-----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, V+3ZoefgNwWG18wI21E3R/JYFNG6ArsDCkOU7KZvDj4HwCKiwPqpmyluB0803sOV UNZtfDxsBYAC4rvfteCQYw== 0001157523-06-011429.txt : 20061116 0001157523-06-011429.hdr.sgml : 20061116 20061116081913 ACCESSION NUMBER: 0001157523-06-011429 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061115 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061116 DATE AS OF CHANGE: 20061116 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Zumiez Inc CENTRAL INDEX KEY: 0001318008 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-APPAREL & ACCESSORY STORES [5600] IRS NUMBER: 911040022 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-51300 FILM NUMBER: 061221620 BUSINESS ADDRESS: STREET 1: 6300 MERRILL CREEK PARKWAY STREET 2: SUITE B CITY: EVERETT STATE: WA ZIP: 98203 BUSINESS PHONE: 425-551-1564 MAIL ADDRESS: STREET 1: 6300 MERRILL CREEK PARKWAY STREET 2: SUITE B CITY: EVERETT STATE: WA ZIP: 98203 8-K 1 a5276579.txt ZUMIEZ INC. 8-K 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): November 15, 2006 ZUMIEZ INC. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) Washington - -------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 000-51300 91-1040022 - -------------------------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) 6300 Merrill Creek Parkway, Suite B, Everett, Washington 98203 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (425) 551-1500 - -------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) 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 7.01. Regulation FD Disclosure. On November 15, 2006, Zumiez Inc. issued a press release (the "Press Release"), a copy of which is attached hereto as Exhibit 99.1 and the contents of which are incorporated herein by this reference. In accordance with General Instruction B.2. of Form 8-K, the information contained in the Press Release shall not be deemed "Filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, 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, except as shall be expressly set forth by specific reference in such a filing. This report will not be deemed a determination or an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD. Item 9.01. Financial Statements and Exhibits. (d) Exhibits 99.1. Press Release of Zumiez Inc., dated November 15, 2006. SIGNATURES 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. ZUMIEZ INC. (Registrant) Date: November 16, 2006 By: /s/ Richard M. Brooks ------------------------ Richard M. Brooks President and Chief Executive Officer EX-99.1 2 a5276579ex99_1.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Zumiez Inc. Announces Fiscal 2006 Third Quarter Results Q3-06 Net Sales Increased 43% to $82.3 Million; Comparable Store Sales Increased 10.7% in Third Quarter; Q3-06 Diluted EPS Up 33.3% to $0.24; Company Reiterates Fiscal 2006 EPS Guidance of $0.66 to $0.67 EVERETT, Wash.--(BUSINESS WIRE)--Nov. 15, 2006--Zumiez Inc. (NASDAQ: ZUMZ) today reported results for the third quarter ended October 28, 2006. Total net sales for the third quarter (13 weeks) ended October 28, 2006 increased by 43% to $82.3 million from $57.4 million reported in the third quarter (13 weeks) of the prior fiscal year. The company posted net income for the quarter of $6.8 million or $0.24 per diluted share versus $5.3 million or $0.18 per diluted share in the third quarter of the prior fiscal year. Comparable store sales were 10.7% for the third quarter of fiscal 2006 compared to 9.8% in the third quarter of fiscal 2005. Total net sales for the first nine months (39 week period) of fiscal 2006 increased by 43% to $185.8 million from $130.2 million reported in the first nine months of the prior year. The company posted net income of $9.6 million or $0.33 per diluted share in the first nine months of 2006 versus $6.1 million or $0.23 per diluted share in the prior year. Comparable store sales increased 13.6% for the first nine months of fiscal 2006 compared to 10.8% for the first nine months of fiscal 2005. Rick Brooks, President and Chief Executive Officer of Zumiez Inc., stated, "We are pleased with our third quarter results and the earnings growth driven by our team year to date. During the quarter, Zumiez opened 12 stores and remains on track to open 42 new stores in fiscal 2006, in addition to the 19 Fast Forward stores acquired in the second quarter." Mr. Brooks concluded, "While we are proud of our accomplishments so far this year, we believe we are still in the early stages of our growth potential and we continue to strive to improve the store experience for our customers. We had 233 stores at quarter end, and believe we can eventually operate 800 stores in the U.S. In fiscal 2007, we plan to open 50 new stores, consistent with our long-term goal of expanding square footage by 20-25% annually. We have a terrific team in place to deliver on our goals as we expand in the marketplace." 2006 Outlook The company stated that it is maintaining guidance for fiscal 2006 to $0.66 to $0.67 in diluted earnings per share. Weighted average diluted shares for the fiscal year are expected to be approximately 28,900,000. In putting forth this outlook, the company reminds investors of the complexity of accurately assessing future growth given the difficulty in predicting fashion trends and consumer preferences, boardsports popularity and participation rates, general economic conditions and the impact of other business variables and risks. A conference call will be held today to discuss third quarter results and will be web cast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (800) 706-7741 followed by the conference identification code of 89765355. About Zumiez Inc. Zumiez is a leading specialty retailer of action sports related apparel, footwear, equipment and accessories. Our stores cater to young men and women between ages 12-24, focusing on skateboarding, surfing, snowboarding, motocross and BMX. As of November 10, 2006 we operate 233 stores, which are primarily located in shopping malls and our web site address is www.zumiez.com. Safe Harbor Statement Certain statements in this press release and oral statements relating thereto made from time to time by representatives of the company may constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, predictions and guidance relating to the company's future financial performance, brand and product category diversity, ability to adjust product mix, integration of acquired businesses, growing customer demand for our products and new store openings. In some cases, you can identify forward-looking statements by terminology such as, "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based on management's current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation, those described in the company's quarterly report on Form 10-Q for the quarter ended July 29, 2006 as filed with the Securities and Exchange Commission and available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. ZUMIEZ INC. CONDENSED STATEMENT OF INCOME (in thousands, except share and per share data) (Unaudited) Three Months Ended Nine Months Ended ------------------------ ------------------------ October 28, October 29, October 28, October 29, 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Net sales $82,258 $57,412 $185,799 $130,188 Cost of goods sold 51,994 35,999 121,494 86,153 ----------- ----------- ----------- ----------- Gross profit 30,264 21,413 64,305 44,035 Selling, general and administrative expenses 19,343 13,198 49,919 34,530 ----------- ----------- ----------- ----------- Operating profit 10,921 8,215 14,386 9,505 Interest income (expense), net 230 221 813 269 Other income (expense), net -- 1 (16) 2 ----------- ----------- ----------- ----------- Earnings before income taxes 11,151 8,437 15,183 9,776 Provision for income taxes 4,324 3,158 5,605 3,689 ----------- ----------- ----------- ----------- Net income $ 6,827 $ 5,279 $ 9,578 $ 6,087 =========== =========== =========== =========== Basic net income per share $ 0.25 $ 0.19 $ 0.35 $ 0.24 =========== =========== =========== =========== Diluted net income per share $ 0.24 $ 0.18 $ 0.33 $ 0.23 =========== =========== =========== =========== Weighted average shares outstanding, Basic 27,600,574 27,089,364 27,454,193 25,424,554 Weighted average shares outstanding, Diluted 28,861,871 28,601,778 28,756,468 26,923,744 ZUMIEZ INC. CONDENSED BALANCE SHEETS (in thousands, except share amounts) October 28, January 28, October 29, 2006 2006 2005 ----------- ----------- ----------- (Unaudited) (Audited) (Unaudited) Assets Current assets Cash and cash equivalents $ 2,111 $ 4,737 $ 24,015 Marketable Securities 17,835 38,264 6,086 Receivables 5,816 3,746 4,558 Inventory 56,694 30,559 43,597 Prepaid expenses and other 965 711 1,038 Deferred tax assets 1,618 938 1,177 ----------- ----------- ----------- Total current assets 85,039 78,955 80,471 Leasehold improvements and equipment, net 48,930 35,456 32,780 Goodwill 12,766 -- -- ----------- ----------- ----------- Total long-term assets 61,696 35,456 32,780 Total assets $146,735 $114,411 $113,251 =========== =========== =========== Liabilities and Shareholders' Equity Current liabilities Trade accounts payable $ 32,002 $ 18,623 $ 30,280 Accrued payroll and payroll taxes 2,296 4,388 2,678 Income taxes payable 2,974 3,309 -- Current portion of deferred rent and tenant allowances 1,331 900 1,223 Other accrued liabilities 6,262 4,378 3,480 ----------- ----------- ----------- Total current liabilities 44,865 31,598 37,661 ----------- ------------ ------------ Long-term deferred rent and tenant allowances, less current portion 11,302 7,595 7,274 Deferred tax liabilities 602 1,534 1,452 ----------- ----------- ----------- Total long-term liabilities 11,904 9,129 8,726 ----------- ------------ ------------ Commitments and contingencies (Note 4) Shareholders' equity Preferred stock, no par value, 40,000,000 shares authorized; none issued and outstanding Common stock, no par value, 100,000,000 shares authorized; 27,640,664 shares issued and outstanding at October 28, 2006, 27,259,297 shares issued and outstanding at January 28, 2006, and 27,222,653 issued and outstanding at October 29, 2005 41,734 35,031 34,971 Accumulated other comprehensive income (4) (5) (2) Retained earnings 48,236 38,658 31,895 ----------- ----------- ----------- Total shareholders' equity 89,966 73,684 66,864 ----------- ------------ ------------ Total liabilities and shareholders' equity $146,735 $114,411 $113,251 =========== =========== =========== ZUMIEZ INC. CONDENSED CASH FLOWS (in thousands) (Unaudited) For the Nine Months Ended -------------------------- October 28, October 29, ------------ ------------- 2006 2005 ------------ ------------ Cash flows from operating activities Net income $9,578 $ 6,087 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 7,478 5,361 Deferred tax expense (1,611) (377) Stock compensation expense 1,394 123 Loss on disposal of assets 15 33 Loss on sale of marketable securities 17 -- Excess tax benefit from stock options (4,057) -- Changes in operating assets and liabilities Receivables (1,902) (2,647) Inventory (17,824) (17,143) Prepaid expenses (85) 127 Trade accounts payable 7,556 15,816 Accrued payroll and payroll taxes (2,158) 117 Income taxes payable 3,722 (2,611) Other accrued liabilities 1,202 (1,920) Deferred rent (18) 385 ------------ ------------ Net cash provided by operating activities 3,307 3,351 ------------ ------------ Cash flows from investing activities Additions to leasehold improvements and equipment (14,469) (8,554) Acquisitions, net of cash acquired (16,404) -- Purchases of marketable securities (79,977) (6,086) Sales and maturities of marketable securities 100,340 -- ------------ ------------ Net cash used in investing activities (10,510) (14,640) ------------ ------------ Cash flows from financing activities Change in book overdraft -- (429) Borrowings on revolving credit facility -- 16,450 Payments on revolving credit facility (732) (16,450) Proceeds from exercise 1,252 1,007 Proceeds from sale of stock -- 33,700 Excess tax benefit from stock options 4,057 -- ------------ ------------ Net cash provided by financing activities 4,577 34,278 ------------ ------------ Net increase (decrease) in cash and cash equivalents (2,626) 22,989 Cash and cash equivalents, Beginning of period 4,737 1,026 ------------ ------------ Cash and cash equivalents, End of period $2,111 $24,015 ============ ============ Supplemental disclosure of cash flow information Cash paid during the period for interest $ -- $ 59 Cash paid during the period for income taxes 3,577 2,746 - ---------------------------------------------------------------------- CONTACT: Zumiez Inc. Brenda Morris, Chief Financial Officer, 425-551-1564 or Integrated Corporate Relations Investors: Chad Jacobs/David Griffith, 203-682-8200 -----END PRIVACY-ENHANCED MESSAGE-----