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 theunusually warm weather conditions, including during peakselling periods in December,we significantly reduced our inventory levels ofcold weathermerchandise 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: oStrengthening its omni-channel platform, including investments in advanced mobile capabilities, the piloting of pick-up in-store, and growth of the eCommerce team, oRemodeling existing stores, oImplementing new systems, and oDeveloping 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. oFull Year 2013 – (52 Week Year) Comparisons to Fiscal 2012 – (53 Week Year) oBased 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. oConsolidated 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. oThe 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. oThe Company expects to open approximately two new True Runner stores and approximately two new Field & Stream stores in 2013. oFirst Quarter 2013 oBased 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. oConsolidated 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. oThe Company expects to open approximately two Dick's Sporting Goods stores in the first quarter of 2013. oCapital Expenditures oIn 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 email@example.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 ofInvestment 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 February2, January28, February2, January28, 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 % increasefor 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 YearEnded April28, July28, October27, February2, 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% eCommercepenetration 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
Dick's Sporting Goods Reports Fourth Quarter and Full Year 2012 Results
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