-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Rxj2a88wxdX1IGlL4dvIF6x+vACLERGVKkaaqjXm/AkfOSiytjYqzKhjCXLF8KTS EK9GO4V9rwdd1fK6gslPIw== 0000931763-97-002097.txt : 19971208 0000931763-97-002097.hdr.sgml : 19971208 ACCESSION NUMBER: 0000931763-97-002097 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19971101 FILED AS OF DATE: 19971205 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: HIBBETT SPORTING GOODS INC CENTRAL INDEX KEY: 0001017480 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISCELLANEOUS SHOPPING GOODS STORES [5940] IRS NUMBER: 631074067 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-20969 FILM NUMBER: 97733057 BUSINESS ADDRESS: STREET 1: 451 INDUSTRIAL LANE CITY: BIRMINGHAM STATE: AL ZIP: 35211 BUSINESS PHONE: 2059424292 MAIL ADDRESS: STREET 1: 451 INDUSTRIAL LANE CITY: BIRNINGHAM STATE: AL ZIP: 35211 10-Q 1 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ____X____ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended: November 1, 1997 ----------------- - OR - ________ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transaction period from to ---------- --------- COMMISSION FILE NUMBER 000-20969 HIBBETT SPORTING GOODS, INC. (Exact name of registrant as specified in its charter) DELAWARE 63-1074067 --------- ---------- (State or other jurisdiction of (IRS Employee Identification No.) incorporation or organization) 451 INDUSTRIAL LANE, BIRMINGHAM, ALABAMA 35211 ---------------------------------------- ----- (Address of principal executive offices) (Zip code) (205)-942-4292 -------------- (Registrant's telephone number including area code) NONE ---- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ------ ------ Indicate the number of shares outstanding of each of the issuer's common stock, as of the latest practicable date: Shares of common stock, par value $.01 per share, outstanding as of November 1, 1997 were 6,393,237 shares. HIBBETT SPORTING GOODS, INC. INDEX PAGE NO. -------- PART I. FINANCIAL INFORMATION Item 1. Financial Statements Condensed Consolidated Balance Sheets at November 1, 1997 and February 1, 1997 3 Condensed Consolidated Statements of Operations for the Thirteen Week and Thirty-Nine Week Periods Ended November 1, 1997 and November 2, 1996 4 Condensed Consolidated Statements of Cash Flows for the Thirty-Nine Week Periods Ended November 1, 1997 and November 2, 1996 5 Notes to Condensed Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7-10 PART II. OTHER INFORMATION Item 1. Legal Proceedings 10 Item 2. Changes in Securities 11 Item 3. Defaults Upon Senior Securities 11 Item 4. Submission of Matters to Vote of Security-Holders 11 Item 5. Other Information 11 Item 6. Exhibits and Reports on Form 8-K 11 HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS)
NOVEMBER 1, 1997 FEBRUARY 1, 1997 ---------------- ---------------- (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 2,498 $ 2,269 Accounts receivable, net 2,094 2,097 Inventories 41,307 24,521 Prepaid expenses and other 879 613 Deferred income taxes 771 626 -------- ------- Total current assets 47,549 30,126 -------- ------- Property and equipment, net 11,479 9,884 -------- ------- Noncurrent Assets: Deferred income taxes 353 321 Other, net 33 27 -------- ------- Total noncurrent assets 386 348 -------- ------- Total Assets $ 59,414 $40,358 ======== ======= LIABILITIES AND STOCKHOLDERS' INVESTMENT Current Liabilities: Accounts payable $ 19,666 $10,381 Accrued income taxes 438 436 Accrued expenses: Payroll-related 1,402 1,875 Other 1,957 1,144 Related-party 33 10 -------- ------- Total current liabilities 23,496 13,846 -------- ------- Long-Term Debt - - -------- ------- Stockholders' Investment: Preferred stock, $.01 par value 1,000,000 shares authorized, no shares outstanding - - Common stock, $.01 par value, 12,000,000 shares authorized, 6,393,237 shares issued and outstanding at November 1, 1997 and 6,134,261 shares issued and outstanding at February 1, 1997 64 61 Paid-in capital 53,617 47,974 Retained earnings (deficit) (17,763) (21,523) -------- ------- Total stockholders' investment 35,918 26,512 -------- ------- Total Liabilities and Stockholders' Investment $ 59,414 $40,358 ======== ======= SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED -------------- -------------- ------------------------------- NOVEMBER 1, 1997 NOVEMBER 2, 1997 NOVEMBER 1, 1997 NOVEMBER 2, 1996 ---------------- --------------- ----------------- ---------------- (Unaudited) (Unaudited) Net sales $ 27,797 $ 20,618 $ 80,355 $ 59,637 Cost of goods sold, (Including warehouse, distribution and store occupancy costs) 19,306 14,201 55,987 41,473 ------------- ------------- -------------- ------------- Gross profit 8,491 6,417 24,368 18,164 Store operating, selling, and administrative expenses 5,722 4,407 16,634 12,174 Depreciation and amortization 576 467 1,649 1,293 ------------- ------------- -------------- ------------- Operating income 2,193 1,543 6,085 4,697 Interest expense (income), net 6 792 (5) 2,606 ------------- -------------- -------------- ------------- Income before provision for income taxes 2,187 751 6,090 2,091 Provision for income taxes 837 287 2,330 801 ------------- -------------- -------------- ------------- Income before extraordinary item 1,350 464 3,760 1,290 Extraordinary item, net - (1,093) - (1,093) ------------- -------------- -------------- ------------- Net income (loss) $ 1,350 $ (629) $ 3,760 $ 197 ============= ============== ============== ============= Earnings per common share: Income before extraordinary item $ 0.21 $ 0.10 $ 0.60 $ 0.31 Extraordinary item, net - (0.24) - (0.26) ------------- ------------- -------------- ------------- Net income (loss) $ 0.21 $ (0.14) $ 0.60 $ 0.05 ============= ============= ============== ============= Weighted average shares outstanding 6,366,420 4,549,102 6,310,304 4,168,150 ============= ============= ============== ============= SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (DOLLARS IN THOUSANDS)
THIRTY-NINE WEEKS ENDED ------------------------------------ NOVEMBER 1, 1997 NOVEMBER 2, 1996 ---------------- ---------------- (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 3,760 $ 197 ------- ------- Adjustments to reconcile net income to net cash (used in) operating activities: Extraordinary item, net - 1,093 Depreciation and amortization 1,649 1,441 Deferred income taxes (177) (173) (Gain) loss on disposal of assets 16 (531) Interest expense funded through additional debt - 14 Change in assets and liabilities (6,949) (8,542) ------- ------- Total adjustments (5,461) (6,698) ------- ------- Net cash (used in) operating activities (1,701) (6,501) ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (3,268) (3,732) Proceeds from sale of property 14 5,555 ------- ------- Net cash provided by (used in) investing activities (3,254) 1,823 CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from issuance of stock 4,766 33,074 Repayment of long-term debt to stockholders - (16,000) Principal payments on long-term debt - (4,267) Proceeds from options exercised and purchase of shares under employee stock purchase plan 418 - Repayment of term loan - (1,000) Revolving loan borrowings and repayments, net - (6,871) ------- ------- Net cash provided by financing activities 5,184 4,936 ------- ------- NET INCREASE IN CASH AND CASH EQUIVALENTS 229 258 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,269 31 ------- ------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2,498 $ 289 ======= =======
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS. HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Basis of Presentation The accompanying unaudited consolidated financial statements of Hibbett Sporting Goods, Inc., and its wholly-owned subsidiaries (the "Company") have been prepared in accordance with generally accepted accounting principles for interim financial information and are presented in accordance with the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended February 1, 1997. In the opinion of management, the condensed consolidated financial statements included herein contain all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the Company's financial position as of November 1, 1997 and November 2, 1996, and the results of its operations and cash flows for the periods presented. The Company has experienced and expects to continue to experience seasonal fluctuations in its net sales and operating income. Therefore, the results of the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year. 2. EARNINGS PER SHARE Earnings per share for the periods presented is calculated by dividing net income by the number of weighted average shares outstanding. Common stock equivalents in the form of stock options are included in the calculation utilizing the treasury stock method in accordance with Accounting Principles Board Opinion ("APB") No. 15 for all periods presented. In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards ("SFAS") No. 128, Earnings Per Share. SFAS No. 128 will supersede APB No.15 effective for periods ending after December 15, 1997. Under SFAS No. 128, the Company's basic earnings per share for the thirteen weeks ended November 1, 1997 and November 2, 1996 would have been $0.22 and $(0.14), respectively and for the thirty-nine weeks ended November 1, 1997 and November 2, 1996 basic earnings per share would have been $0.61 and $0.05, respectively. 3. STOCKHOLDERS' INVESTMENT TRANSACTIONS In October 1997, the Company and certain shareholders completed an offering of 200,000 primary shares and 933,197 secondary shares at a price of $27.75 per share. The Company's net proceeds of $4,766,000 were used to reduce borrowings under the Revolving Credit Facility and for working capital and general corporate purposes. 4. CONTINGENCIES The Company is a party to various legal proceedings incidental to its business. In the opinion of management, after consultation with legal counsel, the ultimate liability, if any, with respect to those proceedings is not presently expected to materially affect the financial position or results of operations of the Company. 6 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW Hibbett Sporting Goods, Inc. ("Hibbett" or the "Company") is a rapidly- growing operator of full-line sporting goods stores in small to mid-sized markets in the southeastern United States. Hibbett's stores offer a broad assortment of high quality athletic equipment, footwear, and apparel at competitive prices with superior customer service. The Company's merchandise assortment features a core selection of brand name merchandise emphasizing team and individual sports complemented by a selection of localized apparel and accessories designed to appeal to a wide range of customers within each market. The Company believes that its stores are among the primary retail distribution alternatives for brand name vendors that seek to reach Hibbett's target markets. The Company operates 101 Hibbett Sports stores as well as eight smaller- format Sports Addition athletic shoe stores and four larger-format Sports & Co. superstores. Hibbett's primary retail format and growth vehicle is Hibbett Sports, a 5,000 square foot store located primarily in enclosed malls as well as dominant strip centers. Although competitors in some markets may carry product lines and national brands similar to Hibbett, the Company believes that its Hibbett Sports stores are typically the primary, full-line sporting goods retailers in their markets due to, among other factors, the extensive selection of traditional team and individual sports merchandise offered and a high level of customer service. The Company operates on a 52 or 53 week fiscal year ending on the Saturday nearest to January 31 of each year. Hibbett is incorporated under the laws of the state of Delaware. RESULTS OF OPERATIONS The following table sets forth statement of operations items expressed as a percentage of net sales for the periods indicated.
THIRTEEN WEEK THIRTY-NINE WEEK PERIOD ENDED PERIOD ENDED ----------------------- ----------------------- November 1, November 2, November 1, November 2, 1997 1996 1997 1996 ----------- ----------- ----------- ----------- Net sales 100.0% 100.0 % 100.0 % 100.0 % Cost of goods sold, including warehouse, distribution, and store 69.5 68.9 69.7 69.5 occupancy costs ----- ----- ----- ----- Gross profit 30.5 31.1 30.3 30.5 Store operating, selling, and administrative expenses 20.6 21.4 20.7 20.4 Depreciation and amortization 2.0 2.3 2.0 2.2 ----- ----- ----- ----- Operating income 7.9 7.4 7.6 7.9 Interest expense (income), net - 3.8 - 4.4 ----- ----- ----- ----- Income before provision for income taxes and extraordinary item 7.9 3.6 7.6 3.5 Provision for income taxes 3.0 1.4 2.9 1.4 ----- ----- ----- ----- Income before extraordinary 4.9 2.2 4.7 2.1 item Extraordinary item, net - (5.3) - (1.8) ----- ----- ----- ----- Net income (loss) 4.9% (3.1)% 4.7% 0.3 % ===== ===== ===== =====
7 THIRTEEN WEEKS ENDED NOVEMBER 1, 1997 COMPARED TO THIRTEEN WEEKS ENDED NOVEMBER 2, 1996 Net sales. Net sales increased $7.2 million, or 34.8%, to $27.8 million for the thirteen weeks ended November 1, 1997, from $20.6 million for the comparable period in the prior year. This increase is attributed to the opening of twenty- eight Hibbett Sports stores and one Sports Addition store in the last 52 week period ended November 1, 1997, and a 9.2% increase in comparable store net sales. The increase in comparable net sales was due primarily to increased footwear and equipment sales. During the thirteen weeks ended November 1, 1997, the Company opened nine Hibbett Sports stores and closed one Hibbett Sports store and one Sports Addition store. New stores and stores not in the comparable store net sales calculation accounted for $5.8 million of the increase in net sales and increases in comparable store net sales contributed $1.4 million. Comparable store net sales data for a period reflect stores open throughout that period and the corresponding period of the prior fiscal year. Comparable store net sales do not include sales by the Company's four larger format Sports & Co. superstores or the Company's wholly-owned subsidiary, Hibbett Team Sales, Inc. Gross profit. Cost of goods sold includes the cost of inventory, occupancy costs for stores and occupancy and operating costs for the distribution center. Gross profit was $8.5 million, or 30.5% of net sales, in the thirteen weeks ended November 1, 1997, as compared to $6.4 million, or 31.1% of net sales, in the same period of the prior fiscal year. The decrease in product margin as a percentage of net sales in the thirteen weeks ended November 1, 1997 was due primarily to additional markdowns in the current year period related to licensed apparel categories. Store operating, selling and administrative expenses. Store operating, selling and administrative expenses were $5.7 million, or 20.6% of net sales, for the thirteen weeks ended November 1, 1997, as compared to $4.4 million, or 21.4% of net sales, for the comparable period a year ago. The decrease in store operating, selling and administrative expenses as a percentage of net sales in the thirteen weeks ended November 1, 1997 is primarily attributable to improved leveraging of these costs over higher sales. Depreciation and amortization. Depreciation and amortization as a percentage of net sales decreased to 2.0% in the thirteen weeks ended November 1, 1997, from 2.3% for the comparable period in the prior year due to the increase in net sales. Interest expense (income), net. The $786,000 decrease in interest expense for the thirteen weeks ended November 1, 1997 compared to the prior year period is primarily the result of the repayment of long-term debt from the proceeds of the initial public offering in October 1996. Extraordinary item, net. The $1,093,000 extraordinary item in the prior year period was the result of the early extinguishment of debt with the proceeds of the initial public offering. This item is shown net of the applicable income tax benefit of $677,000. THIRTY-NINE WEEKS ENDED NOVEMBER 1, 1997 COMPARED TO THIRTY-NINE WEEKS ENDED NOVEMBER 2, 1996 Net sales. Net sales increased $20.7 million, or 34.7%, to $80.4 million for the thirty-nine weeks ended November 1, 1997, from $59.6 million for the comparable period in the prior year. This increase is attributed to the opening of twenty-eight Hibbett Sports stores and one Sports Addition store in the last 52 week period ended November 1, 1997, and an 8.5% increase in comparable store net sales. The increase in comparable net sales was due primarily to increased footwear and equipment sales as well as improved inventory processing at the distribution center. During the thirty-nine weeks ended November 1, 1997, the Company opened twenty-five Hibbett Sports stores and one Sports Addition store. New stores and stores not in the comparable store net sales calculation accounted for $16.9 million of the increase in net sales and increases in comparable store net sales contributed $3.8 million. Comparable store net sales data for a period reflect stores open throughout that period and the corresponding period of the prior fiscal year. Comparable store net sales do not include sales by the Company's four larger format Sports & Co. superstores or the Company's wholly-owned subsidiary, Hibbett Team Sales, Inc. Gross profit. Cost of goods sold includes the cost of inventory, occupancy costs for stores and occupancy and operating costs for the distribution center. Gross profit was $24.4 million, or 30.3% of net sales, in the thirty-nine weeks 8 ended November 1, 1997, as compared to $18.2 million, or 30.5% of net sales, in the same period of the prior fiscal year. A slight decline in product margin was primarily offset by improved leveraging of warehouse and distribution costs in the current year period. Store operating, selling and administrative expenses. Store operating, selling and administrative expenses were $16.6 million, or 20.7% of net sales, for the thirty-nine weeks ended November 1, 1997. Store operating, selling and administrative expenses for the thirty-nine weeks ended November 2, 1996 include a net gain on the disposal of assets which primarily relates to the $513,000 pre-tax gain on the sale of the Company's former headquarters and distribution facility. The net gain was substantially offset by a one-time pre-tax compensation expense of approximately $462,000 related to stock options issued on August 1, 1996. Excluding these items, store operating, selling and administrative expenses were $12.2 million, or 20.5% of net sales for the thirty-nine weeks ended November 2, 1996. The increase in store operating, selling and administrative expenses as a percentage of net sales in the thirty- nine weeks ended November 1, 1997 is primarily attributable to costs associated with the opening of twenty-six new stores in the current year period as compared to nineteen stores in the prior year period. Depreciation and amortization. Depreciation and amortization as a percentage of net sales decreased slightly to 2.0% in the thirty-nine weeks ended November 1, 1997, from 2.2% for the comparable period in the prior year due to the increase in net sales. Interest expense (income), net. The $2.6 million net decrease in interest expense for the thirty-nine weeks ended November 1, 1997 compared to the prior year period is primarily the result of the repayment of long-term debt from the proceeds of the initial public offering in October 1996. Extraordinary item, net. The $1,093,000 extraordinary item in the prior year period was the result of the early extinguishment of debt with the proceeds of the initial public offering. This item is shown net of the applicable income tax benefit of $677,000. LIQUIDITY AND CAPITAL RESOURCES The Company's capital requirements relate primarily to new store openings and working capital requirements. The Company's working capital needs are somewhat seasonal in nature and typically reach their peak near the end of the third and the beginning of the fourth quarter of its fiscal year. Historically, the Company has funded its cash requirements primarily through cash flows from operations and borrowings under its revolving loan facilities. Net cash provided by (used in) operating activities has historically been driven by net income levels combined with fluctuations in inventory and accounts payable balances. The Company has continued to increase inventory levels in the thirty-nine weeks ended November 1, 1997 as the number of new stores has increased. The Company has financed this increase through increased net income and accounts payable balances. Net cash used in operating activities was $1.7 million for the thirty-nine week period ending November 1, 1997 as compared to net cash used in operating activities of $6.5 million for the thirty-nine week period ending November 2, 1996. With respect to cash flows from investing activities, the $3.3 million of capital expenditures in the thirty-nine week period ended November 1, 1997 primarily related to the opening of twenty-six new stores, various store remodels, and headquarters and distribution center-related capital expenditures. The higher capital expenditures in the prior year period resulted primarily from the opening of the fourth larger format Sports & Co. superstore in September 1996. During the first quarter of the prior year, the Company completed the sale-leaseback of its new headquarters and distribution center and the sale of the former headquarters and warehouse facilities for combined proceeds of $5.6 million and used the proceeds to repay $4.3 million of long-term debt then outstanding. Net cash provided by financing activities of $5.2 million for the thirty- nine week period ending November 1, 1997 was the result of (1) net proceeds from a secondary public stock offering, and (2) proceeds from the exercise of stock options. Upon the exercise of the above referenced stock options, the proceeds and the related accrued compensation expense were credited to paid-in capital. 9 The Company estimates capital expenditures in fiscal 1998 to be approximately $3.9 million which includes resources budgeted to (i) fund the opening of approximately 32 Hibbett Sports stores, (ii) remodel selected existing stores and (iii) fund headquarters and distribution center-related capital expenditures. In October 1996, the Company established an unsecured $20 million Revolving Credit Facility (the "Facility") provided by AmSouth Bank of Alabama. Borrowings under the Facility bear interest at the Company's option either at a base rate, a quoted cost of funds rate, or a LIBOR based rate. As of November 1, 1997, there was no outstanding balance under the Facility which expires October 31, 1999. Based on its current operating and store opening plans, the Company believes that it can fund its cash needs for the foreseeable future through borrowings under the Revolving Credit Facility and cash generated from operations. NEW ACCOUNTING PRONOUNCEMENTS In February 1997, the Financial Accounting Standards Board ("FASB") issued SFAS No. 128, Earnings Per Share. SFAS No. 128 will supersede APB No.15 effective for financial statements for periods ending after December 15, 1997. Under SFAS No. 128, the Company's basic earnings per share for the thirteen weeks ended November 1, 1997 and November 2, 1996 would have been $0.22 and $(0.14), respectively, and for the thirty-nine weeks ended November 1, 1997 and November 2, 1996 basic earnings per share would have been $0.61 and $0.05, respectively. In June 1997, the FASB issued SFAS No. 130, Reporting Comprehensive Income, which establishes standards for reporting and display of "Comprehensive Income" which is the total of net income and all other non-owner changes in stockholders' equity and its components. The Company will adopt the standard in fiscal 1999. In June 1997, the FASB issued Statement No. 131, Disclosures about Segments of an Enterprise and Related Information. SFAS No. 131, which supersedes SFAS Nos. 14, 18, 24 and 30, establishes new standards for segment reporting, using the "management approach," in which reportable segments are based on the same criteria on which management disaggregates a business for making operating decisions and assessing performance. The Company is in the process of evaluating SFAS No. 131 and its impact and will adopt the standard in fiscal 1999. SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS The statements contained in this report that are not purely historical or which might be considered an opinion or projection concerning the Company or its business, whether express or implied, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may include statements regarding the Company's expectations, intentions, plans or strategies regarding the future. All forward-looking statements included in this document are based upon information available to the Company on the date hereof, and the Company assumes no obligation to update any such forward-looking statements. It is important to note that the Company's actual results could differ materially from those described or implied in such forward-looking statements because of, among other factors, the ability of the Company to execute its expansion plans, a shift in demand for the merchandise offered by the Company, the Company's ability to obtain brand name merchandise at competitive prices, the effect of regional or national economic conditions and the effect of competitive pressures from other retailers. In addition, the reader should consider the risk factors described from time to time in the Company's other documents and reports, including the factors described under "Risk Factors" in the Company's Registration Statement on Form S-1, filed with the Securities and Exchange Commission on October 20, 1997, as amended, as well as the Company's reports on Forms 10-Q and 10-K. PART II OTHER INFORMATION ITEM 1: Legal Proceedings The Company is a party to various legal proceedings incidental to its business. In the opinion of management, after consultation with legal counsel, the ultimate liability, if any, with respect to those proceedings is not presently expected to materially affect the financial position or results of operations of the Company. 10 ITEM 2: Changes in Securities For information related to the secondary public offering of stock, see Note 3 of Notes to the Condensed Consolidated Financial Statements. ITEM 3: Defaults Upon Senior Securities None ITEM 4: Submission of Matters to Vote of Security-Holders None ITEM 5: Other Information None ITEM 6: Exhibits and Reports on Form 8-K (A) Exhibits Exhibit # Description --------- ----------- 11 Computation of Earnings per common share 27 Financial Data Schedule (for SEC use only) (B) Reports on Form 8-K None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants has duly caused this report to be signed on its behalf by the undersigned duly authorized. HIBBETT SPORTING GOODS, INC. Date: By: /s/ Susan H. Fitzgibbon ---------------------------- ------------------------- Susan H. Fitzgibbon Vice President and Chief Financial Officer 11 EX-11 2 COMPUTATION OF EARNINGS PER COMMON SHARE EXHIBIT 11 HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES STATEMENT OF COMPUTATION OF EARNINGS PER SHARE (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THIRTEEN WEEKS ENDED THIRTY-NINE WEEKS ENDED ----------------------------------- ---------------------------------- NOVEMBER 1, 1997 NOVEMBER 2, 1996 NOVEMBER 1, 1997 NOVEMBER 2, 1996 ---------------- ---------------- ---------------- ---------------- (Unaudited) (Unaudited) Income before extraordinary item $ 1,350 $ 464 $ 3,760 $ 1,290 Extraordinary item, net (1) - (1,093) - (1,093) --------- --------- --------- --------- Net income (loss) $ 1,350 $ (629) $ 3,760 $ 197 ========= ========= ========= ========= Weighted average number of common and common equivalent shares outstanding: Weighted average shares, excluding the effect of stock options 6,214,637 4,405,689 6,172,057 4,024,737 Effect of stock options (2) 151,783 143,413 138,247 143,413 --------- --------- --------- --------- 6,366,420 4,549,102 6,310,304 4,168,150 ========= ========= ========= ========= Earnings per common share: Income before extraordinary item $ 0.21 $ 0.10 $ 0.60 $ 0.31 Extraordinary item, net (1) - (0.24) - (0.26) --------- --------- --------- --------- Net income (loss) $ 0.21 $ (0.14) $ 0.60 $ 0.05 ========= ========= ========= ========= - ------------------------------- (1) During the third quarter ended November 2, 1996 the Company completed its initial public offering with net proceeds of $32,868,000. In connection therewith, a substantial portion of the Company's long-term debt was repaid resulting in a loss of $1,093,000 (net of the applicable tax benefit of $677,000). The loss was classified as an extraordinary item. (2) Stock options have been included in the above computation utilizing the treasury stock method.
EX-27 3 FINANCIAL DATA SCHEDULE
5 This schedule contains summary information extracted from the financial statements of Hibbett Sporting Goods, Inc. for the year to date period ended November 1, 1997, and is qualified in its entirety by reference to such financial statements. 1,000 9-MOS JAN-31-1998 FEB-2-1997 NOV-1-1997 2,498 0 2,228 134 41,307 47,549 21,749 10,270 59,414 23,496 0 0 0 64 35,854 59,414 80,355 80,355 55,987 55,987 18,283 0 (5) 6,090 2,330 3,760 0 0 0 3,760 0.60 0.60
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