-----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, BxvzVD6nvjDp6bmO5K/zfuT6vO116VaoNd1NRgtxeZ0f/S+lKxj2rdzvhCvIHoUk rx4+9L5VLXf9BOjc2jHUgA== 0001157523-07-011797.txt : 20071129 0001157523-07-011797.hdr.sgml : 20071129 20071129160545 ACCESSION NUMBER: 0001157523-07-011797 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071129 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071129 DATE AS OF CHANGE: 20071129 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: 071275000 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 a5557152.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 29, 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 (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. On November 29, 2007, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the third quarter ended November 3, 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 November 29, 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: November 29, 2007 By: /s/ Richard M. Brooks ------------------------ Richard M. Brooks President and Chief Executive Officer EX-99.1 2 a5557152ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Zumiez Inc. Announces Record Fiscal 2007 Third Quarter Results Q3-07 Net Sales Increased 26.5% to $104.0 Million; Comparable Store Sales Increased 13.2% in Third Quarter; Q3-07 Diluted EPS Up 16.7% to $0.28; Company Reaffirms Fiscal 2007 EPS Guidance of $0.92 to $0.94 EVERETT, Wash.--(BUSINESS WIRE)--Nov. 29, 2007--Zumiez Inc. (NASDAQ: ZUMZ) today reported results for the third quarter ended November 3, 2007. Total net sales for the third quarter (13 weeks) ended November 3, 2007 increased by 26.5% to $104.0 million from $82.3 million reported in the third quarter ended October 28, 2006 (13 weeks). The company posted net income for the quarter of $8.1 million or $0.28 per diluted share versus $6.8 million or $0.24 per diluted share in the third quarter of the prior fiscal year. Comparable store sales increased 13.2% for the third quarter of fiscal 2007 compared to a 10.7% increase in the third quarter of fiscal 2006. Total net sales for the first nine months (39 week period) of fiscal 2007 increased by 37.1% to $254.8 million from $185.8 million reported in the first nine months of the prior year. The company posted net income of $12.9 million or $0.44 per diluted share in the first nine months of 2007 versus $9.6 million or $0.33 per diluted share in the prior year. Comparable store sales increased 12.2% for the first nine months of fiscal 2007 compared to 13.6% for the first nine months of fiscal 2006. Rick Brooks, President and Chief Executive Officer of Zumiez Inc., stated, "We opened 17 new stores in the third quarter and 48 stores year-to-date. In November, we reached our goal of 50 new stores in fiscal 2007, and continue to believe that we can eventually operate 800 Zumiez stores in the U.S. We remain optimistic for the long term prospects of Zumiez as we have cultivated a unique brand in the action sports industry. We believe the investments we are making, along with our proven strategy, will continue to drive quality long-term growth." 2007 Outlook The company is reiterating its diluted earnings per share guidance for fiscal 2007 of $0.92 to $0.94. Weighted average diluted shares for the fiscal year are expected to be approximately 29,400,000. 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, weather and the impact of other business variables and risks. Our business outlook is based on our current expectations and includes "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Although the Company believes the comments reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. A conference call will be held today to discuss third quarter results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (866) 825-1692 followed by the conference identification code of 88065282. 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 3, 2007 we operate 283 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 August 4, 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 CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except share and per share data) (Unaudited) Three Months Ended Nine Months Ended ------------------------- ------------------------ November 3, October 28, November 3, October 28, 2007 2006 2007 2006 ----------- ------------- ----------- ------------ Net sales $104,045 $82,258 $254,810 $185,799 Cost of goods sold 65,466 51,994 166,143 121,494 ----------- ------------- ----------- ------------ Gross profit 38,579 30,264 88,667 64,305 Selling, general and administrative expenses 25,857 19,343 69,060 49,919 ----------- ------------- ----------- ------------ Operating profit 12,722 10,921 19,607 14,386 Interest income, net 420 230 1,171 813 Other income (expense) 2 - 3 (16) ----------- ------------- ----------- ------------ Earnings before income taxes 13,144 11,151 20,781 15,183 Provision for income taxes 4,995 4,324 7,897 5,605 ----------- ------------- ----------- ------------ Net income $ 8,149 $ 6,827 $ 12,884 $ 9,578 =========== ============= =========== ============ Basic net income per share $ 0.28 $ 0.25 $ 0.45 $ 0.35 =========== ============= =========== ============ Diluted net income per share $ 0.28 $ 0.24 $ 0.44 $ 0.33 =========== ============= =========== ============ Weighted average shares used in computation of earnings per share: Basic 28,862,951 27,600,574 28,477,471 27,454,193 Diluted 29,554,774 28,861,871 29,386,951 28,756,468 ZUMIEZ INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) November 3, February 3, October 28, 2007 2007 2006 ----------- ----------- ----------- (Unaudited) (Audited) (Unaudited) Assets Current assets Cash and cash equivalents $ 6,920 $ 8,161 $2,111 Marketable securities 30,661 43,816 17,835 Receivables 5,450 5,223 5,816 Income tax receivable 7,856 - - Inventory 67,871 42,157 56,694 Prepaid expenses and other 4,817 3,593 965 Deferred tax assets 1,157 1,551 1,618 ----------- ----------- ----------- Total current assets 124,732 104,501 85,039 Leasehold improvements and equipment, net 66,563 49,889 48,930 Goodwill 13,154 12,904 12,766 Deferred tax assets 1,069 - - ----------- ----------- ----------- Total long-term assets 80,786 62,793 61,696 Total assets $ 205,518 $167,294 $146,735 =========== =========== =========== Liabilities and Shareholders' Equity Current liabilities Trade accounts payable $ 34,552 $ 24,164 $32,002 Book overdraft - 6,083 - Accrued payroll and payroll taxes 4,432 4,784 2,296 Income taxes payable - 6,598 2,974 Current portion of deferred rent and tenant allowances 2,071 1,377 1,331 Other accrued liabilities 6,133 6,566 6,262 ----------- ----------- --------- Total current liabilities 47,188 49,572 44,865 Long-term deferred rent and tenant allowances, less current portion 17,657 12,069 11,302 Deferred tax liabilities - 841 602 ----------- ----------- --------- Total long-term liabilities 17,657 12,910 11,904 Total liabilities 64,845 62,482 56,769 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; 29,002,852 shares issued and outstanding at November 3, 2007, 27,880,512 shares issued and outstanding at February 3, 2007, and 27,640,664 issued and outstanding at October 28, 2006 68,195 45,311 41,734 Accumulated other comprehensive income (loss) 79 (14) (4) Retained earnings 72,399 59,515 48,236 ----------- ----------- --------- Total shareholders' equity 140,673 104,812 89,966 Total liabilities and shareholders' equity 205,518 $167,294 $146,735 =========== =========== =========== CONTACT: Zumiez Inc. Trevor Lang, Chief Financial Officer 425-551-1500 ext. 1564 or Investors: Integrated Corporate Relations David Griffith/Chad Jacobs 203-682-8200 -----END PRIVACY-ENHANCED MESSAGE-----