PLAINFIELD, Ind., May 23, 2002 (BUSINESS WIRE) -- Galyan's Trading Company, Inc. (GLYN, Trade) today announced financial results for the fiscal 2002 first quarter ended May 4, 2002.
As previously reported, fiscal first quarter 2002 net sales increased 29.1 percent to $113.5 million from $87.9 million in the same quarter last year. Comparable store sales for the fiscal first quarter of 2002 increased 5.1 percent, compared with an increase of 3.3 percent in the fiscal first quarter a year ago. The comparable store sales increase was primarily driven by strong results in apparel and footwear, led by women's, kid's and junior's categories, and the freshness of the spring assortments.
Gross margin improved to 27.8 percent of net sales in the fiscal first quarter of 2002 versus 27.1 percent in the first quarter last year, reflecting the leveraging of occupancy, buying and distribution expenses. Selling, general and administrative expenses were 28.0 percent of net sales during the fiscal first quarter of 2002 compared with 27.8 percent of net sales in the same fiscal quarter last year. This increase resulted from higher marketing and new store pre-opening expenses as a result of opening two stores during the first quarter of 2002 compared with one in the first quarter of 2001, which were partially offset by the adoption of Financial and Accounting Standards No.142 Goodwill and Other Intangible Assets (FAS 142).
For the first quarter 2002, the net loss per share improved to ($0.02) per share on a fully diluted basis, better than the First Call consensus estimate loss of ($0.04) and the Company's guidance of ($0.03) to ($0.05) loss per fully diluted share, on a net loss of ($414,000). This result is compared with a fully diluted net loss of ($0.42) per share, on a net loss of ($4.4) million, as reported for the fiscal first quarter of 2001. The loss in the year ago quarter included a ($1.6) million, or ($0.15) per share fully diluted, extraordinary loss on the early extinguishment of debt. The improvement versus our previous guidance reflects higher than expected comparable store sales growth and gross margin, which more than offset increased expenses for marketing and pre-opening expenses.
Robert B. Mang, Chief Executive Officer and Chairman of the Company, commented, "We are pleased with our better than expected bottom line results in the first quarter. Our results were driven by solid operating performance including sales growth, expanding gross margin and SG&A spending in line with our guidance. We remain comfortable with our earnings per share guidance for the fiscal 2002 year of $1.10 to $1.15 on a fully diluted basis."
During the fiscal first quarter of 2002, the first two stores opened as part of the Company's accelerated plan to launch nine new stores during fiscal 2002. These two new stores increased Galyan's presence in the Chicago, Illinois and Denver, Colorado markets. Leases for the remaining seven new stores planned for fiscal 2002 have been executed for store openings in Michigan, Nevada, Texas, Illinois, Colorado, Massachusetts and Missouri. By the end of fiscal 2002, Galyan's expects to have 35 stores open compared with 26 stores at the end of fiscal 2001, representing a 34 percent increase in total store gross square footage.
Robert B. Mang, Chief Executive Officer and Chairman of the Company, will host the Company's quarterly conference call today, May 23, 2002, to discuss the results and outlook at 10:00 a.m. ET. The conference call will be available to all interested parties by phone at (888) 454-6808 or via a webcast from www.ccbn.com.
A replay of the call will be available until 7:00 p.m. ET on Thursday, May 30, 2002, at (800) 945-6396, or over the Internet at www.ccbn.com through May 30th.
Galyan's is a specialty retailer that offers a broad range of products that appeal to consumers with active lifestyles, from the casual consumer to the serious sports enthusiast. Galyan's operates 28 stores in 14 states and offers outdoor and athletic equipment, apparel, footwear and accessories, as well as casual apparel and footwear.
The information made available in this press release contains certain forward-looking statements which reflect Galyan's Trading Company, Inc.'s current view of future events and financial performance. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are subject to risks and uncertainties which could cause the Company's future results of operations to differ materially from historical results or current expectations. The risks and uncertainties which could cause results to differ materially from those expressed in the forward-looking statements are described in the Company's report on Form 10-K for the fiscal year ended February 2, 2002, as filed with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
-- Financial Tables Follow --
Galyan's Trading Company, Inc. Consolidated Statements of Operations For the Three Month Periods ended May 4, 2002 and May 5, 2001 (in thousands, except per share data) For the three month periods ended ------------------------ May 4, May 5, 2002 2001 ----------- ----------- Net sales $ 113,457 $ 87,878 Cost of sales 81,951 64,048 ----------- ----------- Gross profit 31,506 23,830 Selling, general and administrative expenses 31,811 24,393 ----------- ----------- Operating loss (305) (563) Interest expense 506 3,530 Interest income (121) (28) ----------- ----------- Loss before extraordinary loss and income tax benefit (690) (4,065) Income tax benefit (276) (1,270) ----------- ----------- Loss before extraordinary loss (414) (2,795) Extraordinary loss on early extinguishment of debt (net of income tax benefit of $1,048) - (1,572) ----------- ----------- Net loss $ (414) $ (4,367) =========== =========== Basic loss per share Loss per share before extraordinary loss $ (0.02) $ (0.27) Per share extraordinary loss - (0.15) ----------- ----------- Basic loss per share $ (0.02) $ (0.42) =========== =========== Diluted loss per share Loss per share before extraordinary loss $ (0.02) $ (0.27) Per share extraordinary loss - (0.15) ----------- ----------- Diluted loss per share $ (0.02) $ (0.42) =========== =========== Weighted average shares used in calculating loss per common share: Basic 17,035,159 10,492,498 =========== =========== Diluted 17,035,159 10,492,498 =========== =========== Galyan's Trading Company, Inc. Consolidated Balance Sheets As of May 4, 2002 and May 5, 2001 (dollars in thousands) May 4, May 5, 2002 2001 ----------- ----------- Assets Current assets Cash and cash equivalents $ 11,342 $ 6,934 Receivables, net 4,301 6,849 Merchandise inventories 140,894 112,431 Refundable and deferred income taxes 3,542 2,803 Other current assets 7,538 6,134 ----------- ----------- Total current assets 167,617 135,151 Property and equipment, net 102,812 75,735 Deferred income taxes 574 3,538 Goodwill, net 18,334 18,921 Other assets, net 1,333 1,548 ----------- ----------- Total assets $ 290,670 $ 234,893 =========== =========== Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 58,744 $ 26,006 Accrued expenses 27,902 20,886 Current portion of long-term debt 10,989 5,430 ----------- ----------- Total current liabilities 97,635 52,322 Long-term liabilities Debt, net of current portion 282 59,329 Other long-term liabilities 5,607 58,236 ----------- ----------- Total long-term liabilities 5,889 117,565 Shareholders' equity Common stock and paid-in capital, no par value 191,383 70,889 Notes receivable from shareholders (1,402) (1,491) Unearned compensation (239) (404) Warrants 1,461 8,654 Accumulated deficit (4,057) (12,642) ----------- ----------- Total shareholders' equity 187,146 65,006 Total liabilities and shareholders' equity $ 290,670 $ 234,893 =========== ===========
CONTACT: Galyan's Trading Company, Inc. Edward S. Wozniak, 317/532-0200 ext. 2243 ewozniak@galyans.com URL: businesswire.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page.
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