First Quarter EPS Increase of 21%
Management Raises Fiscal 2012 Earnings Guidance
Announces $50 Million Share Repurchase Program
WARRENDALE, Pa., May 24, 2012 (GLOBE NEWSWIRE) -- rue21, inc. (Nasdaq:RUE) today announced its financial results for the first quarter ended April 28, 2012. First Quarter Results:
Bob Fisch, rue21's President and CEO, stated: "We were pleased to deliver strong results to our shareholders in the first quarter of fiscal 2012, and are looking forward to continuing our momentum into the second quarter and the remainder of the year. We believe rue is well positioned to capitalize on the current color and fashion trends in the industry. In addition to seeing comparable store sales increases on top of strong performance last year, our new stores continue to provide consistent and predictable sales and profit growth. Through our real estate expansion we are gaining market share in small and mid-size markets around the country, and we believe rue is rapidly becoming a favorite retail destination for both guys and girls who want the latest looks at every day great value." Stock Repurchase Program:
rue21's Board of Directors has authorized a share repurchase program granting the Company authority to repurchase up to $50 million of the Company's common stock. Under the stock repurchase program, the Company may repurchase shares in the open market or through privately negotiated transactions. The timing and actual number of shares repurchased under the program will depend on a variety of factors including price, corporate and regulatory requirements, and other market and business conditions.
Mr. Fisch commented: "This announcement of a share repurchase program reflects our financial strength and confidence in our business. With our history of generating predictable significant cash flow and our self-funding new store business model, we are in a position to take advantage of profitable growth opportunities while we also return capital to our shareholders in a disciplined manner." Outlook:
For fiscal 2012, the Company is raising its prior guidance based on first quarter results and expects diluted earnings per share to be in the range of $1.76 to $1.81 versus its previous guidance of $1.74 to $1.79, and as compared to $1.55 in fiscal 2011. This incorporates 25.4 million average diluted shares expected for fiscal 2012 as compared to 25.1 million average diluted shares in fiscal 2011. For the second quarter of fiscal 2012, the Company currently expects low single digit comparable store sales. Diluted earnings per share for the second quarter are expected to be in the range of $0.32 to $0.34. Conference Call Information:
A conference call to discuss first quarter fiscal 2012 financial results is scheduled for today, May 24, 2012 at 4:30 PM Eastern Time. To participate, dial toll-free (888) 504-7966 or 1-719-325-2280 (international). The conference call will also be webcast live at www.rue21.com under the Investor Relations section. A replay of this call will be available on the Investor Relations section of the Company's website, www.rue21.com, within two hours of the conclusion of the call and will remain on the website for ninety days. About rue21, inc.
rue21 is a leading specialty apparel retailer offering exclusive branded merchandise and the newest trends at a great value. rue21 currently operates 809 stores in 46 states. Learn more at www.rue21.com Forward Looking Statements: Certain statements herein, including statements relating to future store openings and growth strategies, are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and actual results of operations may differ materially from historical results or current expectations. Any such
forward-looking statements are subject to various risks and uncertainties, including the strength of the economy, consumer spending, our ability to effectively identify and respond to changing fashion trends, our ability to compete with other retailers, our strategy and expansion plans, implementation of systems upgrades, reliance on key personnel, trade restrictions, events that may affect our vendors or their ability to finance their operations, availability of suitable new store locations and other factors which are set forth in the Company's Annual Report on Form 10-K filed March 27, 2012, and in all filings with the SEC made by the Company subsequent to the filing of the Form 10-K. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
rue21, inc. and subsidiaries Consolidated Balance Sheets
April 28, January 28, April 30,
2012 2012 2011
(Unaudited)
(Unaudited)
(in thousands, except per share data) Assets
Current assets:
Cash and cash equivalents
$ 51,845
$ 41,960
$ 55,587
Short term investments
30,000
30,000
--
Accounts receivable
9,864
6,675
10,222
Merchandise inventory, net
131,892
131,136
105,630
Prepaid expenses and other current assets
14,877
14,338
12,463
Deferred tax assets
6,064
5,121
6,699
Total current assets
244,542
229,230
190,601
Property and equipment, net
126,650
117,798
97,977
Other assets
936
994
971
Total assets
$ 372,128
$ 348,022
$ 289,549 Liabilities and stockholders' equity
Current liabilities:
Accounts payable
$ 104,321
$ 103,914
$ 89,791
Accrued expenses and other current liabilities
18,401
16,570
16,416
Accrued payroll and related taxes
7,715
12,045
9,216
Deferred rent and tenant allowances, current portion
9,324
8,652
7,759
Accrued income and franchise taxes
10,667
1,068
8,157
Total current liabilities
150,428
142,249
131,339
Non-current liabilities:
Deferred rent, tenant allowances and other long-term liabilities
53,190
46,965
40,705
Deferred tax liabilities
7,523
11,585
4,684
Total non-current liabilities
60,713
58,550
45,389
Commitments and Contingencies
Stockholders' equity:
Preferred stock--- par value $0.001 per share, 10,000 shares authorized; none issued or outstanding
—
—
—
Common stock--- par value $0.001 per share; 200,000 shares authorized; 24,493, 24,476 and 24,394 shares issued and outstanding, respectively.
24
24
24
Additional paid in capital
39,858
37,696
32,626
Retained earnings
121,105
109,503
80,171
Total stockholder's equity
160,987
147,223
112,821
Total liabilities and stockholders' equity
$ 372,128
$ 348,022
$ 289,549
rue21, inc. and subsidiaries Consolidated Statements of Income
Thirteen weeks ended
April 28, April 30,
2012 2011
(Unaudited)
(in thousands, except per share data)
Net sales
$ 205,615
$ 172,875
Cost of goods sold (includes certain buying, occupancy and distribution center expenses)
125,934
105,629
Gross profit
79,681
67,246
Selling, general, and administrative expense
53,796
45,373
Depreciation and amortization expense
7,528
6,103
Income from operations
18,357
15,770
Interest income, net
(30)
(22)
Income before income taxes
18,387
15,792
Provision for income taxes
6,785
6,173
Net income
$ 11,602
$ 9,619
Basic income per common share
$ 0.47
$ 0.39
Diluted income per common share
$ 0.46
$ 0.38
Weighted average basic common shares outstanding
24,480
24,383
Weighted average diluted common shares outstanding
25,119
25,063 CONTACT: Joseph Teklits / Jill Gaul
ICR, Inc
203-682-8200
jteklits@icrinc.com
