FORM 8-K
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
March 11, 1999
(Date of Report, date of earliest event reported)
Stage Stores, Inc.
(Exact name of registrant as specified in its charter)
Commission file number 001-14035
DELAWARE 76-0407711
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identifications No.)
10201 Main Street, Houston, 77025
Texas (Zip Code)
(Address of principal executive
offices)
(713) 667-5601
(Registrant's telephone number, including area code)
Not Applicable
(Former name or address, if changed since last report)
<PAGE>
ITEM 5. Other Events.
A press release regarding the Company announcing fourth
quarter and full year 1998 results and certain other matters was
issued by the Company on March 11, 1999 and is attached hereto as
Exhibit 99.1.
ITEM 7. Financial Statements and Exhibits.
(a) Financial statements of business acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
99.1 Press release dated March 11, 1999 issued by the
Company.
<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.
March 11, 1999 /s/ James A. Marcum
(Date) James A. Marcum
Vice Chairman and,
Chief Financial Officer
NEWS RELEASE
CONTACT:
Bob Aronson
Director of Investor Relations
(800) 579-2302
FOR IMMEDIATE RELEASE
STAGE STORES, INC. ANNOUNCES FOURTH QUARTER
AND FULL YEAR 1998 RESULTS
______________________________
HOUSTON, TX, March 11, 1999 -- Stage Stores, Inc. (NYSE: SGE)
today announced results for the fourth quarter and full year
ended January 30, 1999.
Net sales for the fourth quarter of 1998 decreased 3.3% to $357.3
million from $369.4 million for the same period last year. This
year's total sales for the fourth quarter are not comparable to
sales reported for the fourth quarter of 1997 as last year's
sales included the liquidation sales and related strong grand
opening volumes associated with the C.R. Anthony store
conversions. Comparable store sales decreased 5.7% during the
quarter. The net loss for the fourth quarter was $2.9 million,
or $0.10 per share on a diluted basis, as compared to net income
before extraordinary items of $17.5 million, or $0.62 per share
on a diluted basis, for the comparable period last year.
Net sales for the full year ended January 30, 1999 increased 9.3%
to $1,173.5 million from $1,073.3 million for the same period
last year. Comparable store sales for the year decreased 3.0%.
Income before extraordinary items was $3.7 million, or $0.13 per
share on a diluted basis, this year versus income before
extraordinary items of $34.5 million, or $1.30 per share on a
diluted basis, a year ago.
Commenting on the results, Carl E. Tooker, Chairman, President
and Chief Executive Officer, stated, "We are extremely
disappointed with our fourth quarter results which primarily
reflect the negative impact that the unseasonably warm fall
weather had on our top line sales and gross margin performance.
The warm fall weather dampened the sales
-- more --
<PAGE>
Stage Stores, Inc. Announces
Fourth Quarter 1998 Results
Page - 2
of our traditional cold weather categories and, as a result, we
significantly increased our promotional activity in order to
ensure the timely liquidation of our seasonal merchandise. As a
result of our liquidation efforts, we ended the quarter with
inventories per square foot on a comparable basis approximately
8.0% below last year which has allowed us to effectively
transition our inventories to our spring assortments. We are
currently in the final stages of the transition process, and
although it is still early in the first quarter, we are pleased
with the level of sales that we are seeing in our spring
merchandise."
Mr. Tooker, continued, "It is important to note that we saw
strength during the fourth quarter in those merchandise
categories which are the drivers of our business. Key categories
such as missy sportswear, special sizes, active wear, petites,
juniors, cosmetics and gifts all posted positive comparable store
sales."
Mr. Tooker, concluded, "Despite the difficulties experienced over
the last three quarters, our small market stores continued to
outperform our large market stores, there was no significant
change in the competitive landscape within our small market areas
and we did not lose market share. We have analyzed and
identified the non-weather related issues that impacted our
performance and have put plans in place to address each one. We
continue to believe as strongly as ever in the soundness of our
concept and unique retailing niche and we remain bullish on our
future prospects and potential."
Stage Stores, Inc. brings nationally recognized brand name family
apparel, accessories, cosmetics and footwear for the entire
family to small towns and communities throughout the United
States. The company operated 679 stores in 34 states at the end
of the fourth quarter, primarily under the Stage, Bealls and
Palais Royal trade names.
Any statements in this press release that may be considered
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially. These
risks and uncertainties are discussed in periodic reports filed
by the Company with the Securities and Exchange Commission that
the Company urges investors to consider.
(Tables to Follow)
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Stage Stores, Inc.
Consolidated Condensed Statement of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Twelve Months Ended
1/30/99 1/31/98 1/30/99 1/31/98
Net sales $357,349 $369,398 $1,173,547 $1,073,316
Cost of sales and related
buying, occupancy and
distribution expenses 267,756 248,910 839,238 730,179
Gross profit 89,593 120,488 334,309 343,137
Selling, general and
administrative expenses 76,854 76,259 271,477 240,011
Store opening and closure
costs 5,281 5,838 10,192 8,686
Operating income 7,458 38,391 52,640 94,440
Interest, net 12,187 10,119 46,471 38,277
Income (loss) before income
tax and extraordinary item (4,729) 28,272 6,169 56,163
Income tax expense (benefit) (1,795) 10,745 2,455 21,623
Income (loss) before
extraordinary item (2,934) 17,527 3,714 34,540
Extraordinary item - early
retirement of debt -- (765) -- (18,295)
Net income (loss) $ (2,934) $ 16,762 $ 3,714 $ 16,245
Basic earnings (loss) per
common share data:
Basic earnings (loss) per
common share before
extraordinary item $ (0.10) $ 0.63 $ 0.13 $ 1.34
Extraordinary item - early
retirement of debt -- (0.03) -- (0.71)
Basic earnings (loss) per
common share $ (0.10) $ 0.60 $ 0.13 $ 0.63
Basic weighted average
common shares outstanding 27,954 27,734 27,885 25,808
Diluted earnings (loss) per
common share data:
Diluted earnings (loss) per
common share before
extraordinary item $ (0.10) $ 0.62 $ 0.13 $ 1.30
Extraordinary item - early
retirement of debt -- (0.03) -- (0.69)
Diluted earnings (loss) per
common share $ (0.10) $ 0.59 $ 0.13 $ 0.61
Diluted weighted average
common shares outstanding 27,954 28,434 28,428 26,483
Comparable store sales data (5.7%) 3.5% (3.0%) 4.1%
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Stage Stores, Inc.,
Consolidated Condensed Balance Sheet
(in thousands)
(unaudited)
1/30/99 1/31/98
ASSETS
Cash and cash equivalents $ 12,832 $ 23,315
Undivided interest in accounts
receivable trust 69,816 61,211
Merchandise inventories, net 341,316 303,115
Other current assets 84,473 78,205
Total current assets 508,437 465,846
Fixed assets, net 233,263 171,654
Goodwill, net 92,551 95,486
Other assets 23,429 26,410
$ 857,680 $ 759,396
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable $ 82,779 $ 91,799
Other current liabilities 52,706 53,291
Current portion of long-term debt
including credit facilities 46,814 2,692
Total current liabilities 182,299 147,782
Long-term debt including credit
facilities 445,968 395,248
Other long-term liabilities 25,021 11,288
Total liabilities 653,288 554,318
Stockholders' equity 204,392 205,078
$ 857,680 $ 759,396
<PAGE>
Stage Stores, Inc.
Consolidated Condensed Statement of Cash Flows
(in thousands)
(unaudited)
Twelve Months Ended
1/30/99 1/31/98
Cash flows from operating activities:
Net income $ 3,714 $ 16,245
Adjustments to net income:
Depreciation and amortization 33,474 19,828
Other 2,371 45,733
Amortization of debt issue costs and
accretion of discount 3,715 3,505
Changes in working capital (58,868) (66,477)
Net cash provided by (used in)
operating activities (15,594) 18,834
Cash flows from investing activities:
Acquisitions, net of cash acquired -- (4,946)
Additions to fixed assets (88,719) (64,859)
Net cash used in investing activities (88,719) (69,805)
Cash flows from financing activities:
Proceeds from working capital facility 96,300 45,700
Proceeds from issuance of common stock 1,039 22,522
Proceeds from long-term debt -- 299,718
Payments on long-term debt (2,596) (299,533)
Additions to debt issue costs (913) (12,407)
Net cash provided by financing
activities 93,830 56,000
Net increase (decrease) in cash and cash
equivalents (10,483) 5,029
Cash and cash equivalents:
Beginning of period 23,315 18,286
End of period $ 12,832 $ 23,315
