Finish Line Inc. has a market cap of $793.7 million; its shares were traded at around $14.34 with a P/E ratio of 17.5 and P/S ratio of 0.7. The dividend yield of Finish Line Inc. stocks is 1.1%. Finish Line Inc. had an annual average earning growth of 3.6% over the past 10 years.FINL is in the portfolios of Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates.
Highlight of Business Operations:The Company had cash flows provided by operating activities during the thirteen weeks ended May 29, 2010 of $15.8 million compared to $6.5 million provided by operating activities during the thirteen weeks ended May 30, 2009. The increase in cash provided by operating activities as compared to the prior year period was primarily due to improved operating results. Cash equivalents are invested in short-term money market funds invested primarily in high-quality tax-exempt municipal instruments with daily liquidity.
The Company had cash flows used in investing activities for the thirteen weeks ended May 29, 2010 of $3.0 million compared to net cash provided by investing activities of $12.6 million for the thirteen weeks ended May 30, 2009. The $3.0 million used in the thirteen weeks ended May 29, 2010 was a result of $2.5 million used primarily for the construction of new stores, the remodeling of existing stores and merchandise system enhancements, along with $0.5 million in payments related to the sale of discontinued operations. Included in the $12.6 million provided in the thirteen weeks ended May 30, 2009 was $14.9 million in proceeds from the sale of marketable securities.
For the year ending February 26, 2011, the Company anticipates opening 8 to 10 new stores (4 opened during the thirteen weeks ended May 29, 2010), remodeling 15 to 20 existing stores (3 remodeled during the thirteen weeks ended May 29, 2010), and closing 10 to 15 stores (3 closed during the thirteen weeks ended May 29, 2010). The number of closings is down from our previous estimate due to our landlord partners willingness to work with us on underperforming stores. In addition, the Company has various other corporate capital and technology projects that will require capital expenditures. The Company expects capital expenditures for the current fiscal year to approximate $20.0 to $25.0 million.
The Company had cash flows provided by financing activities for the thirteen weeks ended May 29, 2010 of $0.9 million compared to net cash used in financing activities of $1.1 million for the thirteen weeks ended May 30, 2009. The $2.0 million change is due to a $1.7 million increase in proceeds received from the issuance of common stock in connection with employee stock programs and a $0.8 million increase in excess tax benefits from share-based compensation, partially offset by a $0.5 million increase in dividends paid.
On February 18, 2010, the Company entered into an unsecured $50.0 million Revolving Credit Facility Agreement (the 2010 Credit Agreement) with certain lenders, which expires on March 1, 2013. The 2010 Credit Agreement also provides that, under certain circumstances, the Company may increase the aggregate maximum amount of the credit facility by up to an additional $50.0 million. The 2010 Credit Agreement will be used by the Company to issue letters of credit. It is the Companys intention to support working capital needs and fund capital expenditures from operating cash flows and cash on hand in the foreseeable future.
On January 21, 2010, the Companys Board of Directors approved an increase to its quarterly cash dividends from $0.03 per share to $0.04 per share of Class A and Class B common stock. The Company declared dividends of $2.2 million and $1.6 million during the thirteen weeks ended May 29, 2010 and the thirteen weeks ended May 30, 2009, respectively. As of May 29, 2010 and May 30, 2009, dividends declared but not paid of $2.2 million and $1.6 million, respectively, were accrued in Other liabilities and accrued expenses on the Consolidated Balance Sheets. Further declarations of dividends, if any, remain at the discretion of the Companys Board of Directors.
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