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AUSTIN, Texas, May 06, 2009 (BUSINESS WIRE) -- Golfsmith International Holdings, Inc., (NASDAQ: GOLF) today announced financial results for the first quarter fiscal 2009 ended April 4, 2009.
First Quarter Highlights:
Martin Hanaka, Chairman and Chief Executive Officer commented, "While the recession continues to pressure spending in our industry, it is also making us a better organization as we focus on initiatives to increase efficiencies, reduce operating expenses and lower inventory levels, in which all areas we have made very good progress. As a result of these efforts, along with same stores sales that outperformed our plan for the quarter, we were able to generate free cash flow in the quarter and finish the period in an even stronger financial position. We will carry this improved operating platform, our differentiated merchandise assortment, and our Guest-First in-store experience into the future, and remain confident that we will gain market share."
Conference Call Information:
The company will host a conference call today at 9:00 a.m. (eastern time) to discuss the first quarter fiscal 2009 financial results. The call will be simulcast over the Internet at https://investors.golfsmith.com. A replay will be available for 30 days after the call at the aforementioned website. Telephone replays can be accessed for one month following the call by dialing 888-203-1112 (U.S.) or 719-457-0820 (international) and entering passcode 2851489.
About Golfsmith
Golfsmith International Holdings, Inc., (NASDAQ: GOLF) is a 40-year-old specialty retailer of golf and tennis equipment, apparel and accessories. The company operates as an integrated multi-channel retailer, offering its guests the convenience of shopping in its 73 stores across the United States, through its Internet site at www.golfsmith.com and from its assortment of catalogs. Golfsmith offers an extensive product selection that features premier branded merchandise, as well as its proprietary products, clubmaking components and pre-owned clubs.
Cautionary Language
This press release contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about the company's beliefs and expectations, are forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words "may," "could," "would," "should," "believe," "expect," "anticipate," "plan," "estimate," "target," "project," "intend," or similar expressions. Forward-looking statements are not guarantees of performance. These statements are based on management's beliefs and assumptions, which in turn are based in part on currently available information and in part on management's estimates and projections of future events and conditions. Important assumptions relating to the forward-looking statements include, among others, assumptions regarding demand for the products, the introduction of new product offerings, store opening costs, the ability to lease new sites on a timely basis, expected pricing levels, the timing and cost of planned capital expenditures, competitive conditions and general economic conditions. These assumptions could prove inaccurate. Forward-looking statements also involve risks and uncertainties, which could cause actual results that differ materially from those contained in any forward-looking statement. Many of these factors are beyond the company's ability to control or predict. Such factors include, but are not limited to the risk factors set forth in the company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 3, 2009.
The company believes its forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update publicly any of them in light of new information or future events.
| Golfsmith International Holdings, Inc. | ||||||||
| Consolidated Statements of Operations | ||||||||
| Three Months Ended | ||||||||
| April 4, | March 29, | |||||||
| 2009 | 2008 | |||||||
|
(unaudited) |
||||||||
| Net revenues | $ | 68,792,904 | $ | 79,235,496 | ||||
| Cost of products sold | 46,022,438 | 52,075,606 | ||||||
| Gross profit | 22,770,466 | 27,159,890 | ||||||
| Selling, general and administrative | 27,817,929 | 32,335,834 | ||||||
| Store pre-opening/closing expenses | 348,226 | 28,144 | ||||||
| Total operating expenses | 28,166,155 | 32,363,978 | ||||||
| Operating loss | (5,395,689 | ) | (5,204,088 | ) | ||||
|
Interest income (expense), net |
(477,140 | ) | (987,699 | ) | ||||
| Other income (expense), net | 56,750 | 6,561 | ||||||
| Loss before income taxes | (5,816,079 | ) | (6,185,226 | ) | ||||
| Income tax benefit | 689,766 | 742,227 | ||||||
| Net loss | $ | (5,126,313 | ) | $ | (5,442,999 | ) | ||
| Net loss per share: | ||||||||
| Basic | $ | (0.32 | ) | $ | (0.34 | ) | ||
| Diluted | $ | (0.32 | ) | $ | (0.34 | ) | ||
| Weighted average number of shares outstanding: | ||||||||
| Basic | 16,032,183 | 15,839,215 | ||||||
| Diluted | 16,032,183 | 15,839,215 | ||||||
|
Golfsmith International Holdings, Inc. Consolidated Balance Sheets |
||||||||
| April 4, |
March 29, |
|||||||
| 2009 | 2008 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,663,863 | $ | 2,160,736 | ||||
| Receivables, net | 1,902,894 | 2,221,113 | ||||||
| Inventories | 94,147,150 | 100,522,490 | ||||||
| Prepaid expenses and other current assets | 8,583,485 | 11,105,191 | ||||||
| Total current assets | 108,297,392 | 116,009,530 | ||||||
| Property and equipment: | ||||||||
| Land and buildings | 22,309,049 | 21,752,029 | ||||||
| Equipment, furniture and fixtures | 37,026,492 | 35,630,217 | ||||||
| Leasehold improvements and construction in progress | 40,529,325 | 36,722,666 | ||||||
| 99,864,866 | 94,104,912 | |||||||
| Less: accumulated depreciation and amortization | (42,616,449 | ) | (35,123,584 | ) | ||||
| Net property and equipment | 57,248,417 | 58,981,328 | ||||||
| Tradename | 11,158,000 | 11,158,000 | ||||||
| Trademarks | 13,972,251 | 13,972,251 | ||||||
| Customer database, net | 944,224 | 1,321,913 | ||||||
| Debt issuance costs, net | 369,356 | 533,516 | ||||||
| Deferred tax assets, net | 411,241 | 411,241 | ||||||
| Other long-term assets | 318,953 | 379,951 | ||||||
| Total assets | $ | 192,719,834 | $ | 202,767,730 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 55,104,933 | $ | 40,872,849 | ||||
| Accrued expenses and other current liabilities | 14,251,332 | 18,916,869 | ||||||
| Deferred tax liabilities, net | 383,538 | 383,538 | ||||||
| Total current liabilities | 69,739,803 | 60,173,256 | ||||||
| Deferred rent | 12,688,171 | 11,934,307 | ||||||
| Line of credit | 45,189,000 | 65,413,000 | ||||||
| Total liabilities | 127,616,974 | 137,520,563 | ||||||
| Total stockholders' equity | 65,102,860 | 65,247,167 | ||||||
| Total liabilities and stockholders' equity | $ | 192,719,834 | $ | 202,767,730 | ||||
SOURCE: Golfsmith International Holdings, Inc.
Investor Relations:
ICR, Inc.
Joseph Teklits/Jean Fontana, 203-682-8200
www.icrinc.com
Copyright Business Wire 2009
