DELAWARE | 000-50763 | 91-1963165 | ||
(STATE OR OTHER JURISDICTION OF INCORPORATION) | (COMMISSION FILE NUMBER) | (I.R.S. EMPLOYER IDENTIFICATION NO.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
ITEM 8.01 | OTHER EVENTS |
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
EXHIBIT NUMBER | DESCRIPTION |
99.1 | Press release dated November 5, 2015, issued by Blue Nile, Inc. |
BLUE NILE, INC. | |
Registrant | |
Dated: November 5, 2015 | By: /s/ David Binder |
David Binder | |
Chief Financial Officer and Chief Administrative Officer | |
(Principal Financial Officer) |
• | U.S. engagement net sales for the third quarter 2015 increased 6.9% to $65.0 million, compared to $60.8 million for the third quarter 2014. |
• | U.S. non-engagement net sales for the third quarter 2015 increased 6.7% to $25.0 million, compared to $23.5 million for the third quarter 2014. |
• | International net sales for the third quarter 2015 were $19.9 million, compared to $21.5 million for the third quarter 2014, a decrease of 7.2%. Excluding the impact from changes in foreign exchange rates, international net sales increased 3%. |
• | Gross profit for the third quarter 2015 totaled $21.2 million. As a percent of net sales, gross profit was 19.3% compared to 17.8% for the third quarter 2014. |
• | Selling, general and administrative expenses for the third quarter 2015 were $18.2 million, compared to $16.3 million in the third quarter 2014. Selling, general and administrative expenses included stock-based compensation expense of $1.3 million for the third quarter in 2015 and $1.0 million for the third quarter in 2014. |
• | Earnings per diluted share for the third quarter 2015 was $0.17 compared to $0.14 for the third quarter 2014. Earnings per diluted share included stock-based compensation expense of $0.07 for the third quarter 2015 and $0.05 for the third quarter 2014. |
• | At the end of the third quarter 2015, cash and cash equivalents totaled $33.6 million. |
• | During the third quarter 2015, Blue Nile repurchased 7,763 shares of its common stock for $0.2 million. |
• | Net sales are expected to be between $158 million and $168 million. |
• | Earnings per diluted share are projected at $0.41 to $0.47. |
• | Net sales are expected to be between $488 million and $498 million. |
• | Earnings per diluted share are projected at $0.87 to $0.93. |
Quarter ended | Quarter ended | ||||||
October 4, 2015 | September 28, 2014 | ||||||
Net income | $ | 1,977 | $ | 1,650 | |||
Income tax expense | 1,041 | 848 | |||||
Other loss, net | 21 | 62 | |||||
Depreciation and amortization | 940 | 923 | |||||
Stock-based compensation | 1,283 | 1,002 | |||||
Non-GAAP adjusted EBITDA | $ | 5,262 | $ | 4,485 |
Year to date ended | Year to date ended | ||||||
October 4, 2015 | September 28, 2014 | ||||||
Net income | $ | 5,495 | $ | 4,900 | |||
Income tax expense | 2,969 | 2,499 | |||||
Other income, net | (76 | ) | (44 | ) | |||
Depreciation and amortization | 2,771 | 2,742 | |||||
Stock-based compensation | 3,801 | 3,185 | |||||
Non-GAAP adjusted EBITDA | $ | 14,960 | $ | 13,282 |
Quarter ended | Quarter ended | ||||||
October 4, 2015 | September 28, 2014 | ||||||
Net cash used in operating activities | $ | (5,268 | ) | $ | (3,764 | ) | |
Purchases of fixed assets, including internal-use | |||||||
software and website development | (988 | ) | (1,255 | ) | |||
Non-GAAP free cash flow | $ | (6,256 | ) | $ | (5,019 | ) | |
Twelve months ended | Twelve months ended | ||||||
October 4, 2015 | September 28, 2014 | ||||||
Net cash provided by operating activities | $ | 14,727 | $ | 14,793 | |||
Purchases of fixed assets, including internal-use | |||||||
software and website development | (3,891 | ) | (4,239 | ) | |||
Non-GAAP free cash flow | $ | 10,836 | $ | 10,554 |
Quarter ended October 4, 2015 | Year over year growth | Effect of foreign exchange movements | Year over year growth on constant exchange rate basis |
International net sales | (7.2)% | (10.2)% | 3.0% |
Quarter ended September 28, 2014 | Year over year growth | Effect of foreign exchange movements | Year over year growth on constant exchange rate basis |
International net sales | 25.6% | (0.3)% | 25.9% |
Year to date ended October 4, 2015 | Year over year growth | Effect of foreign exchange movements | Year over year growth on constant exchange rate basis |
International net sales | 2.7% | (8.8)% | 11.5% |
Year to date ended September 28, 2014 | Year over year growth | Effect of foreign exchange movements | Year over year growth on constant exchange rate basis |
International net sales | 10.8% | (2.2)% | 13.0% |
October 4, 2015 | January 4, 2015 | September 28, 2014 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 33,609 | $ | 91,186 | $ | 32,324 | |||||
Trade accounts receivable | 4,006 | 2,137 | 3,032 | ||||||||
Other accounts receivable, net | 930 | 1,571 | 468 | ||||||||
Note receivable | 600 | — | — | ||||||||
Inventories | 41,946 | 41,668 | 33,084 | ||||||||
Deferred income taxes | 1,015 | 1,123 | 742 | ||||||||
Prepaid income taxes | — | — | 297 | ||||||||
Prepaids and other current assets | 2,317 | 1,524 | 1,536 | ||||||||
Total current assets | 84,423 | 139,209 | 71,483 | ||||||||
Property and equipment, net | 10,795 | 10,422 | 10,378 | ||||||||
Intangible assets, net | 87 | 103 | 108 | ||||||||
Deferred income taxes | 3,829 | 3,064 | 3,927 | ||||||||
Note receivable | — | 2,000 | 2,000 | ||||||||
Other investments | 2,280 | 2,280 | 2,280 | ||||||||
Other assets | 218 | 256 | 262 | ||||||||
Total assets | $ | 101,632 | $ | 157,334 | $ | 90,438 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 76,328 | $ | 128,675 | $ | 72,312 | |||||
Accrued liabilities | 8,816 | 11,992 | 6,522 | ||||||||
Current portion of long-term financing obligation | 33 | 32 | 32 | ||||||||
Current portion of deferred rent | 291 | 292 | 286 | ||||||||
Total current liabilities | 85,468 | 140,991 | 79,152 | ||||||||
Long-term financing obligation, less current portion | 464 | 489 | 497 | ||||||||
Deferred rent, less current portion | 1,771 | 1,982 | 2,051 | ||||||||
Unearned income | 2,141 | — | — | ||||||||
Other long-term liabilities | 201 | 169 | 117 | ||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock | 22 | 22 | 22 | ||||||||
Additional paid-in capital | 230,290 | 227,146 | 226,812 | ||||||||
Accumulated other comprehensive loss | (211 | ) | (236 | ) | (153 | ) | |||||
Retained earnings | 108,984 | 103,489 | 98,658 | ||||||||
Treasury stock | (327,498 | ) | (316,718 | ) | (316,718 | ) | |||||
Total stockholders’ equity | 11,587 | 13,703 | 8,621 | ||||||||
Total liabilities and stockholders’ equity | $ | 101,632 | $ | 157,334 | $ | 90,438 |
Quarter ended | Year to date ended | ||||||||||||||
October 4, 2015 | September 28, 2014 | October 4, 2015 | September 28, 2014 | ||||||||||||
Net sales | $ | 109,943 | $ | 105,760 | $ | 330,083 | $ | 316,057 | |||||||
Cost of sales | 88,712 | 86,910 | 266,790 | 257,915 | |||||||||||
Gross profit | 21,231 | 18,850 | 63,293 | 58,142 | |||||||||||
Selling, general and administrative expenses | 18,192 | 16,290 | 54,905 | 50,787 | |||||||||||
Operating income | 3,039 | 2,560 | 8,388 | 7,355 | |||||||||||
Other (loss) income, net: | |||||||||||||||
Interest income, net | 12 | 19 | 76 | 91 | |||||||||||
Other loss, net | (33 | ) | (81 | ) | — | (47 | ) | ||||||||
Total other (loss) income, net | (21 | ) | (62 | ) | 76 | 44 | |||||||||
Income before income taxes | 3,018 | 2,498 | 8,464 | 7,399 | |||||||||||
Income tax expense | 1,041 | 848 | 2,969 | 2,499 | |||||||||||
Net income | $ | 1,977 | $ | 1,650 | $ | 5,495 | $ | 4,900 | |||||||
Basic net income per share | $ | 0.17 | $ | 0.14 | $ | 0.47 | $ | 0.40 | |||||||
Diluted net income per share | $ | 0.17 | $ | 0.14 | $ | 0.47 | $ | 0.40 | |||||||
Shares used for computation (in thousands): | |||||||||||||||
Basic | 11,523 | 11,844 | 11,706 | 12,248 | |||||||||||
Diluted | 11,612 | 11,865 | 11,779 | 12,312 |
Year to date ended | |||||||
October 4, 2015 | September 28, 2014 | ||||||
Operating activities: | |||||||
Net income | $ | 5,495 | $ | 4,900 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation and amortization | 2,771 | 2,742 | |||||
Stock-based compensation | 3,831 | 3,245 | |||||
Deferred income taxes | (657 | ) | 1,839 | ||||
Tax deficiency from share-based awards | (597 | ) | (1,798 | ) | |||
Excess tax benefit from share-based awards | (29 | ) | (173 | ) | |||
Changes in assets and liabilities: | |||||||
Receivables | (1,228 | ) | 26 | ||||
Inventories | (278 | ) | 1,446 | ||||
Prepaid income taxes | — | (50 | ) | ||||
Prepaid expenses and other assets | (755 | ) | (234 | ) | |||
Accounts payable | (52,344 | ) | (50,071 | ) | |||
Accrued liabilities | (3,176 | ) | (4,229 | ) | |||
Unearned income | 2,141 | — | |||||
Deferred rent and other | (180 | ) | (168 | ) | |||
Net cash used in operating activities | (45,006 | ) | (42,525 | ) | |||
Investing activities: | |||||||
Purchases of property and equipment | (2,940 | ) | (2,820 | ) | |||
Payments received on note receivable | 1,400 | — | |||||
Net cash used in investing activities | (1,540 | ) | (2,820 | ) | |||
Financing activities: | |||||||
Repurchase of common stock | (10,780 | ) | (40,308 | ) | |||
Proceeds from stock option exercises | 241 | 2,266 | |||||
Taxes paid for net share settlement of share-based awards | (424 | ) | (244 | ) | |||
Excess tax benefit from share-based awards | 29 | 173 | |||||
Principal payments under long-term financing obligation | (24 | ) | (96 | ) | |||
Net cash used in financing activities | (10,958 | ) | (38,209 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (73 | ) | (64 | ) | |||
Net decrease in cash and cash equivalents | (57,577 | ) | (83,618 | ) | |||
Cash and cash equivalents, beginning of period | 91,186 | 115,942 | |||||
Cash and cash equivalents, end of period | $ | 33,609 | $ | 32,324 |
Year to date ended | |||||||
October 4, 2015 | September 28, 2014 | ||||||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for income taxes | $ | 4,825 | $ | 2,506 |