Gordmans Stores Inc., the Omaha-based apparel and home decor retailer, has announced a special one-time cash dividend of $3.60 per share of common stock.
The company will fund the $70 million special dividend through available cash and a new $45 million senior term loan with Cerberus Business Finance LLC. The one-time cash dividend will be payable on Sept. 23 to shareholders of record on Sept. 9.
For the second quarter 2013, Gordmans reported a 2.6 percent decrease in sales at stores open at least a year, compared with a 0.1 percent increase during the same period a year ago, according to documents filed with the U.S. Securities and Exchange Commission.
Net income for the quarter ending Aug. 3 was $900,000, or 5 cents per diluted share, down 74 percent compared with net income of $3.5 million, or 18 cents per diluted share, during the same quarter a year ago. The results were ahead of analysts’ predictions of 3 cents per share.
Net sales rose 6.7 percent to $136.8 million, compared with $128.2 million in the second quarter of fiscal 2012.
Jeff Gordman, the company’s president and chief executive, said: “We delivered comparable store sales that were consistent with expectations despite some continued headwinds and represented a meaningful improvement” from the first quarter.
Last quarter, the company reported that comparable store sales had fallen by 10.5 percent, compared with a 4.7 percent increase during the first quarter of 2012.
Added Gordman, “At the same time, our bottom-line results were ahead of our guidance.”
Gordmans reported a favorable response to its customer loyalty program, gRewards, which recently made its debut. Customers enrolled in the loyalty program spent more per transaction on average than customers without the loyalty card, company officials said in an investor call Wednesday.
Mike James, the company’s chief financial officer, said that after the one-time dividend payment, Gordmans expects to have $10 million to $15 million cash on hand, in addition to an $80 million revolving line of credit with Wells Fargo Bank.
The retailer also announced six-month financial results, reporting that net income for the 26 weeks ending Aug. 3 was $4.2 million, or 22 cents per diluted shared, down 64 percent, compared with net income of $11.6 million, or 60 cents per diluted share, during the first half of fiscal 2012.
During the first six months of this year, net sales increased 2.3 percent to $268.2 million, compared with $262.2 million during the same period in 2012.
So far this year, the retailer has opened seven new stores. Three new stores will open next month in Albuquerque, N.M.; Valparaiso, Ind.; and Ashwaubenon, Wis., a suburb of Green Bay, for a total of 10 new stores this year. At year’s end, Gordmans will have 93 locations in 19 states.