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Total net sales for the fourth quarter ended
Total net sales for fiscal 2017 (53 weeks) increased 10.9% to
Total net sales for the four-week period ended
Fiscal 2018 First Quarter Outlook
The Company is introducing guidance for the three months ending
A conference call will be held today to discuss fourth quarter fiscal 2017 results and will be webcast at
About
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
ZUMIEZ INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | ||||||||||||||
February 3, | % of | January 28, | % of | |||||||||||
2018 | Sales | 2017 | Sales | |||||||||||
(Unaudited) | ||||||||||||||
Net sales | $ | 308,245 | 100.0 | % | $ | 263,635 | 100.0 | % | ||||||
Cost of goods sold | 193,583 | 62.8 | % | 169,613 | 64.3 | % | ||||||||
Gross profit | 114,662 | 37.2 | % | 94,022 | 35.7 | % | ||||||||
Selling, general and administrative expenses | 77,714 | 25.2 | % | 66,115 | 25.0 | % | ||||||||
Operating profit | 36,948 | 12.0 | % | 27,907 | 10.7 | % | ||||||||
Interest income, net | 211 | 0.1 | % | 11 | 0.0 | % | ||||||||
Other (expense) income, net | (53 | ) | 0.0 | % | 195 | 0.1 | % | |||||||
Earnings before income taxes | 37,106 | 12.1 | % | 28,113 | 10.8 | % | ||||||||
Provision for income taxes | 17,170 | 5.6 | % | 9,929 | 3.8 | % | ||||||||
Net income | $ | 19,936 | 6.5 | % | $ | 18,184 | 7.0 | % | ||||||
Basic earnings per share | $ | 0.81 | $ | 0.74 | ||||||||||
Diluted earnings per share | $ | 0.80 | $ | 0.74 | ||||||||||
Weighted average shares used in computation of earnings per share: | ||||||||||||||
Basic | 24,729 | 24,506 | ||||||||||||
Diluted | 24,953 | 24,691 | ||||||||||||
ZUMIEZ INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Fiscal Year Ended | ||||||||||||||
February 3, | % of | January 28, | % of | |||||||||||
2018 | Sales | 2017 | Sales | |||||||||||
(Unaudited) | ||||||||||||||
Net sales | $ | 927,401 | 100.0 | % | $ | 836,268 | 100.0 | % | ||||||
Cost of goods sold | 617,527 | 66.6 | % | 561,266 | 67.1 | % | ||||||||
Gross profit | 309,874 | 33.4 | % | 275,002 | 32.9 | % | ||||||||
Selling, general and administrative expenses | 261,114 | 28.2 | % | 235,259 | 28.1 | % | ||||||||
Operating profit | 48,760 | 5.2 | % | 39,743 | 4.8 | % | ||||||||
Interest income, net | 495 | 0.0 | % | 32 | 0.0 | % | ||||||||
Other (expense) income, net | (852 | ) | 0.0 | % | 449 | 0.0 | % | |||||||
Earnings before income taxes | 48,403 | 5.2 | % | 40,224 | 4.8 | % | ||||||||
Provision for income taxes | 21,601 | 2.3 | % | 14,320 | 1.7 | % | ||||||||
Net income | $ | 26,802 | 2.9 | % | $ | 25,904 | 3.1 | % | ||||||
Basic earnings per share | $ | 1.09 | $ | 1.05 | ||||||||||
Diluted earnings per share | $ | 1.08 | $ | 1.04 | ||||||||||
Weighted average shares used in computation of earnings per share: | ||||||||||||||
Basic | 24,679 | 24,727 | ||||||||||||
Diluted | 24,878 | 24,908 | ||||||||||||
CONSOLIDATED BALANCE SHEETS
(In thousands)
February 3, 2018 |
January 28, 2017 |
|||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 24,041 | $ | 20,247 | ||||
Marketable securities | 97,864 | 58,579 | ||||||
Receivables | 17,027 | 12,538 | ||||||
Inventories | 125,826 | 106,924 | ||||||
Prepaid expenses and other current assets | 14,405 | 13,075 | ||||||
Total current assets | 279,163 | 211,363 | ||||||
Fixed assets, net | 128,852 | 129,651 | ||||||
Goodwill | 62,912 | 56,001 | ||||||
Intangible assets, net | 16,696 | 14,610 | ||||||
Deferred tax assets, net | 4,174 | 7,041 | ||||||
Other long-term assets | 7,713 | 8,017 | ||||||
Total long-term assets | 220,347 | 215,320 | ||||||
Total assets | $ | 499,510 | $ | 426,683 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities | ||||||||
Trade accounts payable | $ | 37,861 | $ | 25,529 | ||||
Accrued payroll and payroll taxes | 20,650 | 14,914 | ||||||
Income taxes payable | 5,796 | 1,866 | ||||||
Deferred rent and tenant allowances | 8,073 | 8,344 | ||||||
Other liabilities | 26,867 | 22,944 | ||||||
Total current liabilities | 99,247 | 73,597 | ||||||
Long-term deferred rent and tenant allowances | 39,275 | 41,066 | ||||||
Other long-term liabilities | 5,073 | 4,969 | ||||||
Total long-term liabilities | 44,348 | 46,035 | ||||||
Total liabilities | 143,595 | 119,632 | ||||||
Shareholders’ equity | ||||||||
Preferred stock, no par value, 20,000 shares authorized; none issued and outstanding | — | — | ||||||
Common stock, no par value, 50,000 shares authorized; 25,249 shares issued and outstanding at February 3, 2018 and 24,945 shares issued and outstanding at January 28, 2017 | 146,523 | 140,984 | ||||||
Accumulated other comprehensive income (loss) | 35 | (16,488 | ) | |||||
Retained earnings | 209,357 | 182,555 | ||||||
Total shareholders’ equity | 355,915 | 307,051 | ||||||
Total liabilities and shareholders’ equity | $ | 499,510 | $ | 426,683 | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Fiscal Year Ended | |||||||||
February 3, 2018 |
January 28, 2017 |
||||||||
(Unaudited) | |||||||||
Cash flows from operating activities: | |||||||||
Net income | $ | 26,802 | $ | 25,904 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation, amortization and accretion | 27,288 | 27,916 | |||||||
Deferred taxes | 3,282 | (2,555 | ) | ||||||
Stock-based compensation expense | 5,032 | 4,578 | |||||||
Other | 2,344 | 1,564 | |||||||
Changes in operating assets and liabilities: | |||||||||
Receivables | (3,216 | ) | 413 | ||||||
Inventories | (14,848 | ) | (7,984 | ) | |||||
Prepaid expenses and other current assets | (960 | ) | (1,793 | ) | |||||
Trade accounts payable | 11,584 | 3,261 | |||||||
Accrued payroll and payroll taxes | 5,359 | 2,313 | |||||||
Income taxes payable | 3,575 | (3,713 | ) | ||||||
Deferred rent and tenant allowances | (2,494 | ) | (2,673 | ) | |||||
Other liabilities | 1,766 | 1,227 | |||||||
Net cash provided by operating activities | 65,514 | 48,458 | |||||||
Cash flows from investing activities: | |||||||||
Additions to fixed assets | (24,062 | ) | (20,400 | ) | |||||
Acquisitions, net of cash acquired | — | (5,395 | ) | ||||||
Purchases of marketable securities and other investments | (129,036 | ) | (86,826 | ) | |||||
Sales and maturities of marketable securities and other investments | 89,128 | 61,106 | |||||||
Net cash used in investing activities | (63,970 | ) | (51,515 | ) | |||||
Cash flows from financing activities: | |||||||||
Proceeds from revolving credit facilities | 21,466 | 23,079 | |||||||
Payments on revolving credit facilities | (20,700 | ) | (22,429 | ) | |||||
Repurchase of common stock | — | (21,607 | ) | ||||||
Proceeds from issuance and exercise of stock-based awards | 698 | 1,014 | |||||||
Payments for tax withholdings on equity awards | (191 | ) | (134 | ) | |||||
Net cash provided by (used in) financing activities | 1,273 | (20,077 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 977 | 218 | |||||||
Net increase (decrease) in cash and cash equivalents | 3,794 | (22,916 | ) | ||||||
Cash and cash equivalents, beginning of period | 20,247 | 43,163 | |||||||
Cash and cash equivalents, end of period | $ | 24,041 | $ | 20,247 | |||||
Supplemental disclosure on cash flow information: | |||||||||
Cash paid during the period for income taxes | $ | 14,851 | $ | 20,462 | |||||
Accrual for purchases of fixed assets | 1,300 | 1,191 | |||||||
Accrual for repurchase of common stock | — | — |
Company Contact:
Director of Finance &
Investor Relations
(425) 551-1500, ext. 1337
Investor Contact:
ICR
(203) 682-8200
Source: Zumiez Inc