SHOE CARNIVAL INC [SCVL] Filings

10-Q 1 scvl-20230729.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☒		Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
		For the quarterly period ended July 29, 2023
or
☐		Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
		For the transition period from to .


Commission File Number:	0-21360

Shoe Carnival, Inc.
(Exact name of registrant as specified in its charter)


Indiana		35-1736614
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification Number)

7500 East Columbia Street Evansville, IN		47715
(Address of principal executive offices)		(Zip code)

(812) 867-4034

(Registrant’s telephone number, including area code)

NOT APPLICABLE

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

SCVL

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.


☐ Large accelerated filer	☒ Accelerated filer	☐ Non-accelerated filer	☐ Smaller reporting company	☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Number of Shares of Common Stock, par value $0.01 per share, outstanding at August 25, 2023 was 27,359,697.

SHOE CARNIVAL, INC.

INDEX TO FORM 10-Q


			Page
Part I	Financial Information

	Item 1.	Financial Statements (Unaudited)
		Condensed Consolidated Balance Sheets	3
		Condensed Consolidated Statements of Income	4
		Condensed Consolidated Statements of Shareholders’ Equity	5
		Condensed Consolidated Statements of Cash Flows	6
		Notes to Condensed Consolidated Financial Statements	7

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	19

	Item 4.	Controls and Procedures	19

Part II	Other Information

	Item 1A.	Risk Factors	20

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	20

	Item 5.	Other Information	20

	Item 6.	Exhibits	20

	Signature		21

SHOE CARNIVAL, INC.

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SHOE CARNIVAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited


(In thousands, except share data)	July 29, 2023			January 28, 2023			July 30, 2022
Assets
Current Assets:
Cash and cash equivalents	$	34,562		$	51,372		$	51,620
Marketable securities		12,218			11,601			10,994
Accounts receivable		3,961			3,052			10,677
Merchandise inventories		409,342			390,390			385,510
Other		25,281			13,308			18,131
Total Current Assets		485,364			469,723			476,932
Property and equipment – net		159,186			141,435			124,789
Operating lease right-of-use assets		339,598			318,612			254,537
Intangible assets		32,600			32,600			32,600
Goodwill		12,023			12,023			10,786
Other noncurrent assets		14,433			15,388			14,871
Total Assets	$	1,043,204		$	989,781		$	914,515

Liabilities and Shareholders’ Equity
Current Liabilities:
Accounts payable	$	77,429		$	78,850		$	113,826
Accrued and other liabilities		19,999			20,281			22,893
Current portion of operating lease liabilities		57,335			58,154			52,523
Total Current Liabilities		154,763			157,285			189,242
Long-term portion of operating lease liabilities		307,326			285,074			226,115
Deferred income taxes		14,631			11,844			4,436
Deferred compensation		10,596			9,840			10,779
Other		369			170			311
Total Liabilities		487,685			464,213			430,883

Shareholders’ Equity:
Common stock, $0.01 par value, 50,000,000 shares authorized and 41,049,190 shares issued in each period, respectively		410			410			410
Additional paid-in capital		81,151			83,423			80,760
Retained earnings		683,875			653,450			604,192
Treasury stock, at cost, 13,689,493 shares, 13,883,902 shares and 13,435,296 shares, respectively		(209,917	)		(211,715	)		(201,730	)
Total Shareholders’ Equity		555,519			525,568			483,632
Total Liabilities and Shareholders’ Equity	$	1,043,204		$	989,781		$	914,515

See notes to Condensed Consolidated Financial Statements.

SHOE CARNIVAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Unaudited


(In thousands, except per share data)	Thirteen Weeks Ended July 29, 2023			Thirteen Weeks Ended July 30, 2022			Twenty-six Weeks Ended July 29, 2023			Twenty-six Weeks Ended July 30, 2022
Net sales	$	294,615		$	312,268		$	575,799		$	629,795
Cost of sales (including buying, distribution and occupancy costs)		189,150			199,138			371,817			403,802
Gross profit		105,465			113,130			203,982			225,993
Selling, general and administrative expenses		80,803			74,341			158,381			151,820
Operating income		24,662			38,789			45,601			74,173
Interest income		(433	)		(138	)		(911	)		(170	)
Interest expense		71			65			137			160
Income before income taxes		25,024			38,862			46,375			74,183
Income tax expense		5,583			9,953			10,408			18,377
Net income	$	19,441		$	28,909		$	35,967		$	55,806
Net income per share:
Basic	$	0.71		$	1.05		$	1.32		$	2.01
Diluted	$	0.71		$	1.04		$	1.31		$	1.99
Weighted average shares:
Basic		27,336			27,590			27,280			27,784
Diluted		27,410			27,812			27,449			28,061

See notes to Condensed Consolidated Financial Statements.

SHOE CARNIVAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Unaudited


	Thirteen Weeks Ended
	Common Stock							Additional Paid-In			Retained			Treasury
(In thousands, except per share data)	Issued		Treasury			Amount		Capital			Earnings			Stock			Total
Balance at April 29, 2023		41,049		(13,714	)	$	410	$	80,361		$	667,196		$	(210,287	)	$	537,680
Dividends declared ($0.10 per share)												(2,762	)					(2,762	)
Employee stock purchase plan purchases				2					12						41			53
Stock-based compensation awards				23					(329	)					329			0
Stock-based compensation expense									1,107									1,107
Net income												19,441						19,441
Balance at July 29, 2023		41,049		(13,689	)	$	410	$	81,151		$	683,875		$	(209,917	)	$	555,519

Balance at April 30, 2022		41,049		(13,462	)	$	410	$	79,595		$	577,823		$	(202,114	)	$	455,714
Dividends declared ($0.09 per share)												(2,540	)					(2,540	)
Employee stock purchase plan purchases				3					9						39			48
Stock-based compensation awards				26					(383	)					383			0
Shares surrendered by employees to pay taxes on stock-based compensation awards				(2	)										(38	)		(38	)
Stock-based compensation expense									1,539									1,539
Net income												28,909						28,909
Balance at July 30, 2022		41,049		(13,435	)	$	410	$	80,760		$	604,192		$	(201,730	)	$	483,632


	Twenty-six Weeks Ended
	Common Stock							Additional Paid-In			Retained			Treasury
(In thousands, except per share data)	Issued		Treasury			Amount		Capital			Earnings			Stock			Total
Balance at January 28, 2023		41,049		(13,884	)	$	410	$	83,423		$	653,450		$	(211,715	)	$	525,568
Dividends declared ($0.20 per share)												(5,542	)					(5,542	)
Employee stock purchase plan purchases				5					29						81			110
Stock-based compensation awards				305					(4,644	)					4,644			0
Shares surrendered by employees to pay taxes on stock-based compensation awards				(115	)										(2,927	)		(2,927	)
Stock-based compensation expense									2,343									2,343
Net income												35,967						35,967
Balance at July 29, 2023		41,049		(13,689	)	$	410	$	81,151		$	683,875		$	(209,917	)	$	555,519

Balance at January 29, 2022		41,049		(12,883	)	$	410	$	80,681		$	553,487		$	(182,045	)	$	452,533
Dividends declared ($0.18 per share)												(5,101	)					(5,101	)
Employee stock purchase plan purchases				5					27						66			93
Stock-based compensation awards				196					(2,850	)					2,850			0
Shares surrendered by employees to pay taxes on stock-based compensation awards				(70	)										(2,086	)		(2,086	)
Purchase of common stock for treasury				(683	)										(20,515	)		(20,515	)
Stock-based compensation expense									2,902									2,902
Net income												55,806						55,806
Balance at July 30, 2022		41,049		(13,435	)	$	410	$	80,760		$	604,192		$	(201,730	)	$	483,632

See notes to Condensed Consolidated Financial Statements.

SHOE CARNIVAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited


(In thousands)	Twenty-six Weeks Ended July 29, 2023		Twenty-six Weeks Ended July 30, 2022
Cash Flows From Operating Activities
Net income	$	35,967	$	55,806
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		13,822		10,416
Stock-based compensation		2,326		2,741
Loss on retirement and impairment of assets, net		59		83
Deferred income taxes		2,787

SHOE CARNIVAL INC [SCVL] Filings
10-Q	[2023-09-01]
10-Q	[2023-06-02]
10-K	[2023-03-24]
10-Q	[2022-12-02]
10-Q	[2022-08-31]
10-Q	[2022-06-03]
10-K	[2022-03-25]
10-Q	[2021-11-29]
10-Q	[2021-09-03]
10-Q	[2021-06-04]
10-K	[2021-03-26]
10-Q	[2020-12-04]
10-Q	[2020-09-04]
10-Q	[2020-06-04]
10-K	[2020-03-31]
10-Q	[2019-12-05]
10-Q	[2019-09-09]
10-Q	[2019-06-11]
10-K	[2019-04-02]
10-Q	[2018-12-07]
10-Q	[2018-09-11]
10-Q	[2018-06-11]
10-K	[2018-04-02]
10-Q	[2017-12-05]
10-Q	[2017-08-31]
10-Q	[2017-05-31]
10-K	[2017-03-29]
10-Q	[2016-11-30]
10-Q	[2016-09-07]
10-Q	[2016-06-03]
10-K	[2016-04-04]
10-Q	[2015-12-08]
10-Q	[2015-09-09]
10-Q	[2015-06-10]
10-K	[2015-04-16]
10-Q	[2014-12-11]
10-Q	[2014-09-08]
10-Q	[2014-06-12]
10-K	[2014-04-10]
10-Q	[2013-12-11]
10-Q	[2013-09-12]
10-Q	[2013-06-13]
10-K	[2013-04-15]
10-Q	[2012-12-06]
10-Q	[2012-09-06]
10-Q	[2012-06-07]
10-K	[2012-04-12]