Stein Mart, Inc. announced unaudited consolidated earnings results for the first quarter ended May 5, 2018. For the quarter, the company reported net sales of $326,685,000 compared to $337,335,000 a year ago. Operating income was $9,857,000 compared to $10,062,000 a year ago. Income before income taxes was $7,394,000 compared to $8,923,000 a year ago. Net income was $7,334,000 or $0.16 basic and diluted per share compared to $3,700,000 or $0.08 basic and diluted per share a year ago. Net cash used in operating activities was $47,206,000 compared to net cash from operating activities of $40,098,000 a year ago. Net acquisition of property and equipment was $1,664,000 compared to $7,182,000 a year ago. EBITDA was $17,927,000 compared to $18,147,000 a year ago. Adjusted EBITDA was $18,429,000 compared to $19,334,000 a year ago. Total revenue was $330,987,000 against $341,049,000 a year ago. The decrease in total sales includes the impact of six stores closed in 2017 and four stores closed during the first quarter of 2018.

For fiscal 2018, the company expects capital expenditures to be approximately $10 million compared to $21 million in fiscal 2017. Effective tax rate will be close to 0% for all of 2018.

For the first half of 2018 the company expects operating income to be in excess of $10 million compared to an operating loss of $11.5 million for the first half of 2017. Second quarter of 2018 operating income is expected to be positive based on they anticipate flat to low single-digit increases in comparable sales for the second quarter driven by much higher regular-price selling; they expect gross profit expansion in excess of 400 basis points.

For the quarter, the company reported impairment of property and other assets of $299,000 compared to $31,000 a year ago.