The Finish Line, Inc. saw net income for the fourteen-week fourth quarter, which ended March 3, 2007, total $21.1 million, or 44 cents per diluted share, down from $28.1 million, or 58 cents per diluted share for the thirteen-week quarter last year. Included in Q4 is a pre-tax charge of $7.5 million, or 10 cents per diluted share for the asset impairment of 19 underperforming stores. Additionally, the company estimates that the Q4 results benefited from the additional week by 8 cents per diluted share. Diluted weighted average shares outstanding were 47,557,000 for Q4 versus 48,704,000 shares outstanding for Q4 LY.
Consolidated net sales increased 7.5% to $429.0 million for Q4 compared to $399.2 million reported for Q4 LY. Excluding the fourteenth week this year (approximately $24.2 million of sales), sales increased 1.4% from the same thirteen-week period last year. Comparable store net sales decreased 5.4% for Q4 as compared to the 0.4% comparable store sales gain reported for Q4 LY.
FULL YEAR RESULTS:
Net income for the fifty-three week year ended March 3, 2007 was $32.4 million, or 68 cents per diluted share, as compared to net income of $60.5 million, or $1.23 per diluted share, for the fifty-two week year ended February 25, 2006. Diluted weighted average shares outstanding were 47,801,000 for Fiscal 2007 versus 49,381,000 shares outstanding for Fiscal 2006.
Consolidated net sales increased 2.5% to $1.34 billion for Fiscal 2007 compared to $1.31 billion for Fiscal 2006. Excluding the fifty-third week in Fiscal 2007, consolidated net sales increased 0.6% from the same fifty-two week period in Fiscal 2006. Comparable store net sales decreased 5.7% for Fiscal 2007 as compared to the 0.7% increase reported for Fiscal 2006.
Total merchandise inventories on a consolidated basis were $287.3 million at March 3, 2007 compared to $268.6 million at February 25, 2006. On a per square foot basis, Finish Line store merchandise inventories were flat compared to one year ago.
Mr. Alan H. Cohen, Chairman and CEO, stated, “During Fiscal 2007, we worked diligently to balance our product assortment in response to consumer demand for both performance and sport style products. We believe that Finish Line is taking the necessary steps to position the Company for improved performance in fiscal 2008. While we expect the short-term environment for specialty athletic retailing to be challenging we remain confident in the long-term growth of the business.”
The Finish Line, Inc.
Consolidated Statements of Income
(In thousands, except per share and store data)
Fourteen Thirteen Fifty-three Fifty-two
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
March 3, February 25, March 3, February 25,
2007 2006 2007 2006
----------- ------------ ----------- ------------
(Unaudited) (Unaudited) (Unaudited)
Net sales $429,019 $399,225 $1,338,207 $1,306,045
Cost of sales
(including
occupancy costs) 293,759 267,250 937,337 894,724
----------- ------------ ----------- ------------
Gross profit 135,260 131,975 400,870 411,321
Selling, general, and
administrative
expenses 93,906 85,099 342,160 313,893
Asset impairment
charge 7,531 2,523 7,531 2,523
----------- ------------ ----------- ------------
Operating income 33,823 44,353 51,179 94,905
Interest income - net 157 602 1,021 2,008
----------- ------------ ----------- ------------
Income before income
taxes 33,980 44,955 52,200 96,913
Income taxes 12,913 16,895 19,836 36,380
----------- ------------ ----------- ------------
Net income $21,067 $28,060 $32,364 $60,533
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Diluted weighted
average shares
outstanding 47,557 48,704 47,801 49,381
=========== ============ =========== ============
Diluted earnings per
share $0.44 $0.58 $0.68 $1.23
=========== ============ =========== ============
Dividends declared
per share $0.025 $0.025 $0.100 $0.100
=========== ============ =========== ============
Number of stores open
at end of period:
Finish Line 690 657
Man Alive 86 51
Paiva 13 -
=========== ============
Total 789 708
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