Golfsmith International Holdings, Inc. reported net revenues reached $63.8 million in the fourth quarter ended Jan. 2, 2010, down 5.9% from $67.8 million in the fourth quarter of 2008.
Comparable store sales increased 0.9% while sales from the company’s direct-to-consumer-channel declined 21.3%. Total net revenues represent 13 weeks in 2009 as compared to 14 weeks in 2008. Comparable store sales are calculated on a 13-week basis for both quarters presented.
Operating loss totaled $6.4 million for the fourth quarter of fiscal 2009 compared to a loss of $6.6 million for the year earlier period. Net loss totaled $6.3 million or $0.39 per share, down slightly from $6.5 million or $0.40 per share for the fourth quarter of fiscal 2008.
Golfsmith ended the quarter with $36.0 million of outstanding borrowings under its credit facility and borrowing availability of $16.1 million. This compares to $51.7 million of outstanding borrowings under its credit facility and borrowing availability of $5.9 million at Jan. 3, 2009.
“While the economic environment remains challenging and uncertain, we are encouraged that sales trends have stabilized,” said Martin Hanaka, chairman and chief executive officer. “Going forward, we will continue to maintain inventory discipline and cost controls while at the same time employing our previously stated initiatives to drive improved sales and earnings. Specifically, we plan to focus on improving the retail business with an increased emphasis on the Company’s selling culture and we plan to open four new stores in selective strategic locations in fiscal 2010. Also, we continue to be focused on ways to institute gross margin enhancements; refine the direct-to-consumer business; and execute operational excellence. We also anticipate continuing to generate positive free cash flow.”
| Golfsmith International Holdings, Inc. | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| January 2, | January 3, | January 2, | January 3, | |||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (audited) | ||||||||||||||||
| Net revenues | $ | 63,849,644 | $ | 67,840,305 | $ | 338,025,688 | $ | 378,772,097 | ||||||||
| Cost of products sold | 42,184,747 | 46,979,673 | 222,536,657 | 251,134,234 | ||||||||||||
| Gross profit | 21,664,897 | 20,860,632 | 115,489,031 | 127,637,863 | ||||||||||||
| Selling, general and administrative | 27,975,226 | 26,995,142 | 117,183,115 | 124,774,549 | ||||||||||||
| Store pre-opening/closing expenses | 82,898 | 176,515 | 426,553 | 254,934 | ||||||||||||
| Impairment of long-lived assets | – | 284,229 | – | 284,229 | ||||||||||||
| Total operating expenses | 28,058,124 | 27,455,886 | 117,609,668 | 125,313,712 | ||||||||||||
| Operating income (loss) | (6,393,227 | ) | (6,595,254 | ) | (2,120,637 | ) | 2,324,151 | |||||||||
| Interest income (expense), net | (244,422 | ) | (674,334 | ) | (1,304,625 | ) | (2,875,748 | ) | ||||||||
| Other income (expense), net | 13,306 | 160,996 | 63,497 | 157,376 | ||||||||||||
| Loss before income taxes | (6,624,343 | ) | (7,108,592 | ) | (3,361,765 | ) | (394,221 | ) | ||||||||
| – | – | |||||||||||||||
| Income tax expense (benefit) | 324,706 | 621,475 | (182,850 | ) | (121,390 | ) | ||||||||||
| Net loss | $ | (6,299,637 | ) | $ | (6,487,117 | ) | $ | (3,544,615 | ) | $ | (515,611 | ) | ||||
| Net loss per common share: | ||||||||||||||||
| Basic | $ | (0.39 | ) | $ | (0.40 | ) | $ | (0.22 | ) | $ | (0.03 | ) | ||||
| Diluted | ||||||||||||||||
