UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: June 04, 2015
(Date of earliest event reported)
Zumiez Inc.
(Exact name of registrant as specified in its charter)
WA
(State or other jurisdiction
of incorporation)
000-51300
(Commission File Number)
91-1040022
(IRS Employer
Identification Number)
4001 204th Street SW, Lynnwood, WA
(Address of principal executive offices)
98036
(Zip Code)
4255511500
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
- o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
- o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
- o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
- o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
- o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Item 2.02. Results of Operations and Financial Condition On June 4, 2015, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the first quarter ended May 2, 2015, a copy of which is attached hereto as Exhibit 99.1 and the contents of which are incorporated herein by this reference. In accordance with General Instruction B.2. of Form 8-K, the information contained in this report and the Press Release shall not be deemed "Filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: June 04, 2015 |
ZUMIEZ INC.
By: /s/ Richard M. Brooks |
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| Exhibit No. | Description |
| 99.1 | Press Release of Zumiez Inc. dated June 04, 2015 |
LYNNWOOD, WA -- (Marketwired - June 04, 2015) - Zumiez Inc. (NASDAQ: ZUMZ) a leading specialty retailer of action sports related apparel, footwear, equipment and accessories, today reported results for the first quarter ended May 2, 2015.
Total net sales for the first quarter ended May 2, 2015 (13 weeks) increased 9.0% to $177.6 million from $162.9 million in the first quarter ended May 3, 2014 (13 weeks). Comparable sales for the thirteen weeks ended May 2, 2015 increased 3.0% compared to a comparable sales increase of 1.8% in the first quarter of 2014. Net income in the first quarter of fiscal 2015 was $2.8 million, or $0.09 per diluted share, compared to net income of $2.5 million, or $0.09 per diluted share, in the first quarter of the prior fiscal year. The results for the first quarter of 2015 include costs of approximately $1.1 million, or $0.03 per diluted share, for charges associated with the acquisition of Blue Tomato, and the results for the first quarter of 2014 include approximately $0.6 million, or $0.01 per diluted share, for charges associated with the acquisition of Blue Tomato.
At May 2, 2015, the Company's cash and current marketable securities increased 40.0% to $150.9 million compared to cash and current marketable securities of $107.8 million at May 3, 2014. The increase in cash and current marketable securities is a result of cash generated through operations, partially offset by capital expenditures.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, "We delivered first quarter results that were in-line with our expectations. While the pace of our domestic business slowed more than anticipated in April, this was offset by strong sales gains in Europe where growth momentum continues. Overall, we remain confident that our omnichannel strategy, authentic lifestyle positioning, and commitment to customer service provide us with strong competitive advantages that will deliver increased profitability and greater shareholder value over the long-term."
May 2015 Sales
Total net sales for the four-week period ended May 30, 2015 increased 4.1% to $51.5 million, compared to $49.5 million for the four-week period ended May 31, 2014. The Company's comparable sales decreased 2.2% for the four-week period ended May 30, 2015 compared to a comparable sales increase of 3.6% for the four-week period ended May 31, 2014.
Fiscal 2015 Second Quarter Outlook
The Company is introducing guidance for the three months ending August 1, 2015. Net sales are projected to be in the range of $179 to $183 million resulting in net income per diluted share of approximately $0.12 to $0.15, which includes an estimated $0.4 million, or approximately $0.01 per diluted share, for charges associated with the acquisition of Blue Tomato. This guidance is based on an anticipated comparable sales decrease in the (5%) to (3%) range for the second quarter of fiscal 2015. The Company currently intends to open approximately 57 new stores in fiscal 2015, including up to 7 stores in Canada and 6 stores in Europe.
A conference call will be held today to discuss first quarter fiscal 2015 results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (617) 399-5135 followed by the conference identification code of 40996399.
About Zumiez Inc.
Zumiez is a leading multi-channel specialty retailer of action sports related apparel, footwear, equipment and accessories, focusing on skateboarding, snowboarding, surfing, motocross and BMX for young men and women. As of May 30, 2015 we operated 627 stores, including 567 in the United States, 38 in Canada, and 22 in Europe. We operate under the name Zumiez and Blue Tomato. Additionally, we operate ecommerce web sites at www.zumiez.com and www.blue-tomato.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 annual report on Form 10-K for the year ended February 1, 2014 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 CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
------------------------------------------
% of % of
May 2, 2015 Sales May 3, 2014 Sales
----------- -------- ----------- --------
Net sales $ 177,610 100.0% $ 162,932 100.0%
Cost of goods sold 121,075 68.2% 112,399 69.0%
----------- -------- ----------- --------
Gross profit 56,535 31.8% 50,533 31.0%
Selling, general and
administrative expenses 52,409 29.5% 46,820 28.7%
----------- -------- ----------- --------
Operating profit 4,126 2.3% 3,713 2.3%
Interest income, net 205 0.1% 182 0.1%
Other income, net 115 0.1% 86 0.0%
----------- -------- ----------- --------
Earnings before income taxes 4,446 2.5% 3,981 2.4%
Provision for income taxes 1,676 0.9% 1,485 0.9%
----------- -------- ----------- --------
Net income $ 2,770 1.6% $ 2,496 1.5%
=========== ======== =========== ========
Basic earnings per share $ 0.10 $ 0.09
=========== ===========
Diluted earnings per share $ 0.09 $ 0.09
=========== ===========
Weighted average shares used in
computation of earnings per
share:
Basic 29,141 28,861
Diluted 29,486 29,213
ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
May 2, January 31, May 3,
2015 2015 2014
----------- ----------- -----------
Assets (Unaudited) (Unaudited)
Current assets
Cash and cash equivalents $ 11,806 $ 20,862 $ 21,079
Marketable securities 139,048 133,782 86,682
Receivables 14,401 12,653 11,478
Inventories 104,091 93,850 97,608
Prepaid expenses and other 11,117 11,651 9,874
Deferred tax assets 7,532 6,965 6,163
----------- ----------- -----------
Total current assets 287,995 279,763 232,884
Fixed assets, net 140,320 135,642 131,577
Goodwill 55,478 55,852 65,432
Intangible assets, net 12,460 13,062 17,803
Long-term other assets 9,294 9,386 6,759
----------- ----------- -----------
Total long-term assets 217,552 213,942 221,571
Total assets $ 505,547 $ 493,705 $ 454,455
=========== =========== ===========
Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable $ 39,525 $ 32,094 $ 42,989
Accrued payroll and payroll taxes 9,168 13,047 8,070
Income taxes payable 732 4,651 2,324
Deferred rent and tenant allowances 7,448 7,083 6,574
Other liabilities 29,276 24,572 20,471
----------- ----------- -----------
Total current liabilities 86,149 81,447 80,428
Long-term deferred rent and tenant
allowances 44,761 42,553 41,995
Long-term deferred tax liabilities 4,542 5,738 3,871
Long-term debt and other liabilities 5,669 4,443 4,022
----------- ----------- -----------
Total long-term liabilities 54,972 52,734 49,888
----------- ----------- -----------
Total liabilities 141,121 134,181 130,316
----------- ----------- -----------
Commitments and contingencies
Shareholders' equity
Preferred stock, no par value, 20,000
shares authorized; none issued and
outstanding -- -- --
Common stock, no par value, 50,000
shares authorized; 29,535 shares
issued and outstanding at May 2,
2015, and 29,418 shares issued and
outstanding at January 31, 2015 131,715 129,094 116,111
Accumulated other comprehensive income (11,767) (11,278) 7,011
Retained earnings 244,478 241,708 201,017
----------- ----------- -----------
Total shareholders' equity 364,426 359,524 324,139
----------- ----------- -----------
Total liabilities and shareholders'
equity $ 505,547 $ 493,705 $ 454,455
=========== =========== ===========
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
------------------------
May 2, 2015 May 3, 2014
----------- -----------
Cash flows from operating activities:
Net income $ 2,770 $ 2,496
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, amortization and accretion 7,797 7,009
Deferred taxes (622) (1,869)
Stock-based compensation expense 1,572 948
Excess tax benefit from stock-based compensation (689) 62
Other (76) (26)
Changes in operating assets and liabilities:
Receivables (1,617) (1,115)
Inventories (10,187) (10,011)
Prepaid expenses and other 605 (2,480)
Trade accounts payable 7,726 24,635
Accrued payroll and payroll taxes (3,891) (2,543)
Income taxes payable (3,355) (2,448)
Deferred rent and tenant allowances 2,444 4,374
Other liabilities (789) (2,462)
----------- -----------
Net cash provided by operating activities 1,688 16,570
----------- -----------
Cash flows from investing activities:
Additions to fixed assets (8,818) (6,781)
Purchases of marketable securities and other
investments (35,037) (11,714)
Sales and maturities of marketable securities and
other investments 29,074 22,100
----------- -----------
Net cash (used in) provided by investing
activities (14,781) 3,605
----------- -----------
Cash flows from financing activities:
Proceeds from revolving credit facilities 4,310 634
Payments on long-term debt and revolving credit
facilities (1,271) (81)
Repurchase of common stock - (19,553)
Proceeds from exercise of stock-based
compensation, net of withholding tax payments 367 242
Excess tax benefit (loss) from stock-based
compensation 689 (62)
----------- -----------
Net cash provided by (used in) financing
activities 4,095 (18,820)
----------- -----------
Effect of exchange rate changes on cash and cash
equivalents (58) 90
Net (decrease) increase in cash and cash
equivalents (9,056) 1,445
Cash and cash equivalents, beginning of period 20,862 19,634
----------- -----------
Cash and cash equivalents, end of period $ 11,806 $ 21,079
=========== ===========
Supplemental disclosure on cash flow
information:
Cash paid during the period for income taxes,
net of refunds $ 5,667 $ 5,783
Accrual for purchases of fixed assets 4,489 4,480
Company Contact: Brian Leith Director of Finance & Investor Relations Zumiez Inc. (425) 551-1500, ext. 1610 Investor Contact: ICR Brendon Frey (203) 682-8200