Big 5 Sporting Goods Corporation Announces Fiscal 2014 First Quarter Results

Big 5 Sporting Goods Corporation Announces Fiscal 2014 First Quarter Results

  *Achieves First Quarter Earnings per Diluted Share of $0.09

  *Declares Quarterly Cash Dividend of $0.10 per Share

EL SEGUNDO, Calif., April 29, 2014 (GLOBE NEWSWIRE) -- Big 5 Sporting Goods
Corporation (Nasdaq:BGFV), a leading sporting goods retailer, today reported
financial results for the fiscal 2014 first quarter ended March 30, 2014.

For the fiscal 2014 first quarter, net sales were $231.3 million, compared to
net sales of $246.3 million for the first quarter of fiscal 2013. Same store
sales declined 7.9% for the first quarter of fiscal 2014. For comparison
purposes, the Company's same store sales increased 10.5% for the first quarter
of fiscal 2013 over the first quarter of the prior year. Sales results for the
first quarter of fiscal 2014 reflect the anticipated reduction in demand for
firearms, ammunition and related products, as well as weak sales of
winter-related products due to unseasonably warm and dry conditions in most of
the Company's western markets. Additionally, sales results in the fiscal 2014
first quarter reflect a small benefit over the prior year from the calendar
shift of the Easter holiday, during which the Company's stores are closed, out
of the first quarter and into the second quarter this year.

Gross profit for the fiscal 2014 first quarter was $72.7 million, compared to
$80.5 million in the first quarter of the prior year. The Company's gross
profit margin was 31.4% in the fiscal 2014 first quarter versus 32.7% in the
first quarter of the prior year, reflecting a decrease in merchandise margins
of 28 basis points and an increase in store occupancy costs as a percentage of
net sales. For comparison purposes, merchandise margins in the first quarter
last year increased by 113 basis points versus the first quarter of fiscal
2012.

Selling and administrative expense as a percentage of net sales increased to
29.8% in the fiscal 2014 first quarter from 27.6% in the first quarter of the
prior year, due primarily to lower sales levels.

Net income for the first quarter of fiscal 2014 was $2.1 million, or $0.09 per
diluted share, including expenses associated with the development of the
Company's new e-commerce platform of $0.01 per diluted share, compared to net
income of $7.5 million, or $0.34 per diluted share, for the first quarter of
fiscal 2013.

"As expected, our first quarter results declined when compared to a very
strong performance during the prior year, due largely to substantially reduced
demand for firearms and ammunition products and soft sales of winter products
resulting from warm and dry conditions in most of our western markets
throughout the winter season," said Steven G. Miller, the Company's Chairman,
President and Chief Executive Officer. "We were encouraged by the strength of
our non-firearm and non-winter-related product categories during the quarter.
Excluding sales of firearms, ammunition, firearm accessories and
winter-related products, the Company's same store sales increased in the solid
low single-digit range for the period. While current sales trends are somewhat
difficult to read given the later timing of Easter this year, sales in the
second quarter to-date have been challenged by lower than expected demand for
firearms and ammunition products compared to the prior year, as well as what
appears to be some softness in our overall consumer environment. That being
said, we feel well positioned from a merchandise and promotional perspective
for the key selling period during the quarter, which includes Memorial Day,
Father's Day and the start of 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 13, 2014 to stockholders
of record as of May 30, 2014.

Share Repurchases

During the fiscal 2014 first quarter, pursuant to its share repurchase
program, the Company repurchased 28,512 shares of its common stock for a total
expenditure of $0.4 million. As of March 30, 2014, the Company had $9.2
million available for future share repurchases under its $20.0 million share
repurchase program.

Guidance

For the fiscal 2014 second quarter, the Company expects same store sales
comparisons in the low negative to low positive single-digit range and
earnings per diluted share in the range of $0.12 to $0.20. This guidance
reflects the continued softness in demand for firearms, ammunition and related
products and the negative effect of the calendar shift of the Easter holiday,
during which the Company's stores are closed, out of the first quarter and
into the second quarter this year. In addition, second quarter guidance
includes approximately $0.01 per diluted share in anticipated expenses
associated with the development of the Company's e-commerce platform. For
comparative purposes, the Company's same store sales increased 4.4% and
earnings per diluted share were $0.28 for the second quarter of fiscal 2013.

Store Openings

During the first quarter of fiscal 2014, the Company closed four stores, two
of which were part of relocations, and ended the quarter with 425 stores in
operation. During the fiscal 2014 second quarter, the Company anticipates
opening two new stores. For the fiscal 2014 full year, the Company currently
anticipates opening approximately 12 to 15 net new stores.

Conference Call Information

The Company will host a conference call and audio webcast today, April 29,
2014, at 2:00 p.m. Pacific (5:00 p.m. EDT) to discuss financial results for
the first quarter of fiscal 2014. To access the conference call, participants
in North America should dial (888) 503-8169, and international participants
should dial (719) 325-2429. 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 6, 2014 by calling (877) 870-5176 to access the playback; passcode is
3362038.

About Big 5 Sporting Goods Corporation

Big 5 is a leading sporting goods retailer in the western United States,
operating 425 stores in 12 states under the "Big 5 Sporting Goods" name as of
the fiscal quarter ended March 30, 2014. 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,
snowboarding 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 an e-commerce platform,
delay in completing the e-commerce platform, lower than expected profitability
of the e-commerce platform or cannibalization of sales from Big 5's existing
store base which could occur as a result of operating the e-commerce platform,
litigation risks, disruption in product flow, changes in interest rates,
credit availability, higher expense 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 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.

                           FINANCIAL TABLES FOLLOW

BIG 5 SPORTING GOODS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share amounts)
                                                              
                                                              
                                                              
                                                March 30, 2014 December 29,
                                                                2013
ASSETS                                                         
                                                              
Current assets:                                                
Cash                                             $5,902       $9,400
Accounts receivable, net of allowances of $85    9,860          16,301
and $105, respectively
Merchandise inventories, net                     294,071        300,952
Prepaid expenses                                 14,690         6,356
Deferred income taxes                            10,153         12,000
Total current assets                             334,676        345,009
                                                              
Property and equipment, net                      73,564         75,608
Deferred income taxes                            13,348         13,564
Other assets, net of accumulated amortization of 3,192          3,274
$935 and $891, respectively
Goodwill                                         4,433          4,433
Total assets                                     $429,213     $441,888
                                                              
LIABILITIES AND STOCKHOLDERS' EQUITY                           
                                                              
Current liabilities:                                           
Accounts payable                                 $96,334      $104,826
Accrued expenses                                 56,598         69,923
Current portion of capital lease obligations     1,386          1,567
Total current liabilities                        154,318        176,316
                                                              
Deferred rent, less current portion              20,220         21,078
Capital lease obligations, less current portion  1,429          1,595
Long-term debt                                   54,219         43,018
Other long-term liabilities                      9,468          9,111
Total liabilities                                239,654        251,118
                                                              
Commitments and contingencies                                  
                                                              
Stockholders' equity:                                          
Common stock, $0.01 par value, authorized
50,000,000 shares; issued 24,441,150 and         244            244
24,339,537 shares, respectively; outstanding
22,370,802 and 22,297,701 shares, respectively
Additional paid-in capital                       109,285        109,901
Retained earnings                                106,395        106,565
Less:Treasury stock, at cost; 2,070,348 and     (26,365)       (25,940)
2,041,836 shares, respectively
Total stockholders' equity                       189,559        190,770
Total liabilities and stockholders' equity       $429,213     $441,888
                                                              
BIG 5 SPORTING GOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
                                                              
                                                              
                                                13 Weeks Ended
                                                March 30, 2014 March 31, 2013
                                                              
                                                              
Net sales                                        $231,263     $246,266
                                                              
Cost of sales                                    158,585       165,791
                                                              
Gross profit                                     72,678        80,475
                                                              
Selling and administrative expense               68,904        67,928
                                                              
Operating income                                 3,774         12,547
                                                              
Interest expense                                 434           453
                                                              
Income before income taxes                       3,340          12,094
                                                              
Income taxes                                     1,280         4,580
                                                              
Net income                                       $2,060       $7,514
                                                              
Earnings per share:                                            
Basic                                            $0.09        $0.35
                                                              
Diluted                                          $0.09        $0.34
                                                              
Dividends per share                              $0.10        $0.10
                                                              
Weighted-average shares of common stock                        
outstanding:
Basic                                            21,980        21,453
                                                              
Diluted                                          22,231        21,822

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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