View:
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): August 22, 2007
ZUMIEZ INC.
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Washington
- --------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation)
000-51300 91-1040022
- --------------------------------------------------------------------------------
(Commission File Number) (IRS Employer Identification No.)
6300 Merrill Creek Parkway, Suite B, Everett, Washington 98203
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(425) 551-1500
- --------------------------------------------------------------------------------
(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 (see General Instruction A.2. below):
|_| 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 August 22, 2007, Zumiez Inc. issued a press release (the "Press
Release") reporting its financial results for the second quarter ended August 4,
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 August 22, 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: August 22, 2007 By: /s/ Richard M. Brooks
---------------------------
Richard M. Brooks
President and Chief Executive Officer
Exhibit 99.1
Zumiez Inc. Announces Record Fiscal 2007 Second Quarter Results
Q2-07 Net Sales Increased 47.0% to $82.0 Million;
Comparable Store Sales Increased 11.6% in Second Quarter;
Q2-07 Diluted EPS Up 83.3% to $0.11;
Company Raises Fiscal 2007 EPS Guidance to $0.97 to $0.99
EVERETT, Wash.--(BUSINESS WIRE)--Aug. 22, 2007--Zumiez Inc.
(NASDAQ: ZUMZ) today reported results for the second quarter ended
August 4, 2007.
Total net sales for the second quarter (13 weeks) ended August 4,
2007 increased by 47.0% to $82.0 million from $55.8 million reported
in the second quarter ended July 29, 2006 (13 weeks). The company
posted net income for the quarter of $3.1 million or $0.11 per diluted
share versus $1.6 million or $0.06 per diluted share in the second
quarter of the prior fiscal year. Comparable store sales increased
11.6% for the second quarter of fiscal 2007 compared to a 12.6%
increase in the second quarter of fiscal 2006.
Total net sales for the first six months (26 week period) of
fiscal 2007 increased by 45.6% to $150.8 million from $103.5 million
reported in the first six months of the prior year. The company posted
net income of $4.7 million or $0.16 per diluted share in the first six
months of 2007 versus $2.8 million or $0.10 per diluted share in the
prior year. Comparable store sales increased 11.4% for the first six
months of fiscal 2007 compared to 15.8% for the first six months of
fiscal 2006.
Rick Brooks, President and Chief Executive Officer of Zumiez Inc.,
stated, "We are pleased to have reported another strong quarter, and
feel our unique retail model has Zumiez very well positioned as we
head into the back half of the year. We opened 12 new stores in the
second quarter and 31 stores year-to-date. We remain on track to open
50 new stores in fiscal 2007 and continue to believe that we can
eventually operate 800 Zumiez stores in the U.S."
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%. Given the stronger than planned results in the first
half of the year, the company is increasing its guidance for fiscal
2007 to $0.97 to $0.99 per diluted share, up from the previous
guidance 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 second quarter
results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com.
Participants may also dial (800) 295-4740 followed by the conference
identification code of 55107296.
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 August 4, 2007 we
operate 266 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 May 5, 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 CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended Six Months Ended
----------------------- -----------------------
August 4, July 29, August 4, July 29,
2007 2006 2007 2006
----------- ----------- ----------- -----------
Net sales $ 81,974 $ 55,756 $ 150,765 $ 103,541
Cost of goods sold 53,701 36,981 100,677 69,500
----------- ----------- ----------- -----------
Gross profit 28,273 18,775 50,088 34,041
Selling, general and
administrative
expenses 23,571 16,780 43,203 30,576
----------- ----------- ----------- -----------
Operating profit 4,702 1,995 6,885 3,465
Interest income, net 327 231 753 583
Other expense - (16) (1) (16)
----------- ----------- ----------- -----------
Earning before income
taxes 5,029 2,210 7,637 4,032
Provision for income
taxes 1,911 568 2,902 1,281
----------- ----------- ----------- -----------
Net income $ 3,118 $ 1,642 $ 4,735 $ 2,751
=========== =========== =========== ===========
Basic net income per
share $ 0.11 $ 0.06 $ 0.17 $ 0.10
=========== =========== =========== ===========
Diluted net income per
share $ 0.11 $ 0.06 $ 0.16 $ 0.10
=========== =========== =========== ===========
Weighted average shares
outstanding, Basic 28,540,326 27,396,890 28,478,125 27,299,864
Weighted average shares
outstanding, Diluted 29,186,270 28,903,588 29,094,234 28,768,373
ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
August 4, February 3, July 29,
2007 2007 2006
----------- ----------- -----------
(Unaudited) (Audited) (Unaudited)
Assets
Current assets
Cash and cash equivalents $ 6,139 $ 8,161 $ 4,221
Marketable Securities 27,283 43,816 10,366
Receivables 13,384 5,223 6,196
Inventory 61,803 42,157 51,783
Prepaid expenses and other 4,457 3,593 3,610
Deferred tax assets 1,900 1,551 1,485
----------- ----------- -----------
Total current assets 114,966 104,501 77,661
Leasehold improvements and
equipment, net 62,255 49,889 45,447
Goodwill 13,154 12,904 11,635
Deferred tax assets 433 - -
----------- ----------- -----------
Total long-term assets 75,842 62,793 57,082
Total assets $ 190,808 $ 167,294 $ 134,743
=========== =========== ===========
Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable $ 38,405 $ 24,164 $ 30,075
Book Overdraft - 6,083 -
Accrued payroll and payroll taxes 3,318 4,784 3,317
Income taxes payable - 6,598 -
Current portion of deferred rent
and tenant allowances 1,817 1,377 1,180
Other accrued liabilities 6,575 6,566 7,860
----------- ----------- -----------
Total current liabilities 50,115 49,572 42,432
Long-term deferred rent and tenant
allowances, less current portion 15,470 12,069 10,226
Deferred tax liabilities - 841 807
----------- ----------- -----------
Total long-term liabilities 15,470 12,910 11,033
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;
28,688,861 shares issued and
outstanding at August 4, 2007,
27,880,512 shares issued and
outstanding at February 3, 2007,
and 27,553,420 issued and
outstanding at July 29, 2006 60,983 45,311 39,885
Accumulated other comprehensive
loss (10) (14) (16)
Retained earnings 64,250 59,515 41,409
----------- ----------- -----------
Total shareholders' equity 125,223 104,812 81,278
Total liabilities and
shareholders' equity $ 190,808 $ 167,294 $ 134,743
=========== =========== ===========
CONTACT: Zumiez Inc.
Trevor Lang, 425-551-1500 ext. 1564
Chief Financial Officer
or
Investors:
Integrated Corporate Relations
David Griffith/Chad Jacobs, 203-682-8200