PITTSBURGH, Nov. 26, 2019
/PRNewswire/ -- DICK'S Sporting Goods, Inc. (NYSE: DKS), the
largest U.S. based full-line omni-channel sporting goods retailer,
today reported sales and earnings results for the third quarter
ended November 2, 2019.
Third Quarter Results
The Company reported consolidated net income for the third
quarter ended November 2, 2019 of $57.6
million, or $0.66 per diluted
share. The Company reported consolidated net income for the third
quarter ended November 3, 2018 of
$37.8 million, or $0.39 per diluted share.
On a non-GAAP basis, the Company reported consolidated net
income for the third quarter ended November 2,
2019 of $44.8 million, or
$0.52 per diluted share. Third
quarter 2019 non-GAAP results exclude the gain on sale of
subsidiaries, charges related to the exit of eight Field &
Stream stores, and a non-cash asset impairment. The GAAP to
non-GAAP reconciliations are included in a table later in the
release under the heading "GAAP to Non-GAAP Reconciliations."
Net sales for the third quarter of 2019 increased 5.6% to
approximately $1.96 billion.
Consolidated same store sales increased 6.0%. Third quarter
2018 consolidated same store sales decreased 3.9%, adjusted for the
calendar shift due to the 53rd week in fiscal 2017,
which the Company believes is the best view of its business.
"We are very pleased with our strong third quarter results, as
we delivered a 6.0% comp sales increase and meaningful gross margin
expansion. We saw increases in both average ticket and
transactions, as well as growth across each of our three primary
categories of hardlines, apparel and footwear," said Edward W. Stack, Chairman and Chief Executive
Officer. "As we head into the holiday season, we remain very
enthusiastic about our business, and we are pleased to increase our
full year sales and earnings outlook for the third time this
year."
Lauren R. Hobart, President,
added, "The momentum in our stores continued to build with our
focus on service standards, recognition of great results and
stronger marketing. Combining this with the successful openings of
our new eCommerce fulfillment centers and enhanced website
functionality, we continue to build one of the best omni-channel
experiences in retail."
Omni-channel Development
eCommerce sales for the third quarter of 2019 increased 13%.
eCommerce penetration for the third quarter of 2019 was
approximately 13% of total net sales, compared to approximately 12%
during the third quarter of 2018.
In the third quarter, the Company opened six new DICK'S Sporting
Goods stores and one new Golf Galaxy store, completing its 2019
store development program. The Company also exited eight Field
& Stream stores, which were subleased to Sportsman's Warehouse,
and closed one Golf Galaxy Store. As of November 2, 2019, the
Company operated 733 DICK'S Sporting Goods stores in 47 states,
with approximately 38.8 million square feet, 95 Golf Galaxy stores
in 32 states, with approximately 2.0 million square feet, and 27
Field & Stream stores in 16 states, with approximately 1.2
million square feet.
Store count, square footage and new stores are listed in a table
later in the release under the heading "Store Count and Square
Footage."
Balance Sheet
The Company ended the third quarter
of 2019 with approximately $87.6 million in
cash and cash equivalents and approximately $719.3 million in outstanding borrowings under
its revolving credit facility. Over the course of the last 12
months, the Company continued to invest in omni-channel growth,
while returning over $495 million to
shareholders through share repurchases and quarterly dividends.
Total inventory increased 17.1% at the end of the third quarter
of 2019 as compared to the end of the third quarter of 2018. This
planned increase was due primarily to strategic investments to
support key growth categories.
Year-to-Date Results
The Company reported consolidated net income for the 39 weeks
ended November 2, 2019 of
$227.6 million, or $2.53 per diluted share. For the 39 weeks ended
November 3, 2018, the Company
reported consolidated net income of $217.3
million, or $2.18 per diluted
share.
On a non-GAAP basis, the Company reported consolidated net
income for the 39 weeks ended November
2, 2019 of $215.8 million,
or $2.39 per diluted share, which excludes the gain on
sale of subsidiaries, non-cash asset impairments, charges related
to the exit of eight Field and Stream stores, and the favorable
settlement of a litigation contingency. The GAAP to non-GAAP
reconciliations are included in a table later in the release under
the heading "GAAP to Non-GAAP Reconciliations."
Net sales for the 39 weeks ended November
2, 2019 increased 3.3% to approximately $6.14 billion. Consolidated same store sales
increased 3.1%. Consolidated same store sales decreased 3.5% for
the 39-weeks ended November 3, 2018,
adjusted for the calendar shift due to the
53rd week in 2017, which the Company believes is
the best view of its business.
Capital Allocation
On November 21, 2019, the Company's Board of Directors
authorized and declared a quarterly dividend in the amount of
$0.275 per share on the Company's
Common Stock and Class B Common Stock. The dividend is payable in
cash on December 31, 2019 to stockholders of record at the
close of business on December 13, 2019.
During the third quarter of 2019, the Company repurchased
approximately 2.8 million shares of its common stock at an average
cost of $35.07 per share, for a total
cost of $99.5 million. Under the
five-year share repurchase program authorized by the Board of
Directors in March 2016, the Company
has repurchased approximately $933
million of common stock and has approximately $67 million remaining under the program. On
June 12, 2019, the Company's Board of
Directors authorized an additional five-year share repurchase
program of up to $1 billion of the
Company's common stock. The Company plans to continue to purchase
under the 2016 program until it is exhausted or expired.
Full Year 2019 Outlook
- Based on an estimated 89 million average diluted shares
outstanding, the Company currently projects earnings per diluted
share to be approximately $3.63 to
3.73. The Company reported earnings per diluted share
of $3.24 for the 52 weeks ended February 2, 2019.
-
- The Company's earnings per diluted share guidance includes
approximately $30 million of net
investments in business transformation initiatives.
- The Company's earnings per diluted share guidance includes the
expected impact from all tariffs currently in effect, as well as
any new tariffs slated to go into effect.
- The Company currently projects non-GAAP earnings per diluted
share to be approximately $3.50 to
3.60. This excludes the gain on sale of subsidiaries,
non-cash asset impairments, charges related to the exit of eight
Field & Stream stores, and the favorable settlement of a
litigation contingency.
- The Company is continuing the strategic review of its hunt
business, including Field & Stream.
- Consolidated same store sales are currently expected to
increase 2.5% to 3%, compared to a 3.1% decrease in 2018.
- In 2019, the Company anticipates capital expenditures to
be approximately $230 million on a
gross basis and approximately $200
million on a net basis. In 2018, capital expenditures
were $198 million on a gross basis
and $170 million on a net basis.
Conference Call Info
The Company will host a conference call today at 10:00 a.m.
Eastern Time to discuss the third quarter results. Investors
will have the opportunity to listen to the earnings conference call
over the internet through the Company's website located
at investors.DICKS.com. To listen to the live call, please go
to the website at least fifteen minutes early to register,
download, and install any necessary audio software. For those who
cannot listen to the live webcast, it will be archived on the
Company's website for approximately twelve months.
Non-GAAP Financial Measures
In addition to reporting the Company's financial results in
accordance with generally accepted accounting principles ("GAAP"),
the Company reports certain financial results that differ from what
is reported under GAAP. These non-GAAP financial measures include
consolidated non-GAAP net income, non-GAAP earnings per diluted
share, and net capital expenditures, which management believes
provides investors with useful supplemental information to evaluate
the Company's ongoing operations and to compare with past and
future periods. Management also uses certain non-GAAP measures
internally for forecasting, budgeting, and measuring its operating
performance. These measures should be viewed as supplementing, and
not as an alternative or substitute for, the Company's financial
results prepared in accordance with GAAP. The methods used by the
Company to calculate its non-GAAP financial measures may differ
significantly from methods used by other companies to compute
similar measures. As a result, any non-GAAP financial measures
presented herein may not be comparable to similar measures provided
by other companies. A reconciliation of the Company's non-GAAP
measures to the most directly comparable GAAP financial measures
are provided below and on the Company's website at
investors.DICKS.com.
Forward-Looking Statements Involving Known and Unknown Risks
and Uncertainties
This release contains forward-looking statements made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to
risks and uncertainties and change based on various important
factors, many of which may be beyond the Company's control. The
Company's future performance and actual results may differ
materially from those expressed or implied in such forward-looking
statements. Forward-looking statements should not be relied upon by
investors as a prediction of actual results. Forward-looking
statements include statements regarding, among other things, the
Company's future performance, including 2019 outlook for earnings
and sales; investments in business transformation initiatives; the
impact of tariffs; capital expenditures; and share repurchases and
dividends.
Factors that could cause actual results to differ materially
from those expressed or implied in any forward-looking statements
include, but are not limited to: changes in consumer discretionary
spending; investments in omni-channel growth not producing the
anticipated benefits within the expected time-frame or at all;
risks relating to private brands and new retail concepts;
investments in business transformation initiatives not producing
the anticipated benefits within the expected time-frame or at all;
the amount devoted to strategic investments and the timing and
success of those investments; the integration of strategic
acquisitions being more difficult, time-consuming, or costly than
expected; the results of the strategic review of the hunt business,
including Field & Stream; inventory turn; changes in the
competitive market and competition amongst retailers, including an
increase in promotional activity; changes in consumer demand or
shopping patterns and the ability to identify new trends and have
the right trending products in stores and online; changes in
existing tax, labor, foreign trade and other laws and regulations,
including those imposing new taxes, surcharges, or tariffs;
limitations on the availability of attractive retail store sites;
unauthorized disclosure of sensitive or confidential customer
information; website downtime, disruptions or other problems with
the eCommerce platform, including interruptions, delays or downtime
caused by high volumes of users or transactions, deficiencies in
design or implementation, or platform enhancements; disruptions or
other problems with information systems; factors affecting vendors,
including supply chain and currency risks; talent needs and the
loss of Edward W. Stack, Chairman
and Chief Executive Officer; developments with sports leagues,
professional athletes or sports superstars; weather-related
disruptions and seasonality of the Company's business; and risks
associated with being a controlled company.
For additional information on these and other factors that could
affect the Company's actual results, see the risk factors set forth
in the Company's filings with the Securities and Exchange
Commission ("SEC"), including the most recent Annual Report filed
with the SEC on March 29, 2019 and the Quarterly Report
filed with the SEC on August 29,
2019. The Company disclaims and does not undertake any
obligation to update or revise any forward-looking statement in
this press release, except as required by applicable law or
regulation. Forward-looking statements included in this release are
made as of the date of this release.
About DICK'S Sporting Goods, Inc.
Founded in 1948, DICK'S Sporting Goods, Inc. is a leading
omni-channel sporting goods retailer offering an extensive
assortment of authentic, high-quality sports equipment, apparel,
footwear and accessories. As of November 2, 2019, the Company
operated 733 DICK'S Sporting Goods locations across the United States, serving and inspiring
athletes and outdoor enthusiasts to achieve their personal best
through a blend of dedicated teammates, in-store services and
unique specialty shop-in-shops dedicated to Team Sports, Athletic
Apparel, Golf, Lodge/Outdoor, Fitness and Footwear.
Headquartered in Pittsburgh,
PA, DICK'S also owns and operates Golf Galaxy and Field
& Stream specialty stores, as well as GameChanger, a youth
sports mobile app for scheduling, communications and live
scorekeeping. DICK'S offers its products through a content-rich
eCommerce platform that is integrated with its store network and
provides customers with the convenience and expertise of a 24-hour
storefront. For more information, visit the Investor Relations
page at dicks.com.
Contacts:
Investor Relations:
Nate Gilch, Director of Investor
Relations
DICK'S Sporting Goods, Inc.
investors@dcsg.com
(724) 273-3400
Media Relations:
(724) 273-5552 or press@dcsg.com
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED
(In thousands,
except per share data)
|
|
|
|
13 Weeks
Ended
|
|
|
November 2,
2019
|
|
% of
Sales(2)
|
|
November 3,
2018
|
|
% of
Sales(2)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,962,204
|
|
|
100.00
|
%
|
|
$
|
1,857,273
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and
distribution costs (1)
|
|
1,381,562
|
|
|
70.41
|
|
|
1,333,719
|
|
|
71.81
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
580,642
|
|
|
29.59
|
|
|
523,554
|
|
|
28.19
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
531,704
|
|
|
27.10
|
|
|
468,691
|
|
|
25.24
|
|
Pre-opening
expenses
|
|
3,313
|
|
|
0.17
|
|
|
1,997
|
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
45,625
|
|
|
2.33
|
|
|
52,866
|
|
|
2.85
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
subsidiaries
|
|
(33,779)
|
|
|
(1.72)
|
|
|
—
|
|
|
—
|
|
Interest
expense
|
|
4,278
|
|
|
0.22
|
|
|
2,606
|
|
|
0.14
|
|
Other (income)
expense
|
|
(2,020)
|
|
|
(0.10)
|
|
|
68
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
77,146
|
|
|
3.93
|
|
|
50,192
|
|
|
2.70
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
19,562
|
|
|
1.00
|
|
|
12,365
|
|
|
0.67
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
57,584
|
|
|
2.93
|
%
|
|
$
|
37,827
|
|
|
2.04
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.68
|
|
|
|
|
$
|
0.39
|
|
|
|
Diluted
|
|
$
|
0.66
|
|
|
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
85,048
|
|
|
|
|
96,677
|
|
|
|
Diluted
|
|
86,601
|
|
|
|
|
97,890
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Cost of goods sold includes: the
cost of merchandise (inclusive of vendor allowances, inventory
shrinkage
and inventory write-downs for the lower of
cost and net realizable value); freight; distribution; shipping;
and
store occupancy costs. The Company defines
merchandise margin as net sales less the cost of merchandise
sold.
|
|
|
|
|
|
|
|
|
|
(2) Column does not add due to
rounding
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED
(In thousands,
except per share data)
|
|
|
|
39 Weeks
Ended
|
|
|
November 2,
2019
|
|
% of
Sales(2)
|
|
November 3,
2018
|
|
%
of
Sales(2)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
6,142,093
|
|
|
100.00
|
%
|
|
$
|
5,944,480
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and
distribution costs (1)
|
|
4,320,571
|
|
|
70.34
|
|
|
4,201,277
|
|
|
70.68
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
1,821,522
|
|
|
29.66
|
|
|
1,743,203
|
|
|
29.32
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
1,539,934
|
|
|
25.07
|
|
|
1,434,344
|
|
|
24.13
|
|
Pre-opening
expenses
|
|
4,887
|
|
|
0.08
|
|
|
6,135
|
|
|
0.10
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
276,701
|
|
|
4.50
|
|
|
302,724
|
|
|
5.09
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
subsidiaries
|
|
(33,779)
|
|
|
(0.55)
|
|
|
—
|
|
|
—
|
|
Interest
expense
|
|
12,909
|
|
|
0.21
|
|
|
8,312
|
|
|
0.14
|
|
Other
income
|
|
(10,340)
|
|
|
(0.17)
|
|
|
(1,233)
|
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
307,911
|
|
|
5.01
|
|
|
295,645
|
|
|
4.97
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
80,268
|
|
|
1.31
|
|
|
78,336
|
|
|
1.32
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
227,643
|
|
|
3.71
|
%
|
|
$
|
217,309
|
|
|
3.66
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.57
|
|
|
|
|
$
|
2.20
|
|
|
|
Diluted
|
|
$
|
2.53
|
|
|
|
|
$
|
2.18
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
88,671
|
|
|
|
|
98,926
|
|
|
|
Diluted
|
|
90,130
|
|
|
|
|
99,878
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Cost of goods sold includes: the
cost of merchandise (inclusive of vendor allowances, inventory
shrinkage
and inventory write-downs for the lower of cost and net realizable
value); freight; distribution; shipping; and
store occupancy costs. The Company defines merchandise margin as
net sales less the cost of merchandise sold.
|
|
|
|
|
|
|
|
|
|
(2) Column does not add due to
rounding
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS - UNAUDITED
(Dollars in
thousands)
|
|
|
|
November 2,
2019
|
|
November 3,
2018
|
|
February 2,
2019
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
87,622
|
|
|
$
|
92,103
|
|
|
$
|
113,653
|
|
Accounts receivable,
net
|
|
70,463
|
|
|
57,559
|
|
|
37,970
|
|
Income taxes
receivable
|
|
17,122
|
|
|
10,422
|
|
|
6,135
|
|
Inventories,
net
|
|
2,573,250
|
|
|
2,196,777
|
|
|
1,824,696
|
|
Prepaid expenses and
other current assets
|
|
128,458
|
|
|
138,468
|
|
|
139,944
|
|
Total current
assets
|
|
2,876,915
|
|
|
2,495,329
|
|
|
2,122,398
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,436,975
|
|
|
1,578,313
|
|
|
1,565,271
|
|
Operating lease
assets
|
|
2,378,399
|
|
|
—
|
|
|
—
|
|
Intangible assets,
net
|
|
123,855
|
|
|
131,763
|
|
|
130,166
|
|
Goodwill
|
|
245,857
|
|
|
250,476
|
|
|
250,476
|
|
Other
assets:
|
|
|
|
|
|
|
Deferred income
taxes
|
|
16,033
|
|
|
11,886
|
|
|
13,243
|
|
Other
|
|
128,965
|
|
|
115,991
|
|
|
105,595
|
|
Total other
assets
|
|
144,998
|
|
|
127,877
|
|
|
118,838
|
|
TOTAL
ASSETS
|
|
$
|
7,206,999
|
|
|
$
|
4,583,758
|
|
|
$
|
4,187,149
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,097,564
|
|
|
$
|
1,028,234
|
|
|
$
|
889,908
|
|
Accrued
expenses
|
|
379,774
|
|
|
350,737
|
|
|
364,342
|
|
Operating lease
liabilities
|
|
417,912
|
|
|
—
|
|
|
—
|
|
Income taxes
payable
|
|
2,519
|
|
|
2,078
|
|
|
20,142
|
|
Deferred revenue and
other liabilities
|
|
183,876
|
|
|
173,032
|
|
|
230,247
|
|
Total current
liabilities
|
|
2,081,645
|
|
|
1,554,081
|
|
|
1,504,639
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
Revolving credit
borrowings
|
|
719,300
|
|
|
382,300
|
|
|
—
|
|
Long-term operating
lease liabilities
|
|
2,509,866
|
|
|
—
|
|
|
—
|
|
Deferred income
taxes
|
|
8,530
|
|
|
14,951
|
|
|
11,776
|
|
Other long-term
liabilities
|
|
178,756
|
|
|
785,384
|
|
|
766,573
|
|
Total long-term
liabilities
|
|
3,416,452
|
|
|
1,182,635
|
|
|
778,349
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Common
stock
|
|
597
|
|
|
703
|
|
|
693
|
|
Class B common
stock
|
|
243
|
|
|
245
|
|
|
245
|
|
Additional paid-in
capital
|
|
1,240,864
|
|
|
1,204,293
|
|
|
1,214,287
|
|
Retained
earnings
|
|
2,599,495
|
|
|
2,374,336
|
|
|
2,455,192
|
|
Accumulated other
comprehensive loss
|
|
(116)
|
|
|
(118)
|
|
|
(120)
|
|
Treasury stock, at
cost
|
|
(2,132,181)
|
|
|
(1,732,417)
|
|
|
(1,766,136)
|
|
Total stockholders'
equity
|
|
1,708,902
|
|
|
1,847,042
|
|
|
1,904,161
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
7,206,999
|
|
|
$
|
4,583,758
|
|
|
$
|
4,187,149
|
|
|
|
|
|
|
|
|
The Company adopted
ASU 2016-02, "Leases (Topic 842)", and related amendments as
of February 3, 2019 under the modified retrospective
approach and, therefore, has not revised comparative
periods.
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS - UNAUDITED
(Dollars in
thousands)
|
|
|
|
39 Weeks
Ended
|
|
|
November 2,
2019
|
|
November 3,
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
|
$
|
227,643
|
|
|
$
|
217,309
|
|
Adjustments to
reconcile net income to net cash (used in) provided by
operating activities:
|
|
|
|
|
Depreciation,
amortization, and other
|
|
201,152
|
|
|
179,437
|
|
Deferred income
taxes
|
|
(3,438)
|
|
|
(726)
|
|
Stock-based
compensation
|
|
31,742
|
|
|
31,783
|
|
Gain on sale of
subsidiaries
|
|
(33,779)
|
|
|
—
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(22,636)
|
|
|
(7,218)
|
|
Inventories
|
|
(758,016)
|
|
|
(466,212)
|
|
Prepaid expenses and
other assets
|
|
3,822
|
|
|
7,950
|
|
Accounts
payable
|
|
168,259
|
|
|
234,859
|
|
Accrued
expenses
|
|
11,424
|
|
|
11,152
|
|
Income taxes payable /
receivable
|
|
(28,610)
|
|
|
(14,387)
|
|
Deferred construction
allowances
|
|
25,598
|
|
|
23,440
|
|
Deferred revenue and
other liabilities
|
|
(35,936)
|
|
|
(56,859)
|
|
Net cash (used in)
provided by operating activities
|
|
(212,775)
|
|
|
160,528
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
expenditures
|
|
(165,703)
|
|
|
(135,288)
|
|
Proceeds from sale of
subsidiaries, net of cash sold
|
|
40,387
|
|
|
—
|
|
Proceeds from sale of
other assets
|
|
4,103
|
|
|
—
|
|
Deposits and purchases
of other assets
|
|
(1,000)
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(122,213)
|
|
|
(135,288)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Revolving credit
borrowings
|
|
1,778,750
|
|
|
1,723,500
|
|
Revolving credit
repayments
|
|
(1,059,450)
|
|
|
(1,341,200)
|
|
Payments on other
long-term debt and finance lease obligations
|
|
(3,965)
|
|
|
(3,924)
|
|
Construction allowance
receipts
|
|
—
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
1,160
|
|
|
—
|
|
Minimum tax
withholding requirements
|
|
(6,320)
|
|
|
(5,264)
|
|
Cash paid for treasury
stock
|
|
(366,148)
|
|
|
(289,623)
|
|
Cash dividends paid to
stockholders
|
|
(74,540)
|
|
|
(68,139)
|
|
Increase (decrease) in
bank overdraft
|
|
39,466
|
|
|
(49,700)
|
|
Net cash provided by
(used in) financing activities
|
|
308,953
|
|
|
(34,350)
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
4
|
|
|
(40)
|
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
|
(26,031)
|
|
|
(9,150)
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
113,653
|
|
|
101,253
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
87,622
|
|
|
$
|
92,103
|
|
Store Count and Square Footage
The stores that opened during the third quarter of 2019 are as
follows:
Store
|
|
Market
|
|
Concept
|
Kennewick,
WA
|
|
Kennewick
|
|
DICK'S Sporting
Goods
|
Doral, FL
|
|
Miami / Ft.
Lauderdale
|
|
DICK'S Sporting
Goods
|
Waterbury,
CT
|
|
New Haven
|
|
DICK'S Sporting
Goods
|
West Jordan,
UT
|
|
Salt Lake
City
|
|
DICK'S Sporting
Goods
|
Conroe, TX
|
|
Houston
|
|
DICK'S Sporting
Goods
|
Manchester,
NH
|
|
Nashua
|
|
DICK'S Sporting
Goods
|
Downers Grove,
IL
|
|
Chicago
|
|
Golf
Galaxy
|
The following represents a reconciliation of beginning and
ending stores and square footage for the periods indicated:
Store Count:
|
|
Fiscal
2019
|
|
Fiscal
2018
|
|
|
DICK'S
Sporting
Goods
|
|
Specialty
Concept
Stores (1)
|
|
Total
|
|
DICK'S
Sporting
Goods
|
|
Specialty
Concept
Stores (1)
|
|
Total
|
Beginning
stores
|
|
729
|
|
|
129
|
|
|
858
|
|
|
716
|
|
|
129
|
|
|
845
|
|
Q1 New
stores
|
|
—
|
|
|
1
|
|
|
1
|
|
|
8
|
|
|
—
|
|
|
8
|
|
Q2 New
stores
|
|
2
|
|
|
—
|
|
|
2
|
|
|
5
|
|
|
—
|
|
|
5
|
|
Q3 New
stores
|
|
6
|
|
|
1
|
|
|
7
|
|
|
6
|
|
|
—
|
|
|
6
|
|
Closed stores
(3)
|
|
4
|
|
|
9
|
|
|
13
|
|
|
3
|
|
|
—
|
|
|
3
|
|
Ending
stores
|
|
733
|
|
|
122
|
|
|
855
|
|
|
732
|
|
|
129
|
|
|
861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relocated
stores
|
|
3
|
|
|
2
|
|
|
5
|
|
|
4
|
|
|
1
|
|
|
5
|
|
Square Footage:
(in millions)
|
|
DICK'S
Sporting
Goods
|
|
Specialty
Concept
Stores (1)
|
|
Total
(2)
|
Q1 2018
|
|
38.4
|
|
|
3.7
|
|
|
42.1
|
|
Q2 2018
|
|
38.7
|
|
|
3.7
|
|
|
42.3
|
|
Q3 2018
|
|
38.8
|
|
|
3.6
|
|
|
42.4
|
|
Q4 2018
|
|
38.6
|
|
|
3.6
|
|
|
42.2
|
|
Q1 2019
|
|
38.6
|
|
|
3.6
|
|
|
42.2
|
|
Q2 2019
|
|
38.6
|
|
|
3.6
|
|
|
42.2
|
|
Q3 2019
|
|
38.8
|
|
|
3.3
|
|
|
42.1
|
|
(1)
|
Includes the
Company's Golf Galaxy and Field & Stream stores. In some
markets the Company operates DICK'S Sporting Goods stores adjacent
to its specialty concept stores on the same property with a
pass-through for customers. The Company refers to this format as a
"combo store" and includes combo store openings within both the
DICK'S Sporting Goods and specialty concept store reconciliations,
as applicable. As of November 2, 2019, the Company operated 25
combo stores.
|
|
|
(2)
|
Column may not add
due to rounding.
|
|
|
(3)
|
Includes the
Company's exit from eight Field & Stream stores, which were
subleased to Sportsman's Warehouse in the third quarter of
2019.
|
DICK'S SPORTING
GOODS, INC.
GAAP to NON-GAAP
RECONCILIATIONS - UNAUDITED
(Dollars in
thousands, except per share amounts)
|
|
|
13 Weeks Ended
November 2, 2019
|
|
|
|
|
|
|
|
|
Selling,
general and
administrative
expenses
|
Income
from
operations
|
Gain on
sale of
subsidiaries
|
Income
before
income
taxes
|
Net
income
(4)
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
|
531,704
|
|
$
|
45,625
|
|
$
|
(33,779)
|
|
$
|
77,146
|
|
$
|
57,584
|
|
$
|
0.66
|
|
% of Net
Sales
|
27.10
|
%
|
2.33
|
%
|
(1.72)
|
%
|
3.93
|
%
|
2.93
|
%
|
|
Gain on sale of
subsidiaries (1)
|
—
|
|
—
|
|
33,779
|
|
(33,779)
|
|
(24,996)
|
|
|
Field & Stream
store closing costs (2)
|
(8,938)
|
|
8,938
|
|
—
|
|
8,938
|
|
6,614
|
|
|
Non-cash asset
impairment (3)
|
(7,630)
|
|
7,630
|
|
—
|
|
7,630
|
|
5,646
|
|
|
Non-GAAP
Basis
|
$
|
515,136
|
|
$
|
62,193
|
|
$
|
—
|
|
$
|
59,935
|
|
$
|
44,848
|
|
$
|
0.52
|
|
% of Net
Sales
|
26.25
|
%
|
3.17
|
%
|
—
|
%
|
3.05
|
%
|
2.29
|
%
|
|
(1)
|
Gain on sale of Blue
Sombrero and Affinity Sports subsidiaries.
|
(2)
|
Charge related to the
Company's exit from eight Field & Stream stores, which were
subleased to Sportsman's Warehouse.
|
(3)
|
Non-cash impairment
charge to reduce the carrying value of a corporate aircraft held
for sale to its fair market value.
|
(4)
|
The provision for
income taxes for Non-GAAP adjustments was calculated at 26%, which
approximates the Company's blended tax rate.
|
|
39 Weeks Ended
November 2, 2019
|
|
|
|
|
|
|
|
|
Selling,
general and
administrative
expenses
|
Income
from
operations
|
Gain on
sale of
subsidiaries
|
Income
before
income
taxes
|
Net
income (5)
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
|
1,539,934
|
|
$
|
276,701
|
|
$
|
(33,779)
|
|
$
|
307,911
|
|
$
|
227,643
|
|
$
|
2.53
|
|
% of Net
Sales
|
25.07
|
%
|
4.50
|
%
|
(0.55)
|
%
|
5.01
|
%
|
3.71
|
%
|
|
Gain on sale of
subsidiaries (1)
|
—
|
|
—
|
|
33,779
|
|
(33,779)
|
|
(24,996)
|
|
|
Field & Stream
store closing costs (2)
|
(8,938)
|
|
8,938
|
|
—
|
|
8,938
|
|
6,614
|
|
|
Non-cash asset
impairment (3)
|
(15,253)
|
|
15,253
|
|
—
|
|
15,253
|
|
11,287
|
|
|
Litigation
contingency settlement (4)
|
6,411
|
|
(6,411)
|
|
—
|
|
(6,411)
|
|
(4,744)
|
|
|
Non-GAAP
Basis
|
$
|
1,522,154
|
|
$
|
294,481
|
|
$
|
—
|
|
$
|
291,912
|
|
$
|
215,804
|
|
$
|
2.39
|
|
% of Net
Sales
|
24.78
|
%
|
4.79
|
%
|
—
|
%
|
4.75
|
%
|
3.51
|
%
|
|
(1)
|
Gain on sale of Blue
Sombrero and Affinity Sports subsidiaries.
|
(2)
|
Charge related to the
Company's exit from eight Field & Stream stores, which were
subleased to Sportsman's Warehouse.
|
(3)
|
Non-cash impairment
charge to reduce the carrying value of a corporate aircraft held
for sale to its fair market value.
|
(4)
|
Favorable settlement
of a previously accrued litigation contingency.
|
(5)
|
The provision for
income taxes for Non-GAAP adjustments was calculated at 26%, which
approximates the Company's blended tax rate.
|
Reconciliation of Gross Capital Expenditures to Net Capital
Expenditures
The following table represents a reconciliation of the Company's
gross capital expenditures to its capital expenditures, net of
tenant allowances.
|
|
39 Weeks
Ended
|
|
|
November 2,
2019
|
|
November 3,
2018
|
|
|
(dollars in thousands)
|
Gross capital
expenditures
|
|
$
|
(165,703)
|
|
|
$
|
(135,288)
|
|
Proceeds from
sale-leaseback transactions
|
|
—
|
|
|
—
|
|
Deferred construction
allowances
|
|
25,598
|
|
|
23,440
|
|
Construction
allowance receipts
|
|
—
|
|
|
—
|
|
Net capital
expenditures
|
|
$
|
(140,105)
|
|
|
$
|
(111,848)
|
|
Reconciliation of Non-GAAP Consolidated Net Income and
Earnings Per Diluted Share Guidance
(Dollars in thousands, except per share amounts)
|
|
|
52 Weeks Ended
February 1, 2020
|
|
|
|
Low-End
|
|
High-End
|
|
|
|
Amount
|
|
EPS
|
|
Amount
|
|
EPS
|
GAAP consolidated net
income and earnings per diluted share
|
|
|
$
|
323,339
|
|
|
$
|
3.63
|
|
|
$
|
332,239
|
|
|
$
|
3.73
|
|
Gain on sale of
subsidiaries (1)
|
|
|
(24,996)
|
|
|
|
|
(24,996)
|
|
|
|
Field & Stream
store closing costs (2)
|
|
|
6,614
|
|
|
|
|
6,614
|
|
|
|
Non-cash asset
impairment (3)
|
|
|
11,287
|
|
|
|
|
11,287
|
|
|
|
Litigation
contingency settlement (4)
|
|
|
(4,744)
|
|
|
|
|
(4,744)
|
|
|
|
Non-GAAP consolidated
net income and earnings per diluted share
|
|
|
$
|
311,500
|
|
|
$
|
3.50
|
|
|
$
|
320,400
|
|
|
$
|
3.60
|
|
(1)
|
Gain on sale of Blue
Sombrero and Affinity Sports subsidiaries.
|
(2)
|
Charge related to the
Company's exit from eight Field & Stream stores, which were
subleased to Sportsman's Warehouse.
|
(3)
|
Non-cash impairment
charge to reduce the carrying value of a corporate aircraft held
for sale to its fair market value.
|
(4)
|
Favorable settlement
of a previously accrued litigation contingency.
|
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SOURCE DICK'S Sporting Goods, Inc.