BUCKLE INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - May 18, 2017

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8-K - THE BUCKLE, INC. 8-K - BUCKLE INCbke20170518-8kdoc.htm
Exhibit 99.1
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The Buckle, Inc.
 
2407 W. 24th St. Kearney, NE 68845
 
P.O. Box 1480 Kearney, NE 68848-1480
 
phone: 308-236-8491
 
fax: 308-236-4493
 
For Immediate Release: May 18, 2017
web: www.buckle.com


Contact:
Karen B. Rhoads, Chief Financial Officer
 
The Buckle, Inc.
 
(308) 236-8491

THE BUCKLE, INC. REPORTS FIRST QUARTER NET INCOME AND ANNOUNCES THE PLANNED RETIREMENT OF SENIOR VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER


KEARNEY, NE -- The Buckle, Inc. (NYSE: BKE) announced today that net income for the fiscal quarter ended April 29, 2017 was $16.3 million, or $0.34 per share ($0.34 per share on a diluted basis).

Net sales for the 13-week fiscal quarter ended April 29, 2017 decreased 12.8 percent to $212.3 million from net sales of $243.5 million for the prior year 13-week fiscal quarter ended April 30, 2016. Comparable store net sales for the 13-week period ended April 29, 2017 decreased 12.7 percent from comparable store net sales for the prior year 13-week period ended April 30, 2016. Online sales decreased 7.2 percent to $21.8 million for the 13-week period ended April 29, 2017, compared to net sales of $23.5 million for the 13-week period ended April 30, 2016.

Net income for the first quarter of fiscal 2017 was $16.3 million, or $0.34 per share ($0.34 per share on a diluted basis), compared with $23.1 million, or $0.48 per share ($0.48 per share on a diluted basis) for the first quarter of fiscal 2016.

The Company also announced today that Karen B. Rhoads, Senior Vice President of Finance and Chief Financial Officer, will retire from her current position with the Company later this summer. Ms. Rhoads will continue to serve as a member of the Company’s Board of Directors. 

Ms. Rhoads joined the Company in 1980, working part-time in the corporate office while attending college at Kearney State College (University of Nebraska at Kearney) and, upon graduation, she worked in public accounting before returning to the corporate office in 1987 to lead the Company’s growing finance team.  She was named Vice President of Finance and Chief Financial Officer in April 1991 and Senior Vice President of Finance in March 2014.  Dennis H. Nelson, President and Chief Executive Officer, commented “I join with all Buckle teammates in thanking Karen for her 33 years of commitment and dedication to Buckle.  We appreciate Karen’s passion for the Company, her teamwork across all departments, and her leadership in developing such an outstanding finance team.”

The Board of Directors has engaged an executive search firm to assist with the search for Ms. Rhoads’ replacement. The firm will be reviewing both internal and external candidates. Ms. Rhoads will remain in her role to support the search for a new Chief Financial Officer and to assist with the transition.

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) 230-1085 for domestic calls or (612) 234-9960 for international calls and reference the conference code 423611. A replay of the call will be available for a two-week period beginning today at 12:30 p.m. EDT by calling (800) 475-6701 for domestic calls or (320) 365-3844 for international calls and entering the conference code 423611.




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 462 retail stores in 44 states. As of the end of the fiscal quarter, it operated 462 stores in 44 states compared with 468 stores in 44 states at the end of the first quarter of fiscal 2016.
  
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.

Financial Tables to Follow 



THE BUCKLE, INC.

CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands Except Per Share Amounts)
(Unaudited)
 
 
 
 
 
Thirteen Weeks Ended
 
April 29,
2017
 
April 30,
2016
 
 
 
 
SALES, Net of returns and allowances
$
212,251

 
$
243,543

 
 
 
 
COST OF SALES (Including buying, distribution, and occupancy costs)
130,534

 
148,814

 
 
 
 
Gross profit
81,717

 
94,729

 
 
 
 
OPERATING EXPENSES:
 
 
 
Selling
46,918

 
47,563

General and administrative
9,761

 
10,736

 
56,679

 
58,299

 
 
 
 
INCOME FROM OPERATIONS
25,038

 
36,430

 
 
 
 
OTHER INCOME, Net
935

 
408

 
 
 
 
INCOME BEFORE INCOME TAXES
25,973

 
36,838

 
 
 
 
PROVISION FOR INCOME TAXES
9,688

 
13,741

 
 
 
 
NET INCOME
$
16,285

 
$
23,097

 
 
 
 
 
 
 
 
EARNINGS PER SHARE:
 

 
 

Basic
$
0.34

 
$
0.48

 
 
 
 
Diluted
$
0.34

 
$
0.48

 
 
 
 
Basic weighted average shares
48,218

 
48,107

Diluted weighted average shares
48,344

 
48,203







THE BUCKLE, INC.

CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
 
 
 
 
 
 
ASSETS
April 29,
2017
 
January 28,
2017 (1)
 
April 30,
2016
 
 
 
 
 
 
CURRENT ASSETS:
 
 
 
 
 
Cash and cash equivalents
$
207,868

 
$
196,536

 
$
153,415

Short-term investments
53,389

 
49,994

 
39,453

Receivables
8,487

 
8,210

 
8,853

Inventory
119,361

 
125,694

 
138,788

Prepaid expenses and other assets
7,295

 
6,023

 
16,977

Total current assets
396,400

 
386,457

 
357,486

 
 
 
 
 
 
PROPERTY AND EQUIPMENT
460,440

 
459,359

 
455,087

Less accumulated depreciation and amortization
(295,513
)
 
(290,364
)
 
(282,694
)
 
164,927

 
168,995

 
172,393

 
 
 
 
 
 
LONG-TERM INVESTMENTS
15,485

 
18,092

 
30,986

OTHER ASSETS
6,912

 
6,303

 
3,954

 
 
 
 
 
 
Total assets
$
583,724

 
$
579,847

 
$
564,819

 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 

 
 

 
 
 
 
 
 
 
 
CURRENT LIABILITIES:
 

 
 

 
 
Accounts payable
$
32,422

 
$
25,079

 
$
32,139

Accrued employee compensation
8,883

 
26,906

 
9,857

Accrued store operating expenses
17,494

 
14,695

 
11,665

Gift certificates redeemable
17,272

 
21,199

 
18,590

Income taxes payable
20,437

 
10,737

 
13,231

Total current liabilities
96,508

 
98,616

 
85,482

 
 
 
 
 
 
DEFERRED COMPENSATION
13,763

 
13,092

 
13,770

DEFERRED RENT LIABILITY
37,196

 
37,600

 
40,066

Total liabilities
147,467

 
149,308

 
139,318

 
 
 
 
 
 
COMMITMENTS
 

 
 
 
 
 
 
 
 
 
 
STOCKHOLDERS’ EQUITY:
 

 
 

 
 

Common stock, authorized 100,000,000 shares of $.01 par value;
  issued and outstanding; 48,848,555 shares at April 29, 2017, 48,622,780
  shares at January 28, 2017, and 48,623,190 shares at April 30, 2016
488

 
486

 
486

Additional paid-in capital
141,042

 
139,398

 
136,743

Retained earnings
294,809

 
290,737

 
288,567

Accumulated other comprehensive loss
(82
)
 
(82
)
 
(295
)
Total stockholders’ equity
436,257

 
430,539

 
425,501

 
 
 
 
 
 
Total liabilities and stockholders’ equity
$
583,724

 
$
579,847

 
$
564,819

 
 
 
 
 
 
(1) Derived from audited financial statements.
 
 
 
 
 




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