Christopher & Banks Corporation Reports Record First Quarter Results; First Quarter Net Sales Increased 35 % and Net Income Increased 49%.Business Editors Christopher & Banks Corporation (Nasdaq:CHBS) today reported record results for its first quarter ended June June: see month. 1, 2002. For the first quarter, net income increased 49% to $9.8 million, or $0.37 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $6.6 million, or $0.25 per diluted share, in the prior year's period. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first quarter increased 35% to $77.8 million from $57.6 million last year, while same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of increased 10% during the quarter. The Company opened 45 new stores in the first quarter and operated 391 stores at June 1, 2002 compared to 315 stores at June 2, 2001. Bill Prange, Chairman and Chief Executive Officer of Christopher & Banks commented, "We are extremely pleased with our 49% increase in first quarter net income. This increase significantly exceeded our internal plan and was driven by both our strong sales growth and our ability to increase gross margin by 220 basis points. We are particularly happy with this performance given the challenging retail environment. Contributing to our gross margin expansion was improved pricing from our suppliers combined with lower markdowns due to stronger sales of merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain at regular price. "During the quarter we opened 45 new stores, including 25 Christopher & Banks stores and 20 C.J. Banks stores. The initial performance of these new locations has been strong, with sales tracking above our plans. We are pleased with the progress of our retail expansion program and remain on track to open a total of 90 new stores during the current fiscal year." Mr. Prange concluded, "We are encouraged by our strong sales performance in early June and are tracking to a 10 to 11 percent increase in same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. for the month. While the retail and economic environment remains uncertain, we are excited about the growth opportunities for both of our brands and are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. potential of our business." Christopher & Banks Corporation is a Minneapolis-based specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. retailer of women's clothing providing exclusive fashions under the Christopher & Banks and C.J. Banks labels. Presently, the Company operates 392 stores in 31 states, located primarily in the Northern half of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding future performance of the Company. The achievement of such results is subject to certain risks and uncertainties, including changes in economic, market and weather conditions, the effect of consumer tastes and spending habits, the realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of expected economies gained through the use of private label and direct import merchandise, management of growth and other factors outside the Company's control, including factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that may arise after the date hereof. The Company will discuss its first quarter results in a conference call scheduled for June 25, 2002 at 5:00 P.M. Eastern Time. The conference call will be simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://www.christopherandbanks.com.
CHRISTOPHER & BANKS CORPORATION
COMPARATIVE INCOME STATEMENT
FOR THE QUARTERS ENDED JUNE 1, 2002 AND JUNE 2, 2001
(in thousands, except per-share data)
Quarter Ended
June 1, June 2,
2002 2001
--------- ---------
(Unaudited)
Net sales $ 77,756 $ 57,552
Merchandise, buying and occupancy 41,960 32,313
------ ------
Gross profit 35,796 25,239
Selling, general and administrative 17,908 13,087
Depreciation and amortization 2,142 1,518
------ ------
Operating income 15,746 10,634
Interest, net (153) (202)
------ ------
Income before income taxes 15,899 10,836
Income tax provision 6,121 4,280
------ ------
Net income $ 9,778 $ 6,556
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Basic earnings per share:
Net income $ 0.38 $ 0.27
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Basic shares outstanding 25,404 24,236
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Diluted earnings per share:
Net income $ 0.37 $ 0.25
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Diluted shares outstanding 26,633 26,011
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CHRISTOPHER & BANKS CORPORATION
COMPARATIVE BALANCE SHEET
(in thousands)
June 1, June 2,
2002 2001
-------- --------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 26,282 $ 17,733
Short-term investments 14,906 --
Merchandise inventories 19,085 19,908
Other current assets 9,283 9,350
------- -------
Total current assets 69,556 46,991
Property, equipment and
improvements, net 60,440 47,698
Other assets:
Long-term investments 10,000 --
Other 1,939 1,798
------- -------
Total other assets 11,939 1,798
------- -------
Total assets $ 141,935 $ 96,487
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,465 $ 2,165
Accrued liabilities 13,142 11,337
------- -------
Total current liabilities 14,607 13,502
Long-term obligations:
Long-term debt -- 5,246
Other liabilities 2,554 1,244
------- -------
Total long-term obligations 2,554 6,490
Stockholders' equity:
Common stock 274 264
Additional paid-in capital 49,252 37,111
Retained earnings 78,248 42,170
Other stockholders' equity (3,000) (3,050)
------- -------
Total stockholders' equity 124,774 76,495
------- -------
Total liabilities and
stockholders' equity $ 141,935 $ 96,487
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