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: September 05, 2013
(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)
|
Item 2.02. Results of Operations and Financial Condition On September 5, 2013, Zumiez Inc. issued a press release (the "Press Release") reporting its financial results for the second quarter ended August 3, 2013, 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.
|
|
Dated: September 05, 2013 |
ZUMIEZ INC.
By: /s/ Richard M. Brooks |
|
|
|
| Exhibit No. | Description |
| 99.1 | Press Release of Zumiez Inc. dated September 05, 2013 |
Company Reports August Sales
LYNNWOOD, WA -- (Marketwired - September 05, 2013) - Zumiez Inc. (NASDAQ: ZUMZ) a leading specialty retailer of action sports related apparel, footwear, equipment and accessories, today reported results for the second quarter ended August 3, 2013.
Total net sales for the second quarter ended August 3, 2013 (13 weeks) increased 16.9% to $157.9 million from $135.1 million in the quarter ended July 28, 2012 (13 weeks). Comparable store sales for the thirteen weeks ended August 3, 2013 increased 0.9% on top of a comparable store sales increase of 9.5% for the thirteen weeks ended July 28, 2012. Net income in the second quarter of fiscal 2013 was $4.7 million, or $0.16 per diluted share, compared to net income of $2.1 million, or $0.07 per diluted share, in the second quarter of the prior fiscal year. The results for fiscal 2013 include costs of approximately $1.7 million, or $0.04 per diluted share, for charges associated with the acquisition of Blue Tomato, and the results for fiscal 2012 include approximately $2.4 million, or $0.06 per diluted share, of Blue Tomato acquisition related costs, and approximately $1.3 million, or $0.03 per diluted share, of costs associated with the relocation of the Company's ecommerce fulfillment center to Edwardsville, Kansas and its corporate offices to Lynnwood, Washington from Everett, Washington.
Total net sales for the six months (26 weeks) ended August 3, 2013 increased 15.6% to $306.4 million from $265.0 million reported for the six months (26 weeks) ended July 28, 2012. Comparable store sales increased 0.2% for the twenty six weeks ended August 3, 2013 on top of a comparable store sales increase of 11.1% for the twenty six weeks ended July 28, 2012.
The Company reported net income of $7.2 million or $0.24 per diluted share in the first six months of fiscal 2013 compared to net income for the first six months of the prior fiscal year of $6.6 million or $0.21 per diluted share. Results for the first six months of fiscal 2013 include approximately $3.4 million, or $0.09 per diluted share, for charges associated with the acquisition of Blue Tomato. Results for the first six months of fiscal 2012 include approximately $2.8 million, or $0.08 per diluted share, of Blue Tomato acquisition related costs, and approximately $1.6 million, or $0.03 per diluted share, of costs associated with the relocation of the Company's ecommerce fulfillment center to Edwardsville, Kansas and corporate offices to Lynnwood, Washington from Everett, Washington.
At August 3, 2013, the Company had cash and current marketable securities of $95.0 million compared to cash and current marketable securities of $96.8 million at July 28, 2012. The decrease in cash and current marketable securities is a result of capital expenditures and stock repurchases, offset by cash generated through operations.
Rick Brooks, Chief Executive Officer of Zumiez Inc., stated, "We are pleased with our second quarter earnings results in what proved to be a challenging retail environment. We believe we have compelling merchandise assortments and our efforts to enhance our omni-channel capabilities are yielding positive gains. With significant expansion opportunities still ahead of us, we continue to invest in our people and infrastructure in order to best position the company to deliver sustainable sales and earnings growth and shareholder value for years to come."
August 2013 Sales
Total net sales for the four-week period ended August 31, 2013 increased 14.3% to $85.9 million, compared to $75.2 million for the four-week period ended August 25, 2012. The Company's comparable store sales increased 3.0% for the four-week period ended August 31, 2013 compared to a comparable store sales increase of 3.7% for the four-week period ended August 25, 2012.
Fiscal 2013 Third Quarter Outlook
The Company is introducing guidance for the three months ending November 2, 2013. Net sales are projected to be in the range of $187 to $191 million resulting in net income per diluted share of approximately $0.39 to $0.43, which includes an estimated $1.6 million, or approximately $0.04 per diluted share, for charges associated with the acquisition of Blue Tomato. This guidance is based on anticipated comparable store sales in the range of 0% to 2% for the third quarter of fiscal 2013.
The Company currently intends to open 58 new stores in fiscal 2013, including 9 stores in Canada and 5 stores in Europe.
A conference call will be held today to discuss second quarter fiscal 2013 results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com. Participants may also dial (617)-399-5121 followed by the conference identification code of 46557503.
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 August 31, 2013 we operated 537 stores including, 501 in the United States, 28 in Canada, and 8 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 quarterly report on Form 10-Q for the quarter ended May 4, 2013 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 INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
--------------------------------------
August 3, % of July 28, % of
2013 Sales 2012 Sales
--------- ------ ---------- -------
Net sales $ 157,858 100.0% $ 135,066 100.0%
Cost of goods sold 102,738 65.1% 88,641 65.6%
--------- ------ ---------- -------
Gross profit 55,120 34.9% 46,425 34.4%
Selling, general and administrative
expenses 47,285 29.9% 42,647 31.6%
--------- ------ ---------- -------
Operating profit 7,835 5.0% 3,778 2.8%
Interest income, net 158 0.1% 427 0.3%
Other (expense) income, net (174) (0.1%) 611 0.5%
--------- ------ ---------- -------
Earnings before income taxes 7,819 5.0% 4,816 3.6%
Provision for income taxes 3,080 2.0% 2,730 2.1%
--------- ------ ---------- -------
Net income $ 4,739 3.0% $ 2,086 1.5%
========= ====== ========== =======
Basic earnings per share $ 0.16 $ 0.07
========= ==========
Diluted earnings per share $ 0.16 $ 0.07
========= ==========
Weighted average shares used in
computation of earnings per share:
Basic 29,842 30,922
Diluted 30,232 31,460
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Six Months Ended
--------------------------------------
August 3, % of July 28, % of
2013 Sales 2012 Sales
--------- ------ ---------- -------
Net sales $ 306,354 100.0% $ 264,965 100.0%
Cost of goods sold 203,262 66.3% 176,439 66.6%
--------- ------ ---------- -------
Gross profit 103,092 33.7% 88,526 33.4%
Selling, general and administrative
expenses 91,228 29.8% 77,486 29.2%
--------- ------ ---------- -------
Operating profit 11,864 3.9% 11,040 4.2%
Interest income, net 373 0.1% 917 0.3%
Other (expense) income, net (320) (0.1%) 628 0.2%
--------- ------ ---------- -------
Earnings before income taxes 11,917 3.9% 12,585 4.7%
Provision for income taxes 4,680 1.5% 5,972 2.2%
--------- ------ ---------- -------
Net income $ 7,237 2.4% $ 6,613 2.5%
========= ====== ========== =======
Basic earnings per share $ 0.24 $ 0.21
========= ==========
Diluted earnings per share $ 0.24 $ 0.21
========= ==========
Weighted average shares used in
computation of earnings per share:
Basic 29,770 30,847
Diluted 30,221 31,439
ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
August 3, February 2, July 28,
2013 2013 2012
----------- ----------- -----------
Assets (Unaudited) (Unaudited)
Current assets
Cash and cash equivalents $ 19,098 $ 17,579 $ 12,610
Marketable securities 75,901 85,593 84,212
Receivables 15,597 9,467 12,002
Inventories 113,249 77,598 99,699
Prepaid expenses and other 11,474 9,192 9,909
Deferred tax assets 4,849 3,885 4,019
----------- ----------- -----------
Total current assets 240,168 203,314 222,451
Fixed assets, net 124,569 115,474 111,411
Goodwill 63,071 64,576 59,547
Intangible assets, net 18,727 20,480 19,383
Long-term other assets 4,428 5,254 5,353
----------- ----------- -----------
Total long-term assets 210,795 205,784 195,694
Total assets $ 450,963 $ 409,098 $ 418,145
=========== =========== ===========
Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable $ 53,596 $ 16,052 $ 57,630
Accrued payroll and payroll taxes 9,674 11,057 7,637
Income taxes payable 111 6,957 1,257
Deferred rent and tenant allowances 5,633 4,901 4,579
Other liabilities 20,546 18,232 18,566
----------- ----------- -----------
Total current liabilities 89,560 57,199 89,669
Long-term deferred rent and tenant
allowances 41,359 36,928 36,329
Long-term deferred tax liabilities 3,567 5,544 5,256
Long-term debt and other liabilities 7,062 6,006 4,454
----------- ----------- -----------
Total long-term liabilities 51,988 48,478 46,039
----------- ----------- -----------
Total liabilities 141,548 105,677 135,708
----------- ----------- -----------
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; 30,251 shares
issued and outstanding at August 3,
2013, 30,114 shares issued and
outstanding at February 2, 2013 and
31,353 shares issued and outstanding
at July 28, 2012 113,569 108,360 104,862
Accumulated other comprehensive income
(loss) 3,238 6,010 (1,768)
Retained earnings 192,608 189,051 179,343
----------- ----------- -----------
Total shareholders' equity 309,415 303,421 282,437
----------- ----------- -----------
Total liabilities and shareholders'
equity $ 450,963 $ 409,098 $ 418,145
=========== =========== ===========
ZUMIEZ INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
----------------------
August 3, July 28,
2013 2012
---------- ----------
Cash flows from operating activities:
Net income $ 7,237 $ 6,613
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, amortization and accretion 12,694 10,658
Deferred taxes (1,384) (1,177)
Stock-based compensation expense 3,165 3,037
Excess tax benefit from stock-based compensation (1,168) (2,065)
Lease termination costs 100 920
Other 182 (183)
Changes in operating assets and liabilities:
Receivables (5,457) (4,452)
Inventories (36,064) (26,896)
Prepaid expenses and other (3,057) (1,904)
Trade accounts payable 35,315 33,583
Accrued payroll and payroll taxes (1,344) (2,156)
Income taxes payable (6,415) (4,503)
Deferred rent and tenant allowances 5,263 4,158
Other liabilities 809 (1,120)
---------- ----------
Net cash provided by operating activities 9,876 14,513
---------- ----------
Cash flows from investing activities:
Additions to fixed assets (14,505) (21,904)
Acquisitions, net of cash acquired - (69,685)
Purchases of marketable securities and other
investments (38,991) (65,655)
Sales and maturities of marketable securities and
other investments 47,760 138,555
---------- ----------
Net cash used in investing activities (5,736) (18,689)
---------- ----------
Cash flows from financing activities:
Payments on long-term debt (153) (109)
Repurchase of common stock (4,310) -
Proceeds from exercise of stock-based compensation,
net of withholding tax payments 876 347
Excess tax benefit from stock-based compensation 1,168 2,065
---------- ----------
Net cash (used in) provided by financing activities (2,419) 2,303
---------- ----------
Effect of exchange rate changes on cash and cash
equivalents (202) (296)
Net increase (decrease) in cash and cash equivalents 1,519 (2,169)
Cash and cash equivalents, beginning of period 17,579 14,779
---------- ----------
Cash and cash equivalents, end of period $ 19,098 $ 12,610
========== ==========
Supplemental disclosure on cash flow information:
Cash paid during the period for income taxes $ 12,428 $ 11,624
Accrual for purchases of fixed assets 7,514 7,355
Company Contact: Brian Leith Director of Finance & Investor Relations Zumiez Inc. (425) 551-1500, ext. 1610 Investor Contact: ICR Brendon Frey (203) 682-8200