- Comparable store sales increased 6.5% on top of a 12.8%
increase in the third quarter of 2021, a 23.2% increase in the
third quarter of 2020 and a 6.0% increase in the third quarter of
2019
- Net sales of $3.0 billion
increased 7.7% versus the third quarter of 2021 and increased 50.8%
versus the third quarter of 2019
- Delivered earnings per diluted share of $2.45 and non-GAAP earnings per diluted share of
$2.60; Delivered pre-tax income as a
percentage of net sales of 10.3%, which is over two and a half
times our Q3 2019 GAAP rate and over three times our Q3 2019
non-GAAP rate
- Raises full year 2022 comparable store sales guidance to a
range of negative 3.0% to negative 1.5%, up from negative 6.0% to
negative 2.0% previously
- Raises full year 2022 earnings per diluted share guidance to
$10.50 to 11.10, up from $8.85 to 10.55 previously; Raises full year 2022
non-GAAP earnings per diluted share guidance to $11.50 to 12.10, up from $10.00 to 12.00 previously
"Our Q3 results
demonstrate the continued success and strength of our
transformational journey. Our
strategies continue to work as we reimagine the athlete experience
and offer a compelling and
differentiated assortment as well as a best-in-class omni-channel
ecosystem. I'd like to thank all our
teammates for their hard work and unwavering dedication to our
business."
Ed Stack, Executive Chairman
"We delivered an
exceptionally strong third quarter with our comps increasing 6.5%
and EBT margin of
10.3%, which was over three times our 2019 non-GAAP rate.
DICK'S is a growth company, and our Q3
sales results are powerful evidence of our sustainable growth
story. Because of our continued strong
performance, quality of inventory and the confidence we have in our
business, we are raising our full year
2022 outlook."
Lauren Hobart, President and Chief Executive
Officer
|
|
|
|
|
|
|
|
|
PITTSBURGH, Nov. 22,
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
third quarter ended October 29, 2022.
Third Quarter Operating
Results
(dollars in
millions, except per share data)
|
13 Weeks
Ended
|
Change
(3)
|
October 29,
2022
|
October 30,
2021
|
Net sales
|
$
2,959
|
$
2,748
|
$
211
|
7.7 %
|
Comparable store sales
(1)
|
6.5 %
|
12.8 %
|
|
Income before income
taxes (% of net sales)
|
10.3 %
|
14.8 %
|
(456) bps
|
Non-GAAP income before
income taxes (% of net sales) (2)
|
10.3 %
|
15.1 %
|
(484) bps
|
Net income
|
$
228
|
$
317
|
$
(88)
|
(28) %
|
Non-GAAP net income
(2)
|
$
228
|
$
322
|
$
(94)
|
(29) %
|
Earnings per diluted
share
|
$
2.45
|
$
2.78
|
$ (0.33)
|
(12) %
|
Non-GAAP earnings per
diluted share (2)
|
$
2.60
|
$
3.19
|
$ (0.59)
|
(18) %
|
Year-to-Date Operating
Results
(dollars in
millions, except per share data)
|
39 Weeks
Ended
|
Change
(3)
|
October 29,
2022
|
October 30,
2021
|
Net sales
|
$
8,771
|
$
8,941
|
$
(170)
|
(1.9) %
|
Comparable store sales
(1)
|
(2.6) %
|
37.5 %
|
|
Income before income
taxes (% of net sales)
|
12.1 %
|
17.2 %
|
(504) bps
|
Non-GAAP income before
income taxes (% of net sales) (2)
|
12.1 %
|
17.4 %
|
(529) bps
|
Net income
|
$
808
|
$
1,174
|
$
(366)
|
(31) %
|
Non-GAAP net income
(2)
|
$
808
|
$
1,191
|
$
(383)
|
(32) %
|
Earnings per diluted
share
|
$
8.17
|
$
10.70
|
$ (2.53)
|
(24) %
|
Non-GAAP earnings per
diluted share (2)
|
$
9.11
|
$
12.06
|
$ (2.95)
|
(24) %
|
Balance
Sheet
(dollars in millions)
|
As of
October 29,
2022
|
As of
October 30,
2021
|
$
Change
(3)
|
% Change
(3)
|
Cash and cash
equivalents
|
$
1,438
|
$
1,373
|
$
65
|
5 %
|
Inventories,
net
|
$
3,361
|
$
2,490
|
$
871
|
35 %
|
Total debt
(4)
|
$
1,634
|
$
441
|
$
1,193
|
270 %
|
Capital
Allocation
(dollars in
millions)
|
39 Weeks
Ended
|
$
Change
(3)
|
% Change
(3)
|
October 29,
2022
|
October 30,
2021
|
Share repurchases
(5)
|
$
361
|
$
426
|
$
(65)
|
(15) %
|
Dividends paid
(6)
|
$
124
|
$
567
|
$
(443)
|
(78) %
|
Gross capital
expenditures
|
$
274
|
$
231
|
$
43
|
19 %
|
Net capital
expenditures (2)
|
$
238
|
$
203
|
$
35
|
17 %
|
Principal paid in
connection with exchange of Convertible
Senior Notes (7)
|
$
421
|
$
—
|
$
421
|
|
|
|
Notes
|
|
|
|
1.
|
Beginning in fiscal
2022, the Company revised its method for calculating comparable
store sales by including relocated store locations. Prior year
fiscal 2021 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. Comparable store sales information prior to
fiscal 2021 has not been revised to reflect this change in
methodology.
|
2.
|
For additional
information regarding non-GAAP measures, 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."
|
3.
|
Column may not
recalculate due to rounding.
|
4.
|
Fiscal 2022 includes
debt with a carrying value of $1,482 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 $152
million and $441 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.
|
5.
|
During the 39 weeks
ended October 29, 2022, the Company repurchased 4.4 million shares
of its common stock at an average price of $82.80 per share, for a
total cost of $361 million under its share repurchase program. The
Company has $1.5 billion remaining under its authorization as of
October 29, 2022. The Company also paid $31.7 million during
fiscal 2022 for shares repurchased during 2021.
|
6.
|
During the third
quarter of 2022, the Company declared and paid quarterly dividends
of $0.4875 per share on the Company's Common Stock and Class B
Common Stock. During the third quarter of 2021, the Company
declared and paid quarterly dividends of $0.4375 and a special
dividend in the amount of $5.50 per share on the Company's Common
Stock and Class B Common Stock.
|
7.
|
During the 39 weeks
ended, October 29, 2022, the Company exchanged $421 million
aggregate principal amount of Convertible Senior Notes and unwound
the corresponding portion of the convertible bond hedge and
warrants for $421 million of cash and 7.8 million shares of our
common stock.
|
Quarterly Dividend
On November 21, 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 December 30,
2022 to stockholders of record at the close of business on
December 9, 2022.
Full Year 2022 Outlook
The Company's Full Year Outlook for 2022 is presented
below:
Metric
|
2022 Outlook
|
Earnings per diluted
share
|
•
$10.50 to 11.10
○ Based
on approximately 99 million diluted shares outstanding
○ Not
dependent upon share repurchases beyond the $361 million executed
through the end of Q3
•
$11.50 to 12.10 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 3.0% to negative
1.5%
|
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 third
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, elevated 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; 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; changes in the competitive market and
competition amongst retailers, including an increase in promotional
activity; 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 size of strategic investments and the timing and success of
those investments; inventory turnover; 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
|
|
|
October 29,
2022 (1)
|
|
% of
Sales
(1)
|
|
October 30,
2021
|
|
% of
Sales
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
2,958,861
|
|
100.00 %
|
|
$
2,747,647
|
|
100.00 %
|
Cost of goods sold,
including occupancy and
distribution costs
|
|
1,946,438
|
|
65.78
|
|
1,691,071
|
|
61.55
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
1,012,423
|
|
34.22
|
|
1,056,576
|
|
38.45
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
679,747
|
|
22.97
|
|
631,943
|
|
23.00
|
Pre-opening
expenses
|
|
7,212
|
|
0.24
|
|
4,765
|
|
0.17
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
325,464
|
|
11.00
|
|
419,868
|
|
15.28
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
26,131
|
|
0.88
|
|
13,789
|
|
0.50
|
Other income
|
|
(4,826)
|
|
(0.16)
|
|
(1,748)
|
|
(0.06)
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
304,159
|
|
10.28
|
|
407,827
|
|
14.84
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
75,703
|
|
2.56
|
|
91,314
|
|
3.32
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
228,456
|
|
7.72 %
|
|
$
316,513
|
|
11.52 %
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
2.94
|
|
|
|
$
3.79
|
|
|
Diluted
|
|
$
2.45
|
|
|
|
$
2.78
|
|
|
|
|
|
|
|
|
|
|
|
NUMERATOR USED TO
COMPUTE EARNINGS PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
228,456
|
|
|
|
$
316,513
|
|
|
Diluted
|
|
$
236,928
|
|
|
|
$
316,513
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON
SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
77,789
|
|
|
|
83,537
|
|
|
Diluted
|
|
96,681
|
|
|
|
113,664
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
39 Weeks
Ended
|
|
|
October 29,
2022 (1)
|
|
% of
Sales
(1)
|
|
October 30,
2021
|
|
% of
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
8,771,485
|
|
100.0 %
|
|
$
8,941,208
|
|
100.0 %
|
|
Cost of goods sold,
including occupancy and
distribution costs
|
|
5,652,966
|
|
64.45
|
|
5,488,928
|
|
61.39
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
3,118,519
|
|
35.55
|
|
3,452,280
|
|
38.61
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
1,952,408
|
|
22.26
|
|
1,880,505
|
|
21.03
|
|
Pre-opening
expenses
|
|
13,948
|
|
0.16
|
|
12,545
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
1,152,163
|
|
13.14
|
|
1,559,230
|
|
17.44
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
77,267
|
|
0.88
|
|
40,971
|
|
0.46
|
|
Other expense
(income)
|
|
11,559
|
|
0.13
|
|
(15,893)
|
|
(0.18)
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
1,063,337
|
|
12.12
|
|
1,534,152
|
|
17.16
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
255,820
|
|
2.92
|
|
360,374
|
|
4.03
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
807,517
|
|
9.21 %
|
|
$
1,173,778
|
|
13.13 %
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
10.55
|
|
|
|
$
13.93
|
|
|
|
Diluted
|
|
$
8.17
|
|
|
|
$
10.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NUMERATOR USED TO
COMPUTE EARNINGS PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
807,517
|
|
|
|
$
1,173,778
|
|
|
|
Diluted
|
|
$
832,190
|
|
|
|
$
1,173,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON
SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
76,527
|
|
|
|
84,266
|
|
|
|
Diluted
|
|
101,900
|
|
|
|
109,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Column does not add due to
rounding
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS - UNAUDITED (In thousands)
|
|
|
|
October 29,
2022
|
|
October 30,
2021
|
|
January 29,
2022
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,437,997
|
|
$
1,372,892
|
|
$
2,643,205
|
Accounts receivable,
net
|
|
87,191
|
|
89,479
|
|
68,263
|
Income taxes
receivable
|
|
4,082
|
|
683
|
|
1,978
|
Inventories,
net
|
|
3,361,057
|
|
2,490,438
|
|
2,297,609
|
Prepaid expenses and
other current assets
|
|
96,135
|
|
92,673
|
|
95,601
|
Total current
assets
|
|
4,986,462
|
|
4,046,165
|
|
5,106,656
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,342,786
|
|
1,314,567
|
|
1,319,681
|
Operating lease
assets
|
|
2,025,149
|
|
2,070,135
|
|
2,044,819
|
Intangible assets,
net
|
|
84,946
|
|
87,195
|
|
86,767
|
Goodwill
|
|
245,857
|
|
245,857
|
|
245,857
|
Deferred income
taxes
|
|
58,945
|
|
42,862
|
|
35,024
|
Other
assets
|
|
212,455
|
|
192,498
|
|
202,872
|
TOTAL
ASSETS
|
|
$
8,956,600
|
|
$
7,999,279
|
|
$
9,041,676
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
1,473,424
|
|
$
1,399,716
|
|
$
1,281,322
|
Accrued
expenses
|
|
500,246
|
|
522,010
|
|
620,143
|
Operating lease
liabilities
|
|
487,119
|
|
478,674
|
|
480,318
|
Income taxes
payable
|
|
32,664
|
|
28,430
|
|
13,464
|
Deferred revenue and
other liabilities
|
|
268,677
|
|
239,472
|
|
317,433
|
Total current
liabilities
|
|
2,762,130
|
|
2,668,302
|
|
2,712,680
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
Revolving credit
borrowings
|
|
—
|
|
—
|
|
—
|
Senior
Notes
|
|
1,482,110
|
|
—
|
|
1,481,443
|
Convertible
Senior Notes
|
|
152,006
|
|
441,186
|
|
449,287
|
Long-term operating
lease liabilities
|
|
2,026,774
|
|
2,135,515
|
|
2,099,146
|
Other long-term
liabilities
|
|
156,408
|
|
223,459
|
|
197,534
|
Total long-term
liabilities
|
|
3,817,298
|
|
2,800,160
|
|
4,227,410
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Common
stock
|
|
570
|
|
586
|
|
520
|
Class B common
stock
|
|
236
|
|
237
|
|
236
|
Additional paid-in
capital
|
|
1,399,694
|
|
1,476,701
|
|
1,488,834
|
Retained
earnings
|
|
4,682,663
|
|
3,647,621
|
|
3,956,602
|
Accumulated other
comprehensive (loss) income
|
|
(362)
|
|
9
|
|
(82)
|
Treasury stock, at
cost
|
|
(3,705,629)
|
|
(2,594,337)
|
|
(3,344,524)
|
Total stockholders'
equity
|
|
2,377,172
|
|
2,530,817
|
|
2,101,586
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
8,956,600
|
|
$
7,999,279
|
|
$
9,041,676
|
DICK'S SPORTING
GOODS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS
OF CASH FLOWS - UNAUDITED (In thousands)
|
|
|
|
39 Weeks
Ended
|
|
|
October 29,
2022
|
|
October 30,
2021
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
|
|
$
807,517
|
|
$
1,173,778
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
250,522
|
|
237,666
|
Amortization of
deferred financing fees and debt discount
|
|
3,558
|
|
22,693
|
Deferred income
taxes
|
|
5,344
|
|
8,613
|
Stock-based
compensation
|
|
37,579
|
|
39,380
|
Other, net
|
|
15,879
|
|
—
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(36,699)
|
|
(20,655)
|
Inventories
|
|
(1,063,448)
|
|
(536,870)
|
Prepaid expenses and
other assets
|
|
(936)
|
|
(7,995)
|
Accounts
payable
|
|
178,633
|
|
194,084
|
Accrued
expenses
|
|
(94,177)
|
|
(13,918)
|
Income taxes payable /
receivable
|
|
19,023
|
|
(6,854)
|
Construction
allowances provided by landlords
|
|
36,100
|
|
27,677
|
Deferred revenue and
other liabilities
|
|
(58,613)
|
|
(30,219)
|
Operating lease assets
and liabilities
|
|
(64,663)
|
|
(80,734)
|
Net cash provided by
operating activities
|
|
35,619
|
|
1,006,646
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
expenditures
|
|
(274,307)
|
|
(231,087)
|
Proceeds from sale of other assets
|
|
14,261
|
|
9,671
|
Deposits and other
investing activities
|
|
(32,885)
|
|
(19,130)
|
Net cash used in
investing activities
|
|
(292,931)
|
|
(240,546)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Principal paid in
connection with exchange of Convertible Senior Notes
|
|
(420,558)
|
|
—
|
Payments on finance lease obligations
|
|
(548)
|
|
(553)
|
Proceeds from exercise
of stock options
|
|
19,953
|
|
24,930
|
Minimum tax
withholding requirements
|
|
(43,227)
|
|
(29,893)
|
Cash paid for treasury
stock
|
|
(392,882)
|
|
(426,111)
|
Cash dividends paid to
stockholders
|
|
(123,823)
|
|
(567,245)
|
Increase (decrease) in
bank overdraft
|
|
13,469
|
|
(52,461)
|
Net cash used in
financing activities
|
|
(947,616)
|
|
(1,051,333)
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
(280)
|
|
58
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
|
(1,205,208)
|
|
(285,175)
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
2,643,205
|
|
1,658,067
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
1,437,997
|
|
$
1,372,892
|
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
October 29, 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
|
$
228,456
|
$
8,472
|
$
236,928
|
96,681
|
$
2.45
|
% of Net
Sales
|
7.72 %
|
0.29 %
|
8.01 %
|
|
|
Convertible Senior
Notes (1)
|
—
|
(8,472)
|
(8,472)
|
(8,825)
|
|
Non-GAAP
Basis
|
$
228,456
|
$
—
|
$
228,456
|
87,856
|
$
2.60
|
% of Net
Sales
|
7.72 %
|
— %
|
7.72 %
|
|
|
(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.
|
|
39 Weeks Ended
October 29, 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
|
$
807,517
|
$
24,673
|
$
832,190
|
101,900
|
$
8.17
|
% of Net
Sales
|
9.21 %
|
0.28 %
|
9.49 %
|
|
|
Convertible Senior
Notes (1)
|
—
|
(24,673)
|
(24,673)
|
(13,262)
|
|
Non-GAAP
Basis
|
$
807,517
|
$
—
|
$
807,517
|
88,638
|
$
9.11
|
% of Net
Sales
|
9.21 %
|
— %
|
9.21 %
|
|
|
(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
October 30, 2021
|
|
|
|
|
|
|
|
|
Income
from
operations
|
Interest
expense
|
Income
before
income taxes
|
Net income (2)
|
Diluted
shares
outstanding
during
period
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
419,868
|
$
13,789
|
$ 407,827
|
$
316,513
|
113,664
|
$
2.78
|
% of Net
Sales
|
15.28 %
|
0.50 %
|
14.84 %
|
11.52 %
|
|
|
Convertible Senior
Notes (1)
|
—
|
(7,731)
|
7,731
|
5,720
|
(12,794)
|
|
Non-GAAP
Basis
|
$
419,868
|
$ 6,058
|
$ 415,558
|
$ 322,233
|
100,870
|
$
3.19
|
% of Net
Sales
|
15.28 %
|
0.22 %
|
15.12 %
|
11.73 %
|
|
|
(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.
|
|
39 Weeks Ended
October 30, 2021
|
|
|
|
|
|
|
|
|
Income
from
operations
|
Interest
expense
|
Income
before
income taxes
|
Net income (2)
|
Diluted
shares
outstanding
during
period
|
Earnings
per
diluted
share
|
GAAP Basis
|
$ 1,559,230
|
$
40,971
|
$
1,534,152
|
$
1,173,778
|
109,648
|
$
10.70
|
% of Net
Sales
|
17.44 %
|
0.46 %
|
17.16 %
|
13.13 %
|
|
|
Convertible Senior
Notes (1)
|
—
|
(22,693)
|
22,693
|
16,793
|
(10,896)
|
|
Non-GAAP
Basis
|
$ 1,559,230
|
$
18,278
|
$
1,556,845
|
$
1,190,571
|
98,752
|
$
12.06
|
% of Net
Sales
|
17.44 %
|
0.20 %
|
17.41 %
|
13.32 %
|
|
|
(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.
|
|
13 Weeks Ended
November 2, 2019
|
|
|
|
|
|
|
|
|
Selling, general
and
administrative
expenses
|
Income
from
operations
|
Gain on sale
of
subsidiarie
s
|
Income
before
income taxes
|
Net
income (4)
|
Earnings
per
diluted
share
|
GAAP Basis
|
$
531,704
|
$ 45,625
|
$
(33,779)
|
$
77,146
|
$
57,584
|
$
0.66
|
% of Net
Sales
|
27.10 %
|
2.33 %
|
(1.72) %
|
3.93 %
|
2.93 %
|
|
Gain on sale of
subsidiaries (1)
|
—
|
—
|
33,779
|
(33,779)
|
(24,996)
|
|
Hunt restructuring
charges (2)
|
(8,938)
|
8,938
|
—
|
8,938
|
6,614
|
|
Non-cash asset
impairment (3)
|
(7,630)
|
7,630
|
—
|
7,630
|
5,646
|
|
Non-GAAP
Basis
|
$
515,136
|
$ 62,193
|
$
—
|
$
59,935
|
$
44,848
|
$
0.52
|
% of Net
Sales
|
26.25 %
|
3.17 %
|
— %
|
3.05 %
|
2.29 %
|
|
(1)
|
Gain on sale of Blue
Sombrero and Affinity Sports subsidiaries.
|
(2)
|
Charge related to the
Company's exit from eight Field & Stream stores, which were
subleased to Sportsman's Warehouse.
|
(3)
|
Non-cash impairment
charge to reduce the carrying value of a corporate aircraft held
for sale to its fair market value.
|
(4)
|
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.
|
|
|
|
39 Weeks
Ended
|
|
|
October 29,
2022
|
|
October 30,
2021
|
Gross capital
expenditures
|
|
$
(274,307)
|
|
$
(231,087)
|
Construction allowances
provided by landlords
|
|
36,100
|
|
27,677
|
Net capital
expenditures
|
|
$
(238,207)
|
|
$
(203,410)
|
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
|
$
1,015
|
$
26
|
$
1,041
|
99
|
$ 10.50
|
|
$
1,070
|
$
26
|
$
1,096
|
99
|
$
11.10
|
Convertible Senior
Notes (1)
|
—
|
(26)
|
(26)
|
(11)
|
|
|
—
|
(26)
|
(26)
|
(11)
|
|
Non-GAAP
Basis
|
$
1,015
|
$
—
|
$
1,015
|
88
|
$ 11.50
|
|
$
1,070
|
$
—
|
$
1,070
|
88
|
$ 12.10
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.