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) |
Emerging growth company | ¨ |
Exhibit Number | Description |
The Finish Line, Inc. | |||
Date: December 21, 2017 | By: | /s/ Edward W. Wilhelm | |
Name: | Edward W. Wilhelm | ||
Title: | Executive Vice President, Chief Financial Officer |
● | Consolidated net sales were $378.5 million, an increase of 1.8% over the prior year period. |
● | Finish Line comparable store sales increased 0.8%. |
● | Finish Line Macy’s sales increased 2.3%. |
● | On a GAAP basis, diluted earnings per share from continuing operations were ($0.32). |
● | Non-GAAP diluted earnings per share from continuing operations, which primarily excludes the impact from store impairment charges, were ($0.26). |
The Finish Line, Inc. Consolidated Statements of Operations (Unaudited) (In thousands, except per share and store/shop data) | ||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||
November 25, 2017 | November 26, 2016 | November 25, 2017 | November 26, 2016 | |||||||||||||
Net sales | $ | 378,533 | $ | 371,741 | $ | 1,277,657 | $ | 1,286,941 | ||||||||
Cost of sales (including occupancy costs) | 281,117 | 272,377 | 922,482 | 900,691 | ||||||||||||
Gross profit | 97,416 | 99,364 | 355,175 | 386,250 | ||||||||||||
Selling, general, and administrative expenses | 114,703 | 118,133 | 348,887 | 352,193 | ||||||||||||
Impairment charges and store closing costs | 4,286 | — | 8,779 | 182 | ||||||||||||
Operating (loss) income | (21,573 | ) | (18,769 | ) | (2,491 | ) | 33,875 | |||||||||
Interest income (expense), net | 7 | (152 | ) | 17 | (178 | ) | ||||||||||
(Loss) income from continuing operations before income taxes | (21,566 | ) | (18,921 | ) | (2,474 | ) | 33,697 | |||||||||
Income tax (benefit) expense | (8,625 | ) | (8,332 | ) | (877 | ) | 10,841 | |||||||||
Net (loss) income from continuing operations | (12,941 | ) | (10,589 | ) | (1,597 | ) | 22,856 | |||||||||
Net income (loss) from discontinued operations, net of tax | 27 | (29,849 | ) | (334 | ) | (31,593 | ) | |||||||||
Net loss | $ | (12,914 | ) | $ | (40,438 | ) | $ | (1,931 | ) | $ | (8,737 | ) | ||||
Diluted (loss) earnings per share: | ||||||||||||||||
Continuing operations | (0.32 | ) | (0.26 | ) | (0.04 | ) | 0.54 | |||||||||
Discontinued operations | — | (0.74 | ) | (0.01 | ) | (0.75 | ) | |||||||||
Diluted loss per share | (0.32 | ) | (1.00 | ) | (0.05 | ) | (0.21 | ) | ||||||||
Diluted weighted average shares | 40,313 | 40,511 | 40,262 | 41,234 | ||||||||||||
Dividends declared per share | $ | 0.11 | $ | 0.10 | $ | 0.33 | $ | 0.30 | ||||||||
Finish Line store activity for the period: | ||||||||||||||||
Beginning of period | 569 | 585 | 573 | 591 | ||||||||||||
Opened | 2 | 1 | 2 | 6 | ||||||||||||
Closed | (5 | ) | (6 | ) | (9 | ) | (17 | ) | ||||||||
End of period | 566 | 580 | 566 | 580 | ||||||||||||
Square feet at end of period | 3,162,391 | 3,224,813 | ||||||||||||||
Average square feet per store | 5,587 | 5,560 | ||||||||||||||
Branded shops within department stores activity for the period: | ||||||||||||||||
Beginning of period | 378 | 391 | 374 | 392 | ||||||||||||
Opened | — | 1 | 4 | 1 | ||||||||||||
Closed | — | — | — | (1 | ) | |||||||||||
End of period | 378 | 392 | 378 | 392 | ||||||||||||
Square feet at end of period | 540,404 | 539,923 | ||||||||||||||
Average square feet per shop | 1,430 | 1,377 |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||
November 25, 2017 | November 26, 2016 | November 25, 2017 | November 26, 2016 | |||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||
Cost of sales (including occupancy costs) | 74.3 | 73.3 | 72.2 | 70.0 | ||||||||
Gross profit | 25.7 | 26.7 | 27.8 | 30.0 | ||||||||
Selling, general, and administrative expenses | 30.3 | 31.7 | 27.3 | 27.4 | ||||||||
Impairment charges and store closing costs | 1.1 | — | 0.7 | — | ||||||||
Operating (loss) income | (5.7 | ) | (5.0 | ) | (0.2 | ) | 2.6 | |||||
Interest income (expense), net | — | (0.1 | ) | — | — | |||||||
(Loss) income from continuing operations before income taxes | (5.7 | ) | (5.1 | ) | (0.2 | ) | 2.6 | |||||
Income tax (benefit) expense | (2.3 | ) | (2.3 | ) | (0.1 | ) | 0.8 | |||||
Net (loss) income from continuing operations | (3.4 | ) | (2.8 | ) | (0.1 | ) | 1.8 | |||||
Net income (loss) from discontinued operations, net of tax | — | (8.1 | ) | (0.1 | ) | (2.5 | ) | |||||
Net loss | (3.4 | )% | (10.9 | )% | (0.2 | )% | (0.7 | )% |
Condensed Consolidated Balance Sheets | ||||||||||||
November 25, 2017 | November 26, 2016 | February 25, 2017 | ||||||||||
(Unaudited) | (Unaudited) | |||||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 77,194 | $ | 33,297 | $ | 90,856 | ||||||
Merchandise inventories, net | 392,099 | 401,528 | 331,146 | |||||||||
Other current assets | 42,046 | 47,689 | 69,408 | |||||||||
Assets held for sale | — | 31,935 | — | |||||||||
Property and equipment, net | 150,942 | 166,655 | 157,594 | |||||||||
Intangible assets, net | 84,266 | 91,658 | 90,303 | |||||||||
Other assets, net | 5,191 | 8,874 | 7,161 | |||||||||
Total assets | $ | 751,738 | $ | 781,636 | $ | 746,468 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Current liabilities | $ | 243,233 | $ | 230,237 | $ | 221,971 | ||||||
Revolving Credit Facility | — | 17,000 | — | |||||||||
Liabilities held for sale | — | 15,344 | — | |||||||||
Deferred credits from landlords | 34,631 | 32,401 | 32,133 | |||||||||
Other long-term liabilities | 36,499 | 20,986 | 40,866 | |||||||||
Shareholders’ equity | 437,375 | 465,668 | 451,498 | |||||||||
Total liabilities and shareholders’ equity | $ | 751,738 | $ | 781,636 | $ | 746,468 |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||||||||||||||
November 25, 2017 | November 26, 2016 | November 25, 2017 | November 26, 2016 | |||||||||||||||||||||||||
Selling, general, and administrative expenses, GAAP | $ | 114,703 | 30.3 | % | $ | 118,133 | 31.7 | % | $ | 348,887 | 27.3 | % | $ | 352,193 | 27.4 | % | ||||||||||||
Employee severance, retirement, and other costs | — | — | (2,132 | ) | (0.5 | ) | (338 | ) | — | (2,132 | ) | (0.2 | ) | |||||||||||||||
Selling, general, and administrative expenses, Non-GAAP | $ | 114,703 | 30.3 | % | $ | 116,001 | 31.2 | % | $ | 348,549 | 27.3 | % | $ | 350,061 | 27.2 | % |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||||||||||||||
November 25, 2017 | November 26, 2016 | November 25, 2017 | November 26, 2016 | |||||||||||||||||||||||||
Operating (loss) income, GAAP | $ | (21,573 | ) | (5.7 | )% | $ | (18,769 | ) | (5.0 | )% | $ | (2,491 | ) | (0.2 | )% | $ | 33,875 | 2.6 | % | |||||||||
Employee severance, retirement, and other costs | — | — | 2,132 | 0.5 | 338 | — | 2,132 | 0.2 | ||||||||||||||||||||
Impairment charges and store closing costs | 4,286 | 1.1 | — | — | 8,779 | 0.7 | 182 | — | ||||||||||||||||||||
Operating (loss) income, Non-GAAP | $ | (17,287 | ) | (4.6 | )% | $ | (16,637 | ) | (4.5 | )% | $ | 6,626 | 0.5 | % | $ | 36,189 | 2.8 | % |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||||||||||||||
November 25, 2017 | November 26, 2016 | November 25, 2017 | November 26, 2016 | |||||||||||||||||||||||||
Income tax (benefit) expense, GAAP | $ | (8,625 | ) | (2.3 | )% | $ | (8,332 | ) | (2.3 | )% | $ | (877 | ) | (0.1 | )% | $ | 10,841 | 0.8 | % | |||||||||
Tax effect of: | ||||||||||||||||||||||||||||
Employee severance, retirement, and other costs* | — | — | 1,453 | 0.4 | 130 | — | 1,453 | 0.2 | ||||||||||||||||||||
Impairment charges and store closing costs* | 1,653 | 0.4 | — | — | 3,379 | 0.3 | 70 | — | ||||||||||||||||||||
Income tax (benefit) expense, Non-GAAP | $ | (6,972 | ) | (1.9 | )% | $ | (6,879 | ) | (1.9 | )% | $ | 2,632 | 0.2 | % | $ | 12,364 | 1.0 | % |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||||||||||||||
November 25, 2017 | November 26, 2016 | November 25, 2017 | November 26, 2016 | |||||||||||||||||||||||||
Net (loss) income from continuing operations, GAAP | $ | (12,941 | ) | (3.4 | )% | $ | (10,589 | ) | (2.8 | )% | $ | (1,597 | ) | (0.1 | )% | $ | 22,856 | 1.8 | % | |||||||||
Employee severance, retirement, and other costs, net of income taxes | — | — | 679 | 0.1 | 208 | — | 679 | — | ||||||||||||||||||||
Impairment charges and store closing costs, net of income taxes | 2,633 | 0.7 | — | — | 5,400 | 0.4 | 112 | — | ||||||||||||||||||||
Net (loss) income from continuing operations, Non-GAAP | $ | (10,308 | ) | (2.7 | )% | $ | (9,910 | ) | (2.7 | )% | $ | 4,011 | 0.3 | % | $ | 23,647 | 1.8 | % |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||
November 25, 2017 | November 26, 2016 | November 25, 2017 | November 26, 2016 | |||||||||||||
Diluted (loss) earnings per share from continuing operations, GAAP | $ | (0.32 | ) | $ | (0.26 | ) | $ | (0.04 | ) | $ | 0.54 | |||||
Employee severance, retirement, and other costs, net of income taxes | — | 0.02 | — | 0.02 | ||||||||||||
Impairment charges and store closing costs, net of income taxes | 0.06 | — | 0.14 | — | ||||||||||||
Diluted (loss) earnings per share from continuing operations, Non-GAAP | $ | (0.26 | ) | $ | (0.24 | ) | $ | 0.10 | $ | 0.56 |
Media Contact: | Investor Contact: |
Dianna Boyce | Ed Wilhelm |
Corporate Communications | Chief Financial Officer |
317-613-6577 | 317-613-6914 |