PITTSBURGH, May 30, 2018
/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 5, 2018.
First Quarter Results
The Company reported consolidated net income for the first
quarter ended May 5, 2018 of $60.1
million, or $0.59 per diluted
share. The Company reported consolidated net income for the first
quarter ended April 29, 2017 of
$58.2 million, or $0.52 per diluted share.
On a non-GAAP basis, the Company reported consolidated net
income for the first quarter ended April 29,
2017 of $60.3 million, or
$0.54 per diluted share. First
quarter 2017 non-GAAP results excluded costs incurred to convert
former The Sports Authority ("TSA") stores. 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 2018 increased 4.6% to
approximately $1.91 billion. Adjusted
for the calendar shift due to the 53rd week in 2017,
consolidated same store sales decreased 2.5% on a 13-week to
13-week comparable basis. Based on an unshifted calendar,
consolidated same store sales for the first quarter decreased 0.9%.
Consolidated same store sales were impacted by a continued
deceleration in hunt and electronics sales, as well as colder
spring weather, which resulted in a delayed start to key outdoor
sports and activities. First quarter 2017 consolidated same store
sales increased 2.4%.
"Our strong first quarter earnings reflect improved execution
against our merchandising strategy, which resulted in higher
merchandise margins. Product newness, strength in our private
brands and a more refined assortment led to a much healthier
business, with fewer promotions and cleaner inventory throughout
the quarter. We believe these benefits will continue as we
further optimize our assortments," said Edward W. Stack, Chairman and Chief Executive
Officer. "We are also continuing to see the results of
investments in our digital experience, and we will continue to
invest as we build the best omni-channel experience for all
athletes."
"This is an exciting time for our Company as we focus on driving
executional excellence, delivering an improved shopping experience
and differentiating ourselves to create a premier omni-channel
experience," added Lauren R. Hobart,
President of DICK'S Sporting Goods. "We continue to see significant
opportunity to drive competitive marketplace advantage and win with
our athletes longer-term."
Omni-channel Development
Adjusted for the calendar shift due to the 53rd week
in 2017, eCommerce sales for the first quarter of 2018 increased
24%. eCommerce penetration for the first quarter of 2018 was
approximately 11% of total net sales, compared to approximately 9%
during the first quarter of 2017.
In the first quarter, the Company opened eight new DICK'S
Sporting Goods stores. As of May 5, 2018, the Company
operated 724 DICK'S Sporting Goods stores in 47 states, with
approximately 38.4 million square feet, 94 Golf Galaxy stores in 32
states, with approximately 2.0 million square feet, and 35 Field
& Stream stores in 16 states, with approximately 1.7 million
square feet.
Store count, square footage and new stores are listed in a table
later in the release under the heading "Store Count and Square
Footage."
Balance Sheet
The Company ended the first quarter
of 2018 with approximately $105 million in cash
and cash equivalents and approximately $280
million in outstanding borrowings under its revolving credit
facility. Over the course of the last 12 months, the Company
continued to invest in omni-channel growth, while returning over
$446 million to shareholders through
share repurchases and quarterly dividends.
Total inventory decreased 3.8% at the end of the first quarter
of 2018 as compared to the end of the first quarter of 2017.
Capital Allocation
On May 17, 2018, the Company's Board of Directors
authorized and declared a quarterly dividend in the amount of
$0.225 per share on the Company's
Common Stock and Class B Common Stock. The dividend is payable in
cash on June 29, 2018 to stockholders of record at the close
of business on June 8, 2018.
During the first quarter of 2018, the Company repurchased
approximately 3.3 million shares of its common stock at an average
cost of $32.33 per share, for a total
cost of $107.9 million. The Company
has approximately $650 million
remaining under its authorization that extends through 2021.
Full Year 2018 Outlook
- Based on an estimated 101 million diluted shares outstanding,
the Company currently anticipates reporting earnings per diluted
share in the range of $2.92 to 3.12,
compared to the previous range of $2.80 to 3.00. The Company's earnings per diluted
share guidance is not dependent upon share repurchases beyond the
$107.9 million executed through the
first quarter of fiscal 2018. The Company reported GAAP and
non-GAAP earnings per diluted share of $3.01 for the 53 weeks ended February 3, 2018.
- Consolidated same store sales are currently expected to be in
the range of approximately flat to a low single-digit decline on a
52-week to 52-week comparative basis, compared to a decline of 0.3%
in 2017.
- The Company expects to open 19 new DICK'S Sporting Goods stores
and relocate four DICK'S Sporting Goods stores in 2018. The Company
does not expect to open any new Field & Stream or Golf Galaxy
stores in 2018.
- In 2018, the Company anticipates net capital expenditures to be
approximately $250 million. In 2017,
net capital expenditures were $373
million.
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.
In addition to the webcast, the call can be accessed by dialing
(877) 443-5743 (domestic callers) or (412) 902-6617 (international
callers) and requesting the "DICK'S Sporting Goods Earnings
Call."
For those who cannot listen to the live webcast, it will be
archived on the Company's website for approximately 30 days. In
addition, a dial-in replay of the call will be available. To listen
to the replay, investors should dial (877) 344-7529 (domestic
callers) or (412) 317-0088 (international callers) and enter
confirmation code 10119905. The dial-in replay will be available
for approximately 30 days following the live call.
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 outlook for earnings and sales in
2018; 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; the streamlining
of the Company's vendor base and execution of the Company's new
merchandising strategy 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; negative
reactions to our policies related to the sale of firearms and
accessories; vendors continuing to sell or increasingly selling
their products directly to customers or through broadened or
alternative distribution channels; 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; risks relating to
our private brand offerings and new retail concepts; 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. 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 5,
2018, the Company operated more than 720 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 associates, 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 a comprehensive
range of services including technology solutions such as online
registration and league management services, and mobile apps for
scheduling, communications and live scorekeeping; team gear such as
uniforms and equipment, 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 Press Room or Investor
Relations pages at dicks.com.
Contacts:
Investor Relations:
Steve West, Vice President of
Investor Relations
DICK'S Sporting Goods, Inc.
investors@dcsg.com
(724) 273-3400
Media Relations:
(724) 273-5552 or press@dcsg.com
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED
|
(In thousands,
except per share data)
|
|
|
|
13 Weeks
Ended
|
|
|
May 5,
2018
|
|
% of
Sales(1)
|
|
April 29,
2017
|
|
% of
Sales (1)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,909,719
|
|
|
100.00
|
%
|
|
$
|
1,825,252
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and
distribution costs (2)
|
|
1,349,350
|
|
|
70.66
|
|
|
1,283,387
|
|
|
70.31
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
560,369
|
|
|
29.34
|
|
|
541,865
|
|
|
29.69
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
470,328
|
|
|
24.63
|
|
|
439,341
|
|
|
24.07
|
|
Pre-opening
expenses
|
|
2,709
|
|
|
0.14
|
|
|
12,456
|
|
|
0.68
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
87,332
|
|
|
4.57
|
|
|
90,068
|
|
|
4.93
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
2,656
|
|
|
0.14
|
|
|
1,264
|
|
|
0.07
|
|
Other expense
(income)
|
|
886
|
|
|
0.05
|
|
|
(2,879)
|
|
|
(0.16)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
83,790
|
|
|
4.39
|
|
|
91,683
|
|
|
5.02
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
23,705
|
|
|
1.24
|
|
|
33,488
|
|
|
1.83
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
60,085
|
|
|
3.15
|
%
|
|
$
|
58,195
|
|
|
3.19
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.59
|
|
|
|
|
$
|
0.53
|
|
|
|
Diluted
|
|
$
|
0.59
|
|
|
|
|
$
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
101,384
|
|
|
|
|
110,441
|
|
|
|
Diluted
|
|
102,153
|
|
|
|
|
111,406
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividend
declared per share
|
|
$
|
0.225
|
|
|
|
|
$
|
0.170
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Column does not add due to
rounding.
|
(2) 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.
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS - UNAUDITED
|
(Dollars in
thousands)
|
|
|
|
May 5,
2018
|
|
April 29,
2017
|
|
February 3,
2018
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
104,599
|
|
|
$
|
108,400
|
|
|
$
|
101,253
|
|
Accounts receivable,
net
|
|
67,225
|
|
|
85,918
|
|
|
60,107
|
|
Income taxes
receivable
|
|
4,018
|
|
|
2,046
|
|
|
4,433
|
|
Inventories,
net
|
|
1,842,897
|
|
|
1,916,508
|
|
|
1,711,103
|
|
Prepaid expenses and
other current assets
|
|
144,827
|
|
|
141,744
|
|
|
129,189
|
|
Total current
assets
|
|
2,163,566
|
|
|
2,254,616
|
|
|
2,006,085
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,644,388
|
|
|
1,568,523
|
|
|
1,677,340
|
|
Intangible assets,
net
|
|
134,979
|
|
|
139,447
|
|
|
136,587
|
|
Goodwill
|
|
250,476
|
|
|
245,059
|
|
|
250,476
|
|
Other
assets:
|
|
|
|
|
|
|
Deferred income
taxes
|
|
11,842
|
|
|
10,546
|
|
|
13,639
|
|
Other
|
|
114,163
|
|
|
114,533
|
|
|
119,812
|
|
Total other
assets
|
|
126,005
|
|
|
125,079
|
|
|
133,451
|
|
TOTAL
ASSETS
|
|
$
|
4,319,414
|
|
|
$
|
4,332,724
|
|
|
$
|
4,203,939
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
791,646
|
|
|
$
|
930,291
|
|
|
$
|
843,075
|
|
Accrued
expenses
|
|
302,985
|
|
|
356,478
|
|
|
354,181
|
|
Deferred revenue and
other liabilities
|
|
183,042
|
|
|
183,949
|
|
|
212,080
|
|
Income taxes
payable
|
|
29,698
|
|
|
43,117
|
|
|
10,476
|
|
Current portion of
other long-term debt and leasing
obligations
|
|
5,184
|
|
|
648
|
|
|
5,202
|
|
Total current
liabilities
|
|
1,312,555
|
|
|
1,514,483
|
|
|
1,425,014
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
Revolving credit
borrowings
|
|
280,100
|
|
|
92,450
|
|
|
—
|
|
Other long-term debt
and leasing obligations
|
|
58,769
|
|
|
4,520
|
|
|
60,084
|
|
Deferred income
taxes
|
|
17,190
|
|
|
4,544
|
|
|
10,232
|
|
Deferred rent and
other liabilities
|
|
752,590
|
|
|
755,903
|
|
|
767,108
|
|
Total long-term
liabilities
|
|
1,108,649
|
|
|
857,417
|
|
|
837,424
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Common
stock
|
|
754
|
|
|
858
|
|
|
783
|
|
Class B common
stock
|
|
246
|
|
|
247
|
|
|
247
|
|
Additional paid-in
capital
|
|
1,185,522
|
|
|
1,148,022
|
|
|
1,177,778
|
|
Retained
earnings
|
|
2,262,552
|
|
|
1,993,426
|
|
|
2,205,651
|
|
Accumulated other
comprehensive loss
|
|
(100)
|
|
|
(159)
|
|
|
(78)
|
|
Treasury stock, at
cost
|
|
(1,550,764)
|
|
|
(1,181,570)
|
|
|
(1,442,880)
|
|
Total stockholders'
equity
|
|
1,898,210
|
|
|
1,960,824
|
|
|
1,941,501
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
4,319,414
|
|
|
$
|
4,332,724
|
|
|
$
|
4,203,939
|
|
|
|
|
|
|
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS - UNAUDITED
|
(Dollars in
thousands)
|
|
|
|
13 Weeks
Ended
|
|
|
May 5,
2018
|
|
April 29,
2017
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
|
$
|
60,085
|
|
|
$
|
58,195
|
|
Adjustments to
reconcile net income to net cash (used in) provided by
operating activities
|
|
|
|
|
Depreciation and
amortization
|
|
56,433
|
|
|
53,044
|
|
Deferred income
taxes
|
|
1,557
|
|
|
39,925
|
|
Stock-based
compensation
|
|
11,666
|
|
|
9,147
|
|
Other non-cash
items
|
|
233
|
|
|
180
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(2,463)
|
|
|
1,993
|
|
Inventories
|
|
(112,332)
|
|
|
(277,876)
|
|
Prepaid expenses and
other assets
|
|
(4,815)
|
|
|
(26,662)
|
|
Accounts
payable
|
|
19,958
|
|
|
209,201
|
|
Accrued
expenses
|
|
(39,322)
|
|
|
(21,533)
|
|
Income taxes payable /
receivable
|
|
19,637
|
|
|
(9,856)
|
|
Deferred construction
allowances
|
|
5,734
|
|
|
25,117
|
|
Deferred revenue and
other liabilities
|
|
(35,470)
|
|
|
(24,403)
|
|
Net cash (used in)
provided by operating activities
|
|
(19,099)
|
|
|
36,472
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
expenditures
|
|
(49,349)
|
|
|
(113,892)
|
|
Deposits and purchases
of other assets
|
|
—
|
|
|
(2,344)
|
|
Net cash used in
investing activities
|
|
(49,349)
|
|
|
(116,236)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Revolving credit
borrowings
|
|
692,800
|
|
|
645,200
|
|
Revolving credit
repayments
|
|
(412,700)
|
|
|
(552,750)
|
|
Payments on other
long-term debt and leasing obligations
|
|
(1,333)
|
|
|
(157)
|
|
Construction allowance
receipts
|
|
—
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
—
|
|
|
13,592
|
|
Minimum tax
withholding requirements
|
|
(3,919)
|
|
|
(5,540)
|
|
Cash paid for treasury
stock
|
|
(107,917)
|
|
|
(23,197)
|
|
Cash dividend paid to
stockholders
|
|
(23,728)
|
|
|
(19,287)
|
|
Decrease in bank
overdraft
|
|
(71,387)
|
|
|
(34,447)
|
|
Net cash provided by
financing activities
|
|
71,816
|
|
|
23,414
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH
EQUIVALENTS
|
|
(22)
|
|
|
(27)
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
3,346
|
|
|
(56,377)
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
101,253
|
|
|
164,777
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
104,599
|
|
|
$
|
108,400
|
|
Store Count and Square Footage
The stores that opened during the first quarter of 2018 are as
follows:
Store
|
|
Market
|
|
Concept
|
Baxter, MN
|
|
Baxter
|
|
DICK'S Sporting
Goods
|
St. Petersburg,
FL
|
|
Tampa
|
|
DICK'S Sporting
Goods
|
Santa Maria,
CA
|
|
Santa
Maria
|
|
DICK'S Sporting
Goods
|
Lancaster,
PA
|
|
Lancaster
|
|
DICK'S Sporting
Goods
|
Pace, FL
|
|
Pensacola
|
|
DICK'S Sporting
Goods
|
Mesquite,
TX
|
|
Dallas
|
|
DICK'S Sporting
Goods
|
Waco, TX
|
|
Waco
|
|
DICK'S Sporting
Goods
|
North Little Rock,
AR
|
|
Little
Rock
|
|
DICK'S Sporting
Goods
|
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
|
|
Closed
stores
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Ending
stores
|
|
724
|
|
|
129
|
|
|
853
|
|
|
691
|
|
|
130
|
|
|
821
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relocated
stores
|
|
2
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Square
Footage:
|
(in
millions)
|
|
|
|
DICK'S
Sporting
Goods(1)
|
|
Specialty
Concept
Stores(1)
|
|
Total
|
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
|
|
|
(1) Includes the
Company's Golf Galaxy, Field & Stream and other specialty
concept stores. In some markets we
operate adjacent stores
on the same property with a pass-through for customers. We refer to
this format as a
"combo store" and
include combo store openings within both the DICK'S Sporting Goods
and specialty concept
store reconciliations,
as applicable. As of May 5, 2018, the Company operated 20
combo stores.
|
DICK'S SPORTING
GOODS, INC.
|
GAAP to NON-GAAP
RECONCILIATIONS - UNAUDITED
|
(Dollars in
thousands, except per share amounts)
|
|
|
13 Weeks Ended
April 29, 2017
|
|
|
|
|
|
|
Pre-opening
expenses
|
Income
before
income
taxes
|
Net income
(2)
|
Earnings per
diluted share
|
GAAP Basis
|
$
|
12,456
|
|
$
|
91,683
|
|
$
|
58,195
|
|
$
|
0.52
|
|
% of Net
Sales
|
0.68
|
%
|
5.02
|
%
|
3.19
|
%
|
|
TSA conversion costs
(1)
|
(3,474)
|
|
3,474
|
|
2,154
|
|
|
Non-GAAP
Basis
|
$
|
8,982
|
|
$
|
95,157
|
|
$
|
60,349
|
|
$
|
0.54
|
|
% of Net
Sales
|
0.49
|
%
|
5.21
|
%
|
3.31
|
%
|
|
|
(1)
Costs related to converting former TSA stores.
|
(2)
The provision for income taxes for non-GAAP adjustments was
calculated at 38%, which approximated the
Company's
blended tax rate.
|
|
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.
|
|
13 Weeks
Ended
|
|
|
May 5,
2018
|
|
April 29,
2017
|
|
|
(dollars in thousands)
|
Gross capital
expenditures
|
|
$
|
(49,349)
|
|
|
$
|
(113,892)
|
|
Proceeds from
sale-leaseback transactions
|
|
—
|
|
|
—
|
|
Deferred construction
allowances
|
|
5,734
|
|
|
25,117
|
|
Construction
allowance receipts
|
|
—
|
|
|
—
|
|
Net capital
expenditures
|
|
$
|
(43,615)
|
|
|
$
|
(88,775)
|
|
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SOURCE DICK'S Sporting Goods, Inc.