- Comparable store sales declined 8.4%
- Net sales of $2.7 billion
increased 41% versus the first quarter of 2019
- Delivered earnings per diluted share of $2.47 and non-GAAP earnings per diluted share of
$2.85, reflecting pre-tax income as a
percentage of net sales of 12.3%
- Exchanged $100 million aggregate
principal amount of convertible senior notes and unwound the
corresponding portion of the convertible bond hedge and warrants
for a combination of cash and shares, ending the first quarter with
cash and cash equivalents of approximately $2.3 billion
- Updates full year 2022 outlook to reflect the impact of
evolving macroeconomic conditions
|
"We are pleased
with our first quarter results as our team continued to move with
agility and execute well in a highly dynamic environment. Over the
past two years, we have demonstrated our ability to adeptly manage
through the pandemic and other challenges - and we are confident in
our continued ability to adapt quickly and execute through
uncertain macroeconomic conditions. DICK'S has a unique and
powerful position in the marketplace, and we remain confident in
our strategies and our ability to deliver long-term sales and
earnings growth."
|
|
Lauren Hobart, President and Chief Executive
Officer
|
PITTSBURGH, May 25, 2022
/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 first quarter
ended April 30, 2022.
|
First Quarter Operating
Results
(dollars in millions, except per share
data)
|
13 Weeks
Ended
|
Change
|
|
April 30,
2022
|
May 1,
2021
|
|
Net sales
|
$
2,700.2
|
$
2,918.7
|
$
(218.5)
|
(7.5)
%
|
|
Comparable store sales
(1)
|
(8.4)
%
|
117.1 %
|
|
|
Income before income
taxes (% of net sales)
|
12.29 %
|
16.10 %
|
(381) bps
|
|
Non-GAAP income before
income taxes (% of net sales) (2)
|
12.29 %
|
16.35 %
|
(406) bps
|
|
Net income
|
$
260.6
|
$
361.8
|
$
(101.2)
|
(28.0)
%
|
|
Non-GAAP net income
(2)
|
$
260.6
|
$
367.2
|
$
(106.6)
|
(29.0)
%
|
|
Earnings per diluted
share
|
$
2.47
|
$
3.41
|
$ (0.94)
|
(27.6)
%
|
|
Non-GAAP earnings per
diluted share (2)
|
$
2.85
|
$
3.79
|
$ (0.94)
|
(24.8)
%
|
|
1.
|
Beginning in fiscal
2022, the Company revised its method for determining its comparable
store sales calculations to include relocated store locations.
Prior year information is revised to reflect this change for
comparability purposes. See additional details in Exhibit 99.2 of
the Company's Form 8-K as filed with the SEC on March 8,
2022.
|
|
2.
|
In the fiscal 2022
period, there were no non-GAAP adjustments to reported income
before income taxes or net income. In the fiscal 2021 period, there
were non-GAAP adjustments due to amortization of the debt discount
associated with the convertible senior notes. See New Accounting
Pronouncement later in this release for further details. For
additional information, the GAAP to non-GAAP reconciliations are
included in a table later in the release under the heading "GAAP to
Non-GAAP Reconciliations."
|
|
Balance
Sheet
(dollars in millions)
|
As of
April 30,
2022
|
As of
May 1,
2021
|
$
Change
(1)
|
% Change
(1)
|
|
Cash and cash
equivalents
|
$
2,251.3
|
$
1,858.7
|
$ 392.6
|
21.1
%
|
|
Inventories,
net
|
$
2,824.8
|
$
2,012.1
|
$
812.8
|
40.4
%
|
|
Total debt
(2)
|
$
1,947.7
|
$
425.8
|
$
1,521.9
|
357.4
%
|
|
1.
|
Column may not
recalculate due to rounding.
|
|
2.
|
Fiscal 2022 includes
debt with a carrying value of $1,481.7 million from the Company's
issuance of the Senior Notes during the fourth quarter of 2021.
Fiscal 2022 and 2021 includes debt with a carrying value of $466.0
million and $425.8 million, respectively, from the Company's
issuance of the Convertible Senior Notes during fiscal 2020. The
Company had no outstanding borrowings under its revolving credit
facility in 2022 and 2021.
|
|
Capital
Allocation
(dollars in millions)
|
13 Weeks
Ended
|
$
Change
(1)
|
% Change
(1)
|
|
April 30,
2022
|
May 1,
2021
|
|
Share repurchases
(2)
|
$
42.2
|
$
76.8
|
$
(34.6)
|
(45.0)
%
|
|
Dividends
(3)
|
$
46.1
|
$
33.3
|
$
12.7
|
38.2
%
|
|
Gross capital
expenditures
|
$
73.8
|
$
71.1
|
$
2.7
|
3.8
%
|
|
Net capital
expenditures (4)
|
$
53.9
|
$
57.2
|
$
(3.3)
|
(5.8)
%
|
|
1.
|
Column may not
recalculate due to rounding.
|
|
2.
|
In the fiscal 2022
period, repurchased 0.4 million shares of common stock at an
average price of $101.39 per share under the Company's share
repurchase program, under which the Company has $1.8 billion
remaining at April 30, 2022.
|
|
3.
|
In the 2022 and 2021
periods, declared and paid quarterly dividends of $0.4875 per share
and $0.3625 per share, respectively.
|
|
4.
|
For additional
information, the GAAP to non-GAAP reconciliations are included in a
table later in the release under the heading "GAAP to Non-GAAP
Reconciliations."
|
Quarterly Dividend
On May 24, 2022, the Company's
Board of Directors authorized and declared a quarterly dividend in
the amount of $0.4875 per share on
the Company's Common Stock and Class B Common Stock. The dividend
is payable in cash on June 24, 2022
to stockholders of record at the close of business on June 10, 2022.
Full Year 2022 Outlook
The Company's Full Year Outlook for 2022 is presented below:
|
Metric
|
2022 Outlook
|
|
Earnings per diluted
share
|
●
|
$7.95 to
10.15
|
|
|
○
|
Based on approximately
103 million diluted shares outstanding
|
|
|
○
|
Includes a minimum of
$300 million of share repurchases
|
|
●
|
$9.15 to 11.70 on a
non-GAAP basis, which excludes the impact of assumed
share settlement of the Convertible Senior Notes
|
|
|
○
|
Based on approximately
88 million diluted shares outstanding
|
|
Comparable store
sales
|
●
|
Negative 8% to negative
2%
|
|
Capital
expenditures
|
●
|
$400 to 425 million on
a gross basis
|
|
●
|
$340 to 365 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 first
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
non-GAAP income before income taxes, consolidated non-GAAP net
income, non-GAAP earnings per diluted share, non-GAAP diluted
shares outstanding, 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 adjusting interest
expense and share dilution related to the convertible senior notes
and convertible bond hedge is useful to investors because it
provides a more complete view of the economics of the transaction.
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.
New Accounting
Pronouncement
The Company adopted a new accounting pronouncement in the first
quarter of 2022, which impacted the accounting treatment for
convertible debt with cash conversion features, such as the
Convertible Senior Notes. The standard required that the Company
eliminate the non-cash debt discount and related interest expense
from its Convertible Senior Notes, which decreased their annualized
interest rate from 11.6% to 3.9%. The new standard also required
earnings per diluted share to assume share conversion of the entire
amount of shares underlying the Convertible Senior Notes as of the
beginning of the period presented using the if-converted method.
The Company adopted the standard under the modified retrospective
approach and therefore, will not revise prior periods. The Company
does not expect the net effect of these changes will materially
impact its full year 2022 GAAP earnings per diluted share and is
reflected in its fiscal 2022 outlook.
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. Forward-looking statements can be identified as
those that may predict, forecast, indicate or imply future results
or performance and by forward-looking words such as "believe",
"anticipate", "expect", "estimate", "predict", "intend", "plan",
"project", "goal", "will", "will be", "will continue", "will
result", "could", "may", "might" or any variations of such words or
other words with similar meanings. These 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, including 2022 outlook for earnings,
sales, and capital expenditures; share repurchases and dividends;
and the expected impact of the new accounting pronouncement
discussed in the preceding section.
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
COVID-19, including the impact due to disruptions in our or our
vendors' supply chains and due to restrictions imposed by federal,
state, and local governments in response to increases in the number
of COVID-19 cases in areas in which we operate; challenging
macroeconomic conditions, including inflationary pressures and
supply chain constraints, due to COVID-19, the conflict in
Ukraine, or otherwise and the
effectiveness of measures to mitigate such impact; changes in
consumer discretionary spending; investments in omni-channel growth
not producing the anticipated benefits within the expected
time-frame or at all; risks relating to vertical 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; 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; weather-related disruptions and seasonality of the
Company's business; changes in existing tax, labor, foreign trade
and other laws and regulations, including those imposing new taxes,
surcharges, or tariffs; increasing labor costs; 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; increasing direct competition
from vendors, and increasing product costs due to various reasons,
including foreign trade issues, currency exchange rate
fluctuations, and increasing prices for raw materials due to
inflation; our ability to hire and retain quality teammates,
including store managers and sales associates; the loss of key
personnel; and developments with sports leagues, professional
athletes or sports superstars.
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 23, 2022. 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.
DICK'S Sporting Goods (NYSE: DKS) creates confidence and
excitement by personally equipping all athletes to achieve their
dreams. Founded in 1948 and headquartered in Pittsburgh, the leading omnichannel retailer
serves athletes and outdoor enthusiasts in more than 850 DICK'S
Sporting Goods, Golf Galaxy, Field & Stream, Public Lands,
Going Going Gone! and Warehouse Sale stores, online, and through
the DICK'S mobile app. DICK'S also owns and operates DICK'S House
of Sport and Golf Galaxy Performance Center, as well as
GameChanger, a youth sports mobile app for scheduling,
communications, live scorekeeping and video streaming.
Driven by its belief that sports make people better, DICK'S has
been a longtime champion for youth sports and, together with its
Foundation, has donated millions of dollars to support
under-resourced teams and athletes through the Sports Matter
program and other community-based initiatives. Additional
information about DICK'S business, corporate giving, sustainability
efforts and employment opportunities can be found on dicks.com,
investors.dicks.com, sportsmatter.org, dickssportinggoods.jobs and
on Facebook, Twitter and Instagram.
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: Earnings
###
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED
|
|
(In thousands,
except per share data)
|
|
|
|
13 Weeks Ended
|
|
|
April 30,
2022
|
|
% of
Sales
|
|
May 1,
2021
|
|
% of
Sales(1)
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
2,700,205
|
|
100.00%
|
|
$
2,918,719
|
|
100.00%
|
|
Cost of goods sold,
including occupancy and
distribution costs
|
|
1,715,491
|
|
63.53
|
|
1,830,092
|
|
62.70
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
984,714
|
|
36.47
|
|
1,088,627
|
|
37.30
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
615,293
|
|
22.79
|
|
608,294
|
|
20.84
|
|
Pre-opening
expenses
|
|
2,900
|
|
0.11
|
|
4,524
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS
|
|
366,521
|
|
13.57
|
|
475,809
|
|
16.30
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
25,642
|
|
0.95
|
|
13,381
|
|
0.46
|
|
Other expense
(income)
|
|
9,022
|
|
0.33
|
|
(7,350)
|
|
(0.25)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
331,857
|
|
12.29
|
|
469,778
|
|
16.10
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
71,298
|
|
2.64
|
|
108,022
|
|
3.70
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
260,559
|
|
9.65%
|
|
$
361,756
|
|
12.39%
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
3.42
|
|
|
|
$
4.27
|
|
|
|
Diluted
|
|
$
2.47
|
|
|
|
$
3.41
|
|
|
|
|
|
|
|
|
|
|
|
|
NUMERATOR USED TO
COMPUTE EARNINGS PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
260,559
|
|
|
|
$
361,756
|
|
|
|
Diluted
|
|
$
268,768
|
|
|
|
$
361,756
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON
SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
76,181
|
|
|
|
84,750
|
|
|
|
Diluted
|
|
108,629
|
|
|
|
106,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Column does not add due to
rounding
|
|
|
|
|
|
|
|
|
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS - UNAUDITED
|
|
(In
thousands)
|
|
|
|
April 30,
2022
|
|
May 1,
2021
|
|
January 29,
2022
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,251,338
|
|
$
1,858,737
|
|
$
2,643,205
|
|
Accounts
receivable, net
|
|
76,253
|
|
67,145
|
|
68,263
|
|
Income taxes
receivable
|
|
1,639
|
|
2,803
|
|
1,978
|
|
Inventories,
net
|
|
2,824,832
|
|
2,012,054
|
|
2,297,609
|
|
Prepaid expenses
and other current assets
|
|
102,603
|
|
100,586
|
|
95,601
|
|
Total current assets
|
|
5,256,665
|
|
4,041,325
|
|
5,106,656
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,305,137
|
|
1,319,774
|
|
1,319,681
|
|
Operating lease
assets
|
|
2,048,151
|
|
2,150,664
|
|
2,044,819
|
|
Intangible
assets, net
|
|
86,160
|
|
89,119
|
|
86,767
|
|
Goodwill
|
|
245,857
|
|
245,857
|
|
245,857
|
|
Deferred income
taxes
|
|
66,080
|
|
47,491
|
|
35,024
|
|
Other
assets
|
|
211,750
|
|
172,350
|
|
202,872
|
|
TOTAL ASSETS
|
|
$
9,219,800
|
|
$
8,066,580
|
|
$
9,041,676
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
1,491,931
|
|
$
1,239,503
|
|
$
1,281,322
|
|
Accrued
expenses
|
|
462,085
|
|
499,071
|
|
620,143
|
|
Operating lease
liabilities
|
|
476,343
|
|
468,318
|
|
480,318
|
|
Income taxes
payable
|
|
80,023
|
|
141,868
|
|
13,464
|
|
Deferred revenue
and other liabilities
|
|
292,457
|
|
238,751
|
|
317,433
|
|
Total current liabilities
|
|
2,802,839
|
|
2,587,511
|
|
2,712,680
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
|
Revolving credit
borrowings
|
|
—
|
|
—
|
|
—
|
|
Senior
notes
|
|
1,481,664
|
|
—
|
|
1,481,443
|
|
Convertible senior notes
|
|
466,026
|
|
425,799
|
|
449,287
|
|
Long-term
operating lease liabilities
|
|
2,095,314
|
|
2,253,883
|
|
2,099,146
|
|
Other long-term
liabilities
|
|
179,351
|
|
200,663
|
|
197,534
|
|
Total long-term liabilities
|
|
4,222,355
|
|
2,880,345
|
|
4,227,410
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
Common
stock
|
|
544
|
|
610
|
|
520
|
|
Class B common
stock
|
|
236
|
|
237
|
|
236
|
|
Additional
paid-in capital
|
|
1,368,211
|
|
1,448,892
|
|
1,488,834
|
|
Retained
earnings
|
|
4,212,451
|
|
3,394,067
|
|
3,956,602
|
|
Accumulated
other comprehensive (loss) income
|
|
(89)
|
|
15
|
|
(82)
|
|
Treasury stock,
at cost
|
|
(3,386,747)
|
|
(2,245,097)
|
|
(3,344,524)
|
|
Total stockholders' equity
|
|
2,194,606
|
|
2,598,724
|
|
2,101,586
|
|
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
$
9,219,800
|
|
$
8,066,580
|
|
$
9,041,676
|
|
|
|
|
|
|
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS - UNAUDITED
|
|
(In
thousands)
|
|
|
|
13 Weeks Ended
|
|
|
April 30,
2022
|
|
May 1,
2021
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net
income
|
|
$
260,559
|
|
$
361,756
|
|
Adjustments to
reconcile net income to net cash (used in) provided by
operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
79,673
|
|
78,366
|
|
Amortization of
deferred financing fees and debt discount
|
|
1,371
|
|
7,306
|
|
Deferred income
taxes
|
|
(1,791)
|
|
3,984
|
|
Stock-based
compensation
|
|
15,177
|
|
12,870
|
|
Other,
net
|
|
264
|
|
—
|
|
Changes in
assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
(17,435)
|
|
(12,439)
|
|
Inventories
|
|
(527,223)
|
|
(58,486)
|
|
Prepaid expenses and other assets
|
|
(6,138)
|
|
(9,603)
|
|
Accounts payable
|
|
237,076
|
|
38,057
|
|
Accrued expenses
|
|
(132,185)
|
|
(44,310)
|
|
Income taxes payable / receivable
|
|
66,898
|
|
104,464
|
|
Construction allowances provided by landlords
|
|
19,891
|
|
13,902
|
|
Deferred revenue and other liabilities
|
|
(35,047)
|
|
(21,240)
|
|
Operating lease assets and liabilities
|
|
(21,391)
|
|
(27,276)
|
|
Net cash (used
in) provided by operating activities
|
|
(60,301)
|
|
447,351
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Capital
expenditures
|
|
(73,783)
|
|
(71,097)
|
|
Proceeds from
sale of other assets
|
|
14,261
|
|
—
|
|
Deposits and
other investing activities
|
|
(10,780)
|
|
(2,338)
|
|
Net cash used in
investing activities
|
|
(70,302)
|
|
(73,435)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Principal paid
in connection with exchange of convertible senior notes
|
|
(100,000)
|
|
—
|
|
Payments on
other long-term debt and finance lease obligations
|
|
(178)
|
|
(220)
|
|
Proceeds from
exercise of stock options
|
|
12,665
|
|
12,333
|
|
Minimum tax
withholding requirements
|
|
(33,287)
|
|
(18,601)
|
|
Cash paid for
treasury stock
|
|
(67,909)
|
|
(76,841)
|
|
Cash dividends
paid to stockholders
|
|
(46,081)
|
|
(33,334)
|
|
Decrease in bank
overdraft
|
|
(26,467)
|
|
(56,647)
|
|
Net cash used in
financing activities
|
|
(261,257)
|
|
(173,310)
|
|
EFFECT OF EXCHANGE RATE
CHANGES ON CASH AND CASH EQUIVALENTS
|
|
(7)
|
|
64
|
|
NET (DECREASE) INCREASE
IN CASH AND CASH EQUIVALENTS
|
|
(391,867)
|
|
200,670
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
2,643,205
|
|
1,658,067
|
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
2,251,338
|
|
$
1,858,737
|
|
DICK'S SPORTING
GOODS, INC.
|
|
GAAP
to NON-GAAP RECONCILIATIONS -
UNAUDITED
|
|
|
Non-GAAP Net
Income and Earnings Per Share Reconciliations
|
|
(in thousands, except
per share amounts)
|
|
|
13 Weeks Ended April 30, 2022
|
|
|
|
|
|
|
|
Net income
|
After tax
interest from
Convertible
Senior Notes (2)
|
Net income
for earnings
per diluted
share
|
Weighted
average
diluted
shares
|
Earnings
per
diluted
share
|
|
GAAP Basis
|
$
260,559
|
$
8,209
|
$ 268,768
|
108,629
|
$
2.47
|
|
% of Net
Sales
|
9.65
%
|
0.30
%
|
9.95
%
|
|
|
|
Convertible senior
notes (1)
|
—
|
(8,209)
|
(8,209)
|
(17,080)
|
|
|
Non-GAAP
Basis
|
$
260,559
|
$
—
|
$ 260,559
|
91,549
|
$
2.85
|
|
% of Net
Sales
|
9.65
%
|
—
%
|
9.65
%
|
|
|
|
(1)
|
Adjustment excludes the
impact of assumed share settlement of the convertible notes as
required by the if-converted method. Due to the Company's intent to
settle the convertible notes' principal in cash and the shares the
Company expects to receive under its convertible bond hedge, which
is designed to offset dilution, the Company does not expect the
convertible notes will have a dilutive effect upon conversion.
Accordingly, the Company believes reflecting the notes as debt more
closely represents the economics of the transaction upon future
conversion.
|
|
(2)
|
The provision for
income taxes for non-GAAP adjustments was calculated at 26%, which
approximates the Company's blended tax rate.
|
|
13 Weeks Ended May 1, 2021
|
|
|
|
|
|
|
|
|
Income
from
operations
|
Interest
expense
|
Income
before
income taxes
|
Net
income (2)
|
Diluted
shares
outstanding
during
period
|
Earnings
per
diluted
share
|
|
GAAP Basis
|
$
475,809
|
$
13,381
|
$ 469,778
|
$ 361,756
|
106,010
|
$
3.41
|
|
% of Net
Sales
|
16.30
%
|
0.46
%
|
16.10
%
|
12.39
%
|
|
|
|
Convertible senior
notes (1)
|
—
|
(7,307)
|
7,307
|
5,407
|
(9,214)
|
|
|
Non-GAAP
Basis
|
$
475,809
|
$ 6,074
|
$ 477,085
|
$ 367,163
|
96,796
|
$
3.79
|
|
% of Net
Sales
|
16.30
%
|
0.21
%
|
16.35
%
|
12.58
%
|
|
|
|
(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 bond hedge purchased by the
Company.
|
|
(2)
|
The provision for
income taxes for non-GAAP adjustments was calculated at 26%, which
approximated the Company's blended tax rate.
|
|
52 Weeks Ended January 29, 2022
|
|
|
|
|
|
|
|
|
Income
from
operations
|
Interest
expense
|
Income
before
income taxes
|
Net
income (2)
|
Diluted
shares
outstanding
during
period
|
Earnings
per
diluted
share
|
|
GAAP Basis
|
$
2,034,503
|
$
57,839
|
$
1,994,438
|
$
1,519,871
|
109,578
|
$
13.87
|
|
% of Net
Sales
|
16.55
%
|
0.47
%
|
16.22
%
|
12.36
%
|
|
|
|
Convertible senior
notes (1)
|
—
|
(30,794)
|
30,794
|
22,788
|
(11,332)
|
|
|
Non-GAAP
Basis
|
$
2,034,503
|
$
27,045
|
$
2,025,232
|
$
1,542,659
|
98,246
|
$
15.70
|
|
% of Net
Sales
|
16.55
%
|
0.22
%
|
16.47
%
|
12.55
%
|
|
|
|
(1)
|
Amortization of the
non-cash debt discount on the Company's convertible senior notes
and diluted shares that are designed to be offset at settlement by
shares delivered from the convertible bond hedge purchased by the
Company.
|
|
(2)
|
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
|
|
(in
thousands)
|
|
|
The following table
represents a reconciliation of the Company's gross capital
expenditures to its capital expenditures, net of tenant
allowances.
|
|
|
|
13 Weeks Ended
|
|
|
April 30,
2022
|
|
May 1,
2021
|
|
Gross capital
expenditures
|
|
$
(73,783)
|
|
$
(71,097)
|
|
Construction allowances
provided by landlords
|
|
19,891
|
|
13,902
|
|
Net capital
expenditures
|
|
$
(53,892)
|
|
$
(57,195)
|
|
Reconciliation
of Non-GAAP Consolidated Net Income and Earnings Per
Diluted Share Guidance
|
|
(in millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52 Weeks Ended January 28, 2023
|
|
Low End
|
|
High End
|
|
Net
income
|
After tax
interest
from
Convertible
Senior
Notes (2)
|
Net
income
for
earnings
per
diluted
share
|
Weighted
average
diluted
shares
|
Earnings
per
diluted
share
|
|
Net
income
|
After tax
interest
from
Convertible
Senior
Notes (2)
|
Net
income
for
earnings
per
diluted
share
|
Weighted
average
diluted
shares
|
Earnings
per
diluted
share
|
|
GAAP Basis
|
$ 804
|
$
18
|
$
822
|
103
|
$ 7.95
|
|
$
1,029
|
$
18
|
$ 1,047
|
103
|
$ 10.15
|
|
Convertible
senior notes (1)
|
—
|
(18)
|
(18)
|
(15)
|
|
|
—
|
(18)
|
(18)
|
(15)
|
|
|
Non-GAAP
Basis
|
$ 804
|
$
—
|
$
804
|
88
|
$ 9.15
|
|
$
1,029
|
$
—
|
$
1,029
|
88
|
$ 11.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjustment excludes the
impact of assumed share settlement of the convertible notes as
required by the if-converted method. Due to the Company's intent to
settle the convertible notes' principal in cash and the shares the
Company expects to receive under its convertible bond hedge, which
is designed to offset dilution, the Company does not expect the
convertible notes will have a dilutive effect upon conversion.
Accordingly, the Company believes reflecting the notes as debt more
closely represents the economics of the transaction upon future
conversion.
|
|
(2)
|
The provision for
income taxes for non-GAAP adjustments was calculated at 26%, which
approximates the Company's blended tax rate.
|
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SOURCE DICK'S Sporting Goods, Inc.