Indiana | 0-20184 | 35-1537210 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
3308 North Mitthoeffer Road Indianapolis, Indiana | 46235 | |||
(Address of principal executive offices) | (Zip Code) |
Exhibit Number | Description |
99.1 | Press release issued December 19, 2014, regarding results of operations |
The Finish Line, Inc. | |||
Date: December 19, 2014 | By: | /s/ Edward W. Wilhelm | |
Name: | Edward W. Wilhelm | ||
Title: | Executive Vice President, Chief Financial Officer |
● | Consolidated net sales were $395.8 million, an increase of 8.6% over the prior year period. |
● | Finish Line comparable store sales increased 4.5%. |
● | On a GAAP basis, diluted earnings per share were $0.05. |
● | Non-GAAP diluted earnings per share, which excludes the impact of impairment charges and store closing costs, employee resignation costs and the recognition of a one-time tax benefit were $(0.02). |
The Finish Line, Inc. Consolidated Statements of Income (Unaudited) (In thousands, except per share and store/shop data) | ||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||
November 29, 2014 | November 30, 2013 | November 29, 2014 | November 30, 2013 | |||||||||||||
Net sales | $ | 395,828 | $ | 364,455 | $ | 1,269,239 | $ | 1,151,538 | ||||||||
Cost of sales (including occupancy costs) | 284,074 | 256,607 | 873,485 | 790,358 | ||||||||||||
Gross profit | 111,754 | 107,848 | 395,754 | 361,180 | ||||||||||||
Selling, general and administrative expenses | 114,923 | 104,092 | 335,701 | 306,903 | ||||||||||||
Impairment charges and store closing costs | 462 | 1,007 | 3,155 | 1,210 | ||||||||||||
Operating (loss) income | (3,631 | ) | 2,749 | 56,898 | 53,067 | |||||||||||
Interest income, net | — | 3 | 6 | 27 | ||||||||||||
(Loss) income before income taxes | (3,631 | ) | 2,752 | 56,904 | 53,094 | |||||||||||
Income tax (benefit) expense | (6,126 | ) | 1,161 | 17,595 | 20,796 | |||||||||||
Net income | 2,495 | 1,591 | 39,309 | 32,298 | ||||||||||||
Net loss attributable to redeemable noncontrolling interest | 83 | 727 | 1,861 | 1,602 | ||||||||||||
Net income attributable to The Finish Line, Inc. | $ | 2,578 | $ | 2,318 | $ | 41,170 | $ | 33,900 | ||||||||
Diluted earnings per share attributable to The Finish Line, Inc. shareholders | $ | 0.05 | $ | 0.05 | $ | 0.85 | $ | 0.69 | ||||||||
Diluted weighted average shares | 47,478 | 48,709 | 48,013 | 48,733 | ||||||||||||
Dividends declared per share | $ | 0.08 | $ | 0.07 | $ | 0.24 | $ | 0.21 | ||||||||
Finish Line store activity for the period: | ||||||||||||||||
Beginning of period | 647 | 659 | 645 | 645 | ||||||||||||
Opened | 2 | 3 | 9 | 22 | ||||||||||||
Closed | (7 | ) | (4 | ) | (12 | ) | (9 | ) | ||||||||
End of period | 642 | 658 | 642 | 658 | ||||||||||||
Square feet at end of period | 3,492,050 | 3,566,404 | ||||||||||||||
Average square feet per store | 5,439 | 5,420 | ||||||||||||||
Branded shops within department stores activity for the period: | ||||||||||||||||
Beginning of period | 370 | 133 | 185 | 3 | ||||||||||||
Opened | 27 | 48 | 213 | 178 | ||||||||||||
Closed | — | — | (1 | ) | — | |||||||||||
End of period | 397 | 181 | 397 | 181 | ||||||||||||
Square feet at end of period | 406,063 | 224,515 | ||||||||||||||
Average square feet per shop | 1,023 | 1,240 | ||||||||||||||
Running Specialty store activity for the period: | ||||||||||||||||
Beginning of period | 58 | 39 | 48 | 27 | ||||||||||||
Acquired | 7 | 4 | 15 | 13 | ||||||||||||
Opened | 1 | 4 | 3 | 7 | ||||||||||||
Closed | — | — | — | — | ||||||||||||
End of period | 66 | 47 | 66 | 47 | ||||||||||||
Square feet at end of period | 234,162 | 154,348 | ||||||||||||||
Average square feet per store | 3,548 | 3,284 |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||
November 29, 2014 | November 30, 2013 | November 29, 2014 | November 30, 2013 | |||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||
Cost of sales (including occupancy costs) | 71.8 | 70.4 | 68.8 | 68.6 | ||||||||
Gross profit | 28.2 | 29.6 | 31.2 | 31.4 | ||||||||
Selling, general and administrative expenses | 29.0 | 28.6 | 26.5 | 26.7 | ||||||||
Impairment charges and store closing costs | 0.1 | 0.2 | 0.2 | 0.1 | ||||||||
Operating (loss) income | (0.9 | ) | 0.8 | 4.5 | 4.6 | |||||||
Interest income, net | — | — | — | — | ||||||||
(Loss) income before income taxes | (0.9 | ) | 0.8 | 4.5 | 4.6 | |||||||
Income tax (benefit) expense | (1.5 | ) | 0.4 | 1.4 | 1.8 | |||||||
Net income | 0.6 | 0.4 | 3.1 | 2.8 | ||||||||
Net loss attributable to redeemable noncontrolling interest | 0.1 | 0.2 | 0.1 | 0.1 | ||||||||
Net income attributable to The Finish Line, Inc. | 0.7 | % | 0.6 | % | 3.2 | % | 2.9 | % |
Condensed Consolidated Balance Sheets | ||||||||||||
November 29, 2014 | November 30, 2013 | March 1, 2014 | ||||||||||
(Unaudited) | (Unaudited) | |||||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 85,426 | $ | 111,916 | $ | 229,079 | ||||||
Merchandise inventories, net | 398,615 | 360,463 | 304,209 | |||||||||
Other current assets | 44,384 | 49,783 | 33,675 | |||||||||
Property and equipment, net | 256,262 | 213,188 | 223,182 | |||||||||
Goodwill | 32,902 | 24,035 | 25,608 | |||||||||
Other assets, net | 9,017 | 14,185 | 9,192 | |||||||||
Total assets | $ | 826,606 | $ | 773,570 | $ | 824,945 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Current liabilities | $ | 209,049 | $ | 180,756 | $ | 193,670 | ||||||
Deferred credits from landlords | 29,507 | 28,639 | 27,658 | |||||||||
Other long-term liabilities | 20,625 | 17,465 | 19,659 | |||||||||
Redeemable noncontrolling interest, net | 480 | 2,034 | 1,774 | |||||||||
Shareholders’ equity | 566,945 | 544,676 | 582,184 | |||||||||
Total liabilities and shareholders’ equity | $ | 826,606 | $ | 773,570 | $ | 824,945 |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||||||||||||||
November 29, 2014 | November 30, 2013 | November 29, 2014 | November 30, 2013 | |||||||||||||||||||||||||
Gross profit, GAAP | $ | 111,754 | 28.2 | % | $ | 107,848 | 29.6 | % | $ | 395,754 | 31.2 | % | $ | 361,180 | 31.4 | % | ||||||||||||
Start-up costs | — | — | — | — | — | — | 5,758 | 0.5 | ||||||||||||||||||||
Gross profit, Non-GAAP | $ | 111,754 | 28.2 | % | $ | 107,848 | 29.6 | % | $ | 395,754 | 31.2 | % | $ | 366,938 | 31.9 | % |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||||||||||||||
November 29, 2014 | November 30, 2013 | November 29, 2014 | November 30, 2013 | |||||||||||||||||||||||||
Selling, general and administrative expenses, GAAP | $ | 114,923 | 29.0 | % | $ | 104,092 | 28.6 | % | $ | 335,701 | 26.5 | % | $ | 306,903 | 26.7 | % | ||||||||||||
Employee resignation costs | (842 | ) | (0.2 | ) | — | — | (842 | ) | (0.1 | ) | — | — | ||||||||||||||||
Start-up costs | — | — | — | — | — | — | (2,202 | ) | (0.2 | ) | ||||||||||||||||||
Selling, general and administrative expenses, Non-GAAP | $ | 114,081 | 28.8 | % | $ | 104,092 | 28.6 | % | $ | 334,859 | 26.4 | % | $ | 304,701 | 26.5 | % |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||||||||||||||
November 29, 2014 | November 30, 2013 | November 29, 2014 | November 30, 2013 | |||||||||||||||||||||||||
Operating (loss) income, GAAP | $ | (3,631 | ) | (0.9 | )% | $ | 2,749 | 0.8 | % | $ | 56,898 | 4.5 | % | $ | 53,067 | 4.6 | % | |||||||||||
Impairment charges and store closing costs | 462 | 0.1 | 1,007 | 0.2 | 3,155 | 0.2 | 1,210 | 0.1 | ||||||||||||||||||||
Employee resignation costs | 842 | 0.2 | — | — | 842 | 0.1 | — | — | ||||||||||||||||||||
Start-up costs | — | — | — | — | — | — | 7,960 | 0.7 | ||||||||||||||||||||
Operating (loss) income, Non-GAAP | $ | (2,327 | ) | (0.6 | )% | $ | 3,756 | 1.0 | % | $ | 60,895 | 4.8 | % | $ | 62,237 | 5.4 | % |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||||||||||||||
November 29, 2014 | November 30, 2013 | November 29, 2014 | November 30, 2013 | |||||||||||||||||||||||||
Income tax (benefit) expense, GAAP | $ | (6,126 | ) | (1.5 | )% | $ | 1,161 | 0.4 | % | $ | 17,595 | 1.4 | % | $ | 20,796 | 1.8 | % | |||||||||||
Tax affect of: | ||||||||||||||||||||||||||||
Impairment charges and store closing costs | 178 | — | 393 | — | 1,215 | 0.1 | 473 | — | ||||||||||||||||||||
Employee resignation costs | 324 | 0.1 | — | — | 324 | — | — | — | ||||||||||||||||||||
Start-up costs | — | — | — | — | — | — | 3,109 | 0.3 | ||||||||||||||||||||
One-time tax benefit | 4,313 | 1.1 | — | — | 4,313 | 0.3 | — | — | ||||||||||||||||||||
Income tax (benefit) expense, Non-GAAP | $ | (1,311 | ) | (0.3 | )% | $ | 1,554 | 0.4 | % | $ | 23,447 | 1.8 | % | $ | 24,378 | 2.1 | % |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||||||||||||||
November 29, 2014 | November 30, 2013 | November 29, 2014 | November 30, 2013 | |||||||||||||||||||||||||
Net income attributable to The Finish Line, Inc., GAAP | $ | 2,578 | 0.7 | % | $ | 2,318 | 0.6 | % | $ | 41,170 | 3.2 | % | $ | 33,900 | 2.9 | % | ||||||||||||
Impairment charges and store closing costs, net of income taxes* | 284 | 0.1 | 614 | 0.2 | 1,884 | 0.1 | 737 | 0.1 | ||||||||||||||||||||
Employee resignation costs, net of income taxes | 518 | 0.1 | — | — | 518 | 0.1 | — | — | ||||||||||||||||||||
Start-up costs, net of income taxes | — | — | — | — | — | — | 4,851 | 0.4 | ||||||||||||||||||||
One-time tax benefit | (4,313 | ) | (1.1 | ) | — | — | (4,313 | ) | (0.3 | ) | — | — | ||||||||||||||||
Net (loss) income attributable to The Finish Line, Inc., Non-GAAP | $ | (933 | ) | (0.2 | )% | $ | 2,932 | 0.8 | % | $ | 39,259 | 3.1 | % | $ | 39,488 | 3.4 | % |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||
November 29, 2014 | November 30, 2013 | November 29, 2014 | November 30, 2013 | |||||||||||||
Diluted earnings per share attributable to The Finish Line, Inc. shareholders, GAAP | $ | 0.05 | $ | 0.05 | $ | 0.85 | $ | 0.69 | ||||||||
Impairment charges and store closing costs, net of income taxes and redeemable noncontrolling interest | 0.01 | 0.01 | 0.04 | 0.01 | ||||||||||||
Employee resignation costs, net of income taxes | 0.01 | — | 0.01 | — | ||||||||||||
Start-up costs, net of income taxes | — | — | — | 0.10 | ||||||||||||
One-time tax benefit | (0.09 | ) | — | (0.09 | ) | — | ||||||||||
Diluted (loss) earnings per share attributable to The Finish Line, Inc. shareholders, Non-GAAP | $ | (0.02 | ) | $ | 0.06 | $ | 0.81 | $ | 0.80 |
Media Contact: | Investor Contact: |
Dianna Boyce | Ed Wilhelm |
Corporate Communications | Chief Financial Officer |
317-613-6577 | 317-613-6914 |