For the thirteen weeks ended
-
Consolidated net sales were
$483.2 million , an increase of 3.5% over the prior year period. -
Finish Line comparable store sales increased 1.5%. -
Diluted earnings per share increased to
$0.57 from$0.54 in the prior year.
“We are pleased with the bottom line performance we achieved on modest
sales growth,” said
Balance Sheet
As of
The company repurchased approximately 167,000 shares of common stock in
the second quarter, totaling
As of
Outlook
For the fiscal year ending
Q2 Fiscal 2016 Conference Call Today,
The company will host a conference call for investors today,
Disclosure Regarding Non-GAAP Measures
This report refers to certain financial measures that are identified as
non-GAAP. The company believes that these non-GAAP measures including
operating income, net income attributable to The
About The
The
Forward-Looking Statements
This news release includes statements that are or may be considered "forward-looking" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally can be identified by the use of words or phrases such as "believe," "expect," "future," "anticipate," "intend," "plan," "foresee," "may," "should," "will," "estimates," "outlook," "potential," "optimistic," "confidence," "continue," "evolve," "expand," "growth" or words and phrases of similar meaning. Statements that describe objectives, plans or goals also are forward-looking statements.
All of these forward-looking statements are subject to risks, management
assumptions and uncertainties that could cause actual results to differ
materially from those contemplated by the relevant forward-looking
statements. The principal risk factors that could cause actual
performance and future actions to differ materially from the
forward-looking statements include, but are not limited to, the
company's reliance on a few key vendors for a majority of its
merchandise purchases (including a significant portion from one key
vendor); the availability and timely receipt of products; the ability to
timely fulfill and ship products to customers; fluctuations in oil
prices causing changes in gasoline and energy prices, resulting in
changes in consumer spending as well as increases in utility, freight
and product costs; product demand and market acceptance risks;
deterioration of macro-economic and business conditions; the inability
to locate and obtain or retain acceptable lease terms for the company's
stores; the effect of competitive products and pricing; loss of key
employees; execution of strategic growth initiatives (including actual
and potential mergers and acquisitions and other components of the
company's capital allocation strategy); cybersecurity risks, including
breach of customer data; a major failure of technology and information
systems and the other risks detailed in the company's
The Finish Line, Inc. | ||||||||||||||||||||
Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||
(In thousands, except per share and store/shop data) |
||||||||||||||||||||
Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||||||
August 29, | August 30, | August 29, | August 30, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||
Net sales | $ | 483,150 | $ | 466,880 | $ | 926,544 | $ | 873,411 | ||||||||||||
Cost of sales (including occupancy costs) | 323,943 | 311,760 | 628,361 | 589,411 | ||||||||||||||||
Gross profit | 159,207 | 155,120 | 298,183 | 284,000 | ||||||||||||||||
Selling, general and administrative expenses | 117,604 | 111,882 | 234,061 | 220,778 | ||||||||||||||||
Impairment charges and store closing costs | 160 | 379 | 328 | 2,693 | ||||||||||||||||
Operating income | 41,443 | 42,859 | 63,794 | 60,529 | ||||||||||||||||
Interest income (expense), net | 1 | (1 | ) | (1 | ) | 6 | ||||||||||||||
Income before income taxes | 41,444 | 42,858 | 63,793 | 60,535 | ||||||||||||||||
Income tax expense | 15,583 | 16,699 | 24,198 | 23,721 | ||||||||||||||||
Net income | 25,861 | 26,159 | 39,595 | 36,814 | ||||||||||||||||
Net loss (income) attributable to redeemable noncontrolling interest | 41 | (2 | ) | 96 | 1,778 | |||||||||||||||
Net income attributable to The Finish Line, Inc. | $ | 25,902 | $ | 26,157 | $ | 39,691 | $ | 38,592 | ||||||||||||
Diluted earnings per share attributable to The Finish Line, Inc. shareholders | $ | 0.57 | $ | 0.54 | $ | 0.86 | $ | 0.79 | ||||||||||||
Diluted weighted average shares | 45,207 | 48,202 | 45,463 | 48,281 | ||||||||||||||||
Dividends declared per share | $ | 0.09 | $ | 0.08 | $ | 0.18 | $ | 0.16 | ||||||||||||
Finish Line store activity for the period: | ||||||||||||||||||||
Beginning of period | 624 | 645 | 637 | 645 | ||||||||||||||||
Opened | 3 | 4 | 5 | 7 | ||||||||||||||||
Closed | (7 | ) | (2 | ) | (22 | ) | (5 | ) | ||||||||||||
End of period | 620 | 647 | 620 | 647 | ||||||||||||||||
Square feet at end of period | 3,395,611 | 3,523,755 | ||||||||||||||||||
Average square feet per store | 5,477 | 5,446 | ||||||||||||||||||
Branded shops within department stores activity for the period: | ||||||||||||||||||||
Beginning of period | 395 | 262 | 395 | 185 | ||||||||||||||||
Opened | — | 109 | — | 186 | ||||||||||||||||
Closed | (1 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||||||
End of period | 394 | 370 | 394 | 370 | ||||||||||||||||
Square feet at end of period | 448,861 | 372,672 | ||||||||||||||||||
Average square feet per shop | 1,139 | 1,007 | ||||||||||||||||||
Running Specialty store activity for the period: | ||||||||||||||||||||
Beginning of period | 76 | 58 | 71 | 48 | ||||||||||||||||
Acquired | — | — | 4 | 8 | ||||||||||||||||
Opened | — | — | 1 | 2 | ||||||||||||||||
Closed | — | — | — | — | ||||||||||||||||
End of period | 76 | 58 | 76 | 58 | ||||||||||||||||
Square feet at end of period | 275,571 | 199,905 | ||||||||||||||||||
Average square feet per store | 3,626 | 3,447 | ||||||||||||||||||
Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
August 29, | August 30, | August 29, | August 30, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Cost of sales (including occupancy costs) | 67.0 | 66.8 | 67.8 | 67.5 | ||||||||||||
Gross profit | 33.0 | 33.2 | 32.2 | 32.5 | ||||||||||||
Selling, general and administrative expenses | 24.4 | 24.0 | 25.3 | 25.3 | ||||||||||||
Impairment charges and store closing costs | — | — | — | 0.3 | ||||||||||||
Operating income | 8.6 | 9.2 | 6.9 | 6.9 | ||||||||||||
Interest income (expense), net | — | — | — | — | ||||||||||||
Income before income taxes | 8.6 | 9.2 | 6.9 | 6.9 | ||||||||||||
Income tax expense | 3.2 | 3.6 | 2.6 | 2.7 | ||||||||||||
Net income | 5.4 | 5.6 | 4.3 | 4.2 | ||||||||||||
Net loss (income) attributable to redeemable noncontrolling interest | — | — | — | 0.2 | ||||||||||||
Net income attributable to The Finish Line, Inc. | 5.4 | % | 5.6 | % | 4.3 | % | 4.4 | % | ||||||||
Condensed Consolidated Balance Sheets | ||||||||||||||
August 29, | August 30, | February 28, | ||||||||||||
2015 | 2014 | 2015 | ||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | $ | 100,234 | $ | 190,583 | $ | 149,569 | ||||||||
Merchandise inventories, net | 366,335 | 329,924 | 343,403 | |||||||||||
Other current assets | 44,263 | 27,104 | 37,685 | |||||||||||
Property and equipment, net | 278,405 | 246,674 | 274,360 | |||||||||||
Goodwill | 44,507 | 29,458 | 34,719 | |||||||||||
Other assets, net | 9,101 | 9,013 | 10,119 | |||||||||||
Total assets | $ | 842,845 | $ | 832,756 | $ | 849,855 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Current liabilities | $ | 188,383 | $ | 186,282 | $ | 197,497 | ||||||||
Deferred credits from landlords | 31,503 | 29,856 | 29,143 | |||||||||||
Other long-term liabilities | 32,280 | 21,273 | 33,481 | |||||||||||
Redeemable noncontrolling interest, net | — | 563 | 90 | |||||||||||
Shareholders’ equity | 590,679 | 594,782 | 589,644 | |||||||||||
Total liabilities and shareholders’ equity | $ | 842,845 | $ | 832,756 | $ | 849,855 | ||||||||
Reconciliation of Operating Income, GAAP to Operating Income, Non-GAAP (Unaudited) | ||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||
Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||||||||||||||||||||||
August 29, 2015 | August 30, 2014 | August 29, 2015 | August 30, 2014 | |||||||||||||||||||||||||||||||||
Operating income, GAAP | $ | 41,443 | 8.6 | % | $ | 42,859 | 9.2 | % | $ | 63,794 | 6.9 | % | $ | 60,529 | 6.9 | % | ||||||||||||||||||||
Impairment charges and store closing costs | 160 | — | 379 | — | 328 | — | 2,693 | 0.3 | ||||||||||||||||||||||||||||
Operating income, Non-GAAP | $ | 41,603 | 8.6 | % | $ | 43,238 | 9.2 | % | $ | 64,122 | 6.9 | % | $ | 63,222 | 7.2 | % | ||||||||||||||||||||
Reconciliation of Net Income Attributable to The Finish Line, Inc., GAAP to | ||||||||||||||||||||||||||||||||||||
Net Income Attributable to The Finish Line, Inc., Non-GAAP (Unaudited) | ||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||
Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||||||||||||||||||||||
August 29, 2015 | August 30, 2014 | August 29, 2015 | August 30, 2014 | |||||||||||||||||||||||||||||||||
Net income attributable to The Finish Line, Inc., GAAP | $ | 25,902 | 5.4 | % | $ | 26,157 | 5.6 | % | $ | 39,691 | 4.3 | % | $ | 38,592 | 4.4 | % | ||||||||||||||||||||
Impairment charges and store closing costs, net of income taxes and redeemable noncontrolling interest | 98 | — | 233 | — | 202 | — | 1,600 | 0.2 | ||||||||||||||||||||||||||||
Net income attributable to The Finish Line, Inc., Non-GAAP | $ | 26,000 | 5.4 | % | $ | 26,390 | 5.6 | % | $ | 39,893 | 4.3 | % | $ | 40,192 | 4.6 | % | ||||||||||||||||||||
Reconciliation of Diluted Earnings Per Share Attributable to The Finish Line, Inc. Shareholders, GAAP to | |||||||||||||||||||
Diluted Earnings Per Share Attributable to The Finish Line, Inc. Shareholders, Non-GAAP (Unaudited) | |||||||||||||||||||
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||
August 29, | August 30, | August 29, | August 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Diluted earnings per share attributable to The Finish Line, Inc. shareholders, GAAP | $ | 0.57 | $ | 0.54 | $ | 0.86 | $ | 0.79 | |||||||||||
Impairment charges and store closing costs, net of income taxes and redeemable noncontrolling interest | — | — | 0.01 | 0.03 | |||||||||||||||
Diluted earnings per share attributable to The Finish Line, Inc. shareholders, Non-GAAP | $ | 0.57 | $ | 0.54 | $ | 0.87 | $ | 0.82 | |||||||||||
Note: See Disclosure Regarding Non-GAAP Measures above.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150925005240/en/
Source: The
The Finish Line, Inc.
Media:
Dianna Boyce, 317-613-6577
Corporate
Communications
or
Investors:
Ed Wilhelm,
317-613-6914
Chief Financial Officer