EX-99.1 3 d08617exv99w1.txt PRESS RELEASE EXHIBIT 99.1 NEWS RELEASE FOR IMMEDIATE RELEASE CONTACT: Jim Motley Vice President and Chief Financial Officer 972-307-5555 GADZOOKS REPORTS SECOND QUARTER OPERATING RESULTS DALLAS, August 19, 2003--Gadzooks, Inc. (NASDAQ: GADZ - news) today reported a net loss of $7.9 million for the second quarter ended August 2, 2003 as the Company continues its transition to a juniors-only store. The Company recorded net income of $115,000 for the second quarter of fiscal 2002. On a diluted basis, the Company reported a net loss per share of $0.86 for the quarter compared to net income of $0.01 per share for the corresponding period a year ago. Net sales for the quarter decreased 10.7 percent to $68.5 million from $76.7 million a year ago. Same store sales for the quarter declined 9.9 percent compared to a 3.3 percent decrease for the second quarter of last year. The Company reported a year-to-date net loss of $12.0 million compared to net income of $1.9 million for the first half of fiscal 2002. On a diluted basis for the year-to-date period, the Company reported a net loss per share of $1.31 compared to net income of $0.20 per share for the same period last year. Year-to-date net sales decreased 10.2 percent to $139.2 million from $155.0 million for the comparable fiscal 2002 period. Same store sales decreased 10.3 percent for the first half of fiscal 2003 versus a 2.8 percent decline for the first half of the prior year. Today at 9:30 a.m. CDT, the Company's management team will host a conference call to review the financial results. To listen to the call, please dial 913-981-5507 and reference confirmation number 489449, or go to the Company's website at www.gadzooks.com. For a replay of the call, dial 719-457-0820 and enter confirmation code 489449, or visit the Company's website. Dallas-based Gadzooks is a specialty retailer of casual clothing, accessories, shoes, fragrances and cosmetics for 16-22 year-old females. Gadzooks currently operates 423 Gadzooks stores and four Orchid stores, for a total of 427 stores in 41 states. Gadzooks owns and operates www.gadzooks.com, an interactive site for girls to visit on the web. Page 2 - Gadzooks Second Quarter 2003 Earnings GADZOOKS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA - UNAUDITED)
SECOND QUARTER ENDED SIX MONTHS ENDED ------------------------- ------------------------- AUGUST 2, AUGUST 3, AUGUST 2, AUGUST 3, 2003 2002 2003 2002 --------- --------- --------- --------- Net sales $ 68,474 $ 76,697 $ 139,215 $ 154,972 Cost of goods sold including buying, distribution and occupancy costs 58,814 57,369 116,281 114,037 --------- --------- --------- --------- Gross profit 9,660 19,328 22,934 40,935 Selling, general and administrative expenses 22,409 19,162 42,437 37,948 --------- --------- --------- --------- Operating income (loss) (12,749) 166 (19,503) 2,987 Interest income (expense), net (35) 21 65 (17) --------- --------- --------- --------- Income (loss) before income taxes (12,784) 187 (19,520) 3,052 Provision (benefit) for income taxes (4,922) 72 (7,515) 1,180 --------- --------- --------- --------- Net income (loss) $ (7,862) $ 115 $ (12,005) $ 1,872 ========= ========= ========= ========= Net income (loss) per share Basic $ (0.86) $ 0.01 $ (1.31) $ 0.21 ========= ========= ========= ========= Diluted $ (0.86) $ 0.01 $ (1.31) $ 0.20 ========= ========= ========= ========= Average shares outstanding Basic 9,127 9,135 9,137 9,115 ========= ========= ========= ========= Diluted 9,127 9,274 9,137 9,312 ========= ========= ========= =========
BALANCE SHEET HIGHLIGHTS
AUGUST 2, AUGUST 3, 2003 2002 --------- --------- Cash and investments $ 4,997 $11,745 Inventory 46,147 59,658 Accounts payable 21,016 20,235 Line of credit -- --