Net sales for the fiscal 2017 fourth quarter were
Gross profit for the fiscal 2017 fourth quarter was
Selling and administrative expense as a percentage of net sales was 33.3% in the fiscal 2017 fourth quarter versus 28.2% in the fourth quarter of the prior year. Overall selling and administrative expense for the quarter increased
Net loss for the fourth quarter of fiscal 2017 was
For the fiscal 2017 full year, net sales were
Mr. Miller continued, “Record warm and dry weather conditions in our markets have continued to dramatically impact winter product sales comparisons during the first quarter, especially in January as we faced extremely favorable winter weather conditions last year. While same store sales decreased in the high teens in January, sales trends improved each week throughout February as other non-winter products became more significant to our overall sales mix. Despite the impact of the unfavorable winter conditions on sales and customer traffic, we are encouraged by the strength of a number of our non-winter product categories. We look forward to moving beyond this challenging winter and into the spring selling season.”
Quarterly Cash Dividend
The Company's Board of Directors has declared a quarterly cash dividend of
Share Repurchases
During the fiscal 2017 fourth quarter, pursuant to its share repurchase program, the Company repurchased 118,609 shares of its common stock for a total expenditure of
Guidance
For the fiscal 2018 first quarter, the Company expects same store sales to be in the negative high single-digit range and loss per share to be in the range of
Store Openings
During the fourth quarter of fiscal 2017, the Company opened three new stores, including one relocation, ending fiscal 2017 with 435 stores in operation. During the fiscal 2018 first quarter, the Company does not anticipate opening or closing any stores. For the fiscal 2018 full year, the Company currently anticipates opening approximately eight new stores and closing approximately three stores.
Conference Call Information
The Company will host a conference call and audio webcast today,
About Big 5 Sporting Goods Corporation
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. These risks and uncertainties include, among other things, changes in the consumer spending environment, fluctuations in consumer holiday spending patterns, increased competition from e-commerce retailers, 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, increases in labor and benefit-related expense, changes in laws or regulations, including those related to tariffs and duties, 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) | ||||||
| December 31, 2017 |
January 1, 2017 |
|||||
| ASSETS |
||||||
| Current assets: | ||||||
| Cash | $ | 7,170 | $ | 7,895 | ||
| Accounts receivable, net of allowances of $79 and $42, respectively | 10,886 | 12,200 | ||||
| Merchandise inventories, net | 313,905 | 294,319 | ||||
| Prepaid expenses | 18,930 | 10,085 | ||||
| Total current assets | 350,891 | 324,499 | ||||
| Property and equipment, net | 77,265 | 78,420 | ||||
| Deferred income taxes | 14,172 | 23,699 | ||||
| Other assets, net of accumulated amortization of $1,575 and $1,420, respectively | 2,732 | 2,528 | ||||
| Goodwill | - | 4,433 | ||||
| Total assets | $ | 445,060 | $ | 433,579 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 113,740 | $ | 109,314 | ||
| Accrued expenses | 68,226 | 76,887 | ||||
| Current portion of capital lease obligations | 1,754 | 1,326 | ||||
| Total current liabilities | 183,720 | 187,527 | ||||
| Deferred rent, less current portion | 15,948 | 17,028 | ||||
| Capital lease obligations, less current portion | 2,800 | 1,999 | ||||
| Long-term debt | 45,000 | 10,000 | ||||
| Other long-term liabilities | 10,523 | 11,988 | ||||
| Total liabilities | 257,991 | 228,542 | ||||
| Commitments and contingencies | ||||||
| Stockholders' equity: | ||||||
| Common stock, $0.01 par value, authorized 50,000,000 shares; issued 24,919,624 and | ||||||
| 24,784,367 shares, respectively; outstanding 21,345,159 and 22,012,651 shares, respectively | 249 | 248 | ||||
| Additional paid-in capital | 116,495 | 114,797 | ||||
| Retained earnings | 112,424 | 124,363 | ||||
| Less: Treasury stock, at cost; 3,574,465 and 2,771,716 shares, respectively | (42,099 | ) | (34,371 | ) | ||
| Total stockholders' equity | 187,069 | 205,037 | ||||
| Total liabilities and stockholders' equity | $ | 445,060 | $ | 433,579 | ||
| BIG 5 SPORTING GOODS CORPORATION | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| (Unaudited) | |||||||||
| (In thousands, except per share data) | |||||||||
| Fiscal Quarter Ended | Fiscal Year Ended | ||||||||
| December 31, 2017 |
January 1, 2017 |
December 31, 2017 |
January 1, 2017 |
||||||
| Net sales | $ | 242,889 | $ | 266,283 | $ | 1,009,635 | $ | 1,021,235 | |
| Cost of sales | 170,035 | 178,936 | 686,303 | 696,777 | |||||
| Gross profit | 72,854 | 87,347 | 323,332 | 324,458 | |||||
| Selling and administrative expense (1) (2) (3) | 80,800 | 75,197 | 306,990 | 294,971 | |||||
| Operating (loss) income | (7,946 | ) | 12,150 | 16,342 | 29,487 | ||||
| Interest expense | 549 | 347 | 1,644 | 1,551 | |||||
| (Loss) income before income taxes | (8,495 | ) | 11,803 | 14,698 | 27,936 | ||||
| Income taxes (4) (5) | 4,455 | 4,109 | 13,594 | 11,050 | |||||
| Net (loss) income (1) (2) (3) (4) (5) | $ | (12,950 | ) | $ | 7,694 | $ | 1,104 | $ | 16,886 |
| Earnings per share: | |||||||||
| Basic | $ | (0.62 | ) | $ | 0.36 | $ | 0.05 | $ | 0.78 |
| Diluted (1) (2) (3) (4) (5) | $ | (0.62 | ) | $ | 0.35 | $ | 0.05 | $ | 0.77 |
| Dividends per share | $ | 0.15 | $ | 0.15 | $ | 0.60 | $ | 0.525 | |
| Weighted-average shares of common stock outstanding: | |||||||||
| Basic | 21,003 | 21,607 | 21,439 | 21,607 | |||||
| Diluted | 21,003 | 21,823 | 21,585 | 21,816 | |||||
(1) In the fourth quarter of fiscal 2017, the Company recorded a non-cash impairment charge of
(2) In the fourth quarter of fiscal 2017, the Company recorded a non-cash goodwill impairment charge of
(3) In fiscal 2016, the Company recorded charges of
(4) In the fourth quarter of fiscal 2017, the Company recorded a charge of
(5) In the fourth quarter and full year of fiscal 2016, the Company recorded (benefits) write-offs of
Contact:
Sr. Vice President and Chief Financial Officer
(310) 536-0611
Partner
(646) 277-1254