PITTSBURGH, Aug. 29, 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 second quarter ended
August 4, 2018.
Second Quarter Results
The Company reported consolidated net income for the second
quarter ended August 4, 2018 of $119.4
million, or $1.20 per diluted
share. The Company reported consolidated net income for the second
quarter ended July 29, 2017 of
$112.4 million, or $1.03 per diluted share, and non-GAAP
consolidated net income of $104.8
million, or $0.96 per diluted
share, which is detailed in a table later in the release under the
heading "GAAP to non-GAAP Reconciliations."
Net sales for the second quarter of 2018 increased 1.0% to
approximately $2.18 billion. Adjusted
for the calendar shift due to the 53rd week in 2017,
which we believe is the best view of the business, consolidated
same store sales decreased 4.0% on a 13-week to 13-week comparable
basis. Based on an unshifted calendar, consolidated same store
sales for the second quarter decreased 1.9%. Second quarter 2017
consolidated same store sales increased 0.1%.
"As we continue to focus on driving profitable sales, we are
very pleased with our strong gross margin improvement. An improved
product cycle, fewer promotions, and a favorable product mix
contributed to the overall strength in our merchandise margin,"
said Edward W. Stack, Chairman and
Chief Executive Officer.
Mr. Stack continued, "We delivered double digit growth in
eCommerce, private brands, and athletic apparel excluding Under
Armour, however, as expected, sales were impacted by the strategic
decisions we made regarding the slow growth, low margin hunt and
electronics businesses, which accounted for nearly half of our comp
decline. In addition, we experienced continued significant
declines in Under Armour sales as a result of their decision to
expand distribution. We are very confident our sales trajectory
will improve next year as these headwinds are expected to
subside."
"We have made great progress in executing our strategic
framework, particularly in delivering productivity improvements,
which are leading to real savings that are being reinvested in
long-term growth initiatives such as eCommerce and Team Sports
HQ," said Lauren R. Hobart, President of DICK'S Sporting
Goods. "Additionally, we continue to develop a leading
omni-channel experience for athletes through improvements in our
in-store and online experiences."
Omni-channel Development
Adjusted for the calendar shift due to the 53rd week
in 2017, eCommerce sales for the second quarter of 2018 increased
12%. eCommerce penetration for the second quarter of 2018 was
approximately 11% of total net sales, compared to approximately 9%
during the second quarter of 2017.
In the second quarter, the Company opened five new DICK'S
Sporting Goods stores. As of August 4, 2018, the Company
operated 729 DICK'S Sporting Goods stores in 47 states, with
approximately 38.7 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 second quarter
of 2018 with approximately $124 million in cash
and cash equivalents and approximately $108
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
$381 million to shareholders through
share repurchases and quarterly dividends.
Total inventory decreased 6.4% at the end of the second quarter
of 2018 as compared to the end of the second quarter of 2017.
Year-to-Date Results
The Company reported consolidated net income for the 26 weeks
ended August 4, 2018 of $179.5 million, or $1.78 per diluted share. For the 26 weeks ended
July 29, 2017, the Company reported
consolidated net income of $170.6
million, or $1.55 per diluted
share, and non-GAAP consolidated net income of $165.1 million, or $1.50 per diluted share, which is detailed in a
table later in the release under the heading "GAAP to non-GAAP
Reconciliations."
Net sales for the 26 weeks ended August
4, 2018 increased 2.6% to approximately $4.09 billion. Adjusted for the calendar shift
due to the 53rd week in 2017, which we believe is the
best view of the business, consolidated same store sales decreased
3.3% on a 26-week to 26-week comparable basis. Based on an
unshifted calendar, consolidated same store sales for the 26 weeks
ended August 4, 2018 decreased 1.4%.
We delivered double digit growth in eCommerce, private brands, and
athletic apparel excluding Under Armour. As expected, consolidated
same store sales were impacted by our strategic decisions regarding
the slow growth, low margin hunt and electronics businesses, which
accounted for more than half of our comp decline. In addition, we
experienced continued significant declines in Under Armour sales as
a result of their decision to expand distribution. Consolidated
same store sales for the 26 weeks ended July
29, 2017 increased 1.1%.
Capital Allocation
On August 24, 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 September 28, 2018 to stockholders of record at the
close of business on September 14, 2018.
During the second quarter of 2018, the Company repurchased
approximately 2.2 million shares of its common stock at an average
cost of $33.27 per share, for a total
cost of $73.8 million. The Company
has approximately $575 million
remaining under its authorization that extends through 2021.
Full Year 2018 Outlook
- The Company currently anticipates reporting earnings per
diluted share in the range of $3.02
to $3.20. The Company's earnings per
diluted share guidance is not dependent upon additional share
repurchases. The Company reported earnings per diluted share of
$3.01 for the 53 weeks ended
February 3, 2018.
- Consolidated same store sales are currently expected to decline
3% to 4% 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.
- The Company now anticipates net capital expenditures to be
approximately $225 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 second 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 30 days.
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 return of free cash flow to shareholders through
dividends 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,
surcharges, and tariffs; 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 and
our Quarterly Report filed with the SEC on May 31, 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 August 4,
2018, 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 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
|
|
|
August 4,
2018
|
|
% of
Sales
|
|
July 29,
2017
|
|
% of
Sales
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,177,488
|
|
|
100.00
|
%
|
|
$
|
2,156,911
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and
distribution costs
|
|
1,518,207
|
(1)
|
|
69.72
|
|
|
1,519,689
|
(1)
|
|
70.46
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
659,281
|
|
|
30.28
|
|
|
637,222
|
|
|
29.54
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
495,325
|
|
|
22.75
|
|
|
470,267
|
|
|
21.80
|
|
Pre-opening
expenses
|
|
1,429
|
|
|
0.07
|
|
|
7,765
|
|
|
0.36
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
162,527
|
|
|
7.46
|
|
|
159,190
|
|
|
7.38
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
3,050
|
|
|
0.14
|
|
|
2,216
|
|
|
0.10
|
|
Other
income
|
|
(2,187)
|
|
|
(0.10)
|
|
|
(14,470)
|
|
|
(0.67)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
161,664
|
|
|
7.42
|
|
|
171,444
|
|
|
7.95
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
42,267
|
|
|
1.94
|
|
|
59,059
|
|
|
2.74
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
119,397
|
|
|
5.48
|
%
|
|
$
|
112,385
|
|
|
5.21
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.21
|
|
|
|
|
$
|
1.04
|
|
|
|
Diluted
|
|
$
|
1.20
|
|
|
|
|
$
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
98,716
|
|
|
|
|
108,175
|
|
|
|
Diluted
|
|
99,591
|
|
|
|
|
108,679
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED
(In thousands,
except per share data)
|
|
|
|
26 Weeks
Ended
|
|
|
August 4,
2018
|
|
% of
Sales(1)
|
|
July 29,
2017
|
|
%
of
Sales(1)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
4,087,207
|
|
|
100.00
|
%
|
|
$
|
3,982,164
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and
distribution costs
|
|
2,867,557
|
(2)
|
|
70.16
|
|
|
2,803,076
|
(2)
|
|
70.39
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
1,219,650
|
|
|
29.84
|
|
|
1,179,088
|
|
|
29.61
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
965,653
|
|
|
23.63
|
|
|
909,608
|
|
|
22.84
|
|
Pre-opening
expenses
|
|
4,138
|
|
|
0.10
|
|
|
20,221
|
|
|
0.51
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
249,859
|
|
|
6.11
|
|
|
249,259
|
|
|
6.26
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
5,706
|
|
|
0.14
|
|
|
3,480
|
|
|
0.09
|
|
Other
income
|
|
(1,301)
|
|
|
(0.03)
|
|
|
(17,348)
|
|
|
(0.44)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
245,454
|
|
|
6.01
|
|
|
263,127
|
|
|
6.61
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
65,972
|
|
|
1.61
|
|
|
92,547
|
|
|
2.32
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
179,482
|
|
|
4.39
|
%
|
|
$
|
170,580
|
|
|
4.28
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.79
|
|
|
|
|
$
|
1.56
|
|
|
|
Diluted
|
|
$
|
1.78
|
|
|
|
|
$
|
1.55
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
100,050
|
|
|
|
|
109,308
|
|
|
|
Diluted
|
|
100,872
|
|
|
|
|
110,043
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
|
$
|
0.45
|
|
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
August 4,
2018
|
|
July 29,
2017
|
|
February 3,
2018
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
124,270
|
|
|
$
|
131,615
|
|
|
$
|
101,253
|
|
Accounts receivable,
net
|
|
63,977
|
|
|
86,355
|
|
|
60,107
|
|
Income taxes
receivable
|
|
3,578
|
|
|
11,401
|
|
|
4,433
|
|
Inventories,
net
|
|
1,795,794
|
|
|
1,917,912
|
|
|
1,711,103
|
|
Prepaid expenses and
other current assets
|
|
137,323
|
|
|
130,001
|
|
|
129,189
|
|
Total current
assets
|
|
2,124,942
|
|
|
2,277,284
|
|
|
2,006,085
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,611,532
|
|
|
1,611,834
|
|
|
1,677,340
|
|
Intangible assets,
net
|
|
133,373
|
|
|
137,920
|
|
|
136,587
|
|
Goodwill
|
|
250,476
|
|
|
245,126
|
|
|
250,476
|
|
Other
assets:
|
|
|
|
|
|
|
Deferred income
taxes
|
|
10,894
|
|
|
11,129
|
|
|
13,639
|
|
Other
|
|
113,941
|
|
|
112,018
|
|
|
119,812
|
|
Total other
assets
|
|
124,835
|
|
|
123,147
|
|
|
133,451
|
|
TOTAL
ASSETS
|
|
$
|
4,245,158
|
|
|
$
|
4,395,311
|
|
|
$
|
4,203,939
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
835,098
|
|
|
$
|
968,396
|
|
|
$
|
843,075
|
|
Accrued
expenses
|
|
349,701
|
|
|
365,680
|
|
|
354,181
|
|
Deferred revenue and
other liabilities
|
|
177,131
|
|
|
174,758
|
|
|
212,080
|
|
Income taxes
payable
|
|
21,568
|
|
|
—
|
|
|
10,476
|
|
Current portion of
other long-term debt and leasing
obligations
|
|
5,233
|
|
|
666
|
|
|
5,202
|
|
Total current
liabilities
|
|
1,388,731
|
|
|
1,509,500
|
|
|
1,425,014
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
Revolving credit
borrowings
|
|
108,400
|
|
|
186,800
|
|
|
—
|
|
Other long-term debt
and leasing obligations
|
|
57,424
|
|
|
4,343
|
|
|
60,084
|
|
Deferred income
taxes
|
|
19,102
|
|
|
3,531
|
|
|
10,232
|
|
Deferred rent and
other liabilities
|
|
740,275
|
|
|
769,877
|
|
|
767,108
|
|
Total long-term
liabilities
|
|
925,201
|
|
|
964,551
|
|
|
837,424
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Common
stock
|
|
732
|
|
|
825
|
|
|
783
|
|
Class B common
stock
|
|
245
|
|
|
247
|
|
|
247
|
|
Additional paid-in
capital
|
|
1,195,875
|
|
|
1,157,480
|
|
|
1,177,778
|
|
Retained
earnings
|
|
2,359,024
|
|
|
2,087,318
|
|
|
2,205,651
|
|
Accumulated other
comprehensive loss
|
|
(120)
|
|
|
(78)
|
|
|
(78)
|
|
Treasury stock, at
cost
|
|
(1,624,530)
|
|
|
(1,324,532)
|
|
|
(1,442,880)
|
|
Total stockholders'
equity
|
|
1,931,226
|
|
|
1,921,260
|
|
|
1,941,501
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
4,245,158
|
|
|
$
|
4,395,311
|
|
|
$
|
4,203,939
|
|
|
|
|
|
|
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS - UNAUDITED
(Dollars in
thousands)
|
|
|
|
26 Weeks
Ended
|
|
|
August 4,
2018
|
|
July 29,
2017
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
|
$
|
179,482
|
|
|
$
|
170,580
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities
|
|
|
|
|
Depreciation and
amortization
|
|
120,059
|
|
|
109,085
|
|
Deferred income
taxes
|
|
4,417
|
|
|
38,262
|
|
Stock-based
compensation
|
|
22,106
|
|
|
16,029
|
|
Other non-cash
items
|
|
466
|
|
|
361
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(7,315)
|
|
|
(7,748)
|
|
Inventories
|
|
(65,229)
|
|
|
(279,280)
|
|
Prepaid expenses and
other assets
|
|
10,447
|
|
|
(12,986)
|
|
Accounts
payable
|
|
62,357
|
|
|
245,909
|
|
Accrued
expenses
|
|
9,556
|
|
|
(2,785)
|
|
Income taxes payable /
receivable
|
|
11,947
|
|
|
(62,328)
|
|
Deferred construction
allowances
|
|
13,146
|
|
|
63,889
|
|
Deferred revenue and
other liabilities
|
|
(45,550)
|
|
|
(34,496)
|
|
Net cash provided by
operating activities
|
|
315,889
|
|
|
244,492
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
expenditures
|
|
(96,515)
|
|
|
(235,713)
|
|
Deposits and purchases
of other assets
|
|
—
|
|
|
(2,344)
|
|
Net cash used in
investing activities
|
|
(96,515)
|
|
|
(238,057)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Revolving credit
borrowings
|
|
1,162,800
|
|
|
1,748,700
|
|
Revolving credit
repayments
|
|
(1,054,400)
|
|
|
(1,561,900)
|
|
Payments on other
long-term debt and leasing obligations
|
|
(2,629)
|
|
|
(316)
|
|
Construction allowance
receipts
|
|
—
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
—
|
|
|
16,290
|
|
Minimum tax
withholding requirements
|
|
(4,006)
|
|
|
(5,660)
|
|
Cash paid for treasury
stock
|
|
(181,706)
|
|
|
(166,194)
|
|
Cash dividends paid to
stockholders
|
|
(46,040)
|
|
|
(37,521)
|
|
Decrease in bank
overdraft
|
|
(70,334)
|
|
|
(33,050)
|
|
Net cash used in
financing activities
|
|
(196,315)
|
|
|
(39,651)
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH
EQUIVALENTS
|
|
(42)
|
|
|
54
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
23,017
|
|
|
(33,162)
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
101,253
|
|
|
164,777
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
124,270
|
|
|
$
|
131,615
|
|
Store Count and Square Footage
The stores that opened during the second quarter of 2018 are as
follows:
Store
|
|
Market
|
|
Concept
|
West Long Branch,
NJ
|
|
New Jersey
North
|
|
DICK'S Sporting
Goods
|
Gurnee, IL
|
|
Chicago
|
|
DICK'S Sporting
Goods
|
McAllen,
TX
|
|
McAllen
|
|
DICK'S Sporting
Goods
|
Richmond,
VA
|
|
Richmond
|
|
DICK'S Sporting
Goods
|
Fort Collins,
CO
|
|
Fort
Collins
|
|
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
|
|
Q2 New
stores
|
|
5
|
|
|
—
|
|
|
5
|
|
|
13
|
|
|
—
|
|
|
13
|
|
Closed
stores
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Ending
stores
|
|
729
|
|
|
129
|
|
|
858
|
|
|
704
|
|
|
129
|
|
|
833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relocated
stores
|
|
3
|
|
|
—
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
(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 August 4, 2018, the
Company operated 20 combo stores.
|
|
|
(2)
|
Amount may not
recalculate due to rounding.
|
DICK'S SPORTING
GOODS, INC.
GAAP to NON-GAAP
RECONCILIATIONS - UNAUDITED
(Dollars in
thousands, except per share amounts)
|
|
|
13 Weeks Ended
July 29, 2017
|
|
|
|
|
|
|
|
Selling,
general
and administrative
expenses
|
Other
income
|
Income
before
income
taxes
|
Net
income
|
Earnings
per diluted
share
|
GAAP Basis
|
$
|
470,267
|
|
$
|
(14,470)
|
|
$
|
171,444
|
|
$
|
112,385
|
|
$
|
1.03
|
|
% of Net
Sales
|
21.80
|
%
|
(0.67)
|
%
|
7.95
|
%
|
5.21
|
%
|
|
Corporate
restructuring charge (1)
|
(7,077)
|
|
—
|
|
7,077
|
|
4,388
|
|
|
Contract termination
payment (2)
|
—
|
|
12,000
|
|
(12,000)
|
|
(12,000)
|
|
|
Non-GAAP
Basis
|
$
|
463,190
|
|
$
|
(2,470)
|
|
$
|
166,521
|
|
$
|
104,773
|
|
$
|
0.96
|
|
% of Net
Sales
|
21.47
|
%
|
(0.11)
|
%
|
7.72
|
%
|
4.86
|
%
|
|
|
|
(1)
|
Severance, other
employee-related costs and asset write-downs related to corporate
restructuring. The provision for income taxes was calculated at
38%, which approximated the Company's blended tax rate.
|
(2)
|
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.
|
|
26 Weeks Ended
July 29, 2017
|
|
|
|
|
|
|
|
|
Selling,
general and
administrative
expenses
|
Pre-
opening
expenses
|
Other
income
|
Income
before
income
taxes
|
Net
income (4)
|
Earnings
per diluted
share
|
GAAP Basis
|
$
|
909,608
|
|
$
|
20,221
|
|
$
|
(17,348)
|
|
$
|
263,127
|
|
$
|
170,580
|
|
$
|
1.55
|
|
% of Net
Sales
|
22.84
|
%
|
0.51
|
%
|
(0.44)
|
%
|
6.61
|
%
|
4.28
|
%
|
|
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)
|
|
|
Non-GAAP
Basis
|
$
|
902,531
|
|
$
|
16,747
|
|
$
|
(5,348)
|
|
$
|
261,678
|
|
$
|
165,122
|
|
$
|
1.50
|
|
% of Net
Sales
|
22.66
|
%
|
0.42
|
%
|
(0.13)
|
%
|
6.57
|
%
|
4.15
|
%
|
|
|
|
(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)
|
The provision for
income taxes for non-GAAP adjustments was calculated at 38%, which
approximated the Company's blended tax rate, unless otherwise
noted.
|
|
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.
|
|
26 Weeks
Ended
|
|
|
August 4,
2018
|
|
July 29,
2017
|
|
|
(dollars in thousands)
|
Gross capital
expenditures
|
|
$
|
(96,515)
|
|
|
$
|
(235,713)
|
|
Proceeds from
sale-leaseback transactions
|
|
—
|
|
|
—
|
|
Deferred construction
allowances
|
|
13,146
|
|
|
63,889
|
|
Construction
allowance receipts
|
|
—
|
|
|
—
|
|
Net capital
expenditures
|
|
$
|
(83,369)
|
|
|
$
|
(171,824)
|
|
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SOURCE DICK'S Sporting Goods, Inc.