Stage Stores Announces Fourth Quarter Results; Provides First Quarter and Updated Full Year 2007 Guidance.--Company Reports Fourth Quarter and Full Year Earnings of $0.88 and $1.25 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, Respectively-- HOUSTON Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; -- Stage Stores, Inc. (NYSE NYSE See: New York Stock Exchange :SSI (1) See server-side include and single-system image. (2) (Small-Scale Integration) Less than 100 transistors on a chip. See MSI, LSI, VLSI and ULSI. 1. (electronics) SSI - small scale integration. 2. ) today reported that total sales increased 17.3% during the fourteen-week fourth quarter ended February February: see month. 3, 2007 to $491.2 million from $418.6 million for last year's thirteen-week fourth quarter ended January January: see month. 28, 2006. The Company noted that sales for the fourteenth week of this year's fourth quarter totaled $21.4 million. Comparable store sales during the first thirteen weeks of the quarter grew 2.5% versus an increase of 5.6% for the same period last year. The Company also reported fourth quarter net income of $39.6 million, or $0.88 per diluted share, compared to $19.7 million, or $0.45 per diluted share, in the same quarter last year. Jim Scarborough Scarborough, town (1991 pop. 36,665) and district, North Yorkshire, NE England, on the North Sea. The town, primarily a resort, is also an important conference and retirement center. The area was recognized at an early time for its strategic location. , Chairman and Chief Executive Officer, commented, "We are pleased with our results for the fourth quarter. Overall, our earnings of $0.88 per diluted share represents a 96% increase over last year's earnings of $0.45 per diluted share. However, included in this year's fourth quarter results are certain non-comparable items which contributed income of $0.26 per diluted share, while last year's fourth quarter results include non-comparable expense items totaling $0.02 per diluted share. Even after taking all of the non-comparable items in each year into consideration, our year-over-year earnings gain is still significant at over 30%. Driving our much improved performance was the combination of higher sales, on a greater number of stores in operation, and solid year-over-year gross margin increases in both our Stage and Peebles Peebles, town, Scotland Peebles (pē`bəlz), town (1991 pop. 6,750), Scottish Borders, S Scotland, at the confluence of Eddleston Water and the Tweed River. It is a mountain resort and a farm market with woolen mills. Divisions when compared on the same retail inventory accounting basis." The Company noted that this year's fourth quarter results are not comparable to last year's results due, in part, to the different inventory accounting methods utilized in each year, as defined below and as discussed in the Company's October October: see month. 24, 2006 news release. On a year-over-year basis, the total impact on this year's fourth quarter results related to the changes in accounting principles, which include the implementation of the weighted average cost method versus the retail method and capitalizing certain of its distribution center handling costs, as well as the deferral deferral - Waiting for quiet on the Ethernet. of credits received from vendors for handling charges at the Company's distribution centers (collectively "the different inventory accounting methods") was an increase in earnings of $0.17 per diluted share. This year's results also reflect other non-comparable items, including: * earnings of $0.02 per diluted share estimated to have been produced in the fourteenth week of the quarter, * earnings of $0.03 per diluted share estimated to have been generated by the 69 converted B.C. Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts. stores in their first full quarter of operation as Peebles stores, * income of $0.06 per diluted share associated with the reduction of the estimated liability for old gift cards and merchandise credits issued to customers which the Company believes the likelihood of redemption is remote (recorded as an offset to Selling, General and Administrative expenses), and * incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. charges of $(0.02) per diluted share for stock option expensing and increases in other 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. incentive equity awards. The Company further noted that last year's results included non-comparable charges of $(0.02) per diluted share related to the closure and consolidation of its Knoxville, Tennessee “Knoxville” redirects here. For other uses, see Knoxville (disambiguation). Founded in 1786, Knoxville is the third-largest city in the state of Tennessee, behind Memphis and Nashville, and is the county seat of Knox CountyGR6. distribution center. For the 53-week 2006 fiscal year, total sales increased 15.3% to $1,550.2 million versus $1,344.1 million for the 52-week 2005 fiscal year. Comparable store sales during the first 52 weeks of the 2006 fiscal year increased by 3.5% versus an increase of 5.4% for the same period last year. Net income for the 2006 fiscal year was $55.3 million, or $1.25 per diluted share, as compared to net income of $55.9 million, or $1.27 per diluted share, for the prior year. The Company noted that its results for the two fiscal years are not entirely comparable due to the following non-comparable items: * earnings of $0.02 per diluted share estimated to have been produced in the fifty third week of the year, * net income of $0.04 per diluted share related to reimbursements received by the Company for its 2005 hurricane related losses, offset somewhat by increased property insurance premiums due to claims activity associated with hurricanes Katrina KATRINA Keeping All the Resources in New Orleans Alive KATRINA Krewe Aiding Trash Removal In the New Orleans Area and Rita, * income of $0.07 per diluted share associated with the reduction of the estimated liability for old gift cards and merchandise credits issued to customers which the Company believes the likelihood of redemption is remote (recorded as an offset to Selling, General and Administrative expenses), * an estimated net loss of $(0.08) per diluted share from the B.C. Moore acquisition, including transition costs and pre-opening expenses associated with the conversion of these stores into the Peebles format, * incremental charges of $(0.06) per diluted share for stock option expensing and increases in other long-term incentive equity awards, * charges of $(0.02) per diluted share from the Company's inventory valuation methodology review process related to fees paid to third parties, * charges of $(0.05) per diluted share for the cumulative effect on prior years of the correction of an accounting error related to the deferral of credits received from vendors for handling charges at the Company's distribution centers, and * a decrease in earnings of $(0.05) per diluted share as compared to last year related to the different inventory accounting methods. The Company further noted that last year's results included non-comparable charges of $(0.03) per diluted share related to the closure and consolidation of its Knoxville, Tennessee distribution center, and benefited from a reduction of accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. to landlords for contingent rent obligations and store real estate taxes of approximately $0.02 per diluted share. Commenting on the fiscal year, Mr. Scarborough stated, "When you factor out all of the non-comparable items, 2006 was a solid year for our company in which we achieved good year-over-year earnings growth. 2006 was also a very successful year for us from an operations and growth perspective, and was a year that our 14,000 valued Stage Stores associates can all be proud of. "While we are very pleased with the progress that our Company made during 2006, we are now looking forward and we are intently focused on achieving an even stronger operating and financial performance in fiscal 2007 and beyond. We firmly believe that we have the right strategies and initiatives in place to further strengthen our business, to continue growing our top and bottom lines and to enhance shareholder value. But above all else, our daily focus continues to be to build and foster strong relationships with our customers, while providing them with exceptional service, great merchandise selections and value in our conveniently located, easy-to-shop locations," Mr. Scarborough concluded. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Program The Company reported that, using funds available to it under its $50 million Stock Repurchase Program, it had repurchased approximately 174,000 shares of its common stock during the fourth quarter at a cost of approximately $3.8 million. For the 2006 fiscal year, approximately 1.0 million shares were purchased at a cost of approximately $21.5 million. The Company expects to continue to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. shares from time to time under its $50 million Stock Repurchase Program and as proceeds from employee stock option exercises become available in sufficient amounts. Fiscal 2007 - First Quarter and Updated Full Year Outlook 1(st) Quarter 2007: The Company provided the following guidance for the first quarter ending May 5, 2007:
< < 1Q 2007 <
1Q 2006 ACTUAL
Sales ($mm) < < $372 < -
$380
$343.5
< < <
Net Income ($mm) < < $14.0 < -
$15.5
$9.0
< < <
Diluted EPS < < $0.31 < -
$0.35
$0.21
< < <
Diluted Shares (m) < < 44,680 <
43,500
In issuing its first quarter guidance, the Company provided the following additional information: * comparable store sales assumption - low to mid single digits * additional gain from the sale of the Peebles private label credit card portfolio, which occurred in March 2004: $0.04 per diluted share. FY 2007: The Company provided the following updated guidance for the 2007 fiscal year ending February 2, 2008:
< < FY 2007 <
FY 2006 ACTUAL
Sales ($mm) < < $1,616 < -
$1,656
$1,550.2
< < <
Net Income ($mm) < < $63.5 < -
$68.0
$55.3
< < <
Diluted EPS < < $1.45 < -
$1.55
$1.25
< < <
Diluted Shares (m) < < 43,870 <
44,111
In updating its fiscal 2007 guidance, the Company noted that its fiscal 2006 results included the following non-comparable items: * fiscal 2006 had an extra week (53rd week). Earnings of $0.02 per diluted share were estimated to have been produced in the fifty third week of the year [$0.02 in Q4], * income of $0.06 per diluted share related to reimbursements received by the Company for its 2005 hurricane related losses [$0.03 in Q2, $0.02 in Q3, and $0.01 in Q4], * income of $0.07 per diluted share associated with the reduction of the estimated liability for old gift cards and merchandise credits issued to customers which the Company believes the likelihood of redemption is remote [$0.06 in Q4]. At current issuance levels for gift cards and merchandise credits, the Company anticipates recognizing breakage income of $1.1 million annually, * an estimated net loss of $(0.08) per diluted share from the B.C. Moore acquisition, including transition costs and pre-opening expenses associated with the conversion of 69 of these stores into the Peebles format [$(0.01) in Q1, $(0.04) in Q2, $(0.05) in Q3, $0.03 in Q4], * charges of $(0.02) per diluted share from the Company's inventory valuation methodology review process related to fees paid to third parties [$(0.02) in Q3], and * charges of $(0.05) per diluted share for the cumulative effect on prior years of the correction of an accounting error related to the deferral of credits received from vendors for handling charges at the Company's distribution centers [$(0.05) in Q2]. The Company also noted that its fiscal 2007 guidance assumed a comparable store sales increase in the low to mid single digits, as well as an additional gain, recorded in the first quarter, of $0.04 per diluted share from the sale of the Peebles private label credit card portfolio, which occurred in March 2004. Conference Call Information The Company will hold a conference call today at 8:30 a.m. Eastern Time to discuss its fourth quarter results and its first quarter 2007 outlook. Interested parties can participate in the Company's conference call by dialing 703-639-1417. Alternatively, interested parties can listen to a live webcast of the conference call by logging on to the Company's web site at www.stagestores.com and then clicking on Investor Relations Investor relations The process by which the corporation communicates with its investors. , then Webcasts, then the webcast link. A replay of the conference call will be available online until midnight on March 23, 2007. About Stage Stores Stage Stores, Inc. brings nationally recognized brand name apparel, accessories, cosmetics cosmetics, preparations externally applied to change or enhance the beauty of skin, hair, nails, lips, and eyes. The use of body paint for ornamental and religious purposes has been common among primitive peoples from prehistoric times (see body-marking). and footwear Footwear consists of garments worn on the feet. It is worn for a variety of reasons, including protection against the environment, hygiene and adornment. Usually, socks and other hosiery are worn between the feet and the footwear, except for sandals and flip flops (thongs). for the entire family to small and mid-size towns and communities through 655 stores located in 33 states. The Company operates under the Bealls Bealls is the name of two unrelated United States retail chains:
The Palais Royal is a palace and garden located near the Ier arrondissement of Paris. and Stage names This list of stage names lists performers alphabetically according to surname (assumed or genuine) and their nickname. Individuals who have dropped their last name and substituted their middle name as their last name are listed. throughout the South Central states, and under the Peebles name throughout the Midwestern Mid·west or Middle West A region of the north-central United States around the Great Lakes and the upper Mississippi Valley. It is generally considered to include Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, Kansas, and , Southeastern, Mid-Atlantic Adj. 1. mid-Atlantic - of a region of the United States generally including Delaware; Maryland; Virginia; and usually New York; Pennsylvania; New Jersey; "mid-Atlantic states" middle Atlantic and New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. states. For more information about Stage Stores, visit the Company's web site at www.stagestores.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement This news 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. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, including comments regarding the Company's outlook and expectations for the first quarter of the 2007 fiscal year and full 2007 fiscal year. The Company intends forward looking terminology such as "believes," "expects," "may," "will," "should," "could," "anticipates," "plans" or similar expressions to identify forward-looking statements. Such statements are subject to certain risks and uncertainties which could cause the Company's actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, those described in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. as filed with the Securities and Exchange Commission (the "SEC") on April 13, 2006, in the Company's subsequent quarterly reports on Form 10-Q Form 10-Q See 10-Q. as filed with the SEC and other factors as may periodically be described in other Company filings with the SEC. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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