-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CsEWc6hEW8iGbMtDDQwollJYlaKsKQoB3S4k+4azACvN6ObnEhUc1r3msu7jEjXI 262btvdPriHr+drcowYUqA== 0001019687-04-000428.txt : 20040303 0001019687-04-000428.hdr.sgml : 20040303 20040303163318 ACCESSION NUMBER: 0001019687-04-000428 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040303 ITEM INFORMATION: FILED AS OF DATE: 20040303 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HOT TOPIC INC /CA/ CENTRAL INDEX KEY: 0001017712 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-APPAREL & ACCESSORY STORES [5600] IRS NUMBER: 770198182 STATE OF INCORPORATION: CA FISCAL YEAR END: 0130 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-28784 FILM NUMBER: 04646441 BUSINESS ADDRESS: STREET 1: 18305 EAST SAN JOSE AVENUE CITY: CITY OF INDUSTRY STATE: CA ZIP: 91748 BUSINESS PHONE: 6268394681 MAIL ADDRESS: STREET 1: 18305 EAST SAN JOSE AVENUE CITY: CITY OF INDUSTRY STATE: CA ZIP: 91768 8-K 1 hottopic_8k-030304.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) March 3, 2004 HOT TOPIC, INC. --------------- (Exact name of Registrant as specified in its charter) California 0-28784 77-0198182 ---------- ------- ---------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 18305 E. San Jose Avenue, City of Industry, California 91748 - ------------------------------------------------------ ----- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (626) 839-4681 __________________________________________________________ (Former name or former address, if changed since last report) ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. The information in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing. Attached hereto as Exhibit 99.1 is a copy of a press release that Hot Topic, Inc. issued on March 3, 2004 reporting, among other things, its results for the fourth quarter of fiscal 2003 (quarter ended January 31, 2004). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Hot Topic, Inc. /s/ James McGinty ------------------------------------- James McGinty Chief Financial Officer and Secretary March 3, 2004 EX-99.1 3 hottopic_8kex99-1.txt EXHIBIT 99.1 ** NEWS RELEASE ** Contact: Mr. Jim McGinty Chief Financial Officer Hot Topic, Inc. (626) 839-4681 x2675 jmcginty@hottopic.com HOT TOPIC, INC. REPORTS FOURTH QUARTER NET INCOME INCREASES 36% FY 2003 NET INCOME INCREASES 39% TO $48.0 MILLION CITY of INDUSTRY, CA, March 3, 2004 -- Hot Topic, Inc.(Nasdaq National Market: HOTT), a mall-based specialty retailer of music-licensed and music-influenced apparel, accessories and gift items for teens, reported record results for both the fourth quarter (13 weeks) and the 2003 fiscal year (52 weeks) ended January 31, 2004. Net income in the fourth quarter increased to $22.5 million or $0.45 per diluted share from $16.6 million or $0.34 per diluted share for the fourth quarter of the last fiscal year. Net sales for the fourth quarter increased 31% to $194.1 million from $148.3 million for the fourth quarter of fiscal 2002. As previously reported, comparable store sales increased 8.5% for the quarter compared to the fourth quarter of fiscal 2002. For the fiscal year ended January 31, 2004, net income was $48.0 million or $0.97 per diluted share, compared to $34.6 million or $0.70 per diluted share for the comparable period last year, an earnings per share increase of 39%. The Company previously reported its net sales for the fiscal year ended January 31, 2004 were $572.0 million, an increase of 29% over net sales of $443.3 million for fiscal year 2002, and comparable store sales increased 7.4%. At the end of the quarter, the Company operated 554 stores, including 52 Torrid stores, compared to 445 stores, including 27 Torrid stores, at the end of the fourth quarter of fiscal 2002. A conference call to discuss fourth quarter results, business trends, and other matters will be conducted today at 4:30 PM Eastern time. The conference call number is 800-370-0869, and will be accessible to all interested parties. The conference call will also be webcast at www.companyboardroom.com. A replay will be available at 877-519-4471, pass code 4469206, for approximately 10 days. Hot Topic, Inc. is a national mall-based specialty retailer of music-licensed and music-influenced apparel, accessories and gift items for young men and women principally between the ages of 12 and 22. Torrid, the Company's second concept, is a mall-based specialty retailer of plus-sized fashion-forward apparel and accessories that targets young women principally between the ages of 15 and 29. The Company currently operates 509 Hot Topic stores in 49 states throughout the United States and Puerto Rico, 52 Torrid stores, and Internet stores www.hottopic.com and www.torrid.com. Except for the historical information contained herein, this news release contains forward-looking statements, including statements relating to financial results, guidance, projections and other financial performance, and managing growth. These statements involve risks and uncertainties, including risks and uncertainties associated with meeting expected financial results, management of growth, relationships with mall developers and operators, the risk that available cash or mall space will not be adequate for planned expansion, fluctuations in sales and comparable store sales results, risks and uncertainties with respect to new store openings including risks associated with the Company's new store concepts and Internet stores, music and fashion trends, competition from other retailers, uncertainties generally associated with specialty retailing, the effect of economic conditions, the effect of severe weather or natural disasters, political and/or social changes or events that could negatively impact shopping patterns and/or mall traffic as well as other risks detailed in the Company's SEC reports, including its Quarterly Report on Form 10-Q for the quarter ended November 1, 2003 and its Annual Report on Form 10-K for the year ended February 1, 2003. The historical results achieved are not necessarily indicative of the future prospects of the Company. HOT TOPIC, INC. SUMMARY STATEMENTS OF INCOME Fourth Quarter Ended Jan. 31, 2004 Feb. 1, 2003 ------------ ------------ (In thousands, except per share amounts) Net sales $ 194,108 $ 148,278 Cost of goods sold, including buying, distribution and occupancy costs 113,899 86,169 ------------ ------------ Gross margin 80,209 62,109 Selling, general and administrative expenses 44,169 35,721 ------------ ------------ Operating income 36,040 26,388 Interest income-net 379 314 ------------ ------------ Income before income taxes 36,419 26,702 Provision for income taxes 13,949 10,147 ------------ ------------ Net income $ 22,470 $ 16,555 ============ ============ Earnings per share Basic $ 0.47 $ 0.35 Diluted $ 0.45 $ 0.34 Weighted average shares outstanding Basic 47,932 46,639 Diluted 50,342 48,501 Fiscal Year Ended Jan. 31, 2004 Feb. 1, 2003 ------------ ------------ (In thousands, except per share amounts) Net sales $ 572,039 $ 443,250 Cost of goods sold, including buying, distribution and occupancy costs 351,542 273,132 ------------ ------------ Gross margin 220,497 170,118 Selling, general and administrative expenses 143,952 115,634 ------------ ------------ Operating income 76,545 54,484 Interest income-net 1,318 1,371 ------------ ------------ Income before income taxes 77,863 55,855 Provision for income taxes 29,821 21,225 ------------ ------------ Net income $ 48,042 $ 34,630 ============ ============ Earnings per share Basic $ 1.01 $ 0.74 Diluted $ 0.97 $ 0.70 Weighted average shares outstanding Basic 47,479 47,027 Diluted 49,588 49,276 HOT TOPIC, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) Jan. 31, 2004 Feb. 1, 2003 ------------ ------------ Current Assets: Cash, cash equivalents and short-term investments $ 128,205 $ 83,418 Inventory 51,937 38,409 Prepaid expenses and other 10,654 7,866 Deferred tax assets 2,259 2,093 ------------ ------------ Total current assets 193,055 131,786 Leaseholds, fixtures and equipment - net 88,348 72,146 Deposits and other 189 171 Deferred tax assets -- 683 ------------ ------------ Total assets $ 281,592 $ 204,786 ============ ============ Current Liabilities: Accounts payable $ 15,841 $ 15,407 Accrued liabilities 28,133 19,639 Income taxes payable 7,242 6,453 ------------ ------------ Total current liabilities 51,216 41,499 Deferred rent 3,155 2,358 Deferred tax liability 3,316 -- ------------ ------------ Total liabilities 57,687 43,857 Shareholders' equity 223,905 160,929 ------------ ------------ Total liabilities and shareholders' equity $ 281,592 $ 204,786 ============ ============ HOT TOPIC, INC. OTHER DATA (Dollars in thousands) Fiscal Year Ended Jan. 31, 2004 Feb. 1, 2003 ------------ ------------ Depreciation and amortization $ 18,793 $ 15,309 Capital expenditures $ 35,654 $ 33,879 Number of stores open at end of period: Hot Topic 502 418 Torrid 52 27 Total store square footage 998,600 784,700 -----END PRIVACY-ENHANCED MESSAGE-----