SOURCE: The Buckle, Inc.
August 21, 2008 07:00 ET
The Buckle, Inc. Reports Second Quarter Net Income
KEARNEY, NE--(Marketwire - August 21, 2008) - The Buckle, Inc. (NYSE: BKE) announced today
that net income for the fiscal quarter ended August 2, 2008 increased 88.9
percent on a 36.6 percent net sales increase.
Comparable store net sales for the 13-week second quarter ended August 2,
2008 increased 27.8 percent from comparable store net sales for the prior
year
13-week second quarter ended August 4, 2007. Net sales for the 13-week
fiscal period ended August 2, 2008 increased 36.6 percent to $169.8 million
from net sales of $124.3 million for the prior year 13-week fiscal period
ended August 4, 2007.
Comparable store net sales year-to-date for the 26-week period ended August
2, 2008 increased 26.7 percent from comparable store net sales for the
26-week period ended August 4, 2007. Net sales for the 26-week fiscal
period ended August 2, 2008 increased 34.5 percent to $330.1 million from
net sales of $245.4 million for the prior year 26-week fiscal period ended
August 4, 2007.
Net income for the second quarter of fiscal 2008 was $22.3 million, or
$0.74 per share ($0.72 per share on a diluted basis), compared with $11.8
million, or $0.40 per share ($0.38 per share on a diluted basis) for the
second quarter of fiscal 2007.
Net income for the 26-week period ended August 2, 2008 was $41.0 million,
or $1.36 per share ($1.32 per share on a diluted basis), compared with
$24.0 million, or $0.81 per share ($0.78 per share on a diluted basis) for
the 26-week period ended August 4, 2007.
General and administrative expenses for the quarter and year-to-date
periods ended August 2, 2008 are reported net of a $3.0 million gain from
the involuntary conversion of one of the Company's corporate aircrafts to a
monetary asset upon receipt of the insurance proceeds. As disclosed in the
Company's May 30, 2008 press release, the aircraft was destroyed by a
tornado that hit the airport in Kearney, Nebraska. This gain had a $0.06
per share after-tax impact on reported basic and diluted earnings per share
for both the quarter and year-to-date periods.
Management will hold a conference call at 10:30 a.m. EDT today to discuss
results for the quarter. To participate in the call, please call (800)
230-1092 and reference the conference code 956639. A replay of the call
will be available for a two-week period beginning August 21, 2008, at 12:30
p.m. EDT by calling (800) 475-6701 and entering the conference code 956639.
About Buckle
Offering a unique mix of high-quality, on-trend apparel, accessories, and
footwear, Buckle caters to fashion-conscious young men and women. Known as
a denim destination, each store carries a wide selection of fits, styles,
and finishes from leading denim brands, including the Company's exclusive
brand, BKE. Headquartered in Kearney, Nebraska, Buckle currently operates
382 retail stores in 39 states which includes the recent opening of a new
store in Coeur D' Alene, Idaho. As of the end of the fiscal quarter, it
operated 381 stores in 39 states compared with 362 stores in 38 states at
the end of the second quarter of fiscal 2007. Buckle was added to the S&P
SmallCap 600 index at the close of trading on August 19, 2008.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995; All forward-looking statements made by the Company involve material
risks and uncertainties and are subject to change based on factors which
may be beyond the Company's control. Accordingly, the Company's future
performance and financial results may differ materially from those
expressed or implied in any such forward-looking statements. Such factors
include, but are not limited to, those described in the Company's filings
with the Securities and Exchange Commission. The Company does not
undertake to publicly update or revise any forward-looking statements even
if experience or future changes make it clear that any projected results
expressed or implied therein will not be realized.
Note: News releases and other information on The Buckle, Inc. can be
accessed at www.buckle.com on the Internet.
THE BUCKLE, INC.
STATEMENTS OF INCOME
(Amounts in Thousands Except Per Share Amounts)
(Unaudited)
Thirteen Weeks Ended Twenty-six Weeks Ended
---------------------- ----------------------
August 2, August 4, August 2, August 4,
2008 2007 2008 2007
SALES, Net of returns and
allowances $ 169,765 $ 124,257 $ 330,065 $ 245,368
COST OF SALES (Including
buying, distribution, and
occupancy costs) 99,497 77,844 194,175 153,452
---------- ---------- ---------- ----------
Gross profit 70,268 46,413 135,890 91,916
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Selling 33,480 25,065 65,039 48,489
General and
administrative 3,477 4,891 10,172 9,871
---------- ---------- ---------- ----------
36,957 29,956 75,211 58,360
---------- ---------- ---------- ----------
INCOME FROM OPERATIONS 33,311 16,457 60,679 33,556
OTHER INCOME, Net 2,049 2,260 4,369 4,383
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 35,360 18,717 65,048 37,939
PROVISION FOR INCOME TAXES 13,084 6,925 24,055 13,954
---------- ---------- ---------- ----------
NET INCOME $ 22,276 $ 11,792 $ 40,993 $ 23,985
========== ========== ========== ==========
EARNINGS PER SHARE:
Basic $ 0.74 $ 0.40 $ 1.36 $ 0.81
========== ========== ========== ==========
Diluted $ 0.72 $ 0.38 $ 1.32 $ 0.78
========== ========== ========== ==========
Basic weighted average
shares 30,231 29,776 30,051 29,622
Diluted weighted average
shares 31,058 30,924 30,946 30,806
BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
August 2, February 2, August 4,
ASSETS 2008 2008 (1) 2007
CURRENT ASSETS:
Cash and cash equivalents $ 184,144 $ 64,293 $ 25,578
Short-term investments 22,760 102,910 132,095
Accounts receivable, net of
allowance of $24, $62, and $42,
respectively 5,012 2,800 3,841
Inventory 103,432 77,639 96,021
Prepaid expenses and other assets 16,486 13,979 14,582
----------- ----------- -----------
Total current assets 331,834 261,621 272,117
----------- ----------- -----------
PROPERTY AND EQUIPMENT: 239,639 240,237 228,693
Less accumulated depreciation and
amortization (141,840) (137,903) (128,896)
----------- ----------- -----------
97,799 102,334 99,797
----------- ----------- -----------
LONG-TERM INVESTMENTS 71,880 81,201 29,387
OTHER ASSETS 4,930 5,501 4,044
----------- ----------- -----------
$ 506,443 $ 450,657 $ 405,345
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $ 48,218 $ 25,155 $ 35,003
Accrued employee compensation 16,501 27,836 9,705
Accrued store operating expenses 7,004 5,704 5,461
Gift certificates redeemable 5,814 8,511 4,311
Income taxes payable 7,097 10,020 1,466
----------- ----------- -----------
Total current liabilities 84,634 77,226 55,946
DEFERRED COMPENSATION 4,830 4,127 3,845
DEFERRED RENT LIABILITY 34,607 30,984 30,657
----------- ----------- -----------
Total liabilities 124,071 112,337 90,448
----------- ----------- -----------
COMMITMENTS
STOCKHOLDERS’ EQUITY:
Common stock, authorized
100,000,000 shares of $.01 par
value; issued and outstanding;
30,651,343 shares at August 2,
2008, 29,841,668 shares at
February 2, 2008, and 30,192,753
shares at August 4, 2007 307 298 302
Additional paid-in capital 66,272 46,977 59,823
Retained earnings 316,769 291,045 254,772
Accumulated other comprehensive
loss (976) - -
----------- ----------- -----------
Total stockholders’ equity 382,372 338,320 314,897
----------- ----------- -----------
$ 506,443 $ 450,657 $ 405,345
=========== =========== ===========
(1) Derived from audited financial statements.