What do you know? Pac Sun shares reportedly “plunged in after-hours trading” today after the company announced that it lost $10.9 million in the Q3, according to the Associated Press.
Revenue fell 17 percent to $268.3 million from $323.6 million. Sales at stores open at least a year fell 18 percent during the quarter. Sales at stores open at least a year are a key measure of retailer performance because they measure growth at existing stores rather than from newly opened ones.
Shares were only down 19 percent. Follow the jump for the full press release.
[Link: Associated Press]
Pacific Sunwear Announces Third Quarter Earnings Results
ANAHEIM, Calif., Nov. 16, 2009 (GLOBE NEWSWIRE) — Pacific Sunwear of California, Inc. (Nasdaq:PSUN) (the “Company”) today announced that net sales for the third quarter (13 weeks) of fiscal 2009 ended October 31, 2009 were $268 million versus net sales from continuing operations of $324 million for the third quarter (13 weeks) of fiscal 2008 ended November 1, 2008. Total Company same-store sales decreased 18 percent during the period.
The Company recorded a net loss of $10.9 million, or $(0.17) per diluted share, for the third quarter of fiscal 2009 compared to net loss from continuing operations of $3.5 million, or $(0.05) per diluted share, for the third quarter of fiscal 2008.
“Through the first 11 weeks of the third quarter, our business performed at the higher end of our internal expectations led by some improving trends in our Young Mens business,” stated Gary Schoenfeld, President and Chief Executive Officer. “We’ve since seen a precipitous decline across both genders during the last two weeks of the third quarter and into the first two weeks of the fourth quarter. Thus, while we still expect an improvement over the fourth quarter last year, we remain intently focused on several key initiatives toward getting this company turned around.”
Financial Outlook for Fourth Fiscal Quarter of 2009
Assuming a same-store sales percentage decline in the low twenties for the fourth quarter of fiscal 2009, the Company expects to report a loss of approximately $(0.28) to $(0.35) per share. This earnings range includes estimated non-cash store asset impairment charges of approximately $5 million. Any non-cash tax valuation allowance charges or additional store asset impairment charges that the Company may incur during the fourth quarter would increase the level of losses for the quarter.
About Pacific Sunwear of California, Inc.
Pacific Sunwear is a leading lifestyle specialty retailer rooted in the youth culture of California. The Company sells casual apparel with a limited selection of accessories and footwear designed to meet the needs of teens and young adults. As of October 31, 2009, the Company operated 904 stores in 50 states and Puerto Rico. PacSun’s website address is www.pacsun.com.
PACIFIC SUNWEAR OF CALIFORNIA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands except share and per share data) Third Quarter First Three Quarters Ended Ended ---------------------- ---------------------- Oct. 31, Nov. 1, Oct. 31, Nov. 1, 2009 2008 2009 2008 ---------- ---------- ---------- ---------- Net sales $ 268,280 $ 323,612 $ 734,539 $ 903,204 Gross margin 73,441 92,776 192,423 263,499 Selling, G&A expenses 89,365 95,308 245,477 281,163 ---------- ---------- ---------- ---------- Operating loss from continuing operations (15,924) (2,532) (53,054) (17,664) Other expense, net 17 1,100 180 461 ---------- ---------- ---------- ---------- Loss from continuing operations before (15,941) (3,632) (53,234) (18,125) income taxes Income tax benefit (5,036) (112) (19,431) (6,344) ---------- ---------- ---------- ---------- Loss from continuing operations (10,905) (3,520) (33,803) (11,781) Income (loss) from discontinued operations, net of tax -- 1,046 -- (24,999) ---------- ---------- ---------- ---------- Net loss $ (10,905) $ (2,474) $ (33,803) $ (36,780) ========== ========== ========== ========== Loss from continuing operations per share: Basic $ (0.17) $ (0.05) $ (0.52) $ (0.18) ========== ========== ========== ========== Diluted $ (0.17) $ (0.05) $ (0.52) $ (0.18) ========== ========== ========== ========== Net loss per share: Basic $ (0.17) $ (0.04) $ (0.52) $ (0.55) ========== ========== ========== ========== Diluted $ (0.17) $ (0.04) $ (0.52) $ (0.55) ========== ========== ========== ========== Weighted average shares outstanding: Basic 65,563,721 64,968,707 65,380,726 67,182,918 ========== ========== ========== ========== Diluted 65,563,721 64,968,707 65,380,726 67,182,918 ========== ========== ========== ========== PACIFIC SUNWEAR OF CALIFORNIA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) Oct. 31, Jan. 31, Nov. 1, 2009 2009 2008 -------- -------- -------- ASSETS Current assets: Cash & cash equivalents $ 15,564 $ 24,776 $ 4,817 Inventories 168,417 107,205 233,814 Other current assets 15,774 58,943 73,635 -------- -------- -------- Total current assets 199,755 190,924 312,266 Property and equipment, net 272,596 323,344 353,934 Other long-term assets 64,944 55,241 47,060 -------- -------- -------- Total assets $537,295 $569,509 $713,260 ======== ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 63,298 $ 45,263 $113,799 Short-term borrowings -- -- 43,100 Other current liabilities 40,159 47,564 47,365 -------- -------- -------- Total current liabilities 103,457 92,827 204,264 Deferred lease incentives 42,229 52,313 55,054 Deferred rent 21,872 23,008 23,471 Other long-term liabilities 27,863 29,374 32,213 -------- -------- -------- Total liabilities 195,421 197,522 315,002 Total shareholders' equity 341,874 371,987 398,258 -------- -------- -------- Total liabilities and shareholders' equity $537,295 $569,509 $713,260 ======== ======== ======== PACIFIC SUNWEAR OF CALIFORNIA, INC. CONDENSED CONSOLIDATED CASH FLOWS (unaudited, in thousands) Three Quarters Ended -------------------- Oct. 31, Nov. 1, 2009 2008 --------- --------- Cash flows from operating activities: Net loss $ (33,803) $ (36,780) Depreciation & amortization 53,326 58,743 Asset impairment 16,538 21,313 Non-cash stock based compensation 5,030 4,442 Tax deficiencies related to exercise of stock options (1,702) (1,413) Loss on disposal of property and equipment 555 2,368 Changes in operating assets and liabilities: Inventories (61,212) (63,632) Accounts payable and other current liabilities 9,985 29,674 Other assets and liabilities 17,510 (28,030) --------- --------- Net cash provided by/(used in) operating activities 6,227 (13,315) Cash flows from investing activities: Capital expenditures (19,540) (71,528) Proceeds from sale of land 3,705 -- Proceeds from sale of property and equipment 28 275 --------- --------- Net cash used in investing activities (15,807) (71,253) Cash flows from financing activities: Proceeds from exercise of stock options 374 1,618 Principal payments under long-term leases (6) (9) Repurchases of common stock -- (52,911) Borrowings under credit facility -- 168,739 Principal payments under credit facility -- (125,639) --------- --------- Net cash provided by/(used) in financing activities 368 (8,202) --------- --------- Net decrease in cash and cash equivalents (9,212) (92,770) Cash and cash equivalents, beginning of period 24,776 97,587 --------- --------- Cash and cash equivalents, end of period $ 15,564 $ 4,817 ========= ========= PACIFIC SUNWEAR OF CALIFORNIA, INC. SELECTED STORE OPERATING DATA Fiscal 2009 Fiscal 2008 ----------- ----------- Stores open at beginning of fiscal year 932 954 Stores opened year-to-date 2 13 Stores closed year-to-date (30) (27) ----------- ----------- Stores open at end of third quarter 904 940 ----------- ----------- Square footage (000s) 3,494 3,608 CONTACT: Pacific Sunwear of California, Inc. Gar Jackson, Vice President, Investor Relations (714) 414-4049