- Achieves Fourth Consecutive Quarter of Positive Same-Store Sales
- Delivers Third Quarter Earnings Per Share of
$0.30 vs.$0.15 in the Prior Year - Declares Quarterly Cash Dividend of
$0.05 Per Share
Net sales for the fiscal 2019 third quarter were
Gross profit for the fiscal 2019 third quarter was
Selling and administrative expense as a percentage of net sales was 28.9% in the fiscal 2019 third quarter versus 29.2% in the third quarter of the prior year. Overall selling and administrative expense for the quarter decreased
Net income for the third quarter of fiscal 2019 was
For the 39-week period ended
Operating cash flow for the 2019 fiscal year-to-date period was a positive
“With our fourth consecutive quarter of same-store sales growth, we delivered earnings significantly ahead of our guidance and double the prior year’s third quarter earnings,” said
Mr. Miller continued, “Our fourth quarter is off to a solid start, with our year-over-year sales and merchandise margin trends accelerating from the third quarter. October is a very low volume period for our business, and as always, the keys to the fourth quarter will be the holiday period and the start of the winter selling season across our markets. We feel well positioned from a promotional standpoint for the holiday season and believe that our fresh seasonal inventory will resonate well with our customers when winter weather arrives.”
Quarterly Cash Dividend
The Company's Board of Directors has declared a quarterly cash dividend of
Guidance
For the fiscal 2019 fourth quarter, the Company expects same store sales to be in the positive low single-digit range and expects to realize a loss per share in the range of
Store Openings
During the third quarter of fiscal 2019, the Company closed one store. During the fiscal 2019 fourth quarter, the Company anticipates opening two stores, including the relocation of one store that closed during the quarter. For the fiscal 2019 full year, the Company anticipates opening three stores and closing five stores, including one relocation.
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. 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, disruption in product flow, 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, risks related to Big 5’s leveraged financial condition, 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) | ||||||||||||
| September 29, 2019 | December 30, 2018 | |||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash | $ | 5,042 | $ | 6,765 | ||||||||
| Accounts receivable, net of allowances of $34 and $28, respectively | 10,332 | 14,184 | ||||||||||
| Merchandise inventories, net | 310,514 | 294,900 | ||||||||||
| Prepaid expenses | 8,395 | 9,224 | ||||||||||
| Total current assets | 334,283 | 325,073 | ||||||||||
| Operating lease right-of-use assets, net | 270,363 | — | ||||||||||
| Property and equipment, net | 70,524 | 76,488 | ||||||||||
| Deferred income taxes | 13,930 | 14,543 | ||||||||||
| Other assets, net of accumulated amortization of $1,968 and $1,772, respectively | 3,725 | 3,457 | ||||||||||
| Total assets | $ | 692,825 | $ | 419,561 | ||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 90,375 | $ | 80,613 | ||||||||
| Accrued expenses | 59,653 | 67,659 | ||||||||||
| Current portion of operating lease liabilities | 66,673 | — | ||||||||||
| Current portion of finance lease liabilities | 2,546 | 2,322 | ||||||||||
| Total current liabilities | 219,247 | 150,594 | ||||||||||
| Operating lease liabilities, less current portion | 219,474 | — | ||||||||||
| Finance lease liabilities, less current portion | 4,710 | 4,823 | ||||||||||
| Long-term debt | 60,642 | 65,000 | ||||||||||
| Deferred rent, less current portion | — | 14,615 | ||||||||||
| Other long-term liabilities | 8,108 | 9,668 | ||||||||||
| Total liabilities | 512,181 | 244,700 | ||||||||||
| Commitments and contingencies | ||||||||||||
| Stockholders' equity: | ||||||||||||
| Common stock, $0.01 par value, authorized 50,000,000 shares; issued 25,321,899 and | ||||||||||||
| 25,074,307 shares, respectively; outstanding 21,671,686 and 21,424,094 shares, respectively | 253 | 250 | ||||||||||
| Additional paid-in capital | 119,602 | 118,351 | ||||||||||
| Retained earnings (1) | 103,316 | 98,787 | ||||||||||
| Less: Treasury stock, at cost; 3,650,213 shares | (42,527) | (42,527) | ||||||||||
| Total stockholders' equity | 180,644 | 174,861 | ||||||||||
| Total liabilities and stockholders' equity | $ | 692,825 | $ | 419,561 | ||||||||
(1) In the first quarter of fiscal 2019, the Company recorded an after-tax decrease to beginning retained earnings of
| BIG 5 SPORTING GOODS CORPORATION | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| (Unaudited) | |||||||||
| (In thousands, except per share data) | |||||||||
| 13 Weeks Ended |
39 Weeks Ended |
||||||||
| September 29, 2019 | September 30, 2018 | September 29, 2019 | September 30, 2018 | ||||||
| Net sales | $ | 266,150 | $ | 266,351 | $ | 752,401 | $ | 740,480 | |
| Cost of sales | 180,158 | 183,852 | 517,416 | 509,984 | |||||
| Gross profit | 85,992 | 82,499 | 234,985 | 230,496 | |||||
| Selling and administrative expense (1) | 76,886 | 77,680 | 221,676 | 225,824 | |||||
| Operating income | 9,106 | 4,819 | 13,309 | 4,672 | |||||
| Interest expense | 683 | 860 | 2,197 | 2,309 | |||||
| Income before income taxes | 8,423 | 3,959 | 11,112 | 2,363 | |||||
| Income tax expense (2) | 2,026 | 844 | 3,023 | 805 | |||||
| Net income | $ | 6,397 | $ | 3,115 | $ | 8,089 | $ | 1,558 | |
| Earnings per share (1)(2): | |||||||||
| Basic | $ | 0.30 | $ | 0.15 | $ | 0.38 | $ | 0.07 | |
| Diluted | $ | 0.30 | $ | 0.15 | $ | 0.38 | $ | 0.07 | |
| Weighted-average shares of common stock outstanding: | |||||||||
| Basic | 21,132 | 20,990 | 21,093 | 20,972 | |||||
| Diluted | 21,154 | 21,000 | 21,125 | 21,021 | |||||
(1) In the second quarter of fiscal 2019, the Company recorded a favorable settlement of
(2) In the first nine months of fiscal 2019 and 2018, the Company recorded charges of
Contact:
Big 5 Sporting Goods Corporation
Sr. Vice President and Chief Financial Officer
(310) 536-0611
Managing Partner
(646) 277-1254
Source: Big 5 Sporting Goods Corporation