Exhibit 99.1
Zumiez Inc. Announces Record Fiscal 2006 Fourth Quarter Results
Q4-06 Net Sales Increased 49.0% to $112.4 Million;
Comparable Store Sales Increased 12.0% in Fourth Quarter;
Q4-06 Diluted EPS Up 69.6% to $0.39;
Company Introduces Fiscal 2007 EPS Guidance of $0.94 to $0.96
EVERETT, Wash.--(BUSINESS WIRE)--March 14, 2007--Zumiez Inc.
(NASDAQ: ZUMZ) today reported results for the fourth quarter ended
February 3, 2007.
Total net sales for the fourth quarter (14 weeks) ended February
3, 2007 increased by 49.0% to $112.4 million from $75.4 million
reported in the fourth quarter (13 weeks) of the prior fiscal year.
The company posted net income for the quarter of $11.3 million or
$0.39 per diluted share versus $6.8 million or $0.23 per diluted share
in the fourth quarter of the prior fiscal year. Comparable store sales
increased 12.0% for the fourth quarter of fiscal 2006 compared to a
20.7% increase in the fourth quarter of fiscal 2005.
Total net sales for fiscal 2006 (53 week period) increased by
45.0% to $298.2 million from $205.6 million reported in fiscal 2005
(52 week period). The company posted net income of $20.9 million or
$0.73 per diluted share in fiscal 2006 versus $12.9 million or $0.47
per diluted share in the prior year. Comparable store sales increased
13.0% in fiscal 2006 compared to 14.2% in fiscal 2005.
Rick Brooks, President and Chief Executive Officer of Zumiez Inc.,
stated, "We are pleased to have completed another terrific year at
Zumiez, the 27th of the past 28 years with a comparable store sales
increase. We also successfully completed the integration of the
acquisition of Fast Forward and opened an additional 42 new stores
during the year."
Mr. Brooks concluded, "The continued success of the highly
differentiated Zumiez concept is a testament to the great team we've
assembled. We remain on track to open 50 new stores in fiscal 2007,
and are excited about our growth prospects for the coming year and
beyond."
2007 Outlook
The company's long-term financial targets include comparable store
sales growth in the mid single digit range, net square footage
expansion of approximately 20%, and diluted EPS growth in excess of
30%. In line with its long-term growth goals, the company introduced
guidance for fiscal 2007 of $0.94 to $0.96 in diluted earnings per
share. Weighted average diluted shares for the fiscal year are
expected to be approximately 29,500,000.
In putting forth this outlook, the company reminds investors of
the complexity of accurately assessing future growth given the
difficulty in predicting fashion trends and consumer preferences,
boardsports popularity and participation rates, general economic
conditions and the impact of other business variables and risks.
A conference call will be held today to discuss third quarter
results and will be web cast at 5:00 p.m. ET on http://ir.zumiez.com.
Participants may also dial (866) 543-6403 followed by the conference
identification code of 51374373.
About Zumiez Inc.
Zumiez is a leading specialty retailer of action sports related
apparel, footwear, equipment and accessories. Our stores cater to
young men and women between ages 12-24, focusing on skateboarding,
surfing, snowboarding, motocross and BMX. As of March 3, 2007 we
operate 238 stores, which are primarily located in shopping malls and
our web site address is www.zumiez.com.
Safe Harbor Statement
Certain statements in this press release and oral statements
relating thereto made from time to time by representatives of the
company may constitute forward-looking statements for purposes of the
safe harbor provisions under the Private Securities Litigation Reform
Act of 1995. These statements include, without limitation, predictions
and guidance relating to the company's future financial performance,
brand and product category diversity, ability to adjust product mix,
integration of acquired businesses, growing customer demand for our
products and new store openings. In some cases, you can identify
forward-looking statements by terminology such as, "may," "should,"
"expects," "plans," "anticipates," "believes," "estimates,"
"predicts," "potential," "continue," or the negative of these terms or
other comparable terminology. These forward-looking statements are
based on management's current expectations but they involve a number
of risks and uncertainties. Actual results and the timing of events
could differ materially from those anticipated in the forward-looking
statements as a result of risks and uncertainties, which include,
without limitation, those described in the company's quarterly report
on Form 10-Q for the quarter ended October 28, 2006 as filed with the
Securities and Exchange Commission and available at www.sec.gov. You
are urged to consider these factors carefully in evaluating the
forward-looking statements herein and are cautioned not to place undue
reliance on such forward-looking statements, which are qualified in
their entirety by this cautionary statement. The forward-looking
statements speak only as of the date on which they are made and the
company undertakes no obligation to publicly update such
forward-looking statements to reflect subsequent events or
circumstances.
ZUMIEZ INC.
CONDENSED STATEMENT OF INCOME
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended Year Ended
----------------------- -----------------------
February 3, January 28, February 3, January 28,
2007 2006 2007 2006
----------- ----------- ----------- -----------
Net sales $112,378 $75,401 $298,177 $205,589
Cost of goods sold 68,115 46,657 189,609 132,811
----------- ----------- ----------- -----------
Gross profit 44,263 28,744 108,568 72,778
Selling, general and
administrative
expenses 26,205 18,200 76,124 52,730
----------- ----------- ----------- -----------
Operating profit 18,058 10,544 32,444 20,048
Interest income
(expense), net 365 393 1,178 648
Other income
(expense), net -- (18) (16) (1)
----------- ----------- ----------- -----------
Earnings before income
taxes 18,423 10,919 33,606 20,695
Provision for income
taxes 7,145 4,155 12,750 7,844
----------- ----------- ----------- -----------
Net income $ 11,278 $ 6,764 $ 20,856 $ 12,851
=========== =========== =========== ===========
Basic net income per
share $ 0.41 $ 0.25 $ 0.76 $ 0.50
=========== =========== =========== ===========
Diluted net income per
share $ 0.39 $ 0.23 $ 0.73 $ 0.47
=========== =========== =========== ===========
Weighted average
shares outstanding,
Basic 27,789,980 27,245,038 27,542,891 25,879,675
Weighted average
shares outstanding,
Diluted 28,973,631 28,799,710 28,703,037 27,376,684
ZUMIEZ INC.
CONDENSED BALANCE SHEETS
(in thousands, except share amounts)
(Unaudited)
February 3, January 28,
2007 2006
----------- -----------
Assets
Current assets
Cash and cash equivalents $ 8,161 $ 4,737
Marketable Securities 43,816 38,264
Receivables 5,223 3,746
Inventory 42,157 30,559
Prepaid expenses and other 3,593 711
Deferred tax assets 1,551 938
----------- -----------
Total current assets 104,501 78,955
Leasehold improvements and equipment, net 49,889 35,456
Goodwill 12,904 --
----------- -----------
Total long-term assets 62,793 35,456
Total assets $167,294 $114,411
=========== ===========
Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable $ 24,164 $ 18,623
Book overdraft 6,083 --
Accrued payroll and payroll taxes 4,784 4,388
Income taxes payable 6,598 3,309
Current portion of deferred rent and tenant
allowances 1,377 900
Other accrued liabilities 6,566 4,378
----------- -----------
Total current liabilities 49,572 31,598
-
Long-term deferred rent and tenant allowances,
less current portion 12,069 7,595
Deferred tax liabilities 841 1,534
----------- -----------
Total long-term liabilities 12,910 9,129
-
Commitments and contingencies
Shareholders' equity
Preferred stock, no par value, 40,000,000
shares authorized; none issued and
outstanding
Common stock, no par value, 100,000,000 shares
authorized; 27,880,512 shares issued and
outstanding at February 3, 2007 and
27,259,297 shares issued and outstanding at
January 28, 2006. 45,312 35,031
Accumulated other comprehensive income (14) (5)
Retained earnings 59,514 38,658
----------- -----------
Total shareholders' equity 104,812 73,684
Total liabilities and shareholders' equity $167,294 $114,411
=========== ===========
ZUMIEZ INC.
CONDENSED CASH FLOWS
(in thousands)
(Unaudited)
Year Ended
---------------------------------
February 3, 2007 January 28, 2006
---------------- ----------------
Cash flows from operating activities
Net income $20,856 $12,851
Adjustments to reconcile net income
to net cash provided by operating
activities
Depreciation 10,499 7,534
Deferred tax expense (1,305) (56)
Stock compensation expense 2,053 165
Loss on disposal of assets 132 33
Loss on sale of marketable
securities 17 --
Excess tax benefit from stock
options (6,822) (4,458)
Changes in operating assets and
liabilities
Receivables (1,309) (1,835)
Inventory (198) (6,307)
Prepaid expenses (2,713) 455
Trade accounts payable (3,371) 6,361
Accrued payroll and payroll taxes 330 1,827
Income taxes payable 10,111 5,156
Other accrued liabilities 1,506 (1,024)
Deferred rent 145 383
---------------- ----------------
Net cash provided by operating
activities 29,931 21,085
---------------- ----------------
Cash flows from investing activities
Additions to leasehold improvements
and equipment (17,896) (13,386)
Acquisitions, net of cash acquired (16,542) --
Purchases of marketable securities (157,433) (66,496)
Sales and maturities of marketable
securities 151,785 28,210
---------------- ----------------
Net cash used in investing
activities (40,086) (51,672)
---------------- ----------------
Cash flows from financing activities
Change in book overdraft 6,083 (429)
Borrowings on revolving credit
facility -- 19,750
Payments on revolving credit
facility (732) (19,750)
Proceeds from exercise 1,406 1,077
Proceeds from sale of stock -- 29,192
Excess tax benefit from stock
options 6,822 4,458
---------------- ----------------
Net cash provided by financing
activities 13,579 34,298
---------------- ----------------
Net increase in cash and cash
equivalents 3,424 3,711
Cash and cash equivalents, Beginning
of period 4,737 1,026
---------------- ----------------
Cash and cash equivalents, End of
period $ 8,161 $ 4,737
================ ================
Supplemental disclosure of cash flow
information
Cash paid during the period for
interest $ -- $ 61
Cash paid during the period for
income taxes 4,027 2,746
- ----------------------------------------------------- ----------------
CONTACT: Zumiez Inc.
Brenda Morris
Chief Financial Officer
425-551-1564
or
Investor:
Integrated Corporate Relations
Chad Jacobs/David Griffith
203-682-8200