Finish Line Annual Profit Ticks Higher
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based The Finish Line Inc. (Nasdaq: FINL) is reporting a fiscal 2015 profit of $82 million, compared to $77 million in 2014. Chief Executive Officer Glenn Lyon says the company's fourth quarter performance was a “solid finish to a disappointing year.” March 30, 2015
News Release
INDIANAPOLIS (Mar. 27, 2015) – The Finish Line, Inc. (NASDAQ: FINL) today reported results for the fourth quarter and fiscal year 2015, representing the thirteen and fifty-two weeks ended February 28, 2015.
For the thirteen weeks ended February 28, 2015:
Consolidated net sales were $551.3 million, an increase of 6.3% over the prior year period.
Finish Line comparable store sales increased 2.6%.
On a GAAP basis, diluted earnings per share were $0.87.
Non-GAAP diluted earnings per share, which excludes the impact of impairment charges and store closing costs were $0.88.
For the fifty-two weeks ended February 28, 2015:
Consolidated net sales were a record $1.82 billion, an increase of 9.0% over the prior year.
Finish Line comparable store sales increased 3.2%.
On a GAAP basis, diluted earnings per share increased 9.0% over the prior year to $1.70.
Non-GAAP diluted earnings per share, which excludes the impact of impairment charges and store closing costs, employee resignation costs, and the recognition of a one-time tax benefit were $1.67.
“Our fourth quarter results, especially for our core business, represent a solid finish to a disappointing year,” said Glenn Lyon, Chairman and Chief Executive Officer of Finish Line. “We quickly reduced expenses and gained better leverage to deliver earnings ahead of plan. At the same time, we made progress rebalancing our inventory to better align with customer demand. While there is still work to be done to achieve operational excellence throughout the Company, we have a sound plan in place to improve profitability and continue our long track record of returning increased value to our shareholders.”
Balance Sheet
As of February 28, 2015, consolidated merchandise inventories increased 13.2% to $344.4 million compared to $304.2 million as of March 1, 2014.
The company repurchased 0.7 million shares of common stock in the fourth quarter, totaling $15.9 million. For the full year, Finish Line repurchased 2.7 million shares totaling $68.1 million. The Board has authorized a new 5 million share repurchase plan. The new plan will commence upon completion of the current plan which has 1.2 million shares remaining.
As of February 28, 2015, the company had no interest-bearing debt and $148.2 million in cash and cash equivalents, compared to $229.1 million as of March 1, 2014.
Outlook
For the fiscal year ending February 27, 2016, Finish Line expects comparable store sales to be up in the low single to mid single digit range and earnings per share to increase in the low single to mid single digit range over fiscal year 2015 non-GAAP diluted earnings per share of $1.67.
Annual Meeting July 16, 2015
The company's Board of Directors has established July 16, 2015 as the date of the 2015 annual meeting of shareholders, with May 15, 2015 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 approximately 1,030 Finish Line branded locations primarily in U.S. malls and shops inside Macy's department stores 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. Track loyalty points and find store and product information with the free Finish Line app downloadable for iOS and Android customers.
Source: The Finish Line Inc.