Finish Line Marks Yearly, Quarterly Profit Increases

Posted: Updated:

Indianapolis-based The Finish Line Inc. (Nasdaq: FINL) is reporting a fiscal full-year profit of nearly $77 million, compared to $71 million a year earlier. The athletic apparel retailer says fourth quarter profit was $43 million, up from more than $34 million during the same period one year ago. Finish Line is anticipating an increase in earnings per share for fiscal 2014. March 28, 2014

News Release

INDIANAPOLIS, Ind. - The Finish Line, Inc. (NASDAQ: FINL) today reported results for the fourth quarter and fiscal year 2014, representing the 13 and 52 weeks ended March 1, 2014.

Fourth Quarter Results:

Consolidated net sales were $518.9 million, an increase of 17.2% over the prior year period.

Finish Line comparable store sales increased 6.3%.

On a GAAP basis, diluted earnings per share increased 26.1% over the prior year to $0.87.

Non-GAAP diluted earnings per share, which excludes the impact of impairment charges and the gain on the sale of an investment, increased 14.5% to $0.87.

Fiscal Year 2014 Results:

Consolidated net sales were a record $1.67 billion, an increase of 15.7% over the prior year.

Finish Line comparable store sales increased 4.2%.

On a GAAP basis, diluted earnings per share increased 11.4% over the prior year to $1.56.

Non-GAAP diluted earnings per share, which excludes the impact of start up costs related to the launch of Macy’s business, impairment charges and the gain on the sale of an investment, increased 12.9% to $1.66.

“Our strong fourth quarter performance represented a great finish to a transformative year,” said Glenn Lyon, Chairman and Chief Executive Officer. “The successful execution of our consumer centric omni-channel strategy drove solid gains in our core business while growth initiatives contributed meaningfully to our record full year revenue and profits. We have a clear vision for building on our strong market position through innovative product, superior service, and effective consumer engagements. With that vision and our strong team, we move forward optimistic about our near and long-term growth prospects.”

Balance Sheet

As of March 1, 2014, consolidated merchandise inventories increased 24.8% to $304.2 million compared to $243.8 million as of March 2, 2013. The increase resulted primarily from the start-up of Macy’s business. For Finish Line, merchandise inventories increased 0.2%.

The company repurchased 200,000 shares of its common stock in the fourth quarter, totaling $5.1 million. For the full year, Finish Line repurchased 1.0 million shares totaling $22.6 million. The company has 3.9 million shares remaining on its current Board authorized repurchase plan.

As of March 1, 2014, the company had no interest-bearing debt and $229.1 million in cash and cash equivalents, compared to $227.0 million a year ago.

Outlook

For the fiscal year ending February 28, 2015, Finish Line expects comparable store sales to be up mid single digits and earnings per share to increase in the high single to low double digit range over fiscal year 2014 non-GAAP diluted earnings per share of $1.66.

Q4 Fiscal 2014 Conference Call Today, March 28, 2014 at 8:30 a.m.

The company will host a conference call for investors today, March 28, 2014, at 8:30 a.m. Eastern. To participate in the live conference call, dial 866-923-8645 (U.S. and Canada) or 660-422-4970 (International), conference ID #12828513. The live conference call will also be accessible online at www.finishline.com. A replay of the conference call can be accessed approximately two hours following the completion of the call by dialing 855-859-2056, conference ID #12828513. This recording will be made available through Monday, April 28, 2014. The replay will also be accessible online at www.finishline.com.

Annual Meeting July 17, 2014

The company's Board of Directors has established July 17, 2014 as the date of the 2014 annual meeting of shareholders, with May 16, 2014 as the record date for this meeting.

About The Finish Line, Inc.

The Finish Line, Inc. is a premium retailer of athletic shoes, apparel and accessories. Headquartered in Indianapolis, Finish Line has 644 stores in malls across the U.S., manages the athletic footwear inventory in 651 Macy’s stores including 210 branded or staffed shops, and employs more than 14,000 sneakerologists who help customers every day connect with their sport, their life and their style. Online shopping is available at www.finishline.com and www.macys.com. Mobile shopping is available at m.finishline.com. Follow Finish Line on Twitter at Twitter.com/FinishLine and “like” Finish Line on Facebook at Facebook.com/FinishLine.

Finish Line also operates the Running Specialty Group through a venture with Gart Capital Partners. This includes 49 specialty running shops in 11 states and the District of Columbia under The Running Company, Run On!, Blue Mile, Boulder Running Company, Roncker’s Running Spot and VA Runner banners. More information, including the particular states in which stores are located, is available at www.run.com.

Source: The Finish Line Inc.