DELAWARE | 000-50763 | 91-1963165 | ||
(STATE OR OTHER JURISDICTION OF INCORPORATION) | (COMMISSION FILE NUMBER) | (I.R.S. EMPLOYER IDENTIFICATION NO.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | 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 |
ITEM 8.01 | OTHER EVENTS |
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
EXHIBIT NUMBER | DESCRIPTION | |
99.1 | Press release dated October 31, 2013, issued by Blue Nile, Inc. |
BLUE NILE, INC. | |
Registrant | |
Dated: October 31, 2013 | By: /s/ David Binder |
David Binder | |
Chief Financial Officer | |
(Principal Financial Officer) |
• | U.S. engagement net sales for the third quarter 2013 increased 7.1% to $57.9 million, compared to $54.1 million for the third quarter of 2012. |
• | U.S. non-engagement net sales for the third quarter 2013 increased 9.6% to $23.9 million, compared to $21.8 million for the third quarter of 2012. |
• | International net sales for the third quarter 2013 were $17.1 million, compared to $13.9 million for the third quarter 2012, an increase of 22.9%. Excluding the impact from changes in foreign exchange rates, international net sales increased 27.6%. |
• | Gross profit for the third quarter 2013 totaled $18.7 million. As a percent of net sales, gross profit was 18.9% compared to 18.8% for the third quarter of 2012. |
• | Selling, general and administrative expenses for the third quarter 2013 were $16.2 million, compared to $14.3 million in the third quarter of 2012. Selling, general and administrative expenses for the third quarter 2013 includes stock-based compensation expense of $1.2 million, compared to $1.3 million for the third quarter 2012. |
• | Earnings per diluted share included stock-based compensation expense of $0.06 for the third quarter 2013 and for the third quarter 2012. |
• | For the third quarter of 2013, net income included an income tax benefit of $1.1 million or $0.08 per diluted share resulting from certain discrete tax items. |
• | At the end of the third quarter 2013, cash and cash equivalents totaled $47.9 million. |
• | Net sales are expected to be between $146 million and $161 million. |
• | Earnings per diluted share are projected at $0.37 to $0.46. |
• | Net sales are expected to be between $450 million and $465 million. |
• | Earnings per diluted share are projected at $0.84 to $0.93. |
Quarter ended | Quarter ended | ||||||
September 29, 2013 | September 30, 2012 | ||||||
Net income | $ | 2,906 | $ | 1,741 | |||
Income tax (benefit) expense | (361 | ) | 961 | ||||
Other income, net | (23 | ) | (36 | ) | |||
Depreciation and amortization | 795 | 852 | |||||
Stock-based compensation | 1,254 | 1,287 | |||||
Non-GAAP adjusted EBITDA | $ | 4,571 | $ | 4,805 |
Year to date ended | Year to date ended | ||||||
September 29, 2013 | September 30, 2012 | ||||||
Net income | $ | 5,944 | $ | 3,473 | |||
Income tax expense | 1,375 | 1,937 | |||||
Other income, net | (227 | ) | (201 | ) | |||
Depreciation and amortization | 2,363 | 2,615 | |||||
Stock-based compensation | 3,705 | 3,741 | |||||
Non-GAAP adjusted EBITDA | $ | 13,160 | $ | 11,565 |
Quarter ended | Quarter ended | ||||||
September 29, 2013 | September 30, 2012 | ||||||
Net cash provided by operating activities | $ | 199 | $ | 4,776 | |||
Purchases of fixed assets, including internal-use | |||||||
software and website development | (1,908 | ) | (600 | ) | |||
Non-GAAP free cash flow | $ | (1,709 | ) | $ | 4,176 | ||
Twelve months ended | Twelve months ended | ||||||
September 29, 2013 | September 30, 2012 | ||||||
Net cash provided by operating activities | $ | 21,545 | $ | 25,631 | |||
Purchases of fixed assets, including internal-use | |||||||
software and website development | (4,539 | ) | (2,755 | ) | |||
Non-GAAP free cash flow | $ | 17,006 | $ | 22,876 |
Quarter ended September 29, 2013 | Year over year growth | Effect of foreign exchange movements | Year over year growth on constant exchange rate basis |
International net sales | 22.9% | (4.7)% | 27.6% |
Quarter ended September 30, 2012 | Year over year growth | Effect of foreign exchange movements | Year over year growth on constant exchange rate basis |
International net sales | (3.3)% | (1.8)% | (1.5)% |
Year to date ended September 29, 2013 | Year over year growth | Effect of foreign exchange movements | Year over year growth on constant exchange rate basis |
International net sales | 22.3% | (2.4)% | 24.7% |
Year to date ended September 30, 2012 | Year over year growth | Effect of foreign exchange movements | Year over year growth on constant exchange rate basis |
International net sales | 5.7% | (1.8)% | 7.5% |
September 29, 2013 | December 30, 2012 | September 30, 2012 | |||||||||
(unaudited) | (unaudited) | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 47,930 | $ | 87,017 | $ | 30,237 | |||||
Trade accounts receivable | 2,513 | 2,578 | 2,237 | ||||||||
Other accounts receivable | 2,434 | 907 | 797 | ||||||||
Inventories | 30,934 | 33,270 | 28,916 | ||||||||
Deferred income taxes | 684 | 926 | 419 | ||||||||
Prepaid income taxes | 1,607 | — | — | ||||||||
Prepaids and other current assets | 1,239 | 1,229 | 1,291 | ||||||||
Total current assets | 87,341 | 125,927 | 63,897 | ||||||||
Property and equipment, net | 9,573 | 7,876 | 8,080 | ||||||||
Intangible assets, net | 152 | 195 | 210 | ||||||||
Deferred income taxes | 7,161 | 7,786 | 7,458 | ||||||||
Note receivable | 2,000 | 2,000 | 2,000 | ||||||||
Other investments | 2,280 | 2,000 | 2,000 | ||||||||
Other assets | 192 | 117 | 153 | ||||||||
Total assets | $ | 108,699 | $ | 145,901 | $ | 83,798 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 73,839 | $ | 116,209 | $ | 66,862 | |||||
Accrued liabilities | 7,228 | 12,439 | 5,936 | ||||||||
Current portion of long-term financing obligation | 61 | 60 | 60 | ||||||||
Current portion of deferred rent | 277 | 246 | 246 | ||||||||
Total current liabilities | 81,405 | 128,954 | 73,104 | ||||||||
Long-term financing obligation, less current portion | 580 | 625 | 640 | ||||||||
Deferred rent, less current portion | 2,287 | 2,188 | 2,236 | ||||||||
Other long-term liabilities | 67 | 25 | — | ||||||||
Stockholders’ equity: | |||||||||||
Common stock | 21 | 21 | 21 | ||||||||
Additional paid-in capital | 210,865 | 197,282 | 195,947 | ||||||||
Accumulated other comprehensive loss | (56 | ) | (100 | ) | (137 | ) | |||||
Retained earnings | 88,827 | 82,883 | 77,964 | ||||||||
Treasury stock | (275,297 | ) | (265,977 | ) | (265,977 | ) | |||||
Total stockholders’ equity | 24,360 | 14,109 | 7,818 | ||||||||
Total liabilities and stockholders’ equity | $ | 108,699 | $ | 145,901 | $ | 83,798 |
Quarter ended | Year to date ended | ||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | ||||||||||||
Net sales | $ | 98,925 | $ | 89,830 | $ | 304,050 | $ | 263,914 | |||||||
Cost of sales | 80,238 | 72,900 | 247,620 | 214,515 | |||||||||||
Gross profit | 18,687 | 16,930 | 56,430 | 49,399 | |||||||||||
Selling, general and administrative expenses | 16,165 | 14,264 | 49,338 | 44,190 | |||||||||||
Operating income | 2,522 | 2,666 | 7,092 | 5,209 | |||||||||||
Other income, net | |||||||||||||||
Interest income, net | 20 | 20 | 84 | 105 | |||||||||||
Other income, net | 3 | 16 | 143 | 96 | |||||||||||
Total other income, net | 23 | 36 | 227 | 201 | |||||||||||
Income before income taxes | 2,545 | 2,702 | 7,319 | 5,410 | |||||||||||
Income tax (benefit) expense | (361 | ) | 961 | 1,375 | 1,937 | ||||||||||
Net income | $ | 2,906 | $ | 1,741 | $ | 5,944 | $ | 3,473 | |||||||
Basic net income per share | $ | 0.23 | $ | 0.14 | $ | 0.48 | $ | 0.26 | |||||||
Diluted net income per share | $ | 0.23 | $ | 0.14 | $ | 0.47 | $ | 0.25 | |||||||
Shares used for computation (in thousands): | |||||||||||||||
Basic | 12,431 | 12,677 | 12,441 | 13,439 | |||||||||||
Diluted | 12,687 | 12,870 | 12,670 | 13,643 |
Year to date ended | |||||||
September 29, 2013 | September 30, 2012 | ||||||
Operating activities: | |||||||
Net income | $ | 5,944 | $ | 3,473 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation and amortization | 2,363 | 2,615 | |||||
Loss on disposal of property and equipment | 3 | 31 | |||||
Stock-based compensation | 3,765 | 3,831 | |||||
Deferred income taxes | 867 | 1,865 | |||||
Tax deficiency from exercise of stock options | (147 | ) | (2,556 | ) | |||
Excess tax benefit from exercise of stock options | (250 | ) | (25 | ) | |||
Changes in assets and liabilities: | |||||||
Receivables | 115 | 2,147 | |||||
Inventories | 2,336 | 351 | |||||
Prepaid federal income taxes | (1,607 | ) | — | ||||
Prepaid expenses and other assets | (85 | ) | (278 | ) | |||
Accounts payable | (42,146 | ) | (28,881 | ) | |||
Accrued liabilities | (5,211 | ) | (3,451 | ) | |||
Other long term liabilities | 43 | — | |||||
Deferred rent and other | 130 | (103 | ) | ||||
Net cash used in operating activities | (33,880 | ) | (20,981 | ) | |||
Investing activities: | |||||||
Purchases of property and equipment | (4,109 | ) | (2,095 | ) | |||
Purchases of other investments | (280 | ) | (2,000 | ) | |||
Payments for note receivable | — | (2,000 | ) | ||||
Net cash used in investing activities | (4,389 | ) | (6,095 | ) | |||
Financing activities: | |||||||
Repurchase of common stock | (9,320 | ) | (38,850 | ) | |||
Proceeds from stock option exercises | 8,269 | 6,803 | |||||
Excess tax benefit from exercise of stock options | 250 | 25 | |||||
Principal payments under long-term financing obligation | (45 | ) | (44 | ) | |||
Net cash used in financing activities | (846 | ) | (32,066 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 28 | (12 | ) | ||||
Net decrease in cash and cash equivalents | (39,087 | ) | (59,154 | ) | |||
Cash and cash equivalents, beginning of period | 87,017 | 89,391 | |||||
Cash and cash equivalents, end of period | $ | 47,930 | $ | 30,237 |
Year to date ended | |||||||
September 29, 2013 | September 30, 2012 | ||||||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for income taxes | $ | 4,965 | $ | 2,891 | |||
Non-cash investing and financing activities: | |||||||
Receivable from stock option exercises | $ | 1,578 | $ | — |