Exhibit 99.1
 | The Buckle, Inc. |
2407 W. 24th St. Kearney, NE 68845 | |
| P.O. Box 1480 Kearney, NE 68848-1480 | |
phone: 308-236-8491 | |
fax: 308-236-4493 | |
For Immediate Release: November 16, 2006 | web: www.buckle.com |
| Contact: | Karen B. Rhoads, Chief Financial Officer |
The Buckle, Inc. 308/236-8491 |
THE BUCKLE, INC. REPORTS THIRD QUARTER NET PROFITS
KEARNEY, NE -- The Buckle, Inc. (NYSE: BKE) reported net income up 6.5 percent on a 3.6 percent net sales increase for the third quarter ended October 28, 2006.
Net income for the third quarter of fiscal 2006 increased 6.5 percent to $17.7 million, or 92 cents per share (89 cents per share on a diluted basis), compared to net income of $16.6 million, or 85 cents per share (82 cents per share on a diluted basis) for the third quarter of fiscal 2005.
Net sales for the third quarter ended October 28, 2006, increased 3.6 percent to $143.1 million compared to net sales of $138.1 million for the third quarter of fiscal 2005. Comparable store net sales, for stores open at least one year, declined 0.1 percent for the quarter ended October 28, 2006, compared with the quarter ended October 29, 2005.
Net income for the nine months ended October 28, 2006 rose 2.7 percent to $33.7 million or $1.75 per share ($1.69 per share on a diluted basis), compared with $32.8 million or $1.66 per share ($1.59 per share on a diluted basis) for the nine months ended October 29, 2005.
Net sales for the first nine months of fiscal 2006 increased 2.1 percent to $355.1 million compared to net sales of $347.7 million in the first nine months of fiscal 2005. Comparable store net sales declined 2.1 percent for the nine months ended October 28, 2006 compared with the nine months ended October 29, 2005.
The adoption of “SFAS No. 123(R): Share-Based Payments” had a $0.01 and $0.04 per share impact on both the Company’s reported after-tax basic and diluted earnings per share for the third quarter and for the first nine months of fiscal 2006, respectively. No compensation expense related to stock option grants was recognized by the Company for fiscal periods prior to fiscal 2006.
During the quarter ended October 28, 2006, the Company repurchased 342,700 shares of its common stock at an average price of $35.82 per share. These shares were purchased pursuant to the 1,000,000 share corporate stock repurchase program authorized by the Board of Directors. The Company had 253,400 shares remaining as of October 28, 2006 to be purchased to complete this authorization.
Headquartered in Kearney, Nebraska, The Buckle, Inc. is a retailer of casual apparel, footwear and accessories for young men and women. As of the end of the fiscal quarter, it operated 352 stores in 38 states compared with 337 in 38 states at the end of the prior year third quarter. It currently operates 354 retail stores in 38 states compared with 339 stores in 38 states at this same time a year ago.
To listen to the Company’s recorded quarterly earnings commentary, please call (308) 238-2500.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995; All forward looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors which may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
Note: News releases and other information on The Buckle, Inc. can be accessed at www.buckle.com on the Internet.
Financial Table to Follow
THE BUCKLE, INC.
STATEMENTS OF INCOME
(Amounts in Thousands Except Per Share Amounts)
(Unaudited)
Thirteen Weeks Ended | Thirty-nine Weeks Ended | ||||||||||||
October 28, | October 29, | October 28, | October 29, | ||||||||||
2006 | 2005 | 2006 | 2005 | ||||||||||
| SALES, Net of returns and allowances | $ | 143,084 | $ | 138,067 | $ | 355,088 | $ | 347,744 | |||||
| COST OF SALES (Including buying, | |||||||||||||
| distribution and occupancy costs) | 84,435 | 81,818 | 223,344 | 217,999 | |||||||||
| Gross profit | 58,649 | 56,249 | 131,744 | 129,745 | |||||||||
| OPERATING EXPENSES: | |||||||||||||
| Selling | 28,095 | 27,060 | 72,102 | 69,674 | |||||||||
| General and administrative | 4,713 | 4,096 | 12,254 | 12,074 | |||||||||
| 32,808 | 31,156 | 84,356 | 81,748 | ||||||||||
| INCOME FROM OPERATIONS | 25,841 | 25,093 | 47,388 | 47,997 | |||||||||
| OTHER INCOME, Net | 2,193 | 1,116 | 6,059 | 3,853 | |||||||||
| INCOME BEFORE INCOME TAXES | 28,034 | 26,209 | 53,447 | 51,850 | |||||||||
| PROVISION FOR INCOME TAXES | 10,373 | 9,619 | 19,793 | 19,086 | |||||||||
| NET INCOME | $ | 17,661 | $ | 16,590 | $ | 33,654 | $ | 32,764 | |||||
| EARNINGS PER SHARE: | |||||||||||||
| Basic | $ | 0.92 | $ | 0.85 | $ | 1.75 | $ | 1.66 | |||||
| Diluted | $ | 0.89 | $ | 0.82 | $ | 1.69 | $ | 1.59 | |||||
| Basic weighted average shares | 19,167 | 19,458 | 19,280 | 19,756 | |||||||||
| Diluted weighted average shares | 19,799 | 20,184 | 19,961 | 20,597 | |||||||||
THE BUCKLE, INC.
BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
October 28, | January 28, | ||||||
ASSETS | 2006 | 2006 | |||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 10,053 | $ | 23,438 | |||
| Short-term investments | 131,299 | 134,672 | |||||
| Accounts receivable, net of allowance of $62 and $94, respectively | 5,164 | 4,824 | |||||
| Inventory | 99,974 | 68,731 | |||||
| Prepaid expenses and other assets | 8,100 | 6,894 | |||||
| Total current assets | 254,590 | 238,559 | |||||
| PROPERTY AND EQUIPMENT: | 213,714 | 199,618 | |||||
| Less accumulated depreciation and amortization | (118,538 | ) | (108,222 | ) | |||
| 95,176 | 91,396 | ||||||
| LONG-TERM INVESTMENTS | 37,936 | 41,654 | |||||
| OTHER ASSETS | 2,624 | 2,657 | |||||
| $ | 390,326 | $ | 374,266 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Accounts payable | $ | 19,126 | $ | 11,119 | |||
| Accrued employee compensation | 10,943 | 20,096 | |||||
| Accrued store operating expenses | 4,755 | 3,725 | |||||
| Gift certificates redeemable | 3,793 | 5,495 | |||||
| Income taxes payable | 7,139 | 4,696 | |||||
| Total current liabilities | 45,756 | 45,131 | |||||
| DEFERRED COMPENSATION | 3,203 | 2,518 | |||||
| DEFERRED RENT LIABILITY | 29,320 | 26,824 | |||||
| Total liabilities | 78,279 | 74,473 | |||||
| COMMITMENTS | |||||||
| STOCKHOLDERS’ EQUITY: | |||||||
| Common stock, authorized 100,000,000 shares of $.01 par value; issued and | |||||||
| outstanding; 19,200,516 and 19,339,153 shares, respectively | 192 | 193 | |||||
| Additional paid-in capital | 26,741 | 39,651 | |||||
| Retained earnings | 285,114 | 261,948 | |||||
| Unearned compensation - restricted stock | - | (1,999 | ) | ||||
| Total stockholders’ equity | 312,047 | 299,793 | |||||
| $ | 390,326 | $ | 374,266 | ||||