Stein Mart 2014 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 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 14,075 1,737 (1,211) 12,305
Basic net income per share 0.31$ 0.04$(0.03)$ 0.28$
Diluted net income 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
13 Weeks Ended 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended
May 4, 2013 August 3, 2013 November 2, 2013 February 1, 2014
Net sales 321,364$290,969$ 290,453$ 360,785$
Gross profit 97,945 80,316 77,765 111,327
Net income 14,692 3,414 28 7,421
Basic net income per share 0.34$0.08$ $ 0.00 0.17$
Diluted net income per share 0.33$0.08$ $ 0.00 0.16$
Weighted-average shares outstanding:
Basic 42,814 42,931 43,102 43,367
Diluted 43,262 43,707 43,924 44,220
Year Ended February 1, 2014
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. We believe amounts paid for these
services are competitive with amounts that would be paid to a third party for similar services. Legal fees associated with these services
were $0.2 million in 2014, 2013 and 2012. In addition, the director also participated in our 2014, 2013 and 2012 Incentive Plans related to
his role as general counsel to the Company.
We leased three locations in 2014, 2013 and 2012 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 and 2012, respectively. We believe amounts paid for leased space and other lease-related
services are competitive with amounts that would be paid to a third party to lease similar space.
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, $0.4
million and $0.3 million in 2014, 2013 and 2012, respectively. We entered this facility prior to our directors investment. We believe
amounts paid were competitive with amounts that would be paid to others for similar services.
The Companys Chairman and Chief Executive Officer 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 and Chief Executive Officer contributed his
personal NetJets contract to the Companys subsidiary, which the subsidiary utilized as trade-in credit with NetJets in the amount of $0.1
million. The Company reimbursed the Chairman and Chief Executive Officer for the value of his NetJets contract.