-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HeHAWUVON2dpEo8bTLPX+fizB+3f8SjubVGBtg846VWe+iYP0ELIxEyuR8DHoIzH k2q+kgqJNxoE8fAq/U4s+Q== 0001144204-08-032315.txt : 20080528 0001144204-08-032315.hdr.sgml : 20080528 20080528075711 ACCESSION NUMBER: 0001144204-08-032315 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080528 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080528 DATE AS OF CHANGE: 20080528 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FINLAY ENTERPRISES INC /DE CENTRAL INDEX KEY: 0000878731 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-JEWELRY STORES [5944] IRS NUMBER: 133492802 STATE OF INCORPORATION: DE FISCAL YEAR END: 0130 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25716 FILM NUMBER: 08862338 BUSINESS ADDRESS: STREET 1: 529 FIFTH AVE STREET 2: 5TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2123827400 MAIL ADDRESS: STREET 1: 529 5TH AVENUE STREET 2: 5TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 8-K 1 v115857_8k.htm Unassociated Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K


CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
 
 
Date of report (Date of earliest event reported) May 28, 2008 
 
Finlay Enterprises, Inc.
(Exact name of registrant as specified in its charter)
 

Delaware
0-25716
13-3492802
(State or other jurisdiction
 of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)


529 Fifth Avenue, New York, New York
10017
(Address of principal executive offices)
(Zip Code)

 
Registrant’s telephone number, including area code (212) 808-2800
    
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

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.


On May 28, 2008, Finlay Enterprises, Inc. (the “Registrant”) issued a press release announcing the Registrant’s financial results for the first quarter ended May 3, 2008. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
 
Item 9.01
Financial Statements and Exhibits.
 
(d)
Exhibits.

Exhibit No.
Description
   
99.1
Finlay Enterprises, Inc. press release dated May 28, 2008.



SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
     
  FINLAY ENTERPRISES, INC.
 
 
 
 
 
 
Date: May 28, 2008 By:   /s/ Bruce E. Zurlnick
 
Bruce E. Zurlnick
  Senior Vice President, Treasurer and Chief Financial Officer 
 

EX-99.1 2 v115857_ex99-1.htm Unassociated Document
CONTACT: Bruce Zurlnick Leigh Parrish/Caren Barbara
  Senior Vice President and Media Contact: Samantha Cohen
  Chief Financial Officer Financial Dynamics
  Finlay Enterprises, Inc. (212) 850-5600
  (212) 808-2800   

 
FOR IMMEDIATE RELEASE

FINLAY ENTERPRISES REPORTS FIRST QUARTER RESULTS

New York, NY, May 28, 2008 -- Finlay Enterprises, Inc. (NASDAQ: FNLY), a leading retailer of fine jewelry operating luxury stand-alone specialty jewelry stores and licensed fine jewelry departments in department stores throughout the United States, announced today its financial results for the first quarter of fiscal 2008. Results from the prior year period ended May 5, 2007 exclude from continuing operations the results from Parisian stores that closed in fiscal 2007, which have been classified as discontinued operations in accordance with generally accepted accounting principles (GAAP).

Sales for the first quarter increased 25.9% to $205.1 million compared to $162.9 million in the comparable period of 2007. Specialty jewelry stores consisting of Carlyle, Congress, and Bailey Banks & Biddle, which was acquired in November 2007, contributed sales of $77.7 million for the first quarter, as compared to $27.2 million for the same period last year. Comparable store sales (stores open for the same months during the comparable period) for the first quarter decreased 4.5%.

For the thirteen weeks ended May 3, 2008, the Company reported a loss from continuing operations of $11.0 million, or $1.19 per share, compared to a loss of $7.8 million, or $0.86 per share, in the thirteen week period ended May 5, 2007. Loss from operations before depreciation and amortization expenses (EBITDA) for the first quarter totaled $3.9 million, compared to a loss of $1.4 million in the prior year period. See Reconciliation of EBITDA in the attached tables.

Income from discontinued operations for the thirteen weeks ended May 5, 2007 totaled $0.1 million, or $0.02 per diluted share and net loss on a consolidated basis including discontinued operations totaled $7.6 million, or $0.84 per share.

Arthur E. Reiner, Chairman and Chief Executive Officer of Finlay Enterprises, Inc. commented, “Our business was impacted by ongoing macro economic challenges and weak consumer confidence during the first quarter of 2008. Although the sales for our Bailey Banks & Biddle business in the first quarter were lower than planned, our May sales trend has reinforced our belief that the initiatives we are in the process of implementing will translate into improved results. In light of the current difficult environment, we have continued to conservatively manage our business and have taken a disciplined approach to controlling our expenditures. Further, we are carefully monitoring our inventory levels so that we may maximize our cash flow. This resulted in higher than anticipated excess availability under our revolving credit facility in the first quarter.”

Fiscal Year 2008 Outlook

The Company affirms its outlook for fiscal year 2008 as previously announced in its fourth quarter 2007 earnings release on April 2, 2008. It continues to anticipate sales for fiscal 2008 to be approximately $1 billion and comparable store sales growth for the year to be approximately flat to positive 1%. The Company continues to project a net loss per share in the range of $1.15 to $1.35, excluding one-time anticipated severance and accelerated depreciation charges associated with the Macy’s and Lord & Taylor store group closings. Including these charges, the Company projects net loss per share to range from $1.40 to $1.60.

Conference Call

The Company’s management will host a conference call to review results and answer questions. The conference call will be held today, May 28, 2008, at 10:00 a.m. Eastern Time. A live broadcast of the call will be available on the Company’s website http://www.finlayenterprises.com and will remain available for approximately 90 days.

Finlay Enterprises, Inc., through its wholly-owned subsidiary, Finlay Fine Jewelry Corporation, is one of the leading retailers of fine jewelry operating luxury stand-alone specialty jewelry stores and licensed fine jewelry departments in department stores throughout the United States and achieved sales of $835.9 million in fiscal 2007. The number of locations at the end of the first quarter of fiscal 2008 totaled 781, including 67 Bailey Banks & Biddle, 35 Carlyle and five Congress specialty jewelry stores.

This release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on Finlay’s current expectations and beliefs, are not a guarantee of future performance and involve known and unknown risks, uncertainties and other factors. Actual results, performances or achievements may differ materially from those contained in, or implied by, these forward-looking statements, depending upon a variety of factors including, in particular, the risks and uncertainties described in Finlay’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by Finlay or any other person that the events or circumstances described in such statement are material.

- financial tables follow -



Page 2

FINLAY ENTERPRISES, INC.
Consolidated Statements of Operations and other information
(in thousands, except share and per share data)
(unaudited) 
 
   
Thirteen Weeks Ended 
 
Thirteen Weeks Ended 
 
 
 
May 3, 2008
 
May 5, 2007
 
Sales
 
$
205,112
   
100.0
%
$
162,871
   
100.0
%
Cost of sales
   
112,982
   
55.1
   
86,505
   
53.1
 
Gross margin
   
92,130
   
44.9
   
76,366
   
46.9
 
Selling, general and administrative expenses
   
96,023
   
46.8
   
77,779
   
47.8
 
Depreciation and amortization
   
4,978
   
2.4
   
3,543
   
2.2
 
Loss from operations (1)
   
(8,871
)
 
(4.3
)
 
(4,956
)
 
(3.1
)
Interest expense, net
   
8,775
   
4.3
   
6,078
   
3.7
 
Loss from continuing operations before income taxes
   
(17,646
)
 
(8.6
)
 
(11,034
)
 
(6.8
)
Benefit for income taxes
   
(6,635
)
 
(3.2
)
 
(3,281
)
 
(2.0
)
Loss from continuing operations
   
(11,011
)
 
(5.4
)
 
(7,753
)
 
(4.8
)
Discontinued operations, net of tax
   
-
   
-
   
149
   
0.1
 
Net loss
 
$
(11,011
)
 
(5.4
)%
$
(7,604
)
 
(4.7
)%
                           
Loss from continuing operations per share applicable to common shares:
                         
- Basic net loss per share
 
$
(1.19
)
     
$
(0.86
)
     
- Diluted net loss per share
 
$
(1.19
)
     
$
(0.86
)
     
                           
Discontinued operations:
                         
- Basic net income per share
 
$
-
       
$
0.02
       
- Diluted net income per share
 
$
-
       
$
0.02
       
                           
Net loss per share applicable to common shares:
                         
- Basic net loss per share
 
$
(1.19
)
     
$
(0.84
)
     
- Diluted net loss per share
 
$
(1.19
)
     
$
(0.84
)
     
                           
Weighted average share and share equivalents outstanding:
                         
- Basic
   
9,223,784
         
9,052,477
       
- Diluted
   
9,223,784
         
9,052,477
       
                           
                           
Other information: EBITDA (2)
 
$
(3,893
)
     
$
(1,413
)
     
                           
                           
                           
Reconciliation of EBITDA:
                         
Loss from operations
 
$
(8,871
)
     
$
(4,956
)
     
Add: Depreciation and amortization  
   
4,978
         
3,543
       
EBITDA
 
$
(3,893
)
     
$
(1,413
)
     

 
(1)  
Included in continuing operations for the first quarter of fiscal 2008 are pre-tax charges totaling $0.9 million, or $0.06 per share, associated with severance for field personnel and accelerated depreciation in conjunction with the Macy’s and Lord & Taylor anticipated store closings at the end of the current fiscal year.
(2)  
EBITDA, a non-GAAP financial measure, represents income (loss) from operations before depreciation and amortization expenses. The Company believes EBITDA provides additional information for determining its ability to meet future debt service requirements. EBITDA should not be construed as a substitute for net income or cash flow from operating activities (all determined in accordance with GAAP) for the purpose of analyzing Finlay’s operating performance, financial position and cash flow as EBITDA is not defined by generally accepted accounting principles. Finlay has presented EBITDA, however, because it is commonly used by certain investors to analyze and compare companies on the basis of operating performance and to determine a company’s ability to service and/or incur debt. Finlay’s computation of EBITDA may not be comparable to similar titled measures of other companies.
 


Page 3


FINLAY ENTERPRISES, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

 
   
May 3,
2008 (1)
 
May 5,
2007
 
Assets
         
           
Cash
 
$
5,390
 
$
2,952
 
Accounts receivable
   
30,030
   
32,065
 
Inventory
   
601,270
   
437,828
 
Other current assets
   
11,253
   
5,858
 
Total current assets 
   
647,943
   
478,703
 
               
               
Fixed assets, net
   
71,817
   
54,940
 
Other assets
   
26,671
   
15,506
 
Total assets 
 
$
746,431
 
$
549,149
 
               
               
Liabilities and Stockholders’ Equity
             
               
Short-term borrowings
 
$
297,613
 
$
92,813
 
Accounts payable
   
65,881
   
63,808
 
Other current liabilities
   
71,608
   
68,044
 
Total current liabilities 
   
435,102
   
224,665
 
Long-term debt 
   
200,000
   
200,000
 
Deferred income taxes and other non-current liabilities
   
8,543
   
9,730
 
Total liabilities 
   
643,645
   
434,395
 
Total stockholders’ equity
   
102,786
   
114,754
 
Total liabilities and stockholders’ equity 
 
$
746,431
 
$
549,149
 
 

(1)
The balance sheet as of May 3, 2008 includes the assets and liabilities of Bailey Banks & Biddle, which was acquired on November 9, 2007.



###
 


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