- Comparable store sales declined 5.1%
- Net sales of $3.1 billion
increased 38% versus the second quarter of 2019
- Delivered earnings per diluted share of $3.25 and non-GAAP earnings per diluted share of
$3.68, each reflecting pre-tax income
as a percentage of net sales of 13.7%
- Raises low end of full year 2022 comparable store sales
guidance to a range of negative 6% to negative 2%, up from negative
8% to negative 2% previously
- Raises full year 2022 earnings per diluted share guidance to
$8.85 to 10.55, up from $7.95 to 10.15 previously; Raises full year 2022
non-GAAP earnings per diluted share guidance to $10.00 to 12.00, up from $9.15 to 11.70 previously
"Our second quarter
performance demonstrates the strength of our core strategies and
the foundational improvements we have made across our business over
the past five years. In fact, we delivered approximately the same
EBT in Q2 as we did in all of fiscal 2019. The state of our
industry is strong, and we remain in a great lane. DICK'S is the
clear market leader, and as a result of our transformation, we are
well-positioned to extend our lead and deliver long-term sales and
earnings growth."
|
Ed Stack,
Executive Chairman
|
|
"We are very pleased
with our second quarter results, and with our sales up 38% versus
Q2 2019, the DICK'S Sporting Goods consumer has held up quite well.
Our inventory is healthy and well-positioned, and we are excited
about our assortment for the back-to-school season. We are raising
our full year 2022 outlook, which continues to incorporate an
appropriate level of caution given today's uncertain macroeconomic
environment."
|
Lauren Hobart,
President and Chief Executive Officer
|
|
|
PITTSBURGH, Aug. 23,
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
second quarter ended July 30, 2022.
Second Quarter
Operating Results
(dollars in
millions, except per share data)
|
13 Weeks
Ended
|
Change
(1)
|
July 30,
2022
|
July 31,
2021
|
Net sales
|
$
3,112.4
|
$
3,274.8
|
$
(162.4)
|
(5.0) %
|
Comparable store sales
(2)
|
(5.1) %
|
20.2 %
|
|
Income before income
taxes (% of net sales)
|
13.73 %
|
20.05 %
|
(632) bps
|
Non-GAAP income before
income taxes (% of net sales) (3)
|
13.73 %
|
20.28 %
|
(655) bps
|
Net income
|
$
318.5
|
$
495.5
|
$
(177.0)
|
(35.7) %
|
Non-GAAP net income
(3)
|
$
318.5
|
$
501.2
|
$
(182.7)
|
(36.4) %
|
Earnings per diluted
share
|
$
3.25
|
$
4.53
|
$
(1.28)
|
(28.3) %
|
Non-GAAP earnings per
diluted share (3)
|
$
3.68
|
$
5.08
|
$
(1.40)
|
(27.6) %
|
Year-to-Date Operating
Results
(dollars in
millions, except per share data)
|
26 Weeks
Ended
|
Change
(1)
|
July 30,
2022
|
July 31,
2021
|
Net sales
|
$
5,812.6
|
$
6,193.6
|
$
(380.9)
|
(6.2) %
|
Comparable store sales
(2)
|
(6.6) %
|
52.2 %
|
|
Income before income
taxes (% of net sales)
|
13.06 %
|
18.19 %
|
(513) bps
|
Non-GAAP income before
income taxes (% of net sales) (3)
|
13.06 %
|
18.43 %
|
(537) bps
|
Net income
|
$
579.1
|
$
857.3
|
$
(278.2)
|
(32.5) %
|
Non-GAAP net income
(3)
|
$
579.1
|
$
868.3
|
$
(289.3)
|
(33.3) %
|
Earnings per diluted
share
|
$
5.70
|
$
7.96
|
$ (2.26)
|
(28.4) %
|
Non-GAAP earnings per
diluted share (3)
|
$
6.50
|
$
8.89
|
$ (2.39)
|
(26.9) %
|
|
|
1.
|
Column may not
recalculate due to rounding.
|
2.
|
Beginning in fiscal
2022, the Company revised its method for calculating comparable
store sales by including relocated store locations. Prior year
information was revised to reflect this change for comparability
purposes. See additional details as furnished in Exhibit 99.2 of
the Company's Form 8-K, which was filed with the SEC on March 8,
2022.
|
3.
|
Non-GAAP adjustments to
the fiscal periods presented relate to the Company's Convertible
Senior Notes, which the Company believes more closely represents
the economics of the instrument upon future conversion. For
additional information, see New Accounting Pronouncement later in
the release and GAAP to non-GAAP reconciliations included in a
table under the heading "GAAP to Non-GAAP
Reconciliations."
|
Balance
Sheet
(dollars in millions)
|
As of
July 30,
2022
|
As of
July 31,
2021
|
$
Change
(1)
|
% Change
(1)
|
|
Cash and cash
equivalents
|
$
1,895.5
|
$
2,236.7
|
$
(341.2)
|
(15.3) %
|
|
Inventories,
net
|
$
2,996.0
|
$
2,011.0
|
$
984.9
|
49.0 %
|
|
Total debt
(2)
|
$
1,850.4
|
$
433.5
|
$
1,416.9
|
326.9 %
|
|
|
|
1.
|
Column may not
recalculate due to rounding.
|
2.
|
Fiscal 2022 includes
debt with a carrying value of $1,481.9 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 $368.5
million and $433.5 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)
|
26 Weeks
Ended
|
$
Change
(1)
|
% Change
(1)
|
July 30,
2022
|
July 31,
2021
|
Share repurchases
(2)
|
$
361.1
|
$
152.7
|
$
208.5
|
136.5 %
|
Dividends paid
(3)
|
$
82.9
|
$
64.2
|
$
18.7
|
29.1 %
|
Gross capital
expenditures
|
$
167.7
|
$
167.7
|
$
—
|
— %
|
Net capital
expenditures (4)
|
$
138.4
|
$
149.3
|
$
(10.9)
|
(7.3) %
|
Principal paid in
connection with exchange of Convertible Senior Notes
(5)
|
$
200.0
|
$
—
|
$ 200.0
|
|
|
|
1.
|
Column may not
recalculate due to rounding.
|
2.
|
During the 13 weeks
ended, July 30, 2022, repurchased 3.9 million shares of its common
stock at an average price of $80.84 per share, for a total cost of
$318.9 million. For the 26 weeks ended July 30, 2022, repurchased
common stock totaling $361.1 million under its share repurchase
program, under which the Company has $1.5 billion remaining at July
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."
|
5.
|
During the 26 weeks
ended, July 30, 2022, exchanged $200 million aggregate principal
amount of Convertible Senior Notes and unwound the corresponding
portion of the convertible bond hedge and warrants for $200 million
of cash and 3.5 million shares of our common stock.
|
Quarterly Dividend
On August 22, 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 September 30,
2022 to stockholders of record at the close of business on
September 9, 2022.
Full Year 2022 Outlook
The Company's Full Year Outlook for 2022 is presented
below:
Metric
|
2022 Outlook
|
Earnings per diluted
share
|
●
$8.85 to 10.55
○
Based on approximately 102 million
diluted shares outstanding
○
Not dependent upon share repurchases
beyond the $361 million executed through the end of Q2
●
$10.00 to 12.00 on a non-GAAP basis,
which eliminates the impact of assumed share settlement of the
Convertible Senior Notes
○
Based on approximately 88 million diluted
shares outstanding
|
Comparable store
sales
|
●
Negative 6% 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 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
non-GAAP income before income taxes (percent of net sales),
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.
Furthermore, management believes that adjustments related to the
Convertible Senior Notes and convertible bond hedge provide a more
complete view of the economics of the instruments upon future
conversion. Management also uses these 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;
our belief that we are well-positioned to increase our market share
and deliver long-term sales and earnings growth; the health and
positioning of our inventory; 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: macroeconomic conditions,
including inflationary pressures, rising fuel prices, the risk of
recession, and supply chain and global labor market challenges,
whether due to COVID-19, the conflict in Ukraine or otherwise, and the effectiveness of
measures to mitigate such impact; 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 (including but not
limited to store closures); changes in consumer discretionary
spending; changes in consumer demand or shopping patterns and the
ability to identify new trends and have the right trending products
in stores and online; 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; 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, and tariffs, and
compliance with such laws and regulations; increasing labor costs;
limitations on the availability of attractive retail store sites;
whether we exchange additional Convertible Senior Notes;
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; risks associated with brick and mortar retail store
model, including the ability to optimize our store lease portfolio
and our distribution and fulfillment network; our ability to hire
and retain quality teammates, including store managers and sales
associates; negative reactions from customers, vendors and
shareholders regarding Company policy changes and advocacy efforts
related to social and political issues; 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
|
|
|
July 30,
2022
|
|
% of
Sales
|
|
July 31,
2021
|
|
% of
Sales
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
3,112,419
|
|
100.00 %
|
|
$
3,274,842
|
|
100.00 %
|
Cost of goods sold,
including occupancy and distribution costs
|
|
1,991,037
|
|
63.97
|
|
1,967,765
|
|
60.09
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
1,121,382
|
|
36.03
|
|
1,307,077
|
|
39.91
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
657,368
|
|
21.12
|
|
640,268
|
|
19.55
|
Pre-opening
expenses
|
|
3,836
|
|
0.12
|
|
3,256
|
|
0.10
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
460,178
|
|
14.79
|
|
663,553
|
|
20.26
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
25,494
|
|
0.82
|
|
13,801
|
|
0.42
|
Other expense
(income)
|
|
7,363
|
|
0.24
|
|
(6,795)
|
|
(0.21)
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
427,321
|
|
13.73
|
|
656,547
|
|
20.05
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
108,819
|
|
3.50
|
|
161,038
|
|
4.92
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
318,502
|
|
10.23 %
|
|
$
495,509
|
|
15.13 %
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
4.21
|
|
|
|
$
5.86
|
|
|
Diluted
|
|
$
3.25
|
|
|
|
$
4.53
|
|
|
|
|
|
|
|
|
|
|
|
NUMERATOR USED TO
COMPUTE EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
318,502
|
|
|
|
$
495,509
|
|
|
Diluted
|
|
$
326,494
|
|
|
|
$
495,509
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
75,610
|
|
|
|
84,512
|
|
|
Diluted
|
|
100,389
|
|
|
|
109,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME - UNAUDITED
|
(In thousands,
except per share data)
|
|
|
|
26 Weeks
Ended
|
|
|
July 30,
2022
|
|
% of
Sales
|
|
July 31,
2021
|
|
% of
Sales
(1)
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
5,812,624
|
|
100.0 %
|
|
$
6,193,561
|
|
100.0 %
|
|
Cost of goods sold,
including occupancy and distribution costs
|
|
3,706,528
|
|
63.77
|
|
3,797,857
|
|
61.32
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
2,106,096
|
|
36.23
|
|
2,395,704
|
|
38.68
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
1,272,661
|
|
21.89
|
|
1,248,562
|
|
20.16
|
|
Pre-opening
expenses
|
|
6,736
|
|
0.12
|
|
7,780
|
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
826,699
|
|
14.22
|
|
1,139,362
|
|
18.40
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
51,136
|
|
0.88
|
|
27,183
|
|
0.44
|
|
Other expense
(income)
|
|
16,385
|
|
0.28
|
|
(14,146)
|
|
(0.23)
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
759,178
|
|
13.06
|
|
1,126,325
|
|
18.19
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
180,117
|
|
3.10
|
|
269,060
|
|
4.34
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
579,061
|
|
9.96 %
|
|
$
857,265
|
|
13.84 %
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
7.63
|
|
|
|
$
10.13
|
|
|
|
Diluted
|
|
$
5.70
|
|
|
|
$
7.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NUMERATOR USED TO
COMPUTE EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
579,061
|
|
|
|
$
857,265
|
|
|
|
Diluted
|
|
$
595,262
|
|
|
|
$
857,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
75,895
|
|
|
|
84,631
|
|
|
|
Diluted
|
|
104,509
|
|
|
|
107,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Column does not add due to
rounding
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED BALANCE
SHEETS - UNAUDITED
|
(In
thousands)
|
|
|
|
July 30,
2022
|
|
July 31,
2021
|
|
January 29,
2022
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,895,521
|
|
$
2,236,733
|
|
$
2,643,205
|
Accounts receivable,
net
|
|
83,151
|
|
88,725
|
|
68,263
|
Income taxes
receivable
|
|
1,277
|
|
700
|
|
1,978
|
Inventories,
net
|
|
2,995,963
|
|
2,011,020
|
|
2,297,609
|
Prepaid expenses and
other current assets
|
|
100,761
|
|
81,758
|
|
95,601
|
Total current
assets
|
|
5,076,673
|
|
4,418,936
|
|
5,106,656
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,321,737
|
|
1,323,174
|
|
1,319,681
|
Operating lease
assets
|
|
2,071,084
|
|
2,083,010
|
|
2,044,819
|
Intangible assets,
net
|
|
85,553
|
|
88,157
|
|
86,767
|
Goodwill
|
|
245,857
|
|
245,857
|
|
245,857
|
Deferred income
taxes
|
|
55,873
|
|
34,672
|
|
35,024
|
Other
assets
|
|
208,498
|
|
192,358
|
|
202,872
|
TOTAL
ASSETS
|
|
$
9,065,275
|
|
$
8,386,164
|
|
$
9,041,676
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
1,489,321
|
|
$
1,213,449
|
|
$
1,281,322
|
Accrued
expenses
|
|
503,759
|
|
564,400
|
|
620,143
|
Operating lease
liabilities
|
|
482,195
|
|
468,667
|
|
480,318
|
Income taxes
payable
|
|
12,673
|
|
83,645
|
|
13,464
|
Deferred revenue and
other liabilities
|
|
294,003
|
|
237,143
|
|
317,433
|
Total current
liabilities
|
|
2,781,951
|
|
2,567,304
|
|
2,712,680
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
Revolving credit
borrowings
|
|
—
|
|
—
|
|
—
|
Senior
Notes
|
|
1,481,886
|
|
—
|
|
1,481,443
|
Convertible
Senior Notes
|
|
368,478
|
|
433,456
|
|
449,287
|
Long-term operating
lease liabilities
|
|
2,096,410
|
|
2,173,897
|
|
2,099,146
|
Other long-term
liabilities
|
|
163,041
|
|
206,132
|
|
197,534
|
Total long-term
liabilities
|
|
4,109,815
|
|
2,813,485
|
|
4,227,410
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Common
stock
|
|
522
|
|
605
|
|
520
|
Class B common
stock
|
|
236
|
|
237
|
|
236
|
Additional paid-in
capital
|
|
1,384,949
|
|
1,468,217
|
|
1,488,834
|
Retained
earnings
|
|
4,493,516
|
|
3,857,257
|
|
3,956,602
|
Accumulated
other comprehensive loss
|
|
(85)
|
|
(6)
|
|
(82)
|
Treasury stock, at
cost
|
|
(3,705,629)
|
|
(2,320,935)
|
|
(3,344,524)
|
Total stockholders'
equity
|
|
2,173,509
|
|
3,005,375
|
|
2,101,586
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
9,065,275
|
|
$
8,386,164
|
|
$
9,041,676
|
|
|
|
|
|
|
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS - UNAUDITED
|
(In
thousands)
|
|
|
|
26 Weeks
Ended
|
|
|
July 30,
2022
|
|
July 31,
2021
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
|
$
579,061
|
|
$
857,265
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
164,269
|
|
158,009
|
Amortization of
deferred financing fees and debt discount
|
|
2,601
|
|
14,963
|
Deferred income
taxes
|
|
8,416
|
|
16,803
|
Stock-based
compensation
|
|
26,694
|
|
25,414
|
Other, net
|
|
6,852
|
|
—
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(28,971)
|
|
(22,754)
|
Inventories
|
|
(698,354)
|
|
(57,452)
|
Prepaid expenses and
other assets
|
|
(9,430)
|
|
1,559
|
Accounts
payable
|
|
189,082
|
|
13,578
|
Accrued
expenses
|
|
(90,127)
|
|
35,853
|
Income taxes payable /
receivable
|
|
877
|
|
48,344
|
Construction
allowances provided by landlords
|
|
29,273
|
|
18,344
|
Deferred revenue and
other liabilities
|
|
(35,280)
|
|
(24,563)
|
Operating lease assets
and liabilities
|
|
(43,219)
|
|
(54,582)
|
Net cash provided by
operating activities
|
|
101,744
|
|
1,030,781
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
expenditures
|
|
(167,693)
|
|
(167,689)
|
Proceeds
from sale of other assets
|
|
14,261
|
|
9,671
|
Deposits and other
investing activities
|
|
(17,580)
|
|
(19,130)
|
Net cash used in
investing activities
|
|
(171,012)
|
|
(177,148)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Principal paid in
connection with exchange of Convertible Senior Notes
|
|
(200,000)
|
|
—
|
Payments on other long-term debt and finance lease
obligations
|
|
(361)
|
|
(385)
|
Proceeds from exercise
of stock options
|
|
13,997
|
|
20,648
|
Minimum tax
withholding requirements
|
|
(35,147)
|
|
(20,132)
|
Cash paid for treasury
stock
|
|
(392,882)
|
|
(152,687)
|
Cash dividends paid to
stockholders
|
|
(82,937)
|
|
(64,232)
|
Increase (decrease) in
bank overdraft
|
|
18,917
|
|
(58,222)
|
Net cash used in
financing activities
|
|
(678,413)
|
|
(275,010)
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
(3)
|
|
43
|
NET (DECREASE)
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
(747,684)
|
|
578,666
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
2,643,205
|
|
1,658,067
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
1,895,521
|
|
$
2,236,733
|
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 July
30, 2022
|
|
|
|
|
|
|
|
Net
income
|
After tax
interest from
Convertible
Senior Notes (2)
|
Numerator used
to compute
earnings per
diluted share
|
Weighted
average
diluted
shares
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
318,502
|
$
7,992
|
$
326,494
|
100,389
|
$
3.25
|
% of Net
Sales
|
10.23 %
|
0.26 %
|
10.49 %
|
|
|
Convertible Senior
Notes (1)
|
—
|
(7,992)
|
(7,992)
|
(13,881)
|
|
Non-GAAP
Basis
|
$
318,502
|
$
—
|
$
318,502
|
86,508
|
$
3.68
|
% of Net
Sales
|
10.23 %
|
— %
|
10.23 %
|
|
|
|
|
(1)
|
Adjustment eliminates
the impact of assumed share settlement of the Convertible Senior
Notes as required by the if-converted method. Due to the Company's
intent to settle the Convertible Senior 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 Senior 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.
|
|
26 Weeks Ended July
30, 2022
|
|
|
|
|
|
|
|
Net
income
|
After tax
interest from
Convertible
Senior Notes (2)
|
Numerator used
to compute
earnings per
diluted share
|
Weighted
average
diluted
shares
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
579,061
|
$
16,201
|
$
595,262
|
104,509
|
$
5.70
|
% of Net
Sales
|
9.96 %
|
0.28 %
|
10.24 %
|
|
|
Convertible Senior
Notes (1)
|
—
|
(16,201)
|
(16,201)
|
(15,481)
|
|
Non-GAAP
Basis
|
$
579,061
|
$
—
|
$
579,061
|
89,028
|
$
6.50
|
% of Net
Sales
|
9.96 %
|
— %
|
9.96 %
|
|
|
|
|
(1)
|
Adjustment eliminates
the impact of assumed share settlement of the Convertible Senior
Notes as required by the if-converted method. Due to the Company's
intent to settle the Convertible Senior 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 Senior 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 July
31, 2021
|
|
|
|
|
|
|
|
|
Income
from
operations
|
Interest
expense
|
Income
before
income taxes
|
Net
income
(2)
|
Diluted
shares
outstanding
during
period
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
663,553
|
$
13,801
|
$ 656,547
|
$ 495,509
|
109,271
|
$
4.53
|
% of Net
Sales
|
20.26 %
|
0.42 %
|
20.05 %
|
15.13 %
|
|
|
Convertible Senior
Notes (1)
|
—
|
(7,656)
|
7,656
|
5,665
|
(10,680)
|
|
Non-GAAP
Basis
|
$
663,553
|
$ 6,145
|
$ 664,203
|
$
501,174
|
98,591
|
$
5.08
|
% of Net
Sales
|
20.26 %
|
0.19 %
|
20.28 %
|
15.30 %
|
|
|
|
|
(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 note 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.
|
|
26 Weeks Ended July
31, 2021
|
|
|
|
|
|
|
|
|
Income
from
operations
|
Interest
expense
|
Income
before
income taxes
|
Net
income
(2)
|
Diluted
shares
outstanding
during
period
|
Earnings
per
diluted
share
|
GAAP Basis
|
$ 1,139,362
|
$
27,183
|
$
1,126,325
|
$ 857,265
|
107,641
|
$
7.96
|
% of Net
Sales
|
18.40 %
|
0.44 %
|
18.19 %
|
13.84 %
|
|
|
Convertible Senior
Notes (1)
|
—
|
(14,963)
|
14,963
|
11,073
|
(9,947)
|
|
Non-GAAP
Basis
|
$ 1,139,362
|
$
12,220
|
$
1,141,288
|
$ 868,338
|
97,694
|
$
8.89
|
% of Net
Sales
|
18.40 %
|
0.20 %
|
18.43 %
|
14.02 %
|
|
|
|
|
(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 note 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.
|
|
|
|
26 Weeks
Ended
|
|
|
July 30,
2022
|
|
July 31,
2021
|
Gross capital
expenditures
|
|
$
(167,693)
|
|
$
(167,689)
|
Construction allowances
provided by landlords
|
|
29,273
|
|
18,344
|
Net capital
expenditures
|
|
$
(138,420)
|
|
$
(149,345)
|
Reconciliation of
Non-GAAP 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)
|
Numerator
used to
compute
earnings
per diluted
share
|
Weighted
average
diluted
shares
|
Earnings
per
diluted
share
|
|
Net
income
|
After tax
interest
from
Convertible
Senior
Notes (2)
|
Numerator
used to
compute
earnings
per diluted
share
|
Weighted
average
diluted
shares
|
Earnings
per
diluted
share
|
GAAP Basis
|
$ 880
|
$
22
|
$
902
|
102
|
$ 8.85
|
|
$
1,056
|
$
22
|
$
1,078
|
102
|
$ 10.55
|
Convertible Senior
Notes(1)
|
—
|
(22)
|
(22)
|
(14)
|
|
|
—
|
(22)
|
(22)
|
(14)
|
|
Non-GAAP
Basis
|
$ 880
|
$
—
|
$
880
|
88
|
$ 10.00
|
|
$
1,056
|
$
—
|
$
1,056
|
88
|
$ 12.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjustment eliminates
the impact of assumed share settlement of the Convertible Senior
Notes as required by the if-converted method. Due to the Company's
intent to settle the Convertible Senior 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 Senior 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.