001-31463 | 16-1241537 | |
(Commission File Number) | (IRS Employer Identification No.) |
345 Court Street Coraopolis, Pennsylvania | 15108 | |
(Address of Principal Executive Offices) | (Zip Code) |
ITEM 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
ITEM 5.02. | DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS. |
ITEM 8.01. | OTHER EVENTS |
ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS |
Exhibit No. | Description | |
99.1 | Press Release dated May 16, 2017 by Dick's Sporting Goods, Inc. furnished herewith | |
99.2 | Press Release dated May 11, 2017 by Dick's Sporting Goods, Inc. filed herewith |
DICK'S SPORTING GOODS, INC. | ||
Date: May 16, 2017 | By: | /s/ LEE J. BELITSKY |
Name: | Lee J. Belitsky | |
Title: | Executive Vice President – Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release dated May 16, 2017 by Dick's Sporting Goods, Inc. furnished herewith | |
99.2 | Press Release dated May 11, 2017 by Dick's Sporting Goods, Inc. filed herewith |
FOR IMMEDIATE RELEASE | ![]() |
• | Company delivers first quarter 2017 earnings per diluted share of $0.52 and non-GAAP earnings per diluted share of $0.54 |
• | Consolidated same store sales for the first quarter increased 2.4% |
v | Second Quarter 2017 |
• | Based on an estimated 112 million diluted shares outstanding, the Company currently anticipates reporting earnings per diluted share in the range of $0.98 to 1.03 in the second quarter of 2017. This is compared to earnings per diluted share of $0.82 in the second quarter of 2016. |
• | The Company has conducted a corporate reorganization to streamline its operations and reduce expense. In the second quarter, the Company expects to record a pre-tax charge of approximately $7 million for severance and other employee-related costs associated with the elimination of positions, primarily at the Company's Store Support Center. |
• | On a non-GAAP basis, the Company currently anticipates reporting earnings per diluted share in the range of $1.02 to 1.07 in the second quarter of 2017, excluding severance and other employee-related costs. |
• | Consolidated same store sales are currently expected to increase approximately 2 to 3% in the second quarter of 2017, as compared to a 2.8% increase in the second quarter of 2016. |
• | The Company expects to open 13 new DICK'S Sporting Goods stores in the second quarter of 2017. These openings include former TSA stores that the Company plans to convert to DICK'S Sporting Goods stores. |
v | Full Year 2017 |
• | Based on an estimated 111 to 112 million diluted shares outstanding, the Company currently anticipates reporting earnings per diluted share in the range of $3.59 to 3.69, which includes approximately $0.05 per diluted share for the 53rd week. The Company's earnings per diluted share guidance includes the expectation of share repurchases to fully offset dilution in 2017. The Company reported earnings per diluted share of $2.56 for the 52 weeks ended January 28, 2017. |
• | The Company currently anticipates reporting non-GAAP earnings per diluted share in the range of $3.65 to 3.75. This excludes severance and other employee-related costs, as well as TSA conversion costs. The Company reported non-GAAP earnings per diluted share of $3.12 for the 52 weeks ended January 28, 2017. |
• | Consolidated same store sales are currently expected to increase approximately 1 to 3% on a 52 week to 52 week comparative basis, compared to an increase of 3.5% in 2016. |
• | The Company expects to open approximately 43 new DICK'S Sporting Goods stores and relocate approximately six DICK'S Sporting Goods stores in 2017. The Company also expects to open approximately eight new Golf Galaxy stores, relocate one Golf Galaxy store and open eight new Field & Stream stores adjacent to new or relocated DICK'S Sporting Goods stores. These openings include former TSA and Golfsmith stores that the Company plans to convert to DICK'S Sporting Goods and Golf Galaxy stores, respectively. |
v | Capital Expenditures |
• | In 2017, the Company anticipates capital expenditures to be approximately $350 million on a net basis and approximately $465 million on a gross basis. In 2016, capital expenditures were $242 million on a net basis and $422 million on a gross basis. |
13 Weeks Ended | ||||||||||||||
April 29, 2017 | % of Sales(1) | April 30, 2016 | % of Sales(1) | |||||||||||
Net sales | $ | 1,825,252 | 100.00 | % | $ | 1,660,343 | 100.00 | % | ||||||
Cost of goods sold, including occupancy and distribution costs | 1,283,387 | 70.31 | 1,164,546 | 70.14 | ||||||||||
GROSS PROFIT | 541,865 | 29.69 | 495,797 | 29.86 | ||||||||||
Selling, general and administrative expenses | 439,341 | 24.07 | 398,568 | 24.01 | ||||||||||
Pre-opening expenses | 12,456 | 0.68 | 6,518 | 0.39 | ||||||||||
INCOME FROM OPERATIONS | 90,068 | 4.93 | 90,711 | 5.46 | ||||||||||
Interest expense | 1,264 | 0.07 | 1,131 | 0.07 | ||||||||||
Other income | (2,879 | ) | (0.16 | ) | (2,067 | ) | (0.12 | ) | ||||||
INCOME BEFORE INCOME TAXES | 91,683 | 5.02 | 91,647 | 5.52 | ||||||||||
Provision for income taxes | 33,488 | 1.83 | 34,770 | 2.09 | ||||||||||
NET INCOME | $ | 58,195 | 3.19 | % | $ | 56,877 | 3.43 | % | ||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||
Basic | $ | 0.53 | $ | 0.51 | ||||||||||
Diluted | $ | 0.52 | $ | 0.50 | ||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||
Basic | 110,441 | 112,105 | ||||||||||||
Diluted | 111,406 | 113,276 | ||||||||||||
Cash dividend declared per share | $ | 0.17000 | $ | 0.15125 | ||||||||||
(1) Column does not add due to rounding. | ||||||||||||||
April 29, 2017 | April 30, 2016 | January 28, 2017 | ||||||||||
ASSETS | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 108,400 | $ | 92,493 | $ | 164,777 | ||||||
Accounts receivable, net | 85,918 | 111,973 | 75,199 | |||||||||
Income taxes receivable | 2,046 | 2,787 | 2,307 | |||||||||
Inventories, net | 1,916,508 | 1,742,948 | 1,638,632 | |||||||||
Prepaid expenses and other current assets | 141,744 | 120,477 | 114,763 | |||||||||
Total current assets | 2,254,616 | 2,070,678 | 1,995,678 | |||||||||
Property and equipment, net | 1,568,523 | 1,406,471 | 1,522,574 | |||||||||
Intangible assets, net | 139,447 | 109,053 | 140,835 | |||||||||
Goodwill | 245,059 | 200,594 | 245,059 | |||||||||
Other assets: | ||||||||||||
Deferred income taxes | 10,546 | 4,456 | 45,927 | |||||||||
Other | 114,533 | 87,115 | 108,223 | |||||||||
Total other assets | 125,079 | 91,571 | 154,150 | |||||||||
TOTAL ASSETS | $ | 4,332,724 | $ | 3,878,367 | $ | 4,058,296 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Accounts payable | $ | 930,291 | $ | 778,977 | $ | 755,537 | ||||||
Accrued expenses | 356,478 | 328,177 | 384,210 | |||||||||
Deferred revenue and other liabilities | 183,949 | 162,365 | 203,788 | |||||||||
Income taxes payable | 43,117 | 13,201 | 53,234 | |||||||||
Current portion of other long-term debt and leasing obligations | 648 | 590 | 646 | |||||||||
Total current liabilities | 1,514,483 | 1,283,310 | 1,397,415 | |||||||||
LONG-TERM LIABILITIES: | ||||||||||||
Revolving credit borrowings | 92,450 | 157,600 | — | |||||||||
Other long-term debt and leasing obligations | 4,520 | 5,180 | 4,679 | |||||||||
Deferred income taxes | 4,544 | 15,390 | — | |||||||||
Deferred revenue and other liabilities | 755,903 | 612,754 | 726,713 | |||||||||
Total long-term liabilities | 857,417 | 790,924 | 731,392 | |||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
STOCKHOLDERS' EQUITY: | ||||||||||||
Common stock | 858 | 870 | 856 | |||||||||
Class B common stock | 247 | 249 | 247 | |||||||||
Additional paid-in capital | 1,148,022 | 1,088,980 | 1,130,830 | |||||||||
Retained earnings | 1,993,426 | 1,776,782 | 1,956,066 | |||||||||
Accumulated other comprehensive loss | (159 | ) | (87 | ) | (132 | ) | ||||||
Treasury stock, at cost | (1,181,570 | ) | (1,062,661 | ) | (1,158,378 | ) | ||||||
Total stockholders' equity | 1,960,824 | 1,804,133 | 1,929,489 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 4,332,724 | $ | 3,878,367 | $ | 4,058,296 | ||||||
13 Weeks Ended | ||||||||
April 29, 2017 | April 30, 2016 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 58,195 | $ | 56,877 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization | 53,044 | 47,990 | ||||||
Deferred income taxes | 39,925 | 10,645 | ||||||
Stock-based compensation | 9,147 | 8,247 | ||||||
Other non-cash items | 180 | 181 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 1,993 | (19,514 | ) | |||||
Inventories | (277,876 | ) | (215,761 | ) | ||||
Prepaid expenses and other assets | (26,662 | ) | (20,012 | ) | ||||
Accounts payable | 209,201 | 145,651 | ||||||
Accrued expenses | (21,533 | ) | 10,838 | |||||
Income taxes payable / receivable | (9,856 | ) | (16,412 | ) | ||||
Deferred construction allowances | 25,117 | 16,202 | ||||||
Deferred revenue and other liabilities | (24,403 | ) | (17,393 | ) | ||||
Net cash provided by operating activities | 36,472 | 7,539 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (113,892 | ) | (88,834 | ) | ||||
Deposits and purchases of other assets | (2,344 | ) | (8 | ) | ||||
Net cash used in investing activities | (116,236 | ) | (88,842 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Revolving credit borrowings | 645,200 | 609,100 | ||||||
Revolving credit repayments | (552,750 | ) | (451,500 | ) | ||||
Payments on other long-term debt and leasing obligations | (157 | ) | (143 | ) | ||||
Construction allowance receipts | — | — | ||||||
Proceeds from exercise of stock options | 13,592 | 15,743 | ||||||
Minimum tax withholding requirements | (5,540 | ) | (6,281 | ) | ||||
Cash paid for treasury stock | (23,197 | ) | (50,000 | ) | ||||
Cash dividend paid to stockholders | (19,287 | ) | (17,613 | ) | ||||
Decrease in bank overdraft | (34,447 | ) | (44,538 | ) | ||||
Net cash provided by financing activities | 23,414 | 54,768 | ||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (27 | ) | 92 | |||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (56,377 | ) | (26,443 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 164,777 | 118,936 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 108,400 | $ | 92,493 |
Store | Market | Concept | |||
Cedar Park, TX | Austin | DICK'S Sporting Goods(1) | |||
Glendale, NY | New York | DICK'S Sporting Goods | |||
Hinesville, GA | Savannah | DICK'S Sporting Goods | |||
Norwalk, CT | New Haven | DICK'S Sporting Goods | |||
Sunnyvale, CA | San Jose | DICK'S Sporting Goods | |||
Jensen Beach, FL | Port St. Lucie | DICK'S Sporting Goods | |||
Fresno, CA | Fresno | DICK'S Sporting Goods | |||
North Scottsdale, AZ | Phoenix | DICK'S Sporting Goods | |||
Perimeter Pointe, GA | Atlanta | DICK'S Sporting Goods | |||
Encinitas, CA | San Diego | DICK'S Sporting Goods | |||
Bay Shore, NY | Long Island | DICK'S Sporting Goods | |||
Massapequa, NY | Long Island | DICK'S Sporting Goods | |||
Pearland, TX | Houston | DICK'S Sporting Goods | |||
Pueblo, CO | Pueblo | DICK'S Sporting Goods | |||
Lakewood, CO | Denver | DICK'S Sporting Goods | |||
Altamonte Springs, FL | Orlando | Golf Galaxy | |||
Westminster, CO | Denver | Golf Galaxy | |||
Westheimer, TX | Houston | Golf Galaxy | |||
Oklahoma City, OK | Oklahoma City | Golf Galaxy | |||
Brea, CA | Los Angeles | Golf Galaxy | |||
Pleasant Hill, CA | San Francisco | Golf Galaxy | |||
Upland, CA | Los Angeles | Golf Galaxy | |||
Davenport, IA | Quad Cities | Golf Galaxy(1) | |||
Cedar Park, TX | Austin | Field & Stream(1) | |||
Davenport, IA | Quad Cities | Field & Stream(1) |
Fiscal 2017 | Fiscal 2016 | |||||||||||||||||
DICK'S Sporting Goods(1) | Specialty Store Concepts(1) | Total | DICK'S Sporting Goods(1) | Specialty Store Concepts(1) | Total | |||||||||||||
Beginning stores | 676 | 121 | 797 | 644 | 97 | 741 | ||||||||||||
Q1 New stores | 15 | 10 | 25 | 3 | 2 | 5 | ||||||||||||
Closed stores | — | 1 | 1 | — | — | — | ||||||||||||
Ending stores | 691 | 130 | 821 | 647 | 99 | 746 | ||||||||||||
Relocated stores | 2 | — | 2 | 3 | — | 3 | ||||||||||||
DICK'S Sporting Goods(1) | Specialty Store Concepts(1) | Total(2) | |||||||
Q1 2016 | 34.5 | 2.4 | 37.0 | ||||||
Q2 2016 | 34.6 | 2.4 | 37.1 | ||||||
Q3 2016 | 36.1 | 2.7 | 38.8 | ||||||
Q4 2016 | 36.0 | 3.2 | 39.3 | ||||||
Q1 2017 | 36.8 | 3.5 | 40.3 |
(1) | Includes the Company's Golf Galaxy, Field & Stream and other specialty concept stores. 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" and include combo store openings within both the DICK'S Sporting Goods and specialty store concept reconciliations, as applicable. As of April 29, 2017, the Company operated 14 combo stores. |
(2) | Column may not add due to rounding. |
13 Weeks Ended April 29, 2017 | ||||||||||||
Pre-opening expenses | Income before income taxes | Net income (2) | Earnings per diluted share | |||||||||
GAAP Basis | $ | 12,456 | $ | 91,683 | $ | 58,195 | $ | 0.52 | ||||
% of Net Sales | 0.68 | % | 5.02 | % | 3.19 | % | ||||||
TSA conversion costs (1) | (3,474 | ) | 3,474 | 2,154 | ||||||||
Non-GAAP Basis | $ | 8,982 | $ | 95,157 | $ | 60,349 | $ | 0.54 | ||||
% of Net Sales | 0.49 | % | 5.21 | % | 3.31 | % |
(1) | Costs related to converting former TSA stores. |
(2) | The provision for income taxes for non-GAAP adjustments was calculated at 38%, which approximates the Company's blended tax rate. |
52 Weeks Ended January 28, 2017 | ||||||||||||||||||
Cost of goods sold | Selling, general and administrative expenses | Pre-opening expenses | Income before income taxes | Net income (5) | Earnings per diluted share | |||||||||||||
GAAP Basis | $ | 5,556,198 | $ | 1,875,643 | $ | 40,286 | $ | 458,422 | $ | 287,396 | $ | 2.56 | ||||||
% of Net Sales | 70.14 | % | 23.68 | % | 0.51 | % | 5.79 | % | 3.63 | % | ||||||||
Inventory write-down (1) | (46,379 | ) | — | — | 46,379 | 28,755 | ||||||||||||
Non-cash impairment and store closing charge (2) | — | (32,821 | ) | — | 32,821 | 20,349 | ||||||||||||
Non-operating asset impairment (3) | — | (7,707 | ) | — | 7,707 | 4,778 | ||||||||||||
TSA and Golfsmith integration costs (4) | — | (8,545 | ) | (5,102 | ) | 13,647 | 8,461 | |||||||||||
Non-GAAP Basis | $ | 5,509,819 | $ | 1,826,570 | $ | 35,184 | $ | 558,976 | $ | 349,739 | $ | 3.12 | ||||||
% of Net Sales | 69.55 | % | 23.06 | % | 0.44 | % | 7.06 | % | 4.41 | % |
(1) | Inventory write-down to net realizable value in connection with the Company’s new merchandising strategy. |
(2) | Includes non-cash impairment of store assets and store closing charges primarily related to ten Golf Galaxy stores in overlapping trade areas with former Golfsmith stores. |
(3) | Non-cash impairment charge to reduce the carrying value of a corporate aircraft held for sale to its fair market value. |
(4) | Costs related to converting former TSA and Golfsmith stores. |
(5) | The provision for income taxes for non-GAAP adjustments was calculated at 38%, which approximated the Company's blended tax rate. |
13 Weeks Ended | ||||||||
April 29, 2017 | April 30, 2016 | |||||||
(dollars in thousands) | ||||||||
Net income | $ | 58,195 | $ | 56,877 | ||||
Provision for income taxes | 33,488 | 34,770 | ||||||
Interest expense | 1,264 | 1,131 | ||||||
Depreciation and amortization | 53,044 | 47,990 | ||||||
EBITDA | $ | 145,991 | $ | 140,768 | ||||
Add: TSA conversion costs | 3,474 | — | ||||||
Adjusted EBITDA, as defined | $ | 149,465 | $ | 140,768 | ||||
% increase in adjusted EBITDA | 6 | % |
13 Weeks Ended | ||||||||
April 29, 2017 | April 30, 2016 | |||||||
(dollars in thousands) | ||||||||
Gross capital expenditures | $ | (113,892 | ) | $ | (88,834 | ) | ||
Proceeds from sale-leaseback transactions | — | — | ||||||
Deferred construction allowances | 25,117 | 16,202 | ||||||
Construction allowance receipts | — | — | ||||||
Net capital expenditures | $ | (88,775 | ) | $ | (72,632 | ) |
13 Weeks Ended July 29, 2017 | 53 Weeks Ended February 3, 2018 | |||||||||||||||||||||||||||||||
Low-End | High-End | Low-End | High-End | |||||||||||||||||||||||||||||
Amount | EPS | Amount | EPS | Amount | EPS | Amount | EPS | |||||||||||||||||||||||||
GAAP consolidated net income and earnings per diluted share | $ | 110,160 | $ | 0.98 | $ | 115,660 | $ | 1.03 | $ | 400,506 | $ | 3.59 | $ | 411,506 | $ | 3.69 | ||||||||||||||||
Severance and other employee-related costs | 7,000 | 7,000 | 7,000 | 7,000 | ||||||||||||||||||||||||||||
Costs to convert former TSA stores | — | — | 3,474 | 3,474 | ||||||||||||||||||||||||||||
Tax effect of the above items | 2,660 | 2,660 | 3,980 | 3,980 | ||||||||||||||||||||||||||||
Non-GAAP consolidated net income and earnings per diluted share | $ | 114,500 | $ | 1.02 | $ | 120,000 | $ | 1.07 | $ | 407,000 | $ | 3.65 | $ | 418,000 | $ | 3.75 |
![]() | PRESS RELEASE |
• | André Hawaux announced retirement |
• | Lauren Hobart named President |
• | Keri Jones to join the Company as Chief Merchant |
• | Donald Germano to re-join the Company to lead Stores |
Y
MIB=DS\7_ /B+@_:6_P"A1^"__@FU'_Y/I/\ B+A_:6'_ #*/P7_\$NH__)]>
M(_\ !?S]D_X?_L6_\%!+KP3\,_#Z^&?#,>@6%ZMDMY<70$THDWMOG=WYP.-V
M!C@"ONW_ (-]_P#@D9^SO^VI^P"/&GQ.^'4/BCQ-_P ))?6'VQM9U&U_ #YOB@MJFVV\0:"T5CJ,O/ N;?:(F..-\>SH,J22:]<_XBV?AZ/^:(
M_%+_ +[MO\:\KV=2#M8_=JV(RS-\(E&LG!M/1I.Z=U>^JU/UM4Y4?2OSD_X.
M=Y1_PP=X/7N/B%8?^D&HUX+\8?\ @[/M]1\ 7MO\-_@CXH3Q=<+Y=E-XBG1=
M/MB>LDBQ'>^/[H9,_P!X8Y_,_P"._P"TC\6?VR?B5'XO^+GCC5/$%Y!(TEEI
M4 %K?PP)=*_X2O0WL+;[9
M]JB'[MFA3<_EE^,GC/%>$_\ !ZY^UO\ :_%?PE^".GW.8]/@G\7:O$K?QR%K
M:T##V5+DX/\ ?!YH _'5]>^+L7P9C^(!\4>-/^$6FUE] 6]_MBYV?;5@6_9,^%6M:7
MKDNGR-K6GGR8X;GSI!"TB1,SX5=N=S;>OW3Z<^W:1:QVEI##'D1Q*$7GL!@5
M^'^-6?8K"X?#82F])N3:DE)>ZHV5I)K[5]NA_0_T?^&,/[3&8JM3Y9PY8Z7B
MU>[>L;/L>17OQ<\>?L]$3?$+3]/\2>$4P)O$V@V\D
M)/%6F+>:;H^H7EK(2%EBB+*Q!P>?K5S_ (4;XS_Z%W5O^_)K])/^""_@_1_&
MGP[U2/6-*TW5HX8"T:WELDZH3
M26MI("2>2P:OPN'[2_[,A_X-SU^![^+)A\=8_%#^.!9?V'>&'[>;C[.(OM/E
M>5SIP5<[L;N,U[M_P9B?MB?\*[_;"\=?!G4+GR]-^)6CC5=,C9N/[1L-S,JC
MU>VDF9CZ6RT ??G_ =*_P#!77QK_P $ZO@KX/\ !/PQO/[%\;_$S[5))K:*
M>>QM_+5S!D$++(\JJ'(.P*Y&&*LOXC_LC?\$AOVK/^"QG@W6/BAX>F7QA8
MV^HRZ?/K'BCQ0#<75TJI)(JF5GD; D0DL /FZG!Q^^7_ <8_P#!&'5O^"L'
MP4\-:AX%O;&S^)GP]-R^EP7S^5:ZQ;3A#+:M)TC?=$C(Y^7(96P&W+_/#:6_
M[8G_ 1/\
?\ 91_X)5^(K'2=0FT[Q+\2-0M_#.GRV\ICGCC8F:Y=2.1^YB=,CH9!
M7Z.9K^9O_@\Y_:R_X69^VSX*^$MC<^9I_P --$^W7T:MP+^_(