Please wait while we load the requested 10-Q report or click the link below:
|November 27, 2018|| |
For more information:
Linda L. Tasseff
|FOR IMMEDIATE RELEASE|| |
Director, Investor Relations
Stein Mart, Inc. Reports Third Quarter 2018 Results
Comparable sales increased 1.4 percent
Operating loss improved by more than $10 million from 2017
Expecting higher fourth quarter operating income driven by gross profit expansion and lower expenses
Year-to-date adjusted EBITDA increased $33 million
JACKSONVILLE, Fla. Stein Mart, Inc. (NASDAQ: SMRT) today announced financial results for the third quarter ended November 3, 2018.
Operating loss for the third quarter was $13.4 million for 2018 compared to an operating loss of $23.9 million for 2017. Third quarter 2018 results include advisory fees related to the extension of our credit agreements, as well as expenses and lower gross profit due to the impact of Hurricanes Florence and Michael. These unanticipated items approximated $3 million.
Net loss for the third quarter of 2018 was $16.6 million or $0.36 per share compared to net loss of $14.6 million or $0.31 per share in 2017. As explained below (see Income Taxes), net loss for 2017 includes an income tax benefit of $10.4 million or $0.22 per share compared to no income tax benefit in 2018.
Adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) for the third quarter of 2018 improved by $11.3 million to negative $2.8 million compared to negative $14.1 million for last years third quarter. Adjusted EBITDA for the first nine months of 2018 increased more than $33 million to $25.9 million from negative $7.4 million for last years first nine months. (See Note 1.)
We are pleased with our second consecutive quarter of comparable sales increases and continued gross profit expansion driven by higher regular priced selling. Our core apparel businesses all performed very well during the quarter, said Hunt Hawkins, Chief Executive Officer. While better than last year, our third quarter pre-tax operating results were lower than we expected due to disruption caused by the hurricanes and fees associated with the successful renegotiation of our credit agreements which expanded our credit limit and extended the term.
We are looking forward to better comparisons against clearance selling that normalized in the fourth quarter last year. This, along with our higher gross profit rate and lower expenses have us well-prepared for a profitable fourth quarter.
Net sales for the third quarter of 2018 were $279.1 million compared with $285.4 million for the third quarter of 2017. Comparable sales for the third quarter of 2018 increased 1.4 percent including sales from licensed departments (see Note 2). Ecommerce sales were up 76 percent over last years third quarter. The decrease in total net sales for the quarter reflects the closing of seven underperforming stores this year.
The following information was filed by Stein Mart Inc (SMRT) on Tuesday, November 27, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.