Stein Mart, Inc (Nasdaq:SMRT) today announced record results for its second quarter and first half ended July 1, 2000.

For the three months ended July 1, 2000, the company reported net income of $13.8m, a 47.2 per cent increase over the $9.4m earned one year ago. On a diluted per share basis, the company earned $0.32 as compared to $0.21 for the same period in 1999. Net sales for the second quarter of 2000 were $291.2 million, an 18.9 per cent increase over the $244.9m in sales in the second quarter of 1999. Comparable store sales increased 12.8 per cent from the second quarter of 1999 to the second quarter of 2000.

For the six months ended July 1, 2000, the company reported net income of $14.8m, a 53.9 per cent increase over the $9.6m earned during the first half of last year. On a diluted per share basis, the company earned $0.34 as compared to $0.21 for the same period in 1999. Net sales for the first half of 2000 were $536.6m, a 17.4 per cent increase over the $457m in sales in the first half of 1999. Comparable stores sales increased 10.4 per cent in the first half of 2000.

``We are very pleased with the progress of our initiatives in merchandising and marketing,'' said Jay Stein, chairman and chief executive officer of Stein Mart. ``We believe our first half results re-confirm that our fashion-forward approach to off-price retailing is successful when executed properly, and we are making significant progress towards regaining our historical operating margins.''

Four new Stein Mart stores opened in the second quarter: a third location in Cincinnati, Ohio and a fourth location in the greater Chicago area as well as new locations in College Station, Texas and Rocky Mount, North Carolina. Fourteen additional new stores are expected to be opened and six (previously announced) existing stores are expected to close before the end of the year.

About Stein Mart

Stein Mart's 211 stores offer the merchandise, service and presentation of a traditional, better department/specialty store , at prices competitive with off-price retail chains. Currently with locations from California to New York, Stein Mart's focused assortment of merchandise features moderate to designer brand-name apparel for women, men and children, as well as accessories, gifts, linens and shoes.

SAFE HARBOR STATEMENT

NOTE: Information on Stein Mart, Inc is available on the Internet at http://www.steinmart.com. Company news releases (current and past) are available by calling Stein Mart's toll-free fax on demand service at 1-800-239-0927.

Stein Mart, Inc. Balance Sheet
(In thousands)
 
 
July 1, 2000
January 1, 2000
July 3, 1999
 
(Unaudited)
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$ 10,026
$ 17,055
$ 10,814
Trade and other receivables
2,513
4,472
3,303
Inventories
262,869
245,186
230,806
Prepaid expenses and other current assets
2,611
4,089
2,845
Total current assets
278,019
270,802
247,768
 
Property and equipment, net
78,178
76,503
77,171
Other assets
4,614
4,895
4,202
 
Total assets
$ 360,811
$ 352,200
$ 329,141
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 59,481
$ 120,640
$ 55,024
Accrued liabilities
35,720
30,086
26,409
Income taxes payable
9,183
4,686
4,864
 
Total current liabilities
104,384
155,412
86,297
 
Store closing reserve
11,507
12,589
---
Notes payable to banks
51,730
---
46,852
Deferred income taxes
4,287
4,287
9,008
 
Total liabilities
171,908
172,288
142,157
 
Stockholders' equity:
Preferred stock - $.01 par value; 1,000,000 shares authorized; no shares outstanding

Common stock - $.01 par value; 100,000,000 shares authorized; 42,902,885 shares issued and outstanding at July 1, 2000; 43,904,450 shares issued and outstanding at January 1, 2000 and 45,307,823 shares issued and outstanding at July 3, 1999

429
439
453
 
Paid-in capital
15,536
21,364
30,607
Retained earnings
172,938
158,109
155,924
 
Total stockholders' equity
188,903
179,912
186,984
 
Total liabilities and stockholders' equity
$360,811
$352,200
$329,141


Stein Mart, Inc. Statement of Income (Unaudited)
(In thousands except per share amounts)
         
 
For The Three Months Ended
For The Six Months Ended
 
July 1, 2000
July 3, 1999
July 1, 2000
July 3, 1999
 
Net sales
$291,188
$244,920
$536,639
$457,007
Cost of merchandise sold
208,909
176,962
397,205
340,406
Gross profit
82,279
67,958
139,434
116,601
 
Selling, general and administrative expenses
62,932
55,315
120,806
105,826
Other income, net
3,741
3,026
6,696
5,718
Income from operations
23,088
15,669
25,324
16,493
 
Interest expense
781
518
1,406
950

Income before income taxes

22,307
15,151
23,918
15,543
Provision for income taxes
8,477
5,757
9,089
5,906
 
Net income
$ 13,830
$ 9,394
$ 14,829
$ 9,637
 
Earnings per share - Basic
$ 0.32
$ 0.21
$ 0.34
$ 0.21
Earnings per share - Diluted
$ 0.32
$ 0.21
$ 0.34
$ 0.21
 
Weighted-average shares outstanding - Basic
43,008
45,341
43,251
45,356
Weighted-average shares outstanding - Diluted
43,459
45,811
43,562
45,786