The Finish Line, Inc. recorded a net loss from continuing operations of $13.8 million, or 29 cents per diluted share for the third quarter ended December 1, 2007. The quarterly loss widened from a net loss from continuing operations of $1.8 million, or 4 cents per diluted share for the same period last year. For Q3, the non-GAAP loss from continuing operations per diluted share was 17 cents, which does not include approximately 12 cents per diluted share for expenses incurred in connection with the pending merger with Genesco Inc. and the related litigation.
Merchandise inventories on a consolidated basis declined to $338.7 million at December 1, 2007 compared to $356.9 million at November 25, 2006. As of December 1, 2007, on a per square foot basis, consolidated inventories decreased 5%, and Finish Line store merchandise inventories decreased 3% compared to one year ago.
Alan H. Cohen, chairman and CEO, stated, “We are implementing both operating and product initiatives to drive improvements in our business. Our customers are responding well to the new brands that we've recently introduced. Going forward, we see growth opportunities in both performance and sport style product and will continue to emphasize premium offerings as part of our efforts to differentiate Finish Line and create enthusiasm with our customers.”
YEAR-TO-DATE RESULTS:
For the thirty-nine weeks ended December 1, 2007, the company reported a loss from continuing operations of $9.5 million, or 20 cents per diluted share versus income from continuing operations of $14.5 million, or 30 cents per diluted share for the thirty-nine weeks ended November 25, 2006. For YTD, the non-GAAP loss from continuing operations per diluted share was 7 cents. The non-GAAP loss from continuing operations excludes 13 cents per diluted share for expenses incurred in connection with the pending merger with Genesco Inc. and the related litigation.
The Finish Line, Inc.
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share and store data)Thirty- Thirty-
Thirteen Thirteen nine nine
Weeks Weeks Weeks Weeks
Ended Ended Ended Ended
Dec. 1, Nov. 25, Dec. 1, Nov. 25,
2007 2006 2007 2006
——— ——— ——— ———Net sales $268,699 $280,025 $894,409 $906,242
Cost of sales (including
occupancy expenses) 198,803 201,895 646,163 640,172
——— ——— ——— ———
Gross profit 69,896 78,130 248,246 266,070Selling, general, and
administrative expenses 83,261 80,917 253,372 243,524
Merger related costs 9,658 – 9,883 –
——— ——— ——— ———
Operating (loss) income (23,023) (2,787) (15,009) 22,546Interest income (expense), net 223 (21) 923 864
——— ——— ——— ———
(Loss) income from continuing
operations before income taxes (22,800) (2,808) (14,086) 23,410
Income tax (benefit) expense (9,035) (1,047) (4,626) 8,951
——— ——— ——— ———
(Loss) income from continuing
operations (13,765) (1,761) (9,460) 14,459
Loss from discontinued
operations, net of income
tax benefit (2,189) (1,219) (12,163) (3,162)
——— ——— ——— ———
Net (loss) income $(15,954) $(2,980) $(21,623) $11,297
——— ——— ——— ———Diluted (loss) income per share:
(Loss) income from continuing
operations $(0.29) $(0.04) $(0.20) $0.30
Loss from discontinued
operations (0.05) (0.02) (0.26) (0.06)
——— ——— ——— ———
Net (loss) income $(0.34) $(0.06) $(0.46) $0.24
——— ——— ——— ———Diluted weighted average shares
outstanding 47,211 46,909 47,178 47,882
========= ========= ========= =========
Dividends declared per share $- $0.025 $0.025 $0.075
========= ========= ========= =========Number of stores open at end of
period:
Finish Line 701 692
Man Alive 96 88
Paiva – 12
——– ——–
Total 797 792
======== ========
