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 August 16, 2016 by Dick's Sporting Goods, Inc. furnished herewith |
DICK'S SPORTING GOODS, INC. | ||
Date: August 16, 2016 | By: | /s/ ANDRÉ J. HAWAUX |
Name: | André J. Hawaux | |
Title: | Executive Vice President – Chief Operating Officer |
Exhibit No. | Description | |
99.1 | Press Release dated August 16, 2016 by Dick's Sporting Goods, Inc. furnished herewith |
FOR IMMEDIATE RELEASE |
• | Consolidated earnings per diluted share totaled $0.82 during the second quarter of 2016, exceeding guidance of $0.62 to 0.72 |
• | Consolidated same store sales for the second quarter increased 2.8% |
• | Company raises its full year 2016 earnings per diluted share guidance to $2.90 to 3.05 |
• | Company repurchased $57 million of common stock and also declared a $0.15125 per share quarterly dividend |
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 in the range of $2.90 to 3.05, excluding costs the Company expects to incur to convert former The Sports Authority ("TSA") stores to DICK'S Sporting Goods stores. These costs will be known once the Company determines which TSA store leases it will retain or reject. 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 increase approximately 2 to 3%, compared to a 0.2% decrease in fiscal 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 | Third Quarter 2016 |
• | Based on an estimated 111 million diluted shares outstanding, the Company currently anticipates reporting consolidated earnings per diluted share in the range of $0.39 to 0.42 in the third quarter of 2016, excluding costs the Company expects to incur to convert former TSA stores to DICK'S Sporting Goods stores. These costs will be known once the Company determines which TSA store leases it will retain or reject. This is compared to consolidated earnings per diluted share of $0.41 in the third quarter of 2015. On a non-GAAP basis, the Company reported consolidated earnings per diluted share of $0.45, excluding a litigation settlement charge, for the 13 weeks ended October 31, 2015. |
• | Consolidated same store sales are currently expected to increase approximately 2 to 3% in the third quarter of 2016, as compared to a 0.4% increase in the third quarter of 2015. |
• | The Company expects to open approximately 25 new DICK'S Sporting Goods stores and relocate four DICK'S Sporting Goods stores in the third quarter of 2016. The Company also expects to open approximately seven new Field & Stream stores and two new Golf Galaxy stores in the third quarter of 2016, largely adjacent to new or relocated DICK'S Sporting Goods stores. |
v | Capital Expenditures |
• | In 2016, the Company anticipates capital expenditures to be approximately $275 million on a net basis and approximately $450 million on a gross basis. In 2015, capital expenditures were $204 million on a net basis and $370 million on a gross basis. |
13 Weeks Ended | ||||||||||||||
July 30, 2016 | % of Sales(1) | August 1, 2015 | % of Sales(1) | |||||||||||
Net sales | $ | 1,967,857 | 100.00 | % | $ | 1,822,979 | 100.00 | % | ||||||
Cost of goods sold, including occupancy and distribution costs | 1,370,479 | 69.64 | 1,269,421 | 69.63 | ||||||||||
GROSS PROFIT | 597,378 | 30.36 | 553,558 | 30.37 | ||||||||||
Selling, general and administrative expenses | 441,721 | 22.45 | 395,935 | 21.72 | ||||||||||
Pre-opening expenses | 8,487 | 0.43 | 9,216 | 0.51 | ||||||||||
INCOME FROM OPERATIONS | 147,170 | 7.48 | 148,407 | 8.14 | ||||||||||
Interest expense | 1,618 | 0.08 | 840 | 0.05 | ||||||||||
Other (income) expense | (1,930 | ) | (0.10 | ) | 153 | 0.01 | ||||||||
INCOME BEFORE INCOME TAXES | 147,482 | 7.49 | 147,414 | 8.09 | ||||||||||
Provision for income taxes | 56,065 | 2.85 | 56,575 | 3.10 | ||||||||||
NET INCOME | $ | 91,417 | 4.65 | % | $ | 90,839 | 4.98 | % | ||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||
Basic | $ | 0.82 | $ | 0.78 | ||||||||||
Diluted | $ | 0.82 | $ | 0.77 | ||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||
Basic | 111,272 | 116,281 | ||||||||||||
Diluted | 112,118 | 117,805 | ||||||||||||
Cash dividend declared per share | $ | 0.15125 | $ | 0.13750 | ||||||||||
(1) Column does not add due to rounding | ||||||||||||||
26 Weeks Ended | ||||||||||||||
July 30, 2016 | % of Sales | August 1, 2015 | % of Sales(1) | |||||||||||
Net sales | $ | 3,628,200 | 100.00 | % | $ | 3,388,287 | 100.00 | % | ||||||
Cost of goods sold, including occupancy and distribution costs | 2,535,025 | 69.87 | 2,365,741 | 69.82 | ||||||||||
GROSS PROFIT | 1,093,175 | 30.13 | 1,022,546 | 30.18 | ||||||||||
Selling, general and administrative expenses | 840,289 | 23.16 | 756,671 | 22.33 | ||||||||||
Pre-opening expenses | 15,006 | 0.41 | 15,557 | 0.46 | ||||||||||
INCOME FROM OPERATIONS | 237,880 | 6.56 | 250,318 | 7.39 | ||||||||||
Interest expense | 2,749 | 0.08 | 1,474 | 0.04 | ||||||||||
Other income | (3,997 | ) | (0.11 | ) | (1,997 | ) | (0.06 | ) | ||||||
INCOME BEFORE INCOME TAXES | 239,128 | 6.59 | 250,841 | 7.40 | ||||||||||
Provision for income taxes | 90,834 | 2.50 | 96,657 | 2.85 | ||||||||||
NET INCOME | $ | 148,294 | 4.09 | % | $ | 154,184 | 4.55 | % | ||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||
Basic | $ | 1.33 | $ | 1.32 | ||||||||||
Diluted | $ | 1.32 | $ | 1.30 | ||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||
Basic | 111,688 | 116,662 | ||||||||||||
Diluted | 112,697 | 118,356 | ||||||||||||
Cash dividends declared per share | $ | 0.3025 | $ | 0.2750 | ||||||||||
(1) Column does not add due to rounding |
July 30, 2016 | August 1, 2015 | January 30, 2016 | ||||||||||
ASSETS | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 112,325 | $ | 123,220 | $ | 118,936 | ||||||
Accounts receivable, net | 144,458 | 106,753 | 61,395 | |||||||||
Income taxes receivable | 2,187 | 4,652 | 5,432 | |||||||||
Inventories, net | 1,715,530 | 1,615,722 | 1,527,187 | |||||||||
Prepaid expenses and other current assets | 110,269 | 99,882 | 99,740 | |||||||||
Total current assets | 2,084,769 | 1,950,229 | 1,812,690 | |||||||||
Property and equipment, net | 1,475,797 | 1,297,302 | 1,347,885 | |||||||||
Intangible assets, net | 130,062 | 108,240 | 109,440 | |||||||||
Goodwill | 200,594 | 200,594 | 200,594 | |||||||||
Other assets: | ||||||||||||
Deferred income taxes | 4,805 | 10,273 | 6,165 | |||||||||
Other | 91,639 | 72,453 | 82,562 | |||||||||
Total other assets | 96,444 | 82,726 | 88,727 | |||||||||
TOTAL ASSETS | $ | 3,987,666 | $ | 3,639,091 | $ | 3,559,336 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Accounts payable | $ | 790,217 | $ | 783,722 | $ | 677,864 | ||||||
Accrued expenses | 359,607 | 336,597 | 289,001 | |||||||||
Deferred revenue and other liabilities | 153,926 | 142,083 | 184,386 | |||||||||
Income taxes payable | 11,249 | 19,131 | 39,835 | |||||||||
Current portion of other long-term debt and leasing obligations | 612 | 560 | 589 | |||||||||
Total current liabilities | 1,315,611 | 1,282,093 | 1,191,675 | |||||||||
LONG-TERM LIABILITIES: | ||||||||||||
Revolving credit borrowings | 152,000 | — | — | |||||||||
Other long-term debt and leasing obligations | 5,013 | 5,627 | 5,324 | |||||||||
Deferred income taxes | 14,486 | — | 6,454 | |||||||||
Deferred revenue and other liabilities | 670,956 | 517,873 | 566,696 | |||||||||
Total long-term liabilities | 842,455 | 523,500 | 578,474 | |||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
STOCKHOLDERS' EQUITY: | ||||||||||||
Common stock | 857 | 914 | 869 | |||||||||
Class B common stock | 249 | 249 | 249 | |||||||||
Additional paid-in capital | 1,097,205 | 1,045,084 | 1,063,705 | |||||||||
Retained earnings | 1,851,064 | 1,592,803 | 1,737,214 | |||||||||
Accumulated other comprehensive loss | (125 | ) | (109 | ) | (179 | ) | ||||||
Treasury stock, at cost | (1,119,650 | ) | (805,443 | ) | (1,012,671 | ) | ||||||
Total stockholders' equity | 1,829,600 | 1,833,498 | 1,789,187 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 3,987,666 | $ | 3,639,091 | $ | 3,559,336 | ||||||
26 Weeks Ended | ||||||||
July 30, 2016 | August 1, 2015 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 148,294 | $ | 154,184 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization | 96,531 | 90,596 | ||||||
Deferred income taxes | 9,392 | (1,319 | ) | |||||
Stock-based compensation | 16,593 | 14,200 | ||||||
Excess tax benefit from exercise of stock options | (7,698 | ) | (5,842 | ) | ||||
Other non-cash items | 361 | 265 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (40,765 | ) | (12,659 | ) | ||||
Inventories | (188,343 | ) | (224,955 | ) | ||||
Prepaid expenses and other assets | (9,162 | ) | (7,977 | ) | ||||
Accounts payable | 137,362 | 147,888 | ||||||
Accrued expenses | 33,261 | 9,638 | ||||||
Income taxes payable / receivable | (17,781 | ) | (13,690 | ) | ||||
Deferred construction allowances | 68,311 | 75,082 | ||||||
Deferred revenue and other liabilities | (23,427 | ) | (22,372 | ) | ||||
Net cash provided by operating activities | 222,929 | 203,039 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (208,449 | ) | (154,785 | ) | ||||
Deposits and purchases of other assets | (23,412 | ) | (406 | ) | ||||
Net cash used in investing activities | (231,861 | ) | (155,191 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Revolving credit borrowings | 1,183,000 | 465,600 | ||||||
Revolving credit repayments | (1,031,000 | ) | (465,600 | ) | ||||
Payments on other long-term debt and leasing obligations | (288 | ) | (263 | ) | ||||
Construction allowance receipts | — | — | ||||||
Proceeds from exercise of stock options | 15,978 | 17,870 | ||||||
Excess tax benefit from exercise of stock options | 7,698 | 5,843 | ||||||
Minimum tax withholding requirements | (6,619 | ) | (7,619 | ) | ||||
Cash paid for treasury stock | (107,003 | ) | (150,000 | ) | ||||
Cash dividends paid to stockholders | (34,490 | ) | (33,425 | ) | ||||
(Decrease) increase in bank overdraft | (25,009 | ) | 21,323 | |||||
Net cash provided by (used in) financing activities | 2,267 | (146,271 | ) | |||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 54 | (36 | ) | |||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (6,611 | ) | (98,459 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 118,936 | 221,679 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 112,325 | $ | 123,220 |
Store | Market | Concept | |||
Gainesville, FL | Gainesville | DICK'S Sporting Goods | |||
Quincy, IL | Quincy | DICK'S Sporting Goods | |||
Union Gap, WA | Yakima | DICK'S Sporting Goods | |||
Hayward, CA | San Francisco | DICK'S Sporting Goods | |||
Valley Stream, NY | Long Island | DICK'S Sporting Goods |
Fiscal 2016 | Fiscal 2015 | |||||||||||||||||
DICK'S Sporting Goods (1) | Specialty Store Concepts (1) (2) | Total | DICK'S Sporting Goods (1) | Specialty Store Concepts (1) (2) | Total | |||||||||||||
Beginning stores | 644 | 97 | 741 | 603 | 91 | 694 | ||||||||||||
Q1 New stores | 3 | 2 | 5 | 9 | 1 | 10 | ||||||||||||
Q2 New stores | 5 | — | 5 | 7 | 1 | 8 | ||||||||||||
Ending stores | 652 | 99 | 751 | 619 | 93 | 712 | ||||||||||||
Closed stores | 3 | 1 | 4 | — | 3 | 3 | ||||||||||||
Ending stores | 649 | 98 | 747 | 619 | 90 | 709 | ||||||||||||
Relocated stores | 5 | — | 5 | 1 | 1 | 2 | ||||||||||||
DICK'S Sporting Goods (1) | Specialty Store Concepts (1) (2) | Total (3) | |||||||
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 | ||||||
Q1 2016 | 34.5 | 2.4 | 37.0 | ||||||
Q2 2016 | 34.6 | 2.4 | 37.1 |
(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 July 30, 2016, the Company operated five combo stores. |
(2) | Includes the Company's Golf Galaxy, Field & Stream, and other specialty concept stores. |
(3) | Column may not add due to rounding. |
Fiscal 2015 | ||||||||||||
13 Weeks Ended October 31, 2015 | ||||||||||||
As Reported | Litigation Settlement Charge | Non-GAAP Total | ||||||||||
Net sales | $ | 1,642,627 | $ | — | $ | 1,642,627 | ||||||
Cost of goods sold, including occupancy and distribution costs | 1,154,251 | — | 1,154,251 | |||||||||
GROSS PROFIT | 488,376 | — | 488,376 | |||||||||
Selling, general and administrative expenses | 395,015 | (7,884 | ) | 387,131 | ||||||||
Pre-opening expenses | 16,280 | — | 16,280 | |||||||||
INCOME FROM OPERATIONS | 77,081 | 7,884 | 84,965 | |||||||||
Interest expense | 1,076 | — | 1,076 | |||||||||
Other expense | 1,185 | — | 1,185 | |||||||||
INCOME BEFORE INCOME TAXES | 74,820 | 7,884 | 82,704 | |||||||||
Provision for income taxes | 27,605 | 3,154 | 30,759 | |||||||||
NET INCOME | $ | 47,215 | $ | 4,730 | $ | 51,945 | ||||||
EARNINGS PER COMMON SHARE: | ||||||||||||
Basic | $ | 0.41 | $ | 0.45 | ||||||||
Diluted | $ | 0.41 | $ | 0.45 | ||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||
Basic | 114,978 | 114,978 | ||||||||||
Diluted | 116,506 | 116,506 |
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 |
13 Weeks Ended | ||||||||
July 30, 2016 | August 1, 2015 | |||||||
(dollars in thousands) | ||||||||
Net income | $ | 91,417 | $ | 90,839 | ||||
Provision for income taxes | 56,065 | 56,575 | ||||||
Interest expense | 1,618 | 840 | ||||||
Depreciation and amortization | 48,541 | 48,020 | ||||||
EBITDA | $ | 197,641 | $ | 196,274 | ||||
% increase in EBITDA | 1 | % |
26 Weeks Ended | ||||||||
July 30, 2016 | August 1, 2015 | |||||||
(dollars in thousands) | ||||||||
Net income | $ | 148,294 | $ | 154,184 | ||||
Provision for income taxes | 90,834 | 96,657 | ||||||
Interest expense | 2,749 | 1,474 | ||||||
Depreciation and amortization | 96,531 | 90,596 | ||||||
EBITDA | $ | 338,408 | $ | 342,911 | ||||
% decrease in EBITDA | (1 | )% |
26 Weeks Ended | ||||||||
July 30, 2016 | August 1, 2015 | |||||||
(dollars in thousands) | ||||||||
Gross capital expenditures | $ | (208,449 | ) | $ | (154,785 | ) | ||
Proceeds from sale-leaseback transactions | — | — | ||||||
Deferred construction allowances | 68,311 | 75,082 | ||||||
Construction allowance receipts | — | — | ||||||
Net capital expenditures | $ | (140,138 | ) | $ | (79,703 | ) |
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