PITTSBURGH, June 2, 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 first quarter ended May 2, 2020.
First Quarter Results
The Company reported a consolidated net loss for the first
quarter ended May 2, 2020 of $143.4
million, or $1.71 per diluted
share. As a result of actions taken to support its teammates as
well as impacts from its temporary store closures, the Company
incurred approximately $62 million of
pre-tax expenses, or $0.50 per
diluted share, during the current quarter, including $34 million of teammate compensation and safety
costs and $28 million of inventory
write-downs. The Company reported consolidated net income for the
first quarter ended May 4, 2019 of
$57.5 million, or $0.61 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
reconciliations are included in a table later in the release under
the heading "GAAP to Non-GAAP Reconciliations."
Net sales for the first quarter of 2020 decreased 30.6% to
approximately $1.33 billion.
Consolidated same store sales decreased 29.5%, driven by temporary
store closures that started on March 18,
2020 to help prevent the spread of COVID-19. First
quarter 2019 consolidated same store sales were flat.
"Although the business environment of 2020 remains uncertain,
DICK'S Sporting Goods is in a position of strength. We believe
coming out of the current crisis, health and fitness will become
even more important to the consumer. As the leader in the sporting
goods retail sector, our relationships with key brands have never
been stronger and we are in a great place to support this demand,"
said Edward W. Stack, Chairman and
Chief Executive Officer. "Our experienced management team has a
history of successfully navigating difficult market cycles and
remains fully committed to managing our business with a long-term
view. Perhaps most importantly, our balance sheet is strong, and
due to the actions taken when the pandemic first hit, we have
enhanced liquidity to emerge from this crisis in an even stronger
competitive position. Now, with confidence in our liquidity
position and our stores re-opening, we can turn our attention to
gaining market share for the remainder of 2020 and positioning our
business for profitable growth in 2021."
Lauren R. Hobart, President,
added, "Through March 10th
our consolidated same store sales increased 7.9%, a clear
indication that our strategies were working. Throughout the store
closures we continued to serve our athletes online, and our
eCommerce sales, including Curbside Contactless Pickup, were
tremendous, increasing 210% since we temporarily closed our stores
through the end of the first quarter."
Ms. Hobart continued, "As we re-open our stores, the health and
safety of our teammates and athletes is our highest priority, and
we are following the guidelines from the Centers for Disease
Control and Prevention as well as federal, state and local
authorities. We are pleased with how our athletes have responded to
these measures. Through the first four weeks of the second quarter
our consolidated same store sales have decreased only 4.0%,
representing a progressive recovery as we re-open our stores and
maintain strong sales momentum in our eCommerce business, which has
increased over 250%."
eCommerce Sales
eCommerce sales for the first quarter of 2020 increased 110%,
including Curbside Contactless Pickup. eCommerce penetration for
the first quarter of 2020 was approximately 39% of total net sales,
compared to approximately 13% during the first quarter of 2019.
Following the Company's temporary store closures through the end of
the first quarter of 2020, eCommerce sales increased 210%.
Balance Sheet
In response to the COVID-19 pandemic, the Company proactively
addressed its liquidity needs during the first quarter of 2020
through two transactions. In March, the Company amended its
revolving credit facility to add $255
million of borrowing capacity, bringing total capacity to
$1.855 billion. In April, the Company
issued $575 million aggregate
principal amount of its 3.25% Convertible Senior Notes, which added
over $500 million of net proceeds to
our cash position.
The Company ended the first quarter
of 2020 with $1.5 billion in cash and cash
equivalents and $1.4 billion in
outstanding borrowings under its revolving credit facility.
Total inventory decreased 2.1% at the end of the first quarter
of 2020 as compared to the end of the first quarter of 2019.
Capital Allocation
As previously announced during the quarter, in response to the
COVID-19 pandemic, the Company has temporarily suspended its share
repurchase programs and quarterly dividend program. As its business
continues to stabilize, the Company may resume opportunistic share
repurchases under its existing authorizations of $1,031 million.
The Company paid previously declared quarterly dividends of
$0.3125 per share on March 27, 2020 to shareholders of record as of
the end of business on March 20,
2020.
Full Year 2020 Outlook
As previously announced on March 19,
2020, the Company withdrew its fiscal 2020 outlook. The
Company is not providing an updated outlook at this time.
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.
Fiscal 2020 Consolidated Same Store Sales
Consolidated same store sales include stores that were
temporarily closed as a result of COVID-19. The method of
calculating consolidated same store sales varies across the retail
industry, including the treatment of temporary store closures as a
result of COVID-19. Accordingly, our method of calculating this
metric may not be the same as other retailers' methods. For
additional information on consolidated same store sales, please see
our most recent Annual Report on Form 10-K, and any subsequent
Quarterly Reports on Form 10-Q, filed with the Securities and
Exchange Commission.
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, liquidity, 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: The impact on our business,
operations and financial results due to the duration and scope of
the COVID-19 pandemic, including whether there is a second wave or
periods of increases in the number of COVID-19 cases in areas in
which we operate, and the restrictions imposed by federal, state,
and local governments in response to the pandemic; changes in
consumer discretionary spending, including those caused by
COVID-19; store closures and other impacts to our business
resulting from civil disturbances; 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 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, including changes caused by COVID-19; 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,
including disruptions and cancellations due to COVID-19;
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 20, 2020. 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 2, 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, Senior Director of
Investor Relations
DICK'S Sporting Goods, Inc.
investors@dcsg.com
(724) 273-3400
Media Relations:
(724) 273-5552 or press@dcsg.com
Category: Financial
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS - UNAUDITED
|
(In thousands,
except per share data)
|
|
|
13 Weeks
Ended
|
|
May
2, 2020
|
|
%
of
Sales(2)
|
|
May
4, 2019
|
|
%
of
Sales(2)
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,333,228
|
|
|
100.00
|
%
|
|
$
|
1,920,677
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and
distribution costs (1)
|
1,113,900
|
|
|
83.55
|
|
|
1,356,868
|
|
|
70.65
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
219,328
|
|
|
16.45
|
|
|
563,809
|
|
|
29.35
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
403,221
|
|
|
30.24
|
|
|
487,158
|
|
|
25.36
|
|
Pre-opening
expenses
|
2,280
|
|
|
0.17
|
|
|
578
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME FROM
OPERATIONS
|
(186,173)
|
|
|
(13.96)
|
|
|
76,073
|
|
|
3.96
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
8,045
|
|
|
0.60
|
|
|
3,081
|
|
|
0.16
|
|
Other expense
(income)
|
13,522
|
|
|
1.01
|
|
|
(6,738)
|
|
|
(0.35)
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME BEFORE
INCOME TAXES
|
(207,740)
|
|
|
(15.58)
|
|
|
79,730
|
|
|
4.15
|
|
|
|
|
|
|
|
|
|
(Benefit from)
provision for income taxes
|
(64,318)
|
|
|
(4.82)
|
|
|
22,205
|
|
|
1.16
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
$
|
(143,422)
|
|
|
(10.76)
|
%
|
|
$
|
57,525
|
|
|
3.00
|
%
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS PER
COMMON SHARE:
|
|
|
|
|
|
|
|
Basic
|
$
|
(1.71)
|
|
|
|
|
$
|
0.62
|
|
|
|
Diluted
|
$
|
(1.71)
|
|
|
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
Basic
|
83,734
|
|
|
|
|
92,887
|
|
|
|
Diluted
|
83,734
|
|
|
|
|
94,388
|
|
|
|
|
|
(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
2, 2020
|
|
May
4, 2019
|
|
February
1, 2020
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,484,004
|
|
|
$
|
92,423
|
|
|
$
|
69,334
|
|
Accounts receivable,
net
|
100,895
|
|
|
52,382
|
|
|
53,173
|
|
Income taxes
receivable
|
56,291
|
|
|
4,435
|
|
|
5,762
|
|
Inventories,
net
|
2,096,964
|
|
|
2,142,022
|
|
|
2,202,275
|
|
Prepaid expenses and
other current assets
|
102,249
|
|
|
148,442
|
|
|
79,472
|
|
Total current
assets
|
3,840,403
|
|
|
2,439,704
|
|
|
2,410,016
|
|
|
|
|
|
|
|
Property and
equipment, net
|
1,369,873
|
|
|
1,478,910
|
|
|
1,415,728
|
|
Operating lease
assets
|
2,260,189
|
|
|
2,484,660
|
|
|
2,313,846
|
|
Intangible assets,
net
|
93,676
|
|
|
128,563
|
|
|
94,768
|
|
Goodwill
|
245,857
|
|
|
250,476
|
|
|
245,857
|
|
Deferred income
taxes
|
14,263
|
|
|
12,858
|
|
|
14,412
|
|
Other
|
128,289
|
|
|
116,823
|
|
|
133,933
|
|
TOTAL
ASSETS
|
$
|
7,952,550
|
|
|
$
|
6,911,994
|
|
|
$
|
6,628,560
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Accounts
payable
|
$
|
844,991
|
|
|
$
|
932,055
|
|
|
$
|
1,001,589
|
|
Accrued
expenses
|
317,026
|
|
|
320,603
|
|
|
415,501
|
|
Operating lease
liabilities
|
505,678
|
|
|
367,768
|
|
|
422,970
|
|
Income taxes
payable
|
2,062
|
|
|
38,772
|
|
|
10,455
|
|
Deferred revenue and
other liabilities
|
217,223
|
|
|
196,190
|
|
|
225,959
|
|
Total current
liabilities
|
1,886,980
|
|
|
1,855,388
|
|
|
2,076,474
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
Revolving credit
borrowings
|
1,429,000
|
|
|
369,500
|
|
|
224,100
|
|
Convertible
senior notes
|
398,121
|
|
|
—
|
|
|
—
|
|
Long-term operating
lease liabilities
|
2,428,133
|
|
|
2,683,561
|
|
|
2,453,346
|
|
Deferred income
taxes
|
4,362
|
|
|
8,073
|
|
|
9,187
|
|
Other long-term
liabilities
|
133,929
|
|
|
169,437
|
|
|
133,855
|
|
Total long-term
liabilities
|
4,393,545
|
|
|
3,230,571
|
|
|
2,820,488
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
Common
stock
|
598
|
|
|
668
|
|
|
593
|
|
Class B common
stock
|
243
|
|
|
245
|
|
|
243
|
|
Additional paid-in
capital
|
1,364,568
|
|
|
1,220,543
|
|
|
1,253,867
|
|
Retained
earnings
|
2,475,065
|
|
|
2,478,129
|
|
|
2,645,281
|
|
Accumulated other
comprehensive loss
|
(183)
|
|
|
(139)
|
|
|
(120)
|
|
Treasury stock, at
cost
|
(2,168,266)
|
|
|
(1,873,411)
|
|
|
(2,168,266)
|
|
Total stockholders'
equity
|
1,672,025
|
|
|
1,826,035
|
|
|
1,731,598
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
7,952,550
|
|
|
$
|
6,911,994
|
|
|
$
|
6,628,560
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS - UNAUDITED
|
(Dollars in
thousands)
|
|
|
13 Weeks
Ended
|
|
May
2, 2020
|
|
May
4, 2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net (loss)
income
|
$
|
(143,422)
|
|
|
$
|
57,525
|
|
Adjustments to
reconcile net (loss) income to net cash used in operating
activities:
|
|
|
|
Depreciation,
amortization, and other
|
86,081
|
|
|
82,604
|
|
Amortization of
discount on convertible notes
|
1,094
|
|
|
—
|
|
Non-cash lease
costs
|
69,560
|
|
|
(16,580)
|
|
Deferred income
taxes
|
(4,676)
|
|
|
(720)
|
|
Stock-based
compensation
|
9,235
|
|
|
11,907
|
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
(14,745)
|
|
|
(15,433)
|
|
Inventories
|
105,311
|
|
|
(317,326)
|
|
Prepaid expenses and
other assets
|
(13,190)
|
|
|
(7,983)
|
|
Accounts
payable
|
(167,707)
|
|
|
22,531
|
|
Accrued
expenses
|
(90,047)
|
|
|
(43,100)
|
|
Income taxes payable /
receivable
|
(58,922)
|
|
|
20,330
|
|
Deferred construction
allowances
|
8,638
|
|
|
16,387
|
|
Deferred revenue and
other liabilities
|
(2,063)
|
|
|
(32,294)
|
|
Net cash used in
operating activities
|
(214,853)
|
|
|
(222,152)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Capital
expenditures
|
(59,591)
|
|
|
(46,882)
|
|
Net cash used in
investing activities
|
(59,591)
|
|
|
(46,882)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Revolving credit
borrowings
|
1,291,700
|
|
|
635,300
|
|
Revolving credit
repayments
|
(86,800)
|
|
|
(265,800)
|
|
Proceeds from issuance
of convertible notes
|
575,000
|
|
|
—
|
|
Payments for purchase
of bond hedges
|
(161,057)
|
|
|
—
|
|
Proceeds from issuance
of warrants
|
105,225
|
|
|
—
|
|
Transaction costs paid
in connection with convertible notes issuance
|
(14,341)
|
|
|
—
|
|
Payments on other long-term debt and finance lease
obligations
|
(199)
|
|
|
(1,330)
|
|
Proceeds from exercise of stock options
|
—
|
|
|
213
|
|
Minimum tax
withholding requirements
|
(3,390)
|
|
|
(5,859)
|
|
Cash paid for treasury
stock
|
—
|
|
|
(107,305)
|
|
Cash dividend paid to
stockholders
|
(28,070)
|
|
|
(27,012)
|
|
Increase in bank
overdraft
|
11,109
|
|
|
19,616
|
|
Net cash provided by
financing activities
|
1,689,177
|
|
|
247,823
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
(63)
|
|
|
(19)
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
1,414,670
|
|
|
(21,230)
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
69,334
|
|
|
113,653
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
$
|
1,484,004
|
|
|
$
|
92,423
|
|
Store Count and
Square Footage
|
|
The stores that
opened during the first quarter of 2020 are as follows:
|
|
|
|
Store
|
|
Market
|
|
Concept
|
Tyler, TX
|
|
Longview
|
|
DICK'S Sporting
Goods
|
Birmingham,
AL
|
|
Birmingham
|
|
Golf
Galaxy
|
Warwick,
RI
|
|
Providence
|
|
Golf
Galaxy
|
The following
represents a reconciliation of beginning and ending stores and
square footage for the periods indicated:
|
|
Store
Count:
|
|
|
Fiscal
2020
|
|
Fiscal
2019
|
|
DICK'S
Sporting
Goods
|
|
Specialty
Concept
Stores (1)
|
|
Total
|
|
DICK'S
Sporting
Goods
|
|
Specialty
Concept
Stores (1)
|
|
Total
|
Beginning
stores
|
726
|
|
|
124
|
|
|
850
|
|
|
729
|
|
|
130
|
|
|
859
|
|
Q1 New
stores
|
1
|
|
|
2
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Closed
stores
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
Ending
stores
|
726
|
|
|
125
|
|
|
851
|
|
|
727
|
|
|
131
|
|
|
858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relocated
stores
|
3
|
|
|
1
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Square
Footage:
|
(in
millions)
|
|
|
DICK'S
Sporting
Goods
|
|
Specialty
Concept
Stores (1)
|
|
Total
(2)
|
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
|
|
Q1 2020
|
|
38.4
|
|
|
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 May 2, 2020, the Company operated 26
combo stores.
|
|
|
(2)
|
Column may not add
due to rounding.
|
DICK'S SPORTING
GOODS, INC.
|
GAAP to NON-GAAP
RECONCILIATIONS - UNAUDITED
|
(in thousands,
except per share amounts)
|
|
Non-GAAP Net
Income and Earnings Per Share Reconciliation
|
|
|
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
approximated 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
2, 2020
|
|
May
4, 2019
|
Gross capital
expenditures
|
|
$
|
(59,591)
|
|
|
$
|
(46,882)
|
|
Proceeds from
sale-leaseback transactions
|
|
—
|
|
|
—
|
|
Deferred construction
allowances
|
|
8,638
|
|
|
16,387
|
|
Construction
allowance receipts
|
|
—
|
|
|
—
|
|
Net capital
expenditures
|
|
$
|
(50,953)
|
|
|
$
|
(30,495)
|
|
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SOURCE DICK'S Sporting Goods, Inc.