PITTSBURGH, Aug. 22, 2019
/PRNewswire/ -- DICK'S Sporting Goods, Inc. (NYSE: DKS),
the largest U.S. based full-line omni-channel sporting goods
retailer, today reported sales and earnings results for the second
quarter ended August 3, 2019.
Second Quarter Results
The Company reported consolidated net income for the second
quarter ended August 3, 2019 of $112.5
million, or $1.26 per diluted
share. The Company reported consolidated net income for the second
quarter ended August 4, 2018 of
$119.4 million, or $1.20 per diluted share.
Net sales for the second quarter of 2019 increased 3.8% to
approximately $2.26 billion.
Consolidated same store sales increased 3.2%. Second quarter
2018 consolidated same store sales decreased 4.0%, adjusted for the
calendar shift due to the 53rd week in fiscal 2017,
which the Company believes is the best view of its business.
"We are very pleased with our second quarter results, as we
delivered a 3.2% comp sales increase and earnings per diluted share
above last year. Our strong comp sales performance was driven by
increases in both average ticket and transactions and represented
our strongest quarterly comp since 2016. We saw growth across each
of our three primary categories of hardlines, apparel and footwear,
our brick-and-mortar stores comped positively and our eCommerce
channel remained strong, increasing 21%," said Edward W. Stack, Chairman and Chief Executive
Officer. "Our key strategies and investments are working, our major
headwinds are behind us and we've bent the curve on sales. We are
very enthusiastic about our business and are pleased to increase
our full year sales and earnings outlook."
"During the second quarter, we made great progress in executing
against our strategic priorities and investments," added
Lauren R. Hobart, President. "Our
stores have really championed our new service standards, and their
efforts are moving the needle by supporting improved conversion
rates and our return to positive brick-and-mortar store comps
during the second quarter. Additionally, we remain focused on
continuously improving our online experience, and the opening of
our two new eCommerce fulfillment centers earlier this week will
provide our athletes with faster and more reliable delivery."
Omni-channel Development
eCommerce sales for the second quarter of 2019 increased 21%.
eCommerce penetration for the second quarter of 2019 was
approximately 12% of total net sales, compared to approximately 11%
during the second quarter of 2018.
In the second quarter, the Company opened two new DICK'S
Sporting Goods stores and closed two DICK'S Sporting Goods
stores. As of August 3, 2019, the Company operated 727
DICK'S Sporting Goods stores in 47 states, with approximately 38.6
million square feet, 95 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 2019 with approximately $116.7 million in
cash and cash equivalents and approximately $441.5 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 $502 million to
shareholders through share repurchases and quarterly dividends.
Total inventory increased 19.0% at the end of the second quarter
of 2019 as compared to the end of the second quarter of 2018. This
planned increase was due primarily to strategic investments to
support key growth categories.
The Company also amended and extended its revolving credit
facility as it increased its limit from $1.25 billion to $1.6
billion and extended the maturity to June 28, 2024 under substantially the same
terms.
Year-to-Date Results
The Company reported consolidated net income for the 26 weeks
ended August 3, 2019 of $170.1 million, or $1.85 per diluted share. For the 26 weeks ended
August 4, 2018, the Company reported
consolidated net income of $179.5
million, or $1.78 per diluted
share.
On a non-GAAP basis, the Company reported consolidated net
income for the 26 weeks ended August 3,
2019 of $171.0 million,
or $1.86 per diluted share, excluding a non-cash asset
impairment and the favorable settlement of a litigation
contingency. The GAAP to non-GAAP reconciliation is included in a
table later in the release under the heading "GAAP to Non-GAAP
Reconciliation."
Net sales for the 26 weeks ended August
3, 2019 increased 2.3% to approximately $4.18 billion. Consolidated same store sales
increased 1.7%. Consolidated same store sales decreased 3.3% for
the 26-weeks ended August 4, 2018,
adjusted for the calendar shift due to the
53rd week in 2017, which we believe is the best
view of the business.
Capital Allocation
On August 19, 2019, the Company's Board of Directors
authorized and declared a quarterly dividend in the amount of
$0.275 per share on the Company's
Common Stock and Class B Common Stock. The dividend is payable in
cash on September 27, 2019 to stockholders of record at the
close of business on September 13, 2019.
During the second quarter of 2019, the Company repurchased
approximately 4.5 million shares of its common stock at an average
cost of $35.52 per share, for a total
cost of $159.3 million. Under the
five-year share repurchase program authorized by the Board of
Directors in March 2016, the Company
has repurchased $833 million of
common stock and has approximately $167
million remaining under the program. On June 12, 2019, the Company's Board of Directors
authorized an additional five-year share repurchase program of up
to $1 billion of the Company's common
stock. The Company plans to continue to purchase under the 2016
program until it is exhausted or expired.
Subsequent Event
On August 22, 2019, the Company
completed the sale of two of its technology subsidiaries, Blue
Sombrero and Affinity Sports, to Stack Sports for $45 million. Stack Sports has no affiliation with
Edward W. Stack, Chairman and Chief
Executive Officer. The sale is expected to result in a one-time
gain which will be determined later in the third quarter.
Full Year 2019 Outlook
- Based on an estimated 90 million average diluted shares
outstanding, the Company currently projects earnings per diluted
share to be approximately $3.30 to
3.45. The Company reported earnings per diluted share
of $3.24 for the 52 weeks ended February 2, 2019.
- The Company's earnings per diluted share guidance includes
approximately $30 million of net
investments in business transformation initiatives.
- The Company's earnings per diluted share guidance includes the
expected impact from all tariffs currently in effect, as well as
the new 10% tariff on substantially all remaining Chinese imports
that is slated to go into effect on September 1, 2019 and December 15, 2019.
- The Company's earnings per diluted share guidance does not
reflect the impact of the one-time gain from the sale of its Blue
Sombrero and Affinity Sports subsidiaries. This gain will be
determined later in the third quarter and reported separately
within the Company's third quarter results.
- The Company is continuing the strategic review of its hunt
business, including Field & Stream.
- Consolidated same store sales are currently expected to
increase low single-digits, compared to a 3.1% decrease
in 2018.
- The Company expects to open eight new DICK'S Sporting Goods
stores and relocate three DICK'S Sporting Goods stores
in 2019. The Company also expects to open two new Golf Galaxy
stores and relocate two Golf Galaxy stores in 2019. Seven of the
new stores are expected to open during the third quarter.
- In 2019, the Company anticipates capital expenditures to
be approximately $230 million on a
gross basis and approximately $200
million on a net basis. In 2018, capital expenditures
were $198 million on a gross basis
and $170 million on a net basis.
Conference Call Info
The Company will host a conference call today at 10:00 a.m.
Eastern Time to discuss the 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 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.
Forward-Looking Statements Involving Known and Unknown Risks
and Uncertainties
This release contains forward-looking statements made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to
risks and uncertainties and change based on various important
factors, many of which may be beyond our control. Our future
performance and actual results may differ materially from those
expressed or implied in such forward-looking statements.
Forward-looking statements should not be relied upon by investors
as a prediction of actual results. Forward-looking statements
include statements regarding, among other things, the Company's
future performance, including 2019 outlook for earnings and sales;
our investments in business transformation initiatives; the opening
of two new eCommerce fulfillment centers; the impact of the sale of
Blue Sombrero and Affinity Sports; anticipated store openings and
store relocations; capital expenditures; 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: changes in consumer discretionary
spending; investments in our omni-channel growth not producing the
anticipated benefits within the expected time-frame or at all;
risks relating to our 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 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; the results of the strategic review of our hunt business;
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, 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 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 set forth in our
filings with the Securities and Exchange Commission ("SEC"),
including our most recent Annual Report filed with the SEC
on March 29, 2019 and our Quarterly Report filed with the
SEC on May 30, 2019. 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 3, 2019, the Company
operated 727 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, Director of Investor
Relations
DICK'S Sporting Goods, Inc.
investors@dcsg.com
(724) 273-3400
Media Relations:
(724) 273-5552 or press@dcsg.com
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED
|
(In thousands,
except per share data)
|
|
|
|
13 Weeks
Ended
|
|
|
August 3,
2019
|
|
% of
Sales(2)
|
|
August 4,
2018
|
|
% of
Sales
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,259,212
|
|
|
100.00
|
%
|
|
$
|
2,177,488
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and
distribution costs
(1)
|
|
1,582,141
|
|
|
70.03
|
|
|
1,518,207
|
|
|
69.72
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
677,071
|
|
|
29.97
|
|
|
659,281
|
|
|
30.28
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
521,072
|
|
|
23.06
|
|
|
495,325
|
|
|
22.75
|
|
Pre-opening
expenses
|
|
996
|
|
|
0.04
|
|
|
1,429
|
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
155,003
|
|
|
6.86
|
|
|
162,527
|
|
|
7.46
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
5,550
|
|
|
0.25
|
|
|
3,050
|
|
|
0.14
|
|
Other
income
|
|
(1,582)
|
|
|
(0.07)
|
|
|
(2,187)
|
|
|
(0.10)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
151,035
|
|
|
6.69
|
|
|
161,664
|
|
|
7.42
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
38,501
|
|
|
1.70
|
|
|
42,267
|
|
|
1.94
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
112,534
|
|
|
4.98
|
%
|
|
$
|
119,397
|
|
|
5.48
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.28
|
|
|
|
|
$
|
1.21
|
|
|
|
Diluted
|
|
$
|
1.26
|
|
|
|
|
$
|
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
88,080
|
|
|
|
|
98,716
|
|
|
|
Diluted
|
|
89,400
|
|
|
|
|
99,591
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
26 Weeks
Ended
|
|
|
August 3,
2019
|
|
% of
Sales
|
|
August 4,
2018
|
|
%
of Sales(2)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
4,179,889
|
|
|
100.00
|
%
|
|
$
|
4,087,207
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and
distribution costs
(1)
|
|
2,939,009
|
|
|
70.31
|
|
|
2,867,557
|
|
|
70.16
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
1,240,880
|
|
|
29.69
|
|
|
1,219,650
|
|
|
29.84
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
1,008,230
|
|
|
24.12
|
|
|
965,653
|
|
|
23.63
|
|
Pre-opening
expenses
|
|
1,574
|
|
|
0.04
|
|
|
4,138
|
|
|
0.10
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
231,076
|
|
|
5.53
|
|
|
249,859
|
|
|
6.11
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
8,631
|
|
|
0.21
|
|
|
5,706
|
|
|
0.14
|
|
Other
income
|
|
(8,320)
|
|
|
(0.20)
|
|
|
(1,301)
|
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
230,765
|
|
|
5.52
|
|
|
245,454
|
|
|
6.01
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
60,706
|
|
|
1.45
|
|
|
65,972
|
|
|
1.61
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
170,059
|
|
|
4.07
|
%
|
|
$
|
179,482
|
|
|
4.39
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.88
|
|
|
|
|
$
|
1.79
|
|
|
|
Diluted
|
|
$
|
1.85
|
|
|
|
|
$
|
1.78
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
90,483
|
|
|
|
|
100,050
|
|
|
|
Diluted
|
|
91,894
|
|
|
|
|
100,872
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
August 3,
2019
|
|
August 4,
2018
|
|
February 2,
2019
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
116,733
|
|
|
$
|
124,270
|
|
|
$
|
113,653
|
|
Accounts receivable,
net
|
|
64,096
|
|
|
63,977
|
|
|
37,970
|
|
Income taxes
receivable
|
|
4,389
|
|
|
3,578
|
|
|
6,135
|
|
Inventories,
net
|
|
2,136,797
|
|
|
1,795,794
|
|
|
1,824,696
|
|
Prepaid expenses and
other current assets
|
|
144,002
|
|
|
137,323
|
|
|
139,944
|
|
Total current
assets
|
|
2,466,017
|
|
|
2,124,942
|
|
|
2,122,398
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,479,855
|
|
|
1,611,532
|
|
|
1,565,271
|
|
Operating lease
assets
|
|
2,454,929
|
|
|
—
|
|
|
—
|
|
Intangible assets,
net
|
|
127,079
|
|
|
133,373
|
|
|
130,166
|
|
Goodwill
|
|
250,476
|
|
|
250,476
|
|
|
250,476
|
|
Other
assets:
|
|
|
|
|
|
|
Deferred income
taxes
|
|
14,600
|
|
|
10,894
|
|
|
13,243
|
|
Other
|
|
122,259
|
|
|
113,941
|
|
|
105,595
|
|
Total other
assets
|
|
136,859
|
|
|
124,835
|
|
|
118,838
|
|
TOTAL
ASSETS
|
|
$
|
6,915,215
|
|
|
$
|
4,245,158
|
|
|
$
|
4,187,149
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
906,721
|
|
|
$
|
835,098
|
|
|
$
|
889,908
|
|
Accrued
expenses
|
|
391,555
|
|
|
349,701
|
|
|
364,342
|
|
Operating lease
liabilities
|
|
410,477
|
|
|
—
|
|
|
—
|
|
Income taxes
payable
|
|
21,490
|
|
|
21,568
|
|
|
20,142
|
|
Deferred revenue and
other liabilities
|
|
195,148
|
|
|
182,364
|
|
|
230,247
|
|
Total current
liabilities
|
|
1,925,391
|
|
|
1,388,731
|
|
|
1,504,639
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
Revolving credit
borrowings
|
|
441,500
|
|
|
108,400
|
|
|
—
|
|
Long-term operating
lease liabilities
|
|
2,604,897
|
|
|
—
|
|
|
—
|
|
Deferred income
taxes
|
|
5,926
|
|
|
19,102
|
|
|
11,776
|
|
Other long-term
liabilities
|
|
172,415
|
|
|
797,699
|
|
|
766,573
|
|
Total long-term
liabilities
|
|
3,224,738
|
|
|
925,201
|
|
|
778,349
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Common
stock
|
|
623
|
|
|
732
|
|
|
693
|
|
Class B common
stock
|
|
245
|
|
|
245
|
|
|
245
|
|
Additional paid-in
capital
|
|
1,231,325
|
|
|
1,195,875
|
|
|
1,214,287
|
|
Retained
earnings
|
|
2,565,700
|
|
|
2,359,024
|
|
|
2,455,192
|
|
Accumulated other
comprehensive loss
|
|
(122)
|
|
|
(120)
|
|
|
(120)
|
|
Treasury stock, at
cost
|
|
(2,032,685)
|
|
|
(1,624,530)
|
|
|
(1,766,136)
|
|
Total stockholders'
equity
|
|
1,765,086
|
|
|
1,931,226
|
|
|
1,904,161
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
6,915,215
|
|
|
$
|
4,245,158
|
|
|
$
|
4,187,149
|
|
|
|
|
|
|
|
|
The Company adopted
ASU 2016-02, "Leases (Topic 842)", and related amendments as
of February 3, 2019 under the modified retrospective approach and,
therefore, has not revised comparative periods.
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS - UNAUDITED
|
(Dollars in
thousands)
|
|
|
|
26 Weeks
Ended
|
|
|
August 3,
2019
|
|
August 4,
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
|
$
|
170,059
|
|
|
$
|
179,482
|
|
Adjustments to
reconcile net income to net cash (used in) provided by
operating activities:
|
|
|
|
|
Depreciation,
amortization, and other
|
|
128,711
|
|
|
120,525
|
|
Deferred income
taxes
|
|
(4,609)
|
|
|
4,417
|
|
Stock-based
compensation
|
|
23,082
|
|
|
22,106
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(26,859)
|
|
|
(7,315)
|
|
Inventories
|
|
(312,101)
|
|
|
(65,229)
|
|
Prepaid expenses and
other assets
|
|
(5,169)
|
|
|
10,447
|
|
Accounts
payable
|
|
(10,550)
|
|
|
62,357
|
|
Accrued
expenses
|
|
17,909
|
|
|
9,556
|
|
Income taxes payable /
receivable
|
|
3,094
|
|
|
11,947
|
|
Deferred construction
allowances
|
|
21,961
|
|
|
13,146
|
|
Deferred revenue and
other liabilities
|
|
(32,752)
|
|
|
(45,550)
|
|
Net cash (used in)
provided by operating activities
|
|
(27,224)
|
|
|
315,889
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
expenditures
|
|
(110,992)
|
|
|
(96,515)
|
|
Deposits and purchases
of other assets
|
|
(1,000)
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(111,992)
|
|
|
(96,515)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Revolving credit
borrowings
|
|
1,185,850
|
|
|
1,162,800
|
|
Revolving credit
repayments
|
|
(744,350)
|
|
|
(1,054,400)
|
|
Payments on other
long-term debt and finance lease obligations
|
|
(2,644)
|
|
|
(2,629)
|
|
Construction allowance
receipts
|
|
—
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
273
|
|
|
—
|
|
Minimum tax
withholding requirements
|
|
(6,312)
|
|
|
(4,006)
|
|
Cash paid for treasury
stock
|
|
(266,624)
|
|
|
(181,706)
|
|
Cash dividends paid to
stockholders
|
|
(51,258)
|
|
|
(46,040)
|
|
Increase (decrease) in
bank overdraft
|
|
27,363
|
|
|
(70,334)
|
|
Net cash provided by
(used in) financing activities
|
|
142,298
|
|
|
(196,315)
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH
EQUIVALENTS
|
|
(2)
|
|
|
(42)
|
|
NET INCREASE IN CASH
AND CASH EQUIVALENTS
|
|
3,080
|
|
|
23,017
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
113,653
|
|
|
101,253
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
116,733
|
|
|
$
|
124,270
|
|
Store Count and Square Footage
The stores that opened during the second quarter of 2019 are as
follows:
Store
|
|
Market
|
|
Concept
|
Beaumont,
TX
|
|
Beaumont
|
|
DICK'S Sporting
Goods
|
Eastvale,
CA
|
|
Los
Angeles
|
|
DICK'S Sporting
Goods
|
The following represents a reconciliation of beginning and
ending stores and square footage for the periods indicated:
Store Count:
|
|
Fiscal
2019
|
|
Fiscal
2018
|
|
|
DICK'S
Sporting
Goods
|
|
Specialty Concept
Stores (1)
|
|
Total
|
|
DICK'S
Sporting
Goods
|
|
Specialty Concept
Stores (1)
|
|
Total
|
Beginning
stores
|
|
729
|
|
|
129
|
|
|
858
|
|
|
716
|
|
|
129
|
|
|
845
|
|
Q1 New
stores
|
|
—
|
|
|
1
|
|
|
1
|
|
|
8
|
|
|
—
|
|
|
8
|
|
Q2 New
stores
|
|
2
|
|
|
—
|
|
|
2
|
|
|
5
|
|
|
—
|
|
|
5
|
|
Closed
stores
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ending
stores
|
|
727
|
|
|
130
|
|
|
857
|
|
|
729
|
|
|
129
|
|
|
858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relocated
stores
|
|
1
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
—
|
|
|
3
|
|
Square Footage:
(in millions)
|
|
DICK'S
Sporting
Goods
|
|
Specialty
Concept
Stores (1)
|
|
Total
(2)
|
Q1 2018
|
|
38.4
|
|
|
3.7
|
|
|
42.1
|
|
Q2 2018
|
|
38.7
|
|
|
3.7
|
|
|
42.3
|
|
Q3 2018
|
|
38.8
|
|
|
3.6
|
|
|
42.4
|
|
Q4 2018
|
|
38.6
|
|
|
3.6
|
|
|
42.2
|
|
Q1 2019
|
|
38.6
|
|
|
3.6
|
|
|
42.2
|
|
Q2 2019
|
|
38.6
|
|
|
3.6
|
|
|
42.2
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes the
Company's Golf Galaxy, Field & Stream and other specialty
concept stores. In some markets we operate DICK'S Sporting Goods
stores adjacent to our specialty concept stores on the same
property with a pass-through for customers. We refer to this format
as a "combo store" and include combo store openings within both the
DICK'S Sporting Goods and specialty concept store reconciliations,
as applicable. As of August 3, 2019, the Company operated 24
combo stores.
|
|
|
(2)
|
Column may not add
due to rounding.
|
DICK'S SPORTING
GOODS, INC.
|
GAAP to NON-GAAP
RECONCILIATION - UNAUDITED
|
(Dollars in
thousands, except per share amounts)
|
|
|
26 Weeks Ended
August 3, 2019
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
Income
before
income
taxes
|
Net income
(3)
|
Earnings
per diluted share
|
GAAP Basis
|
$
|
1,008,230
|
|
$
|
230,765
|
|
$
|
170,059
|
|
$
|
1.85
|
|
% of Net
Sales
|
24.12
|
%
|
5.52
|
%
|
4.07
|
%
|
|
Non-cash asset
impairment (1)
|
(7,623)
|
|
7,623
|
|
5,641
|
|
|
Litigation
contingency settlement (2)
|
6,411
|
|
(6,411)
|
|
(4,744)
|
|
|
Non-GAAP
Basis
|
$
|
1,007,018
|
|
$
|
231,977
|
|
$
|
170,956
|
|
$
|
1.86
|
|
% of Net
Sales
|
24.09
|
%
|
5.55
|
%
|
4.09
|
%
|
|
|
|
|
|
|
|
|
|
(1)
|
Non-cash impairment
charge to reduce the carrying value of a corporate aircraft held
for sale to its fair market value.
|
(2)
|
Favorable settlement
of a previously accrued litigation contingency.
|
(3)
|
The provision for
income taxes for Non-GAAP adjustments was calculated at 26%, which
approximates 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.
|
|
26 Weeks
Ended
|
|
|
August 3,
2019
|
|
August 4,
2018
|
|
|
(dollars in thousands)
|
Gross capital
expenditures
|
|
$
|
(110,992)
|
|
|
$
|
(96,515)
|
|
Proceeds from
sale-leaseback transactions
|
|
—
|
|
|
—
|
|
Deferred construction
allowances
|
|
21,961
|
|
|
13,146
|
|
Construction
allowance receipts
|
|
—
|
|
|
—
|
|
Net capital
expenditures
|
|
$
|
(89,031)
|
|
|
$
|
(83,369)
|
|
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SOURCE DICK'S Sporting Goods, Inc.