-
Achieves Fourth Quarter Earnings per Diluted Share Increase of 21% to
$0.23 -
Reports Fiscal 2013 Full-Year Earnings per Diluted Share Increase of 84% to
$1.27 , Including Charges of$0.04 -
Declares Quarterly Cash Dividend of
$0.10 per Share
As the Company previously reported, net sales for the fiscal 2013 fourth quarter increased to
Gross profit for the fiscal 2013 fourth quarter increased to
Selling and administrative expense as a percentage of net sales improved to 28.9% in the fiscal 2013 fourth quarter from 29.2% in the fourth quarter of the prior year.
Net income for the fourth quarter of fiscal 2013 was
For the fiscal 2013 full year, net sales increased to
"We are pleased to have delivered another quarter of earnings growth in a very challenging retail environment," said
Mr. Miller continued, "While we are pleased with our performance in 2013, we anticipate a very challenging first quarter of 2014 as we face comparisons against the peak of the surge in demand for firearms and ammunition products and favorable winter weather last year. For the start of the first quarter, we have experienced exceptionally unfavorable winter weather in most of our key western markets, with extreme drought conditions leading to reduced demand for winter products. Given these factors and the resulting impact on traffic levels in our stores, we are currently anticipating a high single-digit decrease in same store sales for the first quarter. Excluding winter and firearms and ammunition products, our sales are performing positively for the quarter to date. As we look beyond the first quarter, we believe that these pressures will ease to a large degree and we should be in a position to produce positive same store sales over the balance of the year."
Quarterly Cash Dividend
The Company's Board of Directors has declared a quarterly cash dividend of
Guidance
For the fiscal 2014 first quarter, the Company expects same store sales in the negative high single-digit range and earnings per diluted share in the range of
Store Openings
During the fourth quarter of fiscal 2013, the Company opened nine stores, ending fiscal 2013 with 429 stores in operation. During the fiscal 2014 first quarter, the Company has closed four stores, three as part of relocations that began in fiscal 2013. For the fiscal 2014 full year, the Company currently anticipates opening approximately 15 net new stores.
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, fluctuations in consumer holiday spending patterns, breach of data security or other unauthorized disclosure of sensitive personal or confidential information, the competitive environment in the sporting goods industry in general and in Big 5's specific market areas, inflation, product availability and growth opportunities, changes in the current market for (or regulation of) firearms, ammunition and certain related accessories, seasonal fluctuations, weather conditions, changes in cost of goods, operating expense fluctuations, higher than expected costs related to the development of an e-commerce platform, delay in completing the e-commerce platform or lower than expected profitability of the e-commerce platform, litigation risks, disruption in product flow, changes in interest rates, credit availability, higher expense 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) | ||
| December 29, 2013 | December 30, 2012 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 9,400 | $ 7,635 |
| Accounts receivable, net of allowances of $105 and $99, respectively | 16,301 | 15,297 |
| Merchandise inventories, net | 300,952 | 270,350 |
| Prepaid expenses | 6,356 | 8,784 |
| Deferred income taxes | 12,000 | 9,905 |
| Total current assets | 345,009 | 311,971 |
| Property and equipment, net | 75,608 | 72,089 |
| Deferred income taxes | 13,564 | 14,795 |
| Other assets, net of accumulated amortization of $891 and $637, respectively | 3,274 | 3,372 |
| Goodwill | 4,433 | 4,433 |
| Total assets | $ 441,888 | $ 406,660 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 104,826 | $ 92,688 |
| Accrued expenses | 69,923 | 67,553 |
| Current portion of capital lease obligations | 1,567 | 1,720 |
| Total current liabilities | 176,316 | 161,961 |
| Deferred rent, less current portion | 21,078 | 21,386 |
| Capital lease obligations, less current portion | 1,595 | 2,855 |
| Long-term debt | 43,018 | 47,461 |
| Other long-term liabilities | 9,111 | 8,577 |
| Total liabilities | 251,118 | 242,240 |
| Commitments and contingencies | ||
| Stockholders' equity: | ||
| Common stock, $0.01 par value, authorized 50,000,000 shares; issued 24,339,537 and 23,783,084 shares, respectively; outstanding 22,297,701 and 21,741,248 shares, respectively | 244 | 238 |
| Additional paid-in capital | 109,901 | 102,658 |
| Retained earnings | 106,565 | 87,464 |
| Less: Treasury stock, at cost; 2,041,836 shares | (25,940) | (25,940) |
| Total stockholders' equity | 190,770 | 164,420 |
| Total liabilities and stockholders' equity | $ 441,888 | $ 406,660 |
| BIG 5 SPORTING GOODS CORPORATION | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| (In thousands, except per share data) | ||||
| Fiscal Quarter Ended | Fiscal Year Ended | |||
| December 29, 2013 | December 30, 2012 | December 29, 2013 | December 30, 2012 | |
| Net sales (1) | $ 248,037 | $ 243,608 | $ 993,323 | $ 940,490 |
| Cost of sales | 167,235 | 165,216 | 664,583 | 637,721 |
| Gross profit (1) | 80,802 | 78,392 | 328,740 | 302,769 |
| Selling and administrative expense (1) (2) (3) | 71,773 | 71,237 | 281,313 | 276,797 |
| Operating income | 9,029 | 7,155 | 47,427 | 25,972 |
| Interest expense | 479 | 557 | 1,745 | 2,202 |
| Income before income taxes | 8,550 | 6,598 | 45,682 | 23,770 |
| Income taxes | 3,360 | 2,566 | 17,736 | 8,855 |
| Net income (1) (2) (3) | $ 5,190 | $ 4,032 | $ 27,946 | $ 14,915 |
| Earnings per share: | ||||
| Basic | $ 0.24 | $ 0.19 | $ 1.28 | $ 0.70 |
| Diluted (1) (2) (3) | $ 0.23 | $ 0.19 | $ 1.27 | $ 0.69 |
| Dividends per share | $ 0.10 | $ 0.075 | $ 0.40 | $ 0.30 |
| Weighted-average shares of common stock outstanding: | ||||
| Basic | 21,960 | 21,338 | 21,765 | 21,394 |
| Diluted | 22,207 | 21,673 | 22,083 | 21,616 |
| (1) In fiscal 2013, the Company recorded a pre-tax charge of $1.3 million for legal settlements, of which $0.3 million was classified as a reduction to net sales and $1.0 million was classified as selling and administrative expense. This charge reduced net income by $0.8 million, or $0.04 per diluted share. | ||||
| (2) In the fourth quarter and full fiscal year ended December 30, 2012, the Company recorded pre-tax charges of $0.1 million and $1.2 million, respectively, related to store closing costs. These charges reduced net income in the same periods by $48,000 and $0.8 million, respectively, or $0.00 per diluted share and $0.03 per diluted share, respectively. These charges were recorded in selling and administrative expense. | ||||
| (3) In fiscal 2013 and 2012, the Company recorded pre-tax non-cash impairment charges of $0.1 million and $0.2 million, respectively, related to certain underperforming stores. These charges reduced net income in fiscal 2013 and 2012 by $44,000, or $0.00 per diluted share, and $0.1 million, or $0.01 per diluted share, respectively. These charges were recorded in selling and administrative expense. | ||||
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