INDIANAPOLIS, June 26 /PRNewswire-FirstCall/ — The Finish Line, Inc. (the
“Company”) (Nasdaq: FINL) announced results for the first quarter ended May
31, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020603/FINISHLINELOGO )
For the thirteen weeks ended May 31, 2008 (”first quarter” or “Q1″), the
Company reported income from continuing operations of $0.9 million, or $.02
per diluted share, compared to a loss from continuing operations of $2.6
million, or ($.05) per diluted share, for the thirteen weeks ended June 2,
2007 (”Q1 LY”). Diluted weighted average shares outstanding were 53,895,000
for Q1, a 14.3% increase versus 47,135,000 shares outstanding for Q1 LY, which
reflects the 6.5 million shares issued March 7th in connection with the
previously announced settlement with Genesco Inc.
For the first quarter, total consolidated net sales increased 0.8% to
$287.9 million compared to net sales of $285.8 million for Q1 LY.
Consolidated comparable store net sales increased 1.2% for Q1 compared to the
same period a year ago. By concept, Finish Line comparable store net sales
increased 1.6% and Man Alive comparable store net sales decreased 7.1%.
Merchandise inventories on a consolidated basis were $281.2 million at May
31, 2008, compared to $308.1 million at June 2, 2007. On a comparable per
square foot basis, consolidated merchandise inventories at May 31, 2008
decreased 8%. Finish Line merchandise inventories decreased 7% and Man Alive
inventories decreased 21% compared to one year ago.
Alan H. Cohen, Chief Executive Officer of the Company, stated, “While the
macroeconomic conditions remain challenging, we are encouraged by the
improvement in our business during April and May, which demonstrates the
progress we are making in the execution of our strategic merchandising plans
and inventory management. We have decreased our inventory levels as well as
improved the overall inventory aging versus last year. Our continued focus on
premium performance and sport style products in the Finish Line stores drove
product margins and average selling price higher during the quarter. The
Company’s financial position is strong as we ended the quarter with $40
million in cash and no interest-bearing debt. Going forward, we will remain
focused on these product and operational initiatives, which are measurably
improving the Company’s performance and helping differentiate The Finish Line,
Inc. with consumers.”
CONFERENCE CALL:
As previously announced, the Company is hosting a live conference call at
8:30 am (ET) on Friday, June 27th. Interested parties may participate in the
call by calling 1-706-634-5566 (conference leader is Steve Schneider and
conference ID# is 49672771). 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# 49672771). This replay will be
available commencing at approximately 9:45 am (ET) on Friday, June 27th and
will remain available through June 30th. 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 comparable store net sales 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 and 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;
general economic conditions and adverse factors impacting the retail athletic
industry; 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 699 Finish Line stores in 47 states and
online and 94 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 Weeks Ended
————————-
May 31, June 2,
2008 2007
——– ——-
Net sales $287,939 $285,751
Cost of sales (including occupancy
costs) 204,812 208,658
——- ——-
Gross profit 83,127 77,093
Selling, general, and administrative
expenses 81,427 80,815
——- ——-
Operating income (loss) 1,700 (3,722)
Interest income, net 255 463
——- ——-
Income (loss) from continuing
operations before income taxes 1,955 (3,259)
Income tax expense (benefit) 1,090 (659)
——- ——-
Income (loss) from continuing
operations 865 (2,600)
Income (loss) from discontinued
operations, net of income taxes 3 (1,271)
——- ——-
Net income (loss) $868 $(3,871)
======= =======
Income (loss) per diluted share:
Income (loss) from continuing
operations $0.02 $(0.05)
Income (loss) from discontinued
operations - (0.03)
——- ——-
Net income (loss) $0.02 $(0.08)
======= =======
Diluted weighted average shares
outstanding 53,895 47,135
======= =======
Dividends declared per share $ - $0.025
======= =======
Number of stores open at end of period:
Finish Line 700 695
Man Alive 94 93
Paiva (discontinued in Fall 2007) - 15
——- ——-
Total 794 803
======= =======
Condensed Consolidated Balance Sheets
May 31, June 2, March 1,
2008 2007 2008
——– ——— ——–
(Unaudited) (Unaudited)
ASSETS
————————————
Cash and cash equivalents $39,992 $33,050 $72,901
Merchandise inventories, net 281,217 308,097 268,333
Other current assets 55,614 29,179 40,573
Property and equipment, net 212,940 248,757 217,834
Other assets 44,618 33,089 43,406
——– ——– ——–
Total assets $634,381 $652,172 $643,047
======== ======== ========
LIABILITIES AND SHAREHOLDERS’ EQUITY
————————————
Current liabilities $137,165 $131,244 $99,931
Terminated merger-related
liabilities 269 - 47,129
Deferred credits from landlords 58,208 65,481 59,642
Other long-term liabilities 15,819 9,183 15,479
Shareholders’ equity 422,920 446,264 420,866
——– ——– ——–
Total liabilities and shareholders’
equity $634,381 $652,172 $643,047
======== ======== ========
CONTACTS:
Investor Relations: Media Requests:
Kevin S. Wampler, Elise Hasbrook,
(317) 899-1022 ext. 6914 (317) 899-1022 ext. 6827
Executive Vice President - Corporate Communications Manager
Chief Financial Officer
SOURCE The Finish Line, Inc.