-
Reports Same Store Sales Increase of 1.0%
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Achieves Second Quarter Earnings Per Diluted Share of
$0.12
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Declares Quarterly Cash Dividend of
$0.075 Per Share
For the fiscal 2012 second quarter, net sales increased to
Gross profit for the fiscal 2012 second quarter increased to
Selling and administrative expense as a percentage of net sales improved to 30.3% in the fiscal 2012 second quarter from 30.5% in the second quarter of the prior year. Overall selling and administrative expense increased
Net income for the second quarter of fiscal 2012 was
For the 26-week period ended
"We are pleased to report that, despite continuing to operate in a challenging macroeconomic environment, our business generated growth in same store sales and merchandise margins and achieved better than expected earnings for the second quarter," said
Mr. Miller continued, "Our positive momentum has continued in the third quarter and, as anticipated, sales in early July also benefited from the calendar shift of the
Quarterly Cash Dividend
The Company's Board of Directors has declared a quarterly cash dividend of
Share Repurchases
During the fiscal 2012 second quarter, the Company repurchased 131,420 shares of its common stock for a total expenditure of
Guidance
For the fiscal 2012 third quarter, the Company expects same store sales in the positive low to mid-single-digit range and earnings per diluted share in the range of
Store Openings
During the second quarter of fiscal 2012, the Company opened three stores, one of which relates to a relocation, and closed three stores, one of which relates to a relocation. The Company ended the fiscal 2012 second quarter with 407 stores in operation. During the fiscal 2012 third quarter, the Company anticipates opening three new stores, one of which relates to a relocation, and closing two stores, one of which relates to a relocation. During the fiscal 2012 fourth quarter, the Company currently anticipates opening approximately nine stores and closing one store that relates to a relocation. For the fiscal 2012 full year, the Company currently anticipates opening approximately thirteen new stores, relocating three stores and closing three stores. The Company currently expects to end fiscal 2012 with approximately 416 stores in operation.
Conference Call Information
The Company will host a conference call and audio webcast today,
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, litigation risks, disruption in product flow, changes in interest rates, credit availability, higher costs associated with 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) | ||
|
July 1, 2012 |
January 1, 2012 |
|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 6,246 | $ 4,900 |
| Accounts receivable, net of allowances of $91 and $142, respectively | 12,110 | 13,106 |
| Merchandise inventories, net | 289,697 | 264,278 |
| Prepaid expenses | 8,518 | 7,972 |
| Deferred income taxes | 8,421 | 8,410 |
| Total current assets | 324,992 | 298,666 |
| Property and equipment, net | 71,458 | 75,369 |
| Deferred income taxes | 14,659 | 13,236 |
| Other assets, net of accumulated amortization of $510 and $383, respectively | 2,244 | 2,360 |
| Goodwill | 4,433 | 4,433 |
| Total assets | $ 417,786 | $ 394,064 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 105,740 | $ 77,593 |
| Accrued expenses | 52,917 | 62,547 |
| Current portion of capital lease obligations | 1,662 | 1,617 |
| Total current liabilities | 160,319 | 141,757 |
| Deferred rent, less current portion | 21,536 | 22,483 |
| Capital lease obligations, less current portion | 3,327 | 3,145 |
| Long-term debt | 71,372 | 63,476 |
| Other long-term liabilities | 7,049 | 6,613 |
| Total liabilities | 263,603 | 237,474 |
| Commitments and contingencies | ||
| Stockholders' equity: | ||
| Common stock, $0.01 par value, authorized 50,000,000 shares; issued 23,593,529 and 23,483,815 shares, respectively; outstanding 21,696,793 and 21,890,970 shares, respectively | 236 | 235 |
| Additional paid-in capital | 100,114 | 99,665 |
| Retained earnings | 78,506 | 79,037 |
| Less: Treasury stock, at cost; 1,896,736 and 1,592,845 shares, respectively | (24,673) | (22,347) |
| Total stockholders' equity | 154,183 | 156,590 |
| Total liabilities and stockholders' equity | $ 417,786 | $ 394,064 |
| BIG 5 SPORTING GOODS CORPORATION | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| (In thousands, except per share data) | ||||
| 13 Weeks Ended | 26 Weeks Ended | |||
|
July 1, 2012 |
July 3, 2011 |
July 1, 2012 |
July 3, 2011 |
|
| Net sales | $ 226,612 | $ 219,588 | $ 445,108 | $ 440,731 |
| Cost of sales | 153,536 | 147,846 | 304,604 | 296,806 |
| Gross profit | 73,076 | 71,742 | 140,504 | 143,925 |
| Selling and administrative expense | 68,591 | 66,844 | 135,176 | 134,106 |
| Operating income | 4,485 | 4,898 | 5,328 | 9,819 |
| Interest expense | 576 | 601 | 1,176 | 1,206 |
| Income before income taxes | 3,909 | 4,297 | 4,152 | 8,613 |
| Income taxes | 1,351 | 1,192 | 1,438 | 2,748 |
| Net income | $ 2,558 | $ 3,105 | $ 2,714 | $ 5,865 |
| Earnings per share: | ||||
| Basic | $ 0.12 | $ 0.14 | $ 0.13 | $ 0.27 |
| Diluted | $ 0.12 | $ 0.14 | $ 0.13 | $ 0.27 |
| Dividends per share | $ 0.075 | $ 0.075 | $ 0.15 | $ 0.15 |
| Weighted-average shares of common stock outstanding: | ||||
| Basic | 21,424 | 21,672 | 21,457 | 21,645 |
| Diluted | 21,539 | 21,850 | 21,610 | 21,923 |
| (1) In the second quarter of fiscal 2012, the Company recorded a pre-tax charge of $0.7 million related to store closing costs, which was reflected in selling and administrative expense in the condensed consolidated statement of operations. This charge reduced net income by $0.5 million, or $0.02 per diluted share. | ||||
| (2) In the second quarter of fiscal 2012 and 2011, the Company recorded pre-tax non-cash impairment charges of $0.2 million and $0.6 million, respectively, related to certain underperforming stores. These charges reduced net income by $0.1 million, or $0.01 per diluted share, for fiscal 2012, and $0.4 million, or $0.02 per diluted share, for fiscal 2011. These impairment charges were recorded in selling and administrative expense in the condensed consolidated statements of operations. | ||||
CONTACT:Big 5 Sporting Goods Corporation Barry Emerson Sr. Vice President and Chief Financial Officer (310) 536-0611ICR, Inc. John Mills Senior Managing Director (310) 954-1105