EL SEGUNDO, Calif., Mar 16, 2004 /PRNewswire-FirstCall via COMTEX/ -- Big 5 Sporting Goods Corporation (Nasdaq: BGFV) today announced that its wholly owned subsidiary, Big 5 Corp., will redeem $15 million principal amount of its 10.875% senior notes due 2007, using funds available under a revolving credit facility. Following the redemption, which is scheduled to be completed in mid-April 2004, the outstanding balance of the company's 10.875% senior notes will be reduced to a face amount of $33.1 million from an original face amount of $131 million when the notes were issued in November 1997.
Big 5 estimates that the redemption will result in annualized interest expense savings of approximately $700,000, or $0.03 per diluted share, on an after-tax basis, based on current interest rates. The notes will be redeemed at 103.65% of their face value, and taking into account the write-off of unamortized financing fees and original issue discount, the company will recognize a resulting after-tax charge of approximately $500,000, or $0.02 per diluted share, in the 2004 second fiscal quarter.
"This transaction follows similar redemptions totaling $55 million during 2003 and will allow us to continue to enhance our operating results with lower annual interest expense, which incrementally adds to our earnings," said Steven G. Miller, Big 5's Chairman, President and Chief Executive Officer.
About Big 5 Sporting Goods Corporation
Big 5 is the leading sporting goods retailer in the western United States, operating 294 stores in 10 states under the "Big 5 Sporting Goods" name. Big 5 provides a full-line product offering in a traditional sporting goods store format that averages approximately 11,000 square feet. Big 5's product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, snowboarding and in-line skating.
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, which may cause Big 5's actual results in future periods to differ materially from forecasted results. Those risks and uncertainties include, among other things, the competitive environment in the sporting goods industry in general and in Big 5's specific market areas, inflation, product availability and growth opportunities, seasonal fluctuations, weather conditions, changes in costs of goods, changes in interest rates and economic conditions in general. Those and other risks are more fully described in Big 5's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K filed on March 12, 2004. Big 5 disclaims any obligation to update any such factors or to publicly announce results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.
SOURCE Big 5 Sporting Goods Corporation
Charles Kirk, Sr. Vice President and Chief Financial Officer of Big 5 Sporting Goods Corporation, +1-310-536-0611; or Robert Jaffe of PondelWilkinson MS&L, +1-323-866-6007, for Big 5 Sporting Goods Corporation
http://www.big5sportinggoods.com