What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-09-08 compared with 2022-06-09 · 74 added, 27 removed, 211 unchanged (32% of the section changed)

8 unchanged sentences

Total current assets

Property and equipment, net of accumulated depreciation of $ 268,982 and $ 283,445 as of April 30, 2022 and January 29, 2022, respectively

Property and equipment, net of accumulated depreciation of $ 273,941 and $ 283,445 as of July 30, 2022 and January 29, 2022, respectively

Operating lease right of use assets

6 unchanged sentences

Accrued compensation

Income tax payable

Layaway deposits

6 unchanged sentences

Authorized 32,000,000 shares;

16,159,393 shares issued as of April 30, 2022 and 16,090,365 shares issued as of January 29, 2022;

8,515,802 shares outstanding as of April 30, 2022 and 8,617,210 shares outstanding as of January 29, 2022

16,183,425 shares issued as of July 30, 2022 and 16,090,365 shares issued as of January 29, 2022;

8,379,412 shares outstanding as of July 30, 2022 and 8,617,210 shares outstanding as of January 29, 2022

Paid in capital

1 unchanged sentence

Treasury stock, at cost;

7,643,591 shares held as of April 30, 2022 and 7,473,155 shares held as of January 29, 2022

7,804,013 shares held as of July 30, 2022 and 7,473,155 shares held as of January 29, 2022

Total stockholders’ equity

8 unchanged sentences

Selling, general and administrative expenses

(Loss) income from operations

Interest income

Interest expense

(Loss) income before income taxes

Income tax benefit (provision)

Net (loss) income

Basic net (loss) income per common share

Diluted net (loss) income per common share

Weighted average number of shares outstanding

Citi Trends, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

Twenty-Six Weeks Ended

Cost of sales (exclusive of depreciation)

Selling, general and administrative expenses

Gain on sale-leaseback

11 unchanged sentences

(in thousands)

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Operating activities:

11 unchanged sentences

Accrued compensation

Income tax payable

Income tax receivable/payable

Layaway deposits

1 unchanged sentence

Investing activities:

Purchases of investment securities

Purchases of property and equipment

7 unchanged sentences

Net cash used in financing activities

Net increase in cash and cash equivalents

Net decrease in cash and cash equivalents

Cash and cash equivalents:

3 unchanged sentences

Cash paid for interest

Cash (refunds) payments of income taxes

Cash payments of income taxes

Supplemental disclosures of non-cash investing activities:

8 unchanged sentences

Issuance of nonvested shares

Issuance of comon stock under incentive plan, net of shares withheld for taxes

Issuance of common stock under incentive plan, net of shares withheld for taxes

Forfeiture of nonvested shares

3 unchanged sentences

Balances — April 30, 2022

Issuance of nonvested shares under incentive plan

Forfeiture of nonvested shares

Stock-based compensation expense

Net share settlement of nonvested shares

Repurchase of common stock

Balances — July 30, 2022

Treasury Stock

6 unchanged sentences

Balances — May 1, 2021

Issuance of nonvested shares under incentive plan

Forfeiture of nonvested shares

Stock-based compensation expense

Net share settlement of nonvested shares

Repurchase of common stock

Balances — July 31, 2021

See accompanying notes to the condensed consolidated financial statements (unaudited).

1 unchanged sentence

Notes to the Condensed Consolidated Financial Statements (unaudited)

April 30, 2022

July 30, 2022

Significant Accounting Policies

2 unchanged sentences

and its subsidiary (the “Company”) is a growing specialty value retailer of apparel, accessories and home trends for way less spend primarily for African American and Latinx families.

As of April 30, 2022, the Company operated 614 stores in urban, suburban and rural markets in 33 states.

As of July 30, 2022, the Company operated 617 stores in urban, suburban and rural markets in 33 states.

The condensed consolidated financial statements are prepared in accordance with U.S.

4 unchanged sentences

These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2021 Form 10-K.

Operating results for the first quarter of 2022 are not necessarily indicative of the results that may be expected for the fiscal year as a result of the seasonality of the business, the current economic uncertainty and the extent to which future business will be impacted by the COVID-19 pandemic.

Operating results for the second quarter of 2022 are not necessarily indicative of the results that may be expected for the fiscal year as a result of the seasonality of the business, the current economic uncertainty and the extent to which future business will be impacted by the COVID-19 pandemic.

The following contains references to fiscal years 2022 and 2021, which represent fiscal years ending or ended on January 28, 2023 and January 29, 2022, respectively.

14 unchanged sentences

The Company includes as assumed proceeds the amount of compensation cost attributed to future services and not yet recognized.

For the first quarter of 2022 and 2021, there were 222,000 and 38,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution.

For the second quarter of 2022 and 2021, there were 236,000 and 39,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution.

For the twenty-six weeks ended July 30, 2022 and July 31, 2021, there were 229,000 and 38,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution.

The following table provides a reconciliation of the weighted average number of common shares outstanding used to calculate basic earnings per share to the number of common shares and common stock equivalents outstanding used in calculating diluted earnings per share:

Thirteen Weeks Ended

April 30, 2022

July 30, 2022

July 31, 2021

Weighted average number of common shares outstanding

1 unchanged sentence

Weighted average number of common shares and common stock equivalents outstanding

Twenty-Six Weeks Ended

July 30, 2022

July 31, 2021

Weighted average number of common shares outstanding

Incremental shares from assumed vesting of nonvested restricted stock

Weighted average number of common shares and common stock equivalents outstanding

Revolving Credit Facility

6 unchanged sentences

Borrowings under the credit facility bear interest (a) for Eurodollar Loans, at a rate equal to the Eurodollar Rate plus either 1.25 % , 1.50 % or 1.75 % , or (b) for Base Rate Loans, at a rate equal to the highest of (i) the prime rate, (ii) the Federal Funds Rate plus 0.5 % or (iii) the Eurodollar Rate plus 1.0 % , plus, in each case either 0.25 % , 0.50 % or 0.75 % , based in any such case on the average daily availability for borrowings under the facility.

As of April 30, 2022, the Company had no borrowings under the credit facility and $ 0.6 million of letters of credit outstanding.

As of July 30, 2022, the Company had no borrowings under the credit facility and $ 0.6 million of letters of credit outstanding.

Income taxes are accounted for under the asset and liability method.

4 unchanged sentences

If there is a change in tax rates, the Company would recognize the impact of such change in income in the period that includes the enactment date.

For the first quarter of 2022 and 2021, the Company utilized the annual effective tax rate method to calculate income taxes.

The effective income tax rate was 23.7 % for the first quarter of 2022, compared to 20.7 % for the first quarter of 2021.

For the twenty-six weeks ended July 30, 2022 and July 31, 2021, the Company utilized the annual effective tax rate method to calculate income taxes.

The effective income tax rate was 23.5 % for the first half of 2022, compared to 21.5 % for the first half of 2021.

The difference in the tax rate was due to a favorable tax impact of restricted stock vestings in the prior year.

9 unchanged sentences

Thirteen Weeks Ended

April 30, 2022

Twenty-six Weeks Ended

July 30, 2022

July 31, 2021

July 30, 2022

July 31, 2021

Total number of shares purchased

2 unchanged sentences

On March 15, 2022, the Company announced that its board of directors approved an additional $ 30 million stock repurchase program.

At April 30, 2022, $ 54.7 million remained available under the Company’s stock repurchase authorization.

At July 30, 2022, $ 50.0 million remained available under the Company’s stock repurchase authorization.

Revenue Recognition

The Company’s primary source of revenue is derived from the sale of clothing and accessories to its customers with the Company’s performance obligations satisfied immediately when the customer pays for their purchase and receives the merchandise.

The Company’s primary source of revenue is derived from the sale of clothing, accessories and home trends to its customers with the Company’s performance obligations satisfied immediately when the customer pays for their purchase and receives the merchandise.

Sales taxes collected by the Company from customers are excluded from revenue.

8 unchanged sentences

The Company’s retail stores sell similar products, use similar processes to sell those products and sell their products to similar classes of customers.

In the following table, the Company’s revenue from contracts with customers is disaggregated by “CITI” or major merchandise category.

In the following table, the Company’s revenue from sales to customers is disaggregated by “CITI” or major merchandise category.

The percentage of net sales for each CITI with the merchandise assortment was approximately:

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Accessories & Beauty

14 unchanged sentences

Thirteen Weeks Ended

April 30, 2022

Twenty-Six Weeks Ended

July 30, 2022

July 31, 2021

July 30, 2022

July 31, 2021

Operating lease cost

2 unchanged sentences

Total lease cost

Future minimum lease payments as of April 30, 2022 are as follows (in thousands):

Future minimum lease payments as of July 30, 2022 are as follows (in thousands):

Remainder of 2022

4 unchanged sentences

(2) Includes short-term and long-term portions of operating lease liabilities.

Certain operating leases provide for fixed monthly rents, while others provide for contingent rents computed as a percentage of net sales and others provide for a combination of both fixed monthly rents and contingent rents computed as a percentage of net sales.

Supplemental cash flows and other information related to operating leases are as follows (in thousands, except for weighted average amounts):

Thirteen Weeks Ended

April 30, 2022

Twenty-Six Weeks Ended

July 30, 2022

July 31, 2021

Cash paid for operating leases

2 unchanged sentences

Weighted average discount rate - operating leases

Subsequent Events

As previously announced, the Company elected to sell its distribution center in Roland, Oklahoma.

On September 6, 2022, the Company completed the sale-leaseback of this property for pretax proceeds of $ 35.6 million.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements