PITTSBURGH, March 10, 2020 /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 fourth quarter and full year
ended February 1, 2020.
Fourth Quarter Results
The Company reported consolidated net income for the fourth
quarter ended February 1, 2020 of
$69.8 million, or $0.81 per diluted share. The Company reported
consolidated net income for the fourth quarter ended February 2, 2019 of $102.6
million, or $1.07 per diluted
share.
On a non-GAAP basis, the Company reported consolidated net
income for the fourth quarter ended February
1, 2020 of $113.3 million, or
$1.32 per diluted share. Fourth
quarter 2019 non-GAAP results exclude pre-tax hunt restructuring
charges of $48.8 million, which
included $35.7 million of non-cash
impairments related to a trademark and store assets and a
$13.1 million write-down of
inventory, resulting from the Company's decision to remove the hunt
department from approximately 440 additional DICK'S Sporting Goods
stores in fiscal 2020. There were no non-GAAP adjustments to
consolidated net income for the fourth quarter ended February 2, 2019. 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 fourth quarter of 2019 increased 4.7% to
approximately $2.61 billion.
Consolidated same store sales increased 5.3%. Fourth quarter 2018
consolidated same store sales decreased 2.2%, 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 fourth quarter results.
Despite the compressed holiday selling season and the challenging
conditions we faced with unseasonably warm weather, we delivered a
5.3% comp sales increase, supported by 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. "During 2019, we made meaningful changes across
our business, which fueled our strongest annual comp sales gain
since 2012 and a 14% increase in non-GAAP earnings per diluted
share over 2018. I'd like to thank all our teammates for their hard
work and commitment to DICK'S Sporting Goods, which made this
performance possible."
Mr. Stack continued, "As we enter 2020, we remain enthusiastic
about our business and have been pleased with our start to the
year. We are excited to continue to focus on and enhance our 2019
strategies, which include optimizing our inventory and floor space,
delivering differentiated merchandising and driving athlete
engagement across all channels. Our outlook balances this
enthusiasm with a degree of caution over the coronavirus and how it
may impact our business."
Lauren R. Hobart, President,
added, "In 2019, we developed strong momentum in our stores and
online. Our efforts demonstrate that when we focus on serving our
athletes, we can drive a meaningful impact on sales. We
remain focused on driving positive results through an improved
service and selling culture, while continuing to improve our
omni-channel experience through faster and more reliable delivery
as well as improved functionality and performance of our
website.
Omni-channel Development
eCommerce sales for the fourth quarter of 2019 increased 15%.
eCommerce penetration for the fourth quarter of 2019 was
approximately 25% of total net sales, compared to approximately 23%
during the fourth quarter of 2018.
In the fourth quarter, the Company closed seven DICK'S Sporting
Goods stores and one Golf Galaxy store. As of February 1,
2020, the Company operated 726 DICK'S Sporting Goods stores in 47
states, with approximately 38.5 million square feet, 94 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.
Balance Sheet
The Company ended the fourth quarter of 2019 with approximately
$69 million in cash and cash
equivalents and approximately $224
million in outstanding borrowings under its $1.6 billion revolving credit facility. Over the
course of the last 12 months, the Company continued to invest in
omni-channel growth, while returning over $500 million to shareholders through share
repurchases and quarterly dividends.
Total inventory increased 21% at the end of
the fourth quarter of 2019 as compared to the
end of the fourth quarter of 2018. This planned
increase was due primarily to strategic investments to support key
growth categories.
Full Year Results
The Company reported consolidated net income for the 52 weeks
ended February 1, 2020 of
$297.5 million, or $3.34 per diluted share. For the 52 weeks ended
February 2, 2019, the Company
reported consolidated net income of $319.9
million, or $3.24 per diluted
share.
On a non-GAAP basis, the Company reported consolidated net
income for the 52 weeks ended February 1,
2020 of $329.1 million, or
$3.69 per diluted share, which
excludes hunt restructuring charges, a gain on the sale of
subsidiaries, non-cash asset impairments and the favorable
settlement of a litigation contingency. There were no non-GAAP
adjustments to consolidated net income for the 52 weeks ended
February 2, 2019. 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 52 weeks ended February
1, 2020 increased 3.7% to approximately $8.75 billion. Consolidated same store sales also
increased 3.7%. Consolidated same store sales decreased 3.1% for
the 52 weeks ended February 2, 2019,
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 March 6, 2020, the Company's Board of Directors
authorized and declared a quarterly dividend in the amount of
$0.3125 per share on the Company's
Common Stock and Class B Common Stock. The dividend is payable in
cash on March 27, 2020 to stockholders of record at the close
of business on March 20, 2020. This dividend represents an
increase of 13.6% over the Company's previous quarterly per share
amount and is equivalent to an annualized dividend of $1.25 per share.
During the fourth quarter of 2019, the Company repurchased
approximately 759,000 shares of its common stock at an average cost
of $47.53 per share, for a total cost
of $36.1 million. Throughout fiscal
2019, the Company repurchased approximately 11.1 million shares of
its common stock at an average cost of $36.40 per share, for a total cost of
$402.2 million. Under the five-year
share repurchase program authorized by the Board of Directors in
March 2016, the Company has
repurchased approximately $969
million of common stock and has approximately $31 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 2020 Outlook
- The Company's outlook balances the enthusiasm it has for its
business with the rapidly evolving coronavirus situation.
Accordingly, the low-end of the Company's outlook includes some
caution related to supply chain disruption potentially impacting
its results beginning in the second quarter.
- Based on an estimated 85.5 million diluted shares outstanding,
the Company currently projects earnings per diluted share to be
approximately $3.60 to 4.00. The
Company's earnings per diluted share guidance only includes the
expectation of share repurchases to fully offset dilution in 2020.
The Company reported earnings per diluted share of $3.34 for the 52 weeks ended February 1, 2020. On a non-GAAP basis, the
Company reported earnings per diluted share of $3.69 for the 52 weeks ended February 1, 2020.
- Consolidated same store sales are currently expected to be
approximately flat to an increase of 2%, compared to a 3.7%
increase in 2019.
- The Company expects to open nine new DICK'S Sporting Goods
stores and six new Golf Galaxy stores in 2020. The Company also
expects to relocate 14 DICK'S Sporting Goods stores and relocate
three Golf Galaxy stores in 2020.
- In 2020, the Company anticipates capital expenditures to be in
the range of $330 to 390 million on a
gross basis and in the range of $235
to 295 million on a net basis. In 2019, capital expenditures were
$217 million on a gross basis and
$180 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 fourth
quarter and full year 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. Comparisons of 2019 non-GAAP financial measures are
made to the comparable GAAP financial measures from the prior
period because there were no non-GAAP items excluded during the
prior period. We believe this comparison is helpful to evaluate the
Company's fourth quarter and full year performance relative to last
year. 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 2020 outlook for earnings
and sales; plans to remove hunt from approximately 440 additional
DICK'S Sporting Goods stores, optimize inventory and floor space,
deliver differentiated merchandise, drive athlete engagement across
all channels, provide faster and more reliable delivery, and
improve the functionality and performance of the website; capital
expenditures; share repurchases and dividends; and anticipated
store openings and store relocations.
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 impact of strategic decisions relating to 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; the
potential impact of the coronavirus outbreak; supply chain
disruption, including those caused by extreme weather, natural
disasters, and public health concerns; 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 November 26, 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 February 1,
2020, the Company operated 726 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
|
|
|
February
1,
2020
|
|
%
of
Sales
(2)
|
|
February
2,
2019
|
|
% of
Sales
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,608,650
|
|
|
100.00
|
%
|
|
$
|
2,492,090
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy
and distribution costs (1)
|
|
1,875,614
|
|
|
71.90
|
|
|
1,797,511
|
|
|
72.13
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
733,036
|
|
|
28.10
|
|
|
694,579
|
|
|
27.87
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
633,744
|
|
|
24.29
|
|
|
552,232
|
|
|
22.16
|
|
Pre-opening
expenses
|
|
381
|
|
|
0.01
|
|
|
338
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
98,911
|
|
|
3.79
|
|
|
142,009
|
|
|
5.70
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
4,103
|
|
|
0.16
|
|
|
1,937
|
|
|
0.08
|
|
Other (income)
expense
|
|
(4,984)
|
|
|
(0.19)
|
|
|
3,798
|
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
99,792
|
|
|
3.83
|
|
|
136,274
|
|
|
5.47
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
29,973
|
|
|
1.15
|
|
|
33,719
|
|
|
1.35
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
69,819
|
|
|
2.68
|
%
|
|
$
|
102,555
|
|
|
4.12
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.83
|
|
|
|
|
$
|
1.09
|
|
|
|
Diluted
|
|
$
|
0.81
|
|
|
|
|
$
|
1.07
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON
SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
83,995
|
|
|
|
|
94,193
|
|
|
|
Diluted
|
|
85,875
|
|
|
|
|
95,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
52 Weeks
Ended
|
|
|
February
1,
2020
|
|
%
of
Sales
(2)
|
|
February
2,
2019
|
|
% of
Sales
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
8,750,743
|
|
|
100.00
|
%
|
|
$
|
8,436,570
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy
and distribution costs (1)
|
|
6,196,185
|
|
|
70.81
|
|
|
5,998,788
|
|
|
71.10
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
2,554,558
|
|
|
29.19
|
|
|
2,437,782
|
|
|
28.90
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
2,173,677
|
|
|
24.84
|
|
|
1,986,576
|
|
|
23.55
|
|
Pre-opening
expenses
|
|
5,268
|
|
|
0.06
|
|
|
6,473
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
375,613
|
|
|
4.29
|
|
|
444,733
|
|
|
5.27
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
subsidiaries
|
|
(33,779)
|
|
|
(0.39)
|
|
|
—
|
|
|
—
|
|
Interest
expense
|
|
17,012
|
|
|
0.19
|
|
|
10,248
|
|
|
0.12
|
|
Other (income)
expense
|
|
(15,324)
|
|
|
(0.18)
|
|
|
2,565
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
407,704
|
|
|
4.66
|
|
|
431,920
|
|
|
5.12
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
110,242
|
|
|
1.26
|
|
|
112,056
|
|
|
1.33
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
297,462
|
|
|
3.40
|
%
|
|
$
|
319,864
|
|
|
3.79
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
3.40
|
|
|
|
|
$
|
3.27
|
|
|
|
Diluted
|
|
$
|
3.34
|
|
|
|
|
$
|
3.24
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON
SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
87,502
|
|
|
|
|
97,743
|
|
|
|
Diluted
|
|
89,066
|
|
|
|
|
98,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
February
1,
2020
|
|
February
2,
2019
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
69,334
|
|
|
$
|
113,653
|
|
Accounts receivable,
net
|
|
53,173
|
|
|
37,970
|
|
Income taxes
receivable
|
|
5,762
|
|
|
6,135
|
|
Inventories,
net
|
|
2,202,275
|
|
|
1,824,696
|
|
Prepaid expenses and
other current assets
|
|
79,472
|
|
|
139,944
|
|
Total current
assets
|
|
2,410,016
|
|
|
2,122,398
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,415,728
|
|
|
1,565,271
|
|
Operating lease
assets
|
|
2,313,846
|
|
|
—
|
|
Intangible assets,
net
|
|
94,768
|
|
|
130,166
|
|
Goodwill
|
|
245,857
|
|
|
250,476
|
|
Other
assets:
|
|
|
|
|
Deferred income
taxes
|
|
14,412
|
|
|
13,243
|
|
Other
|
|
133,933
|
|
|
105,595
|
|
Total other
assets
|
|
148,345
|
|
|
118,838
|
|
TOTAL
ASSETS
|
|
$
|
6,628,560
|
|
|
$
|
4,187,149
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Accounts
payable
|
|
$
|
1,001,589
|
|
|
$
|
889,908
|
|
Accrued
expenses
|
|
415,501
|
|
|
364,342
|
|
Operating lease
liabilities
|
|
422,970
|
|
|
—
|
|
Income taxes
payable
|
|
10,455
|
|
|
20,142
|
|
Deferred revenue and
other liabilities
|
|
225,959
|
|
|
230,247
|
|
Total current
liabilities
|
|
2,076,474
|
|
|
1,504,639
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Revolving credit
borrowings
|
|
224,100
|
|
|
—
|
|
Long-term operating
lease liabilities
|
|
2,453,346
|
|
|
—
|
|
Deferred income
taxes
|
|
9,187
|
|
|
11,776
|
|
Other long-term
liabilities
|
|
133,855
|
|
|
766,573
|
|
Total long-term
liabilities
|
|
2,820,488
|
|
|
778,349
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
Common
stock
|
|
593
|
|
|
693
|
|
Class B common
stock
|
|
243
|
|
|
245
|
|
Additional paid-in
capital
|
|
1,253,867
|
|
|
1,214,287
|
|
Retained
earnings
|
|
2,645,281
|
|
|
2,455,192
|
|
Accumulated other
comprehensive loss
|
|
(120)
|
|
|
(120)
|
|
Treasury stock, at
cost
|
|
(2,168,266)
|
|
|
(1,766,136)
|
|
Total stockholders'
equity
|
|
1,731,598
|
|
|
1,904,161
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
6,628,560
|
|
|
$
|
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)
|
|
|
|
Fiscal Year
Ended
|
|
|
February
1,
2020
|
|
February
2,
2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
|
$
|
297,462
|
|
|
$
|
319,864
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation,
amortization, and other
|
|
270,448
|
|
|
244,764
|
|
Impairment of
trademark
|
|
28,296
|
|
|
—
|
|
Deferred income
taxes
|
|
(1,160)
|
|
|
(5,258)
|
|
Stock-based
compensation
|
|
43,493
|
|
|
41,941
|
|
Gain on sale of
subsidiaries
|
|
(33,779)
|
|
|
—
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
400
|
|
|
16,215
|
|
Inventories
|
|
(377,579)
|
|
|
(94,131)
|
|
Prepaid expenses and
other assets
|
|
6,401
|
|
|
10,980
|
|
Accounts
payable
|
|
94,202
|
|
|
125,632
|
|
Accrued
expenses
|
|
37,826
|
|
|
21,372
|
|
Income taxes payable /
receivable
|
|
(9,314)
|
|
|
7,964
|
|
Deferred construction
allowances
|
|
37,959
|
|
|
27,730
|
|
Deferred revenue and
other liabilities
|
|
9,957
|
|
|
(4,318)
|
|
Net cash provided by
operating activities
|
|
404,612
|
|
|
712,755
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
expenditures
|
|
(217,461)
|
|
|
(198,219)
|
|
Proceeds from sale of
other assets
|
|
49,103
|
|
|
—
|
|
Proceeds from sale of
subsidiaries, net of cash sold
|
|
40,387
|
|
|
—
|
|
Deposits and purchases
of other assets
|
|
(1,300)
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(129,271)
|
|
|
(198,219)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Revolving credit
borrowings
|
|
2,263,550
|
|
|
1,875,400
|
|
Revolving credit
repayments
|
|
(2,039,450)
|
|
|
(1,875,400)
|
|
Payments on other
long-term debt and finance lease obligations
|
|
(56,851)
|
|
|
(5,242)
|
|
Proceeds from exercise
of stock options
|
|
5,565
|
|
|
—
|
|
Minimum tax
withholding requirements
|
|
(9,470)
|
|
|
(5,428)
|
|
Cash paid for treasury
stock
|
|
(402,240)
|
|
|
(323,352)
|
|
Cash dividends paid to
stockholders
|
|
(98,312)
|
|
|
(89,273)
|
|
Increase (decrease) in
bank overdraft
|
|
17,548
|
|
|
(78,799)
|
|
Net cash used in
financing activities
|
|
(319,660)
|
|
|
(502,094)
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
—
|
|
|
(42)
|
|
NET (DECREASE)
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
(44,319)
|
|
|
12,400
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
113,653
|
|
|
101,253
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
69,334
|
|
|
$
|
113,653
|
|
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
|
|
|
130
|
|
|
859
|
|
|
716
|
|
|
130
|
|
|
846
|
|
Q1 New
stores
|
|
—
|
|
|
1
|
|
|
1
|
|
|
8
|
|
|
—
|
|
|
8
|
|
Q2 New
stores
|
|
2
|
|
|
2
|
|
|
4
|
|
|
5
|
|
|
—
|
|
|
5
|
|
Q3 New
stores
|
|
6
|
|
|
1
|
|
|
7
|
|
|
6
|
|
|
—
|
|
|
6
|
|
Q4 New
stores
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Closed
stores
|
|
11
|
|
|
10
|
|
|
21
|
|
|
6
|
|
|
—
|
|
|
6
|
|
Ending stores
(2)
|
|
726
|
|
|
124
|
|
|
850
|
|
|
729
|
|
|
130
|
|
|
859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relocated
stores
|
|
3
|
|
|
2
|
|
|
5
|
|
|
4
|
|
|
1
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Square
Footage:
|
(in
millions)
|
|
|
|
|
DICK'S
Sporting
Goods(1)
|
|
Specialty
Concept
Stores(1)(2)
|
|
Total(3)
|
Q1 2018
|
|
|
38.4
|
|
|
3.7
|
|
|
42.1
|
|
Q2 2018
|
|
|
38.7
|
|
|
3.7
|
|
|
42.4
|
|
Q3 2018
|
|
|
38.8
|
|
|
3.7
|
|
|
42.4
|
|
Q4 2018
|
|
|
38.6
|
|
|
3.7
|
|
|
42.3
|
|
Q1 2019
|
|
|
38.6
|
|
|
3.7
|
|
|
42.2
|
|
Q2 2019
|
|
|
38.6
|
|
|
3.7
|
|
|
42.3
|
|
Q3 2019
|
|
|
38.8
|
|
|
3.4
|
|
|
42.2
|
|
Q4 2019
|
|
|
38.5
|
|
|
3.4
|
|
|
41.8
|
|
(1)
|
Includes the
Company's Golf Galaxy, Field & Stream and clearance 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 February 1, 2020, the Company operated 25
combo stores.
|
|
|
(2)
|
Store count and
square footage have been updated to reflect three re-opened DICK'S
Sporting Goods stores that are being operated as clearance
stores.
|
|
|
(3)
|
Column may not add
due to rounding.
|
DICK'S SPORTING
GOODS, INC.
|
GAAP to NON-GAAP
RECONCILIATIONS - UNAUDITED
|
(Dollars in
thousands, except per share amounts)
|
|
|
13 Weeks Ended
February 1, 2020
|
|
Gross
profit
|
Selling,
general
and
administrative
expenses
|
Income
before
income
taxes
|
Net
income
(2)
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
|
733,036
|
|
$
|
633,744
|
|
$
|
99,792
|
|
$
|
69,819
|
|
$
|
0.81
|
|
% of Net
Sales
|
28.10
|
%
|
24.29
|
%
|
3.83
|
%
|
2.68
|
%
|
|
Hunt restructuring
charges (1)
|
13,135
|
|
(35,650)
|
|
48,785
|
|
43,458
|
|
|
Non-GAAP
Basis
|
$
|
746,171
|
|
$
|
598,094
|
|
$
|
148,577
|
|
$
|
113,277
|
|
$
|
1.32
|
|
% of Net
Sales
|
28.60
|
%
|
22.93
|
%
|
5.70
|
%
|
4.34
|
%
|
|
(1)
|
Hunt restructuring
charges of $48.8 million included $35.7 million of non-cash
impairments of a trademark and store assets and a $13.1 million
write-down of inventory.
|
|
|
(2)
|
Except for the
impairment of the trademark, the provision for income taxes for
non-GAAP adjustments was calculated at 26%, which approximates the
Company's blended tax rate. The trademark impairment charge of
$28.3 million is not deductible for tax purposes.
|
|
52 Weeks Ended
February 1, 2020
|
|
Gross
profit
|
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
|
$
|
2,554,558
|
|
$
|
2,173,677
|
|
$
|
375,613
|
|
$
|
(33,779)
|
|
$
|
407,704
|
|
$
|
297,462
|
|
$
|
3.34
|
|
% of Net
Sales
|
29.19
|
%
|
24.84
|
%
|
4.29
|
%
|
(0.39)
|
%
|
4.66
|
%
|
3.40
|
%
|
|
Hunt
restructuring
charges (1)
|
13,135
|
|
(44,588)
|
|
57,723
|
|
—
|
|
57,723
|
|
50,072
|
|
|
Gain on sale of
subsidiaries (2)
|
—
|
|
—
|
|
—
|
|
33,779
|
|
(33,779)
|
|
(24,996)
|
|
|
Other asset
impairments (3)
|
—
|
|
(15,253)
|
|
15,253
|
|
—
|
|
15,253
|
|
11,287
|
|
|
Litigation
contingency
settlement (4)
|
—
|
|
6,411
|
|
(6,411)
|
|
—
|
|
(6,411)
|
|
(4,744)
|
|
|
Non-GAAP
Basis
|
$
|
2,567,693
|
|
$
|
2,120,247
|
|
$
|
442,178
|
|
$
|
—
|
|
$
|
440,490
|
|
$
|
329,081
|
|
$
|
3.69
|
|
% of Net
Sales
|
29.34
|
%
|
24.23
|
%
|
5.05
|
%
|
—
|
%
|
5.03
|
%
|
3.76
|
%
|
|
(1)
|
Hunt restructuring
charges of $57.7 million included $35.7 million of non-cash
impairments of a trademark and store assets, a $13.1 million
write-down of inventory and an $8.9 million charge related to our
exit from eight Field & Stream stores in the third quarter,
which were subleased to Sportsman's Warehouse.
|
|
|
(2)
|
Gain on sale of Blue
Sombrero and Affinity Sports subsidiaries.
|
|
|
(3)
|
Non-cash impairment
charges to reduce the carrying value of a corporate aircraft to its
fair market value, which was subsequently sold.
|
|
|
(4)
|
Favorable settlement
of a previously accrued litigation contingency.
|
|
|
(5)
|
Except for the
impairment of the trademark, the provision for income taxes for
non-GAAP adjustments was calculated at 26%, which approximates the
Company's blended tax rate. The trademark impairment charge of
$28.3 million is not deductible for tax purposes.
|
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.
|
|
Fiscal Year
Ended
|
|
|
February
1,
2020
|
|
February
2,
2019
|
|
|
(in thousands)
|
Gross capital
expenditures
|
|
$
|
(217,461)
|
|
|
$
|
(198,219)
|
|
Deferred construction
allowances
|
|
37,959
|
|
|
27,730
|
|
Net capital
expenditures
|
|
$
|
(179,502)
|
|
|
$
|
(170,489)
|
|
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SOURCE DICK'S Sporting Goods, Inc.