The Finish Line, Inc. (NASDAQ: FINL) today reported results for
the 14-week and 53-week periods ended March 3, 2018, compared to
the 13-week and 52-week periods ended February 25, 2017.
For the 14-weeks ended March 3, 2018
compared to the 13-weeks ended February 25, 2017*:
- Consolidated net sales were $561.3
million, an increase of 0.7% over the prior year period.
- Finish Line’s sales decreased 0.9%.
- Finish Line comparable sales decreased
7.9%.**
- Finish Line Macy’s sales increased
8.5%.
- On a GAAP basis, diluted earnings per
share from continuing operations were $0.40.
- Non-GAAP diluted earnings per share
from continuing operations, which primarily excludes the impact
from impairment charges and store closing costs and the company’s
revaluation of its deferred tax liability as a result of the Tax
Cuts and Jobs Act, were $0.59.
For the 53-weeks ended March 3, 2018
compared to the 52-weeks ended February 25, 2017*:
- Consolidated net sales were $1.84
billion, a decrease of 0.3% from the prior year period.
- Finish Line’s sales decreased 1.9%.
- Finish Line comparable sales decreased
3.9%.**
- Finish Line Macy’s sales increased
7.5%.
- On a GAAP basis, diluted earnings per
share from continuing operations were $0.36.
- Non-GAAP diluted earnings per share
from continuing operations, which primarily excludes the impact
from impairment charges and store closing costs and the company’s
revaluation of its deferred tax liability as a result of the Tax
Cuts and Jobs Act, were $0.69
* Excludes comparable sales.** Finish Line comparable sales were
calculated by comparing the 14-week and 53-week periods ended March
3, 2018 to the 14-week and 53-week periods ended March 4, 2017.
“While we anticipated that our business would be under pressure
during the fourth quarter due to a difficult selling environment
for athletic footwear, sales ended up being down more than we
forecasted,” said Sam Sato, Chief Executive Officer of Finish Line.
“Despite the top-line headwinds, we worked hard on tightly
controlling costs and managing inventories to deliver adjusted
earnings per share for the fourth quarter at the high-end of our
most recent guidance range of $0.58 to $0.59.”
Balance Sheet
As of March 3, 2018, consolidated merchandise inventories
decreased 2.8% to $321.7 million compared to $331.1 million as of
February 25, 2017.
As of March 3, 2018, the company had no interest-bearing debt
and $93.4 million in cash and cash equivalents. The company did not
repurchase any shares of its common stock during the fourth
quarter.
Agreement with JD
On March 26, 2018, Finish Line announced that it had entered
into a definitive merger agreement with JD Sports Fashion Plc
(“JD”) under which JD will acquire Finish Line for $13.50 per share
in an all cash transaction. The merger agreement is subject to
Finish Line and JD shareholder approval of the merger, the receipt
of all required regulatory approvals, and the satisfaction of other
customary conditions to closing. The expected timeline to close on
this agreement is no earlier than June 2018. In light of the
pending merger, Finish Line will not be hosting a conference call
to discuss fourth quarter results.
Disclosure Regarding Non-GAAP
Measures
This report refers to certain financial measures that are
identified as non-GAAP. The company believes that these non-GAAP
measures, including selling, general, and administrative expenses,
operating income, income tax (benefit) expense, net income from
continuing operations, and diluted earnings per share from
continuing operations, are helpful to investors because they allow
for a more direct comparison of the company’s year-over-year
performance and are useful in assessing the company’s progress in
achieving its long-term financial objectives. This supplemental
information should not be considered in isolation or as a
substitute for the related GAAP measures. A reconciliation of the
non-GAAP measures to the comparable GAAP measures can be found at
the end of this press release.
About The Finish Line,
Inc.
The Finish Line, Inc. is a premium retailer that carries the
latest and greatest shoes, apparel and accessories. Headquartered
in Indianapolis, Finish Line runs approximately 930 branded
locations in U.S. malls and shops inside Macy’s department stores.
Finish Line employs approximately 13,000 associates who connect
customers to sneaker culture through style and sport. Shop online
at www.finishline.com or get access to everything on the Finish
Line app. Also keep track of what’s fresh by following Finish Line
on Instagram, Snapchat and Twitter.
Forward-Looking
Statements
Statements in this press release, including statements regarding
the proposed transaction between Finish Line and JD, the expected
timetable for completing the proposed transaction, and the
potential benefits created by the proposed transaction, are
intended to be covered by the safe harbor for “forward-looking
statements” provided by the Private Securities Litigation Reform
Act of 1995. These forward-looking statements generally can be
identified by use of statements that include, but are not limited
to, phrases such as “believe,” “expect,” “future,” “anticipate,”
“intend,” “plan,” “foresee,” “may,” “should,” “will,” “estimates,”
“potential,” “continue,” or other similar words or phrases.
Similarly, statements that describe objectives, plans, or goals
also are forward-looking statements. Such forward-looking
statements involve inherent risks and uncertainties, many of which
are difficult to predict and are generally beyond the control of
Finish Line or JD. Finish Line cautions readers that a number of
important factors could cause actual results to differ materially
from those expressed in, implied, or projected by such
forward-looking statements. Risks and uncertainties include, but
are not limited to: the failure of the proposed transaction to
close in a timely manner or at all; the effects of the announcement
or pendency of the proposed transaction on the Company and its
business; the nature, cost, and outcome of any litigation related
to the proposed transaction; general economic conditions; Finish
Line’s reliance on a few key vendors for a majority of its
merchandise purchases (including a significant portion from one key
vendor); the availability and timely receipt of products; the
ability to timely fulfill and ship products to customers;
fluctuations in oil prices causing changes in gasoline and energy
prices, resulting in changes in consumer spending as well as
increases in utility, freight, and product costs; product demand
and market acceptance risks; the inability to locate and obtain or
retain acceptable lease terms for the company’s stores; the effect
of competitive products and pricing; loss of key employees;
cybersecurity risks, including breach of customer data; the
potential impact of legal or regulatory changes, including the
impact of the U.S. Tax Cuts and Jobs Act of 2017; interest rate
levels; the impact of inflation; a major failure of technology and
information systems; and the other risks detailed in Finish Line’s
Securities and Exchange Commission (SEC) filings. Readers are urged
to consider these factors carefully in evaluating the
forward-looking statements. Investors and shareholders are also
urged to read the risk factors set forth in the proxy statement
carefully when they are available.
If any of these risks or uncertainties materializes or if any of
the assumptions underlying such forward-looking statements proves
to be incorrect, the developments and future events concerning
Finish Line and JD set forth in this press release may differ
materially from those expressed or implied by these forward-looking
statements. You are cautioned not to place undue reliance on these
statements, which speak only as of the date of this document. We
anticipate that subsequent events and developments will cause our
expectations and beliefs to change. Finish Line assumes no
obligation to update such forward-looking statements to reflect
events or circumstances after the date of this document or to
reflect the occurrence of unanticipated events, unless obligated to
do so under the federal securities laws.
Additional Information for
Shareholders
This communication contains statements, among others, relating
to the proposed merger between Finish Line and JD. The proposed
merger will be submitted to Finish Line’s and JD’s shareholders for
their consideration and approval. In connection with the proposed
merger, Finish Line and JD will file relevant materials with (i)
the SEC, including a proxy statement of Finish Line, and (ii) the
United Kingdom Listing Authority (UKLA) in the U.K., including a
circular of JD. When completed, a definitive proxy statement and a
form of proxy will be mailed to the shareholders of Finish Line,
and a circular will be mailed to the shareholders of JD. This
communication is not a substitute for the proxy statement,
circular, or other document(s) that Finish Line and/or JD may file
with the SEC or the UKLA in connection with the proposed
transaction. Finish Line’s and JD’s shareholders are urged to
read the proxy statement and other documents filed with the SEC and
the U.K. circular regarding the proposed merger transaction when
they become available because they will contain important
information about Finish Line, JD, and the proposed merger
transaction itself. Finish Line’s shareholders will be able to
obtain, without charge, a copy of the proxy statement (when
available) and other relevant documents filed with the SEC from the
SEC’s website at www.sec.gov. Finish Line’s shareholders also will
be able to obtain, without charge, a copy of the proxy statement
and other relevant documents (when available) by directing a
request by mail or telephone to Finish Line, Inc., 3308 N.
Mitthoeffer Road, Indianapolis, Indiana 46235, Attention: Corporate
Secretary, or by calling (317) 899-1022, or from Finish Line’s
website at www.finishline.com under “Investor Relations –
Financials & SEC Filings.” The information available through
Finish Line’s website is not and shall not be deemed part of this
document or incorporated by reference into other filings Finish
Line makes with the SEC. This communication does not constitute an
offer to sell or the solicitation of an offer to buy any
securities.
Finish Line, JD, and their respective directors and certain of
their officers may be deemed to be participants in the solicitation
of proxies from Finish Line’s shareholders with respect to the
special meeting of shareholders that will be held to consider the
matters to be approved by Finish Line’s shareholders in connection
with the merger transaction. Information about Finish Line’s
directors and executive officers and their ownership of Finish
Line’s common stock is set forth in the proxy statement for Finish
Line’s 2017 annual meeting of shareholders, as filed with the SEC
on Schedule 14A on June 2, 2017. Shareholders may obtain additional
information regarding the interests of Finish Line and its
directors and executive officers in the proposed merger, which may
be different than those of Finish Line’s shareholders generally, by
reading the proxy statement and other relevant documents regarding
the proposed merger, when filed with the SEC.
The Finish Line, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share and store/shop data)
FourteenWeeks EndedMarch 3,2018
ThirteenWeeks EndedFebruary 25,2017
Fifty-ThreeWeeks EndedMarch 3,2018
Fifty-TwoWeeks EndedFebruary 25,2017
Net sales $ 561,299 $ 557,452 $ 1,838,956 $ 1,844,393 Cost of sales
(including occupancy costs) 384,377 395,298 1,306,859
1,295,989 Gross profit 176,922 162,154 532,097
548,404 Selling, general, and administrative expenses 137,597
128,705 486,484 480,897 Impairment charges and store closing costs
27,912 13,129 36,691 13,312 Operating
income 11,413 20,320 8,922 54,195 Interest (income) expense, net
(56 ) 101 (73 ) 279 Income from continuing operations
before income taxes 11,469 20,219 8,995 53,916 Income tax (benefit)
expense (4,842 ) 7,919 (5,719 ) 18,760 Net income
from continuing operations 16,311 12,300 14,714 35,156 Net income
(loss) from discontinued operations, net of tax 30 (21,771 )
(304 ) (53,364 ) Net income (loss) $ 16,341 $ (9,471 ) $
14,410 $ (18,208 ) Diluted earnings (loss) per share:
Continuing operations
0.40 0.30 0.36 0.85 Discontinued operations — (0.53 ) (0.01
) (1.29 ) Diluted earnings (loss) per share 0.40 (0.23 )
0.35 (0.44 ) Diluted weighted average shares 40,381
40,790 40,339 41,367 Dividends declared per
share $ 0.115 $ 0.11 $ 0.445 $ 0.41
Finish Line store activity for the
period:
Beginning of period 566 580 573 591 Opened 1 — 3 6 Closed (11 ) (7
) (20 ) (24 ) End of period 556 573 556 573
Square feet at end of period 3,115,153 3,187,942 Average
square feet per store 5,603 5,564 Branded shops within department
stores activity for the period: Beginning of period 378 392 374 392
Opened — — 4 1 Closed (3 ) (18 ) (3 ) (19 ) End of period 375
374 375 374 Square feet at end of
period 537,030 526,286 Average square feet per shop 1,432 1,407
FourteenWeeks EndedMarch 3,2018
ThirteenWeeks EndedFebruary 25,2017
Fifty-ThreeWeeks EndedMarch 3,2018
Fifty-TwoWeeks EndedFebruary 25,2017
Net sales 100.0 % 100.0 % 100.0 % 100.0 % Cost of sales (including
occupancy costs) 68.5 70.9 71.1 70.3
Gross profit 31.5 29.1 28.9 29.7 Selling, general, and
administrative expenses 24.5 23.1 26.4 26.1 Impairment charges and
store closing costs 5.0 2.4 2.0 0.7
Operating income 2.0 3.6 0.5 2.9 Interest (income) expense, net —
— — — Income from continuing operations
before income taxes 2.0 3.6 0.5 2.9 Income tax (benefit) expense
(0.9 ) 1.4 (0.3 ) 1.0 Net income from continuing
operations 2.9 2.2 0.8 1.9 Net income (loss) from discontinued
operations, net of tax — (3.9 ) — (2.9 ) Net income
(loss) 2.9 % (1.7 )% 0.8 % (1.0 )%
Condensed ConsolidatedBalance Sheets
March 3,
2018
February 25,
2017
(Unaudited) (Unaudited)
ASSETS Cash and cash equivalents $
93,385 $ 90,856 Merchandise inventories, net 321,742 331,146 Other
current assets 47,011 69,408 Property and equipment, net 138,562
157,594 Intangible assets, net 68,884 90,303 Other assets, net
5,448 7,161 Total assets $ 675,032 $ 746,468
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current liabilities $ 170,571 $ 221,971 Deferred credits from
landlords 34,629 32,133 Other long-term liabilities 18,842 40,866
Shareholders’ equity 450,990 451,498 Total liabilities and
shareholders’ equity $ 675,032 $ 746,468
Condensed Consolidated Statements ofCash
Flows
March 3,
2018
February 25,
2017
(Unaudited) (Unaudited)
Operating activities: Net income
(loss) $ 14,410 $ (18,208 ) Net loss from discontinued operations
(304 ) (53,364 ) Net income from continued operations 14,714 35,156
Impairment charges and store closing costs 36,691 13,312
Depreciation and amortization 52,870 49,376 Other non-cash expenses
and changes in working capital (58,488 ) 69,670 Net cash
provided by operating activities - continuing operations 45,787
167,514 Net cash provided by (used in) operating activities -
discontinued operations 31,953 (2,975 ) Net cash provided by
operating activities 77,740 164,539
Investing activities:
Capital expenditures for property and equipment (39,358 ) (61,096 )
Payments for intangible assets (10,151 ) (13,688 ) Other investing
activities (2,447 ) (7,721 ) Net cash used in investing activities
- continuing operations (51,956 ) (82,505 ) Net cash used in
investing activities - discontinued operations — (1,659 )
Net cash used in investing activities (51,956 ) (84,164 )
Financing activities: Net cash used in financing activities
- continuing operations (21,755 ) (69,014 ) Net cash used in
financing activities - discontinued operations (1,500 ) —
Net cash used in financing activities (23,255 ) (69,014 ) Net
increase in cash and cash equivalents 2,529 11,361
Cash and cash equivalents at beginning of period 90,856
79,495 Cash and cash equivalents at end of period $
93,385
$ 90,856
Reconciliation of Selling, General, and
Administrative Expenses, GAAP to Selling, General, and
Administrative Expenses,
Non-GAAP (Unaudited)
(In thousands)
Fourteen WeeksEndedMarch 3, 2018
Thirteen WeeksEndedFebruary 25, 2017
Fifty-Three WeeksEndedMarch 3, 2018
Fifty-Two WeeksEndedFebruary 25, 2017
Selling, general, andadministrative
expenses,GAAP
$ 137,597 24.5 % $ 128,705 23.1 % $
486,484 26.4 % $ 480,897 26.1 %
Employee severance,retirement, and other
costs
— — — — (338 ) — (2,132 ) (0.2 )
Selling, general, andadministrative
expenses, Non-GAAP
$ 137,597 24.5 % $ 128,705 23.1 % $ 486,146
26.4 % $ 478,765 25.9 % Reconciliation of
Operating Income, GAAP to Operating Income, Non-GAAP (Unaudited)
(In thousands)
Fourteen WeeksEndedMarch 3, 2018
Thirteen WeeksEndedFebruary 25, 2017
Fifty-Three WeeksEndedMarch 3, 2018
Fifty-Two WeeksEndedFebruary 25, 2017
Operating income, GAAP $ 11,413 2.0 % $ 20,320
3.6 % $ 8,922 0.5 % $ 54,195 2.9
% Employee severance, retirement, and other costs — — — — 338 —
2,132 0.1 Impairment charges and store closing costs 27,912
5.0 13,129 2.4 36,691 2.0 13,312
0.7 Operating income, Non-GAAP $ 39,325 7.0 %
$ 33,449 6.0 % $ 45,951 2.5 % $ 69,639 3.7 %
Reconciliation of Income Tax (Benefit) Expense, GAAP
to Income Tax Expense, Non-GAAP (Unaudited) (In thousands)
Fourteen WeeksEndedMarch 3, 2018
Thirteen WeeksEndedFebruary 25, 2017
Fifty-Three WeeksEndedMarch 3, 2018
Fifty-Two WeeksEndedFebruary 25, 2017
Income tax (benefit) expense,
GAAP
$ (4,842 ) (0.9 )% $ 7,919 1.4 % $ (5,719 )
(0.3 )% $ 18,760 1.0 % Tax effect of:
Employee severance,retirement, and
othercosts*
— — — — 130 — 1,453 0.1
Impairment charges andstore closing
costs*
9,822 1.8 5,053 0.9 13,201 0.7 5,125 0.3
Tax Cuts and Jobs Act ondeferred tax
liability
10,071 1.8 — — 10,071 0.6
— —
Income tax expense, Non-GAAP
$ 15,051 2.7 % $ 12,972 2.3 % $ 17,683 1.0 % $
25,338 1.4 %
* Tax rate used within is 36.0% and 38.5% for March 3, 2018 and
February 25, 2017, respectively.
Reconciliation of Net Income From Continuing Operations,
GAAP to Net Income From Continuing Operations, Non-GAAP (Unaudited)
(In thousands)
Fourteen WeeksEndedMarch 3, 2018
Thirteen WeeksEndedFebruary 25, 2017
Fifty-Three WeeksEndedMarch 3, 2018
Fifty-Two WeeksEndedFebruary 25, 2017
Net income from continuing operations,
GAAP
$ 16,311 2.9 % $ 12,300 2.2 % $ 14,714
0.8 % $ 35,156 1.9 %
Employee severance,retirement, and other
costs,net of income taxes
— — — — 208 — 679 0.1
Impairment charges andstore closing costs,
net ofincome taxes
18,090 3.2 8,076 1.5 23,490 1.3 8,187 0.4
Effect of Tax Cuts andJobs Act on deferred
taxliability
(10,071 ) (1.8 ) — — (10,071 ) (0.6 ) — —
Net income from continuingoperations,
Non-GAAP
$ 24,330 4.3 % $ 20,376 3.7 % $ 28,341 1.5 % $
44,022 2.4 % Reconciliation of Diluted
Earnings Per Share From Continuing Operations, GAAP to Diluted
Earnings Per Share From Continuing Operations, Non-GAAP (Unaudited)
FourteenWeeks EndedMarch 3,2018
ThirteenWeeks EndedFebruary 25,2017
Fifty-ThreeWeeks EndedMarch 3,2018
Fifty-TwoWeeks EndedFebruary 25,2017
Diluted earnings per share from continuing
operations,GAAP
$ 0.40 $ 0.30 $ 0.36 $ 0.85
Employee severance, retirement, and other
costs, netof income taxes
— — — 0.02
Impairment charges and store closing
costs, net ofincome taxes
0.44 0.20 0.58 0.19
Effect of Tax Cuts and Jobs Act on
deferred tax
liability
(0.25 ) — (0.25 ) —
Diluted earnings per share from continuing
operations,Non-GAAP
$ 0.59 $ 0.50 $ 0.69 $ 1.06
Note: See Disclosure Regarding Non-GAAP Measures above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180329005547/en/
The Finish Line, Inc.MEDIA:Dianna L. Boyce,
317-613-6577Corporate CommunicationsorINVESTOR:Ed Wilhelm,
317-613-6914Chief Financial Officer
The Finish Line, Inc. (delisted) (NASDAQ:FINL)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
The Finish Line, Inc. (delisted) (NASDAQ:FINL)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024