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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): November 29, 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 (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 November 29, 2007, Zumiez Inc. issued a press release (the "Press
Release") reporting its financial results for the third quarter ended November
3, 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 November 29, 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: November 29, 2007 By: /s/ Richard M. Brooks
------------------------
Richard M. Brooks
President and Chief Executive Officer
Exhibit 99.1
Zumiez Inc. Announces Record Fiscal 2007 Third
Quarter Results
Q3-07 Net Sales Increased 26.5% to $104.0 Million;
Comparable Store Sales Increased 13.2% in Third Quarter;
Q3-07 Diluted EPS Up 16.7% to $0.28;
Company Reaffirms Fiscal 2007 EPS Guidance of $0.92 to $0.94
EVERETT, Wash.--(BUSINESS WIRE)--Nov. 29, 2007--Zumiez Inc.
(NASDAQ: ZUMZ) today reported results for the third quarter ended
November 3, 2007.
Total net sales for the third quarter (13 weeks) ended November 3,
2007 increased by 26.5% to $104.0 million from $82.3 million reported
in the third quarter ended October 28, 2006 (13 weeks). The company
posted net income for the quarter of $8.1 million or $0.28 per diluted
share versus $6.8 million or $0.24 per diluted share in the third
quarter of the prior fiscal year. Comparable store sales increased
13.2% for the third quarter of fiscal 2007 compared to a 10.7%
increase in the third quarter of fiscal 2006.
Total net sales for the first nine months (39 week period) of
fiscal 2007 increased by 37.1% to $254.8 million from $185.8 million
reported in the first nine months of the prior year. The company
posted net income of $12.9 million or $0.44 per diluted share in the
first nine months of 2007 versus $9.6 million or $0.33 per diluted
share in the prior year. Comparable store sales increased 12.2% for
the first nine months of fiscal 2007 compared to 13.6% for the first
nine months of fiscal 2006.
Rick Brooks, President and Chief Executive Officer of Zumiez Inc.,
stated, "We opened 17 new stores in the third quarter and 48 stores
year-to-date. In November, we reached our goal of 50 new stores in
fiscal 2007, and continue to believe that we can eventually operate
800 Zumiez stores in the U.S. We remain optimistic for the long term
prospects of Zumiez as we have cultivated a unique brand in the action
sports industry. We believe the investments we are making, along with
our proven strategy, will continue to drive quality long-term growth."
2007 Outlook
The company is reiterating its diluted earnings per share guidance
for fiscal 2007 of $0.92 to $0.94. Weighted average diluted shares for
the fiscal year are expected to be approximately 29,400,000.
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, weather and the impact of other business variables and
risks. Our business outlook is based on our current expectations and
includes "forward-looking statements" within the meaning of Section
27A of the Securities Act and Section 21E of the Exchange Act.
Although the Company believes the comments reflected in such
forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to be correct.
A conference call will be held today to discuss third quarter
results and will be webcast at 5:00 p.m. ET on http://ir.zumiez.com.
Participants may also dial (866) 825-1692 followed by the conference
identification code of 88065282.
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 November 3, 2007 we
operate 283 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 August 4, 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 Nine Months Ended
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November 3, October 28, November 3, October 28,
2007 2006 2007 2006
----------- ------------- ----------- ------------
Net sales $104,045 $82,258 $254,810 $185,799
Cost of goods sold 65,466 51,994 166,143 121,494
----------- ------------- ----------- ------------
Gross profit 38,579 30,264 88,667 64,305
Selling, general and
administrative
expenses 25,857 19,343 69,060 49,919
----------- ------------- ----------- ------------
Operating profit 12,722 10,921 19,607 14,386
Interest income, net 420 230 1,171 813
Other income
(expense) 2 - 3 (16)
----------- ------------- ----------- ------------
Earnings before
income taxes 13,144 11,151 20,781 15,183
Provision for income
taxes 4,995 4,324 7,897 5,605
----------- ------------- ----------- ------------
Net income $ 8,149 $ 6,827 $ 12,884 $ 9,578
=========== ============= =========== ============
Basic net income per
share $ 0.28 $ 0.25 $ 0.45 $ 0.35
=========== ============= =========== ============
Diluted net income
per share $ 0.28 $ 0.24 $ 0.44 $ 0.33
=========== ============= =========== ============
Weighted average
shares used in
computation of
earnings per share:
Basic 28,862,951 27,600,574 28,477,471 27,454,193
Diluted 29,554,774 28,861,871 29,386,951 28,756,468
ZUMIEZ INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
November 3, February 3, October 28,
2007 2007 2006
----------- ----------- -----------
(Unaudited) (Audited) (Unaudited)
Assets
Current assets
Cash and cash equivalents $ 6,920 $ 8,161 $2,111
Marketable securities 30,661 43,816 17,835
Receivables 5,450 5,223 5,816
Income tax receivable 7,856 - -
Inventory 67,871 42,157 56,694
Prepaid expenses and other 4,817 3,593 965
Deferred tax assets 1,157 1,551 1,618
----------- ----------- -----------
Total current assets 124,732 104,501 85,039
Leasehold improvements and
equipment, net 66,563 49,889 48,930
Goodwill 13,154 12,904 12,766
Deferred tax assets 1,069 - -
----------- ----------- -----------
Total long-term assets 80,786 62,793 61,696
Total assets $ 205,518 $167,294 $146,735
=========== =========== ===========
Liabilities and Shareholders'
Equity
Current liabilities
Trade accounts payable $ 34,552 $ 24,164 $32,002
Book overdraft - 6,083 -
Accrued payroll and payroll taxes 4,432 4,784 2,296
Income taxes payable - 6,598 2,974
Current portion of deferred rent
and tenant allowances 2,071 1,377 1,331
Other accrued liabilities 6,133 6,566 6,262
----------- ----------- ---------
Total current liabilities 47,188 49,572 44,865
Long-term deferred rent and tenant
allowances, less current portion 17,657 12,069 11,302
Deferred tax liabilities - 841 602
----------- ----------- ---------
Total long-term liabilities 17,657 12,910 11,904
Total liabilities 64,845 62,482 56,769
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;
29,002,852 shares issued and
outstanding at November 3, 2007,
27,880,512 shares issued and
outstanding at February 3, 2007,
and 27,640,664 issued and
outstanding at October 28, 2006 68,195 45,311 41,734
Accumulated other comprehensive
income (loss) 79 (14) (4)
Retained earnings 72,399 59,515 48,236
----------- ----------- ---------
Total shareholders' equity 140,673 104,812 89,966
Total liabilities and shareholders'
equity 205,518 $167,294 $146,735
=========== =========== ===========
CONTACT: Zumiez Inc.
Trevor Lang, Chief Financial Officer
425-551-1500 ext. 1564
or
Investors:
Integrated Corporate Relations
David Griffith/Chad Jacobs
203-682-8200