Exhibit 99.1
FINISH LINE REPORTS FIRST QUARTER RESULTS
INDIANAPOLIS June 28, 2007— The Finish Line, Inc. (NASDAQ:FINL) announced results for the first quarter ended June 2, 2007.
For the thirteen weeks ended June 2, 2007 (“Q1”), the Company reported a net loss of $3.9 million, or $(.08) per diluted share, versus net income of $4.4 million, or $.09 per diluted share, for the thirteen weeks ended May 27, 2006 (“Q1 LY”). Diluted weighted average shares outstanding were 47,135,000 for Q1 versus 48,625,000 shares outstanding for Q1 LY.
Consolidated net sales decreased 0.2% to $288.3 million for Q1 compared to $289.0 million reported for Q1 LY. Comparable store net sales decreased 3.9% for Q1 as compared to a 7.2% decrease reported for Q1 LY.
Merchandise inventories on a consolidated basis were $308.1 million at June 2, 2007 compared to $298.4 million at May 27, 2006. As of June 2, 2007, on a per square foot basis, consolidated inventories decreased 3%, and Finish Line store merchandise inventories decreased 1% compared to one year ago.
Alan H. Cohen, Chief Executive Officer of Finish Line, stated, “During the quarter, we made progress in our efforts to increase our sport style offerings, including sandals and canvas footwear, to better align our product mix with consumer demand. Although the retail environment remains competitive, we have put in place both product and operating initiatives that we believe will lead to improvements in our business. Our goal is to remain committed to performance and to strengthen our position in sport style product in order to satisfy the expectations of our consumers.”
CONFERENCE CALL:
As previously announced, the Company is hosting a live conference call at 8:30 am (ET) on Friday June 29th. Interested parties may participate in the call by calling 1-706-634-5566 (conference leader is Steve Schneider and conference ID# is 1533016). Those interested in listening to the call on the web can do so at www.finishline.com.
The Company will make available a replay of the live conference call by calling 1-706-645-9291 (Conference ID# 1533016). This replay will be available commencing at approximately 9:45 ET on Friday, June 29th and will remain available through July 2nd. In addition, the replay will be available on the web at www.finishline.com.
The Company has experienced, and expects to continue to experience, significant variability in net sales and comparable store net sales from quarter to quarter. Therefore, the results of the periods presented herein are not necessarily indicative of the results to be expected for any other future period or year.
Certain statements contained in this press release regard matters that are not historical facts and are forward looking statements (as such term is defined in the rules promulgated pursuant to the Securities Act of 1933, as amended). Because such forward looking statements contain risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward looking statements. Factors that could cause actual results to differ materially include, but are not limited to: changing consumer preferences; the Company’s inability to successfully market its footwear, apparel, accessories and other merchandise; price, product and other competition from other retailers (including internet and direct manufacturer sales); the unavailability of products; the inability to locate and obtain favorable lease terms for the Company’s stores; the loss of key employees, general economic conditions and adverse factors impacting the retail athletic industry; management of growth, and the other risks detailed in the Company’s Securities and Exchange Commission filings. The Company 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.
The Finish Line, Inc. is one of the largest mall-based specialty retailers operating under the Finish Line, Man Alive and Paiva brand names. The Finish Line, Inc. is publicly traded on the NASDAQ Global Select Market under the symbol FINL. The Company currently operates 696 Finish Line stores in 47 states and online, 93 Man Alive stores in 19 states and 15 Paiva stores in 10 states and online. To learn more about these brands, visit www.finishline.com , www.manalive.com and www.paiva.com .
The Finish Line, Inc.
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share and store data)
| | | Thirteen Weeks Ended | |
| | | June 2, | | | May 27, | |
| | | 2007 | | | 2006 | |
| | | | | | | |
| | | | | | | |
| Net sales | | $ | 288,333 | | | $ | 289,046 | |
| Cost of sales (including occupancy expenses) | | | 211,494 | | | | 203,129 | |
| Gross profit | | | 76,839 | | | | 85,917 | |
| | | | | | | | | |
| Selling, general, and administrative expenses | | | 82,507 | | | | 79,626 | |
| Operating (loss) income | | | (5,668 | ) | | | 6,291 | |
| | | | | | | | | |
| Interest income, net | | | 463 | | | | 735 | |
| (Loss) income before income taxes | | | (5,205 | ) | | | 7,026 | |
| (Benefit) provision for income taxes | | | (1,334 | ) | | | 2,670 | |
| Net (loss) income | | $ | (3,871 | ) | | $ | 4,356 | |
| | | | | | | | | |
| Diluted weighted average shares outstanding | | | 47,135 | | | | 48,625 | |
| Diluted net (loss) income per share | | $ | (0.08 | ) | | $ | 0.09 | |
| | | | | | | | | |
| Dividends declared per share | | $ | 0.025 | | | $ | 0.025 | |
| | | | | | | | | |
Number of stores open at end of period: Finish Line | | | 695 | | | | 669 | |
| Man Alive | | | 93 | | | | 65 | |
| Paiva | | | 15 | | | | 4 | |
| | | Condensed Consolidated Balance Sheets | |
| | | | | | | | | | |
| | | June 2, | | | May 27, | | | March 3, | |
| | | 2007 | | | 2006 | | | 2007 | |
| | | (Unaudited) | | | (Unaudited) | | | | |
| ASSETS | | | | | | | | | |
| Cash, cash equivalents and marketable securities | | $ | 33,050 | | | $ | 62,090 | | | $ | 62,864 | |
| Merchandise inventories, net | | | 308,097 | | | | 298,438 | | | | 287,300 | |
| Other current assets | | | 29,179 | | | | 21,715 | | | | 30,212 | |
| Property and equipment, net | | | 248,757 | | | | 231,412 | | | | 247,468 | |
| Other assets | | | 33,089 | | | | 26,045 | | | | 28,792 | |
| Total assets | | $ | 652,172 | | | $ | 639,700 | | | $ | 656,636 | |
| | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | |
| Current liabilities | | $ | 131,244 | | | $ | 147,002 | | | $ | 142,886 | |
| Deferred credits from landlords | | | 65,481 | | | | 59,773 | | | | 64,472 | |
| Other long-term liabilities | | | 9,183 | | | | -- | | | | -- | |
| Shareholders' equity | | | 446,264 | | | | 432,925 | | | | 449,278 | |
| Total liabilities and shareholders' equity | | $ | 652,172 | | | $ | 639,700 | | | $ | 656,636 | |
| CONTACTS: |
| Investor Relations: |
| Kevin S. Wampler, 317/899-1022 ext. 6914 |
| Executive Vice President - Chief Financial Officer |
| |
| Media Requests: |
| Elise Hasbrook, 317/899-1022 ext. 6827 |
| Corporate Communications Manager |
