PITTSBURGH, Nov. 24, 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 third quarter ended
October 31, 2020.
Third Quarter Results
The Company reported consolidated net income for the third
quarter ended October 31, 2020 of $177.2 million, or $1.84 per diluted share. As a result of actions
taken to prioritize the health and well-being of its teammates and
athletes, the Company incurred approximately $48 million of pre-tax incremental teammate
compensation and safety costs in response to COVID-19, or
$0.37 per diluted share, net of tax,
during the current quarter. The Company reported consolidated net
income for the third quarter ended November
2, 2019 of $57.6 million, or
$0.66 per diluted share.
On a non-GAAP basis, the Company reported consolidated net
income for the quarter ended October 31, 2020 of
$182.2 million, or $2.01 per diluted share, which excluded non-cash
amortization of the debt discount associated with the Company's
convertible senior notes and included the share impact of the
convertible note hedge purchased by the Company, which is
antidilutive for GAAP purposes. For the third quarter ended
November 2, 2019, the Company
reported consolidated net income on a non-GAAP basis of
$44.8 million, or $0.52 per diluted share. Third quarter 2019
results exclude the gain on sale of subsidiaries, charges related
to the exit of eight Field & Stream stores, and a non-cash
asset impairment. The GAAP to non-GAAP reconciliations are included
in a table later in the release under the heading "GAAP to Non-GAAP
Reconciliations."
Net sales for the third quarter of 2020 were $2.41 billion, an increase of 22.9% compared to
the third quarter of 2019. This increase was driven by a 23.2%
increase in consolidated same store sales and included an increase
in eCommerce sales of 95%. eCommerce penetration for the third
quarter of 2020 was approximately 21% of total net sales, compared
to approximately 13% during the third quarter of 2019. Third
quarter 2019 consolidated same store sales increased 6.0%.
"We had another exceptionally strong quarter from both a sales
and a profitability perspective. The strength of our diverse
category portfolio once again helped us capitalize on the favorable
shifts in consumer demand, as the positive trends across golf,
outdoor activities, home fitness and active lifestyle continued
throughout Q3," said Edward W.
Stack, Chairman and Chief Executive Officer. "Our
performance in the quarter was driven by our 45,000 dedicated
teammates who continued to work hard every day to safely serve our
athletes and communities."
Lauren R. Hobart, President,
added, "Our stores continue to be the hub of our industry-leading
omni-channel platform and were the key to our unprecedented third
quarter growth. Brick-and-mortar store comps grew double-digits,
and our stores fulfilled approximately 70% of our online sales,
which increased nearly 100% for the quarter. In fact, our stores
drove 90% of our total Q3 sales growth, whether an athlete
purchased at the register, picked up curbside or had their order
delivered through ship-from-store. Data science and technology will
continue to play an important role in creating a personalized,
one-to-one relationship with our athletes, enabling us to serve
them in the most convenient way possible."
Mr. Stack concluded, "Overall, the favorable trends in our
business have continued into Q4. These strong sales results have
been partially offset by warmer weather that has negatively
impacted sales in important cold-weather categories. Taken
together, through the first three weeks of Q4, our consolidated
comp sales have increased in the high-teens."
Balance Sheet
The Company ended the third quarter
of 2020 with nearly $1.1 billion in cash and cash equivalents
and no outstanding borrowings under its $1.855 billion revolving credit facility. In
April, the Company issued $575
million aggregate principal amount of 3.25% Convertible
Senior Notes, which added over $500
million of net proceeds to its cash position.
Total inventory decreased 9.8% at the end of the third quarter
of 2020 as compared to the end of the third quarter of 2019.
Year-to-Date Results
The Company reported consolidated net income for the 39 weeks
ended October 31, 2020 of
$310.6 million, or $3.44 per diluted share. As a result of actions
taken to prioritize the health and well-being of its teammates and
athletes in response to COVID-19, the Company incurred
approximately $124 million of pre-tax
incremental teammate compensation and safety costs, or $1.01 per diluted share, net of tax, during the
39 weeks ended October 31, 2020. For
the 39 weeks ended November 2, 2019,
the Company reported consolidated net income of $227.6 million, or $2.53 per diluted share.
On a non-GAAP basis, the Company reported consolidated net
income for the 39 weeks ended October
31, 2020 of $321.3 million, or
$3.65 per diluted share, which
excluded non-cash amortization of the debt discount associated with
the Company's convertible senior notes and included the share
impact of the convertible note hedge purchased by the Company,
which is antidilutive for GAAP purposes. For the 39 weeks ended
November 2, 2019, the Company
reported consolidated net income on a non-GAAP basis of
$215.8 million, or $2.39 per diluted share, which excludes the gain
on sale of subsidiaries, non-cash asset impairments, charges
related to the exit of eight Field & Stream stores, and the
favorable settlement of a litigation contingency. The GAAP to
non-GAAP reconciliations are included in a table later in the
release under the heading "GAAP to Non-GAAP Reconciliations."
Net sales for the 39 weeks ended October
31, 2020 increased 5.2% to approximately $6.46 billion. Despite temporary store closures
during March, April and May to help prevent the spread of COVID-19,
consolidated same store sales increased 5.8%. eCommerce sales
increased 135%. eCommerce penetration for the 39 weeks ended
October 31, 2020 was approximately
28% of total net sales, compared to approximately 13% during the 39
weeks ended November 2, 2019.
Consolidated same store sales increased 3.1% for the 39 weeks ended
November 2, 2019.
Capital Allocation
On November 20, 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 December 29,
2020 to stockholders of record at the close of business on
December 11, 2020.
For the 39 weeks ended October 31,
2020, capital expenditures totaled $156.4 million on a gross basis, or $114.1 million net of deferred construction
allowances provided by landlords. For the 39 weeks ended
November 2, 2019, capital
expenditures totaled $165.7 million
on a gross basis, or $140.1 million
net of deferred construction allowances provided by landlords.
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 third quarter results. Investors
will have the opportunity to listen to the earnings conference call
over the internet through the Company's website located
at investors.DICKS.com. To listen to the live call, please go
to the website at least fifteen minutes early to register,
download, and install any necessary audio software. For those who
cannot listen to the live webcast, it will be archived on the
Company's website for approximately twelve months.
Non-GAAP Financial Measures
In addition to reporting the Company's financial results in
accordance with generally accepted accounting principles ("GAAP"),
the Company reports certain financial results that differ from what
is reported under GAAP. These non-GAAP financial measures include
consolidated non-GAAP net income, non-GAAP earnings per diluted
share, and net capital expenditures, which management believes
provides investors with useful supplemental information to evaluate
the Company's ongoing operations and to compare with past and
future periods. Management believes that excluding non-cash debt
discount amortization from its convertible senior notes and
including the share impact from the convertible note hedge is
useful to investors because it provides a more complete view of the
economics of the transaction. 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; the extent to which changes in consumer demand due to the
COVID-19 pandemic will continue and whether new trends will emerge
after the impact of the COVID-19 pandemic subsides; 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 and our Quarterly Report
filed with the SEC on August 26,
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 October 31, 2020, the Company
operated 732 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 dynamic
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 INCOME - UNAUDITED
|
(In thousands,
except per share data)
|
|
|
|
13 Weeks
Ended
|
|
|
October
31,
2020
|
|
%
of
Sales(2)
|
|
November
2,
2019
|
|
%
of
Sales(2)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,412,112
|
|
|
100.00
|
%
|
|
$
|
1,962,204
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and
distribution costs (1)
|
|
1,569,938
|
|
|
65.09
|
|
|
1,381,562
|
|
|
70.41
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
842,174
|
|
|
34.91
|
|
|
580,642
|
|
|
29.59
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
591,117
|
|
|
24.51
|
|
|
531,704
|
|
|
27.10
|
|
Pre-opening
expenses
|
|
4,964
|
|
|
0.21
|
|
|
3,313
|
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
246,093
|
|
|
10.20
|
|
|
45,625
|
|
|
2.33
|
|
|
|
|
|
|
|
|
|
|
(Gain) Loss on sale
of subsidiaries
|
|
—
|
|
|
—
|
|
|
(33,779)
|
|
|
(1.72)
|
|
Interest
expense
|
|
12,769
|
|
|
0.53
|
|
|
4,278
|
|
|
0.22
|
|
Other (income)
expense
|
|
(3,746)
|
|
|
(0.16)
|
|
|
(2,020)
|
|
|
(0.10)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
237,070
|
|
|
9.83
|
|
|
77,146
|
|
|
3.93
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
59,854
|
|
|
2.48
|
|
|
19,562
|
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
177,216
|
|
|
7.35
|
%
|
|
$
|
57,584
|
|
|
2.93
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.10
|
|
|
|
|
$
|
0.68
|
|
|
|
Diluted
|
|
$
|
1.84
|
|
|
|
|
$
|
0.66
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
84,422
|
|
|
|
|
85,048
|
|
|
|
Diluted
|
|
96,571
|
|
|
|
|
86,601
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Cost of goods sold includes: the
cost of merchandise (inclusive of vendor allowances, inventory
shrinkage and inventory write-downs for the lower of cost and net
realizable value); freight; distribution; shipping; and store
occupancy costs. The Company defines merchandise margin as net
sales less the cost of merchandise sold.
|
(2) Column does not add due to
rounding
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED
|
(In thousands,
except per share data)
|
|
|
|
39 Weeks
Ended
|
|
|
October
31,
2020
|
|
%
of
Sales
|
|
November
2,
2019
|
|
%
of
Sales
(2)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
6,458,712
|
|
|
100.00
|
%
|
|
$
|
6,142,093
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and
distribution costs (1)
|
|
4,460,336
|
|
|
69.06
|
|
|
4,320,571
|
|
|
70.34
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
1,998,376
|
|
|
30.94
|
|
|
1,821,522
|
|
|
29.66
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
1,537,371
|
|
|
23.80
|
|
|
1,539,934
|
|
|
25.07
|
|
Pre-opening
expenses
|
|
9,728
|
|
|
0.15
|
|
|
4,887
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
451,277
|
|
|
6.99
|
|
|
276,701
|
|
|
4.50
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on sale
of subsidiaries
|
|
—
|
|
|
—
|
|
|
(33,779)
|
|
|
(0.55)
|
|
Interest
expense
|
|
35,496
|
|
|
0.55
|
|
|
12,909
|
|
|
0.21
|
|
Other (income)
expense
|
|
(4,731)
|
|
|
(0.07)
|
|
|
(10,340)
|
|
|
(0.17)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
420,512
|
|
|
6.51
|
|
|
307,911
|
|
|
5.01
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
109,875
|
|
|
1.70
|
|
|
80,268
|
|
|
1.31
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
310,637
|
|
|
4.81
|
%
|
|
$
|
227,643
|
|
|
3.71
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
3.69
|
|
|
|
|
$
|
2.57
|
|
|
|
Diluted
|
|
$
|
3.44
|
|
|
|
|
$
|
2.53
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
84,095
|
|
|
|
|
88,671
|
|
|
|
Diluted
|
|
90,430
|
|
|
|
|
90,130
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
(In
thousands)
|
|
|
|
October
31,
2020
|
|
November
2,
2019
|
|
February
1,
2020
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,059,994
|
|
|
$
|
87,622
|
|
|
$
|
69,334
|
|
Accounts receivable,
net
|
|
77,212
|
|
|
70,463
|
|
|
53,173
|
|
Income taxes
receivable
|
|
5,453
|
|
|
17,122
|
|
|
5,762
|
|
Inventories,
net
|
|
2,319,992
|
|
|
2,573,250
|
|
|
2,202,275
|
|
Prepaid expenses and
other current assets
|
|
82,648
|
|
|
128,458
|
|
|
79,472
|
|
Total current
assets
|
|
3,545,299
|
|
|
2,876,915
|
|
|
2,410,016
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,336,676
|
|
|
1,436,975
|
|
|
1,415,728
|
|
Operating lease
assets
|
|
2,177,006
|
|
|
2,378,399
|
|
|
2,313,846
|
|
Intangible assets,
net
|
|
91,585
|
|
|
123,855
|
|
|
94,768
|
|
Goodwill
|
|
245,857
|
|
|
245,857
|
|
|
245,857
|
|
Deferred income
taxes
|
|
27,717
|
|
|
16,033
|
|
|
14,412
|
|
Other
assets
|
|
141,350
|
|
|
128,965
|
|
|
133,933
|
|
TOTAL
ASSETS
|
|
$
|
7,565,490
|
|
|
$
|
7,206,999
|
|
|
$
|
6,628,560
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,394,904
|
|
|
$
|
1,097,564
|
|
|
$
|
1,001,589
|
|
Accrued
expenses
|
|
449,304
|
|
|
379,774
|
|
|
415,501
|
|
Operating lease
liabilities
|
|
474,803
|
|
|
417,912
|
|
|
422,970
|
|
Income taxes
payable
|
|
24,805
|
|
|
2,519
|
|
|
10,455
|
|
Deferred revenue and
other liabilities
|
|
193,956
|
|
|
183,876
|
|
|
225,959
|
|
Total current
liabilities
|
|
2,537,772
|
|
|
2,081,645
|
|
|
2,076,474
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
Revolving credit
borrowings
|
|
—
|
|
|
719,300
|
|
|
224,100
|
|
Convertible
senior notes due 2025
|
|
411,256
|
|
|
—
|
|
|
—
|
|
Long-term operating
lease liabilities
|
|
2,310,318
|
|
|
2,509,866
|
|
|
2,453,346
|
|
Deferred income
taxes
|
|
—
|
|
|
8,530
|
|
|
9,187
|
|
Other long-term
liabilities
|
|
184,505
|
|
|
178,756
|
|
|
133,855
|
|
Total long-term
liabilities
|
|
2,906,079
|
|
|
3,416,452
|
|
|
2,820,488
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Common
stock
|
|
608
|
|
|
597
|
|
|
593
|
|
Class B common
stock
|
|
239
|
|
|
243
|
|
|
243
|
|
Additional paid-in
capital
|
|
1,415,909
|
|
|
1,240,864
|
|
|
1,253,867
|
|
Retained
earnings
|
|
2,873,263
|
|
|
2,599,495
|
|
|
2,645,281
|
|
Accumulated other
comprehensive loss
|
|
(114)
|
|
|
(116)
|
|
|
(120)
|
|
Treasury stock, at
cost
|
|
(2,168,266)
|
|
|
(2,132,181)
|
|
|
(2,168,266)
|
|
Total stockholders'
equity
|
|
2,121,639
|
|
|
1,708,902
|
|
|
1,731,598
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
7,565,490
|
|
|
$
|
7,206,999
|
|
|
$
|
6,628,560
|
|
|
|
|
|
|
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS - UNAUDITED
|
(In
thousands)
|
|
|
|
39 Weeks
Ended
|
|
|
October
31,
2020
|
|
November
2,
2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
|
$
|
310,637
|
|
|
$
|
227,643
|
|
Adjustments to
reconcile net income to net cash provided by (used in)
operating activities:
|
|
|
|
|
Depreciation,
amortization, and other
|
|
239,666
|
|
|
244,163
|
|
Amortization of
convertible notes discount and issuance costs
|
|
14,345
|
|
|
—
|
|
Non-cash lease
costs
|
|
(1,199)
|
|
|
(43,011)
|
|
Deferred income
taxes
|
|
(22,492)
|
|
|
(3,438)
|
|
Stock-based
compensation
|
|
35,631
|
|
|
31,742
|
|
Gain on sale of
subsidiaries
|
|
—
|
|
|
(33,779)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(12,099)
|
|
|
(22,636)
|
|
Inventories
|
|
(121,435)
|
|
|
(758,016)
|
|
Prepaid expenses and
other assets
|
|
(384)
|
|
|
3,822
|
|
Accounts
payable
|
|
381,383
|
|
|
168,259
|
|
Accrued
expenses
|
|
30,035
|
|
|
11,424
|
|
Income taxes payable /
receivable
|
|
14,659
|
|
|
(28,610)
|
|
Deferred construction
allowances
|
|
42,314
|
|
|
25,598
|
|
Deferred revenue and
other liabilities
|
|
6,454
|
|
|
(35,936)
|
|
Net cash provided by
(used in) operating activities
|
|
917,515
|
|
|
(212,775)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
expenditures
|
|
(156,444)
|
|
|
(165,703)
|
|
Proceeds
from sale of subsidiaries, net of cash sold
|
|
—
|
|
|
40,387
|
|
Proceeds
from sale of other assets
|
|
—
|
|
|
4,103
|
|
Deposits and
purchases of other assets
|
|
(96)
|
|
|
(1,000)
|
|
Net cash used in
investing activities
|
|
(156,540)
|
|
|
(122,213)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Revolving credit
borrowings
|
|
1,291,700
|
|
|
1,778,750
|
|
Revolving credit
repayments
|
|
(1,515,800)
|
|
|
(1,059,450)
|
|
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
|
|
(17,396)
|
|
|
—
|
|
Payments on other long-term debt and finance lease
obligations
|
|
(612)
|
|
|
(3,965)
|
|
Proceeds from exercise of stock options
|
|
25,472
|
|
|
1,160
|
|
Minimum tax
withholding requirements
|
|
(3,911)
|
|
|
(6,320)
|
|
Cash paid for treasury
stock
|
|
—
|
|
|
(366,148)
|
|
Cash dividends paid to
stockholders
|
|
(80,874)
|
|
|
(74,540)
|
|
Increase in bank
overdraft
|
|
11,932
|
|
|
39,466
|
|
Net cash provided by
financing activities
|
|
229,679
|
|
|
308,953
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH
EQUIVALENTS
|
|
6
|
|
|
4
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
990,660
|
|
|
(26,031)
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
69,334
|
|
|
113,653
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
1,059,994
|
|
|
$
|
87,622
|
|
Store Count and Square Footage
The stores that opened during the third quarter of 2020 are as
follows:
Store
|
|
Market
|
|
Concept
|
Cape Cod,
MA
|
|
Cape Cod
|
|
DICK'S Sporting
Goods
|
Cumberland,
GA
|
|
Atlanta
|
|
DICK'S Sporting
Goods
|
Midland,
TX
|
|
Midland
|
|
DICK'S Sporting
Goods
|
San Antonio,
TX
|
|
San
Antonio
|
|
DICK'S Sporting
Goods
|
Annapolis,
MD
|
|
Baltimore
|
|
DICK'S Sporting
Goods
|
Copperfield,
TX
|
|
Houston
|
|
DICK'S Sporting
Goods
|
Myrtle Beach,
SC
|
|
Myrtle
Beach
|
|
Golf
Galaxy
|
Cumberland,
GA
|
|
Atlanta
|
|
Golf
Galaxy
|
Canton, OH
|
|
Canton /
Akron
|
|
Golf
Galaxy
|
Monroeville,
PA
|
|
Pittsburgh
|
|
Outlet
Store
|
Tempe, AZ
|
|
Phoenix
|
|
Outlet
Store
|
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
|
|
Q2 New
stores
|
|
—
|
|
|
3
|
|
|
3
|
|
|
2
|
|
|
2
|
|
|
4
|
|
Q3 New
stores
|
|
6
|
|
|
5
|
|
|
11
|
|
|
6
|
|
|
1
|
|
|
7
|
|
Closed
stores
|
|
1
|
|
|
5
|
|
|
6
|
|
|
4
|
|
|
9
|
|
|
13
|
|
Ending
stores
|
|
732
|
|
|
129
|
|
|
861
|
|
|
733
|
|
|
125
|
|
|
858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relocated
stores
|
|
12
|
|
|
3
|
|
|
15
|
|
|
3
|
|
|
2
|
|
|
5
|
|
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
|
|
Q2 2020
|
|
38.4
|
|
|
3.5
|
|
|
41.9
|
|
Q3 2020
|
|
38.7
|
|
|
3.6
|
|
|
42.3
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes the
Company's Golf Galaxy and Field & Stream stores, as well as the
Company's outlet 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
October 31, 2020, the Company operated 30 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 Reconciliations
|
|
|
13 Weeks Ended
October 31, 2020
|
|
|
|
|
|
|
|
|
Income from
operations
|
Interest
expense
|
Income before
income taxes
|
Net
income (2)
|
Diluted
shares
outstanding
during
period
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
|
246,093
|
|
$
|
12,769
|
|
$
|
237,070
|
|
$
|
177,216
|
|
96,571
|
|
$
|
1.84
|
|
% of Net
Sales
|
10.20
|
%
|
0.53
|
%
|
9.83
|
%
|
7.35
|
%
|
|
|
Convertible senior
notes (1)
|
—
|
|
(6,683)
|
|
6,683
|
|
4,945
|
|
(5,976)
|
|
|
Non-GAAP
Basis
|
$
|
246,093
|
|
$
|
6,086
|
|
$
|
243,753
|
|
$
|
182,161
|
|
90,595
|
|
$
|
2.01
|
|
% of Net
Sales
|
10.20
|
%
|
0.25
|
%
|
10.11
|
%
|
7.55
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Amortization of the
non-cash debt discount on the Company's convertible senior notes
and diluted shares that will be offset at settlement by shares
delivered from the convertible note hedge purchased by the
Company.
|
(2)
|
The provision for
income taxes for Non-GAAP adjustments was calculated at 26%, which
approximates the Company's blended tax rate.
|
|
39 Weeks Ended
October 31, 2020
|
|
|
|
|
|
|
|
|
Income from
operations
|
Interest
expense
|
Income
before
income taxes
|
Net
income
(2)
|
Diluted
shares
outstanding
during
period
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
|
451,277
|
|
$
|
35,496
|
|
$
|
420,512
|
|
$
|
310,637
|
|
90,430
|
|
$
|
3.44
|
|
% of Net
Sales
|
6.99
|
%
|
0.55
|
%
|
6.51
|
%
|
4.81
|
%
|
|
|
Convertible senior
notes (1)
|
—
|
|
(14,345)
|
|
14,345
|
|
10,615
|
|
(2,365)
|
|
|
Non-GAAP
Basis
|
$
|
451,277
|
|
$
|
21,151
|
|
$
|
434,857
|
|
$
|
321,252
|
|
88,065
|
|
$
|
3.65
|
|
% of Net
Sales
|
6.99
|
%
|
0.33
|
%
|
6.73
|
%
|
4.97
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Amortization of the
non-cash debt discount on the Company's convertible senior notes
and diluted shares that will be offset at settlement by shares
delivered from the convertible note hedge purchased by the Company.
This amount includes $1.1 million of amortization recognized in the
fiscal quarter ended May 2, 2020.
|
(2)
|
The provision for
income taxes for Non-GAAP adjustments was calculated at 26%, which
approximates the Company's blended tax rate.
|
|
13 Weeks Ended
November 2, 2019
|
|
|
|
|
|
|
|
|
Selling,
general
and
administrative
expenses
|
Income from
operations
|
Gain on sale
of
subsidiaries
|
Income
before
income
taxes
|
Net
income
(4)
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
|
531,704
|
|
$
|
45,625
|
|
$
|
(33,779)
|
|
$
|
77,146
|
|
$
|
57,584
|
|
$
|
0.66
|
|
% of Net
Sales
|
27.10
|
%
|
2.33
|
%
|
(1.72)
|
%
|
3.93
|
%
|
2.93
|
%
|
|
Gain on sale of
subsidiaries (1)
|
—
|
|
—
|
|
33,779
|
|
(33,779)
|
|
(24,996)
|
|
|
Field & Stream
store closing costs (2)
|
(8,938)
|
|
8,938
|
|
—
|
|
8,938
|
|
6,614
|
|
|
Non-cash asset
impairment (3)
|
(7,630)
|
|
7,630
|
|
—
|
|
7,630
|
|
5,646
|
|
|
Non-GAAP
Basis
|
$
|
515,136
|
|
$
|
62,193
|
|
$
|
—
|
|
$
|
59,935
|
|
$
|
44,848
|
|
$
|
0.52
|
|
% of Net
Sales
|
26.25
|
%
|
3.17
|
%
|
—
|
%
|
3.05
|
%
|
2.29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Gain on sale of Blue
Sombrero and Affinity Sports subsidiaries.
|
(2)
|
Charge related to the
Company's exit from eight Field & Stream stores, which were
subleased to Sportsman's Warehouse.
|
(3)
|
Non-cash impairment
charge to reduce the carrying value of a corporate aircraft held
for sale to its fair market value.
|
(4)
|
The provision for
income taxes for Non-GAAP adjustments was calculated at 26%, which
approximated the Company's blended tax rate.
|
|
39 Weeks Ended
November 2, 2019
|
|
|
|
|
|
|
|
|
Selling,
general
and
administrative
expenses
|
Income from
operations
|
Gain on sale
of
subsidiaries
|
Income
before
income
taxes
|
Net
income
(5)
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
|
1,539,934
|
|
$
|
276,701
|
|
$
|
(33,779)
|
|
$
|
307,911
|
|
$
|
227,643
|
|
$
|
2.53
|
|
% of Net
Sales
|
25.07
|
%
|
4.50
|
%
|
(0.55)
|
%
|
5.01
|
%
|
3.71
|
%
|
|
Gain on sale of
subsidiaries (1)
|
—
|
|
—
|
|
33,779
|
|
(33,779)
|
|
(24,996)
|
|
|
Field & Stream
store closing costs (2)
|
(8,938)
|
|
8,938
|
|
—
|
|
8,938
|
|
6,614
|
|
|
Non-cash asset
impairment (3)
|
(15,253)
|
|
15,253
|
|
—
|
|
15,253
|
|
11,287
|
|
|
Litigation
contingency settlement (4)
|
6,411
|
|
(6,411)
|
|
—
|
|
(6,411)
|
|
(4,744)
|
|
|
Non-GAAP
Basis
|
$
|
1,522,154
|
|
$
|
294,481
|
|
$
|
—
|
|
$
|
291,912
|
|
$
|
215,804
|
|
$
|
2.39
|
|
% of Net
Sales
|
24.78
|
%
|
4.79
|
%
|
—
|
%
|
4.75
|
%
|
3.51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Gain on sale of Blue
Sombrero and Affinity Sports subsidiaries.
|
(2)
|
Charge related to the
Company's exit from eight Field & Stream stores, which were
subleased to Sportsman's Warehouse.
|
(3)
|
Non-cash impairment
charge to reduce the carrying value of a corporate aircraft held
for sale to its fair market value.
|
(4)
|
Favorable settlement
of a previously accrued litigation contingency.
|
(5)
|
The provision for
income taxes for Non-GAAP adjustments was calculated at 26%, which
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.
|
|
39 Weeks
Ended
|
|
|
October
31,
2020
|
|
November
2,
2019
|
|
|
(dollars in thousands)
|
Gross capital
expenditures
|
|
$
|
(156,444)
|
|
|
$
|
(165,703)
|
|
Proceeds from
sale-leaseback transactions
|
|
—
|
|
|
—
|
|
Deferred construction
allowances
|
|
42,314
|
|
|
25,598
|
|
Construction
allowance receipts
|
|
—
|
|
|
—
|
|
Net capital
expenditures
|
|
$
|
(114,130)
|
|
|
$
|
(140,105)
|
|
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SOURCE DICK'S Sporting Goods, Inc.