Financial Contact: James S. Gulmi (615) 367-8325
Media Contact: Claire S. McCall (615) 367-8283
GENESCO REPORTS THIRD QUARTER FISCAL 2014 RESULTS
NASHVILLE, Tenn., Dec. 6, 2013 --- Genesco Inc. (NYSE:GCO) today reported earnings from continuing operations for the third quarter ended November 2, 2013, of $27.8 million, or $1.18 per diluted share, compared to earnings from continuing operations of $42.2 million, or $1.76 per diluted share, for the third quarter ended October 27, 2012. Fiscal 2014 third quarter results reflect pretax items of $8.5 million, or $0.25 per diluted share after tax, including $4.0 million of expenses related to the change in accounting for deferred bonuses under the Company’s EVA Incentive Plan announced by the Company in September 2013, $3.0 million of expenses related to deferred purchase price payments in connection with the acquisition of Schuh Group Limited which are required to be expensed as compensation because the payment is contingent upon the payees' continued employment, and $1.5 million for network intrusion expenses, asset impairment charges and other legal matters. Fiscal 2013 third quarter results reflect net pretax items of $1.5 million, or $0.08 per diluted share after tax, including a reduction in expenses of $1.8 million related to the change in accounting for deferred bonuses under the EVA Incentive Plan offset by compensation expense related to deferred purchase price payments in connection with the acquisition of Schuh Group Limited, asset impairments and other legal matters, decreased by tax rate adjustments of $0.40 per diluted share.
Adjusted for the items described above in both periods, earnings from continuing operations were $33.8 million, or $1.43 per diluted share, for the third quarter of Fiscal 2014, compared to earnings from continuing operations of $34.5 million, or $1.44 per diluted share, for the third quarter of Fiscal 2013. For consistency with Fiscal 2014'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. 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 third quarter of Fiscal 2014 increased 0.3% to $666.3 million from $664.5 million in the third quarter of Fiscal 2013. Comparable store sales in the third quarter of Fiscal 2014 decreased by 1% for the Company, with a 5% increase in the Lids Sports Group, a 2% decrease in the Journeys Group, a 10% decrease in the Schuh Group, and a 7% increase in the Johnston & Murphy Group.
Robert J. Dennis, Genesco chairman, president and chief executive officer, said, “As we expected, easier comparisons in our U.S.-based retail businesses as the third quarter progressed allowed for a modest improvement in consolidated comparable sales relative to recent quarters and overall results in line with our expectations.
“Comparable sales for the fourth quarter to date through Tuesday, December 3, were flat. Because the retail environment remains somewhat choppy and the calendar shifts make meaningful comparisons difficult, we are adopting a slightly more cautious outlook for the balance of the year.
“We now expect adjusted diluted earnings per share to be in the range of $5.10 to $5.20, compared to Fiscal 2013's adjusted earnings per share of $5.06. Consistent with our previous guidance, these expectations do not include non-cash asset impairments, network intrusion expenses and other legal
matters or the net gain on a Journeys New York City store lease termination reported in the second quarter. We estimate that these items will be in the range of $1.0 million to $2.0 million pretax, or $0.03 to $0.05 per share, after tax, in Fiscal 2014. They also do not reflect compensation expense associated with the Schuh deferred purchase price as described above, which is currently estimated at approximately $11.5 million, or $0.49 per diluted share, or expense related to the change in accounting for the Company’s EVA Incentive Plan bonus accruals, which we believe could range as high as $14.1 million pretax, or $0.37 per share, after tax, for the full year. This guidance assumes a comparable sales decrease in the low single digit range for the full fiscal year, including a low single digit increase in the fourth quarter."
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, “We continue to focus on successfully navigating the current headwinds while staying the course on our long-term strategic direction. We recently updated our 5-year plan and now expect annual sales to hit $3.9 billion and operating margins to be approximately 9% to 9.5% by Fiscal 2018. We remain confident in our strategic position and our ability to achieve our growth targets and generate increased value for our shareholders.”
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 December 6, 2013 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, expenses 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 earn-out bonus potentially payable to Schuh management based on the achievement of certain performance objectives; the expense related to the change in accounting for the Company’s EVA Incentive Plan bonus accruals; the costs of responding to and liability in connection with the network intrusion announced in December 2010; the timing and amount of non-cash asset impairments, potentially including fixed assets in retail stores and intangible assets of acquired businesses; 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 recent lease negotiations, 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; variations from expected pension-related charges caused by conditions in the financial markets; disruptions in the Company’s information technology systems either by security breaches and incidents or by potential problems associated with the implementation of new or upgraded systems; and the outcome of litigation, investigations and environmental matters involving the Company. 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 2,525 retail stores and leased departments 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 Locker Room by Lids 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 | | Nine Months Ended | |
| | | Nov. 2, |
| | Oct. 27, |
| Nov. 2, |
| | Oct. 27, |
|
| In Thousands | | 2013 |
| | 2012 |
| 2013 |
| | 2012 |
|
| Net sales | | $ | 666,332 |
| | $ | 664,458 |
| $ | 1,832,466 |
| | $ | 1,808,124 |
|
| Cost of sales | | 334,171 |
| | 330,046 |
| 919,060 |
| | 893,747 |
|
| Selling and administrative expenses* | | 283,702 |
| | 279,847 |
| 829,506 |
| | 806,425 |
|
| Asset impairments and other, net | | 1,480 |
| | 357 |
| (4,331 | ) | | 896 |
|
| Earnings from operations | | 46,979 |
| | 54,208 |
| 88,231 |
| | 107,056 |
|
| Interest expense, net | | 1,190 |
| | 1,301 |
| 3,369 |
| | 3,625 |
|
| Earnings from continuing operations | | | | | | | |
| before income taxes | | 45,789 |
| | 52,907 |
| 84,862 |
| | 103,431 |
|
| | | | | | | | |
| Income tax expense | | 17,993 |
| | 10,686 |
| 34,092 |
| | 29,447 |
|
| Earnings from continuing operations | | 27,796 |
| | 42,221 |
| 50,770 |
| | 73,984 |
|
| | | | | | | | |
| Provision for discontinued operations | | (46 | ) | | (94 | ) | (270 | ) | | (312 | ) |
| Net Earnings | | $ | 27,750 |
| | $ | 42,127 |
| $ | 50,500 |
| | $ | 73,672 |
|
*Includes $3.0 million and $8.7 million in deferred payments related to the Schuh acquisition in the third quarter and first nine months ended November 2, 2013, respectively, and $3.0 million and $8.9 million for the third quarter and first nine months ended October 27, 2012, respectively.
|
| | | | | | | | | | | | | | | |
| Earnings Per Share Information |
| | | Three Months Ended | | Nine Months Ended | |
| | | Nov. 2, |
| | Oct. 27, |
| Nov. 2, |
| | Oct. 27, |
|
| In Thousands (except per share amounts) | | 2013 |
| | 2012 |
| 2013 |
| | 2012 |
|
| Preferred dividend requirements | | $ | — |
| | $ | 33 |
| $ | 33 |
| | $ | 114 |
|
| | | | | | | | |
| Average common shares - Basic EPS | | 23,329 |
| | 23,584 |
| 23,299 |
| | 23,653 |
|
| | | | | | | | |
| Basic earnings per share: | | | | | | | |
| From continuing operations | | $ | 1.19 |
| | $ | 1.79 |
| $ | 2.18 |
| | $ | 3.12 |
|
| Net earnings | | $ | 1.19 |
| | $ | 1.78 |
| $ | 2.17 |
| | $ | 3.11 |
|
| | | | | | | | |
| Average common and common | | | | | | | |
| equivalent shares - Diluted EPS | | 23,604 |
| | 23,996 |
| 23,619 |
| | 24,121 |
|
| | | | | | | | |
| Diluted earnings per share: | | | | | | | |
| From continuing operations | | $ | 1.18 |
| | $ | 1.76 |
| $ | 2.15 |
| | $ | 3.07 |
|
| Net earnings | | $ | 1.18 |
| | $ | 1.76 |
| $ | 2.14 |
| | $ | 3.05 |
|
|
| | | | | | | | | | | | | | | |
| GENESCO INC. |
| | | | | | | | |
| Consolidated Earnings Summary |
| | | Three Months Ended | | Nine Months Ended | |
| | | Nov. 2, |
| | Oct. 27, |
| Nov. 2, |
| | Oct. 27, |
|
| In Thousands | | 2013 |
| | 2012 |
| 2013 |
| | 2012 |
|
| Sales: | | | | | | | |
| Journeys Group | | $ | 281,093 |
| | $ | 300,718 |
| $ | 760,707 |
| | $ | 773,997 |
|
| Schuh Group | | 92,556 |
| | 92,250 |
| 242,988 |
| | 243,718 |
|
| Lids Sports Group | | 199,154 |
| | 185,737 |
| 569,515 |
| | 550,752 |
|
| Johnston & Murphy Group | | 61,689 |
| | 53,079 |
| 173,372 |
| | 152,771 |
|
| Licensed Brands | | 31,630 |
| | 32,450 |
| 84,854 |
| | 85,972 |
|
| Corporate and Other | | 210 |
| | 224 |
| 1,030 |
| | 914 |
|
| Net Sales | | $ | 666,332 |
| | $ | 664,458 |
| $ | 1,832,466 |
| | $ | 1,808,124 |
|
| Operating Income (Loss): | | | | | | | |
| Journeys Group | | $ | 32,268 |
| | $ | 38,456 |
| $ | 56,198 |
| | $ | 67,651 |
|
| Schuh Group (1) | | 1,945 |
| | 3,602 |
| (4,131 | ) | | 1,713 |
|
| Lids Sports Group | | 11,996 |
| | 18,057 |
| 35,517 |
| | 56,785 |
|
| Johnston & Murphy Group | | 4,833 |
| | 3,149 |
| 10,432 |
| | 8,950 |
|
| Licensed Brands | | 4,112 |
| | 3,731 |
| 8,504 |
| | 8,530 |
|
| Corporate and Other (2) | | (8,175 | ) | | (12,787 | ) | (18,289 | ) | | (36,573 | ) |
| Earnings from operations | | 46,979 |
| | 54,208 |
| 88,231 |
| | 107,056 |
|
| Interest, net | | 1,190 |
| | 1,301 |
| 3,369 |
| | 3,625 |
|
| Earnings from continuing operations | | | | | | | |
| before income taxes | | 45,789 |
| | 52,907 |
| 84,862 |
| | 103,431 |
|
| Income tax expense | | 17,993 |
| | 10,686 |
| 34,092 |
| | 29,447 |
|
| Earnings from continuing operations | | 27,796 |
| | 42,221 |
| 50,770 |
| | 73,984 |
|
| | | | | | | | |
| Provision for discontinued operations | | (46 | ) | | (94 | ) | (270 | ) | | (312 | ) |
| Net Earnings | | $ | 27,750 |
| | $ | 42,127 |
| $ | 50,500 |
| | $ | 73,672 |
|
(1)Includes $3.0 million and $8.7 million in deferred payments related to the Schuh acquisition in the third quarter and first nine months ended November 2, 2013, respectively, and $3.0 million and $8.9 million for the third quarter and first nine months ended October 27, 2012, respectively.
(2)Includes a $1.5 million charge in the third quarter of Fiscal 2014 which includes $0.8 million for network intrusion expenses, $0.4 million for asset impairments and $0.3 million for other legal matters. Includes $4.3 million income for the first nine months of Fiscal 2014 which includes an $8.3 million gain on a lease termination, partially offset by $1.8 million for asset impairments, $1.4 million for network intrusion expenses and $0.8 million for other legal matters. Includes a $0.4 million charge in the third quarter of Fiscal 2013 which includes $0.3 million for asset impairments and $0.1 million for other legal matters and includes a $0.9 million charge in the first nine months of Fiscal 2013 which includes $0.7 million for asset impairments, $0.1 million for network intrusion expenses and $0.1 million for other legal matters.
|
| | | | | | | |
| GENESCO INC. |
| | | | |
| Consolidated Balance Sheet |
| | Nov. 2, |
| | Oct. 27, |
|
| In Thousands | 2013 |
| | 2012 |
|
| Assets | | | |
| Cash and cash equivalents | $ | 32,250 |
| | $ | 39,890 |
|
| Accounts receivable | 64,235 |
| | 61,006 |
|
| Inventories | 694,256 |
| | 600,251 |
|
| Other current assets | 78,820 |
| | 65,629 |
|
| Total current assets | 869,561 |
| | 766,776 |
|
| Property and equipment | 268,985 |
| | 239,499 |
|
| Other non-current assets | 407,257 |
| | 419,347 |
|
| Total Assets | $ | 1,545,803 |
| | $ | 1,425,622 |
|
| Liabilities and Equity | | | |
| Accounts payable | $ | 265,067 |
| | $ | 219,826 |
|
| Other current liabilities | 144,920 |
| | 158,395 |
|
| Total current liabilities | 409,987 |
| | 378,221 |
|
| Long-term debt | 92,361 |
| | 86,296 |
|
| Other long-term liabilities | 181,857 |
| | 172,182 |
|
| Equity | 861,598 |
| | 788,923 |
|
| Total Liabilities and Equity | $ | 1,545,803 |
| | $ | 1,425,622 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| GENESCO INC. |
| | | | | | | | | | | | | | | | | | |
| Retail Units Operated - Nine Months Ended November 2, 2013 | | | | | | | | | | |
| | Balance |
| | Acquisi- |
| | | | | | Balance |
| | Acquisi- | | | | | | Balance |
|
| | 1/28/2012 |
| | tions |
| | Open |
| | Close |
| | 2/2/2013 |
| | tions |
| | Open |
| | Close |
| | 11/2/2013 |
|
| Journeys Group | 1,154 |
| | — |
| | 32 |
| | 29 |
| | 1,157 |
| | — |
| | 23 |
| | 19 |
| | 1,161 |
|
| Journeys | 812 |
| | — |
| | 22 |
| | 14 |
| | 820 |
| | — |
| | 12 |
| | 9 |
| | 823 |
|
| Underground by Journeys | 137 |
| | — |
| | — |
| | 7 |
| | 130 |
| | — |
| | — |
| | 9 |
| | 121 |
|
| Journeys Kidz | 152 |
| | — |
| | 9 |
| | 5 |
| | 156 |
| | — |
| | 11 |
| | 1 |
| | 166 |
|
| Shi by Journeys | 53 |
| | — |
| | 1 |
| | 3 |
| | 51 |
| | — |
| | — |
| | — |
| | 51 |
|
| Schuh Group | 78 |
| | — |
| | 16 |
| | 2 |
| | 92 |
| | — |
| | 25 |
| | 20 |
| | 97 |
|
| Schuh UK* | 56 |
| | — |
| | 15 |
| | 1 |
| | 70 |
| | — |
| | 25 |
| | 8 |
| | 87 |
|
| Schuh ROI | 8 |
| | — |
| | 1 |
| | — |
| | 9 |
| | — |
| | — |
| | — |
| | 9 |
|
| Schuh Concessions* | 14 |
| | — |
| | — |
| | 1 |
| | 13 |
| | — |
| | — |
| | 12 |
| | 1 |
|
| Lids Sports Group | 1,002 |
| | 33 |
| | 47 |
| | 29 |
| | 1,053 |
| | 7 |
| | 77 |
| | 23 |
| | 1,114 |
|
| Johnston & Murphy Group | 153 |
| | — |
| | 9 |
| | 5 |
| | 157 |
| | — |
| | 10 |
| | 2 |
| | 165 |
|
| Shops | 103 |
| | — |
| | 4 |
| | 5 |
| | 102 |
| | — |
| | 5 |
| | 2 |
| | 105 |
|
| Factory Outlets | 50 |
| | — |
| | 5 |
| | — |
| | 55 |
| | — |
| | 5 |
| | — |
| | 60 |
|
| Total Retail Units | 2,387 |
| | 33 |
| | 104 |
| | 65 |
| | 2,459 |
| | 7 |
| | 135 |
| | 64 |
| | 2,537 |
|
| Permanent Units* | | | | | | | | | 2,446 |
| | 7 |
| | 125 |
| | 46 |
| | 2,532 |
|
|
| | | | | | | | | | | | | | |
| Retail Units Operated - Three Months Ended November 2, 2013 | | | | |
| | Balance |
| | Acquisi- |
| | | | | | Balance |
|
| | 8/3/2013 |
| | tions |
| | Open |
| | Close |
| | 11/2/2013 |
|
| Journeys Group | 1,159 |
| | — |
| | 5 |
| | 3 |
| | 1,161 |
|
| Journeys | 822 |
| | — |
| | 2 |
| | 1 |
| | 823 |
|
| Underground by Journeys | 123 |
| | — |
| | — |
| | 2 |
| | 121 |
|
| Journeys Kidz | 163 |
| | — |
| | 3 |
| | — |
| | 166 |
|
| Shi by Journeys | 51 |
| | — |
| | — |
| | — |
| | 51 |
|
| Schuh Group | 95 |
| | — |
| | 6 |
| | 4 |
| | 97 |
|
| Schuh UK* | 84 |
| | — |
| | 6 |
| | 3 |
| | 87 |
|
| Schuh ROI | 9 |
| | — |
| | — |
| | — |
| | 9 |
|
| Schuh Concessions* | 2 |
| | — |
| | — |
| | 1 |
| | 1 |
|
| Lids Sports Group | 1,071 |
| | — |
| | 49 |
| | 6 |
| | 1,114 |
|
| Johnston & Murphy Group | 163 |
| | — |
| | 2 |
| | — |
| | 165 |
|
| Shops | 104 |
| | — |
| | 1 |
| | — |
| | 105 |
|
| Factory Outlets | 59 |
| | — |
| | 1 |
| | — |
| | 60 |
|
| Total Retail Units | 2,488 |
| | — |
| | 62 |
| | 13 |
| | 2,537 |
|
| Permanent Units* | 2,479 |
| | — |
| | 62 |
| | 9 |
| | 2,532 |
|
*Excludes Schuh Concessions, which are expected to close this year and temporary "pop-up" locations.
|
| | | | | | | | | | | |
| Genesco Inc. |
| | | | | | | | |
| Comparable Sales (including same store and comparable direct sales) | | | | | | | |
| | | Three Months Ended | | Nine Months Ended | |
| | | Nov. 2, |
| | Oct. 27, |
| Nov. 2, |
| | Oct. 27, |
|
| | | 2013 |
| | 2012 |
| 2013 |
| | 2012 |
|
| Journeys Group | | (2 | )% | | 8 | % | (2 | )% | | 9 | % |
| Schuh Group | | (10 | )% | | 9 | % | (9 | )% | | 9 | % |
| Lids Sports Group | | 5 | % | | (5 | )% | (1 | )% | | 0 | % |
| Johnston & Murphy Group | | 7 | % | | 8 | % | 7 | % | | 5 | % |
| Total Comparable Sales | | (1 | )% | | 5 | % | (2 | )% | | 6 | % |
Schedule B
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Earnings from Continuing Operations |
| Third Quarter Ended November 2, 2013 and October 27, 2012 |
| | | | | |
| | | | | |
| | Third | Impact on | Third | Impact on |
| | Quarter | Diluted | Quarter | Diluted |
| In Thousands (except per share amounts) | Oct 2013 | EPS | Oct 2012 | EPS |
| Earnings from continuing operations, as reported | $ | 27,796 |
| $ | 1.18 |
| $ | 42,221 |
| $ | 1.76 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Impairment charges | 215 |
| 0.01 |
| 179 |
| 0.01 |
|
| Deferred payment - Schuh acquisition | 2,949 |
| 0.12 |
| 2,971 |
| 0.12 |
|
| Change in accounting for bonus awards | 2,541 |
| 0.11 |
| (1,160 | ) | (0.05 | ) |
| Other legal matters | 169 |
| 0.01 |
| 46 |
| — |
|
| Network intrusion expenses | 536 |
| 0.02 |
| — |
| — |
|
| Higher (lower) effective tax rate | (382 | ) | (0.02 | ) | (9,786 | ) | (0.4 | ) |
| | | | | |
| Adjusted earnings from continuing operations (2) | $ | 33,824 |
| $ | 1.43 |
| $ | 34,471 |
| $ | 1.44 |
|
| | | | | |
(1) All adjustments are net of tax where applicable. The tax rate for the third quarter of Fiscal 2014 is 37.6% excluding a FIN 48 discrete item of less than $0.1 million. The tax rate for the third quarter of Fiscal 2013 is 36.6% excluding a FIN 48 discrete item of less than $0.1 million.
(2) EPS reflects 23.6 million and 24.0 million share count for Fiscal 2014 and 2013, respectively, 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.
|
| | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Operating Income |
| Third Quarter Ended November 2, 2013 |
| | | | |
| | Three Months ended November 2, 2013 |
| | Operating | Bonus Adj | Adj Operating |
| In Thousands | Income | and Other | Income |
| Journeys Group | $ | 32,268 |
| $ | 968 |
| $ | 33,236 |
|
| Schuh Group* | 1,945 |
| 3,903 |
| 5,848 |
|
| Lids Sports Group | 11,996 |
| — |
| 11,996 |
|
| Johnston & Murphy Group | 4,833 |
| 10 |
| 4,843 |
|
| Licensed Brands | 4,112 |
| 4 |
| 4,116 |
|
| Corporate and Other | (8,175 | ) | 3,598 |
| (4,577 | ) |
| Total Operating Income | $ | 46,979 |
| $ | 8,483 |
| $ | 55,462 |
|
*Schuh Group adjustments include $3.0 million in deferred purchase price payments.
Schedule B
|
| | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Operating Income |
| Third Quarter Ended October 27, 2012 |
| | | | |
| | Three Months ended October 27, 2012 |
| | Operating | Bonus Adj | Adj Operating |
| In Thousands | Income | and Other | Income |
| Journeys Group | $ | 38,456 |
| $ | (1,383 | ) | $ | 37,073 |
|
| Schuh Group* | 3,602 |
| 2,078 |
| 5,680 |
|
| Lids Sports Group | 18,057 |
| 516 |
| 18,573 |
|
| Johnston & Murphy Group | 3,149 |
| 9 |
| 3,158 |
|
| Licensed Brands | 3,731 |
| (7 | ) | 3,724 |
|
| Corporate and Other | (12,787 | ) | 285 |
| (12,502 | ) |
| Total Operating Income | $ | 54,208 |
| $ | 1,498 |
| $ | 55,706 |
|
*Schuh Group adjustments include $3.0 million in deferred purchase price payments.
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Earnings from Continuing Operations |
| Nine Months Ended November 2, 2013 and October 27, 2012 |
| | | | | |
| | | Impact on | | Impact on |
| | 9 mos | Diluted | 9 mos | Diluted |
| In Thousands (except per share amounts) | Oct 2013 | EPS | Oct 2012 | EPS |
| Earnings from continuing operations, as reported | $ | 50,770 |
| $ | 2.15 |
| $ | 73,984 |
| $ | 3.07 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Impairment charges | 1,108 |
| 0.05 |
| 456 |
| 0.02 |
|
| Deferred payment - Schuh acquisition | 8,651 |
| 0.36 |
| 8,854 |
| 0.37 |
|
| Gain on lease termination | (2,077 | ) | (0.09 | ) | — |
| — |
|
| Change in accounting for bonus awards | 10,319 |
| 0.44 |
| (1,088 | ) | (0.05 | ) |
| Other legal matters | 471 |
| 0.02 |
| 46 |
| — |
|
| Network intrusion expenses | 896 |
| 0.04 |
| 65 |
| — |
|
| Higher (lower) effective tax rate | (877 | ) | (0.04 | ) | (11,922 | ) | (0.49 | ) |
| | | | | |
| Adjusted earnings from continuing operations (2) | $ | 69,261 |
| $ | 2.93 |
| $ | 70,395 |
| $ | 2.92 |
|
(1) All adjustments are net of tax where applicable. The tax rate for the first nine months of Fiscal 2014 is 37.3% excluding a FIN 48 discrete item of $0.1 million. The tax rate for the first nine months of Fiscal 2013 is 36.6% excluding a FIN 48 discrete item of $0.3 million.
(2) EPS reflects 23.6 million and 24.1 million share count for Fiscal 2014 and 2013, respectively, 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.
Schedule B
|
| | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Operating Income |
| Nine Months Ended November 2, 2013 |
| | | | |
| | Nine Months ended November 2, 2013 |
| | Operating | Bonus Adj | Adj Operating |
| In Thousands | Income | and Other | Income |
| Journeys Group* | $ | 56,198 |
| $ | 7,028 |
| $ | 63,226 |
|
| Schuh Group** | (4,131 | ) | 12,595 |
| 8,464 |
|
| Lids Sports Group | 35,517 |
| 1,676 |
| 37,193 |
|
| Johnston & Murphy Group | 10,432 |
| 23 |
| 10,455 |
|
| Licensed Brands | 8,504 |
| — |
| 8,504 |
|
| Corporate and Other* | (18,289 | ) | 4,441 |
| (13,848 | ) |
| Total Operating Income | $ | 88,231 |
| $ | 25,763 |
| $ | 113,994 |
|
*Journeys Group and Corporate adjustments include $3.5 million and $1.5 million, respectively, in bonus adjustments
resulting from the gain on a lease termination for a Journeys store in the second quarter.
**Schuh Group adjustments include $8.7 million in deferred purchase price payments.
|
| | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Operating Income |
| Nine Months Ended October 27, 2012 |
| | | | |
| | Nine Months ended October 27, 2012 |
| | Operating | Bonus Adj | Adj Operating |
| In Thousands | Income | and Other | Income |
| Journeys Group | $ | 67,651 |
| $ | (3,231 | ) | $ | 64,420 |
|
| Schuh Group* | 1,713 |
| 6,354 |
| 8,067 |
|
| Lids Sports Group | 56,785 |
| 1,527 |
| 58,312 |
|
| Johnston & Murphy Group | 8,950 |
| 31 |
| 8,981 |
|
| Licensed Brands | 8,530 |
| (14 | ) | 8,516 |
|
| Corporate and Other | (36,573 | ) | 3,367 |
| (33,206 | ) |
| Total Operating Income | $ | 107,056 |
| $ | 8,034 |
| $ | 115,090 |
|
*Schuh Group adjustments include $3.0 million in deferred purchase price payments.
Schedule B
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Forecasted Earnings from Continuing Operations |
| Fiscal Year Ending February 1, 2014 |
| | | | | |
| In Thousands (except per share amounts) | High Guidance | Low Guidance |
| | Fiscal 2014 | Fiscal 2014 |
| Forecasted earnings from continuing operations | $ | 101,039 |
| $ | 4.29 |
| $ | 99,304 |
| $ | 4.21 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Impairment/Gain on lease termination | 1,248 |
| 0.05 |
| 624 |
| 0.03 |
|
| Change in accounting for bonus awards | 8,808 |
| 0.37 |
| 8,808 |
| 0.37 |
|
| Deferred payment - Schuh acquisition | 11,540 |
| 0.49 |
| 11,540 |
| 0.49 |
|
| | | | | |
| Adjusted forecasted earnings from continuing operations (2) | $ | 122,635 |
| $ | 5.20 |
| $ | 120,276 |
| $ | 5.10 |
|
(1) All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2014 is approximately 37.6% excluding a FIN 48 discrete item of $0.1 million.
(2) EPS reflects 23.6 million share count for Fiscal 2014 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.
