Citi Trends, Inc. (NASDAQ:CTRN) Q4 2020 Earnings Conference Call March 16, 2021 9:00 AM ET Company Participants Nitza McKee - Investor Relations David Makuen - Chief Executive Officer Pam Edwards - Chief Financial Officer Jason Moschner - Vice President, Finance Conference Call Participants Dana Telsey - Telsey Advisory Group Jeremy Hamblin - Craig-Hallum Capital Group John Lawrence - Baraboo Growth Operator Greetings and welcome to the CTRN 4Q ‘20 Earnings Conference Call. [Operator Instructions] As a remi ...

PART I FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201%20Financial%20Statements%20(unaudited)) This section presents the company's unaudited condensed consolidated financial statements and accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) **Condensed Consolidated Balance Sheets (in thousands)** | Metric | October 31, 2020 | February 1, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $96,762 | $19,923 | | Total current assets | $229,741 | $201,207 | | Total assets | $481,921 | $459,145 | | Total current liabilities | $169,966 | $150,862 | | Total liabilities | $320,988 | $288,101 | | Total stockholders' equity | $160,933 | $171,044 | - **Cash and cash equivalents** significantly increased from **$19.9 million to $96.8 million**[14](index=14&type=chunk) - **Total assets** grew by approximately **$22.8 million**, while **total liabilities** increased by **$32.9 million**[14](index=14&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) **Condensed Consolidated Statements of Operations (in thousands, except per share amounts)** | Metric | 39 Weeks Ended Oct 31, 2020 | 39 Weeks Ended Nov 2, 2019 | 13 Weeks Ended Oct 31, 2020 | 13 Weeks Ended Nov 2, 2019 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $531,375 | $570,912 | $199,100 | $183,050 | | Income from operations | $8,234 | $7,295 | $9,340 | $(1,588) | | Net income (loss) | $5,940 | $7,081 | $6,965 | $(1,084) | | Basic net income (loss) per common share | $0.57 | $0.60 | $0.67 | $(0.09) | - For the thirty-nine weeks, **net sales decreased by 6.9% YoY**, and **net income decreased by 16.1% YoY**[17](index=17&type=chunk) - For the thirteen weeks, **net sales increased by 8.8% YoY**, and the company reported a **net income of $7.0 million** compared to a net loss of $1.1 million in the prior year[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) **Condensed Consolidated Statements of Cash Flows (in thousands)** | Activity | 39 Weeks Ended Oct 31, 2020 | 39 Weeks Ended Nov 2, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $63,043 | $21,111 | | Net cash provided by (used in) investing activities | $31,349 | $(1,998) | | Net cash used in financing activities | $(17,553) | $(13,245) | | Net increase in cash and cash equivalents | $76,839 | $5,868 | | Cash and cash equivalents, end of period | $96,762 | $23,731 | - **Net cash from operating activities** significantly increased to **$63.0 million** from $21.1 million, driven by inventory decrease and accounts payable increase[21](index=21&type=chunk) - Investing activities provided **$31.3 million cash**, primarily from sales/redemptions of investment securities, a reversal from cash used in the prior year[21](index=21&type=chunk) - Financing activities used more cash, **$17.6 million**, mainly due to increased common stock repurchases[21](index=21&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) **Changes in Stockholders' Equity (in thousands)** | Metric | February 1, 2020 | October 31, 2020 | | :--- | :--- | :--- | | Common Shares | 15,907,666 | 15,968,849 | | Common Stock Amount | $157 | $158 | | Paid in Capital | $93,180 | $94,101 | | Retained Earnings | $186,772 | $191,881 | | Treasury Stock Amount | $(109,065) | $(125,207) | | Total Stockholders' Equity | $171,044 | $160,933 | - **Total stockholders' equity decreased** from $171.0 million to **$160.9 million**, primarily due to increased treasury stock repurchases[24](index=24&type=chunk) - **Retained earnings increased** from $186.8 million to **$191.9 million**[24](index=24&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. Significant Accounting Policies](index=11&type=section&id=1.%20Significant%20Accounting%20Policies) - Citi Trends, Inc is a value-priced retailer of fashion apparel, accessories, and home goods, operating **585 stores in 33 states** as of October 31, 2020[27](index=27&type=chunk) - The condensed consolidated financial statements are unaudited and prepared in accordance with **U.S. GAAP** for interim reporting[28](index=28&type=chunk) - The company adopted ASU 2016-13 (Credit Losses) on February 2, 2020, with **no material impact** on financial statements[30](index=30&type=chunk) [2. Impact of the COVID-19 Pandemic](index=11&type=section&id=2.%20Impact%20of%20the%20COVID-19%20Pandemic) - All retail stores and distribution centers were temporarily closed from March 20, 2020, and **fully reopened by July 18, 2020**[31](index=31&type=chunk) - Mitigation efforts included drawing **$43.7 million** from the credit facility, temporary furloughs, salary reductions, extended vendor payment terms, and suspending share repurchases[32](index=32&type=chunk) - The company deferred **$3.5 million** in employer social security tax deposits and recognized a **$1.5 million** benefit from the CARES Act employee retention credit[34](index=34&type=chunk) [3. Cash and Cash Equivalents/Concentration of Credit Risk](index=13&type=section&id=3.%20Cash%20and%20Cash%20Equivalents/Concentration%20of%20Credit%20Risk) - Cash equivalents are highly liquid investments with maturities of **three months or less**[35](index=35&type=chunk) - The company places cash and cash equivalents in high credit quality banks and institutional money market funds, maintaining accounts that **exceed federally insured limits**[35](index=35&type=chunk) [4. Earnings per Share](index=13&type=section&id=4.%20Earnings%20per%20Share) - Basic EPS is calculated using weighted average common shares outstanding; diluted EPS includes potentially dilutive securities[36](index=36&type=chunk) - 150,000 and 139,000 shares of nonvested restricted stock were excluded from diluted EPS calculation for the thirty-nine weeks ended October 31, 2020 and November 2, 2019, respectively, due to antidilution[37](index=37&type=chunk) **Weighted Average Shares Outstanding (in thousands)** | Period | Basic | Diluted | | :--- | :--- | :--- | | 39 Weeks Ended Oct 31, 2020 | 10,420 | 10,444 | | 39 Weeks Ended Nov 2, 2019 | 11,831 | 11,842 | | 13 Weeks Ended Oct 31, 2020 | 10,365 | 10,401 | | 13 Weeks Ended Nov 2, 2019 | 11,636 | 11,636 | [5. Impairment of Assets](index=14&type=section&id=5.%20Impairment%20of%20Assets) - The company reviews long-lived assets and operating lease right-of-use assets for impairment based on projected undiscounted cash flows[40](index=40&type=chunk) **Asset Impairment Charges (in thousands)** | Type | 39 Weeks Ended Oct 31, 2020 | 39 Weeks Ended Nov 2, 2019 | | :--- | :--- | :--- | | Operating lease right-of-use asset impairment | $181 | $190 | | Store asset impairment | $105 | $282 | | Total asset impairment | $286 | $472 | [6. Revolving Credit Facility](index=14&type=section&id=6.%20Revolving%20Credit%20Facility) - The **$50 million credit facility** with Bank of America was amended to extend maturity to August 18, 2021, and includes a $25 million 'accordion' feature[41](index=41&type=chunk) - On March 20, 2020, **$43.7 million was borrowed** for liquidity due to COVID-19, and the full amount was **repaid by September 11, 2020**[41](index=41&type=chunk) [7. Income Taxes](index=14&type=section&id=7.%20Income%20Taxes) - Income taxes are accounted for under the asset and liability method, with deferred taxes recognized for temporary differences[42](index=42&type=chunk) - The **effective income tax rate increased to 23.2%** for the thirty-nine weeks ended October 31, 2020, from 15.6% in the prior year, primarily due to lower federal and state tax credits[43](index=43&type=chunk) [8. Commitments and Contingencies](index=14&type=section&id=8.%20Commitments%20and%20Contingencies) - The company is involved in various legal proceedings incidental to its business, establishing reserves when costs are probable and estimable[44](index=44&type=chunk) - No legal proceedings are expected to have a **material adverse effect** on financial condition, results of operations, or liquidity[44](index=44&type=chunk) [9. Stock Repurchase Program and Cash Dividends](index=16&type=section&id=9.%20Stock%20Repurchase%20Program%20and%20Cash%20Dividends) - A **$25.0 million stock repurchase program** was completed in February 2020[47](index=47&type=chunk) - A new **$30.0 million repurchase program** was approved on March 13, 2020, temporarily suspended on March 23, 2020, due to COVID-19, and reinstated on September 14, 2020[48](index=48&type=chunk) - During the thirteen weeks ended October 31, 2020, the company repurchased **375,803 shares for $9.9 million**[48](index=48&type=chunk) - **Cash dividends were suspended** on April 28, 2020, due to economic uncertainty from COVID-19[49](index=49&type=chunk) [10. Revenue](index=16&type=section&id=10.%20Revenue) - Primary revenue source is from the sale of clothing and accessories, recognized when merchandise is paid for and control is transferred[50](index=50&type=chunk) - Revenue from gift cards is recognized upon redemption[50](index=50&type=chunk) **Revenue Disaggregation by Major Product Line (Percentage of Net Sales)** | Product Line | 39 Weeks Ended Oct 31, 2020 | 39 Weeks Ended Nov 2, 2019 | 13 Weeks Ended Oct 31, 2020 | 13 Weeks Ended Nov 2, 2019 | | :--- | :--- | :--- | :--- | :--- | | Accessories | 31% | 33% | 30% | 33% | | Ladies' | 22% | 23% | 20% | 21% | | Children's | 22% | 22% | 24% | 24% | | Men's | 17% | 16% | 18% | 16% | | Home | 8% | 6% | 8% | 6% | [11. Leases](index=18&type=section&id=11.%20Leases) - The company leases retail store locations, office space, and equipment, typically for **five-year terms** with extension options[55](index=55&type=chunk) - The company negotiated rent concessions, recognizing rent abatement credits of approximately **$0.8 million** for the thirty-nine weeks ended October 31, 2020[56](index=56&type=chunk) **Total Lease Costs (in thousands)** | Type | 39 Weeks Ended Oct 31, 2020 | 39 Weeks Ended Nov 2, 2019 | | :--- | :--- | :--- | | Operating lease cost | $36,918 | $36,137 | | Variable lease cost | $6,458 | $6,164 | | Short term lease cost | $1,172 | $791 | | Total lease cost | $44,548 | $43,092 | **Future Minimum Lease Payments as of October 31, 2020 (in thousands)** | Fiscal Year | Lease Costs | | :--- | :--- | | Remainder of 2020 | $12,651 | | 2021 | $52,070 | | 2022 | $43,452 | | 2023 | $35,672 | | 2024 | $27,363 | | Thereafter | $42,789 | | Total future minimum lease payments | $213,997 | | Less: imputed interest | $(17,255) | | Total present value of lease liabilities | $196,742 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=20&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, condition, and liquidity, emphasizing the impact of COVID-19 [Forward-Looking Statements](index=20&type=section&id=Forward-Looking%20Statements) - This section contains forward-looking statements subject to risks and uncertainties, including the ongoing **COVID-19 pandemic**, changes in consumer spending, and supply chain disruptions[60](index=60&type=chunk)[61](index=61&type=chunk) - Readers are cautioned not to place undue reliance on these statements and are advised to review other SEC filings for further disclosures[62](index=62&type=chunk) [Overview](index=20&type=section&id=Overview) - Citi Trends is a value-priced retailer of fashion apparel, accessories, and home goods, primarily targeting value-conscious consumers, particularly **African-Americans**[63](index=63&type=chunk) - As of October 31, 2020, the company operated **585 stores across 33 states**[63](index=63&type=chunk) [COVID-19 Pandemic](index=20&type=section&id=COVID-19%20Pandemic) - All retail stores and distribution centers were temporarily closed from March 20, 2020, and **fully reopened by July 18, 2020**, with safety measures implemented[64](index=64&type=chunk) - The pandemic led to a **$43.7 million credit facility drawdown**, temporary furloughs, salary reductions, extended vendor payment terms, and suspension of share repurchases[66](index=66&type=chunk) - The company continues to monitor and evaluate the pandemic's impact on its business, customers, and vendors[67](index=67&type=chunk) [Accounting Periods](index=22&type=section&id=Accounting%20Periods) - Fiscal years 2020 and 2019 represent periods ending January 30, 2021, and February 1, 2020, respectively, both with **52-week accounting periods**[68](index=68&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) - The business is seasonal, with **higher sales in the first and fourth quarters**[69](index=69&type=chunk) - Comparable store sales growth and average sales per store are key performance measures[70](index=70&type=chunk) [Thirty-Nine Weeks Ended October 31, 2020 and November 2, 2019](index=23&type=section&id=Thirty-Nine%20Weeks%20Ended%20October%2031,%202020%20and%20November%202,%202019) - **Net sales decreased by $39.5 million (6.9%)** to $531.4 million, primarily due to store closures from COVID-19[72](index=72&type=chunk) - Cost of sales as a percentage of sales decreased to **61.6% from 62.6%**, driven by an **80 basis point increase in core merchandise margin** and a 20 basis point improvement in shrinkage[73](index=73&type=chunk) - Selling, general and administrative expenses **decreased by $11.1 million (5.8%)** due to payroll reductions from furloughs and CARES Act credits, partially offset by $1.7 million in COVID-19 related supplies[74](index=74&type=chunk) - **Net income decreased by $1.2 million (16.1%)** to $5.9 million[77](index=77&type=chunk) [Thirteen Weeks Ended October 31, 2020 and November 2, 2019](index=23&type=section&id=Thirteen%20Weeks%20Ended%20October%2031,%202020%20and%20November%202,%202019) - **Net sales increased by $16.0 million (8.8%)** to $199.1 million, driven by a **6.3% increase in comparable store sales** and 22 new store openings[78](index=78&type=chunk) - Comparable store sales increase was due to a **21% increase in average ticket size**, partially offset by a 12% decrease in customer transactions[78](index=78&type=chunk) - Cost of sales as a percentage of sales decreased to **58.2% from 62.6%**, due to a **390 basis point increase in core merchandise margin**, and improvements in shrinkage and freight costs[79](index=79&type=chunk) - **Net income was $7.0 million**, a significant improvement from a net loss of $1.1 million in the prior year's third quarter[83](index=83&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) - Principal liquidity sources include **cash and cash equivalents ($96.8 million)**, short-term trade credit, cash from operations, and a **$50.0 million revolving credit facility** (no borrowings as of Oct 31, 2020)[84](index=84&type=chunk) - **Net cash provided by operating activities increased to $63.0 million** from $21.1 million, driven by a $23.9 million decrease in inventory and a $7.7 million increase in accounts payable[85](index=85&type=chunk) - Investing activities provided **$31.3 million**, primarily from sales/redemptions of investment securities[87](index=87&type=chunk) - Financing activities used **$17.6 million**, mainly due to **$16.9 million in common stock repurchases** and dividends[88](index=88&type=chunk) [Cash Requirements](index=27&type=section&id=Cash%20Requirements) - Cash is primarily used for working capital, capital expenditures (stores, distribution, IT), and stock repurchases[90](index=90&type=chunk) - The **$43.7 million drawn** from the revolving credit facility due to COVID-19 was **fully repaid by September 11, 2020**[90](index=90&type=chunk) - The company expects to meet future cash requirements for at least the next 12 months through cash flow from operations, trade credit, existing cash, and the credit facility[91](index=91&type=chunk) [Recent Accounting Pronouncements](index=27&type=section&id=Recent%20Accounting%20Pronouncements) - Refer to Note 1 for discussion of recent accounting pronouncements[92](index=92&type=chunk) [Critical Accounting Policies](index=27&type=section&id=Critical%20Accounting%20Policies) - No material changes to critical accounting policies outlined in the Annual Report on Form 10-K for the year ended February 1, 2020[94](index=94&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](index=27&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk were reported for the period - **No material changes in market risk** during the thirty-nine weeks ended October 31, 2020, compared to the Annual Report on Form 10-K[95](index=95&type=chunk) [Item 4. Controls and Procedures.](index=27&type=section&id=Item%204%20Controls%20and%20Procedures) Management confirms the effectiveness of disclosure controls and procedures as of October 31, 2020 - Disclosure controls and procedures were evaluated and **deemed effective as of October 31, 2020**, providing reasonable assurance for information recording, processing, summarizing, and reporting[96](index=96&type=chunk) - **No material changes** in internal control over financial reporting occurred during the fiscal quarter ended October 31, 2020[98](index=98&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings.](index=29&type=section&id=Item%201%20Legal%20Proceedings) The company reports no legal proceedings expected to have a material adverse effect on its financials - The company is involved in various legal proceedings incidental to its business[100](index=100&type=chunk) - No legal proceedings are expected to have a **material adverse effect** on financial condition, results of operations, or liquidity[100](index=100&type=chunk) [Item 1A. Risk Factors.](index=29&type=section&id=Item%201A%20Risk%20Factors) This section updates risk factors, highlighting the ongoing and uncertain impact of the COVID-19 pandemic - The ongoing **COVID-19 pandemic** has significantly impacted financial and operating performance, with the extent of future impact remaining **highly uncertain**[101](index=101&type=chunk)[103](index=103&type=chunk) - Risks include potential re-closure of stores, negative impacts on global/regional economies, changes in consumer shopping patterns, and supplier/vendor operations[103](index=103&type=chunk) - Sales and store operations are susceptible to general economic factors (e.g., unemployment, consumer confidence) and regional factors, particularly in the **southeastern United States**[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=31&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details stock repurchase activities following the reinstatement of the buyback program - A **$30.0 million stock repurchase program**, approved on March 13, 2020, was temporarily suspended on March 23, 2020, and **reinstated on September 14, 2020**[108](index=108&type=chunk) - During the thirteen weeks ended October 31, 2020, the company repurchased **375,803 shares** at an aggregate cost of **$9.9 million**[108](index=108&type=chunk) **Common Stock Repurchases (Third Quarter Fiscal 2020)** | Period | Total Shares Purchased | Average Price Paid per Share (1) | Maximum Value Remaining (2) | | :--- | :--- | :--- | :--- | | August (8/2/20 - 8/29/20) | — | — | $30,000,000 | | September (8/30/20 - 10/3/20) | 149,831 | $24.60 | $26,317,994 | | October (10/4/20 - 10/31/20) | 225,972 | $27.44 | $20,123,067 | | Total | 375,803 | | | [Item 3. Defaults Upon Senior Securities.](index=32&type=section&id=Item%203%20Defaults%20Upon%20Senior%20Securities) This item is not applicable for the reporting period - Not applicable[113](index=113&type=chunk) [Item 4. Mine Safety Disclosures.](index=32&type=section&id=Item%204%20Mine%20Safety%20Disclosures) This item is not applicable for the reporting period - Not applicable[115](index=115&type=chunk) [Item 5. Other Information.](index=32&type=section&id=Item%205%20Other%20Information) This item is not applicable for the reporting period - Not applicable[117](index=117&type=chunk) [Item 6. Exhibits.](index=32&type=section&id=Item%206%20Exhibits) This section lists all exhibits filed with the Form 10-Q - Includes **Inline XBRL Document Set** for financial statements and cover page[119](index=119&type=chunk) - Lists Third Amended and Restated Certificate of Incorporation and employment/severance agreements[121](index=121&type=chunk) SIGNATURES [SIGNATURES](index=33&type=section&id=SIGNATURES) The report is duly signed by the Principal Financial and Accounting Officer on December 8, 2020 - The report was signed by **Jason B. Moschner, Vice President of Finance** (Principal Financial and Accounting Officer) on **December 8, 2020**[124](index=124&type=chunk)[126](index=126&type=chunk)[128](index=128&type=chunk)

Citi Trends, Inc. (NASDAQ:CTRN) Q3 2020 Earnings Conference Call December 1, 2020 9:00 AM ET Company Participants Nitza McKee - Senior Associate, ICR David Makuen - Chief Executive Officer Jason Moschner - Vice President of Finance Conference Call Participants Alec Legg - B.Riley Securities Chuck Grom - Gordon Haskett Alex Silverman - AWM Investment Company Inc. Dana Telsey - Telsey Advisory Group Operator Greetings, and welcome to the Citi Trends 3Q 2020 Earnings Conference Call. During the presentation, a ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 1, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 000-51315 CITI TRENDS, INC. (Exact name of registrant as specified in its charter) Delaware 52-2150697 (State or other jurisdiction of (I.R.S. Emplo ...

Citi Trends, Inc. (NASDAQ:CTRN) Q2 2020 Earnings Conference Call August 20, 2020 9:00 AM ET Company Participants Nitza McKee - Senior Associate, ICR LLC David Makuen - Chief Executive Officer Jason Moschner - Vice President of Finance Conference Call Participants Alex Silverman - AWM Investment Company Inc. Dana Telsey - Telsey Advisory Group Operator Greetings, and welcome to the Second Quarter 2020 Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. Afterward ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents unaudited condensed consolidated financial statements for Citi Trends, Inc., with notes on accounting policies and COVID-19 impact [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Summarizes the company's financial position, detailing assets, liabilities, and equity as of May 2, 2020, and February 1, 2020 Condensed Consolidated Balance Sheets (in thousands) | Assets/Liabilities & Equity | May 2, 2020 | Feb 1, 2020 | | :-------------------------- | :---------- | :---------- | | **Assets** | | | | Cash and cash equivalents | $108,130 | $19,923 | | Short-term investment securities | $5 | $27,562 | | Inventory | $121,885 | $138,258 | | Total current assets | $240,158 | $201,207 | | Total assets | $486,843 | $459,145 | | **Liabilities** | | | | Accounts payable | $94,249 | $79,596 | | Revolving credit facility | $43,700 | — | | Total liabilities | $343,785 | $288,101 | | **Stockholders' Equity** | | | | Total stockholders' equity | $143,058 | $171,044 | - Cash and cash equivalents significantly increased from **$19.9 million to $108.1 million**, while short-term investment securities decreased from **$27.6 million to $5 thousand**[10](index=10&type=chunk) - Total liabilities increased by **$55.7 million**, primarily due to a **$43.7 million** borrowing under the revolving credit facility[10](index=10&type=chunk) - Total stockholders' equity decreased by **$27.9 million**, from **$171.0 million to $143.1 million**[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details the company's financial performance, including net sales, expenses, and net income/loss for the thirteen weeks ended May 2, 2020, and May 4, 2019 Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Thirteen Weeks Ended May 2, 2020 | Thirteen Weeks Ended May 4, 2019 | | :-------------------------- | :------------------------------- | :------------------------------- | | Net sales | $116,124 | $205,032 | | Cost of sales | $(84,370) | $(128,238) | | Selling, general and administrative expenses | $(54,076) | $(63,447) | | Depreciation | $(4,946) | $(4,614) | | Asset impairment | $(286) | — | | (Loss) Income from operations | $(27,554) | $8,733 | | Interest income | $217 | $379 | | Interest expense | $(163) | $(38) | | (Loss) Income before income taxes | $(27,500) | $9,074 | | Income tax benefit (provision) | $6,608 | $(1,286) | | Net (loss) income | $(20,892) | $7,788 | | Basic net (loss) income per common share | $(2.00) | $0.65 | | Diluted net (loss) income per common share | $(2.00) | $0.65 | - Net sales decreased by **43.4% to $116.1 million** in Q1 2020 from **$205.0 million** in Q1 2019[13](index=13&type=chunk) - The company reported a **net loss of $20.9 million** in Q1 2020, a significant decline from a net income of **$7.8 million** in Q1 2019[13](index=13&type=chunk) - Basic and diluted EPS shifted from a positive **$0.65** in Q1 2019 to a negative **$2.00** in Q1 2020[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Outlines the cash inflows and outflows from operating, investing, and financing activities for the thirteen weeks ended May 2, 2020, and May 4, 2019 Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Thirteen Weeks Ended May 2, 2020 | Thirteen Weeks Ended May 4, 2019 | | :-------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $12,820 | $8,897 | | Net cash provided by investing activities | $39,251 | $6,034 | | Net cash provided by (used in) financing activities | $36,136 | $(3,310) | | Net increase in cash and cash equivalents | $88,207 | $11,621 | | Cash and cash equivalents, end of period | $108,130 | $29,484 | - Net cash provided by operating activities increased to **$12.8 million** in Q1 2020 from **$8.9 million** in Q1 2019[17](index=17&type=chunk) - Investing activities provided **$39.3 million** in Q1 2020, significantly up from **$6.0 million** in Q1 2019, largely due to sales/redemptions of investment securities[17](index=17&type=chunk) - Financing activities shifted from using **$3.3 million** in Q1 2019 to providing **$36.1 million** in Q1 2020, driven by **$43.7 million** in borrowings under the revolving credit facility[17](index=17&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Presents changes in stockholders' equity, including net income/loss, dividends, and stock repurchases for the thirteen weeks ended May 2, 2020, and May 4, 2019 Condensed Consolidated Statements of Stockholders' Equity (in thousands, except share amounts) | Item | Thirteen Weeks Ended May 2, 2020 | Thirteen Weeks Ended May 4, 2019 | | :-------------------------- | :------------------------------- | :------------------------------- | | Balances — February 1, 2020 / February 2, 2019 | $171,044 | $187,425 | | Net (loss) income | $(20,892) | $7,788 | | Dividends paid to stockholders | $(831) | $(958) | | Repurchase of common stock | $(6,254) | $(1,640) | | Balances — May 2, 2020 / May 4, 2019 | $143,058 | $190,549 | - Total stockholders' equity decreased from **$171.0 million** at February 1, 2020, to **$143.1 million** at May 2, 2020, primarily due to a net loss of **$20.9 million** and **$6.3 million** in common stock repurchases[20](index=20&type=chunk) - The company repurchased **260,254 shares** of common stock for **$6.3 million** during the thirteen weeks ended May 2, 2020[20](index=20&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Significant Accounting Policies](index=8&type=section&id=1.%20Significant%20Accounting%20Policies) Outlines the key accounting principles and methods used in preparing the financial statements - Citi Trends, Inc. is a value-priced retailer of fashion apparel, accessories, and home goods, operating **574 stores** in **33 states** as of May 2, 2020[25](index=25&type=chunk) - The condensed consolidated financial statements are unaudited and prepared in accordance with U.S. GAAP for interim reporting, reflecting all normal and recurring adjustments[26](index=26&type=chunk) - The company adopted ASU 2016-13 (Financial Instruments – Credit Losses) on February 2, 2020, which did not have a material impact on its financial statements[28](index=28&type=chunk) [2. Impact of the COVID-19 Pandemic](index=8&type=section&id=2.%20Impact%20of%20the%20COVID-19%20Pandemic) Discusses the adverse effects of the COVID-19 pandemic on the company's financial condition, operations, and liquidity, along with mitigation strategies - All retail stores and distribution centers were temporarily closed effective March 20, 2020, due to the COVID-19 pandemic, adversely impacting financial condition, results of operations, and liquidity[29](index=29&type=chunk) - Measures taken include borrowing **$43.7 million** from the revolving credit facility, furloughing staff, implementing salary reductions, extending vendor payment terms, abating rent, reducing operating expenses and capital expenditures, suspending share repurchases and dividends, and extending the credit facility term to August 2021[29](index=29&type=chunk) - The company began reopening stores on April 24, 2020, with **16 stores** reopened by May 2, 20

Citi Trends, Inc. (NASDAQ:CTRN) Q1 2020 Earnings Conference Call May 28, 2020 9:00 AM ET Company Participants Nitza McKee - ICR David Makuen - CEO & Director Jason Moschner - Principal Financial Officer & Principal Accounting Officer Conference Call Participants Eric Beder - Small Cap Consumer Research Elan Danon - Danon Capital Operator Greetings, and welcome to the First Quarter Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Nitza McKee, Senior Associat ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended February 1, 2020 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 000-51315 CITI TRENDS, INC. (Exact name of registrant as specified in its charter) Delaware 52-2150697 (State or other jurisdictio ...

Citi Trends, Inc. (NASDAQ:CTRN) Q4 2019 Earnings Conference Call March 13, 2020 9:00 AM ET Company Participants Nitza McKee - Senior Associate, ICR Peter Sachse - Executive Chairman David Makuen - Chief Executive Officer Conference Call Participants Eric Beder - SCC Research Alex Silverman - AWM Investment Company Operator Greetings and welcome to the CTRN 4Q 2019 Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-ans ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 2, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 000-51315 CITI TRENDS, INC. (Exact name of registrant as specified in its charter) DELAWARE 52-2150697 (State or other jurisdiction of (I.R.S. Emp ...