DICK'S Sporting Goods Reports Third Quarter Results; Exceeds Expectations - Consolidated earnings per diluted share totaled $0.40 and consolidated same store sales increased 3.3% (adjusted for the shifted calendar), in both cases exceeding prior guidance - Company narrows full year non-GAAP guidance range to $2.62 to 2.65 per diluted share - Capital allocation strategy on track, with additional share repurchases totaling approximately $25.0 million and declaration of $0.125 per share quarterly dividend PR Newswire PITTSBURGH, Nov. 19, 2013 PITTSBURGH, Nov.19, 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 third quarter ended November2, 2013. Third Quarter Results The Company reported consolidated net income for the third quarter ended November2, 2013 of $50.0 million, or $0.40 per diluted share, compared to the Company's expectations provided on August20, 2013 of $0.37 to 0.39 per diluted share. For the third quarter ended October27, 2012, the Company reported consolidated net income of $50.1 million, or $0.40 per diluted share. Net sales for the third quarter of 2013 increased 6.7% to $1.4 billion. Adjusted for the shifted calendar, due to the 53^rd week in 2012, consolidated same store sales increased 3.3%, compared to the Company's guidance of approximately flat to an increase of 1%. Third quarter 2012 consolidated same store sales increased 5.1%. Shifted same store sales in the third quarter of 2013 for DICK'S Sporting Goods increased 3.4% while Golf Galaxy increased 2.2%. Unshifted consolidated same store sales for the third quarter increased 0.3%, compared to the Company's guidance of an approximate 2 to 3% decrease. Unshifted same store sales in the third quarter of 2013 for DICK'S Sporting Goods increased 0.6% while Golf Galaxy decreased 4.7%. eCommerce penetration for the quarter was 6.5% of total sales. "Despite the continued challenging consumer environment, we delivered better than expected results in the third quarter, exceeding both our sales and earnings expectations. The marketing efforts, improved customer experience and selective pricing initiatives we began in the third quarter were successful in driving traffic and sales, but at slightly lower than anticipated margins," said Edward W. Stack, Chairman and CEO. "We remain excited about the long-term opportunities in our business that we presented at our analyst day in September, and we will continue to drive towards those goals." Store Development In the third quarter, the Company opened 25 new DICK'S Sporting Goods stores, one new Golf Galaxy store and two new Field & Stream stores. The Company also relocated one DICK'S Sporting Goods store, repositioned one Golf Galaxy store and completed three full and 22 apparel remodels of DICK'S Sporting Goods stores. As of November2, 2013, the Company operated 552 DICK'S Sporting Goods stores in 45 states, with approximately 29.9 million square feet and 82 Golf Galaxy stores in 30 states, with approximately 1.4 million square feet. Store count, square footage and new stores are listed in a table later in the release under the heading "Store Count and Square Footage." In the beginning of the fourth quarter, the Company opened six new DICK'S Sporting Goods stores and remodeled one DICK'S Sporting Goods store. The Company also opened one new True Runner store. The Company has now completed its 2013 store development program, opening a total of 40 new DICK'S Sporting Goods stores, one new Golf Galaxy store, two new Field& Stream stores and one new True Runner store. The Company also relocated one DICK'S Sporting Goods store, repositioned one Golf Galaxy store and completed four full and 75 apparel remodels of DICK'S Sporting Goods stores in 2013. Balance Sheet The Company ended the third quarter of 2013 with approximately $66 million in cash and cash equivalents as compared to $294 million at the end of the third quarter of 2012. Due to seasonality and capital utilization over the last 12 months, which included investments in omni-channel growth, store remodels, share repurchases, and special and quarterly dividends, the Company ended the quarter with approximately $116 million in outstanding borrowings under its $500 million line of credit. The Company expects to end fiscal 2013 with no outstanding borrowings under the revolving credit facility. Inventory per square foot was 5.6% higher at the end of the third quarter of 2013 as compared to the end of the third quarter of 2012. Year-to-Date Results The Company reported consolidated non-GAAP net income for the 39 weeks ended November 2, 2013 of $199.3 million, or $1.59 per diluted share. For the 39 weeks ended October 27, 2012, the Company reported consolidated non-GAAP net income of $188.6 million, or $1.50 per diluted share. On a GAAP basis, the Company reported consolidated net income for the 39 weeks ended November 2, 2013 of $199.0 million, or $1.58 per diluted share. For the 39 weeks ended October 27, 2012, on a GAAP basis, the Company reported consolidated net income of $161.0 million, or $1.28 per diluted share. The GAAP to non-GAAP reconciliations are included in a table later in the release under the heading "Non-GAAP Net Income and Earnings Per Share Reconciliations." Net sales for the 39 weeks ended November 2, 2013 increased 5.8% from last year's period to $4.3 billion primarily due to the opening of new stores. Unshifted consolidated same store sales were flat year-to-date. Dividend On November14, 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 December27, 2013 to stockholders of record at the close of business on December6, 2013. Share Repurchase Program In the third quarter of 2013, the Company repurchased approximately 0.5 million shares of its common stock at an average cost of $52.09 per share, for a total cost of $25.0 million. Current 2013 Outlook The Company's current outlook for 2013 is based on current expectations and includes "forward-looking statements" within the meaning of Section27A of the Securities Act of 1933 and Section21E 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. oFourth Quarter 2013 oBased on an estimated 126 million diluted shares outstanding, the Company currently anticipates reporting consolidated earnings per diluted share of approximately $1.04 to 1.07 in the fourth quarter of 2013, compared to fourth quarter 2012 consolidated earnings per diluted share of $1.03. The 14^th week in fiscal 2012 contributed approximately $0.03 to earnings per diluted share. oConsolidated same store sales adjusted for the shifted calendar, due to the 53^rdweek in 2012, are currently expected to increase 3 to 4% in the fourth quarter of 2013, or increase 2 to 3% on an unshifted basis, as compared to a 1.2% increase in the fourth quarter of 2012. 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 non-GAAP earnings per diluted share of approximately $2.62 to 2.65, excluding an asset impairment charge and the partial recovery of a previously impaired asset. For the 53 weeks ended February2, 2013, the Company reported consolidated non-GAAP earnings per diluted share of $2.53, excluding an impairment charge.The 53^rd week in fiscal 2012 contributed approximately $0.03 to earnings per diluted share. oConsolidated same store sales are currently expected to be approximately flat to an increase of 1% on a 52-week to 52-week comparative basis, compared to a 4.3% increase in fiscal 2012. 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. Conference Call Info The Company will host a conference call today at 10:00a.m. Eastern Time to discuss the third quarter 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 approximately 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 10035658. The dial-in replay will be available for approximately 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 expectations for future performance, long-term opportunities, the Company's future goals, the amounts outstanding under the Company's credit facility in future periods and expectations on capital expenditures. 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 to 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; risks 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 Form10-K for the year ended February 2, 2013 as filed with the Securities and Exchange Commission ("SEC") on March22, 2013 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 November19, 2013, the Company operated 558 DICK'S Sporting Goods stores in 46 states, 82 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: Anne-Marie Megela, VP – Treasury Services and Investor Relations or Scott W. McKinney, Director of Investor Relations DICK'S Sporting Goods, Inc. firstname.lastname@example.org (724) 273-3400 DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED (In thousands, except per share data) 13 Weeks Ended November2, % of October27, % of 2013 2012 Sales Sales ^ (1) Net sales $ 1,400,623 100.00 % $ 1,312,072 100.00 % Cost of goods sold, including occupancy and 975,724 69.66 905,948 69.05 distribution costs GROSS PROFIT 424,899 30.34 406,124 30.95 Selling, general and 333,724 23.83 314,637 23.98 administrative expenses Pre-opening expenses 12,122 0.87 9,294 0.71 INCOME FROM OPERATIONS 79,053 5.64 82,193 6.26 Interest expense 696 0.05 860 0.07 Other income (2,735) (0.20) (1,113) (0.08) INCOME BEFORE INCOME TAXES 81,092 5.79 82,446 6.28 Provision for income taxes 31,115 2.22 32,307 2.46 NET INCOME $ 49,977 3.57 % $ 50,139 3.82 % EARNINGS PER COMMON SHARE: Basic $ 0.41 $ 0.41 Diluted $ 0.40 $ 0.40 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 123,221 122,103 Diluted 125,842 125,938 Cash dividend declared per $ 0.125 $ 0.125 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) 39 Weeks Ended November2, % of October27, % of 2013 2012 Sales ^(1) Sales Net sales $ 4,265,755 100.00 % $ 4,030,818 100.00 % Cost of goods sold, including occupancy and 2,949,872 69.15 2,782,306 69.03 distribution costs GROSS PROFIT 1,315,883 30.85 1,248,512 30.97 Selling, general and 983,382 23.05 921,631 22.86 administrative expenses Pre-opening expenses 18,736 0.44 14,311 0.36 INCOME FROM OPERATIONS 313,765 7.36 312,570 7.75 Impairment of available-for-sale — — 32,370 0.80 investments Interest expense 2,081 0.05 5,309 0.13 Other income (10,675) (0.25) (2,923) (0.07) INCOME BEFORE INCOME TAXES 322,359 7.56 277,814 6.89 Provision for income taxes 123,398 2.89 116,855 2.90 NET INCOME $ 198,961 4.66 % $ 160,959 3.99 % EARNINGS PER COMMON SHARE: Basic $ 1.62 $ 1.33 Diluted $ 1.58 $ 1.28 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 122,942 121,181 Diluted 125,766 125,825 Cash dividends declared per $ 0.375 $ 0.375 share ^(1)Column does not add due to rounding DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - UNAUDITED (Dollars in thousands) November2, October27, February2, 2013 2012 2013 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 65,647 $ 294,493 $ 345,214 Accounts receivable, net 81,389 57,212 34,625 Income taxes receivable 34,635 2,779 15,737 Inventories, net 1,570,034 1,382,684 1,096,186 Prepaid expenses and other current 104,806 35,367 73,838 assets Deferred income taxes 48,414 26,755 30,289 Total current assets 1,904,925 1,799,290 1,595,889 Property and equipment, net 1,059,865 851,302 840,135 Intangible assets, net 98,792 99,033 98,903 Goodwill 200,594 200,594 200,594 Other assets: Deferred income taxes 3,286 8,269 4,382 Other 80,433 111,093 147,904 Total other assets 83,719 119,362 152,286 TOTAL ASSETS $ 3,347,895 $ 3,069,581 $ 2,887,807 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 738,196 $ 665,608 $ 507,247 Accrued expenses 316,421 296,232 269,900 Deferred revenue and other 106,847 96,233 146,362 liabilities Income taxes payable — — 68,746 Current portion of other long-term debt and leasing 7,540 8,584 8,513 obligations Total current liabilities 1,169,004 1,066,657 1,000,768 LONG-TERM LIABILITIES: Revolving credit borrowings 116,400 — — Other long-term debt and leasing 6,596 14,157 7,762 obligations Deferred income taxes 29,160 — 7,413 Deferred revenue and other 328,712 283,835 284,540 liabilities Total long-term liabilities 480,868 297,992 299,715 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common stock 982 977 981 ClassB common stock 249 250 249 Additional paid-in capital 937,742 855,881 874,236 Retained earnings 1,064,511 1,047,668 911,704 Accumulated other comprehensive 78 114 112 income Treasury stock (305,539) (199,958) (199,958) Total stockholders' equity 1,698,023 1,704,932 1,587,324 TOTAL LIABILITIES AND STOCKHOLDERS' $ 3,347,895 $ 3,069,581 $ 2,887,807 EQUITY DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED (Dollars in thousands) 39 Weeks Ended November2, October27, 2013 2012 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 198,961 $ 160,959 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 113,437 88,627 Impairment of available-for-sale investments — 32,370 Deferred income taxes 4,718 (10,128) Stock-based compensation 20,610 23,643 Excess tax benefit from exercise of stock options (20,966) (61,461) Tax benefit from exercise of stock options 125 4,761 Other non-cash items 435 227 Changes in assets and liabilities: Accounts receivable (28,850) (17,374) Inventories (473,848) (367,687) Prepaid expenses and other assets (9,752) 31,599 Accounts payable 209,346 178,700 Accrued expenses 3,440 18 Income taxes payable / receivable (66,680) 33,260 Deferred construction allowances 37,125 21,744 Deferred revenue and other liabilities (45,804) (35,922) Net cash (used in) provided by operating activities (57,703) 83,336 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (196,862) (157,448) Purchase of JJB Sports convertible notes and equity — (31,986) securities Proceeds from sale of other assets 11,000 — Deposits and purchases of other assets (60,048) (54,819) Net cash used in investing activities (245,910) (244,253) CASH FLOWS FROM FINANCING ACTIVITIES: Revolving credit borrowings, net 116,400 — Payments on other long-term debt and leasing (2,139) (138,856) obligations Construction allowance receipts — — Proceeds from exercise of stock options 34,920 71,683 Excess tax benefit from exercise of stock options 20,966 61,461 Minimum tax withholding requirements (13,090) (5,329) Cash paid for treasury stock (105,603) (198,774) Cash dividends paid to stockholders (48,977) (45,668) Increase (decrease) in bank overdraft 21,603 (23,505) Net cash provided by (used in) financing activities 24,080 (278,988) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH (34) (4) EQUIVALENTS NET DECREASE IN CASH AND CASH EQUIVALENTS (279,567) (439,909) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 345,214 734,402 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 65,647 $ 294,493 Store Count and Square Footage The stores that opened during the third quarter of 2013 are as follows: Store Market Concept Tallahassee, FL Tallahassee DICK'S Sporting Goods Duluth, MN Duluth DICK'S Sporting Goods Gretna, LA New Orleans DICK'S Sporting Goods South Plainfield, NJ New Jersey North DICK'S Sporting Goods El Paso, TX El Paso DICK'S Sporting Goods Gainesville, GA Gainesville DICK'S Sporting Goods Athens, GA Athens DICK'S Sporting Goods Lake Charles, LA Lake Charles DICK'S Sporting Goods Albuquerque, NM Albuquerque DICK'S Sporting Goods Prescott Valley, AZ Prescott DICK'S Sporting Goods Issaquah, WA Seattle DICK'S Sporting Goods Salina, KS Salina DICK'S Sporting Goods Redding, CA Redding DICK'S Sporting Goods Victorville, CA Victorville DICK'S Sporting Goods Ashland, KY Huntington DICK'S Sporting Goods Kendall, FL Miami DICK'S Sporting Goods Bowling Green, KY Bowling Green DICK'S Sporting Goods Riverhead, NY Long Island DICK'S Sporting Goods Morganton, NC Charlotte DICK'S Sporting Goods Casper, WY Casper DICK'S Sporting Goods Batavia, NY Rochester DICK'S Sporting Goods Corpus Christi, TX Corpus Christi DICK'S Sporting Goods Newport, KY Cincinnati DICK'S Sporting Goods Osage Beach, MO Osage Beach DICK'S Sporting Goods Dover, DE Dover DICK'S Sporting Goods Henderson, NV Las Vegas Golf Galaxy Cranberry, PA Pittsburgh Field & Stream Crescent Springs, KY Cincinnati Field & Stream The following represents a reconciliation of beginning and ending stores and square footage for the periods indicated: Store Count: Fiscal 2013 Fiscal 2012 Golf Golf Galaxy / Galaxy / DICK'S DICK'S Sporting Specialty Total Sporting Specialty Total Goods Store Goods Store Concepts ^(1) Concepts ^(1) Beginning 518 83 601 480 81 561 stores Q1 New 2 — 2 6 — 6 stores Q2 New 7 — 7 4 — 4 stores Q3 New 25 3 28 21 2 23 stores Ending 552 86 638 511 83 594 stores Remodeled 3 — 3 — — — stores Relocated 1 1 2 4 — 4 stores Square Footage: (in millions) Golf Galaxy / DICK'S Sporting Specialty Total Goods Store ^(2) Concepts ^(1) 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 Q1 2013 28.3 1.4 29.7 Q2 2013 28.7 1.4 30.0 Q3 2013 29.9 1.5 31.4 ^(1) Includes the Company's Field & Stream and True Runner stores. [ ] ^(2) Column may not add due to rounding. 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") and a reconciliation from the Company's gross capital expenditures, net of tenant allowances. 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 2013 39 Weeks Ended November 2, 2013 Recovery of Asset As Non-GAAP Reported Previously Impairment Total Impaired Asset Charge Net sales $ 4,265,755 $ — $ — $ 4,265,755 Cost of goods sold, including occupancy and 2,949,872 — — 2,949,872 distribution costs GROSS PROFIT 1,315,883 — — 1,315,883 Selling, general and 983,382 — (7,881) 975,501 administrative expenses Pre-opening 18,736 — — 18,736 expenses INCOME FROM 313,765 — 7,881 321,646 OPERATIONS Interest expense 2,081 — — 2,081 Other income (10,675) 4,342 — (6,333) INCOME BEFORE 322,359 (4,342) 7,881 325,898 INCOME TAXES Provision for 123,398 — 3,152 126,550 income taxes NET INCOME $ 198,961 $ (4,342) $ 4,729 $ 199,348 EARNINGS PER COMMON SHARE: Basic $ 1.62 $ 1.62 Diluted $ 1.58 $ 1.59 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 122,942 122,942 Diluted 125,766 125,766 During the first quarter of 2013, the Company determined that it would recover $4.3 million of its investment in JJB Sports, which it had previously fully impaired. There is no related tax expense as the Company reversed a portion of the deferred tax valuation allowance it had previously recorded for net capital loss carryforwards it did not expect to realize at the time its investment in JJB Sports was fully impaired. During the second quarter of 2013, the Company recorded a pre-tax $7.9 million non-cash impairment charge to reduce the carrying value of a corporate aircraft held for sale to fair market value. The provision for income taxes was calculated at 40%, which approximates the Company's blended tax rate. Fiscal 2012 39 Weeks Ended October 27, 2012 Impairment of Non-GAAP As Reported Investments Total Net sales $ 4,030,818 $ — $ 4,030,818 Cost of goods sold, including occupancy and 2,782,306 — 2,782,306 distribution costs GROSS PROFIT 1,248,512 — 1,248,512 Selling, general and 921,631 — 921,631 administrative expenses Pre-opening expenses 14,311 — 14,311 INCOME FROM OPERATIONS 312,570 — 312,570 Impairment of available-for-sale 32,370 (32,370) — investments Interest expense 5,309 — 5,309 Other income (2,923) — (2,923) INCOME BEFORE INCOME 277,814 32,370 310,184 TAXES Provision for income 116,855 4,734 121,589 taxes NET INCOME $ 160,959 $ 27,636 $ 188,595 EARNINGS PER COMMON SHARE: Basic $ 1.33 $ 1.56 Diluted $ 1.28 $ 1.50 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 121,181 121,181 Diluted 125,825 125,825 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. 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. 13 Weeks Ended November2, October27, 2013 2012 (dollarsinthousands) Net income $ 49,977 $ 50,139 Provision for income taxes 31,115 32,307 Interest expense 696 860 Depreciation and 37,123 30,527 amortization EBITDA $ 118,911 $ 113,833 % increase in EBITDA 4 % 39 Weeks Ended November2, October27, 2013 2012 (dollarsinthousands) Net income $ 198,961 $ 160,959 Provision for income taxes 123,398 116,855 Interest expense 2,081 5,309 Depreciation and 113,437 88,627 amortization EBITDA $ 437,877 $ 371,750 Add: Impairment of available-for-sale — 32,370 investments Less: Recovery of (4,342) — previously impaired asset Adjusted EBITDA, as $ 433,535 $ 404,120 defined % increase in adjusted 7 % EBITDA 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. 39 Weeks Ended November2, October27, 2013 2012 (dollarsinthousands) Gross capital expenditures $ (196,862) $ (157,448) Proceeds from sale-leaseback — — transactions Deferred construction 37,125 21,744 allowances Construction allowance — — receipts Net capital expenditures $ (159,737) $ (135,704) SOURCE DICK'S Sporting Goods, Inc. Website: http://www.dickssportinggoods.com
DICK'S Sporting Goods Reports Third Quarter Results; Exceeds Expectations
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