Achieves Fourth Quarter Earnings per Diluted Share of
Reports Fiscal 2008 Full-Year Earnings per Diluted Share of
Declares Quarterly Cash Dividend of
EL SEGUNDO, Calif.,
As the Company previously reported, for the fiscal 2008 fourth quarter,
net sales were
Gross profit for the fiscal 2008 fourth quarter was
Selling and administrative expense as a percentage of net sales was 29.3%
in the fiscal 2008 fourth quarter versus 28.8% in the fourth quarter of the
prior year, primarily reflecting deleveraging of expenses as a result of lower
sales volume. Overall selling and administrative expense declined
Net income for the fourth quarter of fiscal 2008 was
For the fiscal 2008 full year ended
"In an increasingly difficult economic environment, we are pleased to
report fourth quarter and full year earnings at the upper end of the guidance
that we issued last November," said
Mr. Miller continued, "Recognizing that the economy is likely to remain challenging throughout 2009, we remain comfortable with our financial condition as we continue to take the steps we believe are necessary to effectively manage through this recessionary environment. We expect to further reduce our cost structure and manage our cash flow as business conditions warrant. We remain highly disciplined in our inventory management and are taking a conservative approach to new store growth. While we continue to explore opportunities for new locations, we expect to be very cautious in opening new stores until we have greater visibility of a broader economic turnaround."
Quarterly Cash Dividend
Due to the nearly unprecedented downturn in the economy, the Company's
Board of Directors has determined to reduce the Company's quarterly cash
dividend to
Share Repurchases
During the fiscal 2008 fourth quarter, the Company repurchased 25,000
shares of its common stock for a total expenditure of
Guidance
Given the degree of uncertainty in the current economic environment, the Company will not at this time provide annual same store sales guidance or annual earnings per share guidance for fiscal 2009. The Company will currently provide forward quarter same store sales and earnings per share guidance.
The Company's guidance for the first quarter of fiscal 2009 assumes that
sales will continue to be impacted by the challenging consumer environment.
For the fiscal 2009 first quarter, the Company expects a decline in same store
sales in the high-single digit range and earnings per diluted share in the
range of
Store Openings
The Company opened nine new stores during the fourth quarter of fiscal 2008, bringing its store count at the end of fiscal 2008 to 381 stores, from 363 stores at the end of fiscal 2007. The Company expects the number of new store openings in fiscal 2009 to be substantially lower than fiscal 2008 due to the continued challenging consumer environment.
Conference Call Information
The Company will host a conference call and audio webcast today at
About
Big 5 is a leading sporting goods retailer in the western
Except for historical information contained herein, the statements in this
release are forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks and uncertainties and other factors
that may cause Big 5's actual results in current or future periods to differ
materially from forecasted results. Those risks and uncertainties include,
among other things, continued or worsening weakness in the consumer spending
environment and the U.S. financial and credit markets, the competitive
environment in the sporting goods industry in general and in Big 5's specific
market areas, inflation, product availability and growth opportunities,
seasonal fluctuations, weather conditions, changes in cost of goods, operating
expense fluctuations, disruption in product flow, changes in interest rates,
credit availability, higher costs associated with current and new sources of
credit resulting from uncertainty in financial markets and economic conditions
in general. Those and other risks and uncertainties are more fully described
in Big 5's filings with the
FINANCIAL TABLES FOLLOW
BIG 5 SPORTING GOODS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share amounts)
December 28, December 30,
2008 2007
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $9,058 $9,741
Accounts receivable, net of allowances of
$305 and $405, respectively 16,611 14,927
Merchandise inventories, net 232,962 252,634
Prepaid expenses 8,201 7,069
Deferred income taxes 8,333 8,051
----- -----
Total current assets 275,165 292,422
------- -------
Property and equipment, net 94,241 93,244
Deferred income taxes 13,363 12,780
Other assets, net of accumulated amortization
of $293 and $241, respectively 1,155 1,044
Goodwill 4,433 4,433
----- -----
Total assets $388,357 $403,923
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $88,079 $95,310
Accrued expenses 55,862 62,429
Current portion of capital lease obligations 1,942 1,649
----- -----
Total current liabilities 145,883 159,388
------- -------
Deferred rent, less current portion 24,960 22,075
Capital lease obligations, less current portion 2,948 2,279
Long-term debt 96,499 103,369
Other long-term liabilities 6,267 7,657
----- -----
Total liabilities 276,557 294,768
------- -------
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value, authorized
50,000,000 shares; issued 23,004,087 and
22,894,987 shares, respectively; outstanding
21,520,792 and 22,012,691 shares, respectively 230 228
Additional paid-in capital 92,704 90,851
Retained earnings 40,232 34,137
Less: Treasury stock, at cost; 1,483,295 and
882,296 shares, respectively (21,366) (16,061)
------- -------
Total stockholders' equity 111,800 109,155
------- -------
Total liabilities and stockholders' equity $388,357 $403,923
======== ========
BIG 5 SPORTING GOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
13 Weeks Ended 52 Weeks Ended
-------------- --------------
December 28, December 30, December 28, December 30,
2008 2007 2008 2007
---- ---- ---- ----
Net sales $219,609 $232,131 $864,650 $898,292
Cost of sales (1) 148,337 152,911 579,165 589,150
------- ------- ------- -------
Gross profit (1) 71,272 79,220 285,485 309,142
Selling and
administrative expense 64,298 66,918 257,883 256,180
------ ------ ------- -------
Operating income 6,974 12,302 27,602 52,962
Interest expense 1,287 2,110 5,198 6,614
----- ----- ----- -----
Income before
income taxes 5,687 10,192 22,404 46,348
Income taxes 2,085 4,010 8,500 18,257
----- ----- ----- ------
Net income (1) $3,602 $6,182 $13,904 $28,091
====== ====== ======= =======
Earnings per share:
Basic $0.17 $0.28 $0.64 $1.25
===== ===== ===== =====
Diluted $0.17 $0.28 $0.64 $1.25
===== ===== ===== =====
Dividends per share $0.09 $0.09 $0.36 $0.36
===== ===== ===== =====
Weighted-average
shares of common
stock outstanding:
Basic 21,415 22,087 21,608 22,465
====== ====== ====== ======
Diluted 21,415 22,160 21,619 22,559
====== ====== ====== ======
(1) In the second quarter of fiscal 2008, the Company recorded a pre-tax
charge of $1.5 million to correct an error in its previously recognized
straight-line rent expense, substantially all of which related to prior
periods and accumulated over a period of 15 years. This charge reduced
net income in fiscal 2008 by $0.9 million , or $0.04 per diluted share,
and increased the deferred rent liability by $1.5 million and the related
deferred income tax asset by $0.6 million on the Company's consolidated
balance sheet. The Company determined this charge to be immaterial to its
prior periods' and current year consolidated financial statements.
SOURCE
CONTACT:
Vice President and Chief Financial Officer
of
+1-310-536-0611;
or
Senior
Managing Director of
+1-310-954-1105,
for
Web Site: http://www.big5sportinggoods.com