EX-99.1 3 a90141exv99w1.txt EXHIBIT 99.1 Exhibit 99.1 [PACSUN LOGO] CONTACT: Carl Womack, Chief Financial Officer (714)414-4003 FOR IMMEDIATE RELEASE PACSUN ANNOUNCES FIRST QUARTER 2003 NET INCOME INCREASES 142% ANAHEIM, CA/MAY 12, 2003 -- Pacific Sunwear of California, Inc. (NASDAQ:PSUN) today reported results for the first quarter ended May 3, 2003. Net income for the first quarter of fiscal 2003 increased 142% to $8.0 million, or $.16 per share, basic and diluted, compared to $3.3 million, or $.07 per share, basic and diluted, for the first quarter of fiscal 2002, as adjusted for the stock split effected in December 2002. "I was very pleased with our first quarter earnings which were driven by a 13.1% same store sales increase," stated Greg Weaver, Chairman and CEO. "Our d.e.m.o. business continues to improve, producing a 36% comparable sales gain in the quarter. Our girls business at both PacSun and d.e.m.o. are generating very strong sales increases. As a result, first quarter operating margin increased significantly, driven by higher gross margin and significant leverage of store expenses," concluded Mr. Weaver. Total sales for the first quarter (13 weeks) ended May 3, 2003 were $198.3 million, an increase of 22.6% over total sales of $161.7 million for the first quarter (13 weeks) ended May 4, 2002. Same-store sales increased 13.1% for the comparable thirteen-week period ended May 3, 2003. Pacific Sunwear is a leading specialty retailer of everyday casual apparel, accessories and footwear designed to meet the needs of active teens and young adults. The Company ended the first quarter of fiscal 2003 operating 625 PacSun stores, 74 PacSun outlet stores and 109 d.e.m.o. stores, for a total of 808 stores in 49 states and Puerto Rico. PacSun's website address is www.pacsun.com. The historical results achieved are not necessarily indicative of future prospects of the Company. More information on factors that could affect forward looking statements and the Company's financial results is included in the Company's Report on Form 10-K for the year ended February 1, 2003 filed with the Securities and Exchange Commission. - MORE - 3450 EAST MIRALOMA AVENUE, ANAHEIM, CA 92806 (714) 414-4000 PACIFIC SUNWEAR OF CALIFORNIA, INC. SUMMARY STATEMENT OF INCOME (unaudited) (in $000's, except share and per share data)
FIRST QUARTER ENDED ------------------------------- MAY 3, 2003 MAY 4, 2002 ------------ ------------ Net Sales $ 198,331 $ 161,710 Gross margin 63,855 49,166 Selling, G&A expense 50,962 43,713 ------------ ------------ Operating income 12,893 5,453 Interest income/(expense), net 61 (147) ------------ ------------ Income before taxes 12,954 5,306 Income tax expense 4,975 2,037 ------------ ------------ Net income 7,979 3,269 Net income per share, basic* 0.16 0.07 Net income per share, diluted* $ 0.16 $ 0.07 Weighted average shares outstanding, basic* 49,683,032 49,197,137 Weighted average shares outstanding, diluted* 50,981,674 50,117,441
* Prior year share and per share amounts have been adjusted for the three-for-two stock split effected December 18, 2002. PACIFIC SUNWEAR OF CALIFORNIA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in $000's)
MAY 3, 2003 FEB. 1, 2003 ----------- ------------ ASSETS Current assets Cash & cash equivalents $ 33,576 $ 36,438 Inventories 134,883 123,433 Other current assets 22,326 22,762 -------- -------- Total current assets 190,785 182,633 Property and equipment, net 201,121 201,513 Other long-term assets 15,483 15,597 -------- -------- Total assets 407,389 399,743 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses 59,859 62,978 Income taxes payable 3,737 8,000 Current portion of long-term debt and capital leases 2,248 2,350 -------- -------- Total current liabilities 65,844 73,328 Long-term portion of debt and capital leases 2,878 3,338 Other long-term liabilities 21,596 20,686 -------- -------- Total liabilities 90,318 97,352 Total shareholder's equity 317,071 302,391 -------- -------- Total liabilities and shareholders' equity $407,389 $399,743
3450 EAST MIRALOMA AVENUE, ANAHEIM, CA 92806 (714) 414-4000 PACIFIC SUNWEAR OF CALIFORNIA, INC. CONDENSED CONSOLIDATED CASH FLOWS (unaudited) (in $000's)
FOR THE FIRST QUARTER ENDED --------------------------- MAY 3, 2003 MAY 4, 2002 ------------- ------------- Cash flows from operating activities: Net income $ 7,979 $ 3,269 Depreciation & amortization 8,783 7,823 Loss on disposal of property and equipment 326 417 Changes in operating assets and liabilities: Inventories (11,450) (8,915) Accounts payable and accrued expenses (3,119) (5,103) Income taxes and deferred income taxes (2,986) (7,575) Other assets and liabilities 1,460 (930) -------- -------- Net cash provided by/(used in) operating activities 993 (11,014) Cash flows from investing activities: Capital expenditures (8,717) (10,618) -------- -------- Net cash used in investing activities (8,717) (10,618) Cash flows from financing activities: Repayments of long-term debt and capital leases (562) (249) Proceeds from exercise of stock options 5,424 773 -------- -------- Net cash provided by financing activities 4,862 524 -------- -------- Net decrease in cash and cash equivalents (2,862) (21,108) Cash and cash equivalents, beginning of period 36,438 23,136 -------- -------- Cash and cash equivalents, end of period $ 33,576 $ 2,028
PACIFIC SUNWEAR OF CALIFORNIA, INC. SELECTED STORE OPERATING DATA
MAY 3, 2003 MAY 4, 2002 ----------- ----------- Stores open at beginning of first quarter 791 718 Stores opened during first quarter 18 34 Stores closed during first quarter (1) (3) ------ ------ Stores open at end of first quarter 808 749 Other operating data: PacSun stores 625 576 Outlet stores 74 67 d.e.m.o. stores 109 106 Total square footage at end of period (in thousands) 2,721 2,446
3450 EAST MIRALOMA AVENUE, ANAHEIM, CA 92806 (714) 414-4000