The Finish Line reported net sales for the third quarter ended November 29, 2003 increased 37% to $202.0 million for the thirteen weeks ended November 29, 2003 compared to $147.9 million reported for the thirteen year-ago period. Comparable store net sales increased 25% for the quarter.
On a GAAP basis, net income for Q3 was $2.2 million or $.09 per diluted share versus a loss of $(.13) per diluted share in Q3 LY, an increase of 169%.
In the third quarter the Company realized a benefit from a gain on a tornado insurance settlement of $.03 per diluted share. Excluding the gain on insurance settlement, non-GAAP adjusted diluted earnings per share on a comparable basis to which previous guidance has been provided by the Company would have been $.06 per diluted share in Q3 versus a $(.13) loss in Q3 LY, or an increase of 146%.
Net sales increased 30% to $680.6 million for the thirty-
nine weeks ended November 29, 2003 compared to $522.7 million for the thirty-nine weeks last year ended November 30, 2002. Comparable store net sales increased 20% for YTD.
On a GAAP basis, net income for YTD was $26.2 million or $1.09 per diluted share versus $.39 per diluted share for YTD LY. Included in YTD is the benefit from the gain on the insurance settlement of $.03 per diluted share.
The Company reported net income for YTD LY of $9.6 million or $.39 per diluted share that included a benefit from repositioning reversals of $.03 per diluted
share. Excluding these items noted above, YTD non-GAAP adjusted net income
per diluted share on a comparable basis to which previous guidance has been
provided by the Company would have been $1.06 versus $.36 for YTD LY, or an
increase of 194%. Diluted weighted average shares outstanding were 24,009,000
for the thirty-nine weeks ended November 29, 2003, versus 24,514,000 shares
outstanding for YTD LY.
Mr. Cohen stated, “We are pleased to report a 169% increase in earnings
per share for the third quarter of Fiscal 2004. The 25% gain in Q3 comparable
store sales drove significant improvement in our financial performance as
gross profit margin improved 270 basis points from Q3 LY, while SG&A leverage
also improved 190 basis points.
“As for sales for the holiday season, we continue to show strength in both
footwear and softgoods with comparable store sales increasing 21% for the five week holiday period ending January 3, 2004.”
Merchandise inventories were $230.0 million at November 29, 2003 compared
to $180.9 million at November 30, 2002. As a result of planned early holiday
receipts, merchandise inventories at the end of Q3 increased approximately 18% on a per square foot basis compared to one year ago.
The Company operated 532 stores at November 29, 2003, an increase of 11% over the 481 stores operated one year ago. Year-to-date, the
Company has opened 58 new stores, remodeled 25 existing stores and closed 3
stores. Total retail square footage increased 8% to 3,085,000
at November 29, 2003 versus 2,858,000 square feet at the end of Q3 LY.
The Finish Line, Inc.
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share and store data)Thirty- Thirty-
Thirteen Thirteen nine nine
Weeks Weeks Weeks Weeks
Ended Ended Ended Ended
November November November November
29, 2003 30, 2002 29, 2003 30, 2002
--------- --------- --------- ---------Net sales $202,035 $147,877 $680,619 $522,733
Cost of sales (including
occupancy expenses) 147,976 112,271 479,449 377,903
--------- --------- --------- ---------
Gross profit 54,059 35,606 201,180 144,830Selling, general, and
administrative expenses 51,960 40,752 160,588 131,356
Repositioning charge reversal -- -- -- (1,126)
Insurance income - tornado (1,228) -- (1,228) --
Interest income (net) 143 137 473 674
--------- --------- --------- ---------
Income (loss) before income taxes 3,470 (5,009) 42,293 15,274
Income taxes (benefit) 1,319 (1,853) 16,072 5,652
--------- --------- --------- ---------
Net income (loss) $2,151 ($3,156) $26,221 $9,622
========= ========= ========= =========
Diluted net income (loss) per
share $0.09 ($0.13) $1.09 $0.39
========= ========= ========= =========
