Press Release

DICK'S Sporting Goods Reports Second Quarter Results; Exceeds Earnings Expectations and Raises Full Year Guidance

- Consolidated earnings per diluted share increased 15% to $0.77, up from $0.67, excluding golf restructuring charges in the prior year

- Consolidated same store sales for the second quarter increased 1.2%

- Company raises its full year 2015 earnings per diluted share guidance to $3.13 to 3.21

- Company declared a $0.1375 per share quarterly dividend

Company Release - 8/18/2015 7:30 AM ET

PITTSBURGH, Aug. 18, 2015 /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, 2015.

Second Quarter Results

The Company reported consolidated net income for the second quarter ended August 1, 2015 of $90.8 million, or $0.77 per diluted share, compared to the Company's expectations provided on May 19, 2015 of $0.73 to 0.76 per diluted share. The Company reported consolidated net income for the second quarter ended August 2, 2014 of $69.5 million, or $0.57 per diluted share. Excluding golf restructuring charges in the prior year, net income was $81.7 million, or $0.67 per diluted share. The GAAP to non-GAAP reconciliation is included in a table later in the release under the heading "Non-GAAP Net Income and Earnings Per Share Reconciliations."

Net sales for the second quarter of 2015 increased 7.9% to approximately $1.8 billion. Consolidated same store sales increased 1.2%, compared to the Company's guidance of approximately flat to an increase of 2%. Same store sales for DICK'S Sporting Goods increased 1.5%, against a strong base that included the World Cup. Golf Galaxy decreased 2.9%, representing sequential progress. Second quarter 2014 consolidated same store sales increased 3.2%.

"We are pleased with our second quarter results. We delivered a double-digit increase in earnings by leveraging our omni-channel presence to generate profitable revenue growth and meaningful margin expansion," said Edward W. Stack, Chairman and CEO. "We are seeing the benefits of our key growth pillars, as we continue to open very productive stores while winning online."

Omni-channel Development

eCommerce penetration for the second quarter of 2015 was 7.3% of total net sales, compared to 6.3% during the second quarter of 2014.

In the second quarter, the Company opened seven new DICK'S Sporting Goods stores, one new Field & Stream store and closed three Golf Galaxy stores, as these leases expired.  As of August 1, 2015, the Company operated 619 DICK'S Sporting Goods stores in 46 states, with approximately 33.1 million square feet, 75 Golf Galaxy stores in 29 states, with approximately 1.4 million square feet and 12 Field & Stream stores in seven states, with approximately 0.6 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 2015 with approximately $123 million in cash and cash equivalents and no 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 $288 million to shareholders through share repurchases and quarterly dividends. Total inventory increased 13.9% at the end of the second quarter of 2015 as compared to the end of the second quarter of 2014. This planned increase was due primarily to earlier receipts of back-to-school merchandise and support for the outdoor business.

Also, the Company has amended and extended its revolving credit facility prior to its expiration in December 2016, thereby benefiting from the attractive interest rate environment. The Company has increased its limit from $500 million to $1 billion to support the continued growth of its business.

Year-to-Date Results

The Company reported consolidated net income for the 26 weeks ended August 1, 2015 of $154.2 million, or $1.30 per diluted share. For the 26 weeks ended August 2, 2014, the Company reported consolidated net income of $139.5 million, or $1.14 per diluted share. The Company reported consolidated non-GAAP net income for the 26 weeks ended August 2, 2014 of $143.0 million, or $1.17 per diluted share. The GAAP to non-GAAP reconciliation is included in a table later in the release under the heading "Non-GAAP Net Income and Earnings Per Share Reconciliations."

Net sales for the 26 weeks ended August 1, 2015 increased 8.3% from last year's period to approximately $3.4 billion, reflecting the opening of new stores and a 1.1% increase in consolidated same store sales.

Capital Allocation

During fiscal 2015, the Company has repurchased approximately 2.6 million shares of its common stock at an average cost of $57.09 per share, for a total cost of $150 million. Since starting its $1 billion share repurchase authorization at the beginning of fiscal 2013, the Company has repurchased over $605 million of common stock, and has approximately $395 million remaining under the authorization.

On August 12, 2015, the Company's Board of Directors authorized and declared a quarterly dividend in the amount of $0.1375 per share on the Company's Common Stock and Class B Common Stock. The dividend is payable in cash on September 30, 2015 to stockholders of record at the close of business on September 11, 2015.

Current 2015 Outlook

The Company's current outlook for 2015 is based on current expectations and includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as described later in this release. Although the Company believes that the expectations and other comments reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations or comments will prove to be correct. 

  • Full Year 2015
        
    • Based on an estimated 118 million diluted shares outstanding, the Company currently anticipates reporting consolidated earnings per diluted share in the range of $3.13 to 3.21. The Company's earnings per diluted share guidance contemplates the $150 million of share repurchases executed in the first quarter of 2015. For the 52 weeks ended January 31, 2015, the Company reported consolidated earnings per diluted share of $2.84. Consolidated earnings per diluted share for the 52 weeks ended January 31, 2015 were $2.87, excluding a gain on the sale of an asset and golf restructuring charges.
          
    • Consolidated same store sales are currently expected to increase in the range of 1 to 3%, compared to a 2.4% increase in fiscal 2014.
          
    • The Company expects to open 44 new DICK'S Sporting Goods stores and relocate seven DICK'S Sporting Goods stores in 2015. The Company also expects to open nine new Field & Stream stores and relocate one Golf Galaxy store in 2015.
          
  • Third Quarter 2015
        
    • Based on an estimated 118 million diluted shares outstanding, the Company currently anticipates reporting consolidated earnings per diluted share in the range of $0.45 to 0.48 in the third quarter of 2015, compared to consolidated earnings per diluted share of $0.41 in the third quarter of 2014.
          
    • Consolidated same store sales are currently expected to increase in the range of 1 to 3% in the third quarter of 2015, as compared to a 1.1% increase in the third quarter of 2014.
          
    • The Company expects to open 27 new DICK'S Sporting Goods stores and relocate five DICK'S Sporting Goods stores in the third quarter of 2015. The Company also expects to open seven new Field & Stream stores in the third quarter of 2015.
          
  • Capital Expenditures
        
    • In 2015, the Company anticipates capital expenditures to be approximately $245 million on a net basis and approximately $365 million on a gross basis. In 2014, capital expenditures were $247 million on a net basis and $349 million on a gross 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.

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 10069408. The dial-in replay will be available for approximately 30 days following the live call.

Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties

This release contains forward-looking statements within the meaning of the securities laws.  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, number of shares outstanding, inventory position, growth in the omni-channel network, number of new store openings and capital expenditures.

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; competition in the sporting goods industry; changes in consumer demand or shopping patterns and our ability to identify new trends; limitations on the availability of attractive retail store sites; omni-channel growth and our development of an eCommerce platform; unauthorized disclosure of sensitive or confidential customer information; risks relating to our private brand offerings and new retail concepts; disruptions with our eCommerce service provider or 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; disruptions of our information systems; developments with sports leagues, professional athletes or sports superstars; weather, 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 SEC, including our most recent Annual Report filed with the Securities and Exchange Commission on March 27, 2015.  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, 2015, the Company operated more than 615 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, Field & Stream, True Runner and Chelsea Collective specialty stores. 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:
Anne-Marie Megela, Vice President – Treasury Services and Investor Relations, or
Nathaniel A. 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 1,
2015


% of 
Sales (1)


August 2,
2014


% of
Sales










Net sales


$

1,822,979



100.00

%


$

1,688,890



100.00

%

Cost of goods sold, including occupancy and 
     distribution costs


1,269,421



69.63



1,186,334



70.24











GROSS PROFIT


553,558



30.37



502,556



29.76











Selling, general and administrative expenses


395,935



21.72



383,054



22.68


Pre-opening expenses


9,216



0.51



7,940



0.47











INCOME FROM OPERATIONS


148,407



8.14



111,562



6.61











Interest expense


840



0.05



763



0.05


Other expense (income)


153



0.01



(2,013)



(0.12)











INCOME BEFORE INCOME TAXES


147,414



8.09



112,812



6.68











Provision for income taxes


56,575



3.10



43,345



2.57











NET INCOME


$

90,839



4.98

%


$

69,467



4.11

%










EARNINGS PER COMMON SHARE:









Basic


$

0.78





$

0.58




Diluted


$

0.77





$

0.57













WEIGHTED AVERAGE COMMON SHARES 
    OUTSTANDING:









Basic


116,281





119,950




Diluted


117,805





121,840













Cash dividend declared per share


$

0.1375





$

0.1250













(1) 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,
2015


% of
Sales (1)


August 2,
2014


% of
Sales










Net sales


$

3,388,287



100.00

%


$

3,127,798



100.00

%

Cost of goods sold, including occupancy and 
     distribution costs


2,365,741



69.82



2,184,359



69.84











GROSS PROFIT


1,022,546



30.18



943,439



30.16











Selling, general and administrative expenses


756,671



22.33



705,643



22.56


Pre-opening expenses


15,557



0.46



14,146



0.45











INCOME FROM OPERATIONS


250,318



7.39



223,650



7.15











Interest expense


1,474



0.04



1,372



0.04


Other income


(1,997)



(0.06)



(4,377)



(0.14)











INCOME BEFORE INCOME TAXES


250,841



7.40



226,655



7.25











Provision for income taxes


96,657



2.85



87,205



2.79











NET INCOME


$

154,184



4.55

%


$

139,450



4.46

%










EARNINGS PER COMMON SHARE:









Basic


$

1.32





$

1.16




Diluted


$

1.30





$

1.14













WEIGHTED AVERAGE COMMON SHARES 
    OUTSTANDING:









Basic


116,662





120,544




Diluted


118,356





122,600













Cash dividends declared per share


$

0.2750





$

0.2500













(1) Column does not add due to rounding

 

 

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

(Dollars in thousands)




August 1,
2015


August 2,
2014


January 31,
2015

ASSETS







CURRENT ASSETS:







Cash and cash equivalents


$

123,220



$

100,132



$

221,679


Accounts receivable, net


106,753



102,248



80,292


Income taxes receivable


4,652



6,328



14,293


Inventories, net


1,615,722



1,418,660



1,390,767


Prepaid expenses and other current assets


99,882



90,369



91,767


Deferred income taxes


46,130



39,423



51,586


Total current assets


1,996,359



1,757,160



1,850,384









Property and equipment, net


1,297,302



1,138,182



1,203,382


Intangible assets, net


108,240



84,901



110,162


Goodwill


200,594



200,594



200,594


Other assets:







Deferred income taxes


910



3,169



1,862


Other


72,453



71,477



69,814


Total other assets


73,363



74,646



71,676


TOTAL ASSETS


$

3,675,858



$

3,255,483



$

3,436,198









LIABILITIES AND STOCKHOLDERS' EQUITY







CURRENT LIABILITIES:







Accounts payable


$

783,722



$

688,442



$

614,511


Accrued expenses


336,597



305,937



283,828


Deferred revenue and other liabilities


142,083



125,258



172,259


Income taxes payable


19,131



12,784



47,698


Current portion of other long-term debt and leasing 
    obligations


560



461



537


Total current liabilities


1,282,093



1,132,882



1,118,833


LONG-TERM LIABILITIES:







Other long-term debt and leasing obligations


5,627



6,232



5,913


Deferred income taxes


36,767



18,473



44,494


Deferred revenue and other liabilities


517,873



401,021



434,733


Total long-term liabilities


560,267



425,726



485,140


COMMITMENTS AND CONTINGENCIES







STOCKHOLDERS' EQUITY:







Common stock


914



941



932


Class B common stock


249



249



249


Additional paid-in capital


1,045,084



979,696



1,015,404


Retained earnings


1,592,803



1,296,434



1,471,182


Accumulated other comprehensive (loss) income


(109)



40



(73)


Treasury stock, at cost


(805,443)



(580,485)



(655,469)


Total stockholders' equity


1,833,498



1,696,875



1,832,225


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$

3,675,858



$

3,255,483



$

3,436,198









 

 

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(Dollars in thousands)




26 Weeks Ended



August 1,
2015


August 2,
2014

CASH FLOWS FROM OPERATING ACTIVITIES:





Net income


$

154,184



$

139,450


Adjustments to reconcile net income to net cash provided by operating activities





Depreciation and amortization


90,596



89,771


Deferred income taxes


(1,319)



(21,424)


Stock-based compensation


14,200



12,915


Excess tax benefit from exercise of stock options


(5,842)



(6,566)


Gain on sale of asset




(14,428)


Other non-cash items


265



290


Changes in assets and liabilities:





Accounts receivable


(12,659)



(11,023)


Inventories


(224,955)



(186,595)


Prepaid expenses and other assets


(7,977)



(10,980)


Accounts payable


147,888



133,245


Accrued expenses


9,638



7,697


Income taxes payable / receivable


(13,690)



494


Deferred construction allowances


75,082



44,934


Deferred revenue and other liabilities


(22,372)



(25,561)


Net cash provided by operating activities


203,039



152,219


CASH FLOWS FROM INVESTING ACTIVITIES:





Capital expenditures


(154,785)



(150,382)


Proceeds from sale of other assets




73,392


Deposits and purchases of other assets


(406)



(79)


Net cash used in investing activities


(155,191)



(77,069)


CASH FLOWS FROM FINANCING ACTIVITIES:





Revolving credit borrowings


465,600



456,400


Revolving credit repayments


(465,600)



(456,400)


Payments on other long-term debt and leasing obligations


(263)



(682)


Construction allowance receipts





Proceeds from exercise of stock options


17,870



8,879


Excess tax benefit from exercise of stock options


5,843



6,588


Minimum tax withholding requirements


(7,619)



(7,645)


Cash paid for treasury stock


(150,000)



(124,999)


Cash dividends paid to stockholders


(33,425)



(31,664)


Increase (decrease) in bank overdraft


21,323



(7,242)


Net cash used in financing activities


(146,271)



(156,765)


EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS


(36)



16


NET DECREASE IN CASH AND CASH EQUIVALENTS


(98,459)



(81,599)


CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD


221,679



181,731


CASH AND CASH EQUIVALENTS, END OF PERIOD


$

123,220



$

100,132



 

Store Count and Square Footage


The stores that opened during the second quarter of 2015 are as follows:


Store


Market


Concept

Arcola, VA


Washington, DC


DICK'S Sporting Goods

Bristol, TN


TriCities


DICK'S Sporting Goods

Mt. Pleasant, SC


Charleston


DICK'S Sporting Goods

Orlando, FL


Orlando


DICK'S Sporting Goods

Winchester, VA


Winchester


DICK'S Sporting Goods

Scottsdale, AZ


Phoenix


DICK'S Sporting Goods

Mobile, AL


Mobile


DICK'S Sporting Goods

Mobile, AL


Mobile


Field & Stream


The following represents a reconciliation of beginning and ending stores and square footage for the periods indicated:


Store Count:




Fiscal 2015


Fiscal 2014



DICK'S
Sporting
Goods
(2)


Specialty Store
Concepts
(1) (2)


Total


DICK'S
Sporting
Goods


Specialty Store
Concepts
(1)


Total

Beginning stores


603


91


694


558


84


642

Q1 New stores


9


1


10


8



8

Q2 New stores


7


1


8


8


1


9

Ending stores


619


93


712


574


85


659














Closed stores



3


3




Ending stores


619


90


709


574


85


659














Relocated stores


1


1


2


4


1


5















Square Footage:

(in millions)




DICK'S
Sporting
Goods
(2)


Specialty Store
Concepts
(1) (2)


Total

Q1 2014


30.6


1.5


32.1

Q2 2014


30.9


1.6


32.5

Q3 2014


32.0


2.0


34.0

Q4 2014


32.3


1.9


34.2

Q1 2015


32.7


2.0


34.7

Q2 2015


33.1


2.0


35.1


(1) Includes the Company's Golf Galaxy, Field & Stream and True Runner stores.

(2) All-American Sports Centers are reflected as a DICK'S Sporting Goods store and a Field & Stream store.

 

 

Non-GAAP Financial Measures


In addition to reporting the Company's financial results in accordance with generally accepted accounting principles ("GAAP"), the Company believes that certain non-GAAP financial information provides users of the Company's financial information with additional useful information in evaluating operating performance between reporting periods. 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.


Non-GAAP Net Income and Earnings Per Share Reconciliations:

(in thousands, except per share data):




Fiscal 2014



13 Weeks Ended August 2, 2014










As Reported


Golf Restructuring Charges


Non-GAAP Total

Net sales


$

1,688,890



$



$

1,688,890


Cost of goods sold, including occupancy and 
     distribution costs


1,186,334



(2,405)



1,183,929









GROSS PROFIT


502,556



2,405



504,961









Selling, general and administrative expenses


383,054



(17,960)



365,094


Pre-opening expenses


7,940





7,940









INCOME FROM OPERATIONS


111,562



20,365



131,927









Interest expense


763





763


Other income


(2,013)





(2,013)









INCOME BEFORE INCOME TAXES


112,812



20,365



133,177









Provision for income taxes


43,345



8,146



51,491









NET INCOME


$

69,467



$

12,219



$

81,686









EARNINGS PER COMMON SHARE:







Basic


$

0.58





$

0.68


Diluted


$

0.57





$

0.67









WEIGHTED AVERAGE COMMON SHARES 
    OUTSTANDING:







Basic


119,950





119,950


Diluted


121,840





121,840



During the second quarter of 2014, the Company recorded pre-tax restructuring charges of $20.4 million including a $14.3 million non-cash impairment of trademarks and store assets, severance charges of $3.7 million resulting from the elimination of specific staff in the golf area of its DICK'S stores and consolidation of DICK'S golf and Golf Galaxy corporate and administrative functions, and a $2.4 million write-down of excess golf inventories. The provision for income taxes was calculated at 40%, which approximates the Company's blended tax rate.

 

 



Fiscal 2014



26 Weeks Ended August 2, 2014












As Reported


Gain on Sale of Asset


Golf Restructuring Charges


Non-GAAP Total

Net sales


$

3,127,798



$



$



$

3,127,798


Cost of goods sold, including occupancy and 
     distribution costs


2,184,359





(2,405)



2,181,954











GROSS PROFIT


943,439





2,405



945,844











Selling, general and administrative expenses


705,643



14,428



(17,960)



702,111


Pre-opening expenses


14,146







14,146











INCOME FROM OPERATIONS


223,650



(14,428)



20,365



229,587











Interest expense


1,372







1,372


Other income


(4,377)







(4,377)











INCOME BEFORE INCOME TAXES


226,655



(14,428)



20,365



232,592











Provision for income taxes


87,205



(5,771)



8,146



89,580











NET INCOME


$

139,450



$

(8,657)



$

12,219



$

143,012











EARNINGS PER COMMON SHARE:









Basic


$

1.16







$

1.19


Diluted


$

1.14







$

1.17











WEIGHTED AVERAGE COMMON SHARES 
    OUTSTANDING:









Basic


120,544







120,544


Diluted


122,600







122,600



During the first quarter of 2014, the Company recorded a pre-tax $14.4 million gain on sale of a Gulfstream G650 corporate aircraft. During the second quarter of 2014, the Company recorded pre-tax restructuring charges of $20.4 million including a $14.3 million non-cash impairment of trademarks and store assets, severance charges of $3.7 million resulting from the elimination of specific staff in the golf area of its DICK'S stores and consolidation of DICK'S golf and Golf Galaxy corporate and administrative functions, and a $2.4 million write-down of excess golf inventories. The provision for income taxes for the aforementioned adjustments were calculated at 40%, which approximates the Company's blended tax rate.

 

 



Fiscal 2014



52 Weeks Ended January 31, 2015












As Reported


Gain on Sale of Asset


Golf Restructuring Charges


Non-GAAP Total

Net sales


$

6,814,479



$



$



$

6,814,479


Cost of goods sold, including occupancy and 
     distribution costs


4,727,813





(2,405)



4,725,408











GROSS PROFIT


2,086,666





2,405



2,089,071











Selling, general and administrative expenses


1,502,089



14,428



(17,960)



1,498,557


Pre-opening expenses


30,518







30,518











INCOME FROM OPERATIONS


554,059



(14,428)



20,365



559,996











Interest expense


3,215







3,215


Other income


(5,170)







(5,170)











INCOME BEFORE INCOME TAXES


556,014



(14,428)



20,365



561,951











Provision for income taxes


211,816



(5,771)



8,146



214,191











NET INCOME


$

344,198



$

(8,657)



$

12,219



$

347,760











EARNINGS PER COMMON SHARE:









Basic


$

2.89







$

2.92


Diluted


$

2.84







$

2.87











WEIGHTED AVERAGE COMMON SHARES 
    OUTSTANDING:









Basic


119,244







119,244


Diluted


121,238







121,238



During the first quarter of 2014, the Company recorded a pre-tax $14.4 million gain on sale of a Gulfstream G650 corporate aircraft. During the second quarter of 2014, the Company recorded pre-tax restructuring charges of $20.4 million including a $14.3 million non-cash impairment of trademarks and store assets, severance charges of $3.7 million resulting from the elimination of specific staff in the golf area of its DICK'S stores and consolidation of DICK'S golf and Golf Galaxy corporate and administrative functions, and a $2.4 million write-down of excess golf inventories. The provision for income taxes for the aforementioned adjustments were calculated at 40%, which approximates the Company's blended tax rate.

 

 

Adjusted EBITDA


Adjusted EBITDA should not be considered as an alternative to net income or any other generally accepted accounting principles measure of performance or liquidity. Adjusted EBITDA, as the Company has calculated it, may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA is a key metric used by the Company that provides a measurement of profitability that eliminates the effect of changes resulting from financing decisions, tax regulations, capital investments and certain non-recurring, infrequent or unusual items.




13 Weeks Ended



August 1,
2015


August 2,
2014



(dollars in thousands)

Net income


$

90,839



$

69,467


Provision for income taxes


56,575



43,345


Interest expense


840



763


Depreciation and amortization


48,020



52,912


EBITDA


$

196,274



$

166,487


Add: Golf restructuring charges




6,043


Adjusted EBITDA, as defined


$

196,274



$

172,530







% increase in adjusted EBITDA


14

%











26 Weeks Ended



August 1,
2015


August 2,
2014



(dollars in thousands)

Net income


$

154,184



$

139,450


Provision for income taxes


96,657



87,205


Interest expense


1,474



1,372


Depreciation and amortization


90,596



89,771


EBITDA


$

342,911



$

317,798


Less: Gain on sale of asset




(14,428)


Add: Golf restructuring charges




6,043


Adjusted EBITDA, as defined


$

342,911



$

309,413







% increase in adjusted EBITDA


11

%









 

 

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, 
2015


August 2,
2014



(dollars in thousands)

Gross capital expenditures


$

(154,785)



$

(150,382)


Proceeds from sale-leaseback transactions





Deferred construction allowances


75,082



44,934


Construction allowance receipts





Net capital expenditures


$

(79,703)



$

(105,448)


 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/dicks-sporting-goods-reports-second-quarter-results-exceeds-earnings-expectations-and-raises-full-year-guidance-300129611.html

SOURCE DICK'S Sporting Goods, Inc.