Christopher & Banks Corporation Reports Full Year and Fourth Quarter Results
Company Achieves Diluted EPS of $1.45 in Fiscal 2003 and $0.40 in the Fourth Quarter
MINNEAPOLIS, April 9 -- Christopher & Banks Corporation (NYSE: CBK) today reported results for the fiscal year and fourth quarter ended March 1, 2003.
For the fiscal year, net sales increased 23% to $338.8 million from $275.9 million last year, while same-store sales increased 1%. Net income grew 17% to a record $38.5 million, or $1.45 per diluted share, compared to net income of $32.9 million, or $1.26 per diluted share, for the year ended March 2, 2002.
Bill Prange, Chairman and Chief Executive Officer, commented, "In fiscal 2003, we were pleased to have increased our earnings per diluted share by more than 15% to $1.45 in a very difficult retail environment. Same-store sales increased 1%, marking the seventh consecutive year where we have generated positive same-store sales. The strength of our business model allowed us to produce significant cash flow. During the year, we opened 94 new stores and repurchased over $13 million of our common stock while growing our balance of cash and short term investments from $40.9 million to $64.1 million."
For the fourth quarter, net sales increased 15% to $95.4 million, compared to $82.8 million in the prior year period, while same-store sales decreased 6%. Net income rose to $10.5 million, or $0.40 per diluted share, compared to net income of $10.3 million, or $0.39 per diluted share, for the quarter ended March 2, 2002.
Commenting on the fourth quarter results, Mr. Prange stated, "While sales were softer than expected, we are pleased to have generated operating income which was 17.4% of sales. During the quarter, we managed our inventory conservatively, thereby protecting the integrity and value of our brands."
Mr. Prange concluded, "We believe the retail environment will continue to be challenging in fiscal 2004. Nevertheless, we remain comfortable with our plan to open 100 new stores this year. We are confident that our continued expansion together with our strong balance sheet and increasingly popular brands will enable us to capitalize on any improvement in economic conditions."
The Company will discuss its fourth quarter results in a conference call scheduled for today, April 9, 2003, at 5 p.m. Eastern Time. The conference call will be simultaneously broadcast live over the Internet at http://www.christopherandbanks.com.
Christopher & Banks Corporation is a Minneapolis-based specialty retailer of women's clothing providing exclusive fashions under the Christopher & Banks and C.J. Banks labels. Currently, the Company operates 449 stores in 37 states, located primarily in the northern half of the United States. For more information on Christopher & Banks Corporation, visit the Company's website at www.christopherandbanks.com.
This release contains forward-looking statements regarding future performance of the Company. The achievement of such results is subject to certain risks and uncertainties, including changes in economic, market and weather conditions, the effect of consumer tastes and spending habits, the realization of expected economies gained through the use of private label and direct import merchandise, management of growth and other factors outside the Company's control, including factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof.
The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that may arise after the date hereof.
CHRISTOPHER & BANKS CORPORATION COMPARATIVE INCOME STATEMENT FOR THE FOURTH QUARTER AND YEAR ENDED MARCH 1, 2003 AND MARCH 2, 2002 (in thousands, except per share data) Quarter Ended Year Ended March 1, March 2, March 1, March 2, 2003 2002 2003 2002 (Unaudited) Net sales $95,392 $82,771 $338,756 $275,853 Merchandise, buying and occupancy 55,268 45,488 191,129 153,661 Gross profit 40,124 37,283 147,627 122,192 Selling, general and administrative 20,921 18,621 76,672 61,330 Depreciation and amortization 2,570 1,995 9,387 7,092 Operating income 16,633 16,667 61,568 53,770 Interest, net 276 160 895 337 Income before income taxes 16,909 16,827 62,463 54,107 Income tax provision 6,450 6,526 23,988 21,251 Net income $10,459 $10,301 $38,475 $32,856 Basic earnings per share: Net income $0.41 $0.41 $1.50 $1.33 Basic shares outstanding 25,622 25,064 25,597 24,692 Diluted earnings per share: Net income $0.40 $0.39 $1.45 $1.26 Diluted shares outstanding 26,175 26,408 26,491 26,147 CHRISTOPHER & BANKS CORPORATION COMPARATIVE BALANCE SHEET (in thousands) March 1, 2003 March 2, 2002 ASSETS Current assets: Cash and cash equivalents $8,279 $40,875 Short-term investments 55,812 -- Merchandise inventory 24,134 18,999 Other current assets 8,665 9,084 Total current assets 96,890 68,958 Property, equipment and improvements, net 69,164 57,724 Other assets 303 1,936 Total assets $166,357 $128,618 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $4,717 $2,487 Accrued liabilities 13,532 11,631 Total current liabilities 18,249 14,118 Other liabilities 4,808 2,524 Stockholders' equity: Common stock 277 270 Additional paid-in capital 52,372 46,236 Retained earnings 106,945 68,470 Treasury stock (16,294) (3,000) Total stockholders' equity 143,300 111,976 Total liabilities and stockholders' equity $166,357 $128,618
Contacts: Bill Prange, Chairman and Chief Executive Officer +1-763-551-5000 Investor Relations: Cara O'Brien or Athan Dounis Media Relations: Stephanie Sampiere all of FD Morgen-Walke, for Christopher & Banks Corporation +1-212-850-5600