Shoe Carnival Reports Second Quarter Fiscal 2019 Results

Reports Comparable Store Sales Increase of 1.4 Percent

Updates Fiscal 2019 Net Sales and Earnings Outlook

EVANSVILLE, Ind.–(BUSINESS WIRE)–Shoe Carnival, Inc. (Nasdaq: SCVL) (“the Company”), a leading retailer of moderately priced footwear and accessories, today reported results for the second quarter and six months ended August 3, 2019.

Second Quarter Highlights

  • Comparable store sales increased 1.4 percent
  • Earnings per diluted share increased 5.3 percent to $0.80
  • Cash and cash equivalents were $37.5 million with no outstanding debt as of August 3, 2019

Cliff Sifford, Shoe Carnival’s President and Chief Executive Officer commented, “We are pleased our financial results for the second quarter were in line with our expectations and we believe we remain well positioned to achieve our annual outlook. Shoe Carnival’s robust assortment of family footwear for back-to-school is resonating with new and existing customers resulting in an acceleration of our August sales. Comparable store sales through the first three weeks of August are up 3.5 percent compared to a 6.5 percent increase for the full month of August last year. Our team continues to focus on the execution of our strategic initiatives in the second half of fiscal 2019 as we build upon our strong foundation for sustainable long term growth and shareholder value creation.”

Second Quarter Financial Results

The Company reported net sales of $268.2 million for the second quarter of fiscal 2019, a 0.1 percent decrease compared to net sales of $268.4 million for the second quarter of fiscal 2018. Comparable store sales increased 1.4 percent for the second quarter of fiscal 2019.

Gross profit margin for the second quarter of fiscal 2019 decreased 0.6 percent to 30.6 percent compared to 31.2 percent in the second quarter of fiscal 2018. Merchandise margin was flat and buying, distribution and occupancy expenses increased 0.6 percent as a percentage of net sales compared to the second quarter of fiscal 2018.

Selling, general and administrative expenses for the second quarter of fiscal 2019 decreased $2.4 million to $66.4 million. As a percentage of net sales, these expenses decreased to 24.8 percent compared to 25.6 percent in the second quarter of fiscal 2018.

Net income for the second quarter of fiscal 2019 was $11.8 million, or $0.80 per diluted share. For the second quarter of fiscal 2018, the Company reported net income of $11.8 million, or $0.76 per diluted share.

Six Month Financial Results

Net sales for the first six months of fiscal 2019 decreased $3.8 million to $522.0 million compared to the first six months of fiscal 2018. Comparable store sales increased 0.6 percent for the first six months of fiscal 2019.

Net earnings for the first six months of fiscal 2019 were $25.7 million, or $1.71 per diluted share, compared to net earnings of $24.7 million, or $1.59 per diluted share, in the first six months of fiscal 2018. Included in the first six months of fiscal 2019 was a tax benefit in connection with the vesting of equity-based compensation of approximately $1.9 million, or $0.13 per diluted share. The gross profit margin for the first six months of fiscal 2019 was 30.1 percent compared to 30.6 percent in the same period last year. Selling, general and administrative expenses for the first six months decreased $2.9 million to $126.0 million. As a percentage of net sales, these expenses decreased to 24.1 percent compared to 24.5 percent in the first six months of fiscal 2018.

Store Openings and Closings

The Company expects to open one store and close six stores during fiscal 2019 compared to opening three stores and closing 14 stores during fiscal 2018.

Expected store openings and closings by quarter for the fiscal year are as follows:

 

New Stores

Store Closings

First quarter 2019

0

2

Second quarter 2019

0

2

Third quarter 2019

1

1

Fourth quarter 2019

0

1

Fiscal year 2019

1

6

Fiscal 2019 Outlook

Based on performance year-to-date, the Company is maintaining the high-end of the annual diluted earnings per share guidance of $2.83 and raising the lower-end of the range to $2.77. This compares to diluted earnings per share of $2.45 in the prior fiscal year. With the first half of the year complete, net sales estimates have been refined while maintaining the comparable store sales guidance for the year of a low single-digit increase. Total net sales for the full fiscal year are expected to be in the range of $1.028 billion to $1.033 billion.

Conference Call

Today, at 4:30 p.m. Eastern Time, the Company will host a conference call to discuss the second quarter results. Participants can listen to the live webcast of the call by visiting Shoe Carnival’s Investors webpage at www.shoecarnival.com. While the question-and-answer session will be available to all listeners, questions from the audience will be limited to institutional investors and analysts. A replay of the webcast will be available on the Company’s website beginning approximately two hours after the conclusion of the conference call and will be archived for one year.

About Shoe Carnival

Shoe Carnival, Inc. is one of the nation’s largest family footwear retailers, offering a broad assortment of moderately priced dress, casual and athletic footwear for men, women and children with emphasis on national name brands. As of August 28, 2019, the Company operates 393 stores in 35 states and Puerto Rico, and offers online shopping at www.shoecarnival.com. Headquartered in Evansville, IN, Shoe Carnival trades on The NASDAQ Stock Market LLC under the symbol SCVL. Shoe Carnival’s press releases and annual report are available on the Company’s website at www.shoecarnival.com.

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. A number of factors could cause our actual results, performance, achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. These factors include, but are not limited to: general economic conditions in the areas of the continental United States in which our stores are located and the impact of the ongoing economic crisis in Puerto Rico on sales at, and cash flows of, our stores located in Puerto Rico; the effects and duration of economic downturns and unemployment rates; changes in the overall retail environment and more specifically in the apparel and footwear retail sectors; our ability to generate increased sales at our stores; our ability to successfully navigate the increasing use of online retailers for fashion purchases and the impact on traffic and transactions in our physical stores; our ability to attract customers to our e-commerce website and to successfully grow our e-commerce sales; the potential impact of national and international security concerns on the retail environment; changes in our relationships with key suppliers; changes in the political and economic environments in, the status of trade relations with, and the impact of changes in trade policies and tariffs impacting, China and other countries which are the major manufacturers of footwear; the impact of competition and pricing; our ability to successfully manage and execute our marketing initiatives and maintain positive brand perception and recognition; changes in weather patterns, consumer buying trends and our ability to identify and respond to emerging fashion trends; the impact of disruptions in our distribution or information technology operations; the effectiveness of our inventory management; the impact of natural disasters on our stores, as well as on consumer confidence and purchasing in general; risks associated with the seasonality of the retail industry; the impact of unauthorized disclosure or misuse of personal and confidential information about our customers, vendors and employees, including as a result of a cyber-security breach; our ability to manage our third-party vendor relationships; our ability to successfully execute our business strategy, including the availability of desirable store locations at acceptable lease terms, our ability to open new stores in a timely and profitable manner, including our entry into major new markets, and the availability of sufficient funds to implement our business plans; higher than anticipated costs associated with the closing of underperforming stores; the inability of manufacturers to deliver products in a timely manner; the impact of regulatory changes in the United States and the countries where our manufacturers are located; the resolution of litigation or regulatory proceedings in which we are or may become involved; our ability to meet our labor needs while controlling costs; and future stock repurchases under our stock repurchase program and future dividend payments; and other factors described in the Company’s SEC filings, including the Company’s latest Annual Report on Form 10-K.

In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties and other factors. Accordingly, any forward-looking statements included in this press release do not purport to be predictions of future events or circumstances and may not be realized. Forward-looking statements can be identified by, among other things, the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “pro forma,” “anticipates,” “intends” or the negative of any of these terms, or comparable terminology, or by discussions of strategy or intentions. Given these uncertainties, we caution investors not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We disclaim any obligation to update any of these factors or to publicly announce any revisions to the forward-looking statements contained in this press release to reflect future events or developments.

SHOE CARNIVAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

 

 

 

Thirteen

 

Thirteen

 

Twenty-six

 

Twenty-six

 

 

Weeks Ended

 

Weeks Ended

 

Weeks Ended

 

Weeks Ended

 

 

August 3, 2019

 

August 4, 2018

 

August 3, 2019

 

August 4, 2018

Net sales

 

$

268,221

 

 

$

268,366

 

 

$

522,031

 

 

$

525,811

 

Cost of sales (including buying, distribution and occupancy costs)

 

 

186,126

 

 

 

184,585

 

 

 

364,796

 

 

 

364,703

 

Gross profit

 

 

82,095

 

 

 

83,781

 

 

 

157,235

 

 

 

161,108

 

Selling, general and administrative expenses

 

 

66,421

 

 

 

68,850

 

 

 

125,953

 

 

 

128,861

 

Operating income

 

 

15,674

 

 

 

14,931

 

 

 

31,282

 

 

 

32,247

 

Interest income

 

 

(86

)

 

 

(117

)

 

 

(417

)

 

 

(119

)

Interest expense

 

 

85

 

 

 

36

 

 

 

121

 

 

 

76

 

Income before income taxes

 

 

15,675

 

 

 

15,012

 

 

 

31,578

 

 

 

32,290

 

Income tax expense

 

 

3,843

 

 

 

3,237

 

 

 

5,873

 

 

 

7,560

 

Net income

 

$

11,832

 

 

$

11,775

 

 

$

25,705

 

 

$

24,730

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.81

 

 

$

0.77

 

 

$

1.76

 

 

$

1.60

 

Diluted

 

$

0.80

 

 

$

0.76

 

 

$

1.71

 

 

$

1.59

 

Weighted average shares:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

14,615

 

 

 

15,249

 

 

 

14,614

 

 

 

15,387

 

Diluted

 

 

14,736

 

 

 

15,367

 

 

 

14,964

 

 

 

15,446

 

Cash dividends declared per share

 

$

0.085

 

 

$

0.080

 

 

$

0.165

 

 

$

0.155

 

SHOE CARNIVAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

August 3,

2019

 

February 2,

2019

 

August 4,

2018

ASSETS

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

 

37,458

 

$

 

 

67,021

 

$

 

 

38,405

Accounts receivable

 

 

2,414

 

 

1,219

 

 

3,918

Merchandise inventories

 

 

336,919

 

 

257,539

 

 

336,907

Other

 

 

10,887

 

 

11,534

 

 

12,094

Total Current Assets

 

 

387,678

 

 

337,313

 

 

391,324

Property and equipment – net

 

 

70,855

 

 

70,605

 

 

77,254

Deferred income taxes

 

 

7,020

 

 

9,622

 

 

8,384

Other noncurrent assets

 

 

4,284

 

 

459

 

 

343

Operating lease right-of-use assets

 

 

223,536

 

 

0

 

 

0

Total Assets

 

$

 

 

693,373

 

$

 

 

417,999

 

$

 

 

477,305

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

 

 

108,410

 

$

 

 

48,715

 

$

 

 

90,928

Accrued and other liabilities

 

 

20,179

 

 

22,069

 

 

25,659

Current portion of operating lease liabilities

 

 

46,783

 

 

0

 

 

0

Total Current Liabilities

 

 

175,372

 

 

70,784

 

 

116,587

Long-term portion of operating lease liabilities

 

 

199,592

 

 

0

 

 

0

Deferred lease incentives

 

 

0

 

 

22,171

 

 

25,006

Accrued rent

 

 

0

 

 

8,436

 

 

9,124

Deferred compensation

 

 

13,751

 

 

12,108

 

 

12,074

Other

 

 

1,098

 

 

67

 

 

750

Total Liabilities

 

 

389,813

 

 

113,566

 

 

163,541

Total Shareholders’ Equity

 

 

303,560

 

 

304,433

 

 

313,764

Total Liabilities and Shareholders’ Equity

 

$

 

 

693,373

 

$

 

 

417,999

 

$

 

 

477,305

SHOE CARNIVAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Twenty-six

Twenty-six

 

Weeks Ended

Weeks Ended

 

August 3, 2019

August 4, 2018

Cash Flows From Operating Activities

 

 

 

 

Net income

$

25,705

 

$

24,730

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

8,395

 

 

11,219

 

Stock-based compensation

 

3,440

 

 

3,403

 

Loss on retirement and impairment of assets, net

 

205

 

 

(227

)

Deferred income taxes

 

2,602

 

 

(202

)

Non-cash operating lease expense

 

20,352

 

 

0

 

Lease incentives

 

0

 

 

170

 

Other

 

1,643

 

 

(4,577

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

(1,194

)

 

2,587

 

Merchandise inventories

 

(79,380

)

 

(76,407

)

Operating lease liabilities

 

(23,346

)

 

0

 

Accounts payable and accrued liabilities

 

59,565

 

 

58,562

 

Other

 

(7,970

)

 

(5,125

)

Net cash provided by operating activities

 

10,017

 

 

14,133

 

 

 

 

 

 

Cash Flows From Investing Activities

 

 

 

 

Purchases of property and equipment

 

(11,490

)

 

(2,661

)

Proceeds from sales of property and equipment

 

8

 

 

0

 

Other

 

0

 

 

283

 

Net cash used in investing activities

 

(11,482

)

 

(2,378

)

 

 

 

 

 

Cash Flow From Financing Activities

 

 

 

 

Borrowings under line of credit

 

20,000

 

 

0

 

Payments on line of credit

 

(20,000

)

 

0

 

Proceeds from issuance of stock

 

104

 

 

107

 

Dividends paid

 

(3,250

)

 

(2,393

)

Purchase of common stock for treasury

 

(14,012

)

 

(19,043

)

Shares surrendered by employees to pay taxes on restricted stock

 

(10,940

)

 

(275

)

Net cash used in financing activities

 

(28,098

)

 

(21,604

)

Net decrease in cash and cash equivalents

 

(29,563

)

 

(9,849

)

Cash and cash equivalents at beginning of period

 

67,021

 

 

48,254

 

Cash and cash equivalents at end of period

$

37,458

 

$

38,405

 

 

Contacts

Cliff Sifford

President and Chief Executive Officer, or

W. Kerry Jackson

Senior Executive Vice President, Chief Operating and Financial Officer and Treasurer

7500 East Columbia Street

Evansville, IN 47715

www.shoecarnival.com

(812) 867-6471

Shoe Carnival Reports Second Quarter Fiscal 2019 Results

Reports Comparable Store Sales Increase of 1.4 Percent

Updates Fiscal 2019 Net Sales and Earnings Outlook

EVANSVILLE, Ind.–(BUSINESS WIRE)–Shoe Carnival, Inc. (Nasdaq: SCVL) (“the Company”), a leading retailer of moderately priced footwear and accessories, today reported results for the second quarter and six months ended August 3, 2019.

Second Quarter Highlights

  • Comparable store sales increased 1.4 percent
  • Earnings per diluted share increased 5.3 percent to $0.80
  • Cash and cash equivalents were $37.5 million with no outstanding debt as of August 3, 2019

Cliff Sifford, Shoe Carnival’s President and Chief Executive Officer commented, “We are pleased our financial results for the second quarter were in line with our expectations and we believe we remain well positioned to achieve our annual outlook. Shoe Carnival’s robust assortment of family footwear for back-to-school is resonating with new and existing customers resulting in an acceleration of our August sales. Comparable store sales through the first three weeks of August are up 3.5 percent compared to a 6.5 percent increase for the full month of August last year. Our team continues to focus on the execution of our strategic initiatives in the second half of fiscal 2019 as we build upon our strong foundation for sustainable long term growth and shareholder value creation.”

Second Quarter Financial Results

The Company reported net sales of $268.2 million for the second quarter of fiscal 2019, a 0.1 percent decrease compared to net sales of $268.4 million for the second quarter of fiscal 2018. Comparable store sales increased 1.4 percent for the second quarter of fiscal 2019.

Gross profit margin for the second quarter of fiscal 2019 decreased 0.6 percent to 30.6 percent compared to 31.2 percent in the second quarter of fiscal 2018. Merchandise margin was flat and buying, distribution and occupancy expenses increased 0.6 percent as a percentage of net sales compared to the second quarter of fiscal 2018.

Selling, general and administrative expenses for the second quarter of fiscal 2019 decreased $2.4 million to $66.4 million. As a percentage of net sales, these expenses decreased to 24.8 percent compared to 25.6 percent in the second quarter of fiscal 2018.

Net income for the second quarter of fiscal 2019 was $11.8 million, or $0.80 per diluted share. For the second quarter of fiscal 2018, the Company reported net income of $11.8 million, or $0.76 per diluted share.

Six Month Financial Results

Net sales for the first six months of fiscal 2019 decreased $3.8 million to $522.0 million compared to the first six months of fiscal 2018. Comparable store sales increased 0.6 percent for the first six months of fiscal 2019.

Net earnings for the first six months of fiscal 2019 were $25.7 million, or $1.71 per diluted share, compared to net earnings of $24.7 million, or $1.59 per diluted share, in the first six months of fiscal 2018. Included in the first six months of fiscal 2019 was a tax benefit in connection with the vesting of equity-based compensation of approximately $1.9 million, or $0.13 per diluted share. The gross profit margin for the first six months of fiscal 2019 was 30.1 percent compared to 30.6 percent in the same period last year. Selling, general and administrative expenses for the first six months decreased $2.9 million to $126.0 million. As a percentage of net sales, these expenses decreased to 24.1 percent compared to 24.5 percent in the first six months of fiscal 2018.

Store Openings and Closings

The Company expects to open one store and close six stores during fiscal 2019 compared to opening three stores and closing 14 stores during fiscal 2018.

Expected store openings and closings by quarter for the fiscal year are as follows:

 

New Stores

Store Closings

First quarter 2019

0

2

Second quarter 2019

0

2

Third quarter 2019

1

1

Fourth quarter 2019

0

1

Fiscal year 2019

1

6

Fiscal 2019 Outlook

Based on performance year-to-date, the Company is maintaining the high-end of the annual diluted earnings per share guidance of $2.83 and raising the lower-end of the range to $2.77. This compares to diluted earnings per share of $2.45 in the prior fiscal year. With the first half of the year complete, net sales estimates have been refined while maintaining the comparable store sales guidance for the year of a low single-digit increase. Total net sales for the full fiscal year are expected to be in the range of $1.028 billion to $1.033 billion.

Conference Call

Today, at 4:30 p.m. Eastern Time, the Company will host a conference call to discuss the second quarter results. Participants can listen to the live webcast of the call by visiting Shoe Carnival’s Investors webpage at www.shoecarnival.com. While the question-and-answer session will be available to all listeners, questions from the audience will be limited to institutional investors and analysts. A replay of the webcast will be available on the Company’s website beginning approximately two hours after the conclusion of the conference call and will be archived for one year.

About Shoe Carnival

Shoe Carnival, Inc. is one of the nation’s largest family footwear retailers, offering a broad assortment of moderately priced dress, casual and athletic footwear for men, women and children with emphasis on national name brands. As of August 28, 2019, the Company operates 393 stores in 35 states and Puerto Rico, and offers online shopping at www.shoecarnival.com. Headquartered in Evansville, IN, Shoe Carnival trades on The NASDAQ Stock Market LLC under the symbol SCVL. Shoe Carnival’s press releases and annual report are available on the Company’s website at www.shoecarnival.com.

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. A number of factors could cause our actual results, performance, achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. These factors include, but are not limited to: general economic conditions in the areas of the continental United States in which our stores are located and the impact of the ongoing economic crisis in Puerto Rico on sales at, and cash flows of, our stores located in Puerto Rico; the effects and duration of economic downturns and unemployment rates; changes in the overall retail environment and more specifically in the apparel and footwear retail sectors; our ability to generate increased sales at our stores; our ability to successfully navigate the increasing use of online retailers for fashion purchases and the impact on traffic and transactions in our physical stores; our ability to attract customers to our e-commerce website and to successfully grow our e-commerce sales; the potential impact of national and international security concerns on the retail environment; changes in our relationships with key suppliers; changes in the political and economic environments in, the status of trade relations with, and the impact of changes in trade policies and tariffs impacting, China and other countries which are the major manufacturers of footwear; the impact of competition and pricing; our ability to successfully manage and execute our marketing initiatives and maintain positive brand perception and recognition; changes in weather patterns, consumer buying trends and our ability to identify and respond to emerging fashion trends; the impact of disruptions in our distribution or information technology operations; the effectiveness of our inventory management; the impact of natural disasters on our stores, as well as on consumer confidence and purchasing in general; risks associated with the seasonality of the retail industry; the impact of unauthorized disclosure or misuse of personal and confidential information about our customers, vendors and employees, including as a result of a cyber-security breach; our ability to manage our third-party vendor relationships; our ability to successfully execute our business strategy, including the availability of desirable store locations at acceptable lease terms, our ability to open new stores in a timely and profitable manner, including our entry into major new markets, and the availability of sufficient funds to implement our business plans; higher than anticipated costs associated with the closing of underperforming stores; the inability of manufacturers to deliver products in a timely manner; the impact of regulatory changes in the United States and the countries where our manufacturers are located; the resolution of litigation or regulatory proceedings in which we are or may become involved; our ability to meet our labor needs while controlling costs; and future stock repurchases under our stock repurchase program and future dividend payments; and other factors described in the Company’s SEC filings, including the Company’s latest Annual Report on Form 10-K.

In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties and other factors. Accordingly, any forward-looking statements included in this press release do not purport to be predictions of future events or circumstances and may not be realized. Forward-looking statements can be identified by, among other things, the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “pro forma,” “anticipates,” “intends” or the negative of any of these terms, or comparable terminology, or by discussions of strategy or intentions. Given these uncertainties, we caution investors not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We disclaim any obligation to update any of these factors or to publicly announce any revisions to the forward-looking statements contained in this press release to reflect future events or developments.

SHOE CARNIVAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

 

 

 

Thirteen

 

Thirteen

 

Twenty-six

 

Twenty-six

 

 

Weeks Ended

 

Weeks Ended

 

Weeks Ended

 

Weeks Ended

 

 

August 3, 2019

 

August 4, 2018

 

August 3, 2019

 

August 4, 2018

Net sales

 

$

268,221

 

 

$

268,366

 

 

$

522,031

 

 

$

525,811

 

Cost of sales (including buying, distribution and occupancy costs)

 

 

186,126

 

 

 

184,585

 

 

 

364,796

 

 

 

364,703

 

Gross profit

 

 

82,095

 

 

 

83,781

 

 

 

157,235

 

 

 

161,108

 

Selling, general and administrative expenses

 

 

66,421

 

 

 

68,850

 

 

 

125,953

 

 

 

128,861

 

Operating income

 

 

15,674

 

 

 

14,931

 

 

 

31,282

 

 

 

32,247

 

Interest income

 

 

(86

)

 

 

(117

)

 

 

(417

)

 

 

(119

)

Interest expense

 

 

85

 

 

 

36

 

 

 

121

 

 

 

76

 

Income before income taxes

 

 

15,675

 

 

 

15,012

 

 

 

31,578

 

 

 

32,290

 

Income tax expense

 

 

3,843

 

 

 

3,237

 

 

 

5,873

 

 

 

7,560

 

Net income

 

$

11,832

 

 

$

11,775

 

 

$

25,705

 

 

$

24,730

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.81

 

 

$

0.77

 

 

$

1.76

 

 

$

1.60

 

Diluted

 

$

0.80

 

 

$

0.76

 

 

$

1.71

 

 

$

1.59

 

Weighted average shares:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

14,615

 

 

 

15,249

 

 

 

14,614

 

 

 

15,387

 

Diluted

 

 

14,736

 

 

 

15,367

 

 

 

14,964

 

 

 

15,446

 

Cash dividends declared per share

 

$

0.085

 

 

$

0.080

 

 

$

0.165

 

 

$

0.155

 

SHOE CARNIVAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

August 3,

2019

 

February 2,

2019

 

August 4,

2018

ASSETS

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

 

37,458

 

$

 

 

67,021

 

$

 

 

38,405

Accounts receivable

 

 

2,414

 

 

1,219

 

 

3,918

Merchandise inventories

 

 

336,919

 

 

257,539

 

 

336,907

Other

 

 

10,887

 

 

11,534

 

 

12,094

Total Current Assets

 

 

387,678

 

 

337,313

 

 

391,324

Property and equipment – net

 

 

70,855

 

 

70,605

 

 

77,254

Deferred income taxes

 

 

7,020

 

 

9,622

 

 

8,384

Other noncurrent assets

 

 

4,284

 

 

459

 

 

343

Operating lease right-of-use assets

 

 

223,536

 

 

0

 

 

0

Total Assets

 

$

 

 

693,373

 

$

 

 

417,999

 

$

 

 

477,305

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

 

 

108,410

 

$

 

 

48,715

 

$

 

 

90,928

Accrued and other liabilities

 

 

20,179

 

 

22,069

 

 

25,659

Current portion of operating lease liabilities

 

 

46,783

 

 

0

 

 

0

Total Current Liabilities

 

 

175,372

 

 

70,784

 

 

116,587

Long-term portion of operating lease liabilities

 

 

199,592

 

 

0

 

 

0

Deferred lease incentives

 

 

0

 

 

22,171

 

 

25,006

Accrued rent

 

 

0

 

 

8,436

 

 

9,124

Deferred compensation

 

 

13,751

 

 

12,108

 

 

12,074

Other

 

 

1,098

 

 

67

 

 

750

Total Liabilities

 

 

389,813

 

 

113,566

 

 

163,541

Total Shareholders’ Equity

 

 

303,560

 

 

304,433

 

 

313,764

Total Liabilities and Shareholders’ Equity

 

$

 

 

693,373

 

$

 

 

417,999

 

$

 

 

477,305

SHOE CARNIVAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Twenty-six

Twenty-six

 

Weeks Ended

Weeks Ended

 

August 3, 2019

August 4, 2018

Cash Flows From Operating Activities

 

 

 

 

Net income

$

25,705

 

$

24,730

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

8,395

 

 

11,219

 

Stock-based compensation

 

3,440

 

 

3,403

 

Loss on retirement and impairment of assets, net

 

205

 

 

(227

)

Deferred income taxes

 

2,602

 

 

(202

)

Non-cash operating lease expense

 

20,352

 

 

0

 

Lease incentives

 

0

 

 

170

 

Other

 

1,643

 

 

(4,577

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

(1,194

)

 

2,587

 

Merchandise inventories

 

(79,380

)

 

(76,407

)

Operating lease liabilities

 

(23,346

)

 

0

 

Accounts payable and accrued liabilities

 

59,565

 

 

58,562

 

Other

 

(7,970

)

 

(5,125

)

Net cash provided by operating activities

 

10,017

 

 

14,133

 

 

 

 

 

 

Cash Flows From Investing Activities

 

 

 

 

Purchases of property and equipment

 

(11,490

)

 

(2,661

)

Proceeds from sales of property and equipment

 

8

 

 

0

 

Other

 

0

 

 

283

 

Net cash used in investing activities

 

(11,482

)

 

(2,378

)

 

 

 

 

 

Cash Flow From Financing Activities

 

 

 

 

Borrowings under line of credit

 

20,000

 

 

0

 

Payments on line of credit

 

(20,000

)

 

0

 

Proceeds from issuance of stock

 

104

 

 

107

 

Dividends paid

 

(3,250

)

 

(2,393

)

Purchase of common stock for treasury

 

(14,012

)

 

(19,043

)

Shares surrendered by employees to pay taxes on restricted stock

 

(10,940

)

 

(275

)

Net cash used in financing activities

 

(28,098

)

 

(21,604

)

Net decrease in cash and cash equivalents

 

(29,563

)

 

(9,849

)

Cash and cash equivalents at beginning of period

 

67,021

 

 

48,254

 

Cash and cash equivalents at end of period

$

37,458

 

$

38,405

 

 

Contacts

Cliff Sifford

President and Chief Executive Officer, or

W. Kerry Jackson

Senior Executive Vice President, Chief Operating and Financial Officer and Treasurer

7500 East Columbia Street

Evansville, IN 47715

www.shoecarnival.com

(812) 867-6471

error: Content is protected !!