PITTSBURGH, March 12, 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 fourth quarter and full year ended
February 2, 2019.
Fourth Quarter Results (13 weeks compared to 14 weeks last
year)
The Company reported consolidated net income for the fourth
quarter ended February 2, 2019 of
$102.6 million, or $1.07 per diluted share, which was negatively
impacted by approximately $0.08 per
diluted share versus last year due to the shifted calendar. The
Company reported consolidated net income for the fourth quarter
ended February 3, 2018 of
$116.0 million, or $1.11 per diluted share, which was positively
impacted by approximately $0.09 per
diluted share for the 14th week.
On a non-GAAP basis, the Company reported consolidated net
income for the fourth quarter ended February 3,
2018 of $127.3 million, or $1.22 per diluted
share, which was positively impacted by approximately $0.09 per diluted share for the
14th week. GAAP to non-GAAP reconciliations are
included in a table later in the release under the heading "GAAP to
Non-GAAP Reconciliations."
Adjusted for the calendar shift due to the 53rd week
in fiscal 2017, which the Company believes is the best view of its
business, consolidated same store sales decreased 2.2% on a 13-week
to 13-week comparable basis. Net sales for the fourth quarter of
2018 decreased 6.5% to approximately $2.49
billion. Based on an unshifted calendar, consolidated same
store sales for the fourth quarter decreased 3.7%. Fourth
quarter 2017 consolidated same store sales decreased 2.0%.
"We are pleased with our fourth quarter results. Our core
business performed quite well, as our athletes have responded
positively to many of our initiatives, resulting in comp sales
gains across key categories and double digit percentage increases
in eCommerce and private brand sales," said Edward W. Stack, Chairman and Chief Executive
Officer. "For 2018, we delivered earnings near the high end of our
expectations, which represents an 8% increase over last year. This
achievement is the direct result of the hard work and commitment
from our over 40,000 talented teammates."
Mr. Stack continued, "As we look forward to 2019, we are
enthusiastic about our business and expect to return to positive
comp sales beginning in the second quarter. We will continue to
make significant investments in our business to meet our athletes'
ever-changing needs and grow our leadership position in the
industry."
"In 2019, we are focused on enhancing our athletes' experience
in our stores, improving our eCommerce fulfillment capabilities and
elevating our technology talent and capabilities," added
Lauren R. Hobart, President of
DICK'S Sporting Goods. "This is an exciting time for our Company as
we remain focused on building the best omni-channel experience in
sporting goods."
Omni-channel Development
Adjusted for the calendar shift due to the 53rd week
in 2017, eCommerce sales for the fourth quarter of 2018 increased
approximately 17%. eCommerce penetration for the fourth
quarter of 2018 was approximately 23% of total net sales, compared
to approximately 19% during the fourth quarter of 2017.
In the fourth quarter, the Company closed three DICK'S Sporting
Goods stores. As of February 2, 2019, the Company operated 729
DICK'S Sporting Goods stores in 47 states, with approximately 38.6
million square feet, 94 Golf Galaxy stores in 32 states, with
approximately 1.9 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 fourth quarter of 2018 with approximately
$114 million in cash and cash
equivalents and no 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
$412 million to shareholders through
share repurchases and quarterly dividends.
Total inventory increased 6.6% at the end of
the fourth quarter of 2018 as compared to the
end of the fourth quarter of 2017. This planned
increase was due primarily to strategic investments to support key
growth categories.
Full Year Results (52 weeks compared to 53 weeks last
year)
The Company reported consolidated net income for the 52 weeks
ended February 2, 2019 of
$319.9 million, or $3.24 per diluted share. The Company reported
consolidated net income for the 53 weeks ended February 3, 2018 of $323.4
million, or $3.01 per diluted
share, which included approximately $0.09 per diluted share for the 53rd
week.
On a non-GAAP basis, the Company reported consolidated net
income for the 53 weeks ended February 3,
2018 of $324.3 million, or
$3.01 per diluted share, which also
included approximately $0.09 per
diluted share for the 53rd week. GAAP to non-GAAP
reconciliations are included in a table later in the release under
the heading "GAAP to Non-GAAP Reconciliations."
Adjusted for the calendar shift due to the 53rd week
in 2017 consolidated same store sales decreased 3.1% on a 52-week
to 52-week comparable basis. Net sales for the 52 weeks ended
February 2, 2019 decreased 1.8% from
last year's 53 week period to approximately $8.44 billion. Fiscal 2017 consolidated same
store sales decreased 0.3% on a 52-week to 52-week comparative
basis.
Capital Allocation
On February 22, 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 March 29, 2019 to stockholders of record at the close
of business on March 15, 2019. This dividend represents an
increase of approximately 22% over the Company's previous quarterly
per share amount and is equivalent to an annualized rate of
$1.10 per share.
During the fourth quarter of 2018, the Company repurchased
957,000 shares of its common stock at an average cost of
$35.23 per share, for a total cost of
$33.7 million. In total for 2018, the
Company repurchased approximately 9.6 million shares of its common
stock at an average cost of $33.78
per share, for a total cost of $323.4
million, and has approximately $433
million remaining under its authorization that extends
through 2021.
Full Year 2019 Outlook
- Based on an estimated 95 million diluted shares outstanding,
the Company currently projects earnings per diluted share to be
approximately $3.15 to 3.35, which
includes approximately $30 million,
or $0.23 per diluted share, of net
investments in business transformation initiatives. The Company's
earnings per diluted share guidance includes the expectation of
share repurchases to fully offset dilution in 2019. 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
approximately flat 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 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 and non-GAAP earnings per diluted
share, 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 comp sales beginning
in the second quarter; our investments in business transformation
initiatives; anticipated store openings and store relocations;
capital expenditures; and share repurchases.
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 brand offerings and new retail concepts; the
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
and other laws and regulations, including those changing tax rates
and imposing new taxes and surcharges; limitations on the
availability of attractive retail store sites; omni-channel growth;
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, which may be
amended from time to time, set forth in our filings with the
Securities and Exchange Commission ("SEC"), including our most
recent Annual Report filed with the SEC on March 30,
2018 and our Quarterly Report filed with the SEC on
November 29, 2018. 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 2,
2019, the Company operated 729 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
|
|
14 Weeks
Ended
|
|
|
February 2,
2019
|
|
%
of
Sales
|
|
February 3,
2018
|
|
%
of
Sales
(2)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,492,090
|
|
|
100.00
|
%
|
|
$
|
2,664,122
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and
distribution costs (1)
|
|
1,797,511
|
|
|
72.13
|
|
|
1,888,269
|
|
|
70.88
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
694,579
|
|
|
27.87
|
|
|
775,853
|
|
|
29.12
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
552,232
|
|
|
22.16
|
|
|
596,856
|
|
|
22.40
|
|
Pre-opening
expenses
|
|
338
|
|
|
0.01
|
|
|
682
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
142,009
|
|
|
5.70
|
|
|
178,315
|
|
|
6.69
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
1,937
|
|
|
0.08
|
|
|
1,728
|
|
|
0.06
|
|
Other expense
(income)
|
|
3,798
|
|
|
0.15
|
|
|
(3,694)
|
|
|
(0.14)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
136,274
|
|
|
5.47
|
|
|
180,281
|
|
|
6.77
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
33,719
|
|
|
1.35
|
|
|
64,330
|
|
|
2.41
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
102,555
|
|
|
4.12
|
%
|
|
$
|
115,951
|
|
|
4.35
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.09
|
|
|
|
|
$
|
1.11
|
|
|
|
Diluted
|
|
$
|
1.07
|
|
|
|
|
$
|
1.11
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
94,193
|
|
|
|
|
104,052
|
|
|
|
Diluted
|
|
95,490
|
|
|
|
|
104,669
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividend
declared per share
|
|
$
|
0.225
|
|
|
|
|
$
|
0.170
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
53 Weeks
Ended
|
|
|
February 2,
2019
|
|
%
of
Sales
|
|
February 3,
2018
|
|
%
of
Sales
(2)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
8,436,570
|
|
|
100.00
|
%
|
|
$
|
8,590,472
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and
distribution costs (1)
|
|
5,998,788
|
|
|
71.10
|
|
|
6,101,412
|
|
|
71.03
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
2,437,782
|
|
|
28.90
|
|
|
2,489,060
|
|
|
28.97
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
1,986,576
|
|
|
23.55
|
|
|
1,982,363
|
|
|
23.08
|
|
Pre-opening
expenses
|
|
6,473
|
|
|
0.08
|
|
|
29,123
|
|
|
0.34
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
444,733
|
|
|
5.27
|
|
|
477,574
|
|
|
5.56
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
10,248
|
|
|
0.12
|
|
|
8,047
|
|
|
0.09
|
|
Other expense
(income)
|
|
2,565
|
|
|
0.03
|
|
|
(31,810)
|
|
|
(0.37)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
431,920
|
|
|
5.12
|
|
|
501,337
|
|
|
5.84
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
112,056
|
|
|
1.33
|
|
|
177,892
|
|
|
2.07
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
319,864
|
|
|
3.79
|
%
|
|
$
|
323,445
|
|
|
3.77
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
3.27
|
|
|
|
|
$
|
3.02
|
|
|
|
Diluted
|
|
$
|
3.24
|
|
|
|
|
$
|
3.01
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
97,743
|
|
|
|
|
106,977
|
|
|
|
Diluted
|
|
98,781
|
|
|
|
|
107,586
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
|
$
|
0.90
|
|
|
|
|
$
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 2,
2019
|
|
February 3,
2018
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
113,653
|
|
|
$
|
101,253
|
|
Accounts receivable,
net
|
|
37,970
|
|
|
60,107
|
|
Income taxes
receivable
|
|
6,135
|
|
|
4,433
|
|
Inventories,
net
|
|
1,824,696
|
|
|
1,711,103
|
|
Prepaid expenses and
other current assets
|
|
139,944
|
|
|
129,189
|
|
Total current
assets
|
|
2,122,398
|
|
|
2,006,085
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,565,271
|
|
|
1,677,340
|
|
Intangible assets,
net
|
|
130,166
|
|
|
136,587
|
|
Goodwill
|
|
250,476
|
|
|
250,476
|
|
Other
assets:
|
|
|
|
|
Deferred income
taxes
|
|
13,243
|
|
|
13,639
|
|
Other
|
|
105,595
|
|
|
119,812
|
|
Total other
assets
|
|
118,838
|
|
|
133,451
|
|
TOTAL
ASSETS
|
|
$
|
4,187,149
|
|
|
$
|
4,203,939
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Accounts
payable
|
|
$
|
889,908
|
|
|
$
|
843,075
|
|
Accrued
expenses
|
|
364,342
|
|
|
354,181
|
|
Deferred revenue and
other liabilities
|
|
224,984
|
|
|
212,080
|
|
Income taxes
payable
|
|
20,142
|
|
|
10,476
|
|
Current portion of
other long-term debt and leasing obligations
|
|
5,263
|
|
|
5,202
|
|
Total current
liabilities
|
|
1,504,639
|
|
|
1,425,014
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Other long-term debt
and leasing obligations
|
|
54,781
|
|
|
60,084
|
|
Deferred income
taxes
|
|
11,776
|
|
|
10,232
|
|
Deferred rent and
other liabilities
|
|
711,792
|
|
|
767,108
|
|
Total long-term
liabilities
|
|
778,349
|
|
|
837,424
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
Common
stock
|
|
693
|
|
|
783
|
|
Class B common
stock
|
|
245
|
|
|
247
|
|
Additional paid-in
capital
|
|
1,214,287
|
|
|
1,177,778
|
|
Retained
earnings
|
|
2,455,192
|
|
|
2,205,651
|
|
Accumulated other
comprehensive loss
|
|
(120)
|
|
|
(78)
|
|
Treasury stock, at
cost
|
|
(1,766,136)
|
|
|
(1,442,880)
|
|
Total stockholders'
equity
|
|
1,904,161
|
|
|
1,941,501
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
4,187,149
|
|
|
$
|
4,203,939
|
|
|
|
|
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS
OF CASH FLOWS - UNAUDITED (Dollars in
thousands)
|
|
|
|
Fiscal Year
Ended
|
|
|
February 2,
2019
|
|
February 3,
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
|
$
|
319,864
|
|
|
$
|
323,445
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
243,830
|
|
|
237,651
|
|
Deferred income
taxes
|
|
(5,258)
|
|
|
42,453
|
|
Stock-based
compensation
|
|
41,941
|
|
|
36,239
|
|
Other non-cash
items
|
|
934
|
|
|
5,327
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
16,215
|
|
|
(208)
|
|
Inventories
|
|
(94,131)
|
|
|
(71,751)
|
|
Prepaid expenses and
other assets
|
|
10,980
|
|
|
(29,072)
|
|
Accounts
payable
|
|
125,632
|
|
|
124,628
|
|
Accrued
expenses
|
|
21,372
|
|
|
13,597
|
|
Income taxes payable /
receivable
|
|
7,964
|
|
|
(39,347)
|
|
Deferred construction
allowances
|
|
27,730
|
|
|
101,712
|
|
Deferred revenue and
other liabilities
|
|
(4,318)
|
|
|
1,636
|
|
Net cash provided by
operating activities
|
|
712,755
|
|
|
746,310
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
expenditures
|
|
(198,219)
|
|
|
(474,347)
|
|
Acquisitions, net of
cash acquired
|
|
—
|
|
|
(8,957)
|
|
Deposits and purchases
of other assets
|
|
—
|
|
|
(2,344)
|
|
Net cash used in
investing activities
|
|
(198,219)
|
|
|
(485,648)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Revolving credit
borrowings
|
|
1,875,400
|
|
|
2,742,800
|
|
Revolving credit
repayments
|
|
(1,875,400)
|
|
|
(2,742,800)
|
|
Proceeds from term
loan
|
|
—
|
|
|
62,492
|
|
Payments on other
long-term debt and leasing obligations
|
|
(5,242)
|
|
|
(2,531)
|
|
Construction allowance
receipts
|
|
—
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
—
|
|
|
16,558
|
|
Minimum tax
withholding requirements
|
|
(5,428)
|
|
|
(5,841)
|
|
Cash paid for treasury
stock
|
|
(323,352)
|
|
|
(284,583)
|
|
Cash dividends paid to
stockholders
|
|
(89,273)
|
|
|
(73,099)
|
|
Decrease in bank
overdraft
|
|
(78,799)
|
|
|
(37,236)
|
|
Net cash used in
financing activities
|
|
(502,094)
|
|
|
(324,240)
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
(42)
|
|
|
54
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
12,400
|
|
|
(63,524)
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
101,253
|
|
|
164,777
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
113,653
|
|
|
$
|
101,253
|
|
Store Count and Square Footage
The following represents a reconciliation of beginning and
ending stores and square footage for the periods indicated:
Store Count:
|
|
Fiscal
2018
|
|
Fiscal
2017
|
|
|
DICK'S
Sporting
Goods(1)
|
|
Specialty
Concept
Stores(1)
|
|
Total
|
|
DICK'S
Sporting
Goods(1)
|
|
Specialty
Concept
Stores(1)
|
|
Total
|
Beginning
stores
|
|
716
|
|
129
|
|
845
|
|
676
|
|
121
|
|
797
|
Q1 New
stores
|
|
8
|
|
—
|
|
8
|
|
15
|
|
10
|
|
25
|
Q2 New
stores
|
|
5
|
|
—
|
|
5
|
|
13
|
|
—
|
|
13
|
Q3 New
stores
|
|
6
|
|
—
|
|
6
|
|
15
|
|
6
|
|
21
|
Q4 New
stores
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Closed
stores
|
|
6
|
|
—
|
|
6
|
|
3
|
|
8
|
|
11
|
Ending
stores
|
|
729
|
|
129
|
|
858
|
|
716
|
|
129
|
|
845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relocated
stores
|
|
4
|
|
1
|
|
5
|
|
7
|
|
1
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Square Footage:
(in millions)
|
|
|
DICK'S
Sporting
Goods(1)
|
|
Specialty
Concept
Stores(1)
|
|
Total(2)
|
Q1 2017
|
|
|
36.8
|
|
3.5
|
|
40.3
|
Q2 2017
|
|
|
37.4
|
|
3.5
|
|
40.9
|
Q3 2017
|
|
|
38.2
|
|
3.7
|
|
41.9
|
Q4 2017
|
|
|
38.0
|
|
3.7
|
|
41.7
|
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
|
(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 February 2, 2019, the Company operated 23
combo stores.
|
(2)
|
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)
|
|
|
14 Weeks Ended
February 3, 2018
|
|
|
|
|
|
|
|
Cost of
goods sold
|
Selling,
general and
administrative
expenses
|
Income
before
income
taxes
|
Net
income (8)
|
Earnings per
diluted share
|
GAAP Basis
|
$
|
1,888,269
|
|
$
|
596,856
|
|
$
|
180,281
|
|
$
|
115,951
|
|
$
|
1.11
|
|
% of Net
Sales
|
70.88
|
%
|
22.40
|
%
|
6.77
|
%
|
4.35
|
%
|
|
Loyalty program
enhancement costs (5)
|
(11,478)
|
|
—
|
|
11,478
|
|
7,231
|
|
|
Litigation
contingency (6)
|
—
|
|
(6,592)
|
|
6,592
|
|
4,153
|
|
|
Non-GAAP
Basis
|
$
|
1,876,791
|
|
$
|
590,264
|
|
$
|
198,351
|
|
$
|
127,335
|
|
$
|
1.22
|
|
% of Net
Sales
|
70.45
|
%
|
22.16
|
%
|
7.45
|
%
|
4.78
|
%
|
|
|
53 Weeks Ended
February 3, 2018
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold
|
Selling,
general and
administrative
expenses
|
Pre-
opening
expenses
|
Other
income
|
Income
before
income
taxes
|
Net
income (8)
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
|
6,101,412
|
|
$
|
1,982,363
|
|
$
|
29,123
|
|
$
|
(31,810)
|
|
$
|
501,337
|
|
$
|
323,445
|
|
$
|
3.01
|
|
% of Net
Sales
|
71.03
|
%
|
23.08
|
%
|
0.34
|
%
|
(0.37)
|
%
|
5.84
|
%
|
3.77
|
%
|
|
Corporate
restructuring
charge (1)
|
—
|
|
(7,077)
|
|
—
|
|
—
|
|
7,077
|
|
4,388
|
|
|
TSA conversion
costs (2)
|
—
|
|
—
|
|
(3,474)
|
|
—
|
|
3,474
|
|
2,154
|
|
|
Contract
termination
payment (3)
|
—
|
|
—
|
|
—
|
|
12,000
|
|
(12,000)
|
|
(12,000)
|
|
|
Sales tax refund
(4)
|
—
|
|
—
|
|
—
|
|
8,104
|
|
(8,104)
|
|
(5,024)
|
|
|
Loyalty program
enhancement
costs (5)
|
(11,478)
|
|
—
|
|
—
|
|
—
|
|
11,478
|
|
7,231
|
|
|
Litigation
contingency (6)
|
—
|
|
(6,592)
|
|
—
|
|
—
|
|
6,592
|
|
4,153
|
|
|
Tax Act impact
(7)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(24)
|
|
|
Non-GAAP
Basis
|
$
|
6,089,934
|
|
$
|
1,968,694
|
|
$
|
25,649
|
|
$
|
(11,706)
|
|
$
|
509,854
|
|
$
|
324,323
|
|
$
|
3.01
|
|
% of Net
Sales
|
70.89
|
%
|
22.92
|
%
|
0.30
|
%
|
(0.14)
|
%
|
5.94
|
%
|
3.78
|
%
|
|
(1)
|
Severance, other
employee-related costs and asset write-downs related to corporate
restructuring.
|
(2)
|
Costs related to
converting former TSA stores.
|
(3)
|
Contract termination
payment. There was no related tax expense as the Company utilized
net capital loss carryforwards that were
previously subject to a valuation allowance.
|
(4)
|
Multi-year sales tax
refund.
|
(5)
|
Transition costs incurred to enhance the
Company's Scorecard loyalty program.
|
(6)
|
Costs related to a
litigation contingency.
|
(7)
|
Change to blended tax
rate for adjustments recorded prior to enactment of the Tax
Act.
|
(8)
|
The provision for
income taxes for non-GAAP adjustments was calculated at the
Company's approximate blended tax rate,
unless otherwise noted.
|
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 2,
2019
|
|
February 3,
2018
|
|
|
(dollars in thousands)
|
Gross capital
expenditures
|
|
$
|
(198,219)
|
|
|
$
|
(474,347)
|
|
Proceeds from
sale-leaseback transactions
|
|
—
|
|
|
—
|
|
Deferred construction
allowances
|
|
27,730
|
|
|
101,712
|
|
Construction
allowance receipts
|
|
—
|
|
|
—
|
|
Net capital
expenditures
|
|
$
|
(170,489)
|
|
|
$
|
(372,635)
|
|
Fiscal 2017 Net Sales Adjusted for the 53rd Week
Net sales adjusted for the extra week during the 14 and 53 weeks
ended February 3, 2018 is presented
below to illustrate the impact of the extra week on reported net
sales in comparison to reported results for the 13 and 52 weeks
ended February 2, 2019.
|
|
Period Ended
February 3, 2018
|
|
|
14
Weeks
|
|
53
Weeks
|
|
|
(dollars
in thousands)
|
Net sales
|
|
$
|
2,664,122
|
|
|
$
|
8,590,472
|
|
Less: 53rd
week net sales
|
|
(105,425)
|
|
|
(105,425)
|
|
Adjusted net
sales
|
|
$
|
2,558,697
|
|
|
$
|
8,485,047
|
|
|
|
|
|
|
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SOURCE DICK'S Sporting Goods, Inc.