Christopher & Banks Corporation Reports Record Fourth Quarter and Fiscal 2001 Year-End Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--April 11, 2001 Fourth Quarter Net Income Increases 62% Fiscal 2001 Earnings Per Share Increases 106% to $1.50 Christopher & Banks Corporation (Nasdaq: CHBS), formerly Braun's Fashions Corporation, today reported record results for its fourth quarter and fiscal year ended March 3, 2001. For the fourth quarter ended March 3, 2001, which included fourteen weeks, net income rose 62% to a record $8.5 million, or $0.50 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 net income of $5.3 million, or $0.32 per diluted share, in the thirteen-week quarter ended February February: see month. 26, 2000. 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 fourth quarter climbed 51% to $68.0 million compared to $45.2 million in the prior period. 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. increased 16% for the fourteen-week period ended March 3, 2001, compared to the same fourteen-week period last year. For the fiscal year ended March 3, 2001, which included fifty-three weeks, net income rose 121% to a record $ 25.5 million, or $1.50 per diluted share, compared to net income of $11.5 million, or $0.73 per diluted share, in the fifty-two Adj. 1. fifty-two - being two more than fifty 52, lii cardinal - being or denoting a numerical quantity but not order; "cardinal numbers" weeks ended February 26, 2000. Net sales for fiscal 2001 increased 46% to $209.2 million, compared to $143.4 million in the prior period. Same-store sales increased 18% for the fifty-three week period ended March 3, 2001, compared to the same fifty-three week period last year. Bill Prange, Chairman and Chief Executive Officer of Christopher & Banks Corporation, commented, "Once again, we are delighted with our performance, as the fourth quarter marks the twelfth consecutive quarter where our earnings have exceeded those of the prior year's period. Our 16% increase in same-store sales highlights the underlying strength and increased customer awareness of the Christopher & Banks brand. Also, we continued to gain leverage as our fourth quarter operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: increased to 20.3% versus 18.7% last year." Mr. Prange continued, "Fiscal 2001 was a year filled with significant achievements that have positioned us to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. long term growth opportunities. Specifically, we: - Improved our gross margin by 560 basis points as enthusiastic customer response to our merchandise assortments resulted in exceptional sell-through at regular prices. - Increased our store productivity, with sales per square foot for stores open for the full fifty-three weeks ended March 3, 2001, reaching $247 up from $201 for stores open for the full fifty-two weeks ended February 26, 2000. - Generated inventory turnover of 4.7 turns compared to 4.2 turns last year. - Increased same-store sales by 16% in the fourth quarter and by 18% for the full year, with our newest stores, those opened since fiscal 1998, posting same-store increases significantly above the Company average. - Opened 33 new Christopher & Banks stores and converted 61 existing Braun's stores to the Christopher & Banks name, allowing us to operate 150 stores under the Christopher & Banks name at year end. - Opened 20 stores under the name C. J. Banks, carrying sizes 14W to 24W. This new division serves as an additional expansion vehicle and allows us to offer our distinctive "Christopher & Banks" styling to a customer segment not addressed by our current stores. - Increased our revolving credit facility with Wells Fargo Bank Minnesota, N.A., to $18 million from $12 million subject to inventory levels. - Completed 3-for-2 stock splits on July 11, 2000 and February 12, 2001, thereby enhancing liquidity and trading volume of our stock." Mr. Prange concluded, "Our robust sales trends have benefited the Company's cash position allowing us to begin our new fiscal year with $34.8 million in cash. We are committed to executing our expansion plans and enhancing the overall value of the Christopher & Banks brand. We remain on track to open more than 80 new stores this year, with each concept representing approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. half of the total count. Our goal is to continue to attract new customers in our existing markets as well as to expand into untapped markets that exhibit a comparable demographic profile A demographic or demographic profile is a term used in marketing and broadcasting, to describe a demographic grouping or a market segment. This typically involves age bands (as teenagers do not wish to purchase denture fixant), social class bands (as the rich may want to that of our existing stores. Consequently, we are enthusiastic about our future business prospects." 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 label. Presently, the company operates 295 stores in 29 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 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 , 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 fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results in a conference call scheduled for April 11, 2001 at 11 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . 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 broadcasted 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 QUARTER AND YEAR ENDED MARCH 3, 2001
(in thousands, except per share data)
Quarter Ended
March 3, February 26,
2001 2000
(14 weeks) (13 weeks)
(Unaudited)
Net sales $ 68,010 $ 45,185
Merchandise, buying and occupancy 37,602 25,266
Gross profit 30,408 19,919
Selling, general and administrative 15,368 10,504
Depreciation and amortization 1,258 963
Operating income 13,782 8,452
Interest, net (394) (138)
Income before income taxes 14,176 8,590
Income tax provision 5,678 3,332
Net income $ 8,498 $ 5,258
Basic earnings per share: (1)
Net income $ 0.54 $ 0.35
Basic shares outstanding 15,829 15,096
Diluted earnings per share: (1)
Net income $ 0.50 $ 0.32
Diluted shares outstanding 17,098 16,418
(1) All earnings per share amounts reported above reflect the
effect of two 3-for-2 stock splits, one effective July 11, 2000 and
another effective February 12, 2001.
Year Ended
March 3, February 26,
2001 2000
(53 weeks) (52 weeks)
Net sales $ 209,156 $ 143,402
Merchandise, buying and occupancy 116,466 87,865
Gross profit 92,690 55,537
Selling, general and administrative 46,776 33,306
Depreciation and amortization 4,675 3,387
Operating income 41,239 18,844
Interest, net (852) 47
Income before income taxes 42,091 18,797
Income tax provision 16,565 7,262
Net income $ 25,526 $ 11,535
Basic earnings per share: (1)
Net income $ 1.64 $ 0.78
Basic shares outstanding 15,579 14,868
Diluted earnings per share: (1)
Net income $ 1.50 $ 0.73
Diluted shares outstanding 17,002 15,823
(1) All earnings per share amounts reported above reflect the
effect of two 3-for-2 stock splits, one effective July 11, 2000 and
another effective February 12, 2001.
CHRISTOPHER & BANKS CORPORATION
COMPARATIVE BALANCE SHEET
(in thousands)
March 3, February 26,
2001 2000
ASSETS
Current assets:
Cash and cash equivalents $ 34,798 $ 22,686
Accounts receivable 1,987 1,171
Merchandise inventories 15,831 11,421
Prepaid expenses 4,594 1,315
Current deferred tax asset 870 698
Total current assets 58,080 37,291
Equipment and improvements, net 33,823 19,781
Other assets:
Long-term deferred tax asset 1,758 1,630
Other 34 17
Total other assets 1,792 1,647
Total assets $ 93,695 $ 58,719
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,579 $ 3,462
Accrued liabilities 12,937 9,378
Current maturities of long-term debt 0 170
Income taxes payable 948 2,181
Total current liabilities 18,464 15,191
Long-term obligations:
Long-term debt 5,207 5,053
Accrued rent obligation 1,197 1,090
Total long-term obligations 6,404 6,143
Stockholders' equity:
Common stock 172 164
Additional paid-in capital 36,271 30,477
Retained earnings 35,614 10,088
Other stockholders' equity (3,230) (3,344)
Total stockholders' equity 68,827 37,385
Total liabilities and stockholders'
equity $ 93,695 $ 58,719
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