Stein Mart 2015 Annual Report Download - page 45

STEIN MART, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in tables in thousands, except per share amounts)
F-21
11. Quarterly Results of Operations (Unaudited)
13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended
May 2, 2015 August 1, 2015 October 31, 2015
January 30, 2016
Net sales 353,521$ 311,583$ 300,665$ 394,132$
Gross profit 108,380 88,935 82,168 105,804
Net income (loss) 13,564 4,094 (197) 6,250
Basic net income (loss) per share 0.30$ 0.09$ (0.01)$ 0.14$
Diluted net income (loss) per share 0.29$ 0.09$ (0.01)$ 0.13$
Weighted-average shares outstanding:
Basic 44,612 44,710 44,791 44,905
Diluted 45,766 45,926 44,791 46,061
Year Ended January 30, 2016
13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended
May 3, 2014 August 2, 2014 November 1, 2014
January 31, 2015
Net sales 328,854$ 298,157$ 303,667$ 386,999$
Gross profit 104,326 84,244 84,561 113,605
Net income (loss) 14,075 1,737 (1,211) 12,305
Basic net income (loss) per share 0.31$ 0.04$ (0.03)$ 0.28$
Diluted net income (loss) per share 0.31$ 0.04$ (0.03)$ 0.27$
Weighted-average shares outstanding:
Basic 43,829 43,814 43,857 43,898
Diluted 44,456 44,704 43,857 45,004
Year Ended January 31, 2015
The sum of the quarterly net income per share amounts may not equal the annual amount because income per share is calculated
independently for each quarter.
12. Related Party Transactions
One of our directors is the majority shareholder of the legal firm that is the Company’s general counsel. Legal fees associated with these
services were $0.2 million in 2015, 2014 and 2013. In addition, the director also participated in our 2015, 2014 and 2013 Incentive Plans
related to his role as general counsel to the Company.
We leased three locations in 2014 and 2013 from a company for which one of our former directors is Chairman and Chief Executive
Officer. This former director did not stand for reelection at the June 2014 annual meeting. We paid approximately $0.3 million in base rent
through June 2014 and $0.8 million in 2013.
One of our directors, as a private investor, indirectly owned a minority interest through September 5, 2014 in the entity which operates a
secure location for and maintains certain of our data processing equipment. On September 5, 2014 the entity was sold and the director
and his family no longer own indirect interests. Expenses through September 5, 2014 associated with this service were $0.3 million and
$0.4 million in 2014 and 2013, respectively. We entered this facility prior to our director’s investment.
Our Chairman had a personal interest in a NetJets aircraft. Effective June 2, 2014, a subsidiary of the Company purchased an undivided
3.125% interest in a NetJets aircraft, and our Chairman contributed his personal NetJets contract to our subsidiary, which the subsidiary
utilized as trade-in credit with NetJets in the amount of $0.1 million. We reimbursed the Chairman for the value of his NetJets contract.
13. Subsequent Event
On February 24, 2016, we entered into an Amended and Restated Co-Brand and Private Label Credit Card Consumer Program
Agreement (the “Agreement”) with Synchrony Bank (“Synchrony”) effective February 1, 2016, running through January 2026. The
Agreement amends the Co-Brand and Private Label Credit Card Consumer Program (the “Program”) Agreement dated October 3, 2011
(the “Prior Agreement”), which was set to expire in September 2018. After 2026, the Agreement renews automatically for successive one-