We are planning conservatively for 2010 - David Stovall
22 Mar '10
3 min read
Stein Mart, Inc announced financial results for its fourth quarter and fiscal year ended January 30, 2010.
"We are proud to have reversed two years of losses and earned a significant profit in one of the most demanding years in our Company's history," said David H. Stovall, Jr., president and chief executive officer of Stein Mart, Inc. "Rigorous focus on inventory levels and freshness, dedication to expense reduction and emphasis on cash generation all contributed to our profitability this year. Our 13,000 associates were instrumental in the gains we made in 2009 and I want to thank them for their devotion and efforts."
"We are planning conservatively for 2010. Our first priority is improving sales, while continuing to focus on expense and operating controls," Stovall continued. "With the added leadership of Brian Morrow as chief merchant, the full deployment of our new supply chain process and a significant information systems enhancement, we believe we are correctly positioned to further improve our business and give customers even more reason to visit our stores."
Overview of Results for Fourth Quarter
For the fourth quarter of 2009, we earned $2.7 million or $0.06 per diluted share compared to a net loss of $(56.2) million or $(1.35) per diluted share for the fourth quarter of 2008. Included in net income for the fourth quarter of 2009 are $8.7 million (pre-tax) of store closing and impairment charges, or $0.13 per share, using the full-year effective tax rate. The fourth quarter 2008 results include charges totaling $0.78 per share consisting of $21.1 million (pre-tax) for store closing and impairment charges and a valuation allowance for deferred tax assets of $19.0 million. Our fourth quarter earnings per share without the impact of these charges would have been $0.19 in 2009 compared to a net loss of $(0.57) in 2008.
Our fourth quarter effective tax rate ("ETR") of 54.2 percent was higher than our full-year rate of 31.6 percent primarily due to the impact of a change in our annual ETR. During the fourth quarter, our annual ETR increased from the estimated annual ETR used through the third quarter due to the impact of changes in book/tax differences on our deferred tax valuation allowance. This rate increase resulted in an unfavorable tax adjustment of $0.9 million ($0.02 per diluted share) in the fourth quarter. Our full year rate was lower than the federal statutory rate due to the effect of certain book/tax differences including the results of a third quarter tax accounting method change.
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