FORM 10-Q
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended May 2, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 000-21011
STAGE STORES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of 76-0407711
incorporation or organization) (I.R.S. Employer Identifications No.)
10201 MAIN STREET, HOUSTON, TEXAS 77025
(Address of principal executive offices) (Zip Code)
(713) 667-5601
Registrant's telephone number, including area code
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]
The number of shares of common stock of Stage Stores, Inc. outstanding as of
June 2, 1998 was 26,521,142 shares of Common Stock and 1,250,584 shares of Class
B Common Stock.
================================================================================
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
STAGE STORES, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(in thousands, except par values)
<TABLE>
<CAPTION>
January 31,
May 2, 1998 1998
--------- ---------
(unaudited)
ASSETS
<S> <C> <C>
Cash and cash equivalents ................................. $ 20,460 $ 23,315
Undivided interest in accounts receivable trust ........... 55,567 61,211
Merchandise inventories, net .............................. 354,169 303,115
Prepaid expenses .......................................... 25,391 20,417
Other current assets ...................................... 57,712 57,788
--------- ---------
Total current assets ................................ 513,299 465,846
Property, equipment and leasehold improvements, net ....... 194,838 171,654
Goodwill, net ............................................. 94,752 95,486
Other assets .............................................. 26,254 26,410
--------- ---------
Total assets ........................................ $ 829,143 $ 759,396
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable .......................................... $ 88,124 $ 91,799
Accrued interest .......................................... 10,959 2,044
Accrued expenses and other current liabilities ............ 54,342 53,939
--------- ---------
Total current liabilities ........................... 153,425 147,782
Long-term debt including credit facilities ................ 449,652 395,248
Other long-term liabilities ............................... 11,462 11,288
--------- ---------
Total liabilities ................................... 614,539 554,318
--------- ---------
Preferred stock, par value $1.00, non-voting,
3 shares authorized, no shares
issued or outstanding ................................... -- --
Common stock, par value $0.01, 75,000 shares
authorized, 26,608 and 26,500 shares
issued and outstanding, respectively .................... 266 265
Class B common stock, par value $0.01, non-voting,
3,000 shares authorized, 1,250 shares
issued and outstanding .................................. 13 13
Additional paid-in capital ................................ 265,169 264,679
Accumulated deficit ....................................... (50,289) (59,324)
Accumulated other comprehensive income .................... (555) (555)
--------- ---------
Stockholders' equity ................................... 214,604 205,078
--------- ---------
Commitments and contingencies ............................. -- --
--------- ---------
Total liabilities and stockholders' equity .......... $ 829,143 $ 759,396
========= =========
</TABLE>
The accompanying notes are an integral part of this statement.
2
<PAGE>
STAGE STORES, INC.
CONSOLIDATED CONDENSED STATEMENT OF INCOME
(in thousands, except per share amounts)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
-------------------------
May 2, 1998 May 3, 1997
----------- -----------
<S> <C> <C>
Net sales .............................................. $ 272,788 $ 191,512
Cost of sales and related buying,
occupancy and distribution expenses ................. 185,563 129,587
----------- -----------
Gross profit ........................................... 87,225 61,925
Selling, general and administrative expenses ........... 61,630 41,258
Store opening and closure costs ........................ 317 143
----------- -----------
Operating income ....................................... 25,278 20,524
Interest, net .......................................... 10,467 8,942
----------- -----------
Income before income tax ............................... 14,811 11,582
Income tax expense ..................................... 5,776 4,488
----------- -----------
Net income ............................................. $ 9,035 $ 7,094
=========== ===========
BASIC EARNINGS PER COMMON SHARE DATA:
Basic earnings per common share ........................ $ 0.33 $ 0.30
=========== ===========
Basic weighted average common shares outstanding ....... 27,792 23,292
=========== ===========
DILUTED EARNINGS PER COMMON SHARE DATA:
Diluted earnings per common share ...................... $ 0.32 $ 0.30
=========== ===========
Diluted weighted average common shares outstanding ..... 28,507 23,904
=========== ===========
</TABLE>
The accompanying notes are an integral part of this statement.
3
<PAGE>
STAGE STORES, INC.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
--------------------------
May 2, 1998 May 3, 1997
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income .......................................................... $ 9,035 $ 7,094
----------- -----------
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Depreciation and amortization ..................................... 6,290 3,620
Deferred income taxes ............................................. 607 487
Accretion of discount ............................................. 260 146
Amortization of debt issue costs .................................. 603 530
Changes in operating assets and liabilities:
Decrease in undivided interest in accounts receivable trust ..... 5,644 15,290
Increase in merchandise inventories ............................. (51,054) (35,045)
(Increase) decrease in other assets ............................. (6,206) 9,805
Increase (decrease) in accounts payable and accrued liabilities . 5,831 (1,040)
----------- -----------
Total adjustments ............................................. (38,025) (6,207)
----------- -----------
Net cash provided by (used in) operating activities ............. (28,990) 887
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, equipment and leasehold improvements ......... (28,486) (9,097)
----------- -----------
Net cash used in investing activities ........................... (28,486) (9,097)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from working capital facility .............................. 54,300 --
Proceeds from issuance of common stock .............................. 491 20
Payments on long-term debt .......................................... (170) --
Additions to debt issue costs ....................................... -- (79)
----------- -----------
Net cash provided by (used in) financing activities ............. 54,621 (59)
----------- -----------
Net decrease in cash and cash equivalents ........................... (2,855) (8,269)
Cash and cash equivalents:
Beginning of period ............................................... 23,315 18,286
=========== ===========
End of period ..................................................... $ 20,460 $ 10,017
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid ....................................................... $ 840 $ 13,247
=========== ===========
Income taxes paid (refunded) ........................................ $ (2,825) $ 2
=========== ===========
</TABLE>
The accompanying notes are an integral part of this statement.
4
<PAGE>
STAGE STORES, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
Common Stock
-----------------------------------------------
Class B
----------------------
Additional Accumulated
Shares Shares Paid-in Accumulated Comprehensive
Outstanding Amount Outstanding Amount Capital Deficit Income Total
----------- -------- ----------- -------- ---------- ----------- ------------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance, January 31, 1998 26,500 $ 265 1,250 $ 13 $ 264,679 $ (59,324) $ (555) $205,078
Net income .............. -- -- -- -- -- 9,035 -- 9,035
Issuance of stock ....... 108 1 -- -- 490 -- -- 491
----------- -------- ----------- -------- ---------- ----------- ------------- --------
Balance, May 2, 1998 .... 26,608 $ 266 1,250 $ 13 $ 265,169 $ (50,289) $ (555) $214,604
=========== ======== =========== ======== ========== =========== ============= ========
</TABLE>
The accompanying notes are an integral part of this statement.
5
<PAGE>
STAGE STORES, INC.
NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. The accompanying unaudited consolidated condensed financial
statements of Stage Stores, Inc. ("Stage Stores") have been prepared in
accordance with Rule 10-01 of Regulation S-X and do not include all the
information and footnotes required by generally accepted accounting principles
for complete financial statements. Those adjustments, which include only normal
recurring adjustments, that are in the opinion of management, necessary for a
fair presentation of the results of the interim periods, have been made. The
results of operations for such interim periods are not necessarily indicative of
the results of operations for a full year. The unaudited consolidated condensed
financial statements should be read in conjunction with the audited consolidated
financial statements and notes thereto for the year ended January 31, 1998 filed
with Stage Stores's Annual Report on Form 10-K. Certain reclassifications have
been made to prior year amounts to conform with the current year presentation.
The fiscal years discussed herein end on the Saturday nearest to January 31 in
the following calendar year. For example, references to "1998" mean the fiscal
year ended January 30, 1999.
Stage Stores conducts its business primarily through it's wholly
owned subsidiary Specialty Retailers, Inc. ("SRI") which, as of May 2, 1998,
operated 616 family apparel stores predominately located in the central United
States. Stage Stores and SRI are collectively referred to herein as the
"Company".
2. Pursuant to the accounts receivable securitization program (the
"Accounts Receivable Program"), an indirect wholly owned subsidiary of the
Company, SRI Receivables Purchase Co., Inc. ("SRPC") purchases the accounts
receivable generated by the Company's private label credit card program. Such
accounts receivable are transferred to a master trust (the "Trust") which has
issued certain certificates to third parties representing undivided interests in
the Trust. SRPC owns an undivided interest in the accounts receivable not
supporting the certificates issued to third parties by the Trust (the "Retained
Interest"). SRPC is a separate corporate entity from the Company and SRPC's
creditors have a claim on its assets prior to those assets becoming available to
any creditor of the Company.
3. During June 1997, SRI completed an offering of $300.0 million of
long-term indebtedness consisting of $200.0 million in aggregate principal
amount of 8 1/2% Senior Notes due 2005 and $100.0 million in aggregate principal
amount of 9% Senior Subordinated Notes due 2007 (collectively, the "Note
Offering"). The gross proceeds from the issuance of these notes (approximately
$299.7 million) were used to: (i) retire the Company's existing 10% Senior Notes
due 2000 and 11% Senior Subordinated Notes due 2003; (ii) to pay related fees
and expenses; and (iii) to pay costs associated with the acquisition of C.R.
Anthony Company ("CR Anthony"). Concurrently with this transaction, the Company
entered into a new credit facility with a group of lenders (the "Credit
Facility"). The Credit Facility provides for a $100.0 million working capital
and letter of credit facility and a $100.0 million expansion revolving credit
facility. The Credit Facility replaced the Company's existing $75.0 million
credit facility. In connection with the above transactions, the Company recorded
an extraordinary charge during the second quarter of 1997 of $17.4 million, net
of applicable income taxes of $11.1 million, related to the tender premiums and
write off of unamortized debt issue costs associated with the retired debt.
4. During June 1997, the Company acquired CR Anthony which operated
246 family apparel stores in small markets throughout the central and midwestern
United States under the names "Anthony's" and "Anthony's Limited". The Company
issued 3,607,044 shares in exchange for the outstanding common stock of CR
Anthony. The purchase price for CR Anthony (including the common stock issued by
the Company) was approximately $77.2 million, including acquisition costs and
net of cash acquired. CR Anthony had net sales of $288.4 million and net income
of $4.8 million for the year ended February 1, 1997.
5. During September 1997, the Company completed an offering of
approximately 7.1 million shares of common stock at a price of $34 7/8 per
share. 6.4 million shares of this offering were secondary shares representing
the shares owned by two venture capital firms. The remaining 650,000 shares were
issued as primary shares, a result of an over-allotment provision. The shares
sold by the Company resulted in net proceeds to the Company of approximately
$20.7 million, which were used to reduce borrowings outstanding under the
Company's Credit Facility.
6. During the first quarter of 1998, the Company adopted Statement of
Financial Accounting Standards No. 130 "Reporting Comprehensive Income" ("SFAS
130"). SFAS 130 establishes standards for reporting and display of comprehensive
income and its components ( revenues, expenses, gains, and losses) in a full set
of general-purpose financial statements.
6
<PAGE>
7. The consolidating condensed financial information for Stage Stores
and its wholly owned subsidiaries is presented to satisfy disclosure
requirements pursuant to Sections 13 and 15(d) of the Securities Exchange Act of
1934 with respect to wholly owned subsidiaries of Stage Stores who are
individually registrants with the SEC. SRI is the primary obligor under the 8
1/2% Senior Notes due 2005 and 9% Senior Subordinates Notes due 2007 (see Note
3). Stage Stores and Specialty Retailers, Inc. (NV), a wholly owned subsidiary
of Stage Stores which was incorporated during June 1997, are guarantors under
such indebtedness. Stage Stores has not presented separate financial statements
and other disclosures concerning SRI and Specialty Retailers, Inc. (NV) because
management has determined that such information is not material to investors.
SRPC, a wholly owned subsidiary of Stage Stores, securitizes the
credit receivables of the Company. The results of operations of SRPC are not
indicative of the total operating performance of the Company's Accounts
Receivable Program. For a summary of the total consolidated operating
performance of the Company's Accounts Receivable Program, see Note 4 to the
Company's Consolidated Financial Statements filed with Stage Stores's Annual
Report on Form 10-K. The consolidating condensed financial information for Stage
Stores and its wholly-owned subsidiaries are presented below.
CONSOLIDATING CONDENSED BALANCE SHEET
MAY 2, 1998
(in thousands, unaudited)
<TABLE>
<CAPTION>
Specialty SRI
Retailers, Receivables SRI SRI
Inc. Purchase Co. Eliminations Consolidated
--------------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents ..... $ 20,458 $ -- $ -- $ 20,458
Undivided interest in accounts
receivable trust ........... (12,327) 67,894 -- 55,567
Merchandise inventories, net .. 354,169 -- -- 354,169
Prepaid expenses .............. 25,083 308 -- 25,391
Other current assets .......... 49,974 7,738 -- 57,712
--------------- ------------ ------------ -----------
Total current assets ....... 437,357 75,940 -- 513,297
Property, equipment and
leasehold improvements, net 193,466 -- -- 193,466
Goodwill, net ................. 94,752 -- -- 94,752
Other assets .................. 20,779 5,475 -- 26,254
Investment in subsidiaries .... 40,942 -- (40,942) --
=============== ============ ============ ===========
$ 787,296 $ 81,415 $ (40,942) $ 827,769
=============== ============ ============ ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable .............. $ 88,124 $ -- $ -- $ 88,124
Accrued interest .............. 9,536 1,423 -- 10,959
Accrued expenses and other
current liabilities ........ 52,675 1,400 -- 54,075
--------------- ------------ ------------ -----------
Total current liabilities .. 150,335 2,823 -- 153,158
Long-term debt ................ 419,652 30,000 -- 449,652
Intercompany notes/advances ... 159,514 7,650 -- 167,164
Other long-term liabilities ... 10,468 -- -- 10,468
--------------- ------------ ------------ -----------
Total liabilities .......... 739,969 40,473 -- 780,442
--------------- ------------ ------------ -----------
Preferred stock ............... -- -- -- --
Common stock .................. -- -- -- --
Class B common stock .......... -- -- -- --
Additional paid-in capital .... 3,317 35,563 (35,563) 3,317
Accumulated earnings (deficit) 44,565 5,379 (5,379) 44,565
Accumulated other comprehensive
income ..................... (555) -- -- (555)
--------------- ------------ ------------ -----------
Stockholders' equity ....... 47,327 40,942 (40,942) 47,327
=============== ============ ============ ===========
$ 787,296 $ 81,415 $ (40,942) $ 827,769
=============== ============ ============ ===========
<CAPTION>
Specialty
Stage Retailers, Stage Stores
Stores, Inc. Inc. (NV) Eliminations Consolidated
------------ --------------- ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents ..... $ 2 $ -- $ -- $ 20,460
Undivided interest in accounts
receivable trust ........... -- -- -- 55,567
Merchandise inventories, net .. -- -- -- 354,169
Prepaid expenses .............. -- -- -- 25,391
Other current assets .......... -- -- -- 57,712
------------ --------------- ------------ ------------
Total current assets ....... 2 -- -- 513,299
Property, equipment and
leasehold improvements, net -- 1,372 -- 194,838
Goodwill, net ................. -- -- -- 94,752
Other assets .................. -- -- -- 26,254
Investment in subsidiaries .... 214,131 -- (214,131) --
============ =============== ============ ============
$ 214,133 $ 1,372 $ (214,131) $ 829,143
============ =============== ============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable .............. $ -- $ -- $ -- $ 88,124
Accrued interest .............. -- -- -- 10,959
Accrued expenses and other
current liabilities ........ 267 -- -- 54,342
------------ --------------- ------------ ------------
Total current liabilities .. 267 -- -- 153,425
Long-term debt ................ -- -- -- 449,652
Intercompany notes/advances ... (1,732) (165,432) -- --
Other long-term liabilities ... 994 -- -- 11,462
------------ --------------- ------------ ------------
Total liabilities .......... (471) (165,432) -- 614,539
------------ --------------- ------------ ------------
Preferred stock ............... -- -- -- --
Common stock .................. 266 -- -- 266
Class B common stock .......... 13 -- -- 13
Additional paid-in capital .... 265,169 159,002 (162,319) 265,169
Accumulated earnings (deficit) (50,289) 7,802 (52,367) (50,289)
Accumulated other comprehensive
income ..................... (555) -- 555 (555)
------------ --------------- ------------ ------------
Stockholders' equity ....... 214,604 166,804 (214,131) 214,604
============ =============== ============ ============
$ 214,133 $ 1,372 $ (214,131) $ 829,143
============ =============== ============ ============
</TABLE>
7
<PAGE>
CONSOLIDATING CONDENSED BALANCE SHEET
JANUARY 31, 1998
(in thousands, unaudited)
<TABLE>
<CAPTION>
Specialty SRI
Retailers, Receivables SRI SRI
Inc. Purchase Co. Eliminations Consolidated
--------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents ...... $ 23,299 $ -- $ -- $ 23,299
Undivided interest in accounts
receivable trust ............ (11,234) 72,445 -- 61,211
Merchandise inventories, net ... 303,115 -- -- 303,115
Prepaid expenses ............... 19,944 473 -- 20,417
Other current assets ........... 49,980 7,808 -- 57,788
--------------- ------------ ------------ ------------
Total current assets ........ 385,104 80,726 -- 465,830
Property, equipment and
leasehold improvements, net . 170,401 -- -- 170,401
Goodwill, net .................. 95,486 -- -- 95,486
Other assets ................... 20,653 5,757 -- 26,410
Investment in subsidiaries ..... 40,312 -- (40,312) --
--------------- ------------ ------------ ------------
$ 711,956 $ 86,483 $ (40,312) $ 758,127
=============== ============ ============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable ............... $ 91,799 $ -- $ -- $ 91,799
Accrued interest ............... 1,556 488 -- 2,044
Accrued expenses and other
current liabilities ......... 53,545 142 -- 53,687
--------------- ------------ ------------ ------------
Total current liabilities ... 146,900 630 -- 147,530
Long-term debt ................. 365,248 30,000 -- 395,248
Intercompany notes/advances .... 149,258 14,324 -- 163,582
Other long-term liabilities .... 9,874 1,217 -- 11,091
--------------- ------------ ------------ ------------
Total liabilities ........... 671,280 46,171 -- 717,451
--------------- ------------ ------------ ------------
Preferred stock ................ -- -- -- --
Common stock ................... -- -- -- --
Class B common stock ........... -- -- -- --
Additional paid-in capital ..... 3,317 34,556 (34,556) 3,317
Accumulated earnings (deficit) . 37,914 5,756 (5,756) 37,914
Accumulated other comprehensive
income ...................... (555) -- -- (555)
--------------- ------------ ------------ ------------
Stockholders' equity ........ 40,676 40,312 (40,312) 40,676
=============== ============ ============ ============
$ 711,956 $ 86,483 $ (40,312) $ 758,127
=============== ============ ============ ============
<CAPTION>
Specialty
Stage Retailers, Inc. Stage Stores
Stores, Inc. (NV) Eliminations Consolidated
------------ --------------- ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents ...... $ 16 $ -- $ -- $ 23,315
Undivided interest in accounts
receivable trust ............ -- -- -- 61,211
Merchandise inventories, net ... -- -- -- 303,115
Prepaid expenses ............... -- -- -- 20,417
Other current assets ........... -- -- -- 57,788
------------ --------------- ------------ ------------
Total current assets ........ 16 -- -- 465,846
Property, equipment and
leasehold improvements, net . -- 1,253 -- 171,654
Goodwill, net .................. -- -- -- 95,486
Other assets ................... -- -- -- 26,410
Investment in subsidiaries ..... 205,075 -- (205,075) --
------------ --------------- ------------ ------------
$ 205,091 $ 1,253 $ (205,075) $ 759,396
============ =============== ============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable ............... $ -- $ -- $ -- $ 91,799
Accrued interest ............... -- -- -- 2,044
Accrued expenses and other
current liabilities ......... 252 -- -- 53,939
------------ --------------- ------------ ------------
Total current liabilities ... 252 -- -- 147,782
Long-term debt ................. -- -- -- 395,248
Intercompany notes/advances .... (436) (163,146) -- --
Other long-term liabilities .... 197 -- -- 11,288
------------ --------------- ------------ ------------
Total liabilities ........... 13 (163,146) -- 554,318
------------ --------------- ------------ ------------
Preferred stock ................ -- -- -- --
Common stock ................... 265 -- -- 265
Class B common stock ........... 13 -- -- 13
Additional paid-in capital ..... 264,679 159,002 (162,319) 264,679
Accumulated earnings (deficit) . (59,324) 5,397 (43,311) (59,324)
Accumulated other comprehensive
income ...................... (555) -- 555 (555)
------------ --------------- ------------ ------------
Stockholders' equity ........ 205,078 164,399 (205,075) 205,078
============ =============== ============ ============
$ 205,091 $ 1,253 $ (205,075) $ 759,396
============ =============== ============ ============
</TABLE>
8
<PAGE>
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
THREE MONTHS ENDED MAY 2, 1998
(in thousands, unaudited)
<TABLE>
<CAPTION>
Specialty SRI
Retailers, Receivables SRI SRI
Inc. Purchase Co. Eliminations Consolidated
--------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales ...................... $ 272,788 $ -- $ -- $ 272,788
Cost of sales and related
buying, occupancy and
distribution expenses ....... 185,563 -- -- 185,563
--------------- ------------ ------------ ------------
Gross profit ................... 87,225 -- -- 87,225
Selling, general and
administrative expenses ..... 61,887 (316) -- 61,571
Store opening and closure costs . 317 -- -- 317
--------------- ------------ ------------ ------------
Operating income ............... 25,021 316 -- 25,337
Interest expense, net .......... 14,890 (685) -- 14,205
--------------- ------------ ------------ ------------
Income (loss) before income
taxes ...................... 10,131 1,001 -- 11,132
Income tax expense ............. 4,110 371 -- 4,481
--------------- ------------ ------------ ------------
Income (loss) before equity in
net earnings of subsidiaries 6,021 630 -- 6,651
Equity in net earnings of
subsidiaries ................ 630 -- (630) --
--------------- ------------ ------------ ------------
Net income ..................... $ 6,651 $ 630 $ (630) $ 6,651
=============== ============ ============ ============
<CAPTION>
Specialty
Stage Retailers, Inc. Stage Stores
Stores, Inc. (NV) Eliminations Consolidated
------------ --------------- ------------ ------------
<S> <C> <C> <C> <C>
Net sales ...................... $ -- $ -- $ -- $ 272,788
Cost of sales and related
buying, occupancy and
distribution expenses ....... -- -- -- 185,563
------------ --------------- ------------ ------------
Gross profit ................... -- -- -- 87,225
Selling, general and
administrative expenses ..... 21 38 -- 61,630
Store opening and closure costs . -- -- -- 317
------------ --------------- ------------ ------------
Operating income ............... (21) (38) -- 25,278
Interest expense, net .......... -- (3,738) -- 10,467
------------ --------------- ------------ ------------
Income (loss) before income
taxes ...................... (21) 3,700 -- 14,811
Income tax expense ............. -- 1,295 -- 5,776
------------ --------------- ------------ ------------
Income (loss) before equity in
net earnings of subsidiaries (21) 2,405 -- 9,035
Equity in net earnings of
subsidiaries ................ 9,056 -- (9,056) --
------------ --------------- ------------ ------------
Net income ..................... $ 9,035 $ 2,405 $ (9,056) $ 9,035
============ =============== ============ ============
</TABLE>
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
THREE MONTHS ENDED MAY 3, 1997
(in thousands, unaudited)
<TABLE>
<CAPTION>
Specialty SRI
Retailers, Receivables SRI SRI
Inc. Purchase Co. Eliminations Consolidated
--------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales ...................... $ 191,512 $ -- $ -- $ 191,512
Cost of sales and related
buying, occupancy and
distribution expenses ....... 129,587 -- -- 129,587
--------------- ------------ ------------ ------------
Gross profit ................... 61,925 -- -- 61,925
Selling, general and
administrative expenses ..... 42,833 (1,585) -- 41,248
Store opening and closure costs . 143 -- -- 143
--------------- ------------ ------------ ------------
Operating income ............... 18,949 1,585 -- 20,534
Interest expense, net .......... 8,882 60 -- 8,942
--------------- ------------ ------------ ------------
Income (loss) before income
taxes ...................... 10,067 1,525 -- 11,592
Income tax expense ............. 3,921 567 -- 4,488
--------------- ------------ ------------ ------------
Income (loss) before equity in
net earnings of subsidiaries . 6,146 958 -- 7,104
Equity in net earnings of
subsidiaries ................ 958 -- (958) --
--------------- ------------ ------------ ------------
Net income ..................... $ 7,104 $ 958 $ (958) $ 7,104
=============== ============ ============ ============
<CAPTION>
Stage Stage Stores
Stores, Inc. Eliminations Consolidated
------------ --------------- ------------
<S> <C> <C> <C>
Net sales ...................... $ -- $ -- $ 191,512
Cost of sales and related
buying, occupancy and
distribution expenses ....... -- -- 129,587
------------ --------------- ------------
Gross profit ................... -- 61,925
Selling, general and
administrative expenses ..... 10 -- 41,258
Store opening and closure costs . -- -- 143
------------ --------------- ------------
Operating income ............... (10) -- 20,524
Interest expense, net .......... -- -- 8,942
------------ --------------- ------------
Income (loss) before income
taxes ...................... (10) -- 11,582
Income tax expense ............. -- -- 4,488
------------ --------------- ------------
Income (loss) before equity in
net earnings of subsidiaries . (10) -- 7,094
Equity in net earnings of
subsidiaries ................ 7,104 (7,104) --
------------ --------------- ------------
Net income ..................... $ 7,094 $ (7,104) $ 7,094
============ =============== ============
</TABLE>
9
<PAGE>
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MAY 2, 1998
(in thousands, unaudited)
<TABLE>
<CAPTION>
Specialty SRI
Retailers, Receivables SRI SRI
Inc. Purchase Co. Eliminations Consolidated
--------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash used in operating
activities .................... $ (24,265) $ (4,711) $ -- $ (28,976)
--------------- ------------ ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Intercompany notes/advances ....... 491 -- -- 491
Additions to property, equipment
and leasehold improvements ..... (28,486) -- -- (28,486)
Proceeds from the sales of ........ (5,718) 5,718
accounts receivable, net ....... 1,007 -- (1,007) --
Dividend from subsidiary
--------------- ------------ ------------ ------------
Net cash provided by (used in)
investing activities ......... (32,706) 5,718 (1,007) (27,995)
--------------- ------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from working capital
facility ....................... 54,300 -- -- 54,300
Proceeds from issuance of common
stock .......................... -- -- -- --
Payments on long-term debt ........ (170) -- -- (170)
Dividend paid ..................... -- (1,007) 1,007 --
--------------- ------------ ------------ ------------
Net cash provided by (used in)
financing activities .......... 54,130 (1,007) 1,007 54,130
--------------- ------------ ------------ ------------
Net decrease in cash and cash
equivalents .................... (2,841) -- -- (2,841)
Cash and cash equivalents:
Beginning of period ............ 23,299 -- -- 23,299
--------------- ------------ ------------ ------------
End of period .................. $ 20,458 $ -- $ -- $ 20,458
=============== ============ ============ ============
<CAPTION>
Specialty
Stage Retailers, Inc. Stage Stores
Stores, Inc. (NV) Eliminations Consolidated
------------ --------------- ------------ ------------
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash used in operating
activities .................... $ (14) $ -- $ -- $ (28,990)
------------ --------------- ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Intercompany notes/advances ....... (491) -- -- --
Additions to property, equipment
and leasehold improvements ..... -- -- -- (28,486)
Proceeds from the sales of ........
accounts receivable, net ....... -- -- -- --
Dividend from subsidiary
------------ --------------- ------------ ------------
Net cash provided by (used in)
investing activities ......... (491) -- -- (28,486)
------------ --------------- ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from working capital
facility ....................... -- -- -- 54,300
Proceeds from issuance of common
stock .......................... 491 -- 491
Payments on long-term debt ........ -- -- -- (170)
Dividend paid ..................... -- -- -- --
------------ --------------- ------------ ------------
Net cash provided by (used in)
financing activities .......... 491 -- -- 54,621
------------ --------------- ------------ ------------
Net decrease in cash and cash
equivalents .................... (14) -- -- (2,855)
Cash and cash equivalents:
Beginning of period ............ 16 -- -- 23,315
------------ --------------- ------------ ------------
End of period .................. $ 2 $ -- $ -- $ 20,460
============ =============== ============ ============
</TABLE>
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MAY 3, 1997
(in thousands, unaudited)
<TABLE>
<CAPTION>
Specialty SRI
Retailers, Receivables SRI SRI
Inc. Purchase Co. Eliminations Consolidated
--------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by (used in)
operating activities .......... $ 16,269 $ (15,382) $ -- $ 887
--------------- ------------ ------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Intercompany notes/advances ....... 20 -- -- 20
Additions to property, equipment
and leasehold improvements ..... (9,097) -- -- (9,097)
Proceeds from the sales of
accounts receivable, net ....... (15,405) 15,405 -- --
--------------- ------------ ------------ -----------
Net cash used in investing
activities .................... (24,482) 15,405 -- (9,077)
--------------- ------------ ------------ -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of
Common stock ...................... -- -- -- --
Additions to debt issue costs ..... (56) (23) -- (79)
--------------- ------------ ------------ -----------
Net cash provided by (used in)
financing activities .......... (56) (23) -- (79)
--------------- ------------ ------------ -----------
Net decrease in cash and cash
equivalents .................... (8,269) -- -- (8,269)
Cash and cash equivalents:
Beginning of period ............ 18,270 -- -- 18,270
--------------- ------------ ------------ ------------
End of period .................. $ 10,001 $ -- $ -- $ 10,001
=============== ============ ============ ============
<CAPTION>
Stage Stage Stores
Stores, Inc. Eliminations Consolidated
------------- --------------- ------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by (used in)
operating activities .......... $ -- $ -- $ 887
--------------- ------------ --------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Intercompany notes/advances ....... (20) -- --
Additions to property, equipment
and leasehold improvements ..... -- -- (9,097)
Proceeds from the sales of
accounts receivable, net ....... -- -- --
--------------- ------------ --------------
Net cash used in investing
activities .................... (20) -- (9,097)
--------------- ------------ --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of
Common stock ...................... 20 -- 20
Additions to debt issue costs ..... -- -- (79)
--------------- ------------ --------------
Net cash provided by (used in)
financing activities .......... 20 -- (59)
--------------- ------------ --------------
Net decrease in cash and cash
equivalents .................... -- -- (8,269)
Cash and cash equivalents:
Beginning of period ............ 16 -- 18,286
--------------- ------------ --------------
End of period .................. $ 16 $ -- $ 10,017
============ ============= ===============
</TABLE>
10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS
OF OPERATIONS
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995.
Certain items discussed or incorporated by reference herein contain
forward-looking statements that involve risks and uncertainties including, but
not limited to, the seasonality of demand for apparel which can be affected by
weather patterns, levels of competition, competitors' marketing strategies,
changes in fashion trends and availability of product, the failure to achieve
the expected results of merchandising and marketing plans or store opening or
closing plans. The occurrence of any of the above could have a material adverse
impact on the Company's operating results. Certain information herein contains
estimates which represent management's best judgement as to the date hereof
based on information currently available; however, the Company does not intend
to update this information to reflect developments or information obtained after
the date hereof and disclaims any legal obligation to the contrary.
GENERAL
OVERVIEW. The Company operates the store of choice for well known
national brand name family apparel in over 500 small towns and communities
predominately across the central United States. The Company has recognized the
high level of brand awareness and demand for fashionable, quality apparel by
consumers in small markets and has identified these markets as a profitable and
underserved niche. The Company has developed a unique franchise focused on these
small markets, differentiating itself from the competition by offering a broad
range of brand name merchandise with a high level of customer service in
convenient locations.
The financial information, discussion and analysis that follow should
be read in conjunction with the Company's Consolidated Financial Statements
included in the Company's 1997 Annual Report on Form 10-K.
RESULTS OF OPERATIONS
Sales for the first quarter of 1998 increased 42.5% to $272.8 million
from $191.5 million in the comparable period of 1997. The increase in first
quarter sales was primarily due to approximately $13.2 million of sales from
stores opened during 1998 and 1997 which are not included in comparable store
sales, $61.8 million of sales from the recently acquired CR Anthony stores, as
well as a 3.4% increase in first quarter comparable store sales.
Gross profit increased 40.9% to $87.2 million for the first quarter
of 1998 from $61.9 million in the comparable period of 1997. Gross profit as a
rate of sales decreased to 32.0% for the first quarter of 1998 from 32.3% in
1997 as a result of the fixed cost component of gross margin associated with the
105 CR Anthony stores with no offsetting sales volume while they were closed
during their conversion to the Company's format and trade names as well as a
shift in the promotional calendar.
Selling, general and administrative expenses for the first quarter of
1998 increased 49.2% to $61.6 million from $41.3 million in the comparable
period of 1997. Selling, general and administrative expenses as a percentage of
sales for the first quarter of 1998 increased to 22.6% from 21.6% in the
comparable period of 1997 due primarily to the cost associated with the 105 CR
Anthony stores which were closed during a portion of the first quarter in order
to convert them to the Company's format and trade names. Credit card receivable
charge-offs with respect to the Company's proprietary credit card program, the
results of which are included in SG&A, as a percentage of credit card sales for
the first quarter of 1998 decreased as compared to the first quarter of 1997 as
a result of a continued focus on controlling bad debts. This decrease in
charge-offs was offset by a reduction in the service charge and late fee income
associated with the program during the first quarter of 1998 due to the
Company's efforts in controlling bad debts.
Store opening and closure costs for the first quarter of 1998
increased to $0.3 million from $0.1 million for the same period of 1997 due to
an increase in the number of stores opened during the first three months of 1998
as compared to the same period in 1997.
Operating income for the first quarter of 1998 increased 23.4% to
$25.3 million from $20.5 million for the first quarter of 1998. Operating income
as a percent of sales for the first quarter of 1998 was 9.3% as compared to
10.7% for the first quarter of 1997, due to the incremental costs associated
with the 105 CR Anthony stores which were closed during a portion of the first
quarter in order to convert these stores to the Company's format and trade
names.
11
<PAGE>
Net interest expense for the first quarter of 1998 increased 18.0% to
$10.5 million from $8.9 million for the comparable period in 1997 due to higher
levels of borrowings associated with the Company's expansion program.
As a result of the foregoing, the Company's net income for the first
quarter of 1998 increased to $9.0 million as compared to $7.1 million for the
comparable period in 1997.
SEASONALITY AND INFLATION
The Company's business is seasonal and its quarterly sales and
profits are traditionally lower during the first three quarters (February
through October) and higher during the fourth quarter (November through
January). In addition, working capital requirements fluctuate throughout the
year, increasing substantially in October and November due to requirements for
significantly higher inventory levels in anticipation of the holiday season.
The following table shows certain unaudited financial information for
the Company by quarter (in thousands):
<TABLE>
<CAPTION>
1998 1997
--------- -------------------------------------------------
Q1 Q1 Q2 Q3 Q4
--------- --------- --------- --------- ---------
(dollars in thousands)
<S> <C> <C> <C> <C> <C>
Net sales ................. $ 272,788 $ 191,512 $ 238,137 $ 274,269 $ 369,398
Gross profit .............. 87,225 61,925 73,902 86,822 120,488
Operating income .......... 25,278 20,524 19,736 15,789 38,391
Quarters' operating income
as a percent of total ... -- 22% 21% 17% 40%
Income before extraordinary
items ................... $ 9,035 $ 7,094 $ 6,246 $ 3,673 $ 17,527
Net income (loss) ......... $ 9,035 $ 7,094 $ (11,134) $ 3,523 $ 16,762
</TABLE>
The Company does not believe that inflation had a material effect on
its results of operations during the past two years. However, there can be no
assurance that the Company's business will not be affected by inflation in the
future.
LIQUIDITY AND CAPITAL RESOURCES
Total working capital increased $41.8 million to $359.9 million at
May 2, 1998 from $318.1 million at January 31, 1998. The most significant
changes in working capital were: (i) an increase in inventories associated with
the 105 CR Anthony stores which the Company converted to its format and trade
names during the first half of 1998 as well as the seasonal build of inventories
in the Company's other stores, (ii) a decrease in accounts receivable as a
result of the liquidation of accounts receivable generated during the Christmas
season; and (iii) the timing of interest payments on the Company's long-term
debt. Prepaid expenses increased primarily due to the prepaid expenses
associated with new store openings and the conversion of the CR Anthony stores.
The Company's primary capital requirements are for working capital,
debt service and capital expenditures. Based upon the current capital structure,
management anticipates cash interest payments to be approximately $40.0 million
during each of 1998 and 1999. Capital expenditures are generally for new store
openings, remodeling of existing stores and facilities and customary store
maintenance. Capital expenditures for the first three months of 1998 were $28.5
million as compared to $9.1 million for the comparable period of 1997 as a
result of an increase in the number of new stores opened as well as the
conversion of the remaining CR Anthony stores to the Company's format and trade
names. Management expects capital expenditures to be approximately $66.0 million
during 1998, consisting primarily of 55 new store openings, remodeling of
existing stores, the conversion of the majority of the remaining CR Anthony
stores to the Company's format and the implementation of a new merchandising
system. Required aggregate principal payments on debt total $2.7 million and
$4.9 million for 1998 and 1999, respectively.
12
<PAGE>
The Company's current short-term liquidity needs are provided by (i)
existing cash balances, (ii) operating cash flows, (iii) the Accounts Receivable
Program and (iv) the Credit Facility. The Company expects to fund its long-term
liquidity needs from its operating cash flows, the issuance of debt and/or
equity securities, the securitization of its accounts receivable and bank
borrowings. Outstanding borrowings under the Credit Facility were $100.0 million
at May 2, 1998 as compared to $45.7 million at January 31, 1998. The Company had
$100.0 million of availability under the Credit Facility at May 2, 1998. The
outstanding balances under the revolver certificates associated with the
Accounts Receivable Program were $70.0 million and $77.0 million at May 2, 1998
and January 31, 1998, respectively, while outstanding balances under term
certificates were $165.0 million at both May 2, 1998 and January 31, 1998.
Management believes that funds provided by operations, together with
funds available under the Credit Facility and the Accounts Receivable Program
will be adequate to meet the Company's anticipated requirements for working
capital, interest payments, planned capital expenditures and principal payments
on debt. Estimates as to working capital needs and other expenditures may be
materially affected if the foregoing sources are not available or do not
otherwise provide sufficient funds to meet the Company's obligations.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
27.1 Financial Data Schedule.
27.2 Restated Financial Data Schedule for Form 10-Q for the quarterly period
ended November 1, 1997.
27.3 Restated Financial Data Schedule for Form 10-Q for the quarterly period
ended August 2, 1997.
27.4 Restated Financial Data Schedule for Form 10-Q for the quarterly period
ended May 3, 1997.
27.5 Restated Financial Data Schedule for Form 10-K for the fiscal year ended
February 1, 1997.
27.6 Restated Financial Data Schedule for Form 10-Q for the quarterly period
ended November 2, 1996.
27.7 Restated Financial Data Schedule for Form 10-Q for the quarterly period
ended August 3, 1996.
27.8 Restated Financial Data Schedule for Form 10-Q for the quarterly period
ended May 4, 1996.
27.9 Restated Financial Data Schedule for Form 10-K for the fiscal year ended
February 3, 1996.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
STAGE STORES, INC.
JUNE 10, 1998 /S/ CARL E. TOOKER
(Date) Carl E. Tooker
Chairman, Chief Executive Officer
and President
(principal executive officer)
JUNE 10, 1998 /S/ JAMES A. MARCUM
(Date) James A. Marcum
Vice Chairman and
Chief Financial Officer
(principal financial and accounting
officer)
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE STAGE STORES, INC. CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-30-1999
<PERIOD-END> MAY-2-1998
<CASH> 20,460
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 354,169
<CURRENT-ASSETS> 513,299
<PP&E> 194,838
<DEPRECIATION> 0
<TOTAL-ASSETS> 829,143
<CURRENT-LIABILITIES> 153,425
<BONDS> 449,652
0
0
<COMMON> 279
<OTHER-SE> 214,325
<TOTAL-LIABILITY-AND-EQUITY> 829,143
<SALES> 272,788
<TOTAL-REVENUES> 272,788
<CGS> 185,563
<TOTAL-COSTS> 185,563
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 10,467
<INCOME-PRETAX> 14,811
<INCOME-TAX> 5,776
<INCOME-CONTINUING> 9,035
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,035
<EPS-PRIMARY> 0.33
<EPS-DILUTED> 0.32
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE STAGE STORES, INC. CONSOLIDATED FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-31-1998
<PERIOD-END> NOV-1-1997
<CASH> 15,274
<SECURITIES> 0
<RECEIVABLES> 64,431
<ALLOWANCES> 0
<INVENTORY> 330,477
<CURRENT-ASSETS> 482,252
<PP&E> 154,707
<DEPRECIATION> 11,220
<TOTAL-ASSETS> 780,559
<CURRENT-LIABILITIES> 177,785
<BONDS> 398,207
0
0
<COMMON> 278
<OTHER-SE> 184,970
<TOTAL-LIABILITY-AND-EQUITY> 780,559
<SALES> 703,918
<TOTAL-REVENUES> 703,918
<CGS> 481,269
<TOTAL-COSTS> 163,752
<OTHER-EXPENSES> 2,848
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 28,158
<INCOME-PRETAX> 27,891
<INCOME-TAX> 10,878
<INCOME-CONTINUING> 17,013
<DISCONTINUED> 0
<EXTRAORDINARY> (17,530)
<CHANGES> 0
<NET-INCOME> (517)
<EPS-PRIMARY> (0.02)
<EPS-DILUTED> (0.02)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE STAGE STORES, INC. CONSOLIDATED FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-31-1998
<PERIOD-END> AUG-2-1997
<CASH> 18,929
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 258,488
<CURRENT-ASSETS> 387,632
<PP&E> 138,383
<DEPRECIATION> 0
<TOTAL-ASSETS> 662,677
<CURRENT-LIABILITIES> 126,017
<BONDS> 356,877
0
0
<COMMON> 270
<OTHER-SE> 160,465
<TOTAL-LIABILITY-AND-EQUITY> 662,677
<SALES> 191,512
<TOTAL-REVENUES> 429,649
<CGS> 293,822
<TOTAL-COSTS> 95,567
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 18,391
<INCOME-PRETAX> 21,869
<INCOME-TAX> 8,529
<INCOME-CONTINUING> 13,340
<DISCONTINUED> 0
<EXTRAORDINARY> (17,380)
<CHANGES> 0
<NET-INCOME> (4,040)
<EPS-PRIMARY> (0.17)
<EPS-DILUTED> (0.16)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE STAGE STORES, INC. CONSOLIDATED FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-31-1998
<PERIOD-END> MAY-3-1997
<CASH> 10,017
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 222,762
<CURRENT-ASSETS> 336,401
<PP&E> 116,687
<DEPRECIATION> 0
<TOTAL-ASSETS> 515,193
<CURRENT-LIABILITIES> 98,351
<BONDS> 298,599
0
0
<COMMON> 233
<OTHER-SE> (70,684)
<TOTAL-LIABILITY-AND-EQUITY> 515,193
<SALES> 191,512
<TOTAL-REVENUES> 191,512
<CGS> 129,587
<TOTAL-COSTS> 41,401
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,942
<INCOME-PRETAX> 11,582
<INCOME-TAX> 4,488
<INCOME-CONTINUING> 7,094
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,094
<EPS-PRIMARY> 0.30
<EPS-DILUTED> 0.30
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE STAGE STORES, INC. CONSOLIDATED FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> FEB-1-1997
<PERIOD-END> FEB-1-1997
<CASH> 18,286
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 187,717
<CURRENT-ASSETS> 335,162
<PP&E> 111,189
<DEPRECIATION> 0
<TOTAL-ASSETS> 509,283
<CURRENT-LIABILITIES> 99,943
<BONDS> 298,453
0
0
<COMMON> 233
<OTHER-SE> (77,778)
<TOTAL-LIABILITY-AND-EQUITY> 509,283
<SALES> 776,550
<TOTAL-REVENUES> 776,550
<CGS> 532,563
<TOTAL-COSTS> 175,417
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 45,954
<INCOME-PRETAX> 22,616
<INCOME-TAX> 8,594
<INCOME-CONTINUING> 14,022
<DISCONTINUED> 0
<EXTRAORDINARY> (16,081)
<CHANGES> 0
<NET-INCOME> (2,059)
<EPS-PRIMARY> (0.13)
<EPS-DILUTED> (0.13)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE STAGE STORES, INC. CONSOLIDATED FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> FEB-1-1997
<PERIOD-END> NOV-2-1996
<CASH> 16,443
<SECURITIES> 0
<RECEIVABLES> 59,802
<ALLOWANCES> 0
<INVENTORY> 214,965
<CURRENT-ASSETS> 317,329
<PP&E> 111,088
<DEPRECIATION> 0
<TOTAL-ASSETS> 501,686
<CURRENT-LIABILITIES> 101,229
<BONDS> 300,824
0
0
<COMMON> 233
<OTHER-SE> (88,788)
<TOTAL-LIABILITY-AND-EQUITY> 501,686
<SALES> 528,489
<TOTAL-REVENUES> 528,489
<CGS> 363,577
<TOTAL-COSTS> 122,600
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 36,849
<INCOME-PRETAX> 5,463
<INCOME-TAX> 2,208
<INCOME-CONTINUING> 3,255
<DISCONTINUED> 0
<EXTRAORDINARY> 15,806
<CHANGES> 0
<NET-INCOME> (12,551)
<EPS-PRIMARY> (0.92)
<EPS-DILUTED> (0.89)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE STAGE STORES, INC. CONSOLIDATED FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> FEB-1-1997
<PERIOD-END> AUG-3-1996
<CASH> 18,940
<SECURITIES> 0
<RECEIVABLES> 64,684
<ALLOWANCES> 0
<INVENTORY> 167,769
<CURRENT-ASSETS> 281,219
<PP&E> 106,464
<DEPRECIATION> 0
<TOTAL-ASSETS> 463,240
<CURRENT-LIABILITIES> 100,101
<BONDS> 417,562
0
0
<COMMON> 132
<OTHER-SE> (72,717)
<TOTAL-LIABILITY-AND-EQUITY> 463,240
<SALES> 345,927
<TOTAL-REVENUES> 345,927
<CGS> 237,223
<TOTAL-COSTS> 84,636
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 24,296
<INCOME-PRETAX> 5,916
<INCOME-TAX> 2,396
<INCOME-CONTINUING> 3,520
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,520
<EPS-PRIMARY> 0.27
<EPS-DILUTED> 0.26
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE STAGE STORES, INC. CONSOLIDATED FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> FEB-1-1997
<PERIOD-END> MAY-4-1997
<CASH> 10,412
<SECURITIES> 0
<RECEIVABLES> 50,587
<ALLOWANCES> 0
<INVENTORY> 166,303
<CURRENT-ASSETS> 250,754
<PP&E> 96,901
<DEPRECIATION> 0
<TOTAL-ASSETS> 406,612
<CURRENT-LIABILITIES> 79,088
<BONDS> 383,667
0
0
<COMMON> 131
<OTHER-SE> (73,585)
<TOTAL-LIABILITY-AND-EQUITY> 406,612
<SALES> 163,177
<TOTAL-REVENUES> 163,177
<CGS> 111,096
<TOTAL-COSTS> 38,949
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 11,714
<INCOME-PRETAX> 4,457
<INCOME-TAX> 1,805
<INCOME-CONTINUING> 2,652
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,652
<EPS-PRIMARY> 0.20
<EPS-DILUTED> 0.20
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE RESTATED FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE STAGE STORES, INC. CONSOLIDATED FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> FEB-3-1996
<PERIOD-END> FEB-3-1996
<CASH> 20,273
<SECURITIES> 0
<RECEIVABLES> 68,500
<ALLOWANCES> 2,760
<INVENTORY> 150,032
<CURRENT-ASSETS> 260,502
<PP&E> 157,471
<DEPRECIATION> 64,353
<TOTAL-ASSETS> 412,333
<CURRENT-LIABILITIES> 90,394
<BONDS> 380,039
0
0
<COMMON> 130
<OTHER-SE> (72,444)
<TOTAL-LIABILITY-AND-EQUITY> 412,333
<SALES> 682,624
<TOTAL-REVENUES> 682,624
<CGS> 468,347
<TOTAL-COSTS> 163,314
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 4,905
<INTEREST-EXPENSE> 44,770
<INCOME-PRETAX> 17,497
<INCOME-TAX> 6,767
<INCOME-CONTINUING> 10,730
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,730
<EPS-PRIMARY> 0.88
<EPS-DILUTED> 0.86
</TABLE>
