The Finish Line Inc reported results for the fourth quarter and fiscal year 2010, representing the 13-week and 52-week periods ended February 27, 2010.
Fourth Quarter Results Net sales increased 8.9% to $374.5 million in the fourth quarter compared to $344.1 million a year ago. Comparable store net sales increased 10.0% in the fourth quarter compared to a 2.3% comparable store net sales decline for the same period a year ago.
For the period, the company reported income from continuing operations of $30.8 million, or $0.56 per diluted share compared to $19.7 million or $0.36 per diluted share a year ago, a 55.6% earnings per share increase. Fiscal fourth quarter 2010 results included $2.6 million of pre-tax income associated with a change in the estimate for gift card forfeitures (which is included in net sales but not in the comparable store net sales), as well as a $6.8 million pre-tax, non-cash charge related to store asset impairments. Prior year fourth quarter results included a pre-tax, non-cash charge of $6.1 million for store asset impairments and pre-tax income of $2.1 million related to the terminated merger. Excluding these items, non-GAAP income from continuing operations for the current period was $33.3 million or $0.61 per diluted share compared to $22.1 million or $0.41 per diluted share for the same period a year ago, representing a 48.8% earnings per share increase. A reconciliation of these GAAP to non-GAAP financial measures is found in the tables at the end of this news release.
Consolidated merchandise inventories decreased 20.3% to $190.9 million as of February 27, 2010 compared to $239.4 million a year ago. Finish Line inventory declined 18.2% overall and 14.7% on a per-square-foot basis.
At year-end, the company had no interest-bearing debt and $234.5 million in cash and cash equivalents, up from $115.9 million at the end of the fourth quarter a year ago. The company repurchased 1.4 million shares of its outstanding common stock in the fourth quarter totaling $15.9 million.
Full Fiscal Year 2010 Results For the 52 weeks ended February 27, 2010, net sales declined 1.9% to $1.17 billion compared to $1.19 billion last year. For the fiscal year, comparable store net sales decreased 0.5% compared to a 0.3% increase last year.
For fiscal 2010, the company reported income from continuing operations of $50.8 million or $0.92 per diluted share compared to income from continuing operations of $30.4 million or $0.55 per diluted share for the same period a year ago, a 67.3% earnings per share increase. Fiscal 2010 full year results included the $2.6 million of pre-tax income for gift card forfeitures, the $6.8 million pre-tax, non-cash store asset impairment charge and the previously announced third quarter one-time tax benefit of $6.5 million related to the terminated merger and related litigation. Prior year results included a pre-tax non-cash charge of $6.1 million for store asset impairments and pre-tax income of $2.0 million related to the terminated merger. Excluding these items, fiscal 2010 non-GAAP income from continuing operations for the current period was $46.8 million or $0.85 per diluted share compared to $32.9 million or $0.60 per diluted share for the same period a year ago, representing a 41.7% earnings per share increase. A reconciliation of these GAAP to non-GAAP financial measures is found in the tables at the end of this news release.