Indiana
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0-20184
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35-1537210
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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3308 North Mitthoeffer Road
Indianapolis, Indiana
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46235
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(Address of principal executive offices)
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(Zip Code)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit
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Description
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99.1
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Press Release issued March 24, 2011
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The Finish Line, Inc.
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March 24, 2011
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By:
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/s/ Edward W. Wilhelm
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Name: Edward W. Wilhelm
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Title: Executive Vice President, Chief Financial Officer
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Exhibit No.
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Description
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99.1
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Press Release issued March 24, 2011
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The Finish Line, Inc.
Consolidated Statements of Income
(In thousands, except per share and store data)
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Thirteen
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Thirteen
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Fifty-Two
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Fifty-Two
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|||||||||||||
Weeks Ended
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Weeks Ended
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Weeks Ended
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Weeks Ended
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|||||||||||||
February 26,
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February 27,
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February 26,
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February 27,
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|||||||||||||
2011
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2010
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2011
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2010
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|||||||||||||
(Unaudited)
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(Unaudited)
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(Unaudited)
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||||||||||||||
Net sales
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$ | 384,599 | $ | 374,530 | $ | 1,229,002 | $ | 1,172,415 | ||||||||
Cost of sales (including occupancy costs)
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246,288 | 238,326 | 815,073 | 793,556 | ||||||||||||
Gross profit
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138,311 | 136,204 | 413,929 | 378,859 | ||||||||||||
Selling, general and administrative expenses
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82,883 | 78,558 | 302,718 | 297,323 | ||||||||||||
Store closing costs
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263 | 560 | 350 | 2,707 | ||||||||||||
Impairment charges
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1,228 | 6,771 | 1,228 | 6,771 | ||||||||||||
Operating income
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53,937 | 50,315 | 109,633 | 72,058 | ||||||||||||
Interest income, net
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138 | 44 | 508 | 322 | ||||||||||||
Income from continuing operations before income taxes
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54,075 | 50,359 | 110,141 | 72,380 | ||||||||||||
Income tax expense
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19,818 | 19,564 | 41,277 | 21,547 | ||||||||||||
Income from continuing operations
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34,257 | 30,795 | 68,864 | 50,833 | ||||||||||||
Loss from discontinued operations, net of income taxes
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(5 | ) | (234 | ) | (30 | ) | (15,161 | ) | ||||||||
Net income
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$ | 34,252 | $ | 30,561 | $ | 68,834 | $ | 35,672 | ||||||||
Income (loss) per diluted share:
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||||||||||||||||
Income from continuing operations
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$ | 0.63 | $ | 0.56 | $ | 1.26 | $ | 0.92 | ||||||||
Loss from discontinued operations
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- | (0.01 | ) | - | (0.28 | ) | ||||||||||
Net income
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$ | 0.63 | $ | 0.55 | $ | 1.26 | $ | 0.64 | ||||||||
Diluted weighted average shares outstanding
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53,467 | 54,541 | 53,775 | 54,597 | ||||||||||||
Dividends declared per share
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$ | 0.05 | $ | 0.04 | $ | 0.17 | $ | 0.13 | ||||||||
Store activity for the period (Finish Line only):
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||||||||||||||||
Beginning of period
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669 | 681 | 666 | 689 | ||||||||||||
Opened
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- | - | 11 | 5 | ||||||||||||
Closed
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(5 | ) | (15 | ) | (13 | ) | (28 | ) | ||||||||
End of period
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664 | 666 | 664 | 666 | ||||||||||||
Square feet at end of period
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3,564,277 | 3,590,780 | ||||||||||||||
Average square feet per store
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5,368 | 5,392 |
Thirteen Weeks Ended
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Fifty-Two Weeks Ended
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February 26,
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February 27,
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February 26,
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February 27,
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|||||||||||||
2011
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2010
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2011
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2010
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Net sales
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100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Cost of sales (including occupancy costs)
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64.0 | 63.6 | 66.3 | 67.7 | ||||||||||||
Gross profit
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36.0 | 36.4 | 33.7 | 32.3 | ||||||||||||
Selling, general and administrative expenses
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21.6 | 21.0 | 24.6 | 25.4 | ||||||||||||
Store closing costs
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0.1 | 0.2 | - | 0.2 | ||||||||||||
Impairment charges
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0.3 | 1.8 | 0.1 | 0.6 | ||||||||||||
Operating income
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14.0 | 13.4 | 9.0 | 6.1 | ||||||||||||
Interest income, net
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- | - | - | - | ||||||||||||
Income from continuing operations before income taxes
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14.0 | 13.4 | 9.0 | 6.1 | ||||||||||||
Income tax expense
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5.1 | 5.2 | 3.4 | 1.8 | ||||||||||||
Income from continuing operations
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8.9 | 8.2 | 5.6 | 4.3 | ||||||||||||
Loss from discontinued operations, net of income taxes
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- | - | - | (1.3 | ) | |||||||||||
Net income
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8.9 | % | 8.2 | % | 5.6 | % | 3.0 | % |
Condensed Consolidated Balance Sheets
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||||||||
February 26,
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February 27,
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|||||||
2011
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2010
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(Unaudited)
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ASSETS
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Cash and cash equivalents
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$ | 299,323 | $ | 234,508 | ||||
Merchandise inventories, net
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193,505 | 190,894 | ||||||
Other current assets
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16,856 | 18,205 | ||||||
Property and equipment, net
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126,510 | 135,943 | ||||||
Other assets
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28,651 | 30,718 | ||||||
Total assets
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$ | 664,845 | $ | 610,268 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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||||||||
Current liabilities
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$ | 126,420 | $ | 114,943 | ||||
Deferred credits from landlords
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34,653 | 40,006 | ||||||
Other long-term liabilities
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13,527 | 13,169 | ||||||
Shareholders' equity
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490,245 | 442,150 | ||||||
Total liabilities and shareholders' equity
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$ | 664,845 | $ | 610,268 |
The Finish Line, Inc.
Reconciliation of GAAP to Non-GAAP Consolidated Statements of Income (Unaudited)
Thirteen Weeks Ended February 26, 2011 and February 27, 2010
(In thousands, except per share data)
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||||||||||||||||||||||||||
Fourth Quarter Fiscal 2011
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Fourth Quarter Fiscal 2010
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GAAP
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Adjustments
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Non-GAAP
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GAAP
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Adjustments
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Non-GAAP
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|||||||||||||||||||||
Net sales (1)
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$ | 384,599 | $ | - | $ | 384,599 | $ | 374,530 | $ | (2,622 | ) | $ | 371,908 | |||||||||||||
Cost of sales (including occupancy costs)
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246,288 | - | 246,288 | 238,326 | - | 238,326 | ||||||||||||||||||||
Gross profit
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138,311 | - | 138,311 | 136,204 | (2,622 | ) | 133,582 | |||||||||||||||||||
Selling, general and administrative expenses
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82,883 | - | 82,883 | 78,558 | - | 78,558 | ||||||||||||||||||||
Store closing costs
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263 | - | 263 | 560 | - | 560 | ||||||||||||||||||||
Impairment charges (2)
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1,228 | (1,228 | ) | - | 6,771 | (6,771 | ) | - | ||||||||||||||||||
Operating income
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53,937 | 1,228 | 55,165 | 50,315 | 4,149 | 54,464 | ||||||||||||||||||||
Interest income, net
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138 | - | 138 | 44 | - | 44 | ||||||||||||||||||||
Income from continuing operations before income taxes
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54,075 | 1,228 | 55,303 | 50,359 | 4,149 | 54,508 | ||||||||||||||||||||
Income tax expense (3)
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19,818 | 463 | 20,281 | 19,564 | 1,635 | 21,199 | ||||||||||||||||||||
Income from continuing operations
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34,257 | 765 | 35,022 | 30,795 | 2,514 | 33,309 | ||||||||||||||||||||
Loss from discontinued operations, net of income taxes
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(5 | ) | - | (5 | ) | (234 | ) | - | (234 | ) | ||||||||||||||||
Net income
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$ | 34,252 | $ | 765 | $ | 35,017 | $ | 30,561 | $ | 2,514 | $ | 33,075 | ||||||||||||||
Income (loss) per diluted share:
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||||||||||||||||||||||||||
Income from continuing operations
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$ | 0.63 | $ | 0.02 | $ | 0.65 | $ | 0.56 | $ | 0.05 | $ | 0.61 | ||||||||||||||
Loss from discontinued operations
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- | - | - | (0.01 | ) | - | (0.01 | ) | ||||||||||||||||||
Net income
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$ | 0.63 | $ | 0.02 | $ | 0.65 | $ | 0.55 | $ | 0.05 | $ | 0.60 | ||||||||||||||
Diluted weighted average shares outstanding
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53,467 | - | 53,467 | 54,541 | - | 54,541 | ||||||||||||||||||||
Fourth Quarter Fiscal 2011
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Fourth Quarter Fiscal 2010
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GAAP
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Adjustments
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Non-GAAP
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GAAP
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Adjustments
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Non-GAAP
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|||||||||||||||||||||
Net sales (1)
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100.0 | % | - | % | 100.00 | % | 100.0 | % | - | % | 100.00 | % | ||||||||||||||
Cost of sales (including occupancy costs) (4)
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64.0 | - | 64.0 | 63.6 | 0.5 | 64.1 | ||||||||||||||||||||
Gross profit
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36.0 | - | 36.0 | 36.4 | (0.5 | ) | 35.9 | |||||||||||||||||||
Selling, general and administrative expenses (4)
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21.6 | - | 21.6 | 21.0 | 0.1 | 21.1 | ||||||||||||||||||||
Store closing costs
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0.1 | - | 0.1 | 0.2 | - | 0.2 | ||||||||||||||||||||
Impairment charges (2)
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0.3 | (0.3 | ) | - | 1.8 | (1.8 | ) | - | ||||||||||||||||||
Operating income
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14.0 | 0.3 | 14.3 | 13.4 | 1.2 | 14.6 | ||||||||||||||||||||
Interest income, net
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- | - | - | - | - | - | ||||||||||||||||||||
Income from continuing operations before income taxes
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14.0 | 0.3 | 14.3 | 13.4 | 1.2 | 14.6 | ||||||||||||||||||||
Income tax expense (3)
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5.1 | 0.1 | 5.2 | 5.2 | 0.4 | 5.6 | ||||||||||||||||||||
Income from continuing operations
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8.9 | 0.2 | 9.1 | 8.2 | 0.8 | 9.0 | ||||||||||||||||||||
Loss from discontinued operations, net of income taxes
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- | - | - | - | - | - | ||||||||||||||||||||
Net income
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8.9 | % | 0.2 | % | 9.1 | % | 8.2 | % | 0.8 | % | 9.0 | % | ||||||||||||||
Footnotes to explain adjustments
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(1)
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Fiscal 2010 amount relates to a change in estimate for gift card forfeitures. This amount was not included in comparable store net sales.
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(2)
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Fiscal 2011 and 2010 amounts reflect charges to write down long-lived assets of the Company.
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(3)
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Fiscal 2011 and 2010 amounts reflect the income tax effect of the pre-tax adjustments noted above.
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(4)
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Due to the adjustment of net sales in Fiscal 2010 the percentages of these items changed as a percentage of the adjusted net sales.
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The Finish Line, Inc.
Reconciliation of GAAP to Non-GAAP Consolidated Statements of Income (Unaudited)
Year Ended February 26, 2011 and February 27, 2010
(In thousands, except per share data)
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||||||||||||||||||||||||||
Fiscal 2011
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Fiscal 2010
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|||||||||||||||||||||||||
GAAP
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Adjustments
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Non-GAAP
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GAAP
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Adjustments
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Non-GAAP
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Net sales (1)
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$ | 1,229,002 | $ | - | $ | 1,229,002 | $ | 1,172,415 | $ | (2,622 | ) | $ | 1,169,793 | |||||||||||||
Cost of sales (including occupancy costs)
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815,073 | - | 815,073 | 793,556 | - | 793,556 | ||||||||||||||||||||
Gross profit
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413,929 | - | 413,929 | 378,859 | (2,622 | ) | 376,237 | |||||||||||||||||||
Selling, general and administrative expenses
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302,718 | - | 302,718 | 297,323 | - | 297,323 | ||||||||||||||||||||
Store closing costs
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350 | - | 350 | 2,707 | - | 2,707 | ||||||||||||||||||||
Impairment charges (2)
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1,228 | (1,228 | ) | - | 6,771 | (6,771 | ) | - | ||||||||||||||||||
Operating income
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109,633 | 1,228 | 110,861 | 72,058 | 4,149 | 76,207 | ||||||||||||||||||||
Interest income, net
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508 | - | 508 | 322 | - | 322 | ||||||||||||||||||||
Income from continuing operations before income taxes
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110,141 | 1,228 | 111,369 | 72,380 | 4,149 | 76,529 | ||||||||||||||||||||
Income tax expense (3)
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41,277 | 463 | 41,740 | 21,547 | 8,150 | 29,697 | ||||||||||||||||||||
Income from continuing operations
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68,864 | 765 | 69,629 | 50,833 | (4,001 | ) | 46,832 | |||||||||||||||||||
Loss from discontinued operations, net of income taxes
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(30 | ) | - | (30 | ) | (15,161 | ) | - | (15,161 | ) | ||||||||||||||||
Net income
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$ | 68,834 | $ | 765 | $ | 69,599 | $ | 35,672 | $ | (4,001 | ) | $ | 31,671 | |||||||||||||
Income (loss) per diluted share:
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||||||||||||||||||||||||||
Income from continuing operations
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$ | 1.26 | $ | 0.02 | $ | 1.28 | $ | 0.92 | $ | (0.07 | ) | $ | 0.85 | |||||||||||||
Loss from discontinued operations
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- | - | - | (0.28 | ) | - | (0.28 | ) | ||||||||||||||||||
Net income
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$ | 1.26 | $ | 0.02 | $ | 1.28 | $ | 0.64 | $ | (0.07 | ) | $ | 0.57 | |||||||||||||
Diluted weighted average shares outstanding
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53,775 | - | 53,775 | 54,597 | - | 54,597 | ||||||||||||||||||||
Fiscal 2011
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Fiscal 2010
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GAAP
|
Adjustments
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Non-GAAP
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GAAP
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Adjustments
|
Non-GAAP
|
|||||||||||||||||||||
Net sales (1)
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100.0 | % | - | % | 100.00 | % | 100.0 | % | - | % | 100.00 | % | ||||||||||||||
Cost of sales (including occupancy costs) (4)
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66.3 | - | 66.3 | 67.7 | 0.1 | 67.8 | ||||||||||||||||||||
Gross profit
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33.7 | - | 33.7 | 32.3 | (0.1 | ) | 32.2 | |||||||||||||||||||
Selling, general and administrative expenses (4)
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24.6 | - | 24.6 | 25.4 | 0.1 | 25.5 | ||||||||||||||||||||
Store closing costs
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- | - | - | 0.2 | - | 0.2 | ||||||||||||||||||||
Impairment charges (2)
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0.1 | (0.1 | ) | - | 0.6 | (0.6 | ) | - | ||||||||||||||||||
Operating income
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9.0 | 0.1 | 9.1 | 6.1 | 0.4 | 6.5 | ||||||||||||||||||||
Interest income, net
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- | - | - | - | - | - | ||||||||||||||||||||
Income from continuing operations before income taxes
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9.0 | 0.1 | 9.1 | 6.1 | 0.4 | 6.5 | ||||||||||||||||||||
Income tax expense (3)
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3.4 | - | 3.4 | 1.8 | 0.8 | 2.6 | ||||||||||||||||||||
Income from continuing operations
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5.6 | 0.1 | 5.7 | 4.3 | (0.4 | ) | 3.9 | |||||||||||||||||||
Loss from discontinued operations, net of income taxes (4)
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- | - | - | (1.3 | ) | 0.1 | (1.2 | ) | ||||||||||||||||||
Net income
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5.6 | % | 0.1 | % | 5.7 | % | 3.0 | % | (0.3 | ) % | 2.7 | % | ||||||||||||||
(1)
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Fiscal 2010 amount relates to a change in estimate for gift card forfeitures. This amount was not included in comparable store net sales.
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(2)
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Fiscal 2011 and 2010 amounts reflect charges to write down long-lived assets of the Company.
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(3)
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Fiscal 2011 and 2010 amounts reflect the income tax effect of the pre-tax adjustments noted above.
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Fiscal 2010 amount also includes the one time tax benefit associated with the terminated merger.
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(4)
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Due to the adjustment of net sales in Fiscal 2010 the percentages of these items changed as a percentage of the adjusted net sales.
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Media Contact:
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Investor Contact:
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Anne Roman
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Ed Wilhelm
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Corporate Communications
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Chief Financial Officer
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317-613-6577
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317-613-6914
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