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 March 24, 2017, regarding results of operations |
The Finish Line, Inc. | |||
Date: March 24, 2017 | By: | /s/ Edward W. Wilhelm | |
Name: | Edward W. Wilhelm | ||
Title: | Executive Vice President, Chief Financial Officer |
● | Consolidated net sales were $557.5 million, a decrease of 0.4% from the prior year period. |
● | Finish Line comparable sales decreased 4.5%. |
● | Finish Line Macy’s sales increased 35%. |
● | On a GAAP basis, diluted earnings per share from continuing operations were $0.30. |
● | Non-GAAP diluted earnings per share from continuing operations, which primarily excludes the impact from store impairment charges, were $0.50. |
● | Consolidated net sales were $1.84 billion, an increase of 2.5% over the prior year. |
● | Finish Line comparable sales increased 0.3%. |
● | Finish Line Macy’s sales increased nearly 30%. |
● | On a GAAP basis, diluted earnings per share from continuing operations were $0.85. |
● | Non-GAAP diluted earnings per share from continuing operations, which primarily excludes the impact from store impairment charges and severance related charges, were $1.06. |
The Finish Line, Inc. Consolidated Statements of Operations (Unaudited) (In thousands, except per share and store/shop data) | ||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||||||
February 25, 2017 | February 27, 2016 | February 25, 2017 | February 27, 2016 | |||||||||||||
Net sales | $ | 557,452 | $ | 559,845 | $ | 1,844,393 | $ | 1,798,982 | ||||||||
Cost of sales (including occupancy costs) | 395,298 | 368,845 | 1,295,989 | 1,242,960 | ||||||||||||
Gross profit | 162,154 | 191,000 | 548,404 | 556,022 | ||||||||||||
Selling, general, and administrative expenses | 128,705 | 136,594 | 480,897 | 469,836 | ||||||||||||
Impairment charges and store closing costs | 13,129 | 43,142 | 13,312 | 43,637 | ||||||||||||
Operating income | 20,320 | 11,264 | 54,195 | 42,549 | ||||||||||||
Interest expense, net | 101 | 61 | 279 | 65 | ||||||||||||
Income from continuing operations before income taxes | 20,219 | 11,203 | 53,916 | 42,484 | ||||||||||||
Income tax expense | 7,919 | 2,444 | 18,760 | 13,562 | ||||||||||||
Net income from continuing operations | 12,300 | 8,759 | 35,156 | 28,922 | ||||||||||||
Net loss from discontinued operations, net of tax | (21,771 | ) | (4,723 | ) | (53,364 | ) | (7,126 | ) | ||||||||
Net (loss) income | (9,471 | ) | 4,036 | (18,208 | ) | 21,796 | ||||||||||
Net loss attributable to redeemable noncontrolling interest of discontinued operations | — | — | — | 96 | ||||||||||||
Net (loss) income attributable to The Finish Line, Inc. | $ | (9,471 | ) | $ | 4,036 | $ | (18,208 | ) | $ | 21,892 | ||||||
Diluted (loss) earnings per share attributable to The Finish Line, Inc. shareholders: | ||||||||||||||||
Continuing operations | 0.30 | 0.20 | 0.85 | 0.64 | ||||||||||||
Discontinued operations | (0.53 | ) | (0.11 | ) | (1.29 | ) | (0.16 | ) | ||||||||
Diluted (loss) earnings per share attributable to The Finish Line, Inc. shareholders | (0.23 | ) | 0.09 | (0.44 | ) | 0.48 | ||||||||||
Diluted weighted average shares | 40,790 | 43,513 | 41,367 | 44,787 | ||||||||||||
Dividends declared per share | $ | 0.11 | $ | 0.10 | $ | 0.41 | $ | 0.37 | ||||||||
Finish Line store activity for the period: | ||||||||||||||||
Beginning of period | 580 | 617 | 591 | 637 | ||||||||||||
Opened | — | — | 6 | 8 | ||||||||||||
Closed | (7 | ) | (26 | ) | (24 | ) | (54 | ) | ||||||||
End of period | 573 | 591 | 573 | 591 | ||||||||||||
Square feet at end of period | 3,187,942 | 3,278,039 | ||||||||||||||
Average square feet per store | 5,564 | 5,547 | ||||||||||||||
Branded shops within department stores activity for the period: | ||||||||||||||||
Beginning of period | 392 | 394 | 392 | 395 | ||||||||||||
Opened | — | — | 1 | 1 | ||||||||||||
Closed | (18 | ) | (2 | ) | (19 | ) | (4 | ) | ||||||||
End of period | 374 | 392 | 374 | 392 | ||||||||||||
Square feet at end of period | 526,286 | 476,533 | ||||||||||||||
Average square feet per shop | 1,407 | 1,216 |
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||
February 25, 2017 | February 27, 2016 | February 25, 2017 | February 27, 2016 | |||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||
Cost of sales (including occupancy costs) | 70.9 | 65.9 | 70.3 | 69.1 | ||||||||
Gross profit | 29.1 | 34.1 | 29.7 | 30.9 | ||||||||
Selling, general, and administrative expenses | 23.1 | 24.4 | 26.1 | 26.1 | ||||||||
Impairment charges and store closing costs | 2.4 | 7.7 | 0.7 | 2.4 | ||||||||
Operating income | 3.6 | 2.0 | 2.9 | 2.4 | ||||||||
Interest expense, net | — | — | — | — | ||||||||
Income from continuing operations before income taxes | 3.6 | 2.0 | 2.9 | 2.4 | ||||||||
Income tax expense | 1.4 | 0.4 | 1.0 | 0.8 | ||||||||
Net income from continuing operations | 2.2 | 1.6 | 1.9 | 1.6 | ||||||||
Net loss from discontinued operations | (3.9 | ) | (0.9 | ) | (2.9 | ) | (0.4 | ) | ||||
Net (loss) income | (1.7 | ) | 0.7 | (1.0 | ) | 1.2 | ||||||
Net loss attributable to redeemable noncontrolling interest of discontinued operations | — | — | — | — | ||||||||
Net (loss) income attributable to The Finish Line, Inc. | (1.7 | )% | 0.7 | % | (1.0 | )% | 1.2 | % |
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
February 25, 2017 | February 27, 2016 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 90,856 | $ | 79,495 | ||||
Merchandise inventories, net | 331,146 | 347,966 | ||||||
Other current assets | 69,408 | 62,368 | ||||||
Assets held for sale | — | 80,795 | ||||||
Property and equipment, net | 247,897 | 239,067 | ||||||
Other assets, net | 7,161 | 7,857 | ||||||
Total assets | $ | 746,468 | $ | 817,548 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities, excluding the revolving credit facility and liabilities held for sale | $ | 221,971 | $ | 207,906 | ||||
Liabilities held for sale | — | 15,185 | ||||||
Deferred credits from landlords | 32,133 | 30,503 | ||||||
Other long-term liabilities | 40,866 | 36,310 | ||||||
Shareholders’ equity | 451,498 | 527,644 | ||||||
Total liabilities and shareholders’ equity | $ | 746,468 | $ | 817,548 |
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||||||||||||||||||
February 25, 2017 | February 27, 2016 | February 25, 2017 | February 27, 2016 | |||||||||||||||||||||||||
Selling, general, and administrative expenses, GAAP | $ | 128,705 | 23.1 | % | $ | 136,594 | 24.4 | % | $ | 480,897 | 26.1 | % | $ | 469,836 | 26.1 | % | ||||||||||||
Employee severance, retirement, and other costs | — | — | (3,710 | ) | (0.7 | ) | (2,132 | ) | (0.2 | ) | (3,710 | ) | (0.2 | ) | ||||||||||||||
Selling, general, and administrative expenses, Non-GAAP | $ | 128,705 | 23.1 | % | $ | 132,884 | 23.7 | % | $ | 478,765 | 25.9 | % | $ | 466,126 | 25.9 | % |
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||||||||||||||||||
February 25, 2017 | February 27, 2016 | February 25, 2017 | February 27, 2016 | |||||||||||||||||||||||||
Operating income, GAAP | $ | 20,320 | 3.6 | % | $ | 11,264 | 2.0 | % | $ | 54,195 | 2.9 | % | $ | 42,549 | 2.4 | % | ||||||||||||
Employee severance, retirement, and other costs | — | — | 3,710 | 0.7 | 2,132 | 0.2 | 3,710 | 0.2 | ||||||||||||||||||||
Impairment charges and store closing costs | 13,129 | 2.4 | 43,142 | 7.7 | 13,312 | 0.7 | 43,637 | 2.4 | ||||||||||||||||||||
Operating income, Non-GAAP | $ | 33,449 | 6.0 | % | $ | 58,116 | 10.4 | % | $ | 69,639 | 3.8 | % | $ | 89,896 | 5.0 | % |
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||||||||||||||||||
February 25, 2017 | February 27, 2016 | February 25, 2017 | February 27, 2016 | |||||||||||||||||||||||||
Income tax expense, GAAP | $ | 7,919 | 1.4 | % | $ | 2,444 | 0.4 | % | $ | 18,760 | 1.0 | % | $ | 13,562 | 0.8 | % | ||||||||||||
Tax affect of: | ||||||||||||||||||||||||||||
Employee severance, retirement, and other costs | — | — | 1,428 | 0.3 | 1,453 | 0.1 | 1,428 | 0.1 | ||||||||||||||||||||
Impairment charges and store closing costs | 5,053 | 0.9 | 16,610 | 3.0 | 5,125 | 0.3 | 16,799 | 0.9 | ||||||||||||||||||||
Income tax expense, Non-GAAP | $ | 12,972 | 2.3 | % | $ | 20,482 | 3.7 | % | $ | 25,338 | 1.4 | % | $ | 31,789 | 1.8 | % |
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||||||||||||||||||
February 25, 2017 | February 27, 2016 | February 25, 2017 | February 27, 2016 | |||||||||||||||||||||||||
Net income from continuing operations, GAAP | $ | 12,300 | 2.2 | % | $ | 8,759 | 1.6 | % | $ | 35,156 | 1.9 | % | $ | 28,922 | 1.6 | % | ||||||||||||
Employee severance, retirement, and other costs, net of income taxes | — | — | 2,282 | 0.4 | 679 | 0.1 | 2,282 | 0.1 | ||||||||||||||||||||
Impairment charges and store closing costs, net of income taxes | 8,076 | 1.5 | 26,532 | 4.7 | 8,187 | 0.4 | 26,838 | 1.5 | ||||||||||||||||||||
Net income from continuing operations, Non-GAAP | $ | 20,376 | 3.7 | % | $ | 37,573 | 6.7 | % | $ | 44,022 | 2.4 | % | $ | 58,042 | 3.2 | % |
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||||||
February 25, 2017 | February 27, 2016 | February 25, 2017 | February 27, 2016 | |||||||||||||
Diluted earnings per share from continuing operations, GAAP | $ | 0.30 | $ | 0.20 | $ | 0.85 | $ | 0.64 | ||||||||
Employee severance, retirement, and other costs, net of income taxes | — | 0.05 | 0.02 | 0.05 | ||||||||||||
Impairment charges and store closing costs, net of income taxes and redeemable noncontrolling interest | 0.20 | 0.60 | 0.19 | 0.59 | ||||||||||||
Diluted earnings per share from continuing operations, Non-GAAP | $ | 0.50 | $ | 0.85 | $ | 1.06 | $ | 1.28 |
Media Contact: | Investor Contact: |
Dianna Boyce | Ed Wilhelm |
Corporate Communications | Chief Financial Officer |
317-613-6577 | 317-613-6914 |