ANAHEIM, Calif., Aug. 20, 2009 (GLOBE NEWSWIRE) -- Pacific Sunwear of California, Inc. (Nasdaq:PSUN) (the "Company") today announced that net sales for the second quarter (13 weeks) of fiscal 2009 ended August 1, 2009, were $243 million versus net sales from continuing operations of $313 million for the second quarter (13 weeks) of fiscal 2008 ended August 2, 2008. Total Company same-store sales decreased 24 percent during the period.
The Company recorded a net loss of $14.2 million, or $(0.22) per diluted share, for the second quarter of fiscal 2009 compared to income from continuing operations of $3.7 million, or $0.06 per diluted share, for the second quarter of fiscal 2008.
"Clearly, we have a lot of work to do to stem our decline in sales and ultimately return to profitability," stated Gary Schoenfeld, President and Chief Executive Officer. "I remain confident in our ability to take on this challenge. Our branded assortments differentiate us from our vertical competitors, and I believe that in time we will once again make PacSun the favorite place to shop for 15-20 year olds."
Financial Outlook for Third Fiscal Quarter of 2009
Assuming a same-store sales percentage decline in the high-teens to low twenties, and assuming non-cash, pre-tax store asset impairment charges of approximately $10 million, the Company would expect to report a loss of approximately $(0.16) to $(0.23) per share for the third quarter of fiscal 2009.
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 August 1, 2009, the Company operated 916 stores in 50 states and Puerto Rico. PacSun's website address is www.pacsun.com.
The Pacific Sunwear of California logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2087
The Company will host a conference call Thursday, August 20, 2009 at 4:30 pm Eastern time to review its financial results. A telephonic replay of the conference call will be available, beginning approximately two hours following the call, for one week and can be accessed in the United States/Canada at (800) 642-1687 or internationally at (706) 645-9291; pass code: 23201193. For those unable to listen to the live Web broadcast or utilize the call-in replay, an archived version will be available on the company's investor relations web site through midnight, November 16, 2009.
Pacific Sunwear Safe Harbor
This press release contains "forward-looking statements" including, without limitation, statements regarding the Company's financial outlook for the third quarter of fiscal 2009 and the Company's objective to again become the favorite place to shop for 15-20 year olds. In each case, these statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company intends that these forward-looking statements be subject to the safe harbors created thereby. These statements are not historical facts and involve estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Uncertainties that could adversely affect our business and results include, among others, the following factors: higher than anticipated declines in same-store sales; additional adverse changes in economic conditions or sustained adverse economic conditions generally; additional adverse changes in consumer spending; changes in consumer demands and preferences; higher than anticipated markdowns and/or higher than estimated selling, general and administrative costs; competition from other retailers and uncertainties generally associated with apparel retailing; merchandising/fashion sensitivity; sales from private label merchandise; the impact of management and organizational changes; reliance on key personnel; economic impact of natural disasters, terrorist attacks or war/threat of war; shortages of supplies and/or contractors, as a result of natural disasters or terrorist acts, could cause unexpected delays in new store openings, relocations, renovations or expansions; reliance on foreign sources of production; and other risks outlined in the company's SEC filings, including but not limited to the Annual Report on Form 10-K for the year ended January 31, 2009 and subsequent periodic reports filed with the Securities and Exchange Commission. Historical results achieved are not necessarily indicative of future prospects of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur after such statements are made. Nonetheless, the Company reserves the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this press release. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.
PACIFIC SUNWEAR OF CALIFORNIA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except share and per share data)
Second Quarter Ended First Half Ended
---------------------- ----------------------
Aug. 1, Aug. 2, Aug. 1, Aug. 2,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Net sales $ 242,794 $ 312,726 $ 466,260 $ 579,592
Gross margin 57,708 95,258 118,982 170,723
Selling, G&A expenses 79,343 90,173 156,112 185,985
---------- ---------- ---------- ----------
Operating (loss)
income from continuing
operations (21,635) 5,085 (37,130) (15,262)
Other income
(expense), net 66 11 (163) 769
---------- ---------- ---------- ----------
(Loss) income from
continuing operations
before income taxes (21,569) 5,096 (37,293) (14,493)
Income tax (benefit)
expense (7,414) 1,388 (14,395) (6,232)
---------- ---------- ---------- ----------
(Loss) income from
continuing operations (14,155) 3,708 (22,898) (8,261)
Loss from discontinued
operations, net of
tax benefit -- (912) -- (26,045)
---------- ---------- ---------- ----------
Net (loss) income $ (14,155) $ 2,796 $ (22,898) $ (34,306)
========== ========== ========== ==========
(Loss) income from
continuing operations
per share:
Basic $ (0.22) $ 0.06 $ (0.35) $ (0.12)
========== ========== ========== ==========
Diluted $ (0.22) $ 0.06 $ (0.35) $ (0.12)
========== ========== ========== ==========
Net (loss) income per
share:
Basic $ (0.22) $ 0.04 $ (0.35) $ (0.50)
========== ========== ========== ==========
Diluted $ (0.22) $ 0.04 $ (0.35) $ (0.50)
========== ========== ========== ==========
Weighted average
shares outstanding:
Basic 65,370,465 66,664,245 65,241,888 68,290,024
========== ========== ========== ==========
Diluted 65,370,465 66,704,159 65,241,888 68,290,024
========== ========== ========== ==========
PACIFIC SUNWEAR OF CALIFORNIA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
Aug. 1, Jan. 31, Aug. 2,
2009 2009 2008
-------- -------- --------
ASSETS
Current assets:
Cash & cash equivalents $ 26,176 $ 24,776 $ 1,560
Inventories 174,995 107,205 229,738
Other current assets 14,706 58,943 83,288
-------- -------- --------
Total current assets 215,877 190,924 314,586
Property and equipment, net 296,053 323,344 373,045
Other long-term assets 59,584 55,241 39,323
-------- -------- --------
Total assets $571,514 $569,509 $726,954
======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 82,191 $ 45,263 $131,990
Short-term borrowings -- -- 10,780
Other current liabilities 42,573 47,564 68,843
-------- -------- --------
Total current liabilities 124,764 92,827 211,613
Deferred lease incentives 45,635 52,313 57,835
Deferred rent 22,337 23,008 23,824
Other long-term liabilities 28,498 29,374 34,487
-------- -------- --------
Total liabilities 221,234 197,522 327,759
Total shareholders' equity 350,280 371,987 399,195
-------- -------- --------
Total liabilities and
shareholders' equity $571,514 $569,509 $726,954
======== ======== ========
PACIFIC SUNWEAR OF CALIFORNIA, INC.
CONDENSED CONSOLIDATED CASH FLOWS
(unaudited, in thousands)
For the First Half Ended
------------------------
Aug. 1, Aug. 2,
2009 2008
--------- ---------
Cash flows from operating activities:
Net loss $(22,898) $(34,306)
Depreciation & amortization 34,529 40,685
Asset impairment 7,526 11,705
Non-cash stock based compensation 2,426 2,463
Tax deficiencies related to exercise of
stock options (1,599) (968)
Loss on disposal of property and equipment 30 1,649
Changes in operating assets and
liabilities:
Inventories (67,790) (59,556)
Accounts payable and other current
liabilities 32,867 65,345
Other assets and liabilities 27,991 (33,684)
--------- ---------
Net cash provided by/(used in)
operating activities 13,082 (6,667)
Cash flows from investing activities:
Capital expenditures (15,784) (48,836)
Proceeds from sale of land 3,705 --
Proceeds from sale of property and
equipment 28 --
--------- ---------
Net cash used in investing activities (12,051) (48,836)
Cash flows from financing activities:
Proceeds from exercise of stock options 373 1,614
Principal payments under long-term leases (4) (7)
Repurchases of common stock -- (52,911)
Borrowings under credit facility -- 43,099
Principal payments under credit facility -- (32,319)
--------- ---------
Net cash used in financing activities 369 (40,524)
--------- ---------
Net increase/(decrease) in cash and cash
equivalents 1,400 (96,027)
Cash and cash equivalents, beginning of
period 24,776 97,587
--------- ---------
Cash and cash equivalents, end of period $ 26,176 $ 1,560
========= =========
PACIFIC SUNWEAR OF CALIFORNIA, INC.
SELECTED STORE OPERATING DATA
Fiscal 2009 Fiscal 2008
----------- -----------
Stores open at beginning of fiscal year 932 954
Stores opened during the period -- 9
Stores closed during the period (16) (25)
----------- -----------
Stores open at end of period 916 938
Note: Fiscal 2008 store counts have been revised to reflect continuing operations only.
Aug. 1, 2009 Aug. 2, 2008
----------------- -----------------
Square Square
# of Footage # of Footage
Stores (000s) Stores (000s)
-------- -------- -------- --------
PacSun Core stores 522 2,072 535 2,101
PacSun Value stores 394 1,464 403 1,495
-------- -------- ------- --------
Total stores 916 3,536 938 3,596