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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 23, 2007
ZUMIEZ INC.
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(Exact Name of Registrant as Specified in Its Charter)
Washington
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(State or Other Jurisdiction of Incorporation)
000-51300 91-1040022
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(Commission File Number) (IRS Employer Identification No.)
6300 Merrill Creek Parkway, Suite B, Everett, Washington 98203
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(Address of Principal Executive Offices) (Zip Code)
(425) 551-1500
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(Registrant's Telephone Number, Including Area Code)
Not Applicable
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(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:
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On May 23, 2007, Zumiez Inc. issued a press release (the "Press Release")
reporting its financial results for the first quarter ended May 5, 2007, 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
99.1. Press Release of Zumiez Inc., dated May 23, 2007.
SIGNATURES
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.
ZUMIEZ INC.
(Registrant)
Date: May 23, 2007 By: /s/ Richard M. Brooks
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Richard M. Brooks
President and Chief Executive Officer
Exhibit 99.1
Zumiez Inc. Announces Record Fiscal 2007 First Quarter Results
Q1-07 Net Sales Increased 44.0% to $68.8 Million;
Comparable Store Sales Increased 11.3% in First Quarter;
Q1-07 Diluted EPS Up 50.0% to $0.06;
Company Reiterates Fiscal 2007 EPS Guidance of $0.94 to $0.96
EVERETT, Wash.--(BUSINESS WIRE)--May 23, 2007--Zumiez Inc.
(NASDAQ: ZUMZ) today reported results for the first quarter ended May
5, 2007.
Total net sales for the first quarter (13 weeks) ended May 5, 2007
increased by 44.0% to $68.8 million from $47.8 million reported in the
first quarter (13 weeks) of the prior fiscal year. The company posted
net income for the quarter of $1.6 million or $0.06 per diluted share
versus $1.1 million or $0.04 per diluted share in the first quarter of
the prior fiscal year. Comparable store sales increased 11.3% for the
first quarter of fiscal 2007 compared to a 19.7% increase in the first
quarter of fiscal 2006.
Rick Brooks, President and Chief Executive Officer of Zumiez Inc.,
stated, "With strong increases in sales and earnings, we are pleased
with our first quarter operating results and are confident that we are
well positioned for another great year at Zumiez. We opened 19 new
stores in the first quarter, accelerating our store openings from
prior years. We remain on track to open 50 new stores in fiscal 2007,
most of which will be opened by the end of the third quarter."
2007 Outlook
The company remains focused on its long-term financial targets of
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%. As such, the company is reaffirming its previous
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 first quarter
results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com.
Participants may also dial (800) 591-6945 followed by the conference
identification code of 27106145.
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 May 5, 2007 we operate
254 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-K for the year ended February 3, 2007 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
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May 5, 2007 April 29, 2006
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Net sales $ 68,791 $ 47,785
Cost of goods sold 46,976 32,519
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Gross profit 21,815 15,266
Selling, general and administrative
expenses 19,632 13,796
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Operating profit 2,183 1,470
Interest income, net 426 352
Other income (expense), net (1) --
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Earnings before income taxes 2,608 1,822
Provision for income taxes 991 713
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Net income $ 1,617 $ 1,109
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Basic net income per share $ 0.06 $ 0.04
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Diluted net income per share $ 0.06 $ 0.04
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Weighted average shares outstanding,
Basic 27,975,278 27,272,799
Weighted average shares outstanding,
Diluted 29,008,312 28,631,942
ZUMIEZ INC.
CONDENSED BALANCE SHEETS
(in thousands, except share amounts)
(Unaudited)
May 5, February 3, April 29,
2007 2007 2006
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Assets
Current assets
Cash and cash equivalents $ 5,827 $ 8,161 $ 1,770
Marketable Securities 32,144 43,816 36,254
Receivables 10,980 5,223 3,869
Inventory 50,285 42,157 38,095
Prepaid expenses and other 3,603 3,593 336
Deferred tax assets 1,619 1,551 1,093
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Total current assets 104,458 104,501 81,417
Leasehold improvements and equipment,
net 55,474 49,889 37,415
Goodwill 12,904 12,904 --
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Total long-term assets 68,378 62,793
Total assets $172,836 $ 167,294 $ 118,832
========= =========== ==========
Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable $ 28,430 $ 24,164 $ 21,161
Book overdraft 2,756 6,083 --
Accrued payroll and payroll taxes 3,750 4,784 3,311
Income taxes payable -- 6,598 71
Current portion of deferred rent and
tenant allowances 1,584 1,377 978
Other accrued liabilities 6,227 6,566 7,359
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Total current liabilities 42,747 49,572 32,880
Long-term deferred rent and tenant
allowances, less current portion 14,084 12,069 8,186
Deferred tax liabilities 227 841 1,252
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Total long-term liabilities 14,311 12,910 9,438
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;
28,381,694 shares issued and
outstanding at May 5, 2007 and
27,880,512 shares issued and
outstanding at February 3, 2007 and
shares 27,357,481 issued and
outstanding at April 29, 2006. 54,657 45,311 36,780
Accumulated other comprehensive
(loss) (11) (14) (33)
Retained earnings 61,132 59,515 39,767
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Total shareholders' equity 115,778 104,812 76,514
Total liabilities and shareholders'
equity $172,836 $ 167,294 $ 118,832
========= ========= =========
ZUMIEZ INC.
CONDENSED CASH FLOWS
(in thousands)
(Unaudited)
Three Months Ended
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May 5, 2007 April 29, 2006
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Cash flows from operating activities
Net income $ 1,617 $ 1,109
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation 3,220 2,259
Deferred tax expense (682) (436)
Stock compensation expense 1,042 337
Loss on disposal of assets 11 1
Excess tax benefit from stock options (7,247) --
Changes in operating assets and
liabilities
Receivables (5,757) (123)
Inventory (6,331) (8,370)
Prepaid expenses (10) 375
Trade accounts payable 2,469 3,371
Accrued payroll and payroll taxes (1,034) (1,077)
Income taxes payable 649 (3,238)
Other accrued liabilities (338) 2,981
Excess tax benefit on stock options -- 972
Deferred rent (352) 19
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Net cash used in operating activities (12,743) (1,820)
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Cash flows from investing activities
Additions to leasehold improvements and
equipment (6,197) (3,546)
Purchases of marketable securities (24,876) (36,242)
Sales and maturities of marketable
securities 36,506 38,201
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Net cash provided by (used in) investing
activities 5,433 (1,587)
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Cash flows from financing activities
Change in book overdraft (3,327) --
Proceeds from exercise of stock options 1,056 440
Excess tax benefit from stock options 7,247 --
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Net cash provided by financing activities 4,976 440
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Net decrease in cash and cash equivalents (2,334) (2,967)
Cash and cash equivalents, Beginning of
period 8,161 4,737
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Cash and cash equivalents, End of period $ 5,827 $ 1,770
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Supplemental disclosure of cash flow
information
Cash paid during the period for interest $ 1 $ --
Cash paid during the period for income
taxes 7,020 3,497
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CONTACT: Investor:
Integrated Corporate Relations
David Griffith/Chad Jacobs, 203-682-8200