fl_8k0325ex.htm

Exhibit 99.1

Finish Line Reports Fourth Quarter and Fiscal Year 2010 Results

Q4 same-store sales up 10% and Q4 EPS up 56% to $0.56 per share

INDIANAPOLIS, March 25, 2010 -- The Finish Line, Inc. (Nasdaq: FINL) today reported results for the fourth quarter and fiscal year 2010, representing the 13-week and 52-week periods ended February 27, 2010.

Fourth Quarter Results

Net sales increased 8.9% to $374.5 million in the fourth quarter compared to $344.1 million a year ago. Comparable store net sales increased 10.0% in the fourth quarter compared to a 2.3% comparable store net sales decline for the same period a year ago.

For the period, the company reported income from continuing operations of $30.8 million, or $0.56 per diluted share compared to $19.7 million or $0.36 per diluted share a year ago, a 55.6% earnings per share increase. Fiscal fourth quarter 2010 results included $2.6 million of pre-tax income associated with a change in the estimate for gift card forfeitures (which is included in net sales but not in the comparable store net sales), as well as a $6.8 million pre-tax, non-cash charge related to store asset impairments. Prior year fourth quarter results included a pre-tax, non-cash charge of $6.1 million for store asset impairments and pre-tax income of $2.1 million related to the terminated merger. Excluding these items, non-GAAP income from continuing operations for the current period was $33.3 million or $0.61 per diluted share compared to $22.1 million or $0.41 per diluted share for the same period a year ago, representing a 48.8% earnings per share increase. A reconciliation of these GAAP to non-GAAP financial measures is found in the tables at the end of this news release.

Consolidated merchandise inventories decreased 20.3% to $190.9 million as of February 27, 2010 compared to $239.4 million a year ago. Finish Line inventory declined 18.2% overall and 14.7% on a per-square-foot basis.

At year-end, the company had no interest-bearing debt and $234.5 million in cash and cash equivalents, up from $115.9 million at the end of the fourth quarter a year ago. The company repurchased 1.4 million shares of its outstanding common stock in the fourth quarter totaling $15.9 million.

Full Fiscal Year 2010 Results

For the 52 weeks ended February 27, 2010, net sales declined 1.9% to $1.17 billion compared to $1.19 billion last year. For the fiscal year, comparable store net sales decreased 0.5% compared to a 0.3% increase last year.

For fiscal 2010, the company reported income from continuing operations of $50.8 million or $0.92 per diluted share compared to income from continuing operations of $30.4 million or $0.55 per diluted share for the same period a year ago, a 67.3% earnings per share increase. Fiscal 2010 full year results included the $2.6 million of pre-tax income for gift card forfeitures, the $6.8 million pre-tax, non-cash store asset impairment charge and the previously announced third quarter one-time tax benefit of $6.5 million related to the terminated merger and related litigation. Prior year results included a pre-tax non-cash charge of $6.1 million for store asset impairments and pre-tax income of $2.0 million related to the terminated merger. Excluding these items, fiscal 2010 non-GAAP income from continuing operations for the current period was $46.8 million or $0.85 per diluted share compared to $32.9 million or $0.60 per diluted share for the same period a year ago, representing a 41.7% earnings per share increase. A reconciliation of these GAAP to non-GAAP financial measures is found in the tables at the end of this news release.

“I’m proud of the excellent work our team did to achieve improved results in virtually all facets of our business,” said Finish Line Chief Executive Officer Glenn Lyon. “We successfully executed our strategy to drive increased sales and margin improvement while strategically managing inventory and controlling costs. We’re pleased that customers continue to respond to our premium positioning as well as our cross-channel strategy, which is always evolving to stay in-step with the lifestyles of our core customers. It is our view that shoppers will likely remain cautious, yet we are encouraged by our results and will stay on-strategy as we continue to focus on delivering value to our shareholders.”

March Sales Update

Comparable store net sales on a month-to-date basis for the period of February 28 through March 21 increased 15.5% compared to a 1.2% decline for the same period one year ago.

Q4/Full Year 2010 Conference Call Tomorrow, March 26

The company will host a conference call for investors Friday, March 26, 2010 at 8:30 a.m. Eastern. To participate in the conference call, dial (866) 923-8645, conference ID#61214460. To listen online, visit www.finishline.com . A replay of the conference call can be accessed approximately 30 minutes following the completion of the call at (706) 645-9291, conference ID#61214460. This recording will be made available through March 30. In addition, the replay will be available on the Web at www.finishline.com.

Q1 FY 2011 Release/Conference Call Date June 24/25

The company expects to report first quarter results June 24 after market close followed by a conference call June 25 at approximately 8:30 a.m. Eastern.

Annual Meeting Date July 22

The company’s Board of Directors has established July 22 as the fiscal 2010 annual meeting date and May 21 as the record date for this meeting.

About Finish Line

The Finish Line, Inc. is a premium athletic footwear store and one of the nation's largest mall-based specialty retailers, offering a large selection of performance and everyday sport footwear, apparel and accessories for men, women and kids. The Finish Line, Inc. is publicly traded on the NASDAQ Global Select Market under the symbol FINL. The company operates 666 Finish Line stores in 47 states and offers online shopping at www.finishline.com.

Forward Looking Statements

The company has experienced, and expects to continue to experience, significant variability in net sales, net income (loss) and comparable store net sales from quarter to quarter. Therefore, the results of the periods presented herein are not necessarily indicative of the results to be expected for any other future period or year.

Certain statements contained in this press release regard matters that are not historical facts and are forward looking statements (as such term is defined in the rules promulgated pursuant to the Securities Act of 1933, as amended). Because such forward looking statements contain risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward looking statements.

Factors that could cause results of the company to differ materially include, but are not limited to: changing consumer preferences; the company's inability to successfully market its footwear, apparel, accessories and other merchandise; price, product and other competition from other retailers (including internet and direct manufacturer sales); the unavailability of products; the inability to locate and obtain favorable lease terms for the company's stores; the loss of key employees; the effect of economic conditions, depressed demand in the housing market and unemployment rates; management of growth, the outcome of litigation, and the other risks detailed in the company's Securities and Exchange Commission filings.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to release publicly the results of 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 Finish Line, Inc. Consolidated Statements of Operations (In thousands, except per share and store data)

	Thirteen			Thirteen			Fifty-Two			Fifty-Two
	Weeks Ended			Weeks Ended			Weeks Ended			Weeks Ended
	February 27, 2010			February 28, 2009			February 27, 2010			February 28, 2009
	(Unaudited)			(Unaudited)			(Unaudited)

Net sales	$	374,530		$	344,067		$	1,172,415		$	1,194,657
Cost of sales (including occupancy costs)		238,326			229,855			793,556			828,139
Gross profit		136,204			114,212			378,859			366,518

Selling, general and administrative expenses		78,559			77,778			297,323			312,011
Store closing costs		560			242			2,707			492
Terminated merger-related income, net		-			(2,075	)		-			(1,969	)
Impairment charges		6,771			6,118			6,771			6,118
Operating income		50,314			32,149			72,058			49,866

Interest income, net		45			127			322			814
Income from continuing operations before income taxes		50,359			32,276			72,380			50,680

Income tax expense		19,564			12,624			21,547			20,278
Income from continuing operations		30,795			19,652			50,833			30,402

Loss from discontinued operations, net of income taxes		(234	)		(21,013	)		(15,161	)		(26,644	)
Net income (loss)	$	30,561		$	(1,361	)	$	35,672		$	3,758

Income (loss) per diluted share:
Income from continuing operations	$	0.56		$	0.36		$	0.92		$	0.55
Loss from discontinued operations		(0.01	)		(0.39	)		(0.28	)		(0.48	)
Net income (loss)	$	0.55		$	(0.03	)	$	0.64		$	0.07

Diluted weighted average shares outstanding		54,541			54,125			54,597			54,108

Dividends declared per share	$	0.04		$	0.03		$	0.13		$	0.09


Store activity for the period (Finish Line only):
Beginning of period		681			699			689			697
Opened		-			-			5			9
Closed		(15	)		(10	)		(28	)		(17	)
End of period		666			689			666			689
Square feet at end of period								3,590,780			3,746,413
Average square feet per store								5,392			5,437

	Thirteen Weeks Ended						Fifty-Two Weeks Ended
	February 27, 2010			February 28, 2009			February 27, 2010			February 28, 2009

Net sales		100.0	%		100.0	%		100.0	%		100.0	%
Cost of sales (including occupancy costs)		63.6			66.8			67.7			69.3
Gross profit		36.4			33.2			32.3			30.7

Selling, general and administrative expenses		21.0			22.6			25.4			26.1
Store closing costs		0.2			0.1			0.2			0.1
Terminated merger-related income, net		-			(0.6	)		-			(0.2	)
Impairment charges		1.8			1.8			0.6			0.5
Operating income		13.4			9.3			6.1			4.2

Interest income, net		-			-			-			-
Income from continuing operations before income taxes		13.4			9.3			6.1			4.2

Income tax expense		5.2			3.6			1.8			1.7
Income from continuing operations		8.2			5.7			4.3			2.5

Loss from discontinued operations, net of income taxes		-			(6.1	)		(1.3	)		(2.2	)
Net income (loss)		8.2	%		(0.4	)%		3.0	%		0.3	%

	Condensed Consolidated Balance Sheet
	February 27, 2010		February 28, 2009
	(Unaudited)
ASSETS
Cash and cash equivalents	$	234,508	$	115,875
Merchandise inventories, net		190,894		239,409
Other current assets		18,205		31,791
Property and equipment, net		135,943		173,119
Other assets		30,718		38,539
Total assets	$	610,268	$	598,733

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities	$	114,943	$	107,838
Deferred credits from landlords		40,006		51,939
Other long-term liabilities		13,169		14,562
Shareholders' equity		442,150		424,394
Total liabilities and shareholders' equity	$	610,268	$	598,733

SEC REGULATION G

	The Finish Line, Inc. Consolidated Statements of Operations (Unaudited) Periods Ended February 27, 2010 and February 28, 2009 (In thousands, except per share data)

	Fourth Quarter Fiscal 2010									Fourth Quarter Fiscal 2009
	GAAP			Adjustments			Non-GAAP			GAAP			Adjustments			Non-GAAP


Net sales (1)	$	374,530		$	(2,622	)	$	371,908		$	344,067		$	-		$	344,067
Cost of sales (including occupancy costs)		238,326			-			238,326			229,855			-			229,855
Gross profit		136,204			(2,622	)		133,582			114,212			-			114,212

Selling, general and administrative expenses		78,559			-			78,559			77,778			-			77,778
Store closing costs		560			-			560			242			-			242
Terminated merger-related income, net (2)		-			-			-			(2,075	)		2,075			-
Impairment charges (3)		6,771			(6,771	)		-			6,118			(6,118	)		-
Operating income		50,314			4,149			54,463			32,149			4,043			36,192

Interest income, net		45			-			45			127			-			127
Income from continuing operations before income taxes		50,359			4,149			54,508			32,276			4,043			36,319

Income tax expense (4)		19,564			1,635			21,199			12,624			1,571			14,195
Income from continuing operations		30,795			2,514			33,309			19,652			2,472			22,124

Loss from discontinued operations, net of income taxes		(234	)		-			(234	)		(21,013	)		-			(21,013	)
Net income (loss)	$	30,561		$	2,514		$	33,075		$	(1,361	)	$	2,472		$	1,111

Income (loss) per diluted share:
Income from continuing operations	$	0.56		$	0.05		$	0.61		$	0.36		$	0.05		$	0.41
Loss from discontinued operations		(0.01	)		0.00			(0.01	)		(0.39	)		0.00			(0.39	)
Net income (loss)	$	0.55		$	0.05		$	0.60		$	(0.03	)	$	0.05		$	0.02

Diluted weighted average shares outstanding		54,541			-			54,541			54,125			-			54,125


	Fourth Quarter Fiscal 2010									Fourth Quarter Fiscal 2009
	GAAP			Adjustments			Non-GAAP			GAAP			Adjustments			Non-GAAP

Net sales (1)		100.0	%		-	%		100.0	%		100.0	%		-	%		100.0	%
Cost of sales (including occupancy costs) (5)		63.6			0.5			64.1			66.8			-			66.8
Gross profit		36.4			(0.5	)		35.9			33.2			-			33.2

Selling, general and administrative expenses (5)		21.0			0.1			21.1			22.6			-			22.6
Store closing costs		0.2			-			0.2			0.1			-			0.1
Terminated merger-related income, net (2)		-			-			-			(0.6	)		0.6			-
Impairment charges (3)		1.8			(1.8	)		-			1.8			(1.8	)		-
Operating income		13.4			1.2			14.6			9.3			1.2			10.5

Interest income, net		-			-			-			-			-			-
Income from continuing operations before income taxes		13.4			1.2			14.6			9.3			1.2			10.5

Income tax expense (4)		5.2			0.4			5.6			3.6			0.5			4.1
Income from continuing operations		8.2			0.8			9.0			5.7			0.7			6.4

Loss from discontinued operations, net of income taxes		-			-			-			(6.1	)		-			(6.1	)
Net income (loss)		8.2	%		0.8	%		9.0	%		(0.4	)%		0.7	%		0.3	%

Footnotes to explain adjustments

(1)	Fiscal 2010 amount relates to a change in estimate for gift card forfeitures. This amount was not included in comparable store net sales.

(2)	Fiscal 2009 amount relates to the final resolution of transaction expenses associated with the terminated merger.

(3)	Fiscal 2010 and 2009 amounts reflect charges to write down long-lived assets of the Company.

(4)	Fiscal 2010 and 2009 amounts reflect the income tax effect of the pre-tax adjustments noted above.

(5)	Due to the adjustment of net sales in Fiscal 2010 the percentages of these items changed as a percentage of the adjusted net sales.

	The Finish Line, Inc. Consolidated Statements of Operations (Unaudited) Periods Ended February 27, 2010 and February 28, 2009 (In thousands, except per share data)

	Fiscal 2010									Fiscal 2009
	GAAP			Adjustments			Non-GAAP			GAAP			Adjustments			Non-GAAP

Net sales (1)	$	1,172,415		$	(2,622	)	$	1,169,793		$	1,194,657		$	-		$	1,194,657
Cost of sales (including occupancy costs)		793,556			-			793,556			828,139			-			828,139
Gross profit		378,859			(2,622	)		376,237			366,518			-			366,518

Selling, general and administrative expenses		297,323			-			297,323			312,011			-			312,011
Store closing costs		2,707			-			2,707			492			-			492
Terminated merger-related income, net (2)		-			-			-			(1,969	)		1,969			-
Impairment charges (3)		6,771			(6,771	)		-			6,118			(6,118	)		-
Operating income		72,058			4,149			76,207			49,866			4,149			54,015

Interest income, net		322			-			322			814			-			814
Income from continuing operations before income taxes		72,380			4,149			76,529			50,680			4,149			54,829

Income tax expense (4)		21,547			8,150			29,697			20,278			1,613			21,891
Income from continuing operations		50,833			(4,001	)		46,832			30,402			2,536			32,938

Loss from discontinued operations, net of income taxes		(15,161	)		-			(15,161	)		(26,644	)		-			(26,644	)
Net income (loss)	$	35,672		$	(4,001	)	$	31,671		$	3,758		$	2,536		$	6,294

Income (loss) per diluted share:
Income from continuing operations	$	0.92		$	(0.07	)	$	0.85		$	0.55		$	0.05		$	0.60
Loss from discontinued operations		(0.28	)		0.00			(0.28	)		(0.48	)		0.00			(0.48	)
Net income (loss)	$	0.64		$	(0.07	)	$	0.57		$	0.07		$	0.05		$	0.12

Diluted weighted average shares outstanding		54,597			-			54,597			54,108			-			54,108


	Fiscal 2010									Fiscal 2009
	GAAP			Adjustments			Non-GAAP			GAAP			Adjustments			Non-GAAP

Net sales (1)		100.0	%		-	%		100.0	%		100.0	%		-	%		100.0	%
Cost of sales (including occupancy costs) (5)		67.7			0.1			67.8			69.3			-			69.3
Gross profit		32.3			(0.1	)		32.2			30.7			-			30.7

Selling, general and administrative expenses (5)		25.4			0.1			25.5			26.1			-			26.1
Store closing costs		0.2			-			0.2			0.1			-			0.1
Terminated merger-related income, net (2)		-			-			-			(0.2	)		0.2			-
Impairment charges (3)		0.6			(0.6	)		-			0.5			(0.5	)		-
Operating income		6.1			0.4			6.5			4.2			0.3			4.5

Interest income, net		-			-			-			-			-			-
Income from continuing operations before income taxes		6.1			0.4			6.5			4.2			0.3			4.5

Income tax expense (4)		1.8			0.8			2.6			1.7			0.1			1.8
Income from continuing operations		4.3			(0.4	)		3.9			2.5			0.2			2.7

Loss from discontinued operations, net of income taxes (5)		(1.3	)		0.1			(1.2	)		(2.2	)		-			(2.2	)
Net income (loss)		3.0	%		(0.3	)%		2.7	%		0.3	%		0.2	%		0.5	%

Footnotes to explain adjustments

(1)	Fiscal 2010 amount relates to a change in estimate for gift card forfeitures. This amount was not included in comparable store net sales.

(2)	Fiscal 2009 amount relates to the final resolution of transaction expenses associated with the terminated merger.

(3)	Fiscal 2010 and 2009 amounts reflect charges to write down long-lived assets of the Company.

(4)	Fiscal 2010 and 2009 amounts reflect the income tax effect of the pre-tax adjustments noted above.

Fiscal 2010 amount also includes the one time tax benefit associated with the terminated merger.

(5)	Due to the adjustment of net sales in Fiscal 2010 the percentages of these items changed as a percentage of the adjusted net sales.

CONTACTS:

Investor Relations Contact:
Edward W. Wilhelm (317) 899-1022 ext. 6914
Executive Vice President - Chief Financial Officer

Media Requests Contact:
Anne Roman (419) 724-9900 ext. 245
On behalf of The Finish Line, Inc.