-----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, EoMUxanm+DGESgGJDhRUGY+C3HZINh/8G+UvbkiQx5N/WloKiuKQyinN7O8U4CKw V+ihkRt8GXFjGZLfJOK5tg== 0001157523-07-005540.txt : 20070523 0001157523-07-005540.hdr.sgml : 20070523 20070523160514 ACCESSION NUMBER: 0001157523-07-005540 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070523 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070523 DATE AS OF CHANGE: 20070523 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: 07874043 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 a5410719.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): May 23, 2007 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: |_| 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. On May 23, 2007, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the first quarter ended May 5, 2007, 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 this report and 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. Item 9.01. Financial Statements and Exhibits. (d) Exhibits 99.1. Press Release of Zumiez Inc., dated May 23, 2007. 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: May 23, 2007 By: /s/ Richard M. Brooks --------------------- Richard M. Brooks President and Chief Executive Officer EX-99.1 2 a5410719ex991.txt EXHIBIT 99.1 Exhibit 99.1 Zumiez Inc. Announces Record Fiscal 2007 First Quarter Results Q1-07 Net Sales Increased 44.0% to $68.8 Million; Comparable Store Sales Increased 11.3% in First Quarter; Q1-07 Diluted EPS Up 50.0% to $0.06; Company Reiterates Fiscal 2007 EPS Guidance of $0.94 to $0.96 EVERETT, Wash.--(BUSINESS WIRE)--May 23, 2007--Zumiez Inc. (NASDAQ: ZUMZ) today reported results for the first quarter ended May 5, 2007. Total net sales for the first quarter (13 weeks) ended May 5, 2007 increased by 44.0% to $68.8 million from $47.8 million reported in the first quarter (13 weeks) of the prior fiscal year. The company posted net income for the quarter of $1.6 million or $0.06 per diluted share versus $1.1 million or $0.04 per diluted share in the first quarter of the prior fiscal year. Comparable store sales increased 11.3% for the first quarter of fiscal 2007 compared to a 19.7% increase in the first quarter of fiscal 2006. Rick Brooks, President and Chief Executive Officer of Zumiez Inc., stated, "With strong increases in sales and earnings, we are pleased with our first quarter operating results and are confident that we are well positioned for another great year at Zumiez. We opened 19 new stores in the first quarter, accelerating our store openings from prior years. We remain on track to open 50 new stores in fiscal 2007, most of which will be opened by the end of the third quarter." 2007 Outlook The company remains focused on its long-term financial targets of comparable store sales growth in the mid single digit range, net square footage expansion of approximately 20%, and diluted EPS growth in excess of 30%. As such, the company is reaffirming its previous guidance for fiscal 2007 of $0.94 to $0.96 in diluted earnings per share. Weighted average diluted shares for the fiscal year are expected to be approximately 29,500,000. 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 first quarter results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (800) 591-6945 followed by the conference identification code of 27106145. 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 May 5, 2007 we operate 254 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-K for the year ended February 3, 2007 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 ----------------------------- May 5, 2007 April 29, 2006 -------------- -------------- Net sales $ 68,791 $ 47,785 Cost of goods sold 46,976 32,519 -------------- -------------- Gross profit 21,815 15,266 Selling, general and administrative expenses 19,632 13,796 -------------- -------------- Operating profit 2,183 1,470 Interest income, net 426 352 Other income (expense), net (1) -- -------------- -------------- Earnings before income taxes 2,608 1,822 Provision for income taxes 991 713 -------------- -------------- Net income $ 1,617 $ 1,109 ============== ============== Basic net income per share $ 0.06 $ 0.04 ============== ============== Diluted net income per share $ 0.06 $ 0.04 ============== ============== Weighted average shares outstanding, Basic 27,975,278 27,272,799 Weighted average shares outstanding, Diluted 29,008,312 28,631,942 ZUMIEZ INC. CONDENSED BALANCE SHEETS (in thousands, except share amounts) (Unaudited) May 5, February 3, April 29, 2007 2007 2006 --------- ----------- ---------- Assets Current assets Cash and cash equivalents $ 5,827 $ 8,161 $ 1,770 Marketable Securities 32,144 43,816 36,254 Receivables 10,980 5,223 3,869 Inventory 50,285 42,157 38,095 Prepaid expenses and other 3,603 3,593 336 Deferred tax assets 1,619 1,551 1,093 --------- ----------- ---------- Total current assets 104,458 104,501 81,417 Leasehold improvements and equipment, net 55,474 49,889 37,415 Goodwill 12,904 12,904 -- --------- ----------- ---------- Total long-term assets 68,378 62,793 Total assets $172,836 $ 167,294 $ 118,832 ========= =========== ========== Liabilities and Shareholders' Equity Current liabilities Trade accounts payable $ 28,430 $ 24,164 $ 21,161 Book overdraft 2,756 6,083 -- Accrued payroll and payroll taxes 3,750 4,784 3,311 Income taxes payable -- 6,598 71 Current portion of deferred rent and tenant allowances 1,584 1,377 978 Other accrued liabilities 6,227 6,566 7,359 --------- ----------- ---------- Total current liabilities 42,747 49,572 32,880 Long-term deferred rent and tenant allowances, less current portion 14,084 12,069 8,186 Deferred tax liabilities 227 841 1,252 --------- ----------- ---------- Total long-term liabilities 14,311 12,910 9,438 Commitments and contingencies 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; 28,381,694 shares issued and outstanding at May 5, 2007 and 27,880,512 shares issued and outstanding at February 3, 2007 and shares 27,357,481 issued and outstanding at April 29, 2006. 54,657 45,311 36,780 Accumulated other comprehensive (loss) (11) (14) (33) Retained earnings 61,132 59,515 39,767 --------- ----------- ---------- Total shareholders' equity 115,778 104,812 76,514 Total liabilities and shareholders' equity $172,836 $ 167,294 $ 118,832 ========= ========= ========= ZUMIEZ INC. CONDENSED CASH FLOWS (in thousands) (Unaudited) Three Months Ended --------------------------- May 5, 2007 April 29, 2006 ------------ -------------- Cash flows from operating activities Net income $ 1,617 $ 1,109 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 3,220 2,259 Deferred tax expense (682) (436) Stock compensation expense 1,042 337 Loss on disposal of assets 11 1 Excess tax benefit from stock options (7,247) -- Changes in operating assets and liabilities Receivables (5,757) (123) Inventory (6,331) (8,370) Prepaid expenses (10) 375 Trade accounts payable 2,469 3,371 Accrued payroll and payroll taxes (1,034) (1,077) Income taxes payable 649 (3,238) Other accrued liabilities (338) 2,981 Excess tax benefit on stock options -- 972 Deferred rent (352) 19 ------------ -------------- Net cash used in operating activities (12,743) (1,820) ------------ -------------- Cash flows from investing activities Additions to leasehold improvements and equipment (6,197) (3,546) Purchases of marketable securities (24,876) (36,242) Sales and maturities of marketable securities 36,506 38,201 ------------ -------------- Net cash provided by (used in) investing activities 5,433 (1,587) ------------ -------------- Cash flows from financing activities Change in book overdraft (3,327) -- Proceeds from exercise of stock options 1,056 440 Excess tax benefit from stock options 7,247 -- ------------ -------------- Net cash provided by financing activities 4,976 440 ------------ -------------- Net decrease in cash and cash equivalents (2,334) (2,967) Cash and cash equivalents, Beginning of period 8,161 4,737 ------------ -------------- Cash and cash equivalents, End of period $ 5,827 $ 1,770 ============ ============== Supplemental disclosure of cash flow information Cash paid during the period for interest $ 1 $ -- Cash paid during the period for income taxes 7,020 3,497 - ---------------------------------------------------------------------- CONTACT: Investor: Integrated Corporate Relations David Griffith/Chad Jacobs, 203-682-8200 -----END PRIVACY-ENHANCED MESSAGE-----