- Net sales increased by 17.6% to $199.5 million from $169.7 million in the third quarter of fiscal 2015; comparable sales decreased by 0.2%.
- Operating income increased by 23.4% to $8.6 million from $7.0 million in the third quarter of fiscal 2015.
- The Company opened 26 new stores and ended the quarter with 517 stores in 31 states. This represents an increase in stores of 19.1% from the end of the third quarter of fiscal 2015.
- Net income was $5.4 million compared to $4.3 million in the third quarter of fiscal 2015.
- Diluted income per common share was $0.10 compared to $0.08 per share in the third quarter of fiscal 2015.
For the thirty-nine weeks ended October 29, 2016:
- Net sales increased by 21.1% to $612.3 million from $505.6 million in the comparable period of fiscal 2015; comparable sales increased by 2.6%.
- Operating income increased to $35.1 million from $25.6 million in the comparable period of fiscal 2015.
- The Company opened 80 new stores compared to 68 net new stores opened in the comparable period in fiscal 2015.
- Net income was $22.1 million compared to $15.7 million in the comparable period of fiscal 2015.
- Diluted income per common share was $0.40 compared to $0.29 per share in the comparable period of fiscal 2015.
A taped replay of the conference call will be available within two hours of the conclusion of the call and can be accessed both online and by dialing 877-870-5176 (international callers please dial 858-384-5517). The pin number to access the telephone replay is 3771037. The replay will be available until December 8, 2016.Forward-Looking Statements: This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect management's current views and estimates regarding the Company's industry, business strategy, goals and expectations concerning its market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. Investors can identify these statements by the fact that they use words such as "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future" and similar terms and phrases. The Company cannot assure investors that future developments affecting the Company will be those that it has anticipated. Actual results may differ materially from these expectations due to risks related to the Company's strategy and expansion plans, risks related to the inability to successfully implement our expansion into online retail, the availability of suitable new store locations and the dependence on the success of shopping centers in which our stores are located, risks that consumer spending may decline and that U.S. and global macroeconomic conditions may worsen, risks related to the Company's continued retention of its senior management and other key personnel, risks related to changes in consumer preferences and economic conditions, risks related to increased operating costs, including wage rates, risks related to extreme weather, risks related to the Company's distribution centers, quality or safety concerns about the Company's merchandise, events that may affect the Company's vendors, increased competition from other retailers including online retailers, risks related to cyber security, risks related to customers' payment methods, risks related to trade restrictions, and risks associated with leasing substantial amounts of space. For further details and a discussion of these risks and uncertainties, see the Company's periodic reports, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the Securities and Exchange Commission and available at www.sec.gov. If one or more of these risks or uncertainties materialize, or if any of the Company's assumptions prove incorrect, the Company's actual results may vary in material respects from those projected in these forward-looking statements. Any forward looking statement made by the Company in this news release speaks only as of the date on which the Company makes it. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws. About Five Below: Five Below is a rapidly growing specialty value retailer offering a broad range of trend-right, high-quality merchandise targeted at the teen and pre-teen customer. Five Below offers a dynamic, edited assortment of exciting products in a fun and differentiated store environment, all priced at $5 and below. Select brands and licensed merchandise fall into the Five Below worlds: Style, Room, Sports, Tech, Crafts, Party, Candy, and Now. Five Below was founded in 2002 and is headquartered in Philadelphia, Pennsylvania, with over 500 stores in 31 states. For more information, please visit www.fivebelow.com or come into one of our stores!
|FIVE BELOW, INC.|
|Consolidated Balance Sheets|
|October 29, 2016||January 30, 2016||October 31, 2015|
|Cash and cash equivalents||$||53,537||$||53,081||$||18,083|
|Short-term investment securities||9,912||46,335||—|
|Prepaid income taxes||5,789||1,341||10,328|
|Prepaid expenses and other current assets||33,200||15,618||24,698|
|Total current assets||330,613||264,745||266,744|
|Property and equipment, net||135,939||119,784||119,974|
|Deferred income taxes||9,045||8,507||10,349|
|Liabilities and Shareholders' Equity|
|Line of credit||$||—||$||—||$||—|
|Income taxes payable||126||11,942||239|
|Accrued salaries and wages||8,677||7,661||6,170|
|Other accrued expenses||32,051||24,368||34,504|
|Total current liabilities||145,538||102,196||151,048|
|Deferred rent and other||53,220||46,617||46,850|
|Additional paid-in capital||318,137||306,522||303,533|
|Total shareholders' equity||278,151||244,481||199,487|
|FIVE BELOW, INC.|
|Consolidated Statements of Operations|
|(in thousands, except share and per share data)|
|Thirteen Weeks Ended||Thirty-Nine Weeks Ended|
|October 29, 2016||October 31, 2015||October 29, 2016||October 31, 2015|
|Cost of goods sold||135,472||116,920||414,700||345,851|
|Selling, general and administrative expenses||55,372||45,768||162,523||134,177|
|Interest income (expense), net||64||23||211||12|
|Income before income taxes||8,695||7,020||35,308||25,262|
|Income tax expense||3,248||2,683||13,256||9,586|
|Basic income per common share||$||0.10||$||0.08||$||0.40||$||0.29|
|Diluted income per common share||$||0.10||$||0.08||$||0.40||$||0.29|
|Weighted average shares outstanding:|
|FIVE BELOW, INC.|
|Consolidated Statements of Cash Flows|
|Thirty-Nine Weeks Ended|
|October 29, 2016||October 31, 2015|
|Adjustments to reconcile net income to net cash used in operating activities:|
|Depreciation and amortization||19,449||16,126|
|Share-based compensation expense||9,014||8,400|
|Deferred income tax benefit||(538||)||(2,468||)|
|Other non-cash expenses||53||47|
|Changes in operating assets and liabilities:|
|Prepaid income taxes||(4,448||)||(8,389||)|
|Prepaid expenses and other assets||(18,656||)||(6,572||)|
|Income taxes payable||(11,816||)||(14,203||)|
|Accrued salaries and wages||1,016||895|
|Other accrued expenses||5,946||15,078|
|Net cash used in operating activities||(2,870||)||(1,506||)|
|Purchases of investment securities||(35,856||)||—|
|Sales, maturities, and redemptions of investment securities||72,279||—|
|Net cash provided by (used in) investing activities||709||(44,749||)|
|Net proceeds from issuance of common stock||93||81|
|Proceeds from exercise of options to purchase common stock||2,736||811|
|Common shares withheld for taxes||(1,819||)||(322||)|
|Excess tax benefit related to exercises of stock options and vesting of restricted stock units||1,607||582|
|Net cash provided by financing activities||2,617||1,152|
|Net increase (decrease) in cash and cash equivalents||456||(45,103||)|
|Cash and cash equivalents at beginning of period||53,081||63,186|
|Cash and cash equivalents at end of period||$||53,537||$||18,083|
Investor Contact:Five Below, Inc.Christiane Pelz215-207-2658Christiane.Pelz@fivebelow.comICR, Inc.Farah Soi/Caitlin Morahan203-682-8200Farah.Soi@icrinc.com/Caitlin.Morahan@icrinc.comMedia Contact:ICR, Inc.Jessica Liddell/Julia Young203-682-8200FivePR@icrinc.com