Big 5 Sporting Goods Corporation Announces Fiscal 2013 Third Quarter Results

Big 5 Sporting Goods Corporation Announces Fiscal 2013 Third Quarter Results

  *Reports Same Store Sales Increase of 1.4%
  *Achieves Third Quarter Earnings per Diluted Share of $0.41 (Including a
    Net Charge of $0.04 per Diluted Share for Legal Matters)
  *Declares Quarterly Cash Dividend of $0.10 per Share

EL SEGUNDO, Calif., Oct. 29, 2013 (GLOBE NEWSWIRE) -- Big 5 Sporting Goods
Corporation (Nasdaq:BGFV), a leading sporting goods retailer, today reported
financial results for the fiscal 2013 third quarter ended September 29, 2013.

For the fiscal 2013 third quarter, net sales increased to $259.1 million from
net sales of $251.8 million for the third quarter of fiscal 2012. Same store
sales increased 1.4% for the third quarter of fiscal 2013 from the comparable
period in the prior year. As anticipated, third quarter sales comparisons to
the prior year reflect a small benefit from 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 third quarter increased to $87.8 million from
$83.9 million in the third quarter of the prior year. The Company's gross
profit margin improved to 33.9% in the fiscal 2013 third quarter from 33.3% in
the third quarter of the prior year. The improvement in gross profit margin
primarily reflects lower distribution costs as a percentage of net sales along
with an increase in merchandise margins of 12 basis points.

Selling and administrative expense increased $2.0 million for the fiscal 2013
third quarter over the prior year, but was unchanged as a percentage of net
sales at 27.9%. The increase in overall selling and administrative expense was
primarily due to a pre-tax charge for legal settlements of $1.3 million, of
which $1.0 million was classified as expense and $0.3 million was classified
as a reduction in net sales, and expenses of approximately $0.6 million
associated with the development of the Company's new e-commerce platform.

Net income for the third quarter of fiscal 2013 improved to $9.1 million, or
$0.41 per diluted share, including $0.04 per diluted share for a charge for
legal settlements, from net income of $8.2 million, or $0.38 per diluted
share, including $0.01 per diluted share for a store closing charge, for the
third quarter of fiscal 2012.

For the 39-week period ended September 29, 2013, net sales increased to $745.3
million from net sales of $696.9 million in the comparable period last year.
Same store sales increased 5.3% in the first 39 weeks of fiscal 2013 versus
the comparable period last year. Net income improved to $22.8 million, or
$1.03 per diluted share, including $0.04 per diluted share for a charge for
legal settlements, for the first 39 weeks of fiscal 2013, from net income of
$10.9 million, or $0.50 per diluted share, including $0.04 per diluted share
of store closing and non-cash impairment charges, for the first nine months of
last year.

"We are pleased that for the second year in a row, we have delivered the
strongest third quarter earnings per share in our history as a public
company," said Steven G. Miller, the Company's Chairman, President and Chief
Executive Officer. "We achieved these strong earnings results despite sales
being negatively impacted by unfavorable summer weather in many of our markets
during the peak of our summer selling season. Outside of this period of
challenging weather, our sales performed solidly during our third quarter.
This positive sales trending has continued, and actually accelerated, into the
start of our fourth quarter. While the consumer spending environment over the
holiday season remains uncertain, we feel well positioned from a product and
promotional standpoint for the holidays and the winter selling 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 December 13, 2013 to
stockholders of record as of November 29, 2013.

Guidance

For the fiscal 2013 fourth quarter, the Company expects same store sales in
the positive low single-digit range and earnings per diluted share in the
range of $0.20 to $0.28. This guidance reflects anticipated expenses
associated with the development of the Company's new 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 6.5% and earnings per diluted
share were $0.19 for the fourth quarter of fiscal 2012.

Store Openings

During the third quarter of fiscal 2013, the Company opened five new stores,
two of which were relocations, and closed one store as part of a relocation,
ending the quarter with 420 stores in operation. During the fiscal 2013 fourth
quarter, the Company anticipates opening nine new stores. For the fiscal 2013
full year, the Company anticipates opening 15 net new stores.

Conference Call Information

The Company will host a conference call and audio webcast today, October 29,
2013, at 2:00 p.m. Pacific (5:00 p.m. EDT) to discuss financial results for
the third quarter of fiscal 2013. To access the conference call, participants
in North America should dial (888) 437-9445, and international participants
should dial (719) 325-2463. 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
November 5, 2013 by calling (877) 870-5176 to access the playback; passcode is
2202220.

About Big 5 Sporting Goods Corporation

Big 5 is a leading sporting goods retailer in the western United States,
operating 420 stores in 12 states under the "Big 5 Sporting Goods" name as of
the end of the fiscal quarter ended September 29, 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 or delay in completing the 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 second 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)
                                                                
                                                   September 29, December 30,
                                                    2013          2012
ASSETS
                                                                
Current assets:                                                  
Cash and cash equivalents                           $ 4,931       $ 7,635
Accounts receivable, net of allowances of $135 and  11,398        15,297
$99, respectively
Merchandise inventories, net                        287,939       270,350
Prepaid expenses                                    9,052         8,784
Deferred income taxes                               10,696       9,905
Total current assets                                324,016       311,971
                                                                
Property and equipment, net                         73,111        72,089
Deferred income taxes                               14,241        14,795
Other assets, net of accumulated amortization of    3,255         3,372
$828 and $637, respectively
Goodwill                                            4,433         4,433
Total assets                                        $ 419,056     $ 406,660
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY
                                                                
Current liabilities:                                             
Accounts payable                                    $ 96,562      $ 92,688
Accrued expenses                                    64,046        67,553
Current portion of capital lease obligations        1,714         1,720
Total current liabilities                           162,322       161,961
                                                                
Deferred rent, less current portion                 20,768        21,386
Capital lease obligations, less current portion     1,885         2,855
Long-term debt                                      37,939        47,461
Other long-term liabilities                         8,858        8,577
Total liabilities                                   231,772       242,240
                                                                
Commitments and contingencies                                    
                                                                
Stockholders' equity:                                            
Common stock, $0.01 par value, authorized                        
50,000,000 shares; issued 24,332,942 and
23,783,084 shares, respectively; outstanding        244           238
22,291,106 and 21,741,248 shares, respectively
Additional paid-in capital                          109,376       102,658
Retained earnings                                   103,604       87,464
Less:Treasury stock, at cost; 2,041,836 shares     (25,940)      (25,940)
Total stockholders' equity                          187,284       164,420
Total liabilities and stockholders' equity          $ 419,056     $ 406,660
                                                                

                                                             
BIG 5 SPORTING GOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
                                                             
                      13 Weeks Ended              39 Weeks Ended
                      September 29, September 30, September 29, September 30,
                       2013          2012          2013          2012
                                                             
                                                             
Net sales ^(1)         $259,121     $251,774     $745,286     $696,882
                                                             
Cost of sales          171,331      167,901      497,348      472,505
                                                             
Gross profit ^(1)      87,790       83,873       247,938      224,377
                                                             
Selling and
administrative expense 72,432       70,384       209,540      205,560
^(1) ^(2) (3)
                                                             
Operating income       15,358       13,489       38,398       18,817
                                                             
Interest expense       395          469          1,266        1,645
                                                             
Income before income   14,963        13,020        37,132        17,172
taxes
                                                             
Income taxes           5,825        4,851        14,376       6,289
                                                             
Net income ^(1) ^(2)   $ 9,138       $ 8,169       $ 22,756      $ 10,883
(3)
.                                                             
Earnings per share:                                           
Basic                  $ 0.42        $ 0.38        $ 1.05        $ 0.51
                                                             
Diluted ^(1) ^(2) (3)  $ 0.41        $ 0.38        $ 1.03        $ 0.50
                                                             
Dividends per share    $ 0.10        $ 0.075       $ 0.30        $ 0.225
                                                             
Weighted-average
shares of common stock                           
outstanding:
Basic                  21,933        21,325        21,700        21,413
                                                             
Diluted                22,231        21,480        22,032        21,588
                                                             
^(1) In the third quarter of fiscal 2013, the Company recorded a pre-tax
charge of $1.3 million for legal settlements, of which $0.3 million was
classified as a reduction to net sales and $1.0 million was classified as
selling and administrative expense. This charge reduced net income by $0.8
million, or $0.04 per diluted share.
                                                             
^(2) In the third quarter and 39 weeks ended September 30, 2012, the Company
recorded pre-tax charges of $0.4 million and $1.1 million, respectively,
related to store closing costs. These charges reduced net income in the same
periods by $0.3 million and $0.7 million, respectively, or $0.01 per diluted
share and $0.03 per diluted share, respectively.These charges were recorded
in selling and administrative expense.
                                                             
^(3) In the third quarter and 39 weeks ended September 29, 2013, the Company
recorded a pre-tax non-cash impairment charge of $0.1 million and in the 39
weeks ended September 30, 2012, the Company recorded a pre-tax non-cash
impairment charge of $0.2 million related to certain underperforming stores.
These charges reduced net income by $44,000, or $0.00 per diluted share, in
the third quarter and 39 weeks ended September 29, 2013, and $0.1 million, or
$0.01 per diluted share, in the 39 weeks ended September 30, 2012. These
charges were recorded in selling and administrative expense.
                                                             

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