-
Achieves First Quarter Earnings per Diluted Share of
$0.09
-
Declares Quarterly Cash Dividend of
$0.10 per Share
For the fiscal 2014 first quarter, net sales were
Gross profit for the fiscal 2014 first quarter was
Selling and administrative expense as a percentage of net sales increased to 29.8% in the fiscal 2014 first quarter from 27.6% in the first quarter of the prior year, due primarily to lower sales levels.
Net income for the first quarter of fiscal 2014 was
"As expected, our first quarter results declined when compared to a very strong performance during the prior year, due largely to substantially reduced demand for firearms and ammunition products and soft sales of winter products resulting from warm and dry conditions in most of our western markets throughout the winter season," said
Quarterly Cash Dividend
The Company's Board of Directors has declared a quarterly cash dividend of
Share Repurchases
During the fiscal 2014 first quarter, pursuant to its share repurchase program, the Company repurchased 28,512 shares of its common stock for a total expenditure of
Guidance
For the fiscal 2014 second quarter, the Company expects same store sales comparisons in the low negative to low positive single-digit range and earnings per diluted share in the range of
Store Openings
During the first quarter of fiscal 2014, the Company closed four stores, two of which were part of relocations, and ended the quarter with 425 stores in operation. During the fiscal 2014 second quarter, the Company anticipates opening two new stores. For the fiscal 2014 full year, the Company currently anticipates opening approximately 12 to 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, lower than expected profitability of the e-commerce platform or cannibalization of sales from Big 5's existing store base which could occur as a result of operating 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) | ||
| March 30, 2014 |
December 29, 2013 |
|
| ASSETS | ||
| Current assets: | ||
| Cash | $ 5,902 | $ 9,400 |
| Accounts receivable, net of allowances of $85 and $105, respectively | 9,860 | 16,301 |
| Merchandise inventories, net | 294,071 | 300,952 |
| Prepaid expenses | 14,690 | 6,356 |
| Deferred income taxes | 10,153 | 12,000 |
| Total current assets | 334,676 | 345,009 |
| Property and equipment, net | 73,564 | 75,608 |
| Deferred income taxes | 13,348 | 13,564 |
| Other assets, net of accumulated amortization of $935 and $891, respectively | 3,192 | 3,274 |
| Goodwill | 4,433 | 4,433 |
| Total assets | $ 429,213 | $ 441,888 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 96,334 | $ 104,826 |
| Accrued expenses | 56,598 | 69,923 |
| Current portion of capital lease obligations | 1,386 | 1,567 |
| Total current liabilities | 154,318 | 176,316 |
| Deferred rent, less current portion | 20,220 | 21,078 |
| Capital lease obligations, less current portion | 1,429 | 1,595 |
| Long-term debt | 54,219 | 43,018 |
| Other long-term liabilities | 9,468 | 9,111 |
| Total liabilities | 239,654 | 251,118 |
| Commitments and contingencies | ||
| Stockholders' equity: | ||
| Common stock, $0.01 par value, authorized 50,000,000 shares; issued 24,441,150 and 24,339,537 shares, respectively; outstanding 22,370,802 and 22,297,701 shares, respectively | 244 | 244 |
| Additional paid-in capital | 109,285 | 109,901 |
| Retained earnings | 106,395 | 106,565 |
| Less: Treasury stock, at cost; 2,070,348 and 2,041,836 shares, respectively | (26,365) | (25,940) |
| Total stockholders' equity | 189,559 | 190,770 |
| Total liabilities and stockholders' equity | $ 429,213 | $ 441,888 |
| BIG 5 SPORTING GOODS CORPORATION | ||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (Unaudited) | ||
| (In thousands, except per share data) | ||
| 13 Weeks Ended | ||
| March 30, 2014 | March 31, 2013 | |
| Net sales | $ 231,263 | $ 246,266 |
| Cost of sales | 158,585 | 165,791 |
| Gross profit | 72,678 | 80,475 |
| Selling and administrative expense | 68,904 | 67,928 |
| Operating income | 3,774 | 12,547 |
| Interest expense | 434 | 453 |
| Income before income taxes | 3,340 | 12,094 |
| Income taxes | 1,280 | 4,580 |
| Net income | $ 2,060 | $ 7,514 |
| Earnings per share: | ||
| Basic | $ 0.09 | $ 0.35 |
| Diluted | $ 0.09 | $ 0.34 |
| Dividends per share | $ 0.10 | $ 0.10 |
| Weighted-average shares of common stock outstanding: | ||
| Basic | 21,980 | 21,453 |
| Diluted | 22,231 | 21,822 |
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