Exhibit 99.1
[PACSUN LOGO]
CONTACT:
Carl Womack, Chief Financial Officer (714)414-4003
FOR IMMEDIATE RELEASE
PACSUN ANNOUNCES FIRST QUARTER 2003
NET INCOME INCREASES 142%
ANAHEIM, CA/MAY 12, 2003 -- Pacific Sunwear of California, Inc.
(NASDAQ:PSUN) today reported results for the first quarter ended May 3, 2003.
Net income for the first quarter of fiscal 2003 increased 142% to $8.0
million, or $.16 per share, basic and diluted, compared to $3.3 million, or $.07
per share, basic and diluted, for the first quarter of fiscal 2002, as adjusted
for the stock split effected in December 2002.
"I was very pleased with our first quarter earnings which were driven by
a 13.1% same store sales increase," stated Greg Weaver, Chairman and CEO. "Our
d.e.m.o. business continues to improve, producing a 36% comparable sales gain in
the quarter. Our girls business at both PacSun and d.e.m.o. are generating very
strong sales increases. As a result, first quarter operating margin increased
significantly, driven by higher gross margin and significant leverage of store
expenses," concluded Mr. Weaver.
Total sales for the first quarter (13 weeks) ended May 3, 2003 were
$198.3 million, an increase of 22.6% over total sales of $161.7 million for the
first quarter (13 weeks) ended May 4, 2002. Same-store sales increased 13.1% for
the comparable thirteen-week period ended May 3, 2003.
Pacific Sunwear is a leading specialty retailer of everyday casual
apparel, accessories and footwear designed to meet the needs of active teens and
young adults. The Company ended the first quarter of fiscal 2003 operating 625
PacSun stores, 74 PacSun outlet stores and 109 d.e.m.o. stores, for a total of
808 stores in 49 states and Puerto Rico. PacSun's website address is
www.pacsun.com.
The historical results achieved are not necessarily indicative of future
prospects of the Company. More information on factors that could affect forward
looking statements and the Company's financial results is included in the
Company's Report on Form 10-K for the year ended February 1, 2003 filed with the
Securities and Exchange Commission.
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3450 EAST MIRALOMA AVENUE, ANAHEIM, CA 92806 (714) 414-4000
PACIFIC SUNWEAR OF CALIFORNIA, INC.
SUMMARY STATEMENT OF INCOME
(unaudited)
(in $000's, except share and per share data)
FIRST QUARTER ENDED
-------------------------------
MAY 3, 2003 MAY 4, 2002
------------ ------------
Net Sales $ 198,331 $ 161,710
Gross margin 63,855 49,166
Selling, G&A expense 50,962 43,713
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Operating income 12,893 5,453
Interest income/(expense), net 61 (147)
------------ ------------
Income before taxes 12,954 5,306
Income tax expense 4,975 2,037
------------ ------------
Net income 7,979 3,269
Net income per share, basic* 0.16 0.07
Net income per share, diluted* $ 0.16 $ 0.07
Weighted average shares
outstanding, basic* 49,683,032 49,197,137
Weighted average shares
outstanding, diluted* 50,981,674 50,117,441
* Prior year share and per share amounts have been adjusted for the
three-for-two stock split effected December 18, 2002.
PACIFIC SUNWEAR OF CALIFORNIA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in $000's)
MAY 3, 2003 FEB. 1, 2003
----------- ------------
ASSETS
Current assets
Cash & cash equivalents $ 33,576 $ 36,438
Inventories 134,883 123,433
Other current assets 22,326 22,762
-------- --------
Total current assets 190,785 182,633
Property and equipment, net 201,121 201,513
Other long-term assets 15,483 15,597
-------- --------
Total assets 407,389 399,743
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses 59,859 62,978
Income taxes payable 3,737 8,000
Current portion of long-term debt and capital
leases 2,248 2,350
-------- --------
Total current liabilities 65,844 73,328
Long-term portion of debt and capital leases 2,878 3,338
Other long-term liabilities 21,596 20,686
-------- --------
Total liabilities 90,318 97,352
Total shareholder's equity 317,071 302,391
-------- --------
Total liabilities and shareholders' equity $407,389 $399,743
3450 EAST MIRALOMA AVENUE, ANAHEIM, CA 92806 (714) 414-4000
PACIFIC SUNWEAR OF CALIFORNIA, INC.
CONDENSED CONSOLIDATED CASH FLOWS
(unaudited)
(in $000's)
FOR THE FIRST QUARTER ENDED
---------------------------
MAY 3, 2003 MAY 4, 2002
------------- -------------
Cash flows from operating activities:
Net income $ 7,979 $ 3,269
Depreciation & amortization 8,783 7,823
Loss on disposal of property and equipment 326 417
Changes in operating assets and liabilities:
Inventories (11,450) (8,915)
Accounts payable and accrued expenses (3,119) (5,103)
Income taxes and deferred income taxes (2,986) (7,575)
Other assets and liabilities 1,460 (930)
-------- --------
Net cash provided by/(used in) operating
activities 993 (11,014)
Cash flows from investing activities:
Capital expenditures (8,717) (10,618)
-------- --------
Net cash used in investing activities (8,717) (10,618)
Cash flows from financing activities:
Repayments of long-term debt and capital leases (562) (249)
Proceeds from exercise of stock options 5,424 773
-------- --------
Net cash provided by financing activities 4,862 524
-------- --------
Net decrease in cash and cash equivalents (2,862) (21,108)
Cash and cash equivalents, beginning of period 36,438 23,136
-------- --------
Cash and cash equivalents, end of period $ 33,576 $ 2,028
PACIFIC SUNWEAR OF CALIFORNIA, INC.
SELECTED STORE OPERATING DATA
MAY 3, 2003 MAY 4, 2002
----------- -----------
Stores open at beginning of first quarter 791 718
Stores opened during first quarter 18 34
Stores closed during first quarter (1) (3)
------ ------
Stores open at end of first quarter 808 749
Other operating data:
PacSun stores 625 576
Outlet stores 74 67
d.e.m.o. stores 109 106
Total square footage at end of period (in thousands) 2,721 2,446
3450 EAST MIRALOMA AVENUE, ANAHEIM, CA 92806 (714) 414-4000