Tumi Holdings Announces Financial Results for the First Quarter 2013

Before you go, we thought you'd like these...
Before you go close icon

Tumi Holdings Announces Financial Results for the First Quarter 2013

SOUTH PLAINFIELD, N.J.--(BUSINESS WIRE)-- Tumi Holdings, Inc. (NYS: TUMI) , the leading global brand of premium travel, business and lifestyle products and accessories, today announced its financial results for the first quarter ended March 31, 2013.

For the first quarter of 2013:

  • Net sales increased 28.6% to $102.9 million from $80.0 million in the first quarter ended March 25, 2012. There were five extra sales days in the first quarter of 2013 compared to the first quarter of 2012.
  • For total Direct-to-Consumer channels, comparable store sales, including company-owned websites, increased 16.4%, compared to an increase of 14.8% in the first quarter of 2012.
  • Direct-to-Consumer North America comparable store sales (including e-commerce sales) increased 16.0%, compared to an increase of 16.9% in the first quarter of 2012. Excluding e-commerce sales, Direct-to-Consumer North America comparable store sales increased 13.6%, compared to an increase of 12.4% in the first quarter of 2012.
  • Direct-to-Consumer International comparable store sales (including e-commerce sales) increased 19.7% in local currency, compared to an increase of 2.6% in the first quarter of 2012. Excluding e-commerce sales, Direct-to-Consumer International comparable store sales increased 22.8% in local currency, compared to a decrease of 0.7% in the first quarter of 2012. In U.S. dollars, Direct-to-Consumer International comparable store sales (including e-commerce sales) increased 20.8%, compared to a decrease of 1.6% in the first quarter of 2012. Excluding e-commerce sales, Direct-to-Consumer International comparable stores sales increased 23.9% in U.S. dollars, compared to a decrease of 4.8% in the first quarter of 2012.
  • Gross profit increased 27.8% to $58.0 million from $45.4 million in the first quarter of 2012. Gross margin was 56.4% compared to 56.7% in the first quarter of 2012.
  • Operating income increased 32.7% to $17.6 million from $13.3 million in the first quarter of 2012. Operating income margin was 17.1% compared to 16.6% in the first quarter of 2012. In the first quarter of 2013, the company incurred approximately $0.5 million in operating expenses in conjunction with the secondary common stock offering completed in April 2013. Excluding this one-time expense, operating income increased 36.3% to $18.1 million, and operating income margin was 17.6% in the first quarter of 2013.
  • Net income was $10.5 million, or $0.16 per diluted share based on 67.9 million diluted weighted average common shares outstanding, compared to $2.9 million, or $0.06 per diluted share, based on 52.5 million diluted weighted average common shares outstanding in the first quarter of 2012. The Company issued 15.6 million shares of common stock in conjunction with its Initial Public Offering (or "IPO") in April 2012.
  • Excluding the aforementioned one-time expense incurred in conjunction with the secondary common stock offering completed in April 2013 ($0.3 million after-tax), net income in the first quarter of 2013 was $10.8 million, or $0.16 per diluted share. In the first quarter of 2012, net income before preferred dividend expense (non-cash) was $9.2 million, or $0.17 per share (based on 52.5 million diluted weighted average common shares outstanding), excluding $6.3 million of non-cash dividend expense on mandatorily redeemable preferred stock and preferred equity interests. The mandatorily redeemable preferred stock and preferred equity interests were redeemed in conjunction with the Company's April 2012 IPO.
  • During the first quarter of 2013, Tumi opened 4 new stores, and closed 1 store.
  • At March 31, 2013, Tumi operated 117 company-owned stores.

Jerome Griffith, Chief Executive Officer, President and Director, commented, "We are pleased with the strong start to 2013, with solid growth across all channels and geographic segments. We continued to leverage our market position as an iconic global premium lifestyle brand to expand our product offering beyond travel-related merchandise, and our efforts are yielding dividends. Consistent traffic trends combined with favorable acceptance to new product offerings resulted in healthy sales growth in our North America retail and wholesale channels. In addition, we saw continued momentum in the EMEA zone, and further advanced brand acceptance in the Asia-Pacific region as we expand in this market. Overall, we continue to believe that Tumi has significant opportunity for growth in both 2013 and over the long-term."

Balance Sheet Highlights as of March 31, 2013:

Cash and cash equivalents were $27.8 million as of March 31, 2013, compared with $36.7 million as of December 31, 2012. In the first quarter of 2013, the Company used $12.0 million of cash to pay down borrowings under the revolving credit facility. Inventories were $70.0 million, compared with $70.9 million as of December 31, 2012.

Outlook

For fiscal 2013, net sales are expected to increase between 18% and 20%. This estimate assumes a comparable store sales growth for the Direct-to-Consumer North America segment in the mid- to high-single digit range and comparable store sales growth for the Direct-to-Consumer International segment in the mid-single digit range. Net income in 2013 is expected to increase between 53% and 59%. Diluted earnings per share are expected to be in the range of $0.82 to $0.86 per diluted share. This estimate assumes diluted weighted-average common shares outstanding of approximately 68.4 million.

Capital expenditures for fiscal 2013 are expected to be in the range of $21.0 million to $26.0 million.

Conference Call

Tumi Holdings, Inc. will host a conference call to discuss first quarter fiscal 2013 financial results today, May 8, 2013, at 4:30 p.m. ET. The general public can access the call by dialing 1-877-280-4962 (domestic) or 1-857-244-7319 (international). The passcode is 60265122. Please dial in 5 minutes before the start of the call. The conference call will also be webcast live in the Investor Relations section of www.tumi.com. A telephone replay of the call will be available through May 15, 2013; to access the replay, dial 1-888-286-8010 for domestic callers or 1-617-801-6888 for international callers and enter access code 17047999. The webcast will be accessible on the website for approximately 90 days after the call.

About Tumi

Tumi is the leading global brand of premium travel, business and lifestyle products and accessories. The brand is sold in approximately 200 stores from New York to Paris to London and Tokyo, as well as in the world's top department, specialty and travel retail stores in over 75 countries. For more information, please visit www.tumi.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect Tumi's current views with respect to, among other things, future events and performance and Tumi's preliminary estimates for the full year of fiscal 2013. These statements may discuss net sales, gross margin, operating expenses, operating income, net income, cash flow, financial condition, impairments, expenditures, growth, strategies, plans, achievements, dividends, capital structure, organizational structure, future store openings, market opportunities and general market and industry conditions. Tumi generally identifies forward-looking statements by words such as "anticipate," "estimate," "expect," "intend," "project," "plan," "predict," "believe," "seek," "continue," "outlook," "may," "might," "will," "should," "can have," "likely" or the negative version of these words or comparable words. Forward-looking statements are based on beliefs and assumptions made by management using currently available information. These statements are only predictions and are not guarantees of future performance, actions or events. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying beliefs or assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. These risks and uncertainties include those set forth under "Risk Factors" in Tumi's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC on March 21, 2013. Forward-looking statements speak only as of the date on which they are made. Tumi expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

  

TUMI HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

 
Three Months Ended
March 31,
2013
  March 25,
2012
(unaudited)
Net sales$102,925$80,021
Cost of sales44,912 34,616 
Gross margin58,013 45,405 
OPERATING EXPENSES
Selling6,3694,988
Marketing3,5002,740
Retail operations21,57617,149
General and administrative8,954 7,252 
Total operating expenses40,399 32,129 
Operating income17,614 13,276 
OTHER INCOME (EXPENSES)
Interest expense(209)(517)

Dividend expense on mandatorily redeemable preferred

stock and preferred equity interests

(6,286)
Earnings from joint venture investment455264
Foreign exchange losses(646)(11)
Other non-operating income (expenses)(222)172 
Total other expenses(622)(6,378)
Income before income taxes16,9926,898
Provision for income taxes6,457 4,001 
Net income$10,535 $2,897 
Weighted average common shares outstanding:
Basic67,866,667 52,536,224 
Diluted67,867,790 52,536,224 
Basic earnings per common share$0.16 $0.06 
Diluted earnings per common share$0.16 $0.06 
 
    

TUMI HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

 
March 31,
2013
December 31,
2012
(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents$27,766$36,737

Accounts receivable, less allowance for doubtful accounts of approximately $350 and

$340 at March 31, 2013 and December 31, 2012, respectively

26,99821,405
Other receivables1,6681,666
Inventories70,02270,866
Prepaid expenses and other current assets4,1193,233
Prepaid income taxes384
Deferred tax assets, current3,851 3,851
Total current assets134,424 138,142
Property, plant and equipment, net47,59447,004
Deferred tax assets, noncurrent2,1582,158
Joint venture investment2,9482,718
Goodwill142,773142,773
Intangible assets, net130,878130,946

Deferred financing costs, net of accumulated amortization of $2,799 and $2,758 at March

31, 2013 and December 31, 2012, respectively

660701
Other assets5,301 4,799
Total assets$466,736 $469,241
 
    

TUMI HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (continued)

(In thousands, except share and per share data)

 
March 31,
2013
December 31,
2012
(unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable$26,793$27,366
Accrued expenses23,23729,503
Income taxes payable5,631  
Total current liabilities55,661 56,869 
Revolving credit facility33,00045,000
Other long-term liabilities7,1217,271
Deferred tax liabilities49,016 49,016 
Total liabilities144,798 158,156 
Commitments and contingencies
STOCKHOLDERS' EQUITY

Common stock—$0.01 par value; 350,000,000 shares authorized, 68,144,473 issued

and 67,866,667 shares outstanding as of March 31, 2013 and December 31, 2012

681681

Preferred stock—$0.01 par value; 75,000,000 shares authorized and no shares issued or

outstanding as of March 31, 2013 and December 31, 2012

Additional paid-in capital309,132308,545
Treasury stock, at cost(4,874)(4,874)
Retained earnings17,7017,166
Accumulated other comprehensive loss(702)(433)
Total stockholders' equity321,938 311,085 
Total liabilities and stockholders' equity$466,736 $469,241 
 
            

TUMI HOLDINGS, INC. AND SUBSIDIARIES

Unaudited Segment Results

 
Direct-to-Indirect-to-Non-
ConsumerDirect-to-ConsumerIndirect-to-Allocated
NorthConsumerNorthConsumerCorporateConsolidated
AmericaInternationalAmericaInternationalExpensesTotals
(In thousands)
Three Months Ended March 31, 2013
Net sales$44,164$4,274$21,366$33,121$$102,925
Operating income (loss)$11,834$100$8,071$10,454$(12,845)$17,614
Depreciation and amortization$1,647$251$234$837$430$3,399
Three Months Ended March 25, 2012
Net sales$34,388$3,229$17,056$25,348$$80,021
Operating income (loss)$9,255$(290)$6,492$8,094$(10,275)$13,276
Depreciation and amortization$1,342$229$169$553$316$2,609
 

    

TUMI HOLDINGS, INC. AND SUBSIDIARIES

Unaudited Reconciliation of Net Income to

Net Income Befor

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Gift Finder Promo
More to Explore
Sat, Dec 03
Set Your Location
City, State, or Zip