Stein Mart Q1'FY14 net income drop 4.1% to $14.1mn

Balance Sheet Highlights

Cash at the end of the first quarter was $88.3 million compared to $83.9 million at the end of the first quarter of 2013. The 2014 balance reflects quarterly dividend payments totaling $2.2 million, stock repurchases totaling $2.6 million and capital expenditures of $9.2 million.

Stein Mart, Inc. announced financial results for the first quarter ended May 3, 2014.Highlights-Comparable store sales increased 2.6 percent. #

 

Inventories were $295.2 million at the end of the first quarter of 2014, 6.0 percent higher than the $278.4 million at the end of the first quarter last year. Giving impact to the end of year $5.0 million decrease from our accounting estimate change, inventories would have increased 8.0 percent. The increase is due to higher Home amounts to support our new programs and higher sales, inventories related to our new online store, one additional store opened in the first quarter and two stores opened last week.

 

Capital Expenditures

Capital expenditures for 2014 are now expected to be approximately $43 million up from our original estimate of $38 million. Approximately $2.5 million of the $5 million increase is for information technology enhancements, as we are accelerating certain expenditures and increasing others to enhance point-of-sale credit card capabilities. The remaining $2.5 million is for the reconfiguration of our corporate office space in connection with the finalization of a 10-year extension of our lease. We are receiving lease incentives and lower rent that will fund this spend and lower our annual costs.

 

Dividend

As announced last month, the Board of Directors has increased the quarterly dividend from $0.05 to $0.075 per share. The next quarterly dividend is payable on July 18 to shareholders of record at close of business on July 3, 2014.

 

Store Activity

The Company ended the quarter with 263 stores compared to 262 at the end of the first quarter last year. During the quarter, one new store was opened, two were closed and three were relocated.

 

Two other new stores, in Aventura, FL (Miami) and Falls Church, VA (Washington D.C.), were opened last week as part of this year's significant store expansion plan that includes a total of 10 new stores and 6 relocations. Pre-opening costs related to new and relocated stores were $1.3 million in the first quarter of 2014 compared to $0.5 million in the first quarter last year.

 

New Director of Ecommerce

We are pleased to announce the appointment of Sara Meza as Director of Ecommerce. Ms. Meza joined us in April after 12 years with Belk, most recently as Director of Ecommerce, where she led the original launch of Belk's website business. She has more than 25 years of retail experience, including buying and store operations.