Zumiez Inc. Announces Fiscal 2013 First Quarter ResultsLYNNWOOD, WA -- (Marketwire - May 23, 2013) - 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 May 4, 2013.
Total net sales for the first quarter ended May 4, 2013 (13 weeks) increased 14.3% to $148.5 million from $129.9 million in the first quarter ended April 28, 2012 (13 weeks). Comparable store sales for the thirteen weeks ended May 4, 2013 decreased (0.7%) compared to a comparable store sales increase of 12.9% for the thirteen weeks ended April 28, 2012. Net income in the first quarter of fiscal 2013 was $2.5 million, or $0.08 per diluted share, compared to net income of $4.5 million, or $0.14 per diluted share, in the first quarter of the prior fiscal year. The results for fiscal 2013 include costs of approximately $1.7 million, or $0.05 per diluted share, for charges associated with the acquisition of Blue Tomato, and the results for fiscal 2012 include approximately $0.4 million, or $0.01 per diluted share, of Blue Tomato acquisition charges.
At May 4, 2013, the Company had cash and current marketable securities of $97.6 million compared to cash and current marketable securities of $171.2 million at April 28, 2012. The decrease in cash and current marketable securities is a result of the acquisition of Blue Tomato, which was funded by the Company's cash and current marketable securities balance, as well as capital expenditures and stock repurchases, offset by cash generated through operations.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, "Our business improved throughout the first quarter driven by strong full price selling during the combined March/April period. These results, which were delivered in a more challenging operating environment than a year ago, reflect the success of our continued execution on long-term growth strategies and the strength of our highly differentiated and diverse merchandise offering. We remain confident that our current course can continue to yield increased top and bottom line long-term gains."
Fiscal 2013 Second Quarter Outlook
The Company is introducing guidance for the three months ending August 3, 2013. Net sales are projected to be in the range of $155 to $158 million resulting in net income per diluted share of approximately $0.12 to $0.14, which includes an estimated $1.6 million, or approximately $0.04 per diluted share, for charges associated with the acquisition of Blue Tomato. This guidance is based on anticipated comparable store sales in the range of flat to an increase of 2% for the second quarter of fiscal 2013.
The Company currently intends to open 58 new stores in fiscal 2013, including 9 stores in Canada and 6 stores in Europe.
A conference call will be held today to discuss first quarter fiscal 2013 results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (617)-597-5311 followed by the conference identification code of 51349190.
About Zumiez Inc.
Zumiez is a leading multi-channel specialty retailer of action sports related apparel, footwear, equipment and accessories, focusing on skateboarding, snowboarding, surfing, motocross and BMX for young men and women. As of May 4, 2013 we operated 503 stores, 475 in the United States, 22 in Canada, and 6 in Europe. We operate under the name Zumiez and Blue Tomato. Additionally, we operate ecommerce web sites at www.zumiez.com and www.blue-tomato.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 February 2, 2013 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
------------------------------------------
May 4, % of April 28, % of
2013 Sales 2012 Sales
--------- --------- ---------- ---------
Net sales $ 148,496 100.0% $ 129,899 100.0%
Cost of goods sold 100,524 67.7% 87,798 67.6%
--------- --------- ---------- ---------
Gross profit 47,972 32.3% 42,101 32.4%
Selling, general and
administrative expenses 43,943 29.6% 34,839 26.8%
--------- --------- ---------- ---------
Operating profit 4,029 2.7% 7,262 5.6%
Interest income, net 215 0.1% 490 0.4%
Other (expense) income, net (146) 0.0% 17 0.0%
--------- --------- ---------- ---------
Earnings before income taxes 4,098 2.8% 7,769 6.0%
Provision for income taxes 1,600 1.1% 3,242 2.5%
--------- --------- ---------- ---------
Net income $ 2,498 1.7% $ 4,527 3.5%
========= ========= ========== =========
Basic earnings per share $ 0.08 $ 0.15
========= ==========
Diluted earnings per share $ 0.08 $ 0.14
========= ==========
Weighted average shares used in
computation of earnings per
share:
Basic 29,714 30,779
Diluted 30,183 31,401
ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
May 4, February 2, April 28,
2013 2013 2012
----------- ----------- -----------
Assets (Unaudited) (Unaudited)
Current assets
Cash and cash equivalents $ 14,661 $ 17,579 $ 7,962
Marketable securities 82,986 85,593 163,243
Receivables 10,466 9,467 8,700
Income taxes receivable - - 3,325
Inventories 90,870 77,598 70,435
Prepaid expenses and other 9,456 9,192 8,295
Deferred tax assets 4,104 3,885 1,837
----------- ----------- -----------
Total current assets 212,543 203,314 263,797
Fixed assets, net 117,826 115,474 96,275
Goodwill 62,539 64,576 13,154
Intangible assets, net 19,097 20,480 -
Long-term other assets 4,979 5,254 5,700
----------- ----------- -----------
Total long-term assets 204,441 205,784 115,129
Total assets $ 416,984 $ 409,098 $ 378,926
=========== =========== ===========
Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable $ 36,210 $ 16,052 $ 36,514
Accrued payroll and payroll taxes 6,745 11,057 7,086
Income taxes payable 971 6,957 -
Deferred rent and tenant allowances 5,252 4,901 4,350
Other liabilities 16,307 18,232 14,452
----------- ----------- -----------
Total current liabilities 65,485 57,199 62,402
Long-term deferred rent and tenant
allowances 38,863 36,928 34,045
Long-term deferred tax liabilities 5,074 5,544 -
Long-term debt and other liabilities 6,321 6,006 2,060
----------- ----------- -----------
Total long-term liabilities 50,258 48,478 36,105
----------- ----------- -----------
Total liabilities 115,743 105,677 98,507
----------- ----------- -----------
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; 30,163 shares issued
and outstanding at May 4, 2013, 30,114
shares issued and outstanding at
February 2, 2013 and 31,324 shares
issued and oustanding at April 28, 2012 110,784 108,360 102,971
Accumulated other comprehensive income 2,588 6,010 191
Retained earnings 187,869 189,051 177,257
----------- ----------- -----------
Total shareholders' equity 301,241 303,421 280,419
----------- ----------- -----------
Total liabilities and shareholders'
equity $ 416,984 $ 409,098 $ 378,926
=========== =========== ===========
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
----------------------
May 4, April 28,
2013 2012
---------- ----------
Cash flows from operating activities:
Net income $ 2,498 $ 4,527
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, amortization and accretion 6,331 5,275
Deferred taxes (260) (35)
Stock-based compensation expense 1,513 1,606
Excess tax benefit from stock-based compensation (529) (1,710)
Other 114 (74)
Changes in operating assets and liabilities:
Receivables (1,068) (2,172)
Inventories (13,685) (5,355)
Prepaid expenses and other (440) (411)
Trade accounts payable 19,848 14,297
Accrued payroll and payroll taxes (4,272) (1,978)
Income taxes payable (5,415) (7,443)
Deferred rent and tenant allowances 2,324 1,821
Other liabilities (2,557) (2,549)
---------- ----------
Net cash provided by operating activities 4,402 5,799
---------- ----------
Cash flows from investing activities:
Additions to fixed assets (6,374) (8,519)
Purchases of marketable securities and other
investments (15,137) (43,375)
Sales and maturities of marketable securities and
other investments 17,315 37,317
---------- ----------
Net cash used in investing activities (4,196) (14,577)
---------- ----------
Cash flows from financing activities:
Payments on long-term debt (77) -
Repurchase of common stock (3,680) -
Proceeds from exercise of stock-based compensation,
net of withholding tax payments 382 243
Excess tax benefit from stock-based compensation 529 1,710
---------- ----------
Net cash (used in) provided by financing activities (2,846) 1,953
---------- ----------
Effect of exchange rate changes on cash and cash
equivalents (278) 8
Net decrease in cash and cash equivalents (2,918) (6,817)
Cash and cash equivalents, beginning of period 17,579 14,779
---------- ----------
Cash and cash equivalents, end of period $ 14,661 $ 7,962
========== ==========
Supplemental disclosure on cash flow information:
Cash paid during the period for income taxes $ 7,266 $ 10,705
Accrual for purchases of fixed assets 3,534 5,840
Company Contact:
Brian Leith
Director of Finance &
Investor Relations
Zumiez Inc.
(425) 551-1500, ext. 1610
Investor Contact:
ICR
Brendon Frey
(203) 682-8200
