Big 5 Sporting Goods Corporation Announces Fiscal 2013 First Quarter Results *Reports Same Store Sales Increase of 10.5% *Achieves First Quarter Earnings per Diluted Share of $0.34 *Declares Quarterly Cash Dividend of $0.10 per Diluted Share EL SEGUNDO, Calif., April 30, 2013 (GLOBE NEWSWIRE) -- Big 5 Sporting Goods Corporation (Nasdaq:BGFV), a leading sporting goods retailer, today reported financial results for the fiscal 2013 first quarter ended March 31, 2013. For the fiscal 2013 first quarter, net sales increased to $246.3 million from net sales of $218.5 million for the first quarter of fiscal 2012. Same store sales increased 10.5% for the first quarter of fiscal 2013. As anticipated, first quarter sales were negatively affected by the calendar shift of the Easter holiday, during which the Company's stores are closed, out of the second quarter and into the first quarter this year. Gross profit for the fiscal 2013 first quarter increased to $80.5 million from $67.4 million in the first quarter of the prior year.The Company's gross profit margin was 32.7% in the fiscal 2013 first quarter versus 30.9% in the first quarter of the prior year. The improvement in gross profit margin reflects an increase in merchandise margins of 113 basis points and lower store occupancy and distribution costs as a percentage of net sales. Selling and administrative expense as a percentage of net sales improved to 27.6% in the fiscal 2013 first quarter from 30.5% in the first quarter of the prior year.Overall selling and administrative expense increased $1.3 million for the quarter over the prior year due primarily to higher employee labor and benefit-related costs, higher credit card fees and higher operating costs to support an increase in store count, partially offset by lower advertising expense. Net income for the first quarter of fiscal 2013 was $7.5 million, or $0.34 per diluted share, compared to net income of $156,000, or $0.01 per diluted share, for the first quarter of fiscal 2012. "We are pleased to deliver a quarter of very strong earnings growth, driven by a double-digit increase in same store sales, improvements in customer traffic and average sale and expansion of merchandise and operating margins," said Steven G. Miller, the Company's Chairman, President and Chief Executive Officer."Our operating results significantly exceeded the upper end of our guidance range issued in late February as a result of a stronger than anticipated performance during our March period.We believe these results for the quarter reflect the ongoing enhancements to our merchandise and marketing programs, the continued benefit from the national increase in demand for firearms and ammunition products and more favorable weather conditions in a majority of our markets versus the prior year. Our positive sales trends have continued into the second quarter and we feel well positioned to deliver strong results as we move through the spring and into the summer season." Quarterly Cash Dividend The Company's Board of Directors has declared a quarterly cash dividend of $0.10 per diluted share, which will be paid on June 14, 2013 to stockholders of record as of May 31, 2013. Guidance For the fiscal 2013 second quarter, the Company expects same store sales in the positive mid-single-digit range and earnings per diluted share in the range of $0.20 to $0.26.This guidance reflects the benefit from the calendar shift of the Easter holiday, during which the Company's stores are closed, out of the second quarter and into the first quarter of fiscal 2013, as well as increased expenses associated with the development of our e-commerce platform.For comparative purposes, the Company's earnings per diluted share for the second quarter of fiscal 2012 were $0.12, including $0.03 per diluted share of store closing and non-cash impairment charges. Store Openings During the first quarter of fiscal 2013, the Company opened one new store and closed one store as part of a relocation that began in fiscal 2012, ending the quarter with 414 stores in operation.During the fiscal 2013 second quarter, the Company anticipates opening two new stores. For the fiscal 2013 full year, the Company currently anticipates opening approximately 15 to 20 net new stores. Conference Call Information The Company will host a conference call and audio webcast today, April 30, 2013, at 2:00 p.m. Pacific (5:00 p.m. EDT) to discuss financial results for the first quarter of fiscal 2013.To access the conference call, participants in North America should dial (888) 505-4375, and international participants should dial (719) 457-2697.Participants are encouraged to dial in to the conference call ten minutes prior to the scheduled start time.The call will also be broadcast live over the Internet and accessible through the Investor Relations section of the Company's website at www.big5sportinggoods.com.Visitors to the website should select the "Investor Relations" link to access the webcast.The webcast will be archived and accessible on the same website for 30 days following the call.A telephone replay will be available through May 7, 2013 by calling (877) 870-5176 to access the playback; passcode is 7576733. About Big 5 Sporting Goods Corporation Big 5 is a leading sporting goods retailer in the western United States, operating 414 stores in 12 states under the "Big 5 Sporting Goods" name as of the end of the fiscal quarter ended March 31, 2013. Big 5 provides a full-line product offering in a traditional sporting goods store format that averages 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, winter and summer recreation and roller sports. 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) firearms, ammunition and certain related accessories, seasonal fluctuations, weather conditions, changes in cost of goods, operating expense fluctuations, litigation risks, disruption in product flow, changes in interest rates, credit availability, higher costs 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 Securities and Exchange Commission, including its Annual Report on Form 10-K for fiscal 2012. Big 5 conducts its business in a highly competitive and rapidly changing environment. Accordingly, new risk factors may arise. It is not possible for management to predict all such risk factors, nor to assess the impact of all such risk factors on Big 5's business or the extent to which any individual risk factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Big 5 undertakes no obligation to revise or update any forward-looking statement that may be made from time to time by it or on its behalf. BIG 5 SPORTING GOODS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share amounts) March 31, December 30, 2013 2012 ASSETS Current assets: Cash and cash equivalents $5,357 $7,635 Accounts receivable, net of allowances of $113 10,554 15,297 and $99, respectively Merchandise inventories, net 271,871 270,350 Prepaid expenses 8,736 8,784 Deferred income taxes 10,114 9,905 Total current assets 306,632 311,971 Property and equipment, net 70,048 72,089 Deferred income taxes 13,948 14,795 Other assets, net of accumulated amortization of 3,321 3,372 $700 and $637, respectively Goodwill 4,433 4,433 Total assets $398,382 $406,660 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $104,634 $92,688 Accrued expenses 57,665 67,553 Current portion of capital lease obligations 1,831 1,720 Total current liabilities 164,130 161,961 Deferred rent, less current portion 20,736 21,386 Capital lease obligations, less current portion 2,556 2,855 Long-term debt 31,947 47,461 Other long-term liabilities 8,609 8,577 Total liabilities 227,978 242,240 Commitments and contingencies Stockholders' equity: Common stock, $0.01 par value, authorized 50,000,000 shares; issued 23,934,367 and 240 238 23,783,084 shares, respectively; outstanding 21,892,531 and 21,741,248 shares, respectively Additional paid-in capital 103,305 102,658 Retained earnings 92,799 87,464 Less:Treasury stock, at cost; 2,041,836 shares (25,940) (25,940) Total stockholders' equity 170,404 164,420 Total liabilities and stockholders' equity $398,382 $406,660 BIG 5 SPORTING GOODS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) 13 Weeks Ended March 31, April 1, 2013 2012 Net sales $246,266 $218,496 Cost of sales 165,791 151,068 Gross profit 80,475 67,428 Selling and administrative expense 67,928 66,585 Operating income 12,547 843 Interest expense 453 600 Income before income taxes 12,094 243 Income taxes 4,580 87 Net income $7,514 $156 Earnings per share: Basic $0.35 $0.01 Diluted $0.34 $0.01 Dividends per share $0.10 $0.075 Weighted-average shares of common stock outstanding: Basic 21,453 21,489 Diluted 21,822 21,654 CONTACT: Big 5 Sporting Goods Corporation Barry Emerson Sr. Vice President and Chief Financial Officer (310) 536-0611 ICR, Inc. John Mills Senior Managing Director (310) 954-1105
Big 5 Sporting Goods Corporation Announces Fiscal 2013 First Quarter Results
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