The Finish Line, Inc. announced that net income for the third quarter ended November 26, 2005 was $845,000, a decrease of 62% versus net income of $2.2 million last year's third quarter. Diluted earnings per share were 2 cents, down from 4 cents last year.
Consolidated net sales increased 16% to $274.0 million for Q3 compared to $235.3 million reported for Q3 LY. Comparable store net sales increased 4% for Q3 on top of an increase of 8% reported for Q3 LY.
Alan Cohen, CEO of The Finish Line, stated, “For the quarter, our sales exceeded plan with improved product margins. Our diluted income per share of 2 cents is within the range of 1 cents – 3 cents we announced in our third quarter sales release. During the quarter, we continued to make important investments in our infrastructure as we prepare to accelerate store openings for Man Alive and launch Paiva, our new women's concept, with the first store scheduled to open in April of next year.”
YEAR-TO-DATE RESULTS:
Net income for the thirty-nine weeks ended November 26, 2005 was $32.5 million (65 cents per diluted share) a decrease of 2% versus net income of $33.1 million (67 cents per diluted share) for the thirty-nine weeks last year ended November 27, 2004. Diluted weighted average shares outstanding were 49,605,000 for YTD versus 49,302,000 shares outstanding for YTD LY.
Consolidated net sales increased 13% to $906.8 million YTD compared to $805.4 million for YTD LY. Comparable store net sales increased 1% YTD on top of a 9% increase reported for YTD LY.
Merchandise inventories on a consolidated basis (including Man Alive) were $311.5 million at November 26, 2005. Finish Line store merchandise inventories were $301.6 million compared to $263.7 million at November 27, 2004. On a per square foot basis, Finish Line store merchandise inventories increased 4.6% compared to one year ago and are on plan.
The company operated 658 Finish Line stores at November 26, 2005, an increase of 11% over the 592 stores operated one year ago. For the quarter, Finish Line opened 20 new stores, remodeled 6 existing stores and closed one store with retail square footage increasing 9% to 3,707,000 at November 26, 2005 versus 3,389,000 at November 27, 2004.
The company opened 11 new Man Alive stores during the third quarter and plans for two additional store openings in Q4. As of November 26, 2005, Man Alive operated 49 stores totaling 149,000 square feet.
The Finish Line, Inc.
Consolidated Statements of Income (Unaudited)
(In thousands, except per share and store data)
Thirteen Thirteen Thirty-nine Thirty-nine
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
November 26, November 27, November 26, November 27,
2005 2004 2005 2004
------------ ------------ ------------ ------------
As Restated As Restated
Net sales $273,980 $235,253 $906,820 $805,381
Cost of sales (including
occupancy expenses) 196,432 169,305 627,474 555,987
------------ ------------ ------------ ------------
Gross profit 77,548 65,948 279,346 249,394
Selling, general, and
administrative expenses 76,540 63,058 228,794 197,201
Interest income(net) 345 255 1,406 713
------------ ------------ ------------ ------------
Income before income taxes 1,353 3,145 51,958 52,906
Income taxes 508 927 19,485 19,840
------------ ------------ ------------ ------------
Net income $845 $2,218 $32,473 $33,066
============ ============ ============ ============
Diluted weighted average
shares outstanding 49,058 49,361 49,605 49,302
============ ============ ============ ============
Diluted net income per
share $0.02 $0.04 $0.65 $0.67
============ ============ ============ ============
Dividends declared per
share $0.025 $0.025 $0.075 $0.050
============ ============ ============ ============
Number of stores open
at end of period:
Finish Line 658 592
Man Alive 49 --
