Citi Trends(US:CTRN)2021-06-08 16:00Financial Performance - Net sales for the thirteen weeks ended May 1, 2021, were $285,381 thousand, a significant increase from $116,124 thousand for the same period in 2020, representing a growth of 145.5%[11] - The company reported a net income of $30,897 thousand for the thirteen weeks ended May 1, 2021, compared to a net loss of $20,892 thousand for the same period in 2020, marking a turnaround in profitability[11] - Operating income for the thirteen weeks ended May 1, 2021, was $39,001 thousand, compared to a loss of $27,554 thousand for the same period in 2020, showing a significant improvement[11] - Basic net income per share was $3.27 for the thirteen weeks ended May 1, 2021, compared to a loss of $2.00 per share for the same period in 2020[11] - Net income was $30.9 million in Q1 2021 compared to a net loss of $20.9 million in Q1 2020, reflecting improved financial performance[75] Assets and Liabilities - Total assets increased to $509,177 thousand as of May 1, 2021, up from $494,593 thousand as of January 30, 2021, reflecting a growth of 2.2%[9] - Current liabilities rose to $210,355 thousand as of May 1, 2021, compared to $182,845 thousand as of January 30, 2021, indicating an increase of 15.0%[9] - Total liabilities increased to $361,184 thousand as of May 1, 2021, from $330,959 thousand as of January 30, 2021, reflecting a growth of 9.1%[9] Cash Flow - The company reported net cash provided by operating activities of $61,739 thousand for the thirteen weeks ended May 1, 2021, compared to $12,820 thousand for the same period in 2020, an increase of 381.5%[15] - As of May 1, 2021, cash and cash equivalents totaled $131.3 million, with a revolving credit facility of $75.0 million and no borrowings[76] - Significant sources of cash included a net income of $50.4 million, and a $24.5 million increase in accounts payable[77] - Cash used in investing activities was $5.7 million in the first quarter of 2021, compared to cash provided of $39.3 million in the first quarter of 2020[81] - Cash used in financing activities was $47.9 million in the first quarter of 2021, primarily due to share repurchases of $45.5 million[82] Store Operations - The company operated 584 stores across 33 states as of May 1, 2021, indicating a stable presence in urban, suburban, and rural markets[20] - The company operated 584 stores across 33 states as of May 1, 2021, indicating a focus on market expansion[59] - Revenue from the sale of ladies' clothing accounted for 29% of net sales for the thirteen weeks ended May 1, 2021, up from 28% in the prior year[48] Expenses - Cost of sales (exclusive of depreciation) increased by $79.4 million, or 94.1%, to $163.8 million in Q1 2021, with cost of sales as a percentage of sales decreasing to 57.4% from 72.7% in Q1 2020[72] - Selling, general and administrative expenses rose by $23.8 million, or 44.0%, to $77.9 million in Q1 2021, with expenses as a percentage of sales decreasing to 27.3% from 46.6% in Q1 2020[73] - Total lease costs for the first quarter of 2021 amounted to $16.25 million, compared to $14.71 million for the same period in 2020, indicating an increase in lease expenses[50] Shareholder Actions - The Company repurchased 287,496 shares of its common stock at an aggregate cost of $23.6 million during the first quarter of 2021, and completed a block repurchase of 250,000 shares for $21.9 million[41] - The company repurchased a total of 537,496 shares of common stock at an aggregate cost of $45.5 million during the first quarter of fiscal 2021[96] - The company has announced a new stock repurchase program authorizing up to $30.0 million in shares[98] Tax and Legal Matters - The Company reported a tax rate of 20.7% for the first quarter of 2021, compared to a benefit of 24.0% for the same period in 2020, reflecting a shift from a pretax loss to pretax income[38] - The company has not identified any legal proceedings that are expected to have a material adverse effect on its financial condition[93] COVID-19 Impact - The Company experienced a temporary closure of stores and limited operating hours due to COVID-19, but saw improvement in financial results during the latter half of fiscal 2020 and into the first quarter of 2021[26] - The Company expects continued uncertainty in its business due to the ongoing effects of the COVID-19 pandemic, including potential supply chain interruptions and increased costs[26] - The company anticipates continued uncertainty in business operations due to the ongoing effects of the COVID-19 pandemic[64] Lease Obligations - The weighted average remaining lease term for operating leases was 5.17 years, with a weighted average discount rate of 3.07%[54] - Total future minimum lease payments amount to $214.8 million, with a present value of lease liabilities at $197.5 million[53] - The company recognized rent abatement credits of approximately $0.1 million during Q1 2021 due to COVID-19 related rent concessions[52] Market Risk - There were no material changes in market risk during the thirteen weeks ended May 1, 2021[88]