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Dick's Sporting Goods Reports Fourth Quarter and Full Year 2012 Results



   Dick's Sporting Goods Reports Fourth Quarter and Full Year 2012 Results

-- Consolidated earnings per diluted share increased 17% to $1.03 per diluted
share in the fourth quarter of 2012 compared to earnings per diluted share of
$0.88 in the fourth quarter of 2011

-- Full year consolidated non-GAAP earnings per diluted share increased 25% to
$2.53 from 2011 consolidated non-GAAP earnings per diluted share of $2.02

-- Company to make significant growth investments in 2013 for the long-term
benefit of the business and its shareholders

-- Company announces $1 billion five-year share repurchase program

PR Newswire

PITTSBURGH, March 11, 2013

PITTSBURGH, March 11, 2013 /PRNewswire/ -- Dick's Sporting Goods, Inc. (NYSE:
DKS), the largest U.S.-based full-line sporting goods retailer, today reported
sales and earnings results for the fourth quarter and full year ended February
2, 2013.

Fourth Quarter Results (14 weeks compared to 13 weeks last year)

The Company reported consolidated net income for the 14 weeks ended February
2, 2013 of $129.7 million, or $1.03 per diluted share, compared to the
Company's expectations provided on November 13, 2012 of $1.03 to 1.05 per
diluted share. The fourth quarter includes approximately $0.03 per diluted
share for the 14^th week. For the fourth quarter ended January 28, 2012, the
Company reported consolidated net income of $111.1 million, or $0.88 per
diluted share. 

Net sales for the 14-week quarter of 2012 increased by 12.0% to $1.8 billion,
driven by the growth of our store network, a 1.2% increase in consolidated
same store sales on a 13-week to 13-week basis, and the inclusion of the 14^th
week of sales. The 1.2% consolidated same store sales increase consisted of a
2.2% decrease at Dick's Sporting Goods stores, a 1.3% increase at Golf Galaxy
and a 54.2% increase in the eCommerce business.  By chain, including eCommerce
business, Dick's Sporting Goods same store sales increased 1.2% and Golf
Galaxy same store sales increased 1.3%.

"In the fourth quarter, we experienced continued momentum in athletic footwear
and apparel along with strong sales in hunting that exceeded our expectations.
These increases were partially offset by lower-than-anticipated sales in
outerwear and cold weather accessories, as well as a significant decline in
the fitness category," said Edward W. Stack, Chairman and CEO. "As a result of
the unusually warm weather conditions, including during peak selling periods
in December, we significantly reduced our inventory levels of cold
weather merchandise to align with lower consumer demand and avoid carrying
over excess inventory after a second year in a row of warm weather. While this
was a prudent move that enabled us to effectively manage inventory and protect
our margins, it did limit our ability to capture sales in January when
temperatures dropped and snowfall increased."

Mr. Stack continued, "In fitness, the significant comp decline was a result of
lower large-equipment sales like treadmills and ellipticals. We understand the
issues that contributed to the sales decline and are taking action to correct
them."

New Stores

In the fourth quarter, the Company opened seven new Dick's Sporting Goods
stores, relocated one Dick's Sporting Goods store and repositioned one Golf
Galaxy store. These stores are listed in a table later in the release under
the heading "Store Count and Square Footage."

As of the end of the fourth quarter, the Company operated 518 Dick's Sporting
Goods stores in 44 states, with approximately 28.2 million square feet and 81
Golf Galaxy stores in 30 states, with approximately 1.4 million square feet.

Balance Sheet

The Company ended fiscal 2012 with $345 million in cash and cash equivalents
as compared to $734 million at the end of fiscal 2011, and did not have any
outstanding borrowings under its $500 million revolving credit facility. Over
the course of the past twelve months, the Company utilized capital to fund its
$200 million share repurchase program, pay quarterly dividends, purchase its
store support center, invest in JJB Sports, acquire intellectual property
rights to the Top-Flite and Field & Stream brands,  build a distribution
center and fund its $246 million special dividend.

Inventory per square foot was 0.7% higher at the end of the fourth quarter of
2012 as compared to the end of the fourth quarter of 2011.

Full Year 2012 Results (53 weeks compared to 52 weeks last year)

The Company reported consolidated non-GAAP net income for the 53 weeks ended
February 2, 2013 of $318.3 million, or $2.53 per diluted share, excluding an
impairment charge and including approximately $0.03 per diluted share for the
53^rd week.  For the 52 weeks ended January 28, 2012, the Company reported
consolidated non-GAAP net income of $253.9 million, or $2.02 per diluted
share. 

On a GAAP basis, the Company reported consolidated net income for the 53 weeks
ended February 2, 2013 of $290.7 million, or $2.31 per diluted share. For the
52 weeks ended January 28, 2012, the Company reported consolidated net income
of $263.9 million, or $2.10 per diluted share.  The GAAP to non-GAAP
reconciliation is included in a table later in the release under the heading
"Non-GAAP Net Income and Earnings Per Share Reconciliation."

Net sales for the 53 weeks ended February 2, 2013 increased 12.0% from last
year's 52-week period to $5.8 billion primarily due to a 4.3% increase in
consolidated same store sales on a 52-week to 52-week comparable basis and the
growth of the Company's store network.

"In 2012, we made several important investments for the future, including
adding locations, acquiring established brands, developing and testing retail
concepts, further building omni-channel capabilities, and creating new
marketing strategies," said Mr. Stack. "All of these investments have
strengthened our foundation and position us for continued growth. We're
optimistic about our outlook for the coming year and excited about our
long-term prospects for the future."

2013 Growth Investments

The Company will make meaningful investments for the long-term benefit of the
business and its shareholders. In 2013, these growth investments include:

  o Strengthening its omni-channel platform, including investments in advanced
    mobile capabilities, the piloting of pick-up in-store, and growth of the
    eCommerce team,
  o Remodeling existing stores,
  o Implementing new systems, and
  o Developing new concepts.

In total, the Company expects these investments to have a $0.12 impact on
earnings per diluted share in 2013. The Company's guidance takes these
investments into consideration.

Current 2013 Outlook

The Company's current outlook for 2013 is based on current expectations and
includes "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
as described later in this release.  Although the Company believes that the
expectations and other comments reflected in such forward-looking statements
are reasonable, it can give no assurance that such expectations or comments
will prove to be correct.

  o Full Year 2013 – (52 Week Year) Comparisons to Fiscal 2012 – (53 Week
    Year) 

       o Based on an estimated 126 million diluted shares outstanding, the
         Company currently anticipates reporting consolidated earnings per
         diluted share of approximately $2.84 to 2.86. For the 53 weeks ended
         February 2, 2013, the Company reported consolidated non-GAAP earnings
         per diluted share of $2.53, excluding an impairment charge and
         including approximately $0.03 per diluted share for the 53^rd week. 
         On a GAAP basis, the Company reported consolidated earnings per
         diluted share of $2.31 in 2012. 
       o Consolidated same store sales are currently expected to increase
         approximately 2 to 3% on a 52-week to 52-week comparative basis,
         compared to a 4.3% increase in fiscal 2012.
       o The Company expects to open approximately 40 new Dick's Sporting
         Goods stores, relocate one Dick's Sporting Goods store and complete
         four full and 75 partial remodels of Dick's Sporting Goods stores in
         2013. The Company also expects to open one new Golf Galaxy store and
         relocate one Golf Galaxy store in 2013, both of which will be in the
         new, larger format.
       o The Company expects to open approximately two new True Runner stores
         and approximately two new Field & Stream stores in 2013.

  o First Quarter 2013

       o Based on an estimated 126 million diluted shares outstanding,the
         Company currently anticipates reporting consolidated earnings per
         diluted share of approximately $0.47 to 0.49 in the first quarter of
         2013, compared to first quarter 2012 earnings per diluted share of
         $0.45.   
       o Consolidated same store sales adjusted for the shifted calendar due
         to the 53^rd week in 2012 are currently expected to be approximately
         negative 2% to negative 1% in the first quarter of 2013, or
         approximately flat to 1% not adjusted, as compared to an 8.4%
         increase in the first quarter of 2012. 
       o The Company expects to open approximately two Dick's Sporting Goods
         stores in the first quarter of 2013.

  o Capital Expenditures

       o In 2013, the Company anticipates capital expenditures to be
         approximately $299 million on a gross basis and approximately $258
         million on a net basis.

Dividend

As previously announced on February 19, 2013, the Company's Board of Directors
authorized and declared a quarterly dividend in the amount of $0.125 per share
on the Company's Common Stock and Class B Common Stock. The dividend is
payable in cash on March 29, 2013 to stockholders of record at the close of
business on March 8, 2013. 

Share Repurchase Program

The Company announced today that its Board of Directors authorized a share
repurchase program of up to $1 billion of the Company's common stock over the
next five years. The Company currently expects to finance the repurchases from
cash on hand and if necessary, availability under its credit facility. The
Company's guidance takes into consideration expected share repurchase activity
sufficient to at least offset the dilutive effect of the issuance of shares
expected from stock-based awards. The repurchases, which may be made in
privately-negotiated transactions or in the open market as permitted by
Securities Exchange Act Rule 10b-18, including pursuant to a Securities
Exchange Act Rule 10b5-1 repurchase plan, could begin immediately and may
occur from time-to-time in the future.  The Company may suspend or discontinue
this repurchase program at any time.

Conference Call Info

The Company will be hosting a conference call today at 10:00 a.m. eastern time
to discuss the fourth quarter and full year results.  Investors will have the
opportunity to listen to the earnings conference call over the internet
through the Company's website located at
http://www.dickssportinggoods.com/investors. To listen to the live call,
please go to the website at least fifteen minutes early to register and
download and install any necessary audio software. 

In addition to the webcast, the call can be accessed by dialing (866) 652-5200
(domestic callers) or (412) 317-6060 (international callers) and requesting
the "Dick's Sporting Goods Earnings Call."

For those who cannot listen to the live webcast, it will be archived on the
Company's website for 30 days. In addition, a dial-in replay of the call will
be available. To listen to the replay, investors should dial (877) 344-7529
(domestic callers) or (412) 317-0088 (international callers) and enter
confirmation code 10025203. The dial-in replay will be available for 30 days
following the live call.

Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties

Except for historical information contained herein, the statements in this
release or otherwise made by our management in connection with the subject
matter of this release are forward-looking statements (as such term is defined
in the Private Securities Litigation Reform Act of 1995) and involve risks and
uncertainties and are subject to change based on various important factors,
many of which may be beyond our control. Our future performance and financial
results may differ materially from those included in any such forward-looking
statements and such forward-looking statements should not be relied upon by
investors as a prediction of actual results. You can identify these statements
as those that may predict, forecast, indicate or imply future results,
performance or advancements and by forward-looking words such as "believe",
"anticipate", "expect", "estimate", "predict", "intend", "plan", "project",
"goal", "will", "will be", "will continue", "will result", "could", "may",
"might" or other words with similar meanings. Forward-looking statements
include statements regarding, among other things, our continued profitable
growth.

The following factors, among others, in some cases have affected and in the
future could affect our financial performance and actual results, and could
cause actual results for fiscal 2013 and beyond to differ materially from
those expressed or implied in any forward-looking statements included in this
release or otherwise made by our management: ongoing economic and financial
uncertainties may cause a decline in consumer spending; changes in the general
economic and business conditions and in the specialty retail or sporting goods
industry in particular; competition in the sporting goods industry; changes in
consumer demand; limitations on the availability of attractive store
locations; unauthorized disclosure of sensitive or confidential customer
information; risks relating to our private brand offerings; access adequate
capital; changing laws and regulations affecting our business including the
regulation of firearms and ammunition; factors affecting our vendors;
litigation risks; foreign trade issues and currency exchange rate
fluctuations; the loss of our key executives, especially Edward W. Stack, our
Chairman and Chief Executive Officer; protection of our intellectual property;
disruptions with our eCommerce services provider or of our information
systems; disruption at our distribution facilities; developments with sports
leagues, professional athletes or sports superstars; weather and seasonality
of our business; regional risks; risk associated with strategic investments or
acquisitions; labor needs; risks associated with being a controlled company;
our anti-takeover provisions; our current intention to issue quarterly cash
dividends; and our share repurchase activity, if any.

Known and unknown risks and uncertainties are more fully described in the
Company's Annual Report on Form 10-K for the year ended January 28, 2012 as
filed with the Securities and Exchange Commission ("SEC") on March 16, 2012
and in other reports filed with the SEC.  In addition, we operate in a highly
competitive and rapidly changing environment; therefore, new risk factors can
arise, and it is not possible for management to predict or assess the impact
of all such risk factors. Forward-looking statements included in this release
are made as of the date of this release. We do not assume any obligation and
do not intend to update any forward-looking statements, whether as a result of
new information, future developments or otherwise, except as may be required
by the securities laws.

About Dick's Sporting Goods, Inc.

Dick's Sporting Goods, Inc. is an authentic full-line sports and fitness
specialty omni-channel retailer offering a broad assortment of high quality,
competitively-priced brand name sporting goods equipment, apparel and footwear
in a specialty store environment. The Company also owns and operates Golf
Galaxy, LLC, a golf specialty retailer.

As of February 2, 2013, the Company operated 518 Dick's Sporting Goods stores
in 44 states, 81 Golf Galaxy stores in 30 states and eCommerce websites and
catalog operations for Dick's Sporting Goods and Golf Galaxy. Dick's Sporting
Goods, Inc. news releases are available at
http://www.dickssportinggoods.com/investors. The Company's website is not part
of this release.

Contact:

Timothy E. Kullman, EVP – Finance, Administration, and Chief Financial Officer
or
Anne-Marie Megela, Director, Investor Relations
Dick's Sporting Goods
investors@dcsg.com
(724) 273-3400

 

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
                         14 Weeks Ended               13 Weeks Ended
                         February 2,      % of        January 28,      % of
                         2013             Sales ^(1)  2012             Sales
Net sales                $ 1,805,302      100.00%     $ 1,611,556      100.00%
Cost of goods sold,
including
  occupancy and          1,216,650        67.39       1,098,785        68.18
distribution costs
GROSS PROFIT             588,652          32.61       512,771          31.82
Selling, general and
administrative           375,781          20.82       326,570          20.26
  expenses
Pre-opening expenses     1,765            0.10        1,876            0.12
INCOME FROM OPERATIONS   211,106          11.69       184,325          11.44
Interest expense         725              0.04        3,365            0.21
Other income             (1,632)          (0.09)      (951)            (0.06)
INCOME BEFORE INCOME     212,013          11.74       181,911          11.29
TAXES
Provision for income     82,264           4.56        70,835           4.40
taxes
NET INCOME               $    129,749     7.19%       $    111,076     6.89%
EARNINGS PER COMMON
SHARE:
Basic                    $          1.06              $          0.92
Diluted                  $          1.03              $          0.88
WEIGHTED AVERAGE COMMON
SHARES
OUTSTANDING:
Basic                    122,875                      120,928
Diluted                  126,409                      126,316
Cash dividends declared  $        2.125               $         0.50
per share
^(1)Column does not add due to rounding

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
                                53 Weeks Ended           52 Weeks Ended
                                February 2,   % of       January 28,   % of
                                2013          Sales^(1)  2012          Sales
Net sales                       $ 5,836,119   100.00%    $ 5,211,802   100.00%
Cost of goods sold, including
  occupancy and distribution    3,998,956     68.52      3,616,921     69.40
costs
GROSS PROFIT                    1,837,163     31.48      1,594,881     30.60
Selling, general and
administrative                  1,297,413     22.23      1,148,268     22.03
  expenses
Pre-opening expenses            16,076        0.28       14,593        0.28
INCOME FROM OPERATIONS          523,674       8.97       432,020       8.29
Impairment of
available-for-sale              32,370        0.55       -             -
  investments
Gain on sale of investment      -             -          (13,900)      (0.27)
Interest expense                6,034         0.10       13,868        0.27
Other (income) expense          (4,555)       (0.08)     26            0.00
INCOME BEFORE INCOME TAXES      489,825       8.39       432,026       8.29
Provision for income taxes      199,116       3.41       168,120       3.23
NET INCOME                      $    290,709  4.98%      $    263,906  5.06%
EARNINGS PER COMMON SHARE:
Basic                           $                        $        
                                 2.39                     2.19
Diluted                         $                        $        
                                 2.31                     2.10
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic                           121,629                  120,232
Diluted                         125,995                  125,768
Cash dividends declared per     $                        $        
share                            2.50                     0.50
^(1)Column does not add due to rounding

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(Dollars in thousands)
                                              February 2,      January 28,
                                              2013             2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                     $      345,214   $      734,402
Accounts receivable, net                      34,625           38,338
Income taxes receivable                       15,737           4,113
Inventories, net                              1,096,186        1,014,997
Prepaid expenses and other current assets     73,838           64,213
Deferred income taxes                         30,289           12,330
Total current assets                          1,595,889        1,868,393
Property and equipment, net                   840,135          775,896
Construction in progress - leased facilities  -                2,138
Intangible assets, net                        98,903           50,490
Goodwill                                      200,594          200,594
Other assets:
Deferred income taxes                         4,382            12,566
Other                                         147,904          86,375
            Total other assets                152,286          98,941
TOTAL ASSETS                                  $    2,887,807   $    2,996,452
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable                              $      507,247   $      510,398
Accrued expenses                              269,900          264,073
Deferred revenue and other liabilities        146,362          128,765
Income taxes payable                          68,746           29,484
Current portion of other long-term debt and
leasing obligations                           8,513            7,426
Total current liabilities                     1,000,768        940,146
LONG-TERM LIABILITIES:
Other long-term debt and leasing obligations  7,762            151,596
Non-cash obligations for construction 
   in progress - leased facilities            -                2,138
Deferred income taxes                         7,413            -
Deferred revenue and other liabilities        284,540          269,827
Total long-term liabilities                   299,715          423,561
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock                                  981              964
Class B common stock                          249              250
Additional paid-in capital                    874,236          699,766
Retained earnings                             911,704          932,871
Accumulated other comprehensive income        112              118
Treasury stock                                (199,958)        (1,224)
Total stockholders' equity                    1,587,324        1,632,745
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $    2,887,807   $    2,996,452

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
(Dollars in thousands)
                                            Fiscal Year Ended
                                            February 2,       January 28,
                                            2013              2012
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                $  290,709        $  263,906
  Adjustments to reconcile net income   
   to net cash provided by operating
activities:
Depreciation and amortization               125,096           116,581
Impairment of available-for-sale            32,370            -
investments
Deferred income taxes                       (2,362)           25,152
Stock-based compensation                    32,181            23,919
Excess tax benefit from exercise of stock   (64,767)          (20,768)
options
Tax benefit from exercise of stock options  4,864             664
Other non-cash items                        372               1,382
Gain on sale of investment                  -                 (13,900)
Changes in assets and liabilities:
Accounts receivable                         (4,328)           (3,350)
Inventories                                 (81,189)          (118,102)
Prepaid expenses and other assets           (8,693)           (9,174)
Accounts payable                            (13,588)          73,950
Accrued expenses                            (5,576)           (21,410)
Income taxes payable / receivable           92,352            54,923
Deferred construction allowances            28,691            26,678
Deferred revenue and other liabilities      12,152            9,970
Net cash provided by operating activities   438,284           410,421
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures                        (219,026)         (201,807)
Purchase of JJB Sports convertible notes    (31,986)          -
and equity securities
Proceeds from sale of investment            -                 14,140
Proceeds from sale-leaseback transactions   3,406             21,126
Deposits and purchases of other assets      (76,748)          (33,075)
Net cash used in investing activities       (324,354)         (199,616)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on other long-term debt and        (145,322)         (995)
leasing obligations
Construction allowance receipts             -                 -
Proceeds from exercise of stock options     78,285            33,098
Excess tax benefit from exercise of stock   64,767            20,768
options
Minimum tax withholding requirements        (5,518)           (3,575)
Cash paid for treasury stock                (198,774)         (1,224)
Cash dividends paid to stockholders         (306,972)         (60,460)
Increase (decrease) in bank overdraft       10,422            (10,063)
Net cash used in financing activities       (503,112)         (22,451)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH
   EQUIVALENTS                              (6)               (4)
NET (DECREASE) INCREASE IN CASH AND CASH    (389,188)         188,350
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF     734,402           546,052
PERIOD
CASH AND CASH EQUIVALENTS, END OF PERIOD    $  345,214        $  734,402
Supplemental disclosure of cash flow
information:
Construction in progress - leased           $              -  $      2,138
facilities
Accrued property and equipment              $    23,772       $      6,199
Accrued deposits and purchases of other     $    15,000       $              -
assets
Cash paid for interest                      $      5,352      $    12,488
Cash paid for income taxes                  $  117,387        $    84,749

Store Count and Square Footage

The stores that opened during the fourth quarter of 2012 are as follows:

DICK'S
Store                         Market
Monroe, LA                    Monroe, LA
North Oklahoma City, OK       Oklahoma City, OK
Moore, OK                     Oklahoma City, OK
Oklahoma City (Westgate), OK  Oklahoma City, OK
Midwest City, OK              Oklahoma City, OK
Jefferson City, MO            Jefferson City, MO
Spokane, WA                   Spokane, WA

The following represents a reconciliation of beginning and ending stores and
square footage for the periods indicated ^(1):

                    Fiscal 2012                        Fiscal 2011
                    Dick's Sporting  Golf              Dick's    Golf
                    Goods            Galaxy    Total   Sporting  Galaxy  Total
                                                       Goods
Beginning stores    480              81       561      444       81      525
 Q1 New             6                -        6        3         -       3
 Q2 New             4                -        4        8         -       8
 Q3 New             21               -        21       19        -       19
 Q4 New             7                -        7        6         -       6
Ending stores       518              81       599      480       81      561
Remodeled stores    -                -        -        14        -       14
Relocated stores    5                1        6        -         1       1
Square Footage:
(in millions)
                    Dick's Sporting  Golf     Total
                    Goods            Galaxy
 Q1 2011            24.7             1.3      26.0
 Q2 2011            25.1             1.3      26.4
 Q3 2011            26.0             1.3      27.3
 Q4 2011            26.3             1.3      27.6
 Q1 2012            26.5             1.3      27.8
 Q2 2012            26.7             1.3      28.0
 Q3 2012            27.9             1.3      29.2
 Q4 2012            28.2             1.4      29.6
^(1)Store Count and Square Footage amounts do not include our True
Runner Stores

Non-GAAP Financial Measures

In addition to reporting the Company's financial results in accordance with
generally accepted accounting principles ("GAAP"), the Company provides
information regarding net income and earnings per diluted share adjusted for
certain non-recurring, infrequent or unusual items; earnings before interest,
taxes and depreciation, adjusted to exclude certain significant gains and
losses ("Adjusted EBITDA"); a reconciliation from the Company's gross capital
expenditures, net of tenant allowances; calculations of consolidated and
Dick's Sporting Goods new store productivity; and same store sales results
adjusted to conform to the Company's future presentation.  These measures are
considered non-GAAP and are not preferable to GAAP financial information;
however, the Company believes this information provides additional measures of
performance that the Company's management, analysts and investors can use to
compare core, operating results between reporting periods. These non-GAAP
measures are provided below and on the Company's website at
http://www.dickssportinggoods.com/investors.

Non-GAAP Net Income and Earnings per Share Reconciliations
(in thousands, except per share data):

                            Fiscal 2012
                            53 Weeks Ended February 2, 2013
                            As               Impairment of       Non-GAAP
                            Reported         Investments         Total
Net sales                   $ 5,836,119      $                   $  5,836,119
                                              -
Cost of goods sold,
including occupancy and     3,998,956        -                   3,998,956
  distribution costs
GROSS PROFIT                1,837,163        -                   1,837,163
Selling, general and        1,297,413        -                   1,297,413
administrative expenses
Pre-opening expenses        16,076           -                   16,076
INCOME FROM OPERATIONS      523,674          -                   523,674
Impairment of
available-for-sale          32,370           (32,370)            -
investments
Interest expense            6,034            -                   6,034
Other income                (4,555)          -                   (4,555)
INCOME BEFORE INCOME TAXES  489,825          32,370              522,195
Provision for income taxes  199,116          4,734               203,850
NET INCOME                  $   290,709      $         27,636    $    318,345
EARNINGS PER COMMON SHARE:
Basic                       $                                    $        
                            2.39                                  2.62
Diluted                     $                                    $        
                            2.31                                  2.53
WEIGHTED AVERAGE COMMON
SHARES
OUTSTANDING:
Basic                       121,629                              121,629
Diluted                     125,995                              125,995
During the second quarter of 2012, the Company fully impaired its investment
in JJB Sports and recorded a pre-tax charge of $32.4 million.  The Company
recorded a deferred tax asset valuation allowance of approximately $7.9
million for a portion of the $32.4 million net capital loss carryforward that
it expects not to realize as a result of the impairment of its investment in
JJB Sports.

 

                    Fiscal 2011
                    52 Weeks Ended January 28, 2012
                    As              Gain on Sale       Litigation    Non-GAAP
                    Reported        of Investment      Settlement    Total
Net sales           $  5,211,802    $                  $             $
                                     -                      -        5,211,802
Cost of goods sold,
including
  occupancy and
distribution        3,616,921       -                  -             3,616,921
  costs
GROSS PROFIT        1,594,881       -                  -             1,594,881
Selling, general
and                 1,148,268       -                  2,148         1,150,416
  administrative
expenses
Pre-opening         14,593          -                  -             14,593
expenses
INCOME FROM         432,020         -                  (2,148)       429,872
OPERATIONS
Gain on sale of     (13,900)        13,900             -             -
investment
Interest expense    13,868          -                  -             13,868
Other expense       26              -                  -             26
INCOME BEFORE       432,026         (13,900)           (2,148)       415,978
INCOME TAXES
Provision for       168,120         (5,162)            (859)         162,099
income taxes
                    -
NET INCOME          $    263,906    $                  $             $  
                                    (8,738)            (1,289)       253,879
EARNINGS PER COMMON
SHARE:
Basic               $                                                $        
                     2.19                                             2.11
Diluted             $                                                $        
                     2.10                                             2.02
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
Basic               120,232                                          120,232
Diluted             125,768                                          125,768
During the second quarter of 2011, the Company recorded a pre-tax gain of
$13.9 million relating to the sale of available-for-sale securities.  During
the third quarter of 2011, the Company funded claims submitted by class
members of wage and hour class action lawsuits as part of a court approved
settlement.  The settlement funding was $2.1 million lower than the previous
estimate of $10.8 million, recognized in the fourth quarter of 2010.  The
provision for income taxes for the aforementioned adjustments was calculated
at 40%, which approximates the Company's effective tax rate.  

Adjusted EBITDA

Adjusted EBITDA should not be considered as an alternative to net income or
any other generally accepted accounting principles measure of performance or
liquidity.  Adjusted EBITDA, as the Company has calculated it, may not be
comparable to similarly titled measures reported by other companies.  Adjusted
EBITDA is a key metric used by the Company that provides a measurement of
profitability that eliminates the effect of changes resulting from financing
decisions, tax regulations and capital investments.

                                            14 Weeks Ended    13 Weeks Ended
                                            February 2,       January 28,
                                            2013              2012
                                            (dollars in thousands)
Net income                                  $                 $        
                                             129,749          111,076
Provision for income taxes                  82,264            70,835
Interest expense                            725               3,365
Depreciation and amortization               36,469            32,965
EBITDA                                      $                 $        
                                             249,207          218,241
% increase in EBITDA                        14%
                                            53 Weeks Ended    52 Weeks Ended
                                            February 2,       January 28,
                                            2013              2012
                                            (dollars in thousands)
Net income                                  $                 $        
                                             290,709          263,906
Provision for income taxes                  199,116           168,120
Interest expense                            6,034             13,868
Depreciation and amortization               125,096           116,581
EBITDA                                      $                 $        
                                             620,955          562,475
Add:   Impairment of available-for-sale     32,370            -
investments
Less:  Gain on sale of investment           -                 (13,900)
Less:  Litigation settlement                -                 (2,148)
Adjusted EBITDA, as defined                 $                 $        
                                             653,325          546,427
% increase in Adjusted EBITDA               20%

Reconciliation of Gross Capital Expenditures to Net Capital Expenditures

The following table represents a reconciliation of the Company's gross capital
expenditures to its capital expenditures, net of tenant allowances.

                                          Fiscal Year Ended
                                          February 2,   January 28,
                                          2013          2012
                                          (dollars in thousands)
Gross capital expenditures                $  (219,026)  $   (201,807)
Proceeds from sale-leaseback transactions 3,406         21,126
Deferred construction allowances          28,691        26,678
Construction allowance receipts           -             -
 Net capital expenditures                 $  (186,929)  $   (154,003)

New Store Productivity Calculation

The following calculations represent: (1) the new store productivity
calculation on a consolidated basis; and (2) the new store productivity
calculation for Dick's Sporting Goods only, in each case for the periods
shown.  Golf Galaxy stores and the Company's eCommerce business are excluded
from the Dick's Sporting Goods only calculation.  New store productivity
compares the sales increase for all stores not included in the same store
sales calculation with the increase in store square footage.

                          Consolidated              Dick's Sporting Goods Only
                          Quarter Ended             Quarter Ended
                          February 2,  January 28,  February 2,    January 28,
                          2013^(2)     2012         2013^(2)       2012
Sales % increase for the  7.4%                      4.7%
period
Same store sales %
increase                  1.2%                      -2.2%
  (decrease) for the
period
New store sales %         6.2%                      6.8%
increase (A)^(1)
Store square footage
(000's):
Beginning of period       29,202       27,315       27,853         25,975
End of period             29,588       27,596       28,202         26,256
Average for the period    29,395       27,456       28,028         26,116
Average square footage %
  increase for the period 7.1%                      7.3%
(B)
New store productivity    87.6%                     93.5%
(A)/(B)^(1)
^(1)Amounts do not recalculate due to rounding.
^(2)Calculated on a 13-week to 13-week basis.

Fiscal 2012 Same Store Sales Reconciliation to Fiscal 2013 Presentation

The following table presents the Company's same store sales results for fiscal
2012, adjusted to conform to the Company's future presentation.  Beginning in
fiscal 2013, the Company will report same store sales for Dick's Sporting
Goods stores with its eCommerce sales.  The Company will also report total
eCommerce penetration, including both Dick's Sporting Goods and Golf Galaxy
eCommerce sales.  Future disclosure of fiscal 2012 same store sales will
reflect the following presentation.

                      Quarter Ended                                  Year Ended
                      April 28,  July 28,  October 27,  February 2,  February
                      2012       2012      2012         2013^(1)     2,
                                                                     2013^(2)
Dick's Sporting Goods 8.0%       3.7%      5.3%         1.2%         4.2%
Golf Galaxy           12.6%      4.4%      2.3%         1.3%         5.5%
Consolidated          8.4%       3.8%      5.1%         1.2%         4.3%
eCommerce penetration 3.7%       3.9%      4.4%         8.6%         5.4%
  to total sales
^(1)Same store sales calculated on a 13-week to 13-week basis.
^(2)Same store sales calculated on a 52-week to 52-week basis.

 

SOURCE Dick's Sporting Goods, Inc.

Website: http://www.dickssportinggoods.com
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