001-31463 | 16-1241537 | |
(Commission File Number) | (IRS Employer Identification No.) |
345 Court Street Coraopolis, Pennsylvania | 15108 | |
(Address of Principal Executive Offices) | (Zip Code) |
Exhibit No. | Description | |
99.1 | Press Release dated March 8, 2016 by Dick's Sporting Goods, Inc. furnished herewith |
DICK'S SPORTING GOODS, INC. | |||
Date: March 8, 2016 | By: | /s/ TERI L. LIST-STOLL | |
Name: | Teri L. List-Stoll | ||
Title: | Executive Vice President – Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release dated March 8, 2016 by Dick's Sporting Goods, Inc. furnished herewith |
FOR IMMEDIATE RELEASE | ![]() |
• | Consolidated earnings per diluted share totaled $1.13 for the fourth quarter of 2015, within guidance of $1.10 to 1.25 |
• | Consolidated same store sales decreased 2.5% for the fourth quarter, impacted by unseasonably warm weather conditions |
• | Company repurchased $57 million of common stock and increased its dividend by 10 percent |
• | Company to make strategic investments of between $50 to 55 million in 2016 to enhance its shopping experience, build its brand equity and transition its eCommerce business |
v | Full Year 2016 |
• | Based on an estimated 111 to 112 million diluted shares outstanding, the Company currently anticipates reporting consolidated earnings per diluted share of approximately $2.85 to 3.00. The Company's consolidated earnings per diluted share guidance includes the expectation of approximately $100 to 200 million of share repurchases in 2016. The Company reported consolidated earnings per diluted share of $2.83 for the 52 weeks ended January 30, 2016. On a non-GAAP basis, the Company reported consolidated earnings per diluted share of $2.87, excluding a litigation settlement charge, for the 52 weeks ended January 30, 2016. |
• | Consolidated same store sales are currently expected to be approximately flat to an increase of 2%, compared to a decrease of 0.2% in 2015. |
• | The Company expects to open approximately 36 new DICK'S Sporting Goods stores and relocate approximately nine DICK'S Sporting Goods stores in 2016. The Company also expects to open approximately nine new Field & Stream stores and two new Golf Galaxy stores in 2016, largely adjacent to new or relocated DICK'S Sporting Goods stores. |
v | First Quarter 2016 |
• | Based on an estimated 113 million diluted shares outstanding, the Company currently anticipates reporting consolidated earnings per diluted share of approximately $0.48 to 0.50 in the first quarter of 2016, compared to consolidated earnings per diluted share of $0.53 in the first quarter of 2015. |
• | Consolidated same store sales are currently expected to be approximately flat to an increase of 1% in the first quarter of 2016, compared to a 1.0% increase in the first quarter of 2015. |
• | The Company expects to open approximately three new DICK'S Sporting Goods stores, relocate three DICK'S Sporting Goods stores, and open two new Field & Stream stores in the first quarter of 2016. |
v | Capital Expenditures |
• | In 2016, the Company anticipates capital expenditures to be approximately $230 million on a net basis and approximately $420 million on a gross basis. In 2015, capital expenditures were approximately $204 million on a net basis and approximately $370 million on a gross basis. |
13 Weeks Ended | ||||||||||||||
January 30, 2016 | % of Sales | January 31, 2015 | % of Sales | |||||||||||
Net sales | $ | 2,240,051 | 100.00 | % | $ | 2,160,006 | 100.00 | % | ||||||
Cost of goods sold, including occupancy and distribution costs | 1,568,085 | 70.00 | 1,468,750 | 68.00 | ||||||||||
GROSS PROFIT | 671,966 | 30.00 | 691,256 | 32.00 | ||||||||||
Selling, general and administrative expenses | 461,389 | 20.60 | 438,738 | 20.31 | ||||||||||
Pre-opening expenses | 2,783 | 0.12 | 2,038 | 0.09 | ||||||||||
INCOME FROM OPERATIONS | 207,794 | 9.28 | 250,480 | 11.60 | ||||||||||
Interest expense | 1,462 | 0.07 | 985 | 0.05 | ||||||||||
Other expense (income) | 1,116 | 0.05 | (308 | ) | (0.01 | ) | ||||||||
INCOME BEFORE INCOME TAXES | 205,216 | 9.16 | 249,803 | 11.56 | ||||||||||
Provision for income taxes | 76,223 | 3.40 | 94,267 | 4.36 | ||||||||||
NET INCOME | $ | 128,993 | 5.76 | % | $ | 155,536 | 7.20 | % | ||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||
Basic | $ | 1.15 | $ | 1.32 | ||||||||||
Diluted | $ | 1.13 | $ | 1.30 | ||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||
Basic | 112,618 | 117,745 | ||||||||||||
Diluted | 113,960 | 119,749 | ||||||||||||
Cash dividend declared per share | $ | 0.1375 | $ | 0.1250 | ||||||||||
52 Weeks Ended | ||||||||||||||
January 30, 2016 | % of Sales (1) | January 31, 2015 | % of Sales | |||||||||||
Net sales | $ | 7,270,965 | 100.00 | % | $ | 6,814,479 | 100.00 | % | ||||||
Cost of goods sold, including occupancy and distribution costs | 5,088,078 | 69.98 | 4,727,813 | 69.38 | ||||||||||
GROSS PROFIT | 2,182,887 | 30.02 | 2,086,666 | 30.62 | ||||||||||
Selling, general and administrative expenses | 1,613,075 | 22.19 | 1,502,089 | 22.04 | ||||||||||
Pre-opening expenses | 34,620 | 0.48 | 30,518 | 0.45 | ||||||||||
INCOME FROM OPERATIONS | 535,192 | 7.36 | 554,059 | 8.13 | ||||||||||
Interest expense | 4,012 | 0.06 | 3,215 | 0.05 | ||||||||||
Other expense (income) | 305 | — | (5,170 | ) | (0.08 | ) | ||||||||
INCOME BEFORE INCOME TAXES | 530,875 | 7.30 | 556,014 | 8.16 | ||||||||||
Provision for income taxes | 200,484 | 2.76 | 211,816 | 3.11 | ||||||||||
NET INCOME | $ | 330,391 | 4.54 | % | $ | 344,198 | 5.05 | % | ||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||
Basic | $ | 2.87 | $ | 2.89 | ||||||||||
Diluted | $ | 2.83 | $ | 2.84 | ||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||
Basic | 115,230 | 119,244 | ||||||||||||
Diluted | 116,794 | 121,238 | ||||||||||||
Cash dividends declared per share | $ | 0.5500 | $ | 0.5000 | ||||||||||
(1) Column does not add due to rounding |
January 30, 2016 | January 31, 2015 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 118,936 | $ | 221,679 | ||||
Accounts receivable, net | 61,395 | 80,292 | ||||||
Income taxes receivable | 5,432 | 14,293 | ||||||
Inventories, net | 1,527,187 | 1,390,767 | ||||||
Prepaid expenses and other current assets | 99,740 | 91,767 | ||||||
Total current assets | 1,812,690 | 1,798,798 | ||||||
Property and equipment, net | 1,347,885 | 1,203,382 | ||||||
Intangible assets, net | 109,440 | 110,162 | ||||||
Goodwill | 200,594 | 200,594 | ||||||
Other assets: | ||||||||
Deferred income taxes | 6,165 | 8,954 | ||||||
Other | 82,562 | 69,814 | ||||||
Total other assets | 88,727 | 78,768 | ||||||
TOTAL ASSETS | $ | 3,559,336 | $ | 3,391,704 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 677,864 | $ | 614,511 | ||||
Accrued expenses | 289,001 | 283,828 | ||||||
Deferred revenue and other liabilities | 184,386 | 172,259 | ||||||
Income taxes payable | 39,835 | 47,698 | ||||||
Current portion of other long-term debt and leasing obligations | 589 | 537 | ||||||
Total current liabilities | 1,191,675 | 1,118,833 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Other long-term debt and leasing obligations | 5,324 | 5,913 | ||||||
Deferred income taxes | 6,454 | — | ||||||
Deferred revenue and other liabilities | 566,696 | 434,733 | ||||||
Total long-term liabilities | 578,474 | 440,646 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
STOCKHOLDERS' EQUITY: | ||||||||
Common stock | 869 | 932 | ||||||
Class B common stock | 249 | 249 | ||||||
Additional paid-in capital | 1,063,705 | 1,015,404 | ||||||
Retained earnings | 1,737,214 | 1,471,182 | ||||||
Accumulated other comprehensive loss | (179 | ) | (73 | ) | ||||
Treasury stock, at cost | (1,012,671 | ) | (655,469 | ) | ||||
Total stockholders' equity | 1,789,187 | 1,832,225 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 3,559,336 | $ | 3,391,704 | ||||
Fiscal Year Ended | ||||||||
January 30, 2016 | January 31, 2015 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 330,391 | $ | 344,198 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 193,594 | 179,431 | ||||||
Deferred income taxes | 9,243 | (6,259 | ) | |||||
Stock-based compensation | 29,288 | 26,275 | ||||||
Excess tax benefit from exercise of stock options | (6,825 | ) | (11,953 | ) | ||||
Gain on sale of asset | — | (14,428 | ) | |||||
Other non-cash items | 626 | 576 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (6,412 | ) | 1,797 | |||||
Inventories | (136,420 | ) | (158,702 | ) | ||||
Prepaid expenses and other assets | (21,266 | ) | (11,004 | ) | ||||
Accounts payable | 34,232 | 81,330 | ||||||
Accrued expenses | 5,190 | 16,158 | ||||||
Income taxes payable / receivable | 7,157 | 32,476 | ||||||
Deferred construction allowances | 165,616 | 101,630 | ||||||
Deferred revenue and other liabilities | 39,100 | 24,453 | ||||||
Net cash provided by operating activities | 643,514 | 605,978 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (370,028 | ) | (349,007 | ) | ||||
Proceeds from sale of other assets | — | 74,534 | ||||||
Deposits and purchases of other assets | (2,406 | ) | (30,547 | ) | ||||
Net cash used in investing activities | (372,434 | ) | (305,020 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Revolving credit borrowings | 1,338,100 | 1,401,800 | ||||||
Revolving credit repayments | (1,338,100 | ) | (1,401,800 | ) | ||||
Payments on other long-term debt and leasing obligations | (537 | ) | (925 | ) | ||||
Construction allowance receipts | — | — | ||||||
Proceeds from exercise of stock options | 20,617 | 26,121 | ||||||
Excess tax benefit from exercise of stock options | 6,826 | 12,204 | ||||||
Minimum tax withholding requirements | (7,753 | ) | (7,793 | ) | ||||
Cash paid for treasury stock | (357,276 | ) | (200,000 | ) | ||||
Cash dividends paid to stockholders | (64,715 | ) | (61,262 | ) | ||||
Increase (decrease) in bank overdraft | 29,121 | (29,258 | ) | |||||
Net cash used in financing activities | (373,717 | ) | (260,913 | ) | ||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (106 | ) | (97 | ) | ||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (102,743 | ) | 39,948 | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 221,679 | 181,731 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 118,936 | $ | 221,679 |
Store | Market | Concept | ||
Farmington, NM | Farmington | DICK'S Sporting Goods |
Fiscal 2015 | Fiscal 2014 | |||||||||||||||||
DICK'S Sporting Goods (1) | Specialty Store Concepts (1) (2) | Total | DICK'S Sporting Goods | Specialty Store Concepts (2) | Total | |||||||||||||
Beginning stores | 603 | 91 | 694 | 558 | 84 | 642 | ||||||||||||
Q1 New stores | 9 | 1 | 10 | 8 | — | 8 | ||||||||||||
Q2 New stores | 7 | 1 | 8 | 8 | 1 | 9 | ||||||||||||
Q3 New stores | 27 | 9 | 36 | 24 | 8 | 32 | ||||||||||||
Q4 New stores | 1 | — | 1 | 6 | — | 6 | ||||||||||||
Ending stores | 647 | 102 | 749 | 604 | 93 | 697 | ||||||||||||
Closed stores | 3 | 5 | 8 | 1 | 2 | 3 | ||||||||||||
Ending stores | 644 | 97 | 741 | 603 | 91 | 694 | ||||||||||||
Remodeled stores | 2 | — | 2 | 5 | — | 5 | ||||||||||||
Relocated stores | 7 | 1 | 8 | 5 | 2 | 7 | ||||||||||||
DICK'S Sporting Goods (1) | Specialty Store Concepts (1) (2) | Total | |||||||
Q1 2014 | 30.6 | 1.5 | 32.1 | ||||||
Q2 2014 | 30.9 | 1.6 | 32.5 | ||||||
Q3 2014 | 32.0 | 2.0 | 34.0 | ||||||
Q4 2014 | 32.3 | 1.9 | 34.2 | ||||||
Q1 2015 | 32.7 | 2.0 | 34.7 | ||||||
Q2 2015 | 33.1 | 2.0 | 35.1 | ||||||
Q3 2015 | 34.4 | 2.4 | 36.8 | ||||||
Q4 2015 | 34.4 | 2.3 | 36.7 |
(1) | In some markets we operate adjacent stores on the same property with a pass-through for customers. We refer to this format as a "combo store". Combo stores are reflected in both the DICK'S Sporting Goods and Specialty Store Concepts reconciliations. As of January 30, 2016, the Company operated four combo stores. |
(2) | Includes the Company's Golf Galaxy, Field & Stream and other specialty store concepts. |
Fiscal 2015 | |||||||||||
52 Weeks Ended January 30, 2016 | |||||||||||
As Reported | Litigation Settlement Charge | Non-GAAP Total | |||||||||
Net sales | $ | 7,270,965 | $ | — | $ | 7,270,965 | |||||
Cost of goods sold, including occupancy and distribution costs | 5,088,078 | — | 5,088,078 | ||||||||
GROSS PROFIT | 2,182,887 | — | 2,182,887 | ||||||||
Selling, general and administrative expenses | 1,613,075 | (7,884 | ) | 1,605,191 | |||||||
Pre-opening expenses | 34,620 | — | 34,620 | ||||||||
INCOME FROM OPERATIONS | 535,192 | 7,884 | 543,076 | ||||||||
Interest expense | 4,012 | — | 4,012 | ||||||||
Other expense | 305 | — | 305 | ||||||||
INCOME BEFORE INCOME TAXES | 530,875 | 7,884 | 538,759 | ||||||||
Provision for income taxes | 200,484 | 3,154 | 203,638 | ||||||||
NET INCOME | $ | 330,391 | $ | 4,730 | $ | 335,121 | |||||
EARNINGS PER COMMON SHARE: | |||||||||||
Basic | $ | 2.87 | $ | 2.91 | |||||||
Diluted | $ | 2.83 | $ | 2.87 | |||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||
Basic | 115,230 | 115,230 | |||||||||
Diluted | 116,794 | 116,794 |
Fiscal 2014 | |||||||||||||||
52 Weeks Ended January 31, 2015 | |||||||||||||||
As Reported | Gain on Sale of Asset | Golf Restructuring Charges | Non-GAAP Total | ||||||||||||
Net sales | $ | 6,814,479 | $ | — | $ | — | $ | 6,814,479 | |||||||
Cost of goods sold, including occupancy and distribution costs | 4,727,813 | — | (2,405 | ) | 4,725,408 | ||||||||||
GROSS PROFIT | 2,086,666 | — | 2,405 | 2,089,071 | |||||||||||
Selling, general and administrative expenses | 1,502,089 | 14,428 | (17,960 | ) | 1,498,557 | ||||||||||
Pre-opening expenses | 30,518 | — | — | 30,518 | |||||||||||
INCOME FROM OPERATIONS | 554,059 | (14,428 | ) | 20,365 | 559,996 | ||||||||||
Interest expense | 3,215 | — | — | 3,215 | |||||||||||
Other income | (5,170 | ) | — | — | (5,170 | ) | |||||||||
INCOME BEFORE INCOME TAXES | 556,014 | (14,428 | ) | 20,365 | 561,951 | ||||||||||
Provision for income taxes | 211,816 | (5,771 | ) | 8,146 | 214,191 | ||||||||||
NET INCOME | $ | 344,198 | $ | (8,657 | ) | $ | 12,219 | $ | 347,760 | ||||||
EARNINGS PER COMMON SHARE: | |||||||||||||||
Basic | $ | 2.89 | $ | 2.92 | |||||||||||
Diluted | $ | 2.84 | $ | 2.87 | |||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||
Basic | 119,244 | 119,244 | |||||||||||||
Diluted | 121,238 | 121,238 |
13 Weeks Ended | ||||||||
January 30, 2016 | January 31, 2015 | |||||||
(dollars in thousands) | ||||||||
Net income | $ | 128,993 | $ | 155,536 | ||||
Provision for income taxes | 76,223 | 94,267 | ||||||
Interest expense | 1,462 | 985 | ||||||
Depreciation and amortization | 56,911 | 48,431 | ||||||
EBITDA | $ | 263,589 | $ | 299,219 | ||||
% decrease in EBITDA | (12 | )% |
52 Weeks Ended | ||||||||
January 30, 2016 | January 31, 2015 | |||||||
(dollars in thousands) | ||||||||
Net income | $ | 330,391 | $ | 344,198 | ||||
Provision for income taxes | 200,484 | 211,816 | ||||||
Interest expense | 4,012 | 3,215 | ||||||
Depreciation and amortization | 193,594 | 179,431 | ||||||
EBITDA | $ | 728,481 | $ | 738,660 | ||||
Add: Litigation settlement charge | 7,884 | — | ||||||
Less: Gain on sale of asset | — | (14,428 | ) | |||||
Add: Golf restructuring charges | — | 6,043 | ||||||
Adjusted EBITDA, as defined | $ | 736,365 | $ | 730,275 | ||||
% increase in adjusted EBITDA | 1 | % |
Fiscal Year Ended | ||||||||
January 30, 2016 | January 31, 2015 | |||||||
(dollars in thousands) | ||||||||
Gross capital expenditures | $ | (370,028 | ) | $ | (349,007 | ) | ||
Proceeds from sale-leaseback transactions | — | — | ||||||
Deferred construction allowances | 165,616 | 101,630 | ||||||
Construction allowance receipts | — | — | ||||||
Net capital expenditures | $ | (204,412 | ) | $ | (247,377 | ) |
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