PITTSBURGH, May 29, 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 first
quarter ended May 4, 2019.
First Quarter Results
The Company reported consolidated net income for the first
quarter ended May 4, 2019 of $57.5
million, or $0.61 per diluted
share. The Company reported consolidated net income for the first
quarter ended May 5, 2018 of
$60.1 million, or $0.59 per diluted share.
On a non-GAAP basis, the Company reported consolidated net
income for the first quarter ended May 4, 2019 of $58.4
million, or $0.62 per diluted share. First quarter
2019 non-GAAP results exclude a non-cash asset impairment and the
settlement of a litigation contingency. The GAAP to non-GAAP
reconciliation is included in a table later in the release under
the heading "GAAP to Non-GAAP Reconciliation."
Net sales for the first quarter of 2019 increased 0.6% to
approximately $1.92 billion.
Consolidated same store sales were flat. First quarter 2018
consolidated same store sales decreased 2.5%, 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 were pleased with our start to 2019, delivering higher
merchandise margins and first quarter earnings per diluted share
above last year. Same store sales turned positive in March and
remained positive in April, as we started to see the benefits of
our key strategies and investments," said Edward W. Stack, Chairman and Chief Executive
Officer. "We are very enthusiastic about our business and are
pleased to increase our full year earnings outlook."
"During the first quarter, we made great progress in executing
against our strategic priorities and investments as we remain
focused on improving the in-store and online experience for our
athletes and driving productivity improvements across our
business," added Lauren R. Hobart,
President. "As we continue to build the best omni-channel
experience in sporting goods, we see significant opportunity to
drive competitive advantage in the marketplace and strengthen our
leadership position."
Omni-channel Development
eCommerce sales for the first quarter of 2019 increased 15%.
eCommerce penetration for the first quarter of 2019 was
approximately 13% of total net sales, compared to approximately 11%
during the first quarter of 2018.
In the first quarter, the Company opened one new Golf Galaxy
store, relocated one DICK'S Sporting Goods store, and closed two
DICK'S Sporting Goods stores. As of May 4, 2019, the
Company operated 727 DICK'S Sporting Goods stores in 47 states,
with approximately 38.6 million square feet, 95 Golf Galaxy stores
in 32 states, with approximately 2.0 million square feet, and 35
Field & Stream stores in 16 states, with approximately 1.7
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 first quarter
of 2019 with approximately $92.4 million in
cash and cash equivalents and approximately $369.5 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 $414 million to
shareholders through share repurchases and quarterly dividends.
Total inventory increased 16.2% at the end of the first quarter
of 2019 as compared to the end of the first quarter of 2018. This
planned increase was due primarily to strategic investments to
support key growth categories.
Capital Allocation
On May 24, 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 June 28, 2019 to stockholders of record at the close
of business on June 14, 2019.
During the first quarter of 2019, the Company repurchased
approximately 2.97 million shares of its common stock at an average
cost of $36.15 per share, for a total
cost of $107.3 million. As of
May 4, 2019, the Company has
approximately $326 million remaining
under its authorization that extends through 2021.
During the first three weeks of the second quarter, the Company
repurchased additional shares of its common stock for a total cost
of $78.5 million. As of
May 24, 2019, the Company has
approximately $248 million remaining
under its authorization.
Full Year 2019 Outlook
- Based on an estimated 91.5 million diluted shares outstanding,
the Company currently projects earnings per diluted share to be
approximately $3.20 to 3.40. The
Company's earnings per diluted share guidance includes
approximately $30 million of net
investments in business transformation initiatives. The Company
reported earnings per diluted share of $3.24 for the 52 weeks ended February 2, 2019.
- Consolidated same store sales are currently expected to be
slightly positive to an increase of 2%, compared to a 3.1% decrease
in 2018. The Company expects to deliver positive consolidated same
store sales beginning in the second quarter.
- The Company expects to open seven new DICK'S Sporting Goods
stores and relocate three DICK'S Sporting Goods stores in 2019. The
Company also expects to open two new Golf Galaxy stores and
relocate one Golf Galaxy store in 2019. Six of the new stores are
expected to open during the third quarter.
- 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 first 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 our control. Our 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;
our expectation that we will deliver positive quarterly comp sales
beginning in the second quarter; our investments in business
transformation initiatives; anticipated store openings and store
relocations; 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; our eCommerce platform not producing the anticipated
benefits within the expected time-frame or at all; risks relating
to our 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 that
we devote 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; 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 our ability to identify
new trends and have the right trending products in our stores and
on our website; 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 our 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 our
information systems; factors affecting our vendors, including
supply chain and currency risks; talent needs and the loss of
Edward W. Stack, our Chairman and
Chief Executive Officer; developments with sports leagues,
professional athletes or sports superstars; weather-related
disruptions and seasonality of our business; and risks associated
with being a controlled company.
For additional information on these and other factors that could
affect our actual results, see our risk factors set forth in our
filings with the Securities and Exchange Commission ("SEC"),
including our most recent Annual Report filed with the SEC
on March 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 May 4, 2019, the Company
operated 727 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 DICK'S Team Sports
HQ, an all-in-one youth sports digital platform offering
scheduling, communications and live scorekeeping through its
GameChanger mobile apps, free league management services, custom
uniforms and fan wear and access to donations and
sponsorships. 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
|
|
|
May 4,
2019
|
|
% of
Sales(2)
|
|
May 5,
2018
|
|
% of
Sales(2)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,920,677
|
|
|
100.00
|
%
|
|
$
|
1,909,719
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and
distribution costs (1)
|
|
1,356,868
|
|
|
70.65
|
|
|
1,349,350
|
|
|
70.66
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
563,809
|
|
|
29.35
|
|
|
560,369
|
|
|
29.34
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
487,158
|
|
|
25.36
|
|
|
470,328
|
|
|
24.63
|
|
Pre-opening
expenses
|
|
578
|
|
|
0.03
|
|
|
2,709
|
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
76,073
|
|
|
3.96
|
|
|
87,332
|
|
|
4.57
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
3,081
|
|
|
0.16
|
|
|
2,656
|
|
|
0.14
|
|
Other (income)
expense
|
|
(6,738)
|
|
|
(0.35)
|
|
|
886
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
79,730
|
|
|
4.15
|
|
|
83,790
|
|
|
4.39
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
22,205
|
|
|
1.16
|
|
|
23,705
|
|
|
1.24
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
57,525
|
|
|
3.00
|
%
|
|
$
|
60,085
|
|
|
3.15
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.62
|
|
|
|
|
$
|
0.59
|
|
|
|
Diluted
|
|
$
|
0.61
|
|
|
|
|
$
|
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
92,887
|
|
|
|
|
101,384
|
|
|
|
Diluted
|
|
94,388
|
|
|
|
|
102,153
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
May 4,
2019
|
|
May 5,
2018
|
|
February 2,
2019
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
92,423
|
|
|
$
|
104,599
|
|
|
$
|
113,653
|
|
Accounts receivable,
net
|
|
52,382
|
|
|
67,225
|
|
|
37,970
|
|
Income taxes
receivable
|
|
4,435
|
|
|
4,018
|
|
|
6,135
|
|
Inventories,
net
|
|
2,142,022
|
|
|
1,842,897
|
|
|
1,824,696
|
|
Prepaid expenses and
other current assets
|
|
148,442
|
|
|
144,827
|
|
|
139,944
|
|
Total current
assets
|
|
2,439,704
|
|
|
2,163,566
|
|
|
2,122,398
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,478,910
|
|
|
1,644,388
|
|
|
1,565,271
|
|
Operating lease
assets
|
|
2,484,660
|
|
|
—
|
|
|
—
|
|
Intangible assets,
net
|
|
128,563
|
|
|
134,979
|
|
|
130,166
|
|
Goodwill
|
|
250,476
|
|
|
250,476
|
|
|
250,476
|
|
Other
assets:
|
|
|
|
|
|
|
Deferred income
taxes
|
|
12,858
|
|
|
11,842
|
|
|
13,243
|
|
Other
|
|
116,823
|
|
|
114,163
|
|
|
105,595
|
|
Total other
assets
|
|
129,681
|
|
|
126,005
|
|
|
118,838
|
|
TOTAL
ASSETS
|
|
$
|
6,911,994
|
|
|
$
|
4,319,414
|
|
|
$
|
4,187,149
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
932,055
|
|
|
$
|
791,646
|
|
|
$
|
889,908
|
|
Accrued
expenses
|
|
320,603
|
|
|
302,985
|
|
|
364,342
|
|
Operating lease
liabilities
|
|
367,768
|
|
|
—
|
|
|
—
|
|
Income taxes
payable
|
|
38,772
|
|
|
29,698
|
|
|
20,142
|
|
Deferred revenue and
other liabilities
|
|
196,190
|
|
|
188,226
|
|
|
230,247
|
|
Total current
liabilities
|
|
1,855,388
|
|
|
1,312,555
|
|
|
1,504,639
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
Revolving credit
borrowings
|
|
369,500
|
|
|
280,100
|
|
|
—
|
|
Long-term operating
lease liabilities
|
|
2,683,561
|
|
|
—
|
|
|
—
|
|
Deferred income
taxes
|
|
8,073
|
|
|
17,190
|
|
|
11,776
|
|
Other long-term
liabilities
|
|
169,437
|
|
|
811,359
|
|
|
766,573
|
|
Total long-term
liabilities
|
|
3,230,571
|
|
|
1,108,649
|
|
|
778,349
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Common
stock
|
|
668
|
|
|
754
|
|
|
693
|
|
Class B common
stock
|
|
245
|
|
|
246
|
|
|
245
|
|
Additional paid-in
capital
|
|
1,220,543
|
|
|
1,185,522
|
|
|
1,214,287
|
|
Retained
earnings
|
|
2,478,129
|
|
|
2,262,552
|
|
|
2,455,192
|
|
Accumulated other
comprehensive loss
|
|
(139)
|
|
|
(100)
|
|
|
(120)
|
|
Treasury stock, at
cost
|
|
(1,873,411)
|
|
|
(1,550,764)
|
|
|
(1,766,136)
|
|
Total stockholders'
equity
|
|
1,826,035
|
|
|
1,898,210
|
|
|
1,904,161
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
6,911,994
|
|
|
$
|
4,319,414
|
|
|
$
|
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)
|
|
|
|
13 Weeks
Ended
|
|
|
May 4,
2019
|
|
May 5,
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
|
$
|
57,525
|
|
|
$
|
60,085
|
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
|
Depreciation,
amortization, and other
|
|
66,024
|
|
|
56,666
|
|
Deferred income
taxes
|
|
(720)
|
|
|
1,557
|
|
Stock-based
compensation
|
|
11,907
|
|
|
11,666
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(15,433)
|
|
|
(2,463)
|
|
Inventories
|
|
(317,326)
|
|
|
(112,332)
|
|
Prepaid expenses and
other assets
|
|
(7,983)
|
|
|
(4,815)
|
|
Accounts
payable
|
|
22,531
|
|
|
19,958
|
|
Accrued
expenses
|
|
(43,100)
|
|
|
(39,322)
|
|
Income taxes payable /
receivable
|
|
20,330
|
|
|
19,637
|
|
Deferred construction
allowances
|
|
16,387
|
|
|
5,734
|
|
Deferred revenue and
other liabilities
|
|
(32,294)
|
|
|
(35,470)
|
|
Net cash used in
operating activities
|
|
(222,152)
|
|
|
(19,099)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
expenditures
|
|
(46,882)
|
|
|
(49,349)
|
|
Net cash used in
investing activities
|
|
(46,882)
|
|
|
(49,349)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Revolving credit
borrowings
|
|
635,300
|
|
|
692,800
|
|
Revolving credit
repayments
|
|
(265,800)
|
|
|
(412,700)
|
|
Payments on other
long-term debt and finance lease obligations
|
|
(1,330)
|
|
|
(1,333)
|
|
Construction allowance
receipts
|
|
—
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
213
|
|
|
—
|
|
Minimum tax
withholding requirements
|
|
(5,859)
|
|
|
(3,919)
|
|
Cash paid for treasury
stock
|
|
(107,305)
|
|
|
(107,917)
|
|
Cash dividend paid to
stockholders
|
|
(27,012)
|
|
|
(23,728)
|
|
Increase (decrease) in
bank overdraft
|
|
19,616
|
|
|
(71,387)
|
|
Net cash provided by
financing activities
|
|
247,823
|
|
|
71,816
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH
EQUIVALENTS
|
|
(19)
|
|
|
(22)
|
|
NET (DECREASE)
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
(21,230)
|
|
|
3,346
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
113,653
|
|
|
101,253
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
92,423
|
|
|
$
|
104,599
|
|
Store Count and Square Footage
The store that opened during the first quarter of 2019 is as
follows:
Store
|
|
Market
|
|
Concept
|
Carolina Place,
NC
|
|
Charlotte
|
|
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
|
|
Closed
stores
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ending
stores
|
|
727
|
|
|
130
|
|
|
857
|
|
|
724
|
|
|
129
|
|
|
853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relocated
stores
|
|
1
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
2
|
|
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
|
|
|
(1)
|
Includes the
Company's Golf Galaxy, Field & Stream and other specialty
concept stores. In some markets we operate DICK'S Sporting Goods
stores adjacent to our specialty concept 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 concept store reconciliations,
as applicable. As of May 4, 2019, the Company operated 24
combo stores.
|
|
|
(2)
|
Column may not add
due to rounding.
|
DICK'S SPORTING
GOODS, INC.
|
GAAP to NON-GAAP
RECONCILIATION - UNAUDITED
|
(Dollars in
thousands, except per share amounts)
|
|
|
13 Weeks Ended May
4, 2019
|
|
|
|
|
|
|
Selling,
general and
administrative
expenses
|
Income
before
income
taxes
|
Net income
(3)
|
Earnings
per diluted
share
|
GAAP Basis
|
$
|
487,158
|
|
$
|
79,730
|
|
$
|
57,525
|
|
$
|
0.61
|
|
% of Net
Sales
|
25.36
|
%
|
4.15
|
%
|
3.00
|
%
|
|
Non-cash asset
impairment (1)
|
(7,623)
|
|
7,623
|
|
5,641
|
|
|
Litigation
contingency settlement (2)
|
6,411
|
|
(6,411)
|
|
(4,744)
|
|
|
Non-GAAP
Basis
|
$
|
485,946
|
|
$
|
80,942
|
|
$
|
58,422
|
|
$
|
0.62
|
|
% of Net
Sales
|
25.30
|
%
|
4.21
|
%
|
3.04
|
%
|
|
|
(1)
|
Non-cash impairment
charge to reduce the carrying value of a corporate aircraft held
for sale to its fair market value.
|
(2)
|
Settlement of a
previously accrued litigation contingency.
|
(3)
|
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.
|
|
13 Weeks
Ended
|
|
|
May 4,
2019
|
|
May 5,
2018
|
|
|
(dollars in thousands)
|
Gross capital
expenditures
|
|
$
|
(46,882)
|
|
|
$
|
(49,349)
|
|
Proceeds from
sale-leaseback transactions
|
|
—
|
|
|
—
|
|
Deferred construction
allowances
|
|
16,387
|
|
|
5,734
|
|
Construction
allowance receipts
|
|
—
|
|
|
—
|
|
Net capital
expenditures
|
|
$
|
(30,495)
|
|
|
$
|
(43,615)
|
|
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SOURCE DICK'S Sporting Goods, Inc.