The Finish Line, Inc. reported sales increased 6.0 percent in its first quarter ended May 28, to $299.5 million compared to $282.4 million a year ago. Comparable store sales increased 6.5 percent in the first quarter on top of an increase of 10.9 percent for the same period a year ago. Earnings from continuing operations climbed 19.7 percent to $16.4 million, or 30 cents per share, compared to income from continuing operations of $13.7 million, or 25 cents, a year ago.
Merchandise inventories increased 4.4 percent to $206.5 million at the end of the quarter compared to $197.8 million a year ago. On a per-square-foot basis, inventories were up 5.8 percent.
At quarter-end, the company had no interest-bearing debt and $287.0 million in cash and cash equivalents, up from $248.1 million at the end of the first quarter a year ago. The company repurchased 0.4 million shares of its outstanding common stock in the first quarter, totaling $9.6 million.
“Delivering growth on top of a strong performance a year ago was the story of the first quarter,” said Finish Line Chairman and Chief Executive Officer Glenn Lyon. “This is the seventh consecutive quarter that we delivered an increase in comp store sales and non-GAAP EPS. In the first quarter, we achieved 20% EPS growth on top of the strong earnings we drove a year ago. Our comp store sales increase of 6.5% in Q1 is on top of a 10.9% increase last year and we improved across virtually all other key metrics. Through consistent execution of our strategic plan, we have created a business model that has allowed Finish Line to drive sustained growth through a variety of consumer environments and external conditions. This is a great start to the new fiscal year and we are optimistic about our future and the initiatives we are undertaking to grow our existing business, expand beyond our core business and deliver returns to our shareholders.”
June Sales Update
Comparable store sales on a month-to-date basis for the period of May 29, 2011 through June 19, 2011 increased 14.5% on top of a 6.8% increase for the same period a year ago.
The Finish Line, Inc. |
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Consolidated Statements of Income (Unaudited) |
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(In thousands, except per share and store data) |
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Thirteen Weeks Ended |
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May 28, |
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May 29, |
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2011 |
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2010 |
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Net sales |
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$ |
299,474 |
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$ |
282,398 |
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Cost of sales (including occupancy costs) |
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196,211 |
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188,428 |
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Gross profit |
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103,263 |
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93,970 |
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Selling, general and administrative expenses |
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76,692 |
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71,779 |
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Operating income |
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26,571 |
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22,191 |
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Interest income, net |
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142 |
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64 |
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Income from continuing operations before income taxes |
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26,713 |
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22,255 |
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Income tax expense |
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10,297 |
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8,586 |
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Income from continuing operations |
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16,416 |
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13,669 |
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Loss from discontinued operations, net of income taxes |
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– |
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(23 |
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Net income |
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$ |
16,416 |
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$ |
13,646 |
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Income per diluted share: |
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Income from continuing operations |
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$ |
0.30 |
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$ |
0.25 |
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Loss from discontinued operations |
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– |
– |
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Net income |
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$ |
0.30 |
$ |
0.25 |
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Diluted weighted average shares outstanding |
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53,973 |
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54,297 |
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Dividends declared per share |
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$ |
0.05 |
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$ |
0.04 |
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Store activity for the period: |
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Beginning of period |
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664 |
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666 |
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Opened |
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– |
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4 |
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Closed |
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(7 |
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(3 |
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End of period |
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657 |
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667 |
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Square feet at end of period |
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