Genesco announces up to $100 mn share repurchase program

13 Mar '08

3 min read

Genesco Inc reported operating results for the fourth quarter and fiscal year ended February 2, 2008, and announced that its board has authorized the use of up to $100 million of cash from a recent litigation settlement to repurchase Genesco common stock.

Fourth Quarter Results - The Company reported earnings from continuing operations of $4.5 million, or $0.19 per diluted share, for the fourth quarter. Earnings for the quarter included pretax expenses of $18.8 million in connection with the Company's merger-related litigation with The Finish Line Inc, UBS Securities LLC and UBS Investments LLC, retail store asset impairments and costs related to the previously announced plan to close underperforming stores.

Earnings were reduced by approximately $0.81 per diluted share in the aggregate of merger- related and store-closing costs, asset impairments and the non tax deductibility of merger-related expenses during the quarter.

For the fourth quarter ended February 3, 2007, earnings from continuing operations were $35.7 million, or $1.36 per diluted share, including a $0.6 million pretax gain, or approximately $0.01 per diluted share, primarily for recognition of gift card income and a favorable litigation settlement offset by the early termination of a licensing agreement and impairment charges. Net sales for the thirteen- week fourth quarter of fiscal 2008 were $467 million, compared to $477 million for the fourteen-week fourth quarter of fiscal 2007.

Full Year Results - For the fiscal year ended February 2, 2008, Genesco reported earnings from continuing operations of $9.4 million or $0.40 per diluted share. Earnings for the year included pretax expenses of $37.3 million in connection with the proposed Finish Line merger and related litigation, store closing costs and asset impairments, and were reduced by approximately $1.26 per diluted share by such costs and due to the non tax deductibility of merger-related expenses during the year.

For the previous fiscal year, earnings from continuing operations were $68.2 million, or $2.61 per diluted share, including a $1.1 million pretax charge, or approximately $0.03 per diluted share, primarily for asset impairments offset by gift card income, a favorable litigation settlement and the early termination of a licensing agreement. Net sales for fiscal 2008 increased 2.9% to $1.50 billion, compared to $1.46 billion for fiscal 2007.

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