Academy Sports and Outdoors, Inc. (Nasdaq: ASO) ("Academy" or the
"Company") today announced its financial results for the third
quarter date ended October 28, 2023.
"Our sales and net earnings for the third
quarter came in below expectations, primarily driven by weakening
consumer sentiment coupled with above normal temperatures that
negatively impacted demand for Fall product. Over the past year we
have seen customers change their shopping patterns and aggregate
trips into the key shopping moments on the calendar and we expect
to see this pattern continue this holiday season," said Chief
Executive Officer, Steve Lawrence. "During the fourth quarter, we
are focused on providing excellent customer service, offering new
and innovative gifts and driving traffic to our stores and website
with aggressive marketing that features the outstanding values we
are offering our customers to help them stretch their wallets as
they celebrate this holiday season with their families. Beyond this
holiday, we remain focused on executing our long-term strategy and
investing in our growth initiatives. We believe that we have a
solid operating model, a strong value position and deep customer
affinity that will allow us to continue to grow and expand our
footprint.”
Third Quarter Operating Results
($ in millions, except per share data) |
Thirteen Weeks Ended |
Change |
October 28, 2023 |
October 29, 2022 |
% |
Net sales |
$ |
1,397.8 |
|
|
$ |
1,493.9 |
|
|
(6.4 |
) |
% |
Comparable sales |
|
(8.0 |
) |
% |
|
(7.2 |
) |
% |
|
Income
before income tax |
$ |
129.9 |
|
|
$ |
169.9 |
|
|
(23.5 |
) |
% |
Net
Income |
$ |
100.0 |
|
|
$ |
131.7 |
|
|
(24.1 |
) |
% |
Adjusted
net income (1) |
$ |
104.7 |
|
|
$ |
136.2 |
|
|
(23.1 |
) |
% |
Earnings
per common share, diluted |
$ |
1.31 |
|
|
$ |
1.62 |
|
|
(19.1 |
) |
% |
Adjusted earnings per common share, diluted (1) |
$ |
1.38 |
|
|
$ |
1.67 |
|
|
(17.4 |
) |
% |
Year-to-Date Operating Results
($ in millions, except per share data) |
Thirty-Nine Weeks Ended |
Change |
October 28, 2023 |
October 29, 2022 |
% |
Net sales |
$ |
4,364.5 |
|
|
$ |
4,648.6 |
|
|
(6.1 |
) |
% |
Comparable sales |
|
(7.6 |
) |
% |
|
(6.9 |
) |
% |
|
|
|
Income
before income tax |
$ |
451.9 |
|
|
$ |
612.2 |
|
|
(26.2 |
) |
% |
Net
Income |
$ |
351.0 |
|
|
$ |
470.3 |
|
|
(25.4 |
) |
% |
Adjusted
net income (1) |
$ |
371.2 |
|
|
$ |
482.2 |
|
|
(23.0 |
) |
% |
Earnings
per common share, diluted |
$ |
4.51 |
|
|
$ |
5.54 |
|
|
(18.6 |
) |
% |
Adjusted earnings per common share, diluted (1) |
$ |
4.77 |
|
|
$ |
5.68 |
|
|
(16.0 |
) |
% |
(1) Adjusted net income and Adjusted earnings per common share,
diluted, are non-GAAP measures. See "Non-GAAP Measures" and
"Reconciliations of GAAP to Non-GAAP Financial Measures" below for
reconciliations of non-GAAP financial measures to their most
directly comparable GAAP financial measures. |
|
|
As of |
Change |
Balance Sheet ($ in
millions) |
October 28, 2023 |
October 29, 2022 |
% |
Cash and cash equivalents |
$ |
274.8 |
$ |
318.2 |
(13.6 |
) |
% |
Merchandise inventories, net |
$ |
1,492.2 |
$ |
1,495.5 |
(0.2 |
) |
% |
Long-term debt, net |
$ |
583.4 |
$ |
682.8 |
(14.6 |
) |
% |
|
|
Thirty-Nine Weeks Ended |
Change |
Capital Allocation ($ in
millions) |
October 28, 2023 |
October 29, 2022 |
% |
Share repurchases |
$ |
201.5 |
$ |
389.4 |
(48.3 |
) |
% |
Dividends paid |
$ |
20.5 |
$ |
18.8 |
9.0 |
|
% |
Subsequent to the end of the third quarter, on
November 29, 2023, Academy's Board of Directors declared a
quarterly cash dividend of $0.09 per share of common stock. The
dividend is payable on January 10, 2024, to stockholders of record
as of the close of business on December 13, 2023. The Board also
approved a new, three-year, $600 million share repurchase program,
bringing the total amount currently available under both share
repurchase programs to approximately $700 million.
Carl Ford, Chief Financial Officer, said, "In
this challenging macro-economic environment, Academy remains
focused on expense control and inventory management in order to
maintain healthy margins and optimize cash flow. This strategy
enables us to maintain a strong balance sheet as well as self-fund
our strategic initiatives. We are also focused on creating
shareholder value, demonstrated by the $44 million of share
buybacks and $7 million of dividends paid to shareholders during
the quarter."
New Store OpeningsAcademy
opened five new stores during the third quarter and seven new
stores in November, completing its annual openings for 2023. The
Company opened a total of 14 stores in 2023.
2023 OutlookBased on
year-to-date results and current business trends, Academy is
narrowing its guidance for fiscal 2023 as follows:
|
Previous Guidance |
|
Updated Guidance |
(in millions, except per share data) |
Low end |
High end |
|
Low end |
High end |
Net sales |
$ |
6,175.0 |
|
|
$ |
6,365.0 |
|
|
|
$ |
6,110.0 |
|
|
$ |
6,170.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable sales |
|
(7.5 |
) |
% |
|
(4.5 |
) |
% |
|
|
(7.5 |
) |
% |
|
(6.5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin rate |
|
34.0 |
|
% |
|
34.4 |
|
% |
|
|
34.0 |
|
% |
|
34.2 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
$ |
675 |
|
|
$ |
750 |
|
|
|
$ |
670 |
|
|
$ |
680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
520 |
|
|
$ |
575 |
|
|
|
$ |
520 |
|
|
$ |
530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per common share, diluted |
$ |
6.65 |
|
|
$ |
7.35 |
|
|
|
$ |
6.70 |
|
|
$ |
6.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings per common share, diluted (1) |
$ |
6.95 |
|
|
$ |
7.65 |
|
|
|
$ |
7.05 |
|
|
$ |
7.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average common shares |
|
78.1 |
|
|
|
78.1 |
|
|
|
|
77.3 |
|
|
|
77.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures |
$ |
200 |
|
|
$ |
250 |
|
|
|
$ |
175 |
|
|
$ |
225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted free cash flow (1) |
$ |
400 |
|
|
$ |
450 |
|
|
|
$ |
300 |
|
|
$ |
350 |
|
|
(1) Adjusted earnings per common share, diluted, and adjusted free
cash flow are non-GAAP measures. See "Non-GAAP Measures" and
"Reconciliations of GAAP to Non-GAAP Financial Measures" below for
reconciliations of non-GAAP financial measures to their most
directly comparable GAAP financial measures. |
The earnings per common share guidance reflects a tax rate of
approximately 22.0% and does not include any potential future share
repurchases.
Conference Call InfoAcademy
will host a conference call today at 10:00 a.m. Eastern Time to
discuss its financial results. The call will be webcast at
investors.academy.com. The following information is provided for
those who would like to participate in the conference call:
|
|
|
|
|
U.S. callers |
|
1-877-407-3982 |
|
International callers |
|
1-201-493-6780 |
|
Passcode |
|
13742438 |
|
|
|
|
A replay of the conference call will be
available for approximately 30 days on the Company's website.
About Academy Sports +
OutdoorsAcademy is a leading full-line sporting goods and
outdoor recreation retailer in the United States. Originally
founded in 1938 as a family business in Texas, Academy has grown to
275 stores across 18 states as of quarter end. Academy’s mission is
to provide “Fun for All” and Academy fulfills this mission with a
localized merchandising strategy and value proposition that
strongly connects with a broad range of consumers. Academy’s
product assortment focuses on key categories of outdoor, apparel,
footwear and sports & recreation through both leading national
brands and a portfolio of private label brands.
Non-GAAP MeasuresAdjusted
EBITDA, Adjusted EBIT, Adjusted Net Income, Adjusted Earnings per
Common Share, and Adjusted Free Cash Flow have been presented in
this press release as supplemental measures of financial
performance that are not required by, or presented in accordance
with, generally accepted accounting principles (“GAAP”). The
Company believes that the presentation of these non-GAAP measures
is useful to investors as it provides additional information on
comparisons between periods by excluding certain items that affect
overall comparability. The Company uses these non-GAAP financial
measures for business planning purposes, to consider underlying
trends of its business, and in measuring its performance relative
to others in the market, and believes presenting these measures
also provides information to investors and others for understanding
and evaluating trends in the Company’s operating results or
measuring performance in the same manner as the Company’s
management. Non-GAAP financial measures should be considered in
addition to, and not as an alternative for, the Company’s reported
results prepared in accordance with GAAP. The calculation of these
non-GAAP financial measures may differ from similar measures
reported by other companies and may not be comparable to other
similarly titled measures. For additional information on these
non-GAAP financial measures, please see our Annual Report for the
fiscal year ended January 28, 2023 (the "Annual Report"), which may
be updated from time to time in our periodic filings with the
Securities and Exchange Commission (the "SEC"), which are
accessible on the SEC's website at www.sec.gov.
See “Reconciliations of GAAP to Non-GAAP
Financial Measures” below for reconciliations of non-GAAP financial
measures used in this press release to their most directly
comparable GAAP financial measures.
Forward Looking StatementsThis
press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements are based on Academy’s current
expectations and are not guarantees of future performance.
Forward-looking statements may incorporate words such as “believe,”
“expect,” “forward,” “ahead,” “opportunities,” “plans,”
“priorities,” “goals,” “future,” “short/long term,” “will,”
“should,” or the negative version of these words or other
comparable words. The forward-looking statements include, among
other things, statements regarding the Company’s fiscal 2023
outlook, the Company’s strategic plans and financial objectives,
growth of the Company’s business and operations, the Company’s
payment of dividends and declaration of future dividends, including
the timing and amount thereof, share repurchases by the Company,
the Company's expectations regarding its future performance, and
future financial condition, and other such matters, and are subject
to various risks, uncertainties, assumptions, or changes in
circumstances that are difficult to predict or quantify. Actual
results may differ materially from these expectations due to
changes in global, regional, or local economic, business,
competitive, market, regulatory and other factors that could affect
overall consumer spending or our industry, including the possible
effects of ongoing macroeconomic challenges, inflation and
increases in interest rates, or changes to the financial health of
our customers, many of which are beyond Academy's control. These
and other important factors that could cause actual results to
differ materially from those in the forward-looking statements are
set forth in Academy's filings with the SEC, including the Annual
Report and the Company’s Quarterly Report for the thirteen and
thirty-nine weeks ended October 28, 2023, under the caption "Risk
Factors," as may be updated from time to time in our periodic
filings with the SEC. Any forward-looking statement in this press
release speaks only as of the date of this release. Academy
undertakes no obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by any
applicable securities laws.
Investor Contact |
|
Media Contact |
Matt Hodges |
|
Elise Hasbrook |
VP, Investor Relations |
|
VP, Communications |
281-646-5362 |
|
281-944-6041 |
matt.hodges@academy.com |
|
elise.hasbrook@academy.com |
|
ACADEMY SPORTS AND OUTDOORS, INC. |
CONSOLIDATED STATEMENTS OF INCOME |
(Unaudited) |
(Amounts in thousands, except per share data) |
|
|
Thirteen Weeks Ended |
|
October 28, 2023 |
|
Percentage of Sales(1) |
|
October 29, 2022 |
|
Percentage of Sales(1) |
Net sales |
$ |
1,397,777 |
|
|
100.0 |
|
% |
|
|
$ |
1,493,925 |
|
|
100.0 |
|
% |
Cost of goods sold |
|
915,136 |
|
|
65.5 |
|
% |
|
|
|
971,454 |
|
|
65.0 |
|
% |
Gross margin |
|
482,641 |
|
|
34.5 |
|
% |
|
|
|
522,471 |
|
|
35.0 |
|
% |
Selling, general and
administrative expenses |
|
345,910 |
|
|
24.7 |
|
% |
|
|
|
342,949 |
|
|
23.0 |
|
% |
Operating income |
|
136,731 |
|
|
9.8 |
|
% |
|
|
|
179,522 |
|
|
12.0 |
|
% |
Interest expense, net |
|
10,930 |
|
|
0.8 |
|
% |
|
|
|
12,163 |
|
|
0.8 |
|
% |
Other (income), net |
|
(4,146 |
) |
|
(0.3 |
) |
% |
|
|
|
(2,538 |
) |
|
(0.2 |
) |
% |
Income before income taxes |
|
129,947 |
|
|
9.3 |
|
% |
|
|
|
169,897 |
|
|
11.4 |
|
% |
Income tax expense |
|
29,969 |
|
|
2.1 |
|
% |
|
|
|
38,156 |
|
|
2.6 |
|
% |
Net income |
$ |
99,978 |
|
|
7.2 |
|
% |
|
|
$ |
131,741 |
|
|
8.8 |
|
% |
|
|
|
|
|
|
|
|
Earnings Per Common
Share: |
|
|
|
|
|
|
|
Basic |
$ |
1.34 |
|
|
|
|
$ |
1.67 |
|
|
|
Diluted |
$ |
1.31 |
|
|
|
|
$ |
1.62 |
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares
Outstanding: |
|
|
|
|
|
|
|
Basic |
|
74,461 |
|
|
|
|
|
79,085 |
|
|
|
Diluted |
|
76,057 |
|
|
|
|
|
81,379 |
|
|
|
(1) Column may not add due to rounding
|
ACADEMY SPORTS AND OUTDOORS, INC. |
CONSOLIDATED STATEMENTS OF INCOME |
(Unaudited) |
(Amounts in thousands, except per share data) |
|
|
Thirty-Nine Weeks Ended |
|
October 28, 2023 |
|
Percentage of Sales(1) |
|
October 29, 2022 |
|
Percentage of Sales(1) |
Net sales |
$ |
4,364,463 |
|
|
100.0 |
|
% |
|
$ |
4,648,570 |
|
|
100.0 |
|
% |
Cost of goods sold |
|
2,851,261 |
|
|
65.3 |
|
% |
|
|
3,008,612 |
|
|
64.7 |
|
% |
Gross margin |
|
1,513,202 |
|
|
34.7 |
|
% |
|
|
1,639,958 |
|
|
35.3 |
|
% |
Selling, general and
administrative expenses |
|
1,039,312 |
|
|
23.8 |
|
% |
|
|
998,209 |
|
|
21.5 |
|
% |
Operating income |
|
473,890 |
|
|
10.9 |
|
% |
|
|
641,749 |
|
|
13.8 |
|
% |
Interest expense, net |
|
33,473 |
|
|
0.8 |
|
% |
|
|
34,240 |
|
|
0.7 |
|
% |
Other (income), net |
|
(11,482 |
) |
|
(0.3 |
) |
% |
|
|
(4,676 |
) |
|
(0.1 |
) |
% |
Income before income taxes |
|
451,899 |
|
|
10.4 |
|
% |
|
|
612,185 |
|
|
13.2 |
|
% |
Income tax expense |
|
100,876 |
|
|
2.3 |
|
% |
|
|
141,837 |
|
|
3.1 |
|
% |
Net income |
$ |
351,023 |
|
|
8.0 |
|
% |
|
$ |
470,348 |
|
|
10.1 |
|
% |
|
|
|
|
|
|
|
|
Earnings Per Common
Share: |
|
|
|
|
|
|
|
Basic |
$ |
4.63 |
|
|
|
|
$ |
5.67 |
|
|
|
Diluted |
$ |
4.51 |
|
|
|
|
$ |
5.54 |
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares
Outstanding: |
|
|
|
|
|
|
|
Basic |
|
75,809 |
|
|
|
|
|
82,901 |
|
|
|
Diluted |
|
77,893 |
|
|
|
|
|
84,910 |
|
|
|
(1) Column may not add due to rounding
|
ACADEMY SPORTS AND OUTDOORS, INC. |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(Dollar amounts in thousands, except per share
data) |
|
|
|
October 28, 2023 |
|
January 28, 2023 |
|
October 29, 2022 |
ASSETS |
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
274,827 |
|
$ |
337,145 |
|
$ |
318,167 |
Accounts receivable - less allowance for doubtful accounts of
$3,102, $2,004 and $1,449, respectively |
|
|
17,706 |
|
|
16,503 |
|
|
15,998 |
Merchandise inventories, net |
|
|
1,492,219 |
|
|
1,283,517 |
|
|
1,495,464 |
Prepaid expenses and other current assets |
|
|
110,823 |
|
|
47,747 |
|
|
44,241 |
Assets held for sale |
|
|
— |
|
|
1,763 |
|
|
1,763 |
Total current assets |
|
|
1,895,575 |
|
|
1,686,675 |
|
|
1,875,633 |
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET |
|
|
429,648 |
|
|
351,424 |
|
|
354,014 |
RIGHT-OF-USE
ASSETS |
|
|
1,126,825 |
|
|
1,100,085 |
|
|
1,100,522 |
TRADE
NAME |
|
|
578,071 |
|
|
577,716 |
|
|
577,571 |
GOODWILL |
|
|
861,920 |
|
|
861,920 |
|
|
861,920 |
OTHER NONCURRENT
ASSETS |
|
|
29,231 |
|
|
17,619 |
|
|
12,804 |
Total assets |
|
$ |
4,921,270 |
|
$ |
4,595,439 |
|
$ |
4,782,464 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
Accounts payable |
|
$ |
820,428 |
|
$ |
686,472 |
|
$ |
840,585 |
Accrued expenses and other current liabilities |
|
|
232,046 |
|
|
240,169 |
|
|
259,179 |
Current lease liabilities |
|
|
117,141 |
|
|
109,075 |
|
|
88,447 |
Current maturities of long-term debt |
|
|
3,000 |
|
|
3,000 |
|
|
3,000 |
Total current liabilities |
|
|
1,172,615 |
|
|
1,038,716 |
|
|
1,191,211 |
|
|
|
|
|
|
|
LONG-TERM DEBT,
NET |
|
|
583,364 |
|
|
584,456 |
|
|
682,803 |
LONG-TERM LEASE
LIABILITIES |
|
|
1,095,812 |
|
|
1,072,192 |
|
|
1,093,909 |
DEFERRED TAX
LIABILITIES, NET |
|
|
264,565 |
|
|
259,043 |
|
|
242,843 |
OTHER LONG-TERM
LIABILITIES |
|
|
11,827 |
|
|
12,726 |
|
|
12,779 |
Total liabilities |
|
|
3,128,183 |
|
|
2,967,133 |
|
|
3,223,545 |
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY : |
|
|
|
|
|
|
Preferred stock, $0.01 par value, authorized 50,000,000 shares;
none issued and outstanding |
|
|
— |
|
|
— |
|
|
— |
Common stock, $0.01 par value, authorized 300,000,000 shares;
74,143,759; 76,711,720 and 77,959,530 issued and outstanding as of
October 28, 2023, January 28, 2023, and October 29, 2022,
respectively. |
|
|
741 |
|
|
767 |
|
|
779 |
Additional paid-in capital |
|
|
239,447 |
|
|
216,209 |
|
|
203,734 |
Retained earnings |
|
|
1,552,899 |
|
|
1,411,330 |
|
|
1,354,406 |
Stockholders' equity |
|
|
1,793,087 |
|
|
1,628,306 |
|
|
1,558,919 |
Total liabilities and stockholders' equity |
|
$ |
4,921,270 |
|
$ |
4,595,439 |
|
$ |
4,782,464 |
|
ACADEMY SPORTS AND OUTDOORS, INC. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
(Amounts in thousands) |
|
|
|
Thirty-Nine Weeks Ended |
|
|
October 28, 2023 |
|
October 29, 2022 |
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
Net income |
|
$ |
351,023 |
|
|
$ |
470,348 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
79,394 |
|
|
|
78,852 |
|
Non-cash lease expense |
|
|
4,945 |
|
|
|
635 |
|
Equity compensation |
|
|
26,128 |
|
|
|
15,486 |
|
Amortization of deferred loan and other costs |
|
|
2,019 |
|
|
|
2,328 |
|
Deferred income taxes |
|
|
5,522 |
|
|
|
25,631 |
|
Gain on disposal of property and equipment |
|
|
(363 |
) |
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(1,203 |
) |
|
|
3,720 |
|
Merchandise inventories, net |
|
|
(208,702 |
) |
|
|
(323,656 |
) |
Prepaid expenses and other current assets |
|
|
(59,234 |
) |
|
|
798 |
|
Other noncurrent assets |
|
|
(12,471 |
) |
|
|
(8,987 |
) |
Accounts payable |
|
|
128,301 |
|
|
|
95,183 |
|
Accrued expenses and other current
liabilities |
|
|
(5,508 |
) |
|
|
(39,196 |
) |
Income taxes payable |
|
|
(7,910 |
) |
|
|
(12,332 |
) |
Other long-term liabilities |
|
|
(899 |
) |
|
|
359 |
|
Net cash provided by operating
activities |
|
|
301,042 |
|
|
|
309,169 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(151,963 |
) |
|
|
(79,454 |
) |
Purchases of intangible assets |
|
|
(354 |
) |
|
|
(357 |
) |
Proceeds from the sale of property and equipment |
|
|
2,126 |
|
|
|
— |
|
Net cash used in investing
activities |
|
|
(150,191 |
) |
|
|
(79,811 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Repayment of Term Loan |
|
|
(2,250 |
) |
|
|
(2,250 |
) |
Proceeds from exercise of stock options |
|
|
13,444 |
|
|
|
11,559 |
|
Proceeds from issuance of common stock under employee stock
purchase program |
|
|
2,887 |
|
|
|
2,797 |
|
Taxes paid related to net share settlement of equity awards |
|
|
(6,635 |
) |
|
|
(1,078 |
) |
Repurchase of common stock for retirement |
|
|
(200,072 |
) |
|
|
(389,436 |
) |
Dividends paid |
|
|
(20,543 |
) |
|
|
(18,781 |
) |
Net cash used in financing activities |
|
|
(213,169 |
) |
|
|
(397,189 |
) |
|
|
|
|
|
|
|
|
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS |
|
|
(62,318 |
) |
|
|
(167,831 |
) |
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD |
|
|
337,145 |
|
|
|
485,998 |
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD |
|
$ |
274,827 |
|
|
$ |
318,167 |
|
|
|
ACADEMY SPORTS AND OUTDOORS,
INC.RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL
MEASURES(Unaudited)
Adjusted EBITDA and Adjusted
EBIT We define “Adjusted EBITDA” as net income (loss)
before interest expense, net, income tax expense and depreciation,
amortization, and impairment, and other adjustments included in the
table below. We define “Adjusted EBIT” as Adjusted EBITDA less
depreciation and amortization. We describe these adjustments
reconciling net income (loss) to Adjusted EBITDA and Adjusted EBIT
in the following table (amounts in thousands):
|
|
Thirteen Weeks Ended |
|
Thirty-Nine Weeks Ended |
|
|
October 28, 2023 |
|
October 29, 2022 |
|
October 28, 2023 |
|
October 29, 2022 |
Net income |
|
$ |
99,978 |
|
|
$ |
131,741 |
|
|
$ |
351,023 |
|
|
$ |
470,348 |
|
Interest expense,
net |
|
|
10,930 |
|
|
|
12,163 |
|
|
|
33,473 |
|
|
|
34,240 |
|
Income tax
expense |
|
|
29,969 |
|
|
|
38,156 |
|
|
|
100,876 |
|
|
|
141,837 |
|
Depreciation and
amortization |
|
|
27,373 |
|
|
|
27,000 |
|
|
|
79,394 |
|
|
|
78,852 |
|
Equity
compensation (a) |
|
|
6,245 |
|
|
|
5,829 |
|
|
|
26,128 |
|
|
|
15,486 |
|
Adjusted EBITDA (b) |
|
$ |
174,495 |
|
|
$ |
214,889 |
|
|
$ |
590,894 |
|
|
$ |
740,763 |
|
Less: Depreciation
and amortization |
|
|
(27,373 |
) |
|
|
(27,000 |
) |
|
|
(79,394 |
) |
|
|
(78,852 |
) |
Adjusted EBIT (b) |
|
$ |
147,122 |
|
|
$ |
187,889 |
|
|
$ |
511,500 |
|
|
$ |
661,911 |
|
|
|
|
|
|
|
|
|
|
(a) Represents non-cash charges related to equity-based
compensation, which vary from period to period depending on certain
factors such as timing and valuation of awards, achievement of
performance targets and equity award forfeitures. |
(b) Effective January 28, 2023, we no longer exclude pre-opening
expenses from our computations of Adjusted EBITDA and Adjusted
EBIT. Adjusted EBITDA and Adjusted EBIT for the thirteen and
thirty-nine weeks ended October 29, 2022 have been revised to the
current period computation methodology. |
|
Adjusted Net Income and Adjusted
Earnings Per Common Share
We define “Adjusted Net Income” as net income
(loss) plus other adjustments, less the tax effect of these
adjustments. We define “Adjusted Earnings per Common Share,
Basic” as Adjusted Net Income divided by the basic weighted average
common shares outstanding during the period and “Adjusted Earnings
per Common Share, Diluted” as Adjusted Net Income divided by the
diluted weighted average common shares outstanding during the
period. We describe these adjustments reconciling net income (loss)
to Adjusted Net Income, and Adjusted Earnings Per Common Share in
the following table (amounts in thousands, except per share
data):
|
|
Thirteen Weeks Ended |
|
Thirty-Nine Weeks Ended |
|
|
October 28, 2023 |
|
October 29, 2022 |
|
October 28, 2023 |
|
October 29, 2022 |
Net income |
|
$ |
99,978 |
|
|
$ |
131,741 |
|
|
$ |
351,023 |
|
|
$ |
470,348 |
|
Equity
compensation (a) |
|
|
6,245 |
|
|
|
5,829 |
|
|
|
26,128 |
|
|
|
15,486 |
|
Tax effects of
these adjustments (b) |
|
|
(1,531 |
) |
|
|
(1,325 |
) |
|
|
(5,909 |
) |
|
|
(3,590 |
) |
Adjusted Net Income (c) |
|
$ |
104,692 |
|
|
$ |
136,245 |
|
|
$ |
371,242 |
|
|
$ |
482,244 |
|
|
|
|
|
|
|
|
|
|
Earnings per
common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.34 |
|
|
$ |
1.67 |
|
|
$ |
4.63 |
|
|
$ |
5.67 |
|
Diluted |
|
$ |
1.31 |
|
|
$ |
1.62 |
|
|
$ |
4.51 |
|
|
$ |
5.54 |
|
Adjusted Earnings
per Common Share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.41 |
|
|
$ |
1.72 |
|
|
$ |
4.90 |
|
|
$ |
5.82 |
|
Diluted |
|
$ |
1.38 |
|
|
$ |
1.67 |
|
|
$ |
4.77 |
|
|
$ |
5.68 |
|
Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
74,461 |
|
|
|
79,085 |
|
|
|
75,809 |
|
|
|
82,901 |
|
Diluted |
|
|
76,057 |
|
|
|
81,379 |
|
|
|
77,893 |
|
|
|
84,910 |
|
|
|
(a) Represents non-cash charges related to equity-based
compensation, which vary from period to period depending on certain
factors such as timing and valuation of awards, achievement of
performance targets and equity award forfeitures. |
(b) For the thirteen and thirty-nine weeks ended October 28, 2023,
and October 29, 2022, this represents the estimated tax effect (by
using the projected full year tax rates for the respective years)
of the total adjustments made to arrive at Adjusted Net
Income. |
(c) Effective January 28, 2023, we no longer exclude pre-opening
expenses from our computations of Adjusted Net Income. Adjusted Net
Income for the thirteen and thirty-nine weeks ended October 29,
2022, has been revised to the current period computation
methodology. |
|
Adjusted Net Income and Adjusted
Earnings Per Common Share, Diluted, Guidance Reconciliation
(amounts in millions, except per share data)
|
|
Low Range* |
|
High Range* |
|
|
Fiscal Year EndingFebruary 3,
2024 |
|
Fiscal Year EndingFebruary 3,
2024 |
Net Income |
|
$ |
520 |
|
|
$ |
530 |
|
Equity compensation (a) |
|
|
33 |
|
|
|
33 |
|
Tax effects of these
adjustments (a) |
|
|
(8 |
) |
|
|
(8 |
) |
Adjusted Net Income |
|
$ |
545 |
|
|
$ |
555 |
|
|
|
|
|
|
Earnings Per Common Share,
Diluted |
|
$ |
6.70 |
|
|
$ |
6.85 |
|
Equity compensation (a) |
|
|
0.43 |
|
|
|
0.43 |
|
Tax effects of these
adjustments (a) |
|
|
(0.08 |
) |
|
|
(0.08 |
) |
Adjusted Earnings per Common Share, Diluted |
|
$ |
7.05 |
|
|
$ |
7.20 |
|
|
|
|
|
|
|
|
|
|
|
*Amounts presented have been rounded. |
(a) Adjustments include non-cash charges related to equity-based
compensation (as defined above), which may vary from period to
period. The tax effect of these adjustments is determined by using
the projected full year tax rate for the fiscal year. |
|
Adjusted Free Cash Flow
We define “Adjusted Free Cash Flow” as net cash
provided by (used in) operating activities less net cash used in
investing activities. We describe these adjustments reconciling net
cash provided by operating activities to Adjusted Free Cash Flow in
the following table (amounts in thousands):
|
|
Thirteen Weeks Ended |
|
Thirty-Nine Weeks Ended |
|
|
October 28, 2023 |
|
October 29, 2022 |
|
October 28, 2023 |
|
October 29, 2022 |
Net cash provided by operating activities |
|
$ |
57,476 |
|
|
$ |
50,763 |
|
|
$ |
301,042 |
|
|
$ |
309,169 |
|
Net cash used in investing
activities |
|
|
(42,345 |
) |
|
|
(31,677 |
) |
|
|
(150,191 |
) |
|
|
(79,811 |
) |
Adjusted Free Cash Flow |
|
$ |
15,131 |
|
|
$ |
19,086 |
|
|
$ |
150,851 |
|
|
$ |
229,358 |
|
|
Adjusted Free Cash Flow, Guidance
Reconciliation (amounts in millions)
|
|
Low Range* |
|
High Range* |
|
|
Fiscal Year EndingFebruary 3,
2024 |
|
Fiscal Year EndingFebruary 3,
2024 |
Net cash provided by operating activities |
|
$ |
475 |
|
|
$ |
575 |
|
Net cash used in
investing activities |
|
|
(175 |
) |
|
|
(225 |
) |
Adjusted Free Cash Flow |
|
$ |
300 |
|
|
$ |
350 |
|
|
|
|
|
|
* Amounts presented
have been rounded. |
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