PITTSBURGH, Aug. 26, 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 second quarter ended August 1,
2020.
Second Quarter Results
The Company reported consolidated net income for the second
quarter ended August 1, 2020 of $276.8
million, or $3.12 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 $42 million of
incremental teammate compensation and safety costs during the
current quarter. This was partially offset by the recovery of
$28 million of inventory write-downs
recorded in the first quarter due to the Company's strong second
quarter sales. The net impact of these items resulted in
approximately $14 million of pre-tax
expenses, or $0.12 per diluted share,
during the current quarter. The Company reported consolidated net
income for the second quarter ended August
3, 2019 of $112.5 million, or
$1.26 per diluted share.
On a non-GAAP basis, the Company reported consolidated net
income for the second quarter ended August 1, 2020
of $281.7 million, or $3.21 per diluted share. Second quarter 2020
non-GAAP results exclude non-cash amortization of the debt discount
associated with the Company's convertible senior notes, as well as
the share impact of the convertible note hedge purchased by the
Company, which is antidilutive for GAAP purposes. 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 second quarter of 2020 increased 20.1% to
approximately $2.71 billion.
Consolidated same store sales increased 20.7%, even with
approximately 15% of the Company's stores closed on average.
eCommerce sales increased 194%, including Curbside Contactless
Pickup. eCommerce penetration for the second quarter of 2020 was
approximately 30% of total net sales, compared to approximately 12%
during the second quarter of 2019. Second quarter 2019 consolidated
same store sales increased 3.2%.
"We had an exceptionally strong Q2 in which we delivered our
highest ever quarterly sales and earnings. These results are a
testament to the hard work and dedication of our teammates, who
reacted quickly to favorable shifts in consumer demand throughout
the quarter," said Edward W. Stack,
Chairman and Chief Executive Officer. "During this pandemic, the
importance of health and fitness has accelerated and participation
in socially distant, outdoor activities has increased. There has
also been a greater shift toward athletic and active lifestyle
product with people spending more time working and exercising at
home. The majority of our assortment sits squarely at the center of
these trends, and while mindful of the uncertainty in the current
environment, we are in a great lane right now."
Lauren R. Hobart, President,
added, "Our Q2 comps were supported by increases in both average
ticket and transactions, as well as growth across each of our three
primary categories of hardlines, apparel and footwear. By the end
of June, we re-opened 100% of our stores to the public, while
continuing to prioritize the health and well-being of our teammates
and athletes. As our stores re-opened, we saw the power of our
industry-leading omni-channel platform. We delivered positive
double-digit brick-and-mortar store comps during both June and
July, and our eCommerce sales remained very strong, increasing
nearly 200% for the quarter. In recognition of our hourly store and
distribution center teammates' efforts, which helped make these
results possible, we recently announced the 15% pay premium will be
extended through the end of the year."
Mr. Stack concluded, "The favorable shifts in consumer demand
that drove our strong comps during Q2 have continued into Q3 but
have been partially offset by softness across key back-to-school
categories because of the uncertain timing of a return to school
and fall team sports. Taken together, through the first three weeks
of Q3, our consolidated comp sales have increased 11%, which
demonstrates the strength of our diverse category portfolio."
Balance Sheet
The Company ended the second quarter
of 2020 with $1.1 billion in cash and cash
equivalents and no outstanding borrowings under its $1.855 billion revolving credit facility,
repaying the $1.4 billion of
borrowings that were outstanding at the end of the first quarter.
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 12.2% at the end of the second quarter
of 2020 as compared to the end of the second quarter of 2019.
Year-to-Date Results
The Company reported consolidated net income for the 26 weeks
ended August 1, 2020 of $133.4 million, or $1.53 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 $76 million, or $0.65 per diluted share, of incremental teammate
compensation and safety costs during the 26 weeks ended
August 1, 2020. For the 26 weeks
ended August 3, 2019, the Company
reported consolidated net income of $170.1
million, or $1.85 per diluted
share.
On a non-GAAP basis, the Company reported consolidated net
income for the 26 weeks ended August 1,
2020 of $139.1 million, or
$1.60 per diluted share, which
excludes non-cash amortization of the debt discount associated with
the Company's convertible senior notes, as well as the share impact
of the convertible note hedge purchased by the Company, which is
antidilutive for GAAP purposes. For the 26 weeks ended August 3, 2019, the Company reported consolidated
net income 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 reconciliations are
included in a table later in the release under the heading "GAAP to
Non-GAAP Reconciliations."
Net sales for the 26 weeks ended August
1, 2020 decreased 3.2% to approximately $4.05 billion. Despite temporary store closures
during March, April and May to help prevent the spread of COVID-19,
consolidated same store sales decreased only 2.3%. eCommerce sales
increased 154%, including Curbside Contactless Pickup. eCommerce
penetration for the 26 weeks ended August 1,
2020 was approximately 33% of total net sales, compared to
approximately 12% during the 26 weeks ended August 3, 2019. Consolidated same store sales
increased 1.7% for the 26 weeks ended August
3, 2019.
Capital Allocation
On June 10, 2020, the Company
reinstated its dividend program, declaring a dividend of
$0.3125 per share on its Common Stock
and Class B Common Stock. The dividend was paid on June 30, 2020.
On August 21, 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 September 25,
2020 to stockholders of record at the close of business on
September 11, 2020.
During the second quarter of 2020, the Company did not
repurchase shares of its common stock. The Company may resume
opportunistic share repurchases under its existing authorizations
of $1.0 billion.
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 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 believes that excluding non-cash debt
discount amortization and the diluted shares from its convertible
senior notes is useful to investors because it provides a more
complete view of the economics of the transaction and the
offsetting share benefit received from the convertible note hedge.
Management also uses certain non-GAAP measures internally for
forecasting, budgeting, and measuring its operating performance.
These measures should be viewed as supplementing, and not as an
alternative or substitute for, the Company's financial results
prepared in accordance with GAAP. The methods used by the Company
to calculate its non-GAAP financial measures may differ
significantly from methods used by other companies to compute
similar measures. As a result, any non-GAAP financial measures
presented herein may not be comparable to similar measures provided
by other companies. A reconciliation of the Company's non-GAAP
measures to the most directly comparable GAAP financial measures
are provided below and on the Company's website at
investors.DICKS.com.
Fiscal 2020 Consolidated Same Store Sales
Consolidated same store sales include stores that were
temporarily closed as a result of COVID-19. The method of
calculating consolidated same store sales varies across the retail
industry, including the treatment of temporary store closures as a
result of COVID-19. Accordingly, our method of calculating this
metric may not be the same as other retailers' methods. For
additional information on consolidated same store sales, please see
our most recent Annual Report on Form 10-K, and any subsequent
Quarterly Reports on Form 10-Q, filed with the Securities and
Exchange Commission.
Forward-Looking Statements Involving Known and Unknown Risks
and Uncertainties
This release contains forward-looking statements made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to
risks and uncertainties and change based on various important
factors, many of which may be beyond the Company's control. The
Company's future performance and actual results may differ
materially from those expressed or implied in such forward-looking
statements. Forward-looking statements should not be relied upon by
investors as a prediction of actual results. Forward-looking
statements include statements regarding, among other things, the
Company's future performance, liquidity, and share repurchases and
dividends.
Factors that could cause actual results to differ materially
from those expressed or implied in any forward-looking statements
include, but are not limited to: the impact on our business,
operations and financial results due to the duration and scope of
the COVID-19 pandemic, including whether there is a second wave or
periods of increases in the number of COVID-19 cases in areas in
which we operate, and the restrictions imposed by federal, state,
and local governments in response to the pandemic; changes in
consumer discretionary spending, including those caused by
COVID-19; store closures and other impacts to our business
resulting from civil disturbances; investments in omni-channel
growth not producing the anticipated benefits within the expected
time-frame or at all; risks relating to private brands and new
retail concepts; investments in business transformation initiatives
not producing the anticipated benefits within the expected
time-frame or at all; the amount devoted to strategic investments
and the timing and success of those investments; the results of the
strategic review of the hunt business, including Field &
Stream; inventory turn; changes in the competitive market and
competition amongst retailers, including an increase in promotional
activity; changes in consumer demand or shopping patterns and the
ability to identify new trends and have the right trending products
in stores and online, including changes caused by COVID-19; changes
in existing tax, labor, foreign trade and other laws and
regulations, including those imposing new taxes, surcharges, or
tariffs; limitations on the availability of attractive retail store
sites; unauthorized disclosure of sensitive or confidential
customer information; website downtime, disruptions or other
problems with the eCommerce platform, including interruptions,
delays or downtime caused by high volumes of users or transactions,
deficiencies in design or implementation, or platform enhancements;
disruptions or other problems with information systems; factors
affecting vendors, including supply chain and currency risks;
talent needs and the loss of Edward W.
Stack, Chairman and Chief Executive Officer; developments
with sports leagues, professional athletes or sports superstars,
including disruptions and cancellations due to COVID-19;
weather-related disruptions and seasonality of the Company's
business; and risks associated with being a controlled company.
For additional information on these and other factors that could
affect the Company's actual results, see the risk factors set forth
in the Company's filings with the Securities and Exchange
Commission ("SEC"), including the most recent Annual Report filed
with the SEC on March 20, 2020 and our Quarterly Report
filed with the SEC on June 3, 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 August 1, 2020, the Company
operated 726 DICK'S Sporting Goods locations across the United States, serving and inspiring
athletes and outdoor enthusiasts to achieve their personal best
through a blend of dedicated teammates, in-store services and
unique specialty shop-in-shops dedicated to Team Sports, Athletic
Apparel, Golf, Lodge/Outdoor, Fitness and Footwear.
Headquartered in Pittsburgh,
PA, DICK'S also owns and operates Golf Galaxy and Field
& Stream specialty stores, as well as GameChanger, a youth
sports mobile app for scheduling, communications and live
scorekeeping. DICK'S offers its products through a content-rich
eCommerce platform that is integrated with its store network and
provides customers with the convenience and expertise of a 24-hour
storefront. For more information, visit the Investor Relations
page at dicks.com.
Contacts:
Investor Relations:
Nate Gilch, Senior Director of
Investor Relations
DICK'S Sporting Goods, Inc.
investors@dcsg.com
(724) 273-3400
Media Relations:
(724) 273-5552 or press@dcsg.com
Category: Financial
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED
(In thousands,
except per share data)
|
|
|
|
13 Weeks
Ended
|
|
|
August 1,
2020
|
|
%
of
Sales(2)
|
|
August 3,
2019
|
|
%
of
Sales(2)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,713,372
|
|
|
100.00
|
%
|
|
$
|
2,259,212
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and distribution costs
(1)
|
|
1,776,497
|
|
|
65.47
|
|
|
1,582,141
|
|
|
70.03
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
936,875
|
|
|
34.53
|
|
|
677,071
|
|
|
29.97
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
543,033
|
|
|
20.01
|
|
|
521,072
|
|
|
23.06
|
|
Pre-opening
expenses
|
|
2,485
|
|
|
0.09
|
|
|
996
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
391,357
|
|
|
14.42
|
|
|
155,003
|
|
|
6.86
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
14,682
|
|
|
0.54
|
|
|
5,550
|
|
|
0.25
|
|
Other
income
|
|
(14,508)
|
|
|
(0.53)
|
|
|
(1,582)
|
|
|
(0.07)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
391,183
|
|
|
14.42
|
|
|
151,035
|
|
|
6.69
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
114,340
|
|
|
4.21
|
|
|
38,501
|
|
|
1.70
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
276,843
|
|
|
10.20
|
%
|
|
$
|
112,534
|
|
|
4.98
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
3.29
|
|
|
|
|
$
|
1.28
|
|
|
|
Diluted
|
|
$
|
3.12
|
|
|
|
|
$
|
1.26
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
84,130
|
|
|
|
|
88,080
|
|
|
|
Diluted
|
|
88,826
|
|
|
|
|
89,400
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 1,
2020
|
|
%
of
Sales(2)
|
|
August 3,
2019
|
|
% of
Sales
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
4,046,600
|
|
|
100.00
|
%
|
|
$
|
4,179,889
|
|
|
100.00
|
%
|
Cost of goods sold,
including occupancy and distribution costs
(1)
|
|
2,890,397
|
|
|
71.43
|
|
|
2,939,009
|
|
|
70.31
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
1,156,203
|
|
|
28.57
|
|
|
1,240,880
|
|
|
29.69
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
946,254
|
|
|
23.38
|
|
|
1,008,230
|
|
|
24.12
|
|
Pre-opening
expenses
|
|
4,765
|
|
|
0.12
|
|
|
1,574
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
205,184
|
|
|
5.07
|
|
|
231,076
|
|
|
5.53
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
22,727
|
|
|
0.56
|
|
|
8,631
|
|
|
0.21
|
|
Other
income
|
|
(986)
|
|
|
(0.02)
|
|
|
(8,320)
|
|
|
(0.20)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
183,443
|
|
|
4.53
|
|
|
230,765
|
|
|
5.52
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
50,022
|
|
|
1.24
|
|
|
60,706
|
|
|
1.45
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
133,421
|
|
|
3.30
|
%
|
|
$
|
170,059
|
|
|
4.07
|
%
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.59
|
|
|
|
|
$
|
1.88
|
|
|
|
Diluted
|
|
$
|
1.53
|
|
|
|
|
$
|
1.85
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
83,932
|
|
|
|
|
90,483
|
|
|
|
Diluted
|
|
87,360
|
|
|
|
|
91,894
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
August 1,
2020
|
|
August 3,
2019
|
|
February
1,
2020
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,061,141
|
|
|
$
|
116,733
|
|
|
$
|
69,334
|
|
Accounts receivable,
net
|
|
74,790
|
|
|
64,096
|
|
|
53,173
|
|
Income taxes
receivable
|
|
7,223
|
|
|
4,389
|
|
|
5,762
|
|
Inventories,
net
|
|
1,875,152
|
|
|
2,136,797
|
|
|
2,202,275
|
|
Prepaid expenses and
other current assets
|
|
74,946
|
|
|
144,002
|
|
|
79,472
|
|
Total current
assets
|
|
3,093,252
|
|
|
2,466,017
|
|
|
2,410,016
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,348,059
|
|
|
1,479,855
|
|
|
1,415,728
|
|
Operating lease
assets
|
|
2,213,158
|
|
|
2,454,929
|
|
|
2,313,846
|
|
Intangible assets,
net
|
|
92,584
|
|
|
127,079
|
|
|
94,768
|
|
Goodwill
|
|
245,857
|
|
|
250,476
|
|
|
245,857
|
|
Deferred income
taxes
|
|
21,538
|
|
|
14,600
|
|
|
14,412
|
|
Other
|
|
138,121
|
|
|
122,259
|
|
|
133,933
|
|
TOTAL
ASSETS
|
|
$
|
7,152,569
|
|
|
$
|
6,915,215
|
|
|
$
|
6,628,560
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,094,258
|
|
|
$
|
906,721
|
|
|
$
|
1,001,589
|
|
Accrued
expenses
|
|
462,284
|
|
|
391,555
|
|
|
415,501
|
|
Operating lease
liabilities
|
|
474,769
|
|
|
410,477
|
|
|
422,970
|
|
Income taxes
payable
|
|
55,901
|
|
|
21,490
|
|
|
10,455
|
|
Deferred revenue and
other liabilities
|
|
196,165
|
|
|
195,148
|
|
|
225,959
|
|
Total current
liabilities
|
|
2,283,377
|
|
|
1,925,391
|
|
|
2,076,474
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
Revolving credit
borrowings
|
|
—
|
|
|
441,500
|
|
|
224,100
|
|
Convertible
senior notes due 2025
|
|
404,573
|
|
|
—
|
|
|
—
|
|
Long-term operating
lease liabilities
|
|
2,373,173
|
|
|
2,604,897
|
|
|
2,453,346
|
|
Deferred income
taxes
|
|
—
|
|
|
5,926
|
|
|
9,187
|
|
Other long-term
liabilities
|
|
161,150
|
|
|
172,415
|
|
|
133,855
|
|
Total long-term
liabilities
|
|
2,938,896
|
|
|
3,224,738
|
|
|
2,820,488
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Common
stock
|
|
601
|
|
|
623
|
|
|
593
|
|
Class B common
stock
|
|
241
|
|
|
245
|
|
|
243
|
|
Additional paid-in
capital
|
|
1,373,426
|
|
|
1,231,325
|
|
|
1,253,867
|
|
Retained
earnings
|
|
2,724,424
|
|
|
2,565,700
|
|
|
2,645,281
|
|
Accumulated other
comprehensive loss
|
|
(130)
|
|
|
(122)
|
|
|
(120)
|
|
Treasury stock, at
cost
|
|
(2,168,266)
|
|
|
(2,032,685)
|
|
|
(2,168,266)
|
|
Total stockholders'
equity
|
|
1,930,296
|
|
|
1,765,086
|
|
|
1,731,598
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
7,152,569
|
|
|
$
|
6,915,215
|
|
|
$
|
6,628,560
|
|
|
|
|
|
|
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS - UNAUDITED
(In
thousands)
|
|
|
|
26 Weeks
Ended
|
|
|
August 1,
2020
|
|
August 3,
2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
|
$
|
133,421
|
|
|
$
|
170,059
|
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
Depreciation,
amortization, and other
|
|
162,755
|
|
|
157,410
|
|
Amortization of
convertible notes discount and issuance costs
|
|
7,662
|
|
|
—
|
|
Non-cash lease
costs
|
|
28,395
|
|
|
(28,699)
|
|
Deferred income
taxes
|
|
(16,313)
|
|
|
(4,609)
|
|
Stock-based
compensation
|
|
17,449
|
|
|
23,082
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(8,402)
|
|
|
(26,859)
|
|
Inventories
|
|
327,123
|
|
|
(312,101)
|
|
Prepaid expenses and
other assets
|
|
7,026
|
|
|
(5,169)
|
|
Accounts
payable
|
|
103,379
|
|
|
(10,550)
|
|
Accrued
expenses
|
|
48,497
|
|
|
17,909
|
|
Income taxes payable /
receivable
|
|
43,985
|
|
|
3,094
|
|
Deferred construction
allowances
|
|
30,850
|
|
|
21,961
|
|
Deferred revenue and
other liabilities
|
|
(9,120)
|
|
|
(32,752)
|
|
Net cash provided by
(used in) operating activities
|
|
876,707
|
|
|
(27,224)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
expenditures
|
|
(94,256)
|
|
|
(110,992)
|
|
Deposits and purchases
of other assets
|
|
—
|
|
|
(1,000)
|
|
Net cash used in
investing activities
|
|
(94,256)
|
|
|
(111,992)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Revolving credit
borrowings
|
|
1,291,700
|
|
|
1,185,850
|
|
Revolving credit
repayments
|
|
(1,515,800)
|
|
|
(744,350)
|
|
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
|
|
(403)
|
|
|
(2,644)
|
|
Proceeds from exercise of stock options
|
|
939
|
|
|
273
|
|
Minimum tax
withholding requirements
|
|
(3,684)
|
|
|
(6,312)
|
|
Cash paid for treasury
stock
|
|
—
|
|
|
(266,624)
|
|
Cash dividends paid to
stockholders
|
|
(54,448)
|
|
|
(51,258)
|
|
(Decrease) increase in
bank overdraft
|
|
(10,710)
|
|
|
27,363
|
|
Net cash provided by
financing activities
|
|
209,366
|
|
|
142,298
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
(10)
|
|
|
(2)
|
|
NET INCREASE IN CASH
AND CASH EQUIVALENTS
|
|
991,807
|
|
|
3,080
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
69,334
|
|
|
113,653
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
1,061,141
|
|
|
$
|
116,733
|
|
Store Count and
Square Footage
|
|
The stores that
opened during the second quarter of 2020 are as follows:
|
|
Store
|
|
Market
|
|
Concept
|
Plainville,
CT
|
|
Hartford
|
|
Outlet
Store
|
Hagerstown,
MD
|
|
Hagerstown
|
|
Outlet
Store
|
Franklin Mills,
PA
|
|
Philadelphia
|
|
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
|
|
Closed
stores
|
|
1
|
|
|
3
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
4
|
|
Ending
stores
|
|
726
|
|
|
126
|
|
|
852
|
|
|
727
|
|
|
133
|
|
|
860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relocated
stores
|
|
3
|
|
|
1
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Square
Footage:
(in
millions)
|
|
|
|
DICK'S
Sporting
Goods
|
|
Specialty
Concept
Stores (1)
|
|
Total
(2)
|
Q1 2019
|
|
38.6
|
|
|
3.7
|
|
|
42.2
|
|
Q2 2019
|
|
38.6
|
|
|
3.7
|
|
|
42.3
|
|
Q3 2019
|
|
38.8
|
|
|
3.4
|
|
|
42.2
|
|
Q4 2019
|
|
38.5
|
|
|
3.4
|
|
|
41.8
|
|
Q1 2020
|
|
38.4
|
|
|
3.4
|
|
|
41.8
|
|
Q2 2020
|
|
38.4
|
|
|
3.5
|
|
|
41.9
|
|
|
|
(1)
|
Includes the
Company's Golf Galaxy and Field & Stream stores, as well as the
Company's outlet and clearance stores. In some markets the Company
operates DICK'S Sporting Goods stores adjacent to its specialty
concept stores on the same property with a pass-through for
customers. The Company refers to this format as a "combo store" and
includes combo store openings within both the DICK'S Sporting Goods
and specialty concept store reconciliations, as applicable. As of
August 1, 2020, the Company operated 26 combo
stores.
|
|
(2)
|
Column may not add
due to rounding.
|
DICK'S SPORTING
GOODS, INC.
GAAP to NON-GAAP
RECONCILIATIONS - UNAUDITED
(in thousands,
except per share amounts)
|
|
Non-GAAP Net
Income and Earnings Per Share Reconciliations
|
|
|
13 Weeks Ended
August 1, 2020
|
|
|
|
|
|
|
|
|
Income from
operations
|
Interest
expense
|
Income before
income taxes
|
Net
income
(2)
|
Diluted
shares
outstanding
during
period
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
|
391,357
|
|
$
|
14,682
|
|
$
|
391,183
|
|
$
|
276,843
|
|
88,826
|
|
$
|
3.12
|
|
% of Net
Sales
|
14.42
|
%
|
0.54
|
%
|
14.42
|
%
|
10.20
|
%
|
|
|
Convertible senior
notes (1)
|
—
|
|
(6,568)
|
|
6,568
|
|
4,860
|
|
(1,119)
|
|
|
Non-GAAP
Basis
|
$
|
391,357
|
|
$
|
8,114
|
|
$
|
397,751
|
|
$
|
281,703
|
|
87,707
|
|
$
|
3.21
|
|
% of Net
Sales
|
14.42
|
%
|
0.30
|
%
|
14.66
|
%
|
10.38
|
%
|
|
|
|
|
(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.
|
|
26 Weeks Ended
August 1, 2020
|
|
|
|
|
|
|
|
|
Income
from
operations
|
Interest
expense
|
Income
before
income
taxes
|
Net
income
(2)
|
Diluted
shares
outstanding
during
period
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
|
205,184
|
|
$
|
22,727
|
|
$
|
183,443
|
|
$
|
133,421
|
|
87,360
|
|
$
|
1.53
|
|
% of Net
Sales
|
5.07
|
%
|
0.56
|
%
|
4.53
|
%
|
3.30
|
%
|
|
|
Convertible senior
notes (1)
|
—
|
|
(7,662)
|
|
7,662
|
|
5,670
|
|
(560)
|
|
|
Non-GAAP
Basis
|
$
|
205,184
|
|
$
|
15,065
|
|
$
|
191,105
|
|
$
|
139,091
|
|
86,800
|
|
$
|
1.60
|
|
% of Net
Sales
|
5.07
|
%
|
0.37
|
%
|
4.72
|
%
|
3.44
|
%
|
|
|
|
|
(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.
|
|
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
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.
|
|
|
|
26 Weeks
Ended
|
|
|
August 1,
2020
|
|
August 3,
2019
|
Gross capital
expenditures
|
|
$
|
(94,256)
|
|
|
$
|
(110,992)
|
|
Proceeds from
sale-leaseback transactions
|
|
—
|
|
|
—
|
|
Deferred construction
allowances
|
|
30,850
|
|
|
21,961
|
|
Construction
allowance receipts
|
|
—
|
|
|
—
|
|
Net capital
expenditures
|
|
$
|
(63,406)
|
|
|
$
|
(89,031)
|
|
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SOURCE DICK'S Sporting Goods, Inc.