- Reports Same Store Sales Increase of 6.8%
- Reports Third Quarter Earnings per Diluted Share of
$0.38 , Including Charges of$0.03 per Diluted Share
- Increases Quarterly Cash Dividend by 20% to
$0.15 per Share
For the fiscal 2016 third quarter, net sales were
Gross profit for the fiscal 2016 third quarter was
Selling and administrative expense as a percentage of net sales was 27.3% in the fiscal 2016 third quarter versus 27.7% in the third quarter of the prior year. Overall selling and administrative expense for the quarter increased
Net income for the third quarter of fiscal 2016 was
For the 39-week period ended
Net income for the first 39 weeks of fiscal 2016 was
“We are very pleased to deliver an exceptionally strong third quarter performance, with earnings meaningfully above the prior year as well as the high end of our guidance range,” said
Mr. Miller added, “The positive sales trending experienced in the third quarter has continued, with same store sales up in the high single-digit range for the fourth quarter to date, as we continue to benefit from the competitive rationalization of the retail sporting goods market. While the consumer spending environment over the holiday season and winter weather conditions in our markets remain uncertain, we feel well positioned to produce strong results over the course of the quarter.”
Quarterly Cash Dividend
The Company’s Board of Directors has approved a 20% increase in the Company’s quarterly cash dividend from the current rate of
Share Repurchases
During the fiscal 2016 third quarter, pursuant to its share repurchase program, the Company repurchased 122,999 shares of its common stock for a total expenditure of
Guidance
For the fiscal 2016 fourth quarter, the Company expects same store sales to be in the positive mid-single-digit range and earnings per diluted share to be in the range of
Store Openings
During the third quarter of fiscal 2016, the Company opened two new stores and closed five stores, ending the quarter with 432 stores in operation. During the fiscal 2016 fourth quarter, the Company anticipates opening one new store and closing one store, which would result in a year-end store count of 432.
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) | ||||||||||
| October 2, 2016 |
January 3, 2016 |
|||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash | $ | 5,479 | $ | 7,119 | ||||||
| Accounts receivable, net of allowances of $40 and $61, respectively | 8,934 | 14,180 | ||||||||
| Merchandise inventories, net | 289,838 | 299,446 | ||||||||
| Prepaid expenses | 9,895 | 12,185 | ||||||||
| Total current assets | 314,146 | 332,930 | ||||||||
| Property and equipment, net | 79,402 | 82,036 | ||||||||
| Deferred income taxes (1) | 21,676 | 23,402 | ||||||||
| Other assets, net of accumulated amortization of $1,376 and $1,244, respectively | 2,259 | 2,228 | ||||||||
| Goodwill | 4,433 | 4,433 | ||||||||
| Total assets | $ | 421,916 | $ | 445,029 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 105,025 | $ | 89,961 | ||||||
| Accrued expenses | 63,776 | 69,524 | ||||||||
| Current portion of capital lease obligations | 1,383 | 1,435 | ||||||||
| Total current liabilities | 170,184 | 160,920 | ||||||||
| Deferred rent, less current portion | 17,597 | 19,516 | ||||||||
| Capital lease obligations, less current portion | 2,313 | 2,392 | ||||||||
| Long-term debt | 22,875 | 54,846 | ||||||||
| Other long-term liabilities | 9,755 | 8,524 | ||||||||
| Total liabilities | 222,724 | 246,198 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders' equity: | ||||||||||
| Common stock, $0.01 par value, authorized 50,000,000 shares; issued 24,666,552 and | ||||||||||
| 24,562,799 shares, respectively; outstanding 21,894,836 and 21,917,982 shares, respectively | 247 | 246 | ||||||||
| Additional paid-in capital | 113,237 | 112,236 | ||||||||
| Retained earnings | 119,967 | 118,998 | ||||||||
| Less: Treasury stock, at cost; 2,771,716 and 2,644,817 shares, respectively | (34,259 | ) | (32,649 | ) | ||||||
| Total stockholders' equity | 199,192 | 198,831 | ||||||||
| Total liabilities and stockholders' equity | $ | 421,916 | $ | 445,029 | ||||||
| (1) In the first quarter of fiscal 2016, the Company elected to retrospectively early adopt ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which requires that deferred tax liabilities and assets be classified as non-current in a classified balance sheet. Accordingly, deferred tax assets in the amount of $11.1 million, which were previously classified as current assets as of January 3, 2016, were reclassified to non-current deferred income tax assets to conform to current year presentation. | ||||||||||
| BIG 5 SPORTING GOODS CORPORATION | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| (Unaudited) | |||||||||
| (In thousands, except per share data) | |||||||||
| 13 Weeks Ended | 39 Weeks Ended | ||||||||
| October 2, 2016 |
September 27, 2015 |
October 2, 2016 |
September 27, 2015 |
||||||
| Net sales | $ | 279,015 | $ | 270,130 | $ | 754,952 | $ | 754,092 | |
| Cost of sales | 189,126 | 184,965 | 517,841 | 514,967 | |||||
| Gross profit | 89,889 | 85,165 | 237,111 | 239,125 | |||||
| Selling and administrative expense (1) (2) (3) | 76,296 | 74,870 | 219,774 | 219,985 | |||||
| Operating income | 13,593 | 10,295 | 17,337 | 19,140 | |||||
| Interest expense | 323 | 438 | 1,204 | 1,253 | |||||
| Income before income taxes | 13,270 | 9,857 | 16,133 | 17,887 | |||||
| Income taxes (4) | 5,083 | 3,727 | 6,941 | 6,865 | |||||
| Net income (1) (2) (3) (4) | $ | 8,187 | $ | 6,130 | $ | 9,192 | $ | 11,022 | |
| Earnings per share: | |||||||||
| Basic | $ | 0.38 | $ | 0.28 | $ | 0.43 | $ | 0.51 | |
| Diluted (1) (2) (3) (4) | $ | 0.38 | $ | 0.28 | $ | 0.42 | $ | 0.50 | |
| Dividends per share | $ | 0.125 | $ | 0.10 | $ | 0.375 | $ | 0.30 | |
| Weighted-average shares of common stock outstanding: | |||||||||
| Basic | 21,593 | 21,730 | 21,607 | 21,791 | |||||
| Diluted | 21,732 | 21,850 | 21,790 | 21,977 | |||||
| (1) In the third quarter and first nine months of fiscal 2016, the Company recorded pre-tax charges of $1.1 million and $1.2 million, respectively, related to store closing costs. These charges reduced net income by $0.7 million, or $0.03 per diluted share, and $0.7 million, or $0.03 per diluted share, respectively. | |||||||||
| (2) In the first half of fiscal 2015, the Company recorded pre-tax charges of $1.6 million related to a publicly-disclosed proxy contest. These charges reduced net income by $1.0 million, or $0.05 per diluted share. | |||||||||
| (3) In the first quarter of fiscal 2015, the Company recorded a pre-tax charge of $0.4 million related to a legal settlement. This charge reduced net income by $0.2 million, or $0.01 per diluted share. | |||||||||
| (4) In the first half of fiscal 2016, the Company recorded charges of $0.8 million to write off deferred tax assets related to share-based compensation. These charges reduced net income per diluted share by $0.04. | |||||||||
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