-----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, GEYit88BNIowHGn9IFtxpIg1x7NWtrjILuWxr2flmLI2D21txlUj4Q/cw2O7thZX tBkoR/RYj3wCLa7giShV1w== 0001193125-09-115750.txt : 20090522 0001193125-09-115750.hdr.sgml : 20090522 20090520161306 ACCESSION NUMBER: 0001193125-09-115750 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20090520 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090520 DATE AS OF CHANGE: 20090520 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: 09842705 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 d8k.htm FORM 8-K Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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): May 20, 2009

 

 

Hot Topic, Inc.

(Exact name of registrant as specified in charter)

 

California   0-28784   77-0198182
(State or other jurisdiction of incorporation)   (Commission File Number)   (I.R.S. Employer 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

Not Applicable.

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02 Results of Operations and Financial Condition.

Attached hereto as Exhibit 99.1 is a copy of a press release that Hot Topic, Inc. issued on May 20, 2009 containing certain financial information for the first quarter ended May 2, 2009.

The information in this Item 2.02 and the corresponding exhibit are being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (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, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

  (d) Exhibits:

 

Exhibit No.

  

Description

99.1    Press Release of Hot Topic, Inc. dated May 20, 2009.

[Remainder of page intentionally left blank; signature on following page.]


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.
By:    

/s/ JAMES MCGINTY

James McGinty

Chief Financial Officer

Date: May 20, 2009

 


INDEX TO EXHIBITS

 

Exhibit No.

  

Description

99.1    Press Release issued by Hot Topic, Inc. on May 20, 2009.
EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

** NEWS RELEASE **

HOT TOPIC, INC. REPORTS 1st QUARTER

EPS OF $0.03 PER DILUTED SHARE

Provides guidance for the 2nd quarter of 2009

CITY of INDUSTRY, CA, May 20, 2009 — Hot Topic, Inc. (Nasdaq Global Select Market: HOTT), reported results for its first quarter of fiscal 2009 (13 weeks) ended May 2, 2009.

The company reported net income in the first fiscal quarter of $1.2 million, or $0.03 per diluted share, compared to a net loss of $1.4 million, or $0.03 per share, for the comparable period last year. The first quarter of fiscal 2009 results include approximately $0.02 per share of expense related to ShockHound (www.shockhound.com), the company’s online music site.

As previously reported, total sales for the first quarter of fiscal 2009 increased 10.1% to $175.1 million compared to $159.0 million for the first quarter last year. Total company comparable store sales increased 7.1% for the first quarter of fiscal 2009. A summary of the sales results by division (including internet) is as follows:

 

     Net Sales     Comparable Store
Sales % Change
 
     $
Millions
   % Change
To Last
Year
    This
Year
    Last
Year
 

FIRST QUARTER:

         

Hot Topic

   $ 134.8    11.4 %   9.6 %   -3.0 %

Torrid

   $ 40.3    6.2 %   -1.7 %   -2.0 %

Total Co.

   $ 175.1    10.1 %   7.1 %   -2.8 %

At the end of the first quarter of fiscal 2009, the company operated 679 Hot Topic stores and 158 Torrid stores compared to 686 Hot Topic stores and 154 Torrid stores at the end of first quarter of fiscal 2008. During the first quarter of fiscal 2009, the company closed two Hot Topic stores and one Torrid Store. The company also remodeled or relocated three Hot Topic stores during the quarter.

The company issued second quarter guidance (13 weeks ending August 1, 2009) of a loss per share in the range of $0.04 to $0.06, as compared to a loss per share of $0.01 last year. This guidance is based upon a comp sales decline in the mid-single-digit percentage range. Included in the guidance is approximately $0.02 per share of expense related to ShockHound (www.shockhound.com), the company’s online music site.

A conference call to discuss first quarter results, business trends, guidance and other matters is scheduled for May 20, 2009 at 4:30 PM (ET). The live conference call number is 866-362-4829, pass code “Hot Topic”, and will be accessible to all interested parties. It will also be webcast on the company’s Investor Relations website located at http://investorrelations.hottopic.com. A replay of the conference call will be available at 888-286-8010, pass code 59502089, for approximately two weeks. In addition, a webcast replay of the conference call will be available on the company’s Investor Relations website for approximately two weeks.

Hot Topic, Inc. is a mall and web based specialty retailer operating the Hot Topic and Torrid concepts, as well as the e-space music discovery concept, ShockHound. Hot Topic offers music/pop culture-licensed and music/pop culture-influenced apparel, accessories, music and gift items for young men and women principally between the ages of 12 and 22. Torrid offers apparel, lingerie, shoes and accessories designed for various lifestyles for plus-size females principally between the ages of 15 and 29. ShockHound (www.shockhound.com) is a one-stop, genre-spanning music website where people of all ages can purchase MP3s and music merchandise, share their music interests and read music news and editorial content. As of May 2, 2009, the company operated 679 Hot Topic stores in all 50 states and Puerto Rico, 158 Torrid stores, and Internet stores www.hottopic.com, www.torrid.com and www.shockhound.com.


In addition to historical information, this news release and the aforementioned conference call contain forward-looking statements, which may include statements relating to financial results, guidance, store operations, closures, remodels and relocations, projections and other financial performance. These statements involve risks and uncertainties, including risks and uncertainties associated with meeting expected financial results, fluctuations in sales and comparable store sales results, the online music site, music and fashion trends, competition from other retailers, uncertainties generally associated with specialty retailing, technology and other risks associated with Internet sales, the effect of negative conditions in the global capital and credit markets, 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, relationships with mall developers and operators, relationships with our vendors, litigation proceedings and contingent liabilities, as well as other risks detailed in the company’s SEC reports including its Annual Report on Form 10-K for the year ended January 31, 2009 and its Quarterly Reports on Form 10-Q. Historical results achieved are not necessarily indicative of the future prospects of the company, and actual results or circumstances could differ materially from the forward-looking statements.

Contact:

Hot Topic, Inc., City of Industry, CA

Jim McGinty, CFO 626-839-4681 x2675


HOT TOPIC, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

     First Quarter Ended  
     May 2, 2009    May 3, 2008  

Net sales

   $ 175,125    $ 158,978  

Cost of goods sold, including buying, distribution and occupancy costs

     114,995      107,353  

Gross margin

     60,130      51,625  

Selling, general & administrative expenses

     58,278      54,313  

Income (loss) from operations

     1,852      (2,688 )

Interest income-net

     170      374  

Income (loss) before provision (benefit) for income taxes

     2,022      (2,314 )

Provision (benefit) for income taxes

     797      (908 )

Net income (loss)

   $ 1,225    $ (1,406 )

Earnings (loss) per share:

     

Basic

   $ 0.03    $ (0.03 )

Diluted

   $ 0.03    $ (0.03 )

Shares used in computing earnings (loss) per share:

     

Basic

     44,000      43,717  

Diluted

     44,679      43,717  


HOT TOPIC, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

     May 2, 2009    May 3, 2008

Current Assets:

     

Cash, cash equivalents and short-term investments

   $ 89,347    $ 41,933

Inventory

     82,152      77,329

Prepaid expenses and other

     14,707      17,080

Deferred tax assets

     6,365      4,298

Total current assets

     192,571      140,640

Property and equipment, net

     150,811      168,653

Deposits and other

     2,455      1,497

Long-term investments

     8,477      10,328

Deferred tax assets

     8,289      6,609

Total assets

   $ 362,603    $ 327,727

Current Liabilities:

     

Accounts payable

   $ 26,330    $ 21,912

Accrued liabilities

     34,315      28,709

Income taxes payable

     1,003      984

Total current liabilities

     61,648      51,605

Deferred rent

     35,581      39,424

Deferred compensation liability

     2,179      1,281

Income taxes payable

     1,850      844

Total liabilities

     101,258      93,154

Total shareholders’ equity

     261,345      234,573

Total liabilities and shareholders’ equity

   $ 362,603    $ 327,727

OTHER DATA

(Dollars in thousands)

(Unaudited)

 

     Three Months Ended
     May 2, 2009    May 3, 2008

Depreciation and amortization

   $ 9,648    $ 9,935

Capital expenditures

   $ 5,495    $ 7,456

Total company store square footage

     1,587,600      1,589,200

Hot Topic average store size

     1,757      1,755

Torrid average store size

     2,496      2,503
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