quarter, which further validates our pivot from department stores
to off-price.”
Michael Glazer continued, “We now expect adjusted EBITDA of $20
million to $25 million compared to the $10 million to $15 million
range that we previously expected. This is based on our accelerated
conversion schedule and significant SG&A benefits now expected
to be realized in the fall of 2019 rather than in 2020, as
originally anticipated. Our current guidance also reflects revised
comparable sales outlook of +1% to +3%, based on our spring season
performance. With positive comparable sales, improved liquidity,
increased earnings expectations and the recently announced
acceleration of our off-price conversion strategy, we believe that
the future is bright for Stage Stores and we look forward to
executing in the third quarter, the holiday season, and
beyond.”
Second Quarter
Results
Second quarter 2019 results compared to second quarter 2018
results were as follows:
- Net sales were $368 million compared to $369 million
- Comparable sales increased 1.8% for total company, with
off-price conversions benefiting comparable sales by 150 basis
points
- Net loss was $23.9 million compared to net loss of $16.9
million
- Loss per share was $0.83 compared to loss per share of
$0.60
- Adjusted EBITDA was $(0.1) million compared to adjusted EBITDA
of $2.0 million
- Opened one new Gordmans off-price store and converted 35
department stores to Gordmans off-price, bringing the year to date
conversion total to 72
2019 Guidance
For 2019, the company provided the following annual
guidance:
Lease
Accounting
On February 3, 2019, we adopted ASU No. 2016-02, Leases, which
resulted in a significant increase in our reported assets and
liabilities associated with our leases. The recognition of rent
expense and payments associated with these lease assets and
liabilities will not result in material differences to operating
income or cash flows compared to the previous accounting rules. The
adoption of the new accounting standard will not impact our credit
facility covenants. The company applied the new standard
prospectively with a cumulative effect charge of $5.2 million, net
of tax, to the opening accumulated deficit balance in the first
quarter of fiscal 2019.
Conference Call / Webcast
Information
The company will post a pre-recorded conference call today at
8:30 a.m. Eastern Time to discuss its results and guidance.
Interested parties may access the company’s call by dialing
866-393-5631 and providing conference ID 3293146. Alternatively,
interested parties may listen to an audio webcast of the call
through the Investor Relations section of the company’s website
(corporate.stage.com) under the
“Webcasts” caption. A replay of the call will be available online
through November 4, 2019.
About Stage
Stores
Stage Stores, Inc. is a leading retailer of trend-right,
name-brand values for apparel, accessories, cosmetics, footwear and
home goods. As of August 22, 2019, the company operates in 42
states through 645 BEALLS, GOODY'S, PALAIS ROYAL, PEEBLES and STAGE
specialty department stores, and 141 GORDMANS off-price stores, as
well as an e-commerce website at www.stage.com. For more information about Stage
Stores, visit the company’s website at corporate.stage.com.
Use of Non-GAAP /
Adjusted Financial Measures
The company reports its financial results in accordance with
generally accepted accounting principles (GAAP). However,
management believes that certain non-GAAP financial measures help
to facilitate comparisons of company operating performance across
periods. This release includes earnings (loss) before interest,
taxes, depreciation and amortization (“EBITDA”) and adjusted
EBITDA, which are non-GAAP financial measures. A reconciliation of
non-GAAP financial measures to the most comparable GAAP financial
measures is provided in a table included with this release.
Caution Concerning
Forward-Looking Statements
Certain statements in this release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, and such statements are intended to qualify for
the protection of the safe harbor provided by the Act. The words
“anticipate,” “estimate,” “expect,” “objective,” “goal,” “project,”
“intend,” “plan,” “believe,” “will,” “should,” “may,” “target,”
“forecast,” “guidance,” “outlook” and similar expressions generally
identify forward-looking statements. Similarly, descriptions of the
company’s objectives, strategies, plans, goals or targets are also
forward-looking statements. Forward-looking statements relate to
the expectations of management as to future occurrences and trends,
including statements expressing optimism or pessimism about future
operating results or events and projected sales, earnings, capital
expenditures and business strategy. Forward-looking statements are
based upon a number of assumptions concerning future conditions
that may ultimately prove to be inaccurate. Forward-looking
statements are based upon management’s then-current views and
assumptions regarding future events and operating performance.
Although management believes the expectations expressed in
forward-looking statements are based on reasonable assumptions
within the bounds of its knowledge, forward-looking statements
involve risks, uncertainties and other factors which may materially
affect the company’s business, financial condition, results of
operations or liquidity.
Forward-looking statements are not guarantees of future
performance and actual results may differ materially from those
discussed in the forward-looking statements as a result of various
factors, including, but not limited to, economic conditions, cost
and availability of goods, inability to successfully execute
strategic initiatives, competitive pressures, economic pressures on
the company and its customers, freight costs, the risks discussed
in the Risk Factors section of the company’s most recent Annual
Report on Form 10-K as filed with the Securities and Exchange
Commission (“SEC”), and other factors discussed from time to time
in the company’s other SEC filings. This release should be read in
conjunction with such filings, and you should consider all of such
risks, uncertainties and other factors carefully in evaluating
forward-looking statements.
You are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date thereof. The company
undertakes no obligation to publicly update forward-looking
statements, whether as a result of new information, future events
or otherwise. You are advised, however, to consult any further
disclosures the company makes on related subjects in its public
announcements and SEC filings.
Stage Stores, Inc.
Condensed Consolidated
Statements of Operations
(in thousands, except per share
data)
(Unaudited)
Three Months Ended
August 3, 2019
August 4, 2018
Amount
% to Sales (a)
Amount
% to Sales (a)
Net sales
$
367,865
100.0
%
$
369,294
100.0
%
Credit income
13,988
3.8
%
14,305
3.9
%
Total revenues
381,853
103.8
%
383,599
103.9
%
Cost of sales and related buying,
occupancy and distribution expenses
295,204
80.2
%
286,807
77.7
%
Selling, general and administrative
expenses
106,310
28.9
%
110,914
30.0
%
Interest expense
4,123
1.1
%
2,650
0.7
%
Loss before income tax
(23,784
)
(6.5
)%
(16,772
)
(4.5
)%
Income tax expense
150
—
%
150
—
%
Net loss
$
(23,934
)
(6.5
)%
$
(16,922
)
(4.6
)%
Loss per share:
Basic
$
(0.83
)
$
(0.60
)
Diluted
$
(0.83
)
$
(0.60
)
Weighted average shares outstanding:
Basic
28,791
28,152
Diluted
28,791
28,152
(a) Percentages may not foot due to
rounding.
Stage Stores, Inc.
Condensed Consolidated
Statements of Operations
(in thousands, except per share
data)
(Unaudited)
Six Months Ended
August 3, 2019
August 4, 2018
Amount
% to Sales (a)
Amount
% to Sales (a)
Net sales
$
695,586
100.0
%
$
713,523
100.0
%
Credit income
27,096
3.9
%
29,819
4.2
%
Total revenues
722,682
103.9
%
743,342
104.2
%
Cost of sales and related buying,
occupancy and distribution expenses
572,803
82.3
%
568,548
79.7
%
Selling, general and administrative
expenses
212,886
30.6
%
218,191
30.6
%
Interest expense
8,117
1.2
%
4,903
0.7
%
Loss before income tax
(71,124
)
(10.2
)%
(48,300
)
(6.8
)%
Income tax expense
300
—
%
300
—
%
Net loss
$
(71,424
)
(10.3
)%
$
(48,600
)
(6.8
)%
Loss per share:
Basic
$
(2.50
)
$
(1.74
)
Diluted
$
(2.50
)
$
(1.74
)
Weighted average shares outstanding:
Basic
28,616
27,959
Diluted
28,616
27,959
(a) Percentages may not foot due to
rounding.
Stage Stores, Inc.
Condensed Consolidated Balance
Sheets
(in thousands, except par
value)
(Unaudited)
August 3, 2019
February 2, 2019
August 4, 2018
ASSETS
Cash and cash equivalents
$
25,418
$
15,830
$
26,573
Merchandise inventories, net
499,001
424,555
476,883
Prepaid expenses and other current
assets
50,138
52,518
48,525
Total current assets
574,557
492,903
551,981
Property, equipment and leasehold
improvements, net
201,928
224,803
236,151
Operating lease assets
321,982
—
—
Intangible assets
2,225
2,225
17,135
Other non-current assets, net
21,354
24,230
24,409
Total assets
$
1,122,046
$
744,161
$
829,676
LIABILITIES
AND STOCKHOLDERS' EQUITY
Accounts payable
$
155,865
$
106,825
$
122,680
Current portion of debt obligations
5,000
4,812
3,542
Current portion of operating lease
liabilities
74,906
—
—
Accrued expenses and other current
liabilities
76,455
65,715
73,506
Total current liabilities
312,226
177,352
199,728
Long-term debt obligations
318,775
250,294
268,682
Long-term operating lease liabilities
279,009
—
—
Other long-term liabilities
32,213
61,990
65,431
Total liabilities
942,223
489,636
533,841
Commitments and contingencies
Common stock, par value $0.01, 100,000
shares authorized, 34,052, 33,469 and 33,418 shares issued,
respectively
341
335
334
Additional paid-in capital
425,033
423,535
421,621
Treasury stock, at cost, 5,175 shares,
respectively
(43,546
)
(43,579
)
(43,388
)
Accumulated other comprehensive loss
(5,485
)
(5,857
)
(4,823
)
Accumulated deficit
(196,520
)
(119,909
)
(77,909
)
Total stockholders' equity
179,823
254,525
295,835
Total liabilities and stockholders'
equity
$
1,122,046
$
744,161
$
829,676
Stage Stores, Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(Unaudited)
Six Months Ended
August 3, 2019
August 4, 2018
Cash flows from operating activities:
Net loss
$
(71,424
)
$
(48,600
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization of
long-lived assets
29,872
30,147
Impairment of long-lived assets
1,615
1,070
(Gain) loss on retirements of property,
equipment and leasehold improvements
(678
)
17
Non-cash operating lease expense
34,919
—
Stock-based compensation expense
1,585
3,049
Dividends charged to compensation
expense
21
—
Amortization of debt issuance costs
341
148
Deferred compensation obligation
(33
)
90
Amortization of employee benefit related
costs
372
354
Construction allowances from landlords
3,553
757
Other changes in operating assets and
liabilities:
Increase in merchandise inventories
(74,446
)
(38,506
)
Decrease in other assets
8,464
2,412
Decrease in operating lease
liabilities
(37,601
)
—
Increase (decrease) in accounts payable
and other liabilities
61,788
(19,958
)
Net cash used in operating activities
(41,652
)
(69,020
)
Cash flows from investing activities:
Additions to property, equipment and
leasehold improvements
(18,610
)
(12,822
)
Proceeds from insurance and disposal of
assets
678
1,802
Net cash used in investing activities
(17,932
)
(11,020
)
Cash flows from financing activities:
Proceeds from revolving credit facility
borrowings
257,426
298,509
Payments of revolving credit facility
borrowings
(186,445
)
(233,148
)
Proceeds from long-term debt
obligation
—
25,000
Payments of long-term debt obligations
(1,758
)
(1,472
)
Payments of debt issuance costs
(36
)
(354
)
Payments for stock related
compensation
(15
)
(260
)
Cash dividends paid
—
(2,912
)
Net cash provided by financing
activities
69,172
85,363
Net increase in cash and cash
equivalents
9,588
5,323
Cash and cash equivalents:
Beginning of period
15,830
21,250
End of period
$
25,418
$
26,573
Stage Stores, Inc.
Reconciliation of Non-GAAP
Financial Measures
(Unaudited)
The following tables reconcile earnings
(loss) before interest, taxes, depreciation and amortization
(“EBITDA”) and adjusted EBITDA, non-GAAP financial measures, to the
most directly comparable GAAP measure, net loss (amounts in
thousands):
Three Months Ended
Six Months Ended
August 3, 2019
August 4, 2018
August 3, 2019
August 4, 2018
Net loss (GAAP)
$
(23,934
)
$
(16,922
)
$
(71,424
)
$
(48,600
)
Interest expense
4,123
2,650
8,117
4,903
Income tax expense
150
150
300
300
Depreciation and amortization
14,528
14,997
29,872
30,147
EBITDA (non-GAAP)
(5,133
)
875
(33,135
)
(13,250
)
Impairment of long-lived assets
1,096
1,070
1,615
1,070
Severance
1,467
72
2,503
119
Pre-opening expenses
1,295
—
2,897
—
Store closing services
1,178
—
1,178
—
Adjusted EBITDA (non-GAAP)
$
(97
)
$
2,017
$
(24,942
)
$
(12,061
)
Fiscal 2019 guidance range (amounts in millions):
Fiscal 2019
Low
High
Net loss (GAAP)
$
(65
)
$
(60
)
Interest expense
16
16
Income tax expense
1
1
Depreciation and amortization
58
58
EBITDA (non-GAAP)
10
15
Impairments, severance, pre-opening and
store closing services
10
10
Adjusted EBITDA (non-GAAP)
$
20
$
25
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190822005122/en/
Jean Fontana 646-277-1214 (Jean.Fontana@icrinc.com)
Grafico Azioni Stage Stores (NYSE:SSI)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Stage Stores (NYSE:SSI)
Storico
Da Gen 2024 a Gen 2025
