Exhibit 99.1
| | |
| Financial Contact: | | James S. Gulmi (615) 367-8325 |
| Media Contact: | | Claire S. McCall (615) 367-8283 |
GENESCO REPORTS THIRD QUARTER FISCAL 2012 RESULTS
—Third Quarter Comparable Store Sales Increase 12%—
—Company Raises Fiscal 2012 Outlook—
NASHVILLE, Tenn., Nov. 22, 2011 — Genesco Inc. (NYSE:GCO) today reported earnings from continuing operations for the third quarter ended October 29, 2011, of $26.2 million, or $1.09 per diluted share, compared to earnings from continuing operations of $17.0 million, or $0.72 per diluted share, for the third quarter ended October 30, 2010. Fiscal 2012 third quarter results reflect pretax items of $3.4 million, or $0.12 per diluted share after tax, including compensation expense related to deferred purchase price payments in connection with the acquisition of Schuh Group Limited in June 2011, acquisition expenses and other legal matters. 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. Fiscal 2011 third quarter results were reduced by pretax items totaling $3.1 million, or $0.05 per diluted share after tax, primarily related to fixed asset impairments and purchase price accounting adjustments.
Adjusted for the items described above in both periods, earnings from continuing operations were $29.1 million, or $1.21 per diluted share, for the third quarter of Fiscal 2012, compared to earnings from continuing operations of $18.1 million, or $0.77 per diluted share, for the third quarter of Fiscal 2011. For consistency with Fiscal 2012’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. Since the compensation expense is a non-cash charge until the deferred purchase price is actually paid, the Company believes that earnings including such expense may not be fully reflective of the Company’s ongoing results or indicative of its prospects. 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 2012 increased 33% to $616.5 million from $464.8 million in the third quarter of Fiscal 2011. Comparable store sales in the third quarter of Fiscal
2012 increased by 12%. The Lids Sports Group’s comparable store sales increased by 8%, the Journeys Group increased by 15%, Johnston & Murphy Retail increased by 7%, and Underground Station increased by 14%.
Robert J. Dennis, chairman, president and chief executive officer of Genesco, said, “Our third quarter operating performance was exceptionally strong, highlighted by significant gains in sales and profitability. We were particularly encouraged by our 12% comparable store sales gain, which contributed to strong expense leverage for the quarter. The strength of our product assortments combined with the current fashion trends have us well positioned as we get set for our busiest selling period of the year.
“The fourth quarter has gotten off to a good start with comparable store sales up 11% through the first three weeks of November. While we do not expect to maintain comparable sales at this level for the balance of the quarter, we are optimistic about our ability to meaningfully expand our top and bottom line over the same period a year ago.”
Dennis also discussed the Company’s updated outlook. “Based on our third quarter performance, we are raising our Fiscal 2012 guidance. We now expect full year diluted earnings per share to be in the range of $3.64 to $3.69, which represents a 47% to 49% increase over last year’s earnings, up from our previous guidance range of $3.35 to $3.42. Consistent with previous guidance, these expectations do not include expected non-cash asset impairments and other charges, which are projected to total approximately $2.5 million to $3.5 million pretax, or $0.06 to $0.09 per share, after tax, in Fiscal 2012. They also do not reflect Schuh acquisition expenses and compensation expense associated with the Schuh deferred purchase price as described above, totaling approximately $13.8 million, or $0.54 per diluted share, for the full year. This guidance assumes comparable store sales of 10% to 11% 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 results through the first three quarters of Fiscal 2012 are well ahead of our initial expectations and have us set up to deliver a very strong year. They also represent a great start to our 5-year plan. I believe that we have the right people and strategies in place to drive our portfolio of businesses forward to achieve $3.1 billion in sales and operating margins of at least 9% by Fiscal 2016.”
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 November 22, 2011 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 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 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; 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 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; 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 2,380 retail stores throughout the U.S., Canada and the United Kingdom, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Schuh, Lids, Lids Locker Room, Johnston & Murphy, and Underground Station, and on internet websiteswww.journeys.com,www.journeyskidz.com,www.shibyjourneys.com,www.undergroundstation.com,www.schuh.co.uk,www.johnstonmurphy.com,www.dockersshoes.com,www.lids.com,www.lids.ca,www.lidslockerroom.com,www.keukafootwear.com andwww.lidsteamsports.com. The Company’s Lids Sports 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, Keuka, and other brands. For more information on Genesco and its operating divisions, please visitwww.genesco.com.
GENESCO INC.
Consolidated Earnings Summary
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
In Thousands | | October 29,
2011 | | | October 30,
2010 | | | October 29,
2011 | | | October 30,
2010 | |
Net sales | | $ | 616,525 | | | $ | 464,838 | | | $ | 1,568,618 | | | $ | 1,229,345 | |
Cost of sales | | | 304,373 | | | | 228,097 | | | | 771,640 | | | | 600,489 | |
Selling and administrative expenses | | | 265,895 | | | | 207,942 | | | | 721,954 | | | | 584,484 | |
Restructuring and other, net | | | 345 | | | | 2,120 | | | | 1,936 | | | | 6,564 | |
| | | | | | | | | | | | | | | | |
Earnings from operations* | | | 45,912 | | | | 26,679 | | | | 73,088 | | | | 37,808 | |
| | | | |
Interest expense, net | | | 1,869 | | | | 306 | | | | 3,464 | | | | 768 | |
| | | | | | | | | | | | | | | | |
Earnings from continuing operationsbefore income taxes | | | 44,043 | | | | 26,373 | | | | 69,624 | | | | 37,040 | |
| | | | |
Income tax expense | | | 17,882 | | | | 9,406 | | | | 28,138 | | | | 13,906 | |
| | | | | | | | | | | | | | | | |
Earnings from continuing operations | | | 26,161 | | | | 16,967 | | | | 41,486 | | | | 23,134 | |
| | | | |
Provision for discontinued operations | | | (73 | ) | | | (50 | ) | | | (997 | ) | | | (784 | ) |
| | | | | | | | | | | | | | | | |
Net Earnings | | $ | 26,088 | | | $ | 16,917 | | | $ | 40,489 | | | $ | 22,350 | |
| | | | | | | | | | | | | | | | |
| * | Includes $3.1 million and $10.9 million, respectively, of acquisition related expenses for the three and nine months ended October 29, 2011. |
Earnings Per Share Information
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
In Thousands (except per share amounts) | | October 29,
2011 | | | October 30,
2010 | | | October 29,
2011 | | | October 30,
2010 | |
Preferred dividend requirements | | $ | 49 | | | $ | 49 | | | $ | 147 | | | $ | 148 | |
| | | | |
Average common shares - Basic EPS | | | 23,407 | | | | 23,069 | | | | 23,158 | | | | 23,337 | |
| | | | |
Basic earnings per share: | | | | | | | | | | | | | | | | |
Before discontinued operations | | $ | 1.12 | | | $ | 0.73 | | | $ | 1.79 | | | $ | 0.98 | |
Net earnings | | $ | 1.11 | | | $ | 0.73 | | | $ | 1.74 | | | $ | 0.95 | |
| | | | |
Average common and common equivalent shares - Diluted EPS | | | 23,976 | | | | 23,562 | | | | 23,728 | | | | 23,770 | |
| | | | |
Diluted earnings per share: | | | | | | | | | | | | | | | | |
Before discontinued operations | | $ | 1.09 | | | $ | 0.72 | | | $ | 1.74 | | | $ | 0.97 | |
Net earnings | | $ | 1.09 | | | $ | 0.72 | | | $ | 1.70 | | | $ | 0.93 | |
GENESCO INC.
Consolidated Earnings Summary
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
In Thousands | | October 29,
2011 | | | October 30,
2010* | | | October 29,
2011 | | | October 30,
2010* | |
Sales: | | | | | | | | | | | | | | | | |
Journeys Group | | $ | 251,454 | | | $ | 215,976 | | | $ | 637,435 | | | $ | 550,834 | |
Underground Station Group | | | 22,704 | | | | 21,729 | | | | 65,933 | | | | 64,946 | |
Schuh Group | | | 78,212 | | | | — | | | | 112,185 | | | | — | |
Lids Sports Group | | | 185,547 | | | | 152,703 | | | | 532,746 | | | | 405,273 | |
Johnston & Murphy Group | | | 48,146 | | | | 45,399 | | | | 141,768 | | | | 129,001 | |
Licensed Brands | | | 30,259 | | | | 28,663 | | | | 77,727 | | | | 78,319 | |
Corporate and Other | | | 203 | | | | 368 | | | | 824 | | | | 972 | |
| | | | | | | | | | | | | | | | |
Net Sales | | $ | 616,525 | | | $ | 464,838 | | | $ | 1,568,618 | | | $ | 1,229,345 | |
| | | | | | | | | | | | | | | | |
Operating Income (Loss): | | | | | | | | | | | | | | | | |
Journeys Group | | $ | 28,377 | | | $ | 21,475 | | | $ | 43,714 | | | $ | 24,762 | |
Underground Station Group | | | (139 | ) | | | (1,411 | ) | | | (1,893 | ) | | | (4,338 | ) |
Schuh Group (1) | | | 4,417 | | | | — | | | | 4,340 | | | | — | |
Lids Sports Group | | | 18,892 | | | | 12,207 | | | | 51,002 | | | | 33,143 | |
Johnston & Murphy Group | | | 2,979 | | | | 1,522 | | | | 8,029 | | | | 3,446 | |
Licensed Brands | | | 3,700 | | | | 3,440 | | | | 7,998 | | | | 10,112 | |
Corporate and Other (2) | | | (12,314 | ) | | | (10,554 | ) | | | (40,102 | ) | | | (29,317 | ) |
| | | | | | | | | | | | | | | | |
Earnings from operations | | | 45,912 | | | | 26,679 | | | | 73,088 | | | | 37,808 | |
Interest, net | | | 1,869 | | | | 306 | | | | 3,464 | | | | 768 | |
| | | | | | | | | | | | | | | | |
Earnings from continuing operations before income taxes | | | 44,043 | | | | 26,373 | | | | 69,624 | | | | 37,040 | |
Income tax expense | | | 17,882 | | | | 9,406 | | | | 28,138 | | | | 13,906 | |
| | | | | | | | | | | | | | | | |
Earnings from continuing operations | | | 26,161 | | | | 16,967 | | | | 41,486 | | | | 23,134 | |
Provision for discontinued operations | | | (73 | ) | | | (50 | ) | | | (997 | ) | | | (784 | ) |
| | | | | | | | | | | | | | | | |
Net Earnings | | $ | 26,088 | | | $ | 16,917 | | | $ | 40,489 | | | $ | 22,350 | |
| | | | | | | | | | | | | | | | |
| * | Certain expenses previously allocated to corporate in Fiscal 2011 have been reallocated to operating divisions to conform to current year presentation. Fiscal 2011 has been restated to reflect this new allocation. |
| (1) | Includes $2.9 million and $4.3 million, respectively, in deferred payments related to the Schuh acquisition for the three months and nine months ended October 29, 2011. |
| (2) | Includes a $0.3 million charge in the third quarter of Fiscal 2012 which includes $0.2 million in other legal matters and $0.1 million for network intrusion expenses and includes $1.9 million of other charges in the nine months of Fiscal 2012 which includes $1.1 million for asset impairments, $0.5 million for network intrusion expenses and $0.3 million for other legal matters. The third quarter and nine months of Fiscal 2012 also included $0.2 million and $6.6 million, respectively, of acquisition related expenses. Includes a $2.1 million charge in the third quarter of Fiscal 2011 for asset impairments and includes $6.6 million of other charges in the first nine months of Fiscal 2011 which includes $6.4 million for asset impairments and $0.2 million for other legal matters. |
GENESCO INC.
Consolidated Balance Sheet
| | | | | | | | |
In Thousands | | October 29,
2011 | | | October 30,
2010 | |
Assets | | | | | | | | |
Cash and cash equivalents | | $ | 36,073 | | | $ | 24,574 | |
Accounts receivable | | | 61,393 | | | | 47,923 | |
Inventories | | | 544,099 | | | | 450,902 | |
Other current assets | | | 66,439 | | | | 52,155 | |
| | | | | | | | |
Total current assets | | | 708,004 | | | | 575,554 | |
| | | | | | | | |
Property and equipment | | | 229,553 | | | | 200,495 | |
Other non-current assets | | | 405,539 | | | | 241,921 | |
| | | | | | | | |
Total Assets | | $ | 1,343,096 | | | $ | 1,017,970 | |
| | | | | | | | |
Liabilities and Equity | | | | | | | | |
Accounts payable | | $ | 243,594 | | | $ | 199,299 | |
Other current liabilities | | | 148,154 | | | | 95,216 | |
| | | | | | | | |
Total current liabilities | | | 391,748 | | | | 294,515 | |
| | | | | | | | |
Long-term debt | | | 142,648 | | | | 30,400 | |
Other long-term liabilities | | | 128,403 | | | | 108,281 | |
Equity | | | 680,297 | | | | 584,774 | |
| | | | | | | | |
Total Liabilities and Equity | | $ | 1,343,096 | | | $ | 1,017,970 | |
| | | | | | | | |
GENESCO INC.
Retail Units Operated - Nine Months Ended October 29, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Balance
01/30/10 | | | Acquisitions | | | Open | | | Close | | | Balance
01/29/11 | | | Acquisitions | | | Open | | | Close | | | Balance
10/29/11 | |
Journeys Group | | | 1,025 | | | | 0 | | | | 9 | | | | 17 | | | | 1,017 | | | | 0 | | | | 14 | | | | 14 | | | | 1,017 | |
Journeys | | | 819 | | | | 0 | | | | 6 | | | | 12 | | | | 813 | | | | 0 | | | | 10 | | | | 12 | | | | 811 | |
Journeys Kidz | | | 150 | | | | 0 | | | | 3 | | | | 4 | | | | 149 | | | | 0 | | | | 4 | | | | 0 | | | | 153 | |
Shi by Journeys | | | 56 | | | | 0 | | | | 0 | | | | 1 | | | | 55 | | | | 0 | | | | 0 | | | | 2 | | | | 53 | |
Underground Station Group | | | 170 | | | | 0 | | | | 0 | | | | 19 | | | | 151 | | | | 0 | | | | 0 | | | | 12 | | | | 139 | |
Schuh Group | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 75 | | | | 2 | | | | 2 | | | | 75 | |
Schuh UK | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 51 | | | | 2 | | | | 1 | | | | 52 | |
Schuh ROI | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 8 | | | | 0 | | | | 0 | | | | 8 | |
Schuh Concessions | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 0 | | | | 16 | | | | 0 | | | | 1 | | | | 15 | |
Lids Sports Group | | | 921 | | | | 58 | | | | 41 | | | | 35 | | | | 985 | | | | 10 | | | | 31 | | | | 26 | | | | 1,000 | |
Johnston & Murphy Group | | | 160 | | | | 0 | | | | 3 | | | | 7 | | | | 156 | | | | 0 | | | | 5 | | | | 5 | | | | 156 | |
Shops | | | 116 | | | | 0 | | | | 2 | | | | 7 | | | | 111 | | | | 0 | | | | 0 | | | | 5 | | | | 106 | |
Factory Outlets | | | 44 | | | | 0 | | | | 1 | | | | 0 | | | | 45 | | | | 0 | | | | 5 | | | | 0 | | | | 50 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Retail Units | | | 2,276 | | | | 58 | | | | 53 | | | | 78 | | | | 2,309 | | | | 85 | | | | 52 | | | | 59 | | | | 2,387 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail Units Operated - Three Months Ended October 29, 2011
| | | | | | | | | | | | | | | | | | | | |
| | | Balance
07/30/11 | | | Acquisitions | | | Open | | | Close | | | Balance
10/29/11 | |
Journeys Group | | | 1,013 | | | | 0 | | | | 6 | | | | 2 | | | | 1,017 | |
Journeys | | | 807 | | | | 0 | | | | 5 | | | | 1 | | | | 811 | |
Journeys Kidz | | | 152 | | | | 0 | | | | 1 | | | | 0 | | | | 153 | |
Shi by Journeys | | | 54 | | | | 0 | | | | 0 | | | | 1 | | | | 53 | |
Underground Station Group | | | 141 | | | | 0 | | | | 0 | | | | 2 | | | | 139 | |
Schuh Group | | | 75 | | | | 0 | | | | 2 | | | | 2 | | | | 75 | |
Schuh UK | | | 51 | | | | 0 | | | | 2 | | | | 1 | | | | 52 | |
Schuh ROI | | | 8 | | | | 0 | | | | 0 | | | | 0 | | | | 8 | |
Schuh Concessions | | | 16 | | | | 0 | | | | 0 | | | | 1 | | | | 15 | |
Lids Sports Group | | | 994 | | | | 6 | | | | 9 | | | | 9 | | | | 1,000 | |
Johnston & Murphy Group | | | 157 | | | | 0 | | | | 2 | | | | 3 | | | | 156 | |
Shops | | | 109 | | | | 0 | | | | 0 | | | | 3 | | | | 106 | |
Factory Outlets | | | 48 | | | | 0 | | | | 2 | | | | 0 | | | | 50 | |
| | | | | | | | | | | | | | | | | | | | |
Total Retail Units | | | 2,380 | | | | 6 | | | | 19 | | | | 18 | | | | 2,387 | |
| | | | | | | | | | | | | | | | | | | | |
Constant Store Sales
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Nine Months Ended | |
| | | October 29,
2011 | | | October 30,
2010 | | | October 29,
2011 | | | October 30,
2010 | |
Journeys Group | | | 15 | % | | | 9 | % | | | 15 | % | | | 5 | % |
Underground Station Group | | | 14 | % | | | 3 | % | | | 10 | % | | | 0 | % |
Lids Sports Group | | | 8 | % | | | 13 | % | | | 12 | % | | | 10 | % |
Johnston & Murphy Group | | | 7 | % | | | 7 | % | | | 11 | % | | | 6 | % |
| | | | | | | | | | | | | | | | |
Total Constant Store Sales | | | 12 | % | | | 9 | % | | | 13 | % | | | 6 | % |
| | | | | | | | | | | | | | | | |
Schedule B
Genesco Inc.
Adjustments to Reported Earnings from Continuing Operations
Three Months Ended October 29, 2011 and October 30, 2010
| | | | | | | | | | | | | | | | |
| In Thousands (except per share amounts) | | 3 mos
Oct 2011 | | | Impact
on EPS | | | 3 mos
Oct 2010 | | | Impact
on EPS | |
Earnings from continuing operations, as reported | | $ | 26,161 | | | $ | 1.09 | | | $ | 16,967 | | | $ | 0.72 | |
| | | | |
Adjustments: (1) | | | | | | | | | | | | | | | | |
Impairment charges | | | 32 | | | | — | | | | 1,341 | | | | 0.06 | |
Acquisition expenses | | | 206 | | | | 0.01 | | | | — | | | | — | |
Deferred payment - Schuh acquisition | | | 2,882 | | | | 0.12 | | | | — | | | | — | |
Other legal matters | | | 120 | | | | — | | | | — | | | | — | |
Purchase price accounting adjustment - margin | | | — | | | | — | | | | 533 | | | | 0.02 | |
Purchase price accounting adjustment - expense | | | — | | | | — | | | | 92 | | | | — | |
Network intrusion expenses | | | 68 | | | | — | | | | — | | | | — | |
Lower effective tax rate | | | (355 | ) | | | (0.01 | ) | | | (796 | ) | | | (0.03 | ) |
| | | | | | | | | | | | | | | | |
Adjusted earnings from continuing operations (2) | | $ | 29,114 | | | $ | 1.21 | | | $ | 18,137 | | | $ | 0.77 | |
| | | | | | | | | | | | | | | | |
| (1) | All adjustments are net of tax where applicable. The tax rate for the third quarter of Fiscal 2012 is 38.4% excluding a FIN 48 discrete item of $0.1 million. The tax rate for the third quarter of Fiscal 2011 is 38.2% excluding a FIN 48 discrete item of $0.1 million. |
| (2) | Reflects 24.0 million share count for Fiscal 2012 and 23.6 million share count for Fiscal 2011 which includes common stock equivalents in both years. |
The Company believes that disclosure of earnings and earnings per share from continuing operations on a pro forma basis 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 Earnings from Continuing Operations
Nine Months Ended October 29, 2011 and October 30, 2010
| | | | | | | | | | | | | | | | |
| In Thousands (except per share amounts) | | 9 mos
Oct 2011 | | | Impact
on EPS | | | 9 mos
Oct 2010 | | | Impact
on EPS | |
Earnings from continuing operations, as reported | | $ | 41,486 | | | $ | 1.74 | | | $ | 23,134 | | | $ | 0.97 | |
| | | | |
Adjustments: (1) | | | | | | | | | | | | | | | | |
Impairment charges | | | 674 | | | | 0.03 | | | | 3,923 | | | | 0.17 | |
Acquisition expenses | | | 5,628 | | | | 0.24 | | | | — | | | | — | |
Deferred payment - Schuh acquisition | | | 4,301 | | | | 0.18 | | | | — | | | | — | |
Other legal matters | | | 180 | | | | 0.01 | | | | 95 | | | | — | |
Flood loss | | | — | | | | — | | | | 215 | | | | 0.01 | |
Purchase price accounting adjustment - margin | | | — | | | | — | | | | 766 | | | | 0.03 | |
Purchase price accounting adjustment - expense | | | — | | | | — | | | | 266 | | | | 0.01 | |
Expenses related to aborted acquisition | | | — | | | | — | | | | 127 | | | | — | |
Network intrusion expenses | | | 329 | | | | 0.01 | | | | — | | | | — | |
Lower effective tax rate | | | (2,551 | ) | | | (0.11 | ) | | | (776 | ) | | | (0.03 | ) |
| | | | | | | | | | | | | | | | |
Adjusted earnings from continuing operations (2) | | $ | 50,047 | | | $ | 2.10 | | | $ | 27,750 | | | $ | 1.16 | |
| | | | | | | | | | | | | | | | |
| (1) | All adjustments are net of tax where applicable. The tax rate for the nine months of Fiscal 2012 is 38.9% excluding a FIN 48 discrete item of $0.3 million. The tax rate for the nine months of Fiscal 2011 is 38.8% excluding a FIN 48 discrete item of $0.3 million. |
| (2) | Reflects 23.7 million share count for Fiscal 2012 and 23.8 million share count for Fiscal 2011 which includes common stock equivalents in both years. |
The Company believes that disclosure of earnings and earnings per share from continuing operations on a pro forma basis 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 Forecasted Earnings from Continuing Operations
Fourth Quarter Ending January 28, 2012
| | | | | | | | | | | | | | | | |
| In Thousands (except per share amounts) | | High Guidance
Fiscal 2012 | | | Low Guidance
Fiscal 2012 | |
Forecasted earnings from continuing operations | | $ | 34,676 | | | $ | 1.45 | | | $ | 33,476 | | | $ | 1.40 | |
| | | | |
Adjustments: (1) | | | | | | | | | | | | | | | | |
Impairment, intrusion expenses and other legal matters | | | 197 | | | | 0.01 | | | | 197 | | | | 0.01 | |
Deferred payment - Schuh acquisition | | | 2,982 | | | | 0.12 | | | | 2,982 | | | | 0.12 | |
| | | | | | | | | | | | | | | | |
Adjusted forecasted earnings from continuing operations (2) | | $ | 37,855 | | | $ | 1.58 | | | $ | 36,655 | | | $ | 1.53 | |
| | | | | | | | | | | | | | | | |
| (1) | All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2012 is 40% excluding a FIN 48 discrete item of $0.2 million. |
| (2) | Reflects 24.0 million share count for Fiscal 2012 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.
Schedule B
Genesco Inc.
Adjustments to Forecasted Earnings from Continuing Operations
Fiscal Year Ending January 28, 2012
| | | | | | | | | | | | | | | | |
| In Thousands (except per share amounts) | | High Guidance
Fiscal 2012 | | | Low Guidance
Fiscal 2012 | |
Forecasted earnings from continuing operations | | $ | 73,578 | | | $ | 3.09 | | | $ | 72,387 | | | $ | 3.04 | |
| | | | |
Adjustments: (1) | | | | | | | | | | | | | | | | |
Impairment, intrusion expenses and other legal matters | | | 1,370 | | | | 0.06 | | | | 1,370 | | | | 0.06 | |
Deferred payment - Schuh acquisition | | | 7,283 | | | | 0.31 | | | | 7,283 | | | | 0.31 | |
Acquisition expenses | | | 5,613 | | | | 0.23 | | | | 5,613 | | | | 0.23 | |
| | | | | | | | | | | | | | | | |
Adjusted forecasted earnings from continuing operations (2) | | $ | 87,844 | | | $ | 3.69 | | | $ | 86,653 | | | $ | 3.64 | |
| | | | | | | | | | | | | | | | |
| (1) | All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2012 is 39.5% excluding a FIN 48 discrete item of $0.5 million. |
| (2) | Reflects 23.8 million share count for Fiscal 2012 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.
