Golfsmith International Holdings, Inc. reported net revenues declined 13.5% in the first quarter to $68.8 million from $79.2 million a year ago. The decline reflected an 11.7% decrease in comparable store sales and a 24.8% decrease in revenues from its direct channel. The net loss of $5.1 million, or 32 cents a share, in the period, was slightly less than the net loss of $5.4 million, or 34 cents, a year ago.
As of April 4, 2009, the company had $45.2 million of outstanding borrowings under its credit facility, borrowing availability of $16.4 million, and total inventory of $94.1 million. This compares to $65.4 million of outstanding borrowings under its credit facility, $2.2 million of borrowing availability, and $100.5 million of inventory at March 29, 2008. Average store inventory declined 7.8% at April 4, 2009 as compared to March 29, 2008.
Martin Hanaka, Chairman and CEO commented, “While the recession continues to pressure spending in our industry, it is also making us a better organization as we focus on initiatives to increase efficiencies, reduce operating expenses and lower inventory levels, in which all areas we have made very good progress. As a result of these efforts, along with same stores sales that outperformed our plan for the quarter, we were able to generate free cash flow in the quarter and finish the period in an even stronger financial position. We will carry this improved operating platform, our differentiated merchandise assortment, and our Guest-First in-store experience into the future, and remain confident that we will gain market share.”
Golfsmith International Holdings, Inc. | ||||||||
Consolidated Statements of Operations | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
2009 | 2008 | |||||||
(unaudited) | ||||||||
Net revenues | $ | 68,792,904 | $ | 79,235,496 | ||||
Cost of products sold | 46,022,438 | 52,075,606 | ||||||
Gross profit | 22,770,466 | 27,159,890 | ||||||
Selling, general and administrative | 27,817,929 | 32,335,834 | ||||||
Store pre-opening/closing expenses | 348,226 | 28,144 | ||||||
Total operating expenses | 28,166,155 | 32,363,978 | ||||||
Operating loss | (5,395,689 | ) | (5,204,088 | ) | ||||
Interest income (expense), net | (477,140 | ) | (987,699 | ) | ||||
Other income (expense), net | 56,750 | 6,561 | ||||||
Loss before income taxes | (5,816,079 | ) | (6,185,226 | ) | ||||
Income tax benefit | 689,766 | 742,227 | ||||||
Net loss | $ | (5,126,313 | ) | $ | (5,442,999 | ) | ||
Net loss per share: | ||||||||
Basic | $ | (0.32 | ) | $ | (0.34 | ) | ||
Diluted | $ | (0.32 | ) | $ | (0.34 | ) | ||
Weighted average number of shares outstanding: | ||||||||
Basic | 16,032,183 | 15,839,215 | ||||||
Diluted | 16,032,183 | 15,839,215 |