INDIANAPOLIS , Sept. 25 /PRNewswire-FirstCall/ -- The Finish Line, Inc. (the 'Company') (Nasdaq: FINL) announced results for the second quarter ended August 30, 2008 .
(Logo: http://www.newscom.com/cgi-bin/prnh/20020603/FINISHLINELOGO )
SECOND QUARTER RESULTS:
For the thirteen weeks ended August 30, 2008 ('second quarter' or 'Q2'), the Company reported income from continuing operations of $13.2 million , or $.24 per diluted share, compared to income from continuing operations of $6.9 million , or $.14 per diluted share, for the thirteen weeks ended September 1, 2007 ('Q2 LY'). Diluted weighted average shares outstanding were 54,764,000 for Q2, a 16.1% increase versus 47,188,000 shares outstanding for Q2 LY, which reflects the 6.5 million shares issued March 7, 2008 in connection with the previously announced settlement with Genesco Inc.
For the second quarter, consolidated net sales increased 3.9% to $353.3 million compared to net sales of $340.0 million for Q2 LY. Consolidated comparable store net sales increased 4.7% for Q2 compared to the same period a year ago. By concept, Finish Line comparable store net sales increased 4.9% and Man Alive comparable store net sales increased 1.3%.
Merchandise inventories on a consolidated basis were $269.9 million at August 30, 2008 , compared to $303.6 million at September 1, 2007 . On a per square foot basis, consolidated merchandise inventories at August 30, 2008 decreased 10%. Finish Line merchandise inventories decreased 10% and Man Alive inventories decreased 4% compared to one year ago.
YEAR-TO-DATE RESULTS:
For the twenty-six weeks ended August 30, 2008 ('YTD') the Company reported income from continuing operations of $14.1 million , or $.26 per diluted share versus income from continuing operations of $4.3 million , or $.09 per diluted share for the twenty-six weeks ended September 1, 2007 ('YTD LY'). Diluted weighted average shares outstanding were 54,330,000 for YTD versus 47,162,000 shares outstanding for YTD LY.
Net sales increased 2.5% to $641.3 million for YTD compared to $625.7 million for YTD LY. Comparable store net sales increased 3.1% for YTD versus a 4.4% decrease reported for YTD LY.
CONFERENCE CALL:
As previously announced, the Company is hosting a live conference call at
8:30 am (ET) on Friday, September 26th . Interested parties may participate in
the call by calling 1-706-634-5566 (conference leader is
The Company will make available a replay of the live conference call by calling 1-706-645-9291 (Conference ID# 64091009). This replay will be available commencing at approximately 9:45 am (ET) on Friday, September 26th and will remain available through September 29th . In addition, the replay will be available on the web at www.finishline.com .
The Company has experienced, and expects to continue to experience, significant variability in net sales and comparable store net sales from quarter to quarter. Therefore, the results of the periods presented herein are not necessarily indicative of the results to be expected for any other future period or year.
Certain statements contained in this press release regard matters that are not historical facts and are forward looking statements (as such term is defined in the rules promulgated pursuant to the Securities Act of 1933, as amended). Because such forward looking statements contain risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward looking statements. Factors that could cause actual results to differ materially include, but are not limited to: changing consumer preferences; the Company's inability to successfully market its footwear, apparel, accessories and other merchandise; price, product and other competition from other retailers (including internet and direct manufacturer sales); the unavailability of products; the inability to locate and obtain favorable lease terms for the Company's stores; the loss of key employees; fluctuations in oil prices causing changes in gasoline and energy prices, resulting in changes in consumer spending and utility and product costs; the effect of economic conditions including conditions resulting from the current turmoil in the financial services industry and depressed demand in the housing market; management of growth, and the other risks detailed in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to release publicly the results of any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
The Finish Line, Inc. is one of the largest mall-based specialty retailers operating under the Finish Line and Man Alive brand names. The Finish Line, Inc. is publicly traded on the NASDAQ Global Select Market under the symbol FINL. The Company currently operates 697 Finish Line stores in 47 states and online and 94 Man Alive stores in 19 states and online. To learn more about these brands, visit www.finishline.com and www.manalive.com
The Finish Line, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share and store data)
Thirteen Thirteen Twenty-Six Twenty-Six
Weeks Weeks Weeks Weeks
Ended Ended Ended Ended
Sept- Sept-
August 30, ember 1, August 30, ember 1,
2008 2007 2008 2007
----------- --------- ---------- ---------
Net sales $353,312 $339,959 $641,251 $625,710
Cost of sales (including
occupancy costs) 242,600 238,702 447,412 447,360
--------- --------- --------- ---------
Gross profit 110,712 101,257 193,839 178,350
Selling, general and
administrative expenses 89,260 89,296 170,649 170,111
Terminated merger-related costs 45 225 83 225
--------- --------- --------- ---------
Operating income 21,407 11,736 23,107 8,014
Interest income, net 244 237 499 700
--------- --------- --------- ---------
Income from continuing
operations before income taxes 21,651 11,973 23,606 8,714
Income tax expense 8,431 5,068 9,521 4,409
--------- --------- --------- ---------
Income from continuing
operations 13,220 6,905 14,085 4,305
Loss from discontinued
operations, net of income taxes (126) (8,703) (123) (9,974)
--------- --------- --------- ---------
Net income (loss) $13,094 $(1,798) $13,962 $(5,669)
========= ========= ========= =========
Income (loss) per diluted share:
Income from continuing
operations $0.24 $0.14 $0.26 $0.09
Loss from discontinued
operations - (0.18) - (0.21)
--------- --------- --------- ---------
Net income (loss) $0.24 $(0.04) $0.26 $(0.12)
========= ========= ========= =========
Diluted weighted average shares
outstanding 54,764 47,188 54,330 47,162
========= ========= ========= =========
Dividends declared per share $0.030 $- $0.030 $0.025
========= ========= ========= =========
Number of stores open at end of
period:
Finish Line 697 697
Man Alive 94 95
Paiva (discontinued in Fall 2007) - 15
--------- ---------
Total 791 807
========= =========
Condensed Consolidated Balance Sheet
August 30, September 1, March 1,
2008 2007 2008
--------- --------- --------
(Unaudited)(Unaudited)
ASSETS
------------------------------------
Cash and cash equivalents $65,035 $34,182 $72,901
Merchandise inventories, net 269,881 303,631 268,333
Other current assets 47,494 30,124 40,573
Property and equipment, net 206,719 234,104 217,834
Other assets 43,681 33,763 43,406
-------- -------- --------
Total assets $632,810 $635,804 $643,047
======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current liabilities $125,732 $116,486 $99,931
Terminated merger-related
liabilities 218 - 47,129
Deferred credits from landlords 56,354 64,071 59,642
Other long-term liabilities 14,957 9,229 15,479
Shareholders' equity 435,549 446,018 420,866
-------- -------- --------
Total liabilities and
shareholders' equity $632,810 $635,804 $643,047
======== ======== ========
Investor Relations: Media Requests:
Kevin S. Wampler, Elise Hasbrook,
(317) 899-1022 ext. 6914 (317) 899-1022 ext. 6827
Executive Vice President - Chief Corporate Communications
Financial Officer Manager
SOURCE The Finish Line, Inc.
