The Finish Line, Inc. reported net income for the first quarter of $4.4 million or 9 cents per diluted share, down 65.4% from $12.7 million or 26 cents per diluted share reported for the same period last year. Diluted weighted average shares outstanding were 48,625,000 for Q1 versus 49,903,000 shares outstanding for Q1 LY.
Consolidated net sales decreased 1% to $289.0 million for Q1 compared to $291.3 million last year. Comparable store net sales decreased 7.2% after an increase of 1.7% for the same period last year.
Merchandise inventories on a consolidated basis were $298.4 million at May 27, 2006 compared to $259.8 million at May 28, 2005. On a per square foot basis, Finish Line store merchandise inventories increased approximately 6% compared to one year ago.
Mr. Cohen stated, “Our net income per diluted share of $.09 is within the revised range of $.08 – $.10 we announced in our May 18th release. Our ending inventory for the quarter was slightly higher than plan and we are taking necessary actions to get back to more appropriate levels by the end of the third quarter. Our balance sheet remains strong with over $60 million in cash and marketable securities and no interest bearing debt.”
The company operated 669 Finish Line stores at May 27, 2006, an increase of 7% over the 625 stores operated one year ago. For the quarter, Finish Line opened 14 new stores, remodeled 5 existing stores and closed 2 stores with retail square footage increasing 6% to 3,759,000 at May 27, 2006 versus 3,547,000 at May 28, 2005.
The company opened 14 Man Alive stores during the quarter and as of May 27, 2006, Man Alive operated 65 stores totaling 206,000 square feet compared to 38 stores totaling 107,000 square feet as of May 28, 2005. The company also opened four Paiva stores during Q1 totaling 15,000 square feet.
The Finish Line, Inc.
Consolidated Statements of Income (Unaudited)
(In thousands, except per share and store data)
Thirteen Weeks Ended
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May 27, May 28,
2006 2005
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Net sales $289,046 $291,267
Cost of sales (including
occupancy expenses) 203,129 200,593
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Gross profit 85,917 90,674
Selling, general, and
administrative expenses 79,626 70,826
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Operating income 6,291 19,848
Interest income - net 735 549
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Income before income taxes 7,026 20,397
Income taxes 2,670 7,649
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Net income $4,356 $12,748
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Diluted weighted average
shares outstanding 48,625 49,903
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Diluted net income per share $0.09 $0.26
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Dividends declared per share $0.025 $0.025
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Number of stores open at end
of period : Finish Line 669 625
Man Alive 65 38
Paiva 4 --
