- Reports Same Store Sales Increase of 0.8%
- Achieves Second Quarter Earnings per Diluted Share of
$0.13 - Declares Quarterly Cash Dividend of
$0.15 per Share
For the fiscal 2017 second quarter, net sales were
Gross profit for the fiscal 2017 second quarter was
Selling and administrative expense as a percentage of net sales was 30.4% in the fiscal 2017 second quarter versus 29.9% in the second quarter of the prior year. Overall selling and administrative expense for the quarter increased by
Net income for the second quarter of fiscal 2017 was
For the 26-week period ended
“After a solid start to the period, sales for our second quarter came in below expectations,” said
“During the third quarter, we expect sales comparisons to be pressured as we continue to cycle the lift in sales that we experienced last year as a result of the competitor store closures, while also operating in a challenging retail environment. Our efforts are focused on retaining the market share gains that we have produced over the past year, and we believe that our inventories are well positioned for the remainder of the summer and the back to school season.”
Quarterly Cash Dividend
The Company's Board of Directors has declared a quarterly cash dividend of
Share Repurchases
During the fiscal 2017 second quarter, pursuant to its share repurchase program, the Company repurchased 6,400 shares of its common stock for a total expenditure of
Guidance
For the fiscal 2017 third quarter, the Company expects same store sales to be in the negative low single-digit range and earnings per diluted share to be in the range of
Store Openings
During the second quarter of fiscal 2017, the Company opened two stores, ending the quarter with 433 stores in operation. The Company anticipates closing one store in the third quarter. For the fiscal 2017 full year, the Company currently anticipates opening approximately six new stores and closing approximately three 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, 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) | ||||||||
| July 2, 2017 |
January 1, 2017 |
|||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 6,628 | $ | 7,895 | ||||
| Accounts receivable, net of allowances of $40 and $42, respectively | 12,125 | 12,200 | ||||||
| Merchandise inventories, net | 328,716 | 294,319 | ||||||
| Prepaid expenses | 11,531 | 10,085 | ||||||
| Total current assets | 359,000 | 324,499 | ||||||
| Property and equipment, net | 77,438 | 78,420 | ||||||
| Deferred income taxes | 21,640 | 23,699 | ||||||
| Other assets, net of accumulated amortization of $1,508 and $1,420, respectively | 2,656 | 2,528 | ||||||
| Goodwill | 4,433 | 4,433 | ||||||
| Total assets | $ | 465,167 | $ | 433,579 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 116,433 | $ | 109,314 | ||||
| Accrued expenses | 61,847 | 76,887 | ||||||
| Current portion of capital lease obligations | 1,698 | 1,326 | ||||||
| Total current liabilities | 179,978 | 187,527 | ||||||
| Deferred rent, less current portion | 16,096 | 17,028 | ||||||
| Capital lease obligations, less current portion | 2,890 | 1,999 | ||||||
| Long-term debt | 47,920 | 10,000 | ||||||
| Other long-term liabilities | 11,501 | 11,988 | ||||||
| Total liabilities | 258,385 | 228,542 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Common stock, $0.01 par value, authorized 50,000,000 shares; issued 24,921,672 and | ||||||||
| 24,784,367 shares, respectively; outstanding 22,139,456 and 22,012,651 shares, respectively | 249 | 248 | ||||||
| Additional paid-in capital | 115,189 | 114,797 | ||||||
| Retained earnings | 125,851 | 124,363 | ||||||
| Less: Treasury stock, at cost; 2,782,216 and 2,771,716 shares, respectively | (34,507 | ) | (34,371 | ) | ||||
| Total stockholders' equity | 206,782 | 205,037 | ||||||
| Total liabilities and stockholders' equity | $ | 465,167 | $ | 433,579 | ||||
| BIG 5 SPORTING GOODS CORPORATION | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (Unaudited) | ||||||||||||
| (In thousands, except per share data) | ||||||||||||
| 13 Weeks Ended | 26 Weeks Ended | |||||||||||
| July 2, 2017 |
July 3, 2016 |
July 2, 2017 |
July 3, 2016 |
|||||||||
| Net sales | $ | 243,671 | $ | 241,409 | $ | 496,275 | $ | 475,937 | ||||
| Cost of sales | 164,363 | 165,152 | 333,345 | 328,715 | ||||||||
| Gross profit | 79,308 | 76,257 | 162,930 | 147,222 | ||||||||
| Selling and administrative expense | 74,188 | 72,259 | 148,832 | 143,478 | ||||||||
| Operating income | 5,120 | 3,998 | 14,098 | 3,744 | ||||||||
| Interest expense | 380 | 429 | 648 | 881 | ||||||||
| Income before income taxes | 4,740 | 3,569 | 13,450 | 2,863 | ||||||||
| Income taxes (1) | 1,962 | 1,445 | 5,346 | 1,858 | ||||||||
| Net income (1) | $ | 2,778 | $ | 2,124 | $ | 8,104 | $ | 1,005 | ||||
| Earnings per share: | ||||||||||||
| Basic | $ | 0.13 | $ | 0.10 | $ | 0.37 | $ | 0.05 | ||||
| Diluted (1) | $ | 0.13 | $ | 0.10 | $ | 0.37 | $ | 0.05 | ||||
| Dividends per share | $ | 0.15 | $ | 0.125 | $ | 0.30 | $ | 0.25 | ||||
| Weighted-average shares of common stock outstanding: | ||||||||||||
| Basic | 21,746 | 21,646 | 21,715 | 21,614 | ||||||||
| Diluted | 21,871 | 21,740 | 21,923 | 21,784 | ||||||||
| (1) In the second quarter and first half of fiscal 2016, the Company recorded charges of $0.2 million and $0.8 million, respectively, to write off deferred tax assets related to share-based compensation. These charges reduced net income per diluted share by $0.01 and $0.04, respectively. | ||||||||||||
Contact: Big 5 Sporting Goods CorporationBarry Emerson Sr. Vice President and Chief Financial Officer (310) 536-0611ICR, Inc. John Mills Partner (646) 277-1254