Zumiez Inc. Announces Fiscal 2011 First Quarter ResultsFirst Quarter 2011 Diluted EPS Improved to $0.06
EVERETT, WA -- (Marketwire - May 19, 2011) - Zumiez Inc. (NASDAQ: ZUMZ), a leading specialty retailer of action sports related apparel, footwear, equipment and accessories, today reported results for the first quarter ended April 30, 2011.
Total net sales for the first quarter (13 weeks) ended April 30, 2011 increased 18.8% to $105.9 million from $89.1 million reported in the first quarter ended May 1, 2010 (13 weeks). Comparable store sales for the first quarter of fiscal 2011 increased 12.6% on top of an increase of 9.1% for the first quarter of fiscal 2010. The Company posted net income for the quarter of $1.9 million or $0.06 per diluted share compared to a net loss of $1.9 million or ($0.06) per diluted share in the first quarter of the prior fiscal year. The results for the first quarter of fiscal 2010 include costs of approximately $1.2 million, or $0.03 per diluted share, associated with the relocation of the Company's distribution center from Everett, Washington to Corona, California.
At April 30, 2011, the Company had cash and current marketable securities of $130.7 million compared to cash and current marketable securities of $96.8 million at May 1, 2010.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, "Our first quarter results represent a good start to fiscal 2011, although only a small percentage of our full year earnings. This gives us added confidence as we increase our store base in the U.S. and now Canada. Longer-term, we remain excited about the multiple areas of organic growth we believe exist for our concept including meaningful unit expansion, same store sales opportunities, and further development of our e-commerce platform."
2011 Outlook
The Company is introducing guidance for the three months ending July 30, 2011 of net income per diluted share of approximately $0.02 to $0.04 per diluted share. This guidance is based on an anticipated comparable store sales increase in the mid single digit range for the second quarter of fiscal 2011.
The Company currently intends to open approximately 44 new stores in fiscal 2011, including its first stores in Canada, with an opening cadence similar to fiscal 2010. A conference call will be held today to discuss first quarter 2011 results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (617)-224-4327 followed by the conference identification code of 99128539.
About Zumiez Inc.
Zumiez is a leading specialty retailer of action sports related apparel, footwear, equipment and accessories. Our stores cater to young men and women between ages 12-24, focusing on skateboarding, surfing, snowboarding, motocross and BMX. As of April 30, 2011 we operated 406 stores in the United States and 2 stores in Canada, which are primarily located in shopping malls, and our web site address is www.zumiez.com.
Safe Harbor Statement
Certain statements in this press release and oral statements relating thereto made from time to time by representatives of the Company may constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, predictions and guidance relating to the Company's future financial performance, brand and product category diversity, ability to adjust product mix, integration of acquired businesses, growing customer demand for our products and new store openings. In some cases, you can identify forward-looking statements by terminology such as, "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based on management's current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation, those described in the Company's annual report on Form 10-K for the year ended January 29, 2011 as filed with the Securities and Exchange Commission and available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
---------------------------------------------
April 30, % of May 1, % of
2011 Sales 2010 Sales
----------- --------- ---------- ---------
Net sales $ 105,851 100.0% $ 89,096 100.0%
Cost of goods sold 72,429 68.4% 63,598 71.4%
----------- --------- ---------- ---------
Gross profit 33,422 31.6% 25,498 28.6%
Selling, general and
administrative expenses 30,870 29.2% 28,752 32.3%
----------- --------- ---------- ---------
Operating profit (loss) 2,552 2.4% (3,254) (3.7%)
Interest income, net 513 0.4% 365 0.4%
Other income, net 55 0.1% 24 0.1%
----------- --------- ---------- ---------
Earnings (loss) before income
taxes 3,120 2.9% (2,865) (3.2%)
Provision (benefit) for
income taxes 1,234 1.1% (965) (1.1%)
----------- --------- ---------- ---------
Net income (loss) $ 1,886 1.8% $ (1,900) (2.1%)
=========== ========= ========== =========
Basic earnings (loss) per
share $ 0.06 $ (0.06)
=========== ==========
Diluted earnings (loss) per
share $ 0.06 $ (0.06)
=========== ==========
Weighted average shares used
in computation of earnings
(loss) per share:
Basic 30,343 29,738
Diluted 31,084 29,738
ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 30, January 29, May 1,
2011 2011 2010
------------ ----------- ---------------
Assets (Unaudited) (Unaudited)
Current assets
Cash and cash equivalents $ 13,290 $ 11,357 $ 2,026
Marketable securities 117,409 117,444 94,790
Receivables 8,277 6,129 6,528
Income taxes receivable 2,910 - 2,460
Inventories 63,148 56,303 58,618
Prepaid expenses and other 6,967 7,210 6,971
Deferred tax assets 1,720 2,418 3,750
------------ ----------- ---------------
Total current assets 213,721 200,861 175,143
Fixed assets, net 79,051 78,248 77,224
Goodwill and other intangibles 13,154 13,154 13,173
Long-term deferred tax assets 4,880 5,703 5,644
Long-term investments 2,799 2,766 870
Long-term other assets 758 899 1,127
------------ ----------- ---------------
Total long-term assets 100,642 100,770 98,038
Total assets $ 314,363 $ 301,631 $ 273,181
============ =========== ===============
Liabilities and Shareholders'
Equity
Current liabilities
Trade accounts payable $ 30,174 $ 16,371 $ 31,188
Accrued payroll and payroll taxes 6,232 7,580 5,998
Income taxes payable - 4,108 -
Deferred rent and tenant
allowances 3,852 3,719 3,442
Other liabilities 11,518 13,683 9,554
------------ ----------- ---------------
Total current liabilities 51,776 45,461 50,182
Long-term deferred rent and
tenant allowances 29,452 27,629 27,520
Long-term other liabilities 1,805 1,806 1,441
------------ ----------- ---------------
Total long-term liabilities 31,257 29,435 28,961
------------ ----------- ---------------
Total liabilities 83,033 74,896 79,143
------------ ----------- ---------------
Commitments and contingencies
Shareholders' equity
Preferred stock, no par value,
20,000 shares authorized; none
issued and outstanding -- -- --
Common stock, no par value,
50,000 shares authorized; 31,007
shares issued and outstanding at
April 30, 2011, 30,835 shares
issued and outstanding at
January 29, 2011 and 30,564
shares issued and outstanding at
May 1, 2010 93,986 91,373 84,753
Accumulated other comprehensive
income (loss) 79 (17) 9
Retained earnings 137,265 135,379 109,276
------------ ----------- ---------------
Total shareholders' equity 231,330 226,735 194,038
------------ ----------- ---------------
Total liabilities and
shareholders' equity $ 314,363 $ 301,631 $ 273,181
============ =========== ===============
Company Contact:
Brian Leith
Director of Finance &
Investor Relations
Zumiez Inc.
(425) 551-1500, ext. 1610
Investor Contact:
ICR, Inc.
Brendon Frey
(203) 682-8200
