Financial Contact: James S. Gulmi (615) 367-8325
Media Contact: Claire S. McCall (615) 367-8283
GENESCO REPORTS SECOND QUARTER FISCAL 2013 RESULTS
--Second Quarter Comparable Store Sales Increased 4%--
-- Company Raises Fiscal 2013 Outlook--
--Announces New Share Repurchase Authorization--
NASHVILLE, Tenn., Aug. 29, 2012 --- Genesco Inc. (NYSE:GCO) today reported earnings from continuing operations for the second quarter ended July 28, 2012, of $10.6 million, or $0.44 per diluted share, compared to earnings from continuing operations of $0.4 million, or $0.01 per diluted share, for the second quarter ended July 30, 2011. Fiscal 2013 second quarter results reflect pretax items of $3.3 million, or $0.06 per diluted share after tax, primarily including compensation expenses related to deferred purchase price payments in connection with the acquisition of Schuh Group Limited in June 2011, decreased by tax rate adjustments, and asset impairment charges. As previously announced, because the obligation to pay the deferred purchase price for Schuh is contingent upon the continued employment of the payees, U.S. Generally Accepted Accounting Principles require that it be treated as compensation expense. Last year, second quarter results included $8.1 million pretax, or $0.21 per diluted share after tax, of acquisition-related expenses including deferred purchase price, decreased by a tax rate adjustment, and asset impairment charges.
Adjusted for the items described above in both periods, earnings from continuing operations were $12.1 million, or $0.50 per diluted share, for the second quarter of Fiscal 2013, compared to earnings from continuing operations of $5.2 million, or $0.22 per diluted share, for the second quarter of Fiscal 2012. For consistency with Fiscal 2013's previously announced earnings expectations and with previously reported adjusted results for the prior year period, the Company believes that the disclosure of the results from continuing operations adjusted for these items will be useful to investors. Additionally, the Company believes that the presentation of earnings from continuing operations before the compensation expense associated with the Schuh deferred purchase price will enable investors to understand the effect attributable to incorporating a continuing employment condition into the obligation to pay deferred purchase price. A reconciliation of earnings and earnings per share from continuing operations in accordance with U.S. Generally Accepted Accounting Principles with the adjusted earnings and earnings per share numbers presented in this paragraph is set forth on Schedule B to this press release.
Net sales for the second quarter of Fiscal 2013 increased 15% to $543.5 million from $470.6 million in the second quarter of Fiscal 2012, reflecting the addition of sales from Schuh Group and a comparable store sales increase of 4%. The Lids Sports Group's comparable store sales increased by 2%, the Journeys Group increased by 6%, and Johnston & Murphy Retail increased by 2%. The Schuh Group's comparable store sales increased by 9% in the month of July, the first month it was eligible for inclusion in the Company's comparable store numbers.
Robert J. Dennis, chairman, president and chief executive officer of Genesco, said, “We are pleased with the strength of our second quarter performance. We generated significant operating expense leverage on solid sales growth to deliver earnings that were ahead of expectations. With August comparable sales up 9%, the third quarter is off to an encouraging start. We believe our merchandise assortment is well positioned for the remainder of back-to-school and the upcoming holiday season.”
Dennis also discussed the Company's updated outlook. “Based on second quarter performance, we are raising our guidance for the year. We now expect adjusted Fiscal 2013 diluted earnings per share to be in the range of $4.88 to $5.00, an increase from our previous guidance range of $4.70 to $4.82. The new outlook represents an increase of 19% to 22% over last year's adjusted earnings per share of $4.09. Consistent with previous guidance, these expectations do not include expected non-cash asset impairments and other charges, which are estimated in the range of $1.5 million to $2.5 million pretax, or $0.04 to $0.06 per share, after tax, in Fiscal 2013. They also do not reflect compensation expense associated with the Schuh deferred purchase price as described above, which is currently estimated at approximately $12.0 million, or $0.49 per diluted share, for the full year. The revised guidance assumes a comparable sales increase in the 4% range for the full fiscal year.” A reconciliation of the adjusted financial measures cited in the guidance to their corresponding measures as reported pursuant to U.S. Generally Accepted Accounting Principles is included in Schedule B to this press release.
Dennis concluded, “Our strong operating performances over the last several quarters highlight the strength of our business model. While the economic conditions in each of our markets have been challenging at times, our portfolio of businesses have continued to perform well, thanks to their strategic advantages and focus on operational excellence.”
Share Repurchase Authorization
�� Genesco also announced that its board of directors has authorized it to repurchase up to $75 million of the Company's common stock. The authorization replaces the remaining balance of a previous $35 million repurchase program authorized in October 2010, pursuant to which the Company has repurchased approximately 366,000 shares at a total cost of approximately $21.5 million, including approximately 346,000 shares repurchased during the second quarter this year, at a total cost of approximately $20.8 million. This program may be implemented through purchases made from time to time using a variety of methods, which may include open market purchases, private transactions, block trades, or otherwise, or by any combination of such methods, in accordance with SEC and other applicable legal requirements. The timing, prices and sizes of purchases will depend upon prevailing stock prices, general economic and market conditions and other considerations. The repurchase program does not obligate the Company to acquire any particular amount of common stock and the repurchase program may be suspended or discontinued at any time at the Company's discretion.
Conference Call and Management Commentary
The Company has posted detailed financial commentary in writing on its website, www.genesco.com, in the investor relations section. The Company's live conference call on August 29, 2012 at 7:30 a.m. (Central time), may be accessed through the Company's internet website, www.genesco.com. To listen live, please go to the website at least 15 minutes early to register, download and install any necessary software.
Cautionary Note Concerning Forward-Looking Statements
This release contains forward-looking statements, including those regarding the performance outlook for the Company and its individual businesses (including, without limitation, sales, earnings, charges and operating margins), and all other statements not addressing solely historical facts or present conditions. Actual results could vary materially from the expectations reflected in these statements. A number of factors could cause differences. These include adjustments to estimates reflected in forward-looking statements, including the amount of required accruals related to the contingent bonus potentially
payable to Schuh management in four years based on the achievement of certain performance objectives; the costs of responding to and liability in connection with the network intrusion announced in December 2010 and the outcome of other actual and threatened litigation and loss contingencies involving the Company; the timing and amount of non-cash asset impairments; weakness in the consumer economy; competition in the Company's markets; inability of customers to obtain credit; fashion trends that affect the sales or product margins of the Company's retail product offerings; changes in buying patterns by significant wholesale customers; bankruptcies or deterioration in financial condition of significant wholesale customers; disruptions in product supply or distribution; unfavorable trends in fuel costs, foreign exchange rates, foreign labor and material costs, and other factors affecting the cost of products; the Company's ability to continue to complete and integrate acquisitions, expand its business and diversify its product base; and changes in the timing of holidays or in the onset of seasonal weather affecting period-to-period sales comparisons. Additional factors that could affect the Company's prospects and cause differences from expectations include the ability to build, open, staff and support additional retail stores and to renew leases in existing stores and maintain reductions in occupancy costs achieved in lease negotiations in recent years, and to conduct required remodeling or refurbishment on schedule and at expected expense levels; deterioration in the performance of individual businesses or of the Company's market value relative to its book value, resulting in impairments of fixed assets or intangible assets or other adverse financial consequences; unexpected changes to the market for the Company's shares; and variations from expected pension-related charges caused by conditions in the financial markets. Additional factors are cited in the “Risk Factors,” “Legal Proceedings” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of, and elsewhere in, our SEC filings, copies of which may be obtained from the SEC website, www.sec.gov, or by contacting the investor relations department of Genesco via our website, www.genesco.com. Many of the factors that will determine the outcome of the subject matter of this release are beyond Genesco's ability to control or predict. Genesco undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements reflect the expectations of the Company at the time they are made. The Company disclaims any obligation to update such statements.
About Genesco Inc.
Genesco Inc., a Nashville-based specialty retailer, sells footwear, headwear, sports apparel and accessories in more than 2,400 retail stores throughout the U.S., Canada, the United Kingdom and the Republic of Ireland, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Underground by Journeys, Schuh, Lids, Lids Locker Room, Johnston & Murphy, and on internet websites www.journeys.com, www.journeyskidz.com, www.shibyjourneys.com, www.undergroundbyjourneys.com, www.schuh.co.uk, www.johnstonmurphy.com, www.lids.com, www.lids.ca, www.lidslockerroom.com, www.lidsteamsports.com, www.lidsclubhouse.com ,www.suregripfootwear.com and www.dockersshoes.com. The Company's Lids Sports Group division operates the Lids headwear stores and the lids.com website, the Lids Locker Room and other team sports fan shops and single team clubhouse stores, and the Lids Team Sports team dealer business. In addition, Genesco sells wholesale footwear under its Johnston & Murphy brand, the licensed Dockers brand, SureGrip, and other brands. For more information on Genesco and its operating divisions, please visit www.genesco.com.
|
| | | | | | | | | | | | | | | |
| GENESCO INC. |
| | | | | | | | |
| Consolidated Earnings Summary |
| | Three Months Ended | | | Six Months Ended | |
| | July 28, |
| | July 30, |
| | July 28, |
| | July 30, |
|
| In Thousands | 2012 |
| | 2011 |
| | 2012 |
| | 2011 |
|
| Net sales | $ | 543,522 |
| | $ | 470,591 |
| | $ | 1,143,666 |
| | $ | 952,093 |
|
| Cost of sales | 269,294 |
| | 233,307 |
| | 560,135 |
| | 467,267 |
|
| Selling and administrative expenses* | 256,869 |
| | 235,286 |
| | 530,030 |
| | 456,059 |
|
| Asset impairments and other, net | 404 |
| | 347 |
| | 539 |
| | 1,591 |
|
| Earnings from operations* | 16,955 |
| | 1,651 |
| | 52,962 |
| | 27,176 |
|
| Interest expense, net | 1,207 |
| | 1,081 |
| | 2,324 |
| | 1,595 |
|
| Earnings from continuing operations | | | | | | | |
| before income taxes | 15,748 |
| | 570 |
| | 50,638 |
| | 25,581 |
|
| | | | | | | | |
| Income tax expense | 5,187 |
| | 220 |
| | 19,286 |
| | 10,256 |
|
| Earnings from continuing operations | 10,561 |
| | 350 |
| | 31,352 |
| | 15,325 |
|
| | | | | | | | |
| Provision for discontinued operations | (41 | ) | | (742 | ) | | (218 | ) | | (924 | ) |
| Net Earnings (Loss) | $ | 10,520 |
| | $ | (392 | ) | | $ | 31,134 |
| | $ | 14,401 |
|
*Includes $7.8 million of acquisition related expenses for the three and six months ended July 30, 2011.
|
| | | | | | | | | | | | | | | |
| Earnings Per Share Information |
| | Three Months Ended | | | Six Months Ended | |
| | July 28, |
| | July 30, |
| | July 28, |
| | July 30, |
|
| In Thousands (except per share amounts) | 2012 |
| | 2011 |
| | 2012 |
| | 2011 |
|
| Preferred dividend requirements | $ | 35 |
| | $ | 49 |
| | $ | 81 |
| | $ | 98 |
|
| | | | | | | | |
| Average common shares - Basic EPS | 23,778 |
| | 23,126 |
| | 23,687 |
| | 23,033 |
|
| | | | | | | | |
| Basic earnings (loss) per share: | | | | | | | |
| Before discontinued operations | $ | 0.44 |
| | $ | 0.01 |
| | $ | 1.32 |
| | $ | 0.66 |
|
| Net earnings (loss) | $ | 0.44 |
| | $ | (0.02 | ) | | $ | 1.31 |
| | $ | 0.62 |
|
| | | | | | | | |
| Average common and common | | | | | | | |
| equivalent shares - Diluted EPS | 24,123 |
| | 23,635 |
| | 24,168 |
| | 23,588 |
|
| | | | | | | | |
| Diluted earnings (loss) per share: | | | | | | | |
| Before discontinued operations | $ | 0.44 |
| | $ | 0.01 |
| | $ | 1.29 |
| | $ | 0.65 |
|
| Net earnings (loss) | $ | 0.43 |
| | $ | (0.02 | ) | | $ | 1.29 |
| | $ | 0.61 |
|
|
| | | | | | | | | | | | | | | |
| GENESCO INC. |
| | | | | | | | |
| Consolidated Earnings Summary |
| | Three Months Ended | | | Six Months Ended | |
| | July 28, |
| | July 30, |
| | July 28, |
| | July 30, |
|
| In Thousands | 2012 |
| | 2011 |
| | 2012 |
| | 2011 |
|
| Sales: | | | | | | | |
| Journeys Group | $ | 209,439 |
| | $ | 194,693 |
| | $ | 473,279 |
| | $ | 429,210 |
|
| Schuh Group | 81,156 |
| | 33,973 |
| | 151,468 |
| | 33,973 |
|
| Lids Sports Group | 181,879 |
| | 177,523 |
| | 365,015 |
| | 347,199 |
|
| Johnston & Murphy Group | 48,279 |
| | 45,571 |
| | 99,692 |
| | 93,622 |
|
| Licensed Brands | 22,256 |
| | 18,518 |
| | 53,522 |
| | 47,468 |
|
| Corporate and Other | 513 |
| | 313 |
| | 690 |
| | 621 |
|
| Net Sales | $ | 543,522 |
| | $ | 470,591 |
| | $ | 1,143,666 |
| | $ | 952,093 |
|
| Operating Income (Loss): | | | | | | | |
| Journeys Group | $ | 2,065 |
| | $ | (3,875 | ) | | $ | 27,347 |
| | $ | 13,583 |
|
| Schuh Group (1) | (545 | ) | | (77 | ) | | (3,496 | ) | | (77 | ) |
| Lids Sports Group | 20,571 |
| | 18,106 |
| | 39,739 |
| | 32,110 |
|
| Johnston & Murphy Group | 1,814 |
| | 2,155 |
| | 5,823 |
| | 5,050 |
|
| Licensed Brands | 1,427 |
| | 994 |
| | 4,792 |
| | 4,298 |
|
| Corporate and Other (2) | (8,377 | ) | | (15,652 | ) | | (21,243 | ) | | (27,788 | ) |
| Earnings from operations | 16,955 |
| | 1,651 |
| | 52,962 |
| | 27,176 |
|
| Interest, net | 1,207 |
| | 1,081 |
| | 2,324 |
| | 1,595 |
|
| Earnings from continuing operations | | | | | | | |
| before income taxes | 15,748 |
| | 570 |
| | 50,638 |
| | 25,581 |
|
| Income tax expense | 5,187 |
| | 220 |
| | 19,286 |
| | 10,256 |
|
| Earnings from continuing operations | 10,561 |
| | 350 |
| | 31,352 |
| | 15,325 |
|
| | | | | | | | |
| Provision for discontinued operations | (41 | ) | | (742 | ) | | (218 | ) | | (924 | ) |
| Net Earnings (Loss) | $ | 10,520 |
| | $ | (392 | ) | | $ | 31,134 |
| | $ | 14,401 |
|
(1)Includes $2.9 million and $5.9 million in deferred payments related to the Schuh acquisition in the second quarter and first six months ended July 28, 2012, respectively, and $1.4 million for each of the second quarter and six months ended July 30, 2011.
(2)Includes a $0.4 million charge and a $0.5 million charge in the second quarter and first six months of Fiscal 2013, respectively, primarily for asset impairments. Includes a $0.4 million charge in the second quarter of Fiscal 2012 primarily for asset impairments and includes $1.6 million of other charges in the first six months of Fiscal 2012 which includes $1.1 million for asset impairments, $0.4 million for network intrusion expenses and $0.1 million for other legal matters. The second quarter and first six months of Fiscal 2012 also included $6.4 million of acquisition related expenses.
|
| | | | | | | |
| GENESCO INC. |
| | | | |
| Consolidated Balance Sheet |
| | July 28, |
| | July 30, |
|
| In Thousands | 2012 |
| | 2011 |
|
| Assets | | | |
| Cash and cash equivalents | $ | 47,222 |
| | $ | 35,582 |
|
| Accounts receivable | 45,709 |
| | 43,305 |
|
| Inventories | 555,626 |
| | 474,951 |
|
| Other current assets | 80,675 |
| | 81,046 |
|
| Total current assets | 729,232 |
| | 634,884 |
|
| Property and equipment | 231,528 |
| | 229,317 |
|
| Other non-current assets | 420,198 |
| | 396,680 |
|
| Total Assets | $ | 1,380,958 |
| | $ | 1,260,881 |
|
| Liabilities and Equity | | | |
| Accounts payable | $ | 212,938 |
| | $ | 197,653 |
|
| Other current liabilities | 154,949 |
| | 126,809 |
|
| Total current liabilities | 367,887 |
| | 324,462 |
|
| Long-term debt | 95,001 |
| | 159,406 |
|
| Other long-term liabilities | 180,338 |
| | 123,897 |
|
| Equity | 737,732 |
| | 653,116 |
|
| Total Liabilities and Equity | $ | 1,380,958 |
| | $ | 1,260,881 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| GENESCO INC. |
| | | | | | | | | | | | | | | | | | |
| Retail Units Operated - Six Months Ended July 28, 2012 | | | | | | | | | | |
| | Balance |
| | Acquisi- |
| | | | | | Balance |
| | Acquisi- |
| | | | | | Balance |
|
| | 1/29/2011 |
| | tions |
| | Open |
| | Close |
| | 1/28/2012 |
| | tions |
| | Open |
| | Close |
| | 7/28/2012 |
|
| Journeys Group | 1,168 |
| | — |
| | 18 |
| | 32 |
| | 1,154 |
| | — |
| | 12 |
| | 19 |
| | 1,147 |
|
| Journeys | 813 |
| | — |
| | 14 |
| | 15 |
| | 812 |
| | — |
| | 8 |
| | 10 |
| | 810 |
|
| Underground by Journeys | 151 |
| | — |
| | — |
| | 14 |
| | 137 |
| | — |
| | — |
| | 4 |
| | 133 |
|
| Journeys Kidz | 149 |
| | — |
| | 4 |
| | 1 |
| | 152 |
| | — |
| | 3 |
| | 3 |
| | 152 |
|
| Shi by Journeys | 55 |
| | — |
| | — |
| | 2 |
| | 53 |
| | — |
| | 1 |
| | 2 |
| | 52 |
|
| Schuh Group | — |
| | 75 |
| | 6 |
| | 3 |
| | 78 |
| | — |
| | 5 |
| | — |
| | 83 |
|
| Schuh UK | — |
| | 51 |
| | 6 |
| | 1 |
| | 56 |
| | — |
| | 5 |
| | — |
| | 61 |
|
| Schuh ROI | — |
| | 8 |
| | — |
| | — |
| | 8 |
| | — |
| | — |
| | — |
| | 8 |
|
| Schuh Concessions | — |
| | 16 |
| | — |
| | 2 |
| | 14 |
| | — |
| | — |
| | — |
| | 14 |
|
| Lids Sports Group | 985 |
| | 10 |
| | 40 |
| | 33 |
| | 1,002 |
| | 12 |
| | 18 |
| | 11 |
| | 1,021 |
|
| Johnston & Murphy Group | 156 |
| | — |
| | 6 |
| | 9 |
| | 153 |
| | — |
| | 2 |
| | 2 |
| | 153 |
|
| Shops | 111 |
| | — |
| | 1 |
| | 9 |
| | 103 |
| | — |
| | 2 |
| | 2 |
| | 103 |
|
| Factory Outlets | 45 |
| | — |
| | 5 |
| | — |
| | 50 |
| | — |
| | — |
| | — |
| | 50 |
|
| Total Retail Units | 2,309 |
| | 85 |
| | 70 |
| | 77 |
| | 2,387 |
| | 12 |
| | 37 |
| | 32 |
| | 2,404 |
|
|
| | | | | | | | | | | | | | |
| Retail Units Operated - Three Months Ended July 28, 2012 |
| | Balance |
| | Acquisi- |
| | | | | | Balance |
|
| | 4/28/2012 |
| | tions |
| | Open |
| | Close |
| | 7/28/2012 |
|
| Journeys Group | 1,154 |
| | — |
| | 3 |
| | 10 |
| | 1,147 |
|
| Journeys | 814 |
| | — |
| | 2 |
| | 6 |
| | 810 |
|
| Underground by Journeys | 135 |
| | — |
| | — |
| | 2 |
| | 133 |
|
| Journeys Kidz | 152 |
| | — |
| | 1 |
| | 1 |
| | 152 |
|
| Shi by Journeys | 53 |
| | — |
| | — |
| | 1 |
| | 52 |
|
| Schuh Group | 79 |
| | — |
| | 4 |
| | — |
| | 83 |
|
| Schuh UK | 57 |
| | — |
| | 4 |
| | — |
| | 61 |
|
| Schuh ROI | 8 |
| | — |
| | — |
| | — |
| | 8 |
|
| Schuh Concessions | 14 |
| | — |
| | — |
| | — |
| | 14 |
|
| Lids Sports Group | 1,001 |
| | 12 |
| | 12 |
| | 4 |
| | 1,021 |
|
| Johnston & Murphy Group | 152 |
| | — |
| | 2 |
| | 1 |
| | 153 |
|
| Shops | 102 |
| | — |
| | 2 |
| | 1 |
| | 103 |
|
| Factory Outlets | 50 |
| | — |
| | — |
| | — |
| | 50 |
|
| Total Retail Units | 2,386 |
| | 12 |
| | 21 |
| | 15 |
| | 2,404 |
|
|
| | | | | | | | | | | |
| Constant Store Sales | | | | | | | |
| | Three Months Ended | | | Six Months Ended | |
| | July 28, |
| | July 30, |
| | July 28, |
| | July 30, |
|
| | 2012 |
| | 2011 |
| | 2012 |
| | 2011 |
|
| Journeys Group | 6 | % | | 15 | % | | 9 | % | | 14 | % |
| Schuh Group* | 9 | % | | — | | 9 | % | | — |
| Lids Sports Group | 2 | % | | 12 | % | | 3 | % | | 14 | % |
| Johnston & Murphy Group | 2 | % | | 17 | % | | 3 | % | | 13 | % |
| Total Constant Store Sales | 4 | % | | 14 | % | | 7 | % | | 14 | % |
'*One month ended July 28, 2012.
Schedule B
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Earnings from Continuing Operations |
| Three Months Ended July 28, 2012 and July 30, 2011 |
| | | | | |
| | | Impact on | | Impact on |
| | 3 mos | Diluted | 3 mos | Diluted |
| In Thousands (except per share amounts) | July 2012 | EPS | July 2011 | EPS |
| Earnings from continuing operations, as reported | $ | 10,561 |
| $ | 0.44 |
| $ | 350 |
| $ | 0.01 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Impairment charges | 248 |
| 0.01 |
| 191 |
| 0.01 |
|
| Acquisition expenses | — |
| — |
| 5,422 |
| 0.23 |
|
| Deferred payment - Schuh acquisition | 2,928 |
| 0.12 |
| 1,419 |
| 0.06 |
|
| Network intrusion expenses | 9 |
| — |
| 20 |
| — |
|
| Lower effective tax rate | (1,643 | ) | (0.07 | ) | (2,209 | ) | (0.09 | ) |
| | | | | |
| Adjusted earnings from continuing operations (2) | $ | 12,103 |
| $ | 0.50 |
| $ | 5,193 |
| $ | 0.22 |
|
| | | | | |
(1) All adjustments are net of tax where applicable. The tax rate for the second quarter of Fiscal 2013 is 36.0% excluding a FIN 48 discrete item of $0.1 million. The tax rate for the second quarter of Fiscal 2012 is 39.0% excluding a FIN 48 discrete item of $0.1 million.
(2) Reflects 24.1 million share count for Fiscal 2013 and 23.6 million share count for Fiscal 2012 which includes common stock equivalents in both years.
The Company believes that disclosure of earnings and earnings per share from continuing operations adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results.
|
| | | | | | |
| Schuh Group |
| Adjustments to Reported Operating Income (Loss) |
| Three Months Ended July 28, 2012 and July 30, 2011 |
| | | |
| | 3 mos | 3 mos |
| In Thousands | July 2012 | July 2011 |
| Operating loss | $ | (545 | ) | $ | (77 | ) |
| | | |
| Adjustments: | | |
| Deferred payment - Schuh acquisition | 2,928 |
| 1,419 |
|
| | | |
| Adjusted operating income | $ | 2,383 |
| $ | 1,342 |
|
Schedule B
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Earnings from Continuing Operations |
| Six Months Ended July 28, 2012 and July 30, 2011 |
| | | | | |
| | | Impact on | | Impact on |
| | 6 mos | Diluted | 6 mos | Diluted |
| In Thousands (except per share amounts) | July 2012 | EPS | July 2011 | EPS |
| Earnings from continuing operations, as reported | $ | 31,352 |
| $ | 1.29 |
| $ | 15,325 |
| $ | 0.65 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Impairment charges | 277 |
| 0.01 |
| 642 |
| 0.03 |
|
| Acquisition expenses | — |
| — |
| 5,422 |
| 0.23 |
|
| Deferred payment - Schuh acquisition | 5,883 |
| 0.25 |
| 1,419 |
| 0.06 |
|
| Other legal matters | — |
| — |
| 60 |
| — |
|
| Network intrusion expenses | 65 |
| — |
| 261 |
| 0.01 |
|
| Lower effective tax rate | (1,655 | ) | (0.07 | ) | (2,196 | ) | (0.1 | ) |
| | | | | |
| Adjusted earnings from continuing operations (2) | $ | 35,922 |
| $ | 1.48 |
| $ | 20,933 |
| $ | 0.88 |
|
(1) All adjustments are net of tax where applicable. The tax rate for the first six months of Fiscal 2013 is 36.7% excluding a FIN 48 discrete item of $0.2 million. The tax rate for the first six months of Fiscal 2012 is 39.5% excluding a FIN 48 discrete item of $0.2 million.
(2) Reflects 24.2 million share count for Fiscal 2013 and 23.6 million share count for Fiscal 2012 which includes common stock equivalents in both years.
The Company believes that disclosure of earnings and earnings per share from continuing operations adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results.
|
| | | | | | |
| Schuh Group |
| Adjustments to Reported Operating Income (Loss) |
| Six Months Ended July 28, 2012 and July 30, 2011 |
| | 3 mos | 3 mos |
| In Thousands | July 2012 | July 2011 |
| Operating loss | $ | (3,496 | ) | $ | (77 | ) |
| | | |
| Adjustments: | | |
| Deferred payment - Schuh acquisition | 5,883 |
| 1,419 |
|
| | | |
| Adjusted operating income | $ | 2,387 |
| $ | 1,342 |
|
Schedule B
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Forecasted Earnings from Continuing Operations |
| Fiscal Year Ending February 2, 2013 |
| | | | | |
| In Thousands (except per share amounts) | High Guidance | Low Guidance |
| | Fiscal 2013 | Fiscal 2013 |
| Forecasted earnings from continuing operations | $ | 107,674 |
| $ | 4.46 |
| $ | 104,946 |
| $ | 4.34 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Impairment | 1,247 |
| 0.05 |
| 1,247 |
| 0.05 |
|
| Deferred payment - Schuh acquisition | 11,883 |
| 0.49 |
| 11,883 |
| 0.49 |
|
| | | | | |
| Adjusted forecasted earnings from continuing operations (2) | $ | 120,804 |
| $ | 5.00 |
| $ | 118,076 |
| $ | 4.88 |
|
(1) All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2013 is approximately
37% excluding a FIN 48 discrete item of $0.4 million.
(2) Reflects 24.2 million share count for Fiscal 2013 which includes common stock equivalents.
This reconciliation reflects estimates and current expectations of future results. Actual results may vary materially from these expectations and estimates, for reasons including those included in the discussion of forward-looking statements elsewhere in this release. The Company disclaims any obligation to update such expectations and estimates.
