Big 5 Sporting Goods Corporation Announces Fiscal 2013 Second Quarter Results

Big 5 Sporting Goods Corporation Announces Fiscal 2013 Second Quarter Results

  *Reports Same Store Sales Increase of 4.4%
  *Achieves Second Quarter Earnings Per Diluted Share of $0.28
  *Declares Quarterly Cash Dividend of $0.10 Per Share

EL SEGUNDO, Calif., July 30, 2013 (GLOBE NEWSWIRE) -- Big 5 Sporting Goods
Corporation (Nasdaq:BGFV), a leading sporting goods retailer, today reported
financial results for the fiscal 2013 second quarter ended June 30, 2013.

For the fiscal 2013 second quarter, net sales increased to $239.9 million from
net sales of $226.6 million for the second quarter of fiscal 2012. Same store
sales increased 4.4% for the second quarter of fiscal 2013 from the comparable
period in the prior year. As anticipated, second quarter sales benefited 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 this
year.This benefit was partially offset by the impact of the calendar shift of
the Fourth of July holiday further into the third quarter this year, which
resulted in certain holiday-related sales moving from the second quarter to
the third quarter.

Gross profit for the fiscal 2013 second quarter increased to $79.7 million
from $73.1 million in the second quarter of the prior year.The Company's
gross profit margin was 33.2% in the fiscal 2013 second quarter versus 32.2%
in the second quarter of the prior year. The improvement in gross profit
margin reflects an increase in merchandise margins of 34 basis points, along
with lower distribution and store occupancy costs as a percentage of net
sales.

Selling and administrative expense increased $0.6 million for the fiscal 2013
second quarter over the prior year, but improved as a percentage of net sales
to 28.8% from 30.3% in the prior year.

Net income for the second quarter of fiscal 2013 improved to $6.1 million, or
$0.28 per diluted share, from net income of $2.6 million, or $0.12 per diluted
share, including $0.03 per diluted share of store closing and non-cash
impairment charges, for the second quarter of fiscal 2012.

For the 26-week period ended June 30, 2013, net sales increased to $486.2
million from net sales of $445.1 million in the comparable period last
year.Same store sales increased 7.4% in the first 26 weeks of fiscal 2013
versus the comparable period last year. Net income improved to $13.6 million,
or $0.62 per diluted share, for the first 26 weeks of fiscal 2013, from net
income of $2.7 million, or $0.13 per diluted share, including $0.03 of store
closing and impairment charges, for the first half of last year.

"We are pleased with our second quarter financial results as we continued to
see the underlying performance of our business strengthen," said Steven G.
Miller, the Company's Chairman, President and Chief Executive Officer. "We
experienced a slight improvement in customer traffic and a mid-single-digit
increase in average sale, and our same store sales improved for each of our
major product categories of apparel, footwear and hardgoods. We improved
merchandise margins for the quarter and also maintained our cost discipline,
which allowed us to continue to leverage expenses, expand operating margins
and drive a strong earnings performance. We also reduced per-store inventory
levels and used our strong cash flow to invest in our store base, pay our
dividend and meaningfully lower our debt versus the prior year."

Mr. Miller continued, "We are off to a solid start in the third quarter and
remain excited about our ongoing efforts to evolve both our product assortment
and marketing strategies to broaden our appeal to today's consumer."

Quarterly Cash Dividend

The Company's Board of Directors has declared a quarterly cash dividend of
$0.10 per share, which will be paid on September 13, 2013 to stockholders of
record as of August 30, 2013.

Guidance

For the fiscal 2013 third quarter, the Company expects same store sales in the
positive low single-digit range and earnings per diluted share in the range of
$0.40 to $0.45.This guidance reflects anticipated expenses associated with
the development of the Company's e-commerce platform of approximately $0.02
per diluted share.For purposes of comparison to the prior year, the Company's
same store sales increased 5.2% and earnings per diluted share were $0.38,
including a store closing charge of $0.01 per diluted share, for the third
quarter of fiscal 2012.

Store Openings

During the second quarter of fiscal 2013, the Company opened two new stores,
one of which is a relocation of an existing store, ending the quarter with 416
stores in operation.During the fiscal 2013 third quarter, the Company
anticipates opening four new stores and closing one store as part of a
relocation. For the fiscal 2013 full year, the Company currently anticipates
opening approximately 15 net new stores.

Conference Call Information

The Company will host a conference call and audio webcast today, July 30,
2013, at 2:00 p.m. Pacific (5:00 p.m. EDT) to discuss financial results for
the second quarter of fiscal 2013.To access the conference call, participants
in North America should dial (888) 438-5525, and international participants
should dial (719) 457-1512.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 August 6, 2013 by calling (877) 870-5176 to
access the playback; passcode is 5798050.

About Big 5 Sporting Goods Corporation

Big 5 is a leading sporting goods retailer in the western United States,
operating 416 stores in 12 states under the "Big 5 Sporting Goods" name as of
the end of the fiscal quarter ended June 30, 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, higher
than expected costs related to the development of Big 5's new e-commerce
platform, 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 and Quarterly Report on Form 10-Q
for the first quarter of fiscal 2013. 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)
                                                                
                                                      June 30,   December 30,
                                                       2013       2012
ASSETS                                                           
                                                                
Current assets:                                                  
Cash and cash equivalents                              $5,903   $7,635
Accounts receivable, net of allowances of $145 and     14,305     15,297
$99, respectively
Merchandise inventories, net                           293,582    270,350
Prepaid expenses                                       10,572     8,784
Deferred income taxes                                  10,481    9,905
Total current assets                                   334,843    311,971
                                                                
Property and equipment, net                            69,664     72,089
Deferred income taxes                                  14,164     14,795
Other assets, net of accumulated amortization of $764  3,252      3,372
and $637, respectively
Goodwill                                               4,433      4,433
Total assets                                           $426,356 $406,660
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
                                                                
Current liabilities:                                             
Accounts payable                                       $113,309 $92,688
Accrued expenses                                       56,097     67,553
Current portion of capital lease obligations           1,796      1,720
Total current liabilities                              171,202    161,961
                                                                
Deferred rent, less current portion                    20,326     21,386
Capital lease obligations, less current portion        2,265      2,855
Long-term debt                                         44,873     47,461
Other long-term liabilities                            9,182     8,577
Total liabilities                                      247,848    242,240
                                                                
Commitments and contingencies                                    
                                                                
Stockholders' equity:                                            
Common stock, $0.01 par value, authorized 50,000,000
shares; issued 24,243,112 and 23,783,084 shares,       243        238
respectively; outstanding 22,201,276 and 21,741,248
shares, respectively
Additional paid-in capital                             107,519    102,658
Retained earnings                                      96,686     87,464
Less:Treasury stock, at cost; 2,041,836 shares        (25,940)   (25,940)
Total stockholders' equity                             178,508    164,420
Total liabilities and stockholders' equity             $426,356 $406,660



BIG 5 SPORTING GOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
                                                              
                         13 Weeks Ended             26 Weeks Ended
                         June 30,      July 1,      June 30,     July 1,
                          2013          2012         2013         2012
                                                              
                                                              
Net sales                 $239,899    $226,612   $486,165   $445,108
                                                              
Cost of sales             160,226      153,536     326,017     304,604
                                                              
Gross profit              79,673       73,076      160,148     140,504
                                                              
Selling and
administrative expense    69,180       68,591      137,108     135,176
^(1) (2)
                                                              
Operating income          10,493       4,485       23,040      5,328
                                                              
Interest expense          418          576         871         1,176
                                                              
Income before income      10,075        3,909        22,169       4,152
taxes
                                                              
Income taxes              3,971        1,351       8,551       1,438
                                                              
Net income ^(1) (2)       $6,104      $2,558     $13,618    $2,714
                                                              
Earnings per share:                                            
Basic                     $0.28       $0.12      $0.63      $0.13
Diluted ^(1) (2)          $0.28       $0.12      $0.62      $0.13
                                                              
Dividends per share       $0.10       $0.075     $0.20      $0.15
                                                              
Weighted-average shares
of common stock                                                
outstanding:
Basic                     21,714        21,424       21,583       21,457
Diluted                   22,005        21,539       21,936       21,610
                                                              
(1) In the second quarter of fiscal 2012, the Company recorded a pre-tax
charge of $0.7 million related to store closing costs. This charge reduced net
income by $0.5 million, or $0.02 per diluted share.
                                                              
(2) In the second quarter of fiscal 2012, the Company recorded a pre-tax
non-cash impairment charge of $0.2 million related to certain underperforming
stores. This charge reduced net income by $0.1 million, or $0.01 per diluted
share.

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
 
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