Published:
Finish Line Reports Third Quarter Results
INDIANAPOLIS, Jan. 6 /PRNewswire-FirstCall/ -- The Finish Line, Inc. (the
"Company") (Nasdaq: FINL) announced results for the third quarter ended
November 29, 2008.
THIRD QUARTER RESULTS:
For the thirteen weeks ended November 29, 2008 ("third quarter" or "Q3"),
consolidated net sales decreased 4.4% to $256.9 million compared to $268.7
million for the thirteen weeks ended December 1, 2007 ("Q3 LY"). Consolidated
comparable store net sales decreased 3.6% for Q3 compared to the same period a
year ago. By concept, Finish Line comparable store net sales decreased 3.3%
and Man Alive comparable store net sales decreased 6.8%.
For the third quarter, the Company reported a loss from continuing
operations of $8.8 million, or $0.16 per diluted share, compared to a loss
from continuing operations of $13.8 million, or $0.29 per diluted share, for
Q3 LY. For Q3 LY, the non-GAAP loss from continuing operations per diluted
share was $0.17. The non-GAAP loss from continuing operations excludes $0.12
per diluted share for expenses incurred in connection with the terminated
merger with Genesco Inc. A reconciliation of loss from continuing operations
per diluted share on a GAAP basis to loss from continuing operations per
diluted share excluding these expenses, a non-GAAP financial measure, is found
in the table at the end of the release. Diluted weighted average shares
outstanding were 53.9 million for Q3, a 14.2% increase versus 47.2 million for
Q3 LY, which reflects the 6.5 million shares issued March 7, 2008 in
connection with the previously announced settlement related to the terminated
merger.
Merchandise inventories on a consolidated basis were $293.2 million at
November 29, 2008 compared to $338.7 million at December 1, 2007.
Consolidated merchandise inventories at November 29, 2008 decreased 12% per
square foot compared to December 1, 2007. By concept, Finish Line inventories
decreased 12% and Man Alive inventories decreased 5% compared to one year ago.
Glenn S. Lyon, Chief Executive Officer of the Company, stated, "During the
third quarter, we continued making progress on our strategic plan of
controlling expenses, managing our inventory investments, and maintaining our
position as the premium athletic specialty store. Additionally, in today's
volatile and unprecedented retail marketplace, having a strong balance sheet
is critical to success. Finish Line has no interest bearing debt and $55
million in cash and short-term investments, which gives us confidence that we
can continue to succeed even during the toughest of economic times. Given
these economic conditions, I am pleased that we have increased the non-GAAP
earnings from continuing operations per diluted share for the year by $0.17
over last year through three quarters."
YEAR-TO-DATE RESULTS:
Net sales increased 0.4% to $898.1 million for the thirty-nine weeks ended
November 29, 2008 ("YTD") compared to $894.4 million for the thirty-nine weeks
ended December 1, 2007 ("YTD LY"). Consolidated comparable store net sales
increased 1.1% YTD compared to the same period last year. By concept, Finish
Line comparable store net sales increased 1.4% YTD and Man Alive comparable
store net sales decreased 4.2% YTD.
The Company reported income from continuing operations of $5.2 million, or
$0.10 per diluted share YTD versus a loss from continuing operations of $9.5
million, or $0.20 per diluted share YTD LY. For YTD LY, the non-GAAP loss
from continuing operations per diluted share was $0.07. The non-GAAP loss from
continuing operations excludes $0.13 per diluted share for expenses incurred
in connection with the terminated merger. A reconciliation of loss from
continuing operations per diluted share on a GAAP basis to loss from
continuing operations per diluted share excluding these expenses, a non-GAAP
financial measure, is found in the table at the end of the release. Diluted
weighted average shares outstanding were 54.5 million YTD, a 15.5% increase
versus 47.2 million YTD LY, which reflects the 6.5 million shares issued March
7, 2008 in connection with the previously announced settlement.
CONFERENCE CALL:
As previously announced, the Company is hosting a live conference call at
8:30 am (ET) on Wednesday, January 7th. Interested parties may participate in
the call by calling 1-660-422-4970 (conference leader is Steve Schneider and
conference ID# is 77831178). Those interested in listening to the call on the
web can do so at www.finishline.com.
The Company will make available a replay of the live conference call by
calling 1-706-645-9291 (Conference ID# 77831178). This replay will be
available commencing at approximately 9:45 am (ET) on Wednesday, January 7th
and will remain available through January 9th. In addition, the replay will
be available on the web at www.finishline.com.
The Company has experienced, and expects to continue to experience,
significant variability in net sales and net income (loss) from quarter to
quarter. Therefore, the results of the periods presented herein are not
necessarily indicative of the results to be expected for any other future
period or year.
Certain statements contained in this press release regard matters that are
not historical facts are forward looking statements (as such term is defined
in the rules promulgated pursuant to the Securities Act of 1933, as amended).
Because such forward looking statements contain risks and uncertainties,
actual results may differ materially from those expressed in or implied by
such forward looking statements. Factors that could cause actual results to
differ materially include, but are not limited to: changing consumer
preferences; the Company's inability to successfully market its footwear,
apparel, accessories and other merchandise; price, product and other
competition from other retailers (including internet and direct manufacturer
sales); the unavailability of products; the inability to locate and obtain
favorable lease terms for the Company's stores; the loss of key employees;
fluctuations in oil prices causing changes in gasoline and energy prices,
resulting in changes in consumer spending and utility and product costs; the
effect of economic conditions including conditions resulting from the current
turmoil in the financial services industry and depressed demand in the housing
market; management of growth, and the other risks detailed in the Company's
Securities and Exchange Commission filings. The Company undertakes no
obligation to release publicly the results of any revisions to these forward
looking statements that may be made to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events.
The Finish Line, Inc. is one of the largest mall-based specialty retailers
operating under the Finish Line and Man Alive brand names. The Finish Line,
Inc. is publicly traded on the NASDAQ Global Select Market under the symbol
FINL. The Company currently operates 698 Finish Line stores in 47 states and
online and 93 Man Alive stores in 19 states and online. To learn more about
these brands, visit www.finishline.com and www.manalive.com
The Finish Line, Inc.
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share and store data)
Thirteen Thirteen Thirty-Nine Thirty-Nine
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
November 29, December 1, November 29, December 1,
2008 2007 2008 2007
------------ ----------- ------------ -----------
Net sales $256,864 $268,699 $898,115 $894,409
Cost of sales
(including
occupancy costs) 190,280 198,803 637,692 646,163
------------ ----------- ------------ -----------
Gross profit 66,584 69,896 260,423 248,246
Selling, general
and administrative
expenses 81,060 83,261 251,709 253,372
Terminated merger
-related costs 23 9,658 106 9,883
------------ ----------- ------------ -----------
Operating (loss)
income (14,499) (23,023) 8,608 (15,009)
Interest income,
net 194 223 693 923
------------ ----------- ------------ -----------
(Loss) income
from continuing
operations before
income taxes (14,305) (22,800) 9,301 (14,086)
Income tax (benefit)
expense (5,462) (9,035) 4,059 (4,626)
------------ ----------- ------------ -----------
(Loss) income from
continuing operations (8,843) (13,765) 5,242 (9,460)
------------ ----------- ------------ -----------
Loss from discontinued
operations, net of
income tax benefit - (2,189) (123) (12,163)
------------ ----------- ------------ -----------
Net (loss) income $(8,843) $(15,954) $5,119 $(21,623)
============ =========== ============= ===========
(Loss) income per
diluted share:
(Loss) income from
continuing
operations $(0.16) $(0.29) $0.10 $(0.20)
Loss from
discontinued
operations - (0.05) - (0.26)
------------ ----------- ------------ -----------
Net (loss) income $(0.16) $(0.34) $0.10 $(0.46)
============ =========== ============= ===========
Diluted weighted
average shares
outstanding 53,935 47,211 54,477 47,178
============ =========== ============= ===========
Dividends declared
per share $0.030 $- $0.060 $0.025
============ =========== ============= ===========
Number of stores
open at end of period:
Finish Line 699 701
Man Alive 93 96
------------ -----------
Total 792 797
============ ===========
Condensed Consolidated Balance Sheet
November 29, December 1, March 1,
2008 2007 2008
------------ ------------ ---------
(Unaudited) (Unaudited)
ASSETS
Cash and short-term
investments $55,148 $14,065 $72,901
Merchandise inventories,
net 293,244 338,732 268,333
Other current assets 39,655 29,432 40,573
Property and equipment,
net 201,005 229,726 217,834
Other assets 44,593 36,795 43,406
------------ ------------ ---------
Total assets $633,645 $648,750 $643,047
============ ============ =========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities $137,227 $145,982 $99,931
Terminated merger-related
liabilities 206 - 47,129
Deferred credits from
landlords 54,441 62,686 59,642
Other long-term liabilities 15,042 8,370 15,479
Shareholders' equity 426,729 431,712 420,866
------------ ------------ ---------
Total liabilities and
shareholders' equity $633,645 $648,750 $643,047
============ ============ =========
The Finish Line, Inc.
SEC REGULATION G
RECONCILIATION OF (LOSS) INCOME FROM CONTINUING OPERATIONS PER DILUTED
SHARE ON A GAAP BASIS TO (LOSS) INCOME FROM CONTINUING OPERATIONS PER
DILUTED SHARE ON A NON-GAAP BASIS
Thirty- Thirty-
Thirteen Thirteen Nine Nine
Weeks Weeks Weeks Weeks
Ended Ended Ended Ended
November 29, December 1, November 29, December 1,
2008 2007 2008 2007
------------ ----------- ------------ -----------
(Loss) income from
continuing operations
per diluted share on
a GAAP Basis $(0.16) $(0.29) $0.10 $(0.20)
Subtract: terminated
merger-related costs - 0.12 - 0.13
------------ ----------- ------------ -----------
(Loss) income from
continuing operations
per diluted share on a
non-GAAP basis (a) $(0.16) $(0.17) $0.10 $(0.07)
============ =========== ============ ===========
(a) (Loss) income from continuing operations per diluted share excluding
the amount noted above is a non-GAAP financial measure. The Company believes
this is an important metric as it represents our (loss) income from continuing
operations per diluted share without the impact of terminated merger-related
costs.
CONTACTS:
Investor Relations Contact:
Steven J. Schneider (317) 899-1022 ext. 6528
President, Chief Operating Officer & Interim CFO
Media Requests Contact:
Elise Hasbrook, (317) 899-1022 ext. 6827
Corporate Communications Manager
SOURCE The Finish Line, Inc.
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Copyright © 2009, NewsBlaze,
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