EX-99.1 2 a52628exv99w1.htm EX-99.1 exv99w1
         
Exhibit 99.1
     
CONTACT:
Gar Jackson
Vice President, Investor Relations
(714) 414-4049
  (PACIFIC SUNWEAR LOGO)
FOR IMMEDIATE RELEASE
PACIFIC SUNWEAR ANNOUNCES
FIRST QUARTER EARNINGS RESULTS
ANAHEIM, CA/May 21, 2009 — Pacific Sunwear of California, Inc. (NASDAQ:PSUN) (the “Company”) today announced that net sales for the first quarter (13 weeks) of fiscal 2009 ended May 2, 2009, were $223.5 million versus net sales from continuing operations of $266.9 million for the first quarter (13 weeks) of fiscal 2008 ended May 3, 2008. Total Company same-store sales decreased 18 percent during the period.
The Company recorded a net loss of $8.7 million, or $(0.13) per diluted share, for the first quarter of fiscal 2009 compared to a net loss from continuing operations of $12.0 million, or $(0.17) per diluted share, for the first quarter of fiscal 2008.
“While we continue to face a very difficult sales environment, we are pleased with the results of our efforts to manage expenses and inventories. We ended the quarter with $32 million in cash and no credit facility borrowings,” commented Sally Frame Kasaks, Chief Executive Officer. “We are cautious about business in future quarters but remain singularly focused on executing our strategies.”
Financial Outlook for Second Fiscal Quarter of 2009
Assuming a same-store sales percentage decline in the range of 17 to 20 percent, the Company currently expects to report a loss of $(0.11) to $(0.17) per diluted share for the second quarter of fiscal 2009.
About Pacific Sunwear of California, Inc.
Pacific Sunwear is a leading lifestyle specialty retailer rooted in the youth culture and fashion vibe of Southern California. The Company sells casual apparel with a limited selection of accessories and footwear designed to meet the needs of teens and young adults. As of May 2, 2009, the Company operated 927 stores in 50 states and Puerto Rico. PacSun’s website address is www.pacsun.com.
The Company will host a conference call today at 4:45 pm Eastern time to review its financial results. A telephonic replay of the conference call will be available, beginning approximately two hours following the call, for one week and can be accessed in the United States/Canada at (800) 642-1687 or internationally at (706) 645-9291; pass code: 99066033. For those unable to listen to the live Web broadcast or utilize the call-in replay, an archived version will be available on the company’s investor relations web site through midnight, August 19, 2009.
3450 East Miraloma Avenue • Anaheim, CA 92806 • (714) 414-4000

 

 

Pacific Sunwear Safe Harbor
This press release contains “forward-looking statements” including, without limitation, statements regarding the Company’s financial outlook for the second quarter of fiscal 2009 and its cautious expectations as to its business in future quarters. In each case, these statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company intends that these forward-looking statements be subject to the safe harbors created thereby. These statements are not historical facts and involve estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Uncertainties that could adversely affect our business and results include, among others, the following factors: additional adverse changes in economic conditions generally; additional adverse changes in consumer spending; changes in consumer demands and preferences; higher than anticipated markdowns and/or higher than estimated selling, general and administrative costs; competition from other retailers and uncertainties generally associated with apparel retailing; merchandising/fashion sensitivity; sales from private label merchandise; reliance on key personnel; economic impact of natural disasters, terrorist attacks or war/threat of war; shortages of supplies and/or contractors, as a result of natural disasters or terrorist acts, could cause unexpected delays in new store openings, relocations, renovations or expansions; reliance on foreign sources of production; and other risks outlined in the company’s SEC filings, including but not limited to the Annual Report on Form 10-K for the year ended January 31, 2009 and subsequent periodic reports filed with the Securities and Exchange Commission. Historical results achieved are not necessarily indicative of future prospects of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur after such statements are made. Nonetheless, the Company reserves the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this press release. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.
***MORE***
3450 East Miraloma Avenue • Anaheim, CA 92806 • (714) 414-4000

 

 

PACIFIC SUNWEAR OF CALIFORNIA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except share and per share data)
                 
    First Quarter Ended  
    05/02/09     05/03/08  
Net sales
   $ 223,465     $ 266,867  
Gross margin
     61,274       75,465  
Selling, G&A expenses
     76,769       95,812  
 
            
Operating loss from continuing operations
     (15,495 )     (20,347 )
Other expense (income), net
     229       (758 )
 
            
Loss from continuing operations before income taxes
     (15,724 )     (19,589 )
Income tax benefit
     (6,981 )     (7,620 )
 
            
Loss from continuing operations
     (8,743 )     (11,969 )
Loss from discontinued operations, net of tax benefit
     —       (25,133 )
 
            
Net loss
   $ (8,743 )   $ (37,102 )
 
            
 
                
Loss from continuing operations per share:
                
Basic
   $ (0.13 )   $ (0.17 )
 
            
Diluted
   $ (0.13 )   $ (0.17 )
 
            
 
                
Net loss per share:
                
Basic
   $ (0.13 )   $ (0.53 )
 
            
Diluted
   $ (0.13 )   $ (0.53 )
 
            
 
                
Weighted average shares outstanding:
                
Basic
     65,207,991       69,915,802  
 
            
Diluted
     65,207,991       69,915,802  
 
            
PACIFIC SUNWEAR OF CALIFORNIA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
                         
    05/02/09     01/31/09     05/03/08  
ASSETS
                        
Current assets:
                        
Cash & cash equivalents
   $ 32,274     $ 24,776     $ 42,645  
Inventories
     115,518       107,205       167,508  
Other current assets
     49,601       58,943       87,808  
 
                  
Total current assets
     197,393       190,924       297,961  
Property and equipment, net
     312,896       323,344       365,561  
Other long-term assets
     46,809       55,241       39,653  
 
                  
Total assets
   $ 557,098     $ 569,509     $ 703,175  
 
                  
 
                        
LIABILITIES AND SHAREHOLDERS’ EQUITY
                        
Current liabilities:
                        
Accounts payable
   $ 53,913     $ 45,263     $ 72,711  
Other current liabilities
     39,161       47,564       70,820  
 
                  
Total current liabilities
     93,074       92,827       143,531  
Deferred lease incentives
     49,155       52,313       61,375  
Deferred rent
     22,730       23,008       25,261  
Other long-term liabilities
     29,244       29,374       35,190  
 
                  
Total liabilities
     194,203       197,522       265,357  
Total shareholders’ equity
     362,895       371,987       437,818  
 
                  
Total liabilities and shareholders’ equity
   $ 557,098     $ 569,509     $ 703,175  
 
                  
3450 East Miraloma Avenue • Anaheim, CA 92806 • (714) 414-4000

 

 

PACIFIC SUNWEAR OF CALIFORNIA, INC.
CONDENSED CONSOLIDATED CASH FLOWS
(unaudited, in thousands)
                 
    FIRST QUARTER ENDED  
    05/02/09     05/03/08  
Cash flows from operating activities:
                
Net loss
   $ (8,743 )   $ (37,102 )
Depreciation & amortization
     17,099       21,647  
Asset impairment
     1,992       8,503  
Non-cash stock based compensation
     955       1,289  
Tax deficiencies related to exercise of stock options
     (1,297 )     (388 )
Loss on disposal of property and equipment
     —       687  
Changes in operating assets and liabilities:
                
Inventories
     (8,313 )     2,674  
Accounts payable and other current liabilities
     387       10,917  
Other assets and liabilities
     10,528       (32,856 )
 
            
Net cash provided by/(used in) operating activities
     12,608       (24,629 )
 
                
Cash flows from investing activities:
                
Capital expenditures
     (8,813 )     (21,006 )
Proceeds from sale of land
     3,705       —  
 
            
Net cash used in investing activities
     (5,108 )     (21,006 )
 
                
Cash flows from financing activities:
                
Repurchases of common stock
     —       (10,248 )
Proceeds from exercise of stock options
     —       944  
Net repayments under long-term leases
     (2 )     (3 )
 
            
Net cash used in financing activities
     (2 )     (9,307 )
 
            
 
                
Net increase/(decrease) in cash and cash equivalents
     7,498       (54,942 )
Cash and cash equivalents, beginning of period
     24,776       97,587  
 
            
Cash and cash equivalents, end of period
   $ 32,274     $ 42,645  
 
            
PACIFIC SUNWEAR OF CALIFORNIA, INC.
SELECTED STORE OPERATING DATA
                 
    Fiscal 2009   Fiscal 2008
Stores open at beginning of fiscal year
     932       1,107  
Stores opened during the period
     —       3  
Stores closed during the period
     5       (168 )
 
                
Stores open at end of period
     927       942  
Note: Fiscal 2008 store closures include 153 demo stores. demo became a discontinued operation during the first quarter of fiscal 2008.
                                 
    05/02/09   05/03/08
            Square           Square
    # of   Footage   # of   Footage
    Stores   (000s)   Stores   (000s)
             
PacSun Core stores
     525       2,086       540       2,105  
PacSun Value stores
     402       1,491       402       1,491  
             
Total stores
     927       3,577       942       3,596  
3450 East Miraloma Avenue • Anaheim, CA 92806 • (714) 414-4000