- Achieves Fourth Quarter Earnings per Diluted Share of
$0.20 , Including Charges of$0.02
- Reports Fiscal 2015 Full-Year Earnings per Diluted Share of
$0.70 , Including Charges of$0.07
- Increases Quarterly Cash Dividend by 25% to
$0.125 per Share
As the Company previously reported, net sales for the fiscal 2015 fourth quarter increased to
As a result of the fiscal year calendar, the fiscal 2015 fourth quarter included 14 weeks and the fiscal 2015 full year included 53 weeks, compared to 13 weeks and 52 weeks for the respective reporting periods in fiscal 2014. For purposes of reporting same store sales comparisons to the prior year, the Company uses comparable 14-week and 53-week periods.
Gross profit for the fiscal 2015 fourth quarter was
Selling and administrative expense as a percentage of net sales was 28.5% in the fiscal 2015 fourth quarter versus 29.7% in the fourth quarter of the prior year. Selling and administrative expense for the quarter increased
Net income for the fourth quarter of fiscal 2015 was
For the 53-week fiscal 2015 full year, net sales were
“We are pleased to have achieved earnings per share slightly above the high end of our guidance range for the fourth quarter, driven by growth in average sale and expansion of merchandise and operating margins,” said
Mr. Miller continued, “For the first quarter to date, our sales are comping up in the low-single-digit range. While we experienced very strong sales in January on the strength of favorable winter weather conditions, sales over most of February were disappointing as winter business decelerated when weather conditions turned unseasonably warm in several of our major markets and we also experienced softness in non-winter product categories. We believe that the recent softness in our sales is reflective of the challenging retail environment along with highly promotional competitive activity in our sector. Although these headwinds could persist, we feel our product assortments are well positioned as we transition to the spring selling season.
“Our decision today to raise our quarterly dividend by 25% reflects the health of our financial condition and our continued commitment to delivering strong returns to stockholders,” Mr. Miller added.
Quarterly Cash Dividend
The Company’s Board of Directors has approved a 25% increase in the Company’s quarterly cash dividend from the current rate of
Share Repurchases
In the fourth quarter of fiscal 2015, the Company repurchased 101,688 shares of its common stock for a total expenditure of
Guidance
For the fiscal 2016 first quarter, the Company expects same store sales to be in the negative low single-digit to positive low single-digit range and earnings to be in the range of a net loss of
Store Openings
During the fourth quarter of fiscal 2015, the Company closed one store as part of a relocation that began in the prior year, ending fiscal 2015 with 438 stores in operation. During the fiscal 2016 first quarter, the Company anticipates closing four stores, one of which is part of a prior relocation. For the fiscal 2016 full year, the Company currently anticipates opening approximately five to eight new stores and closing approximately ten 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) firearm-related products, seasonal fluctuations, weather conditions, changes in cost of goods, operating expense fluctuations, lower than expected profitability of Big 5’s 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, stockholder campaigns and proxy contests, 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) | ||||||||||
| January 3, 2016 |
December 28, 2014 |
|||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash | $ | 7,119 | $ | 11,503 | ||||||
| Accounts receivable, net of allowances of $61 and $110, respectively | 14,180 | 15,680 | ||||||||
| Merchandise inventories, net | 299,446 | 310,088 | ||||||||
| Prepaid expenses | 12,185 | 9,358 | ||||||||
| Deferred income taxes | 11,100 | 11,025 | ||||||||
| Total current assets | 344,030 | 357,654 | ||||||||
| Property and equipment, net | 82,036 | 78,440 | ||||||||
| Deferred income taxes | 12,302 | 12,792 | ||||||||
| Other assets, net of accumulated amortization of $1,244 and $1,067, respectively | 2,228 | 2,257 | ||||||||
| Goodwill | 4,433 | 4,433 | ||||||||
| Total assets | $ | 445,029 | $ | 455,576 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 89,961 | $ | 92,369 | ||||||
| Accrued expenses | 69,524 | 70,399 | ||||||||
| Current portion of capital lease obligations | 1,435 | 1,197 | ||||||||
| Total current liabilities | 160,920 | 163,965 | ||||||||
| Deferred rent, less current portion | 19,516 | 20,736 | ||||||||
| Capital lease obligations, less current portion | 2,392 | 1,155 | ||||||||
| Long-term debt | 54,846 | 66,312 | ||||||||
| Other long-term liabilities | 8,524 | 8,404 | ||||||||
| Total liabilities | 246,198 | 260,572 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders' equity: | ||||||||||
| Common stock, $0.01 par value, authorized 50,000,000 shares; issued 24,562,799 and | ||||||||||
| 24,445,345 shares, respectively; outstanding 21,917,982 and 22,180,458 shares, respectively | 246 | 245 | ||||||||
| Additional paid-in capital | 112,236 | 110,707 | ||||||||
| Retained earnings | 118,998 | 112,521 | ||||||||
| Less: Treasury stock, at cost; 2,644,817 and 2,264,887 shares, respectively | (32,649 | ) | (28,469 | ) | ||||||
| Total stockholders' equity | 198,831 | 195,004 | ||||||||
| Total liabilities and stockholders' equity | $ | 445,029 | $ | 455,576 | ||||||
| BIG 5 SPORTING GOODS CORPORATION | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| (Unaudited) | |||||||||
| (In thousands, except per share data) | |||||||||
| Fiscal Quarter Ended | Fiscal Year Ended | ||||||||
| January 3, 2016 |
December 28, 2014 |
January 3, 2016 |
December 28, 2014 |
||||||
| Net sales | $ | 275,006 | $ | 250,332 | $ | 1,029,098 | $ | 977,860 | |
| Cost of sales | 189,167 | 171,193 | 704,134 | 664,411 | |||||
| Gross profit | 85,839 | 79,139 | 324,964 | 313,449 | |||||
| Selling and administrative expense (1) (2) (3) (4) | 78,440 | 74,383 | 298,425 | 288,274 | |||||
| Operating income | 7,399 | 4,756 | 26,539 | 25,175 | |||||
| Interest expense | 538 | 476 | 1,791 | 1,667 | |||||
| Income before income taxes | 6,861 | 4,280 | 24,748 | 23,508 | |||||
| Income taxes | 2,586 | 1,465 | 9,451 | 8,632 | |||||
| Net income (1) (2) (3) (4) | $ | 4,275 | $ | 2,815 | $ | 15,297 | $ | 14,876 | |
| . | |||||||||
| Earnings per share: | |||||||||
| Basic | $ | 0.20 | $ | 0.13 | $ | 0.70 | $ | 0.68 | |
| Diluted (1) (2) (3) (4) | $ | 0.20 | $ | 0.13 | $ | 0.70 | $ | 0.67 | |
| Dividends per share | $ | 0.10 | $ | 0.10 | $ | 0.40 | $ | 0.40 | |
| Weighted-average shares of common stock outstanding: | |||||||||
| Basic | 21,601 | 21,841 | 21,741 | 21,933 | |||||
| Diluted | 21,716 | 21,998 | 21,927 | 22,133 | |||||
(1) In fiscal 2015, the Company recorded a pre-tax charge of
(2) In fiscal 2015, the Company recorded pre-tax charges of
(3) In the fourth quarter of fiscal 2015, the Company recorded pre-tax charges of
(4) In the fourth quarter of fiscal 2015, the Company recorded a pre-tax non-cash impairment charge of
Contact:Big 5 Sporting Goods Corporation Barry Emerson Sr. Vice President and Chief Financial Officer (310) 536-0611ICR, Inc. John Mills Partner (646) 277-1254