Dick's Sporting Goods, Inc. reported net income for the fourth quarter ended January 31, 2004 increased 36% to $26.0 million and earnings per share increased 22% to $1.00 per diluted share as compared to net income of $19.1 million and earnings per share of $0.82 per diluted share for the quarter ended February 1, 2003. Total sales for the quarter increased 20% to $474.4 million. Comparable store sales increased 4.6%.
During the fourth quarter, the Company opened one store, in Allentown, PA, bringing the total for the year to 22 new stores. As of January 31, 2004, the Company operated 163 stores in 27 states.
Full Year Results
Net income for the year ended January 31, 2004 increased 38% to $52.8 million and earnings per share increased 12% to $2.10 per diluted share as compared to net income of $38.3 million and earnings per share of $1.87 per diluted share for the year ended February 1, 2003. Total sales for the year ended January 31, 2004 increased 16% to $1,470.8 million. Comparable store sales increased 2.1%.
Net income increased 37% and earnings per share increased 22% compared to last year's pro-forma net income of $38.6 million or $1.72 per diluted share. Prior year pro-forma results include a reduction of interest expense and an increase in diluted shares as if the Company had consummated its initial public offering at the beginning of the first quarter last year rather than on the October 15, 2002 effective date.
“We are very pleased to be able to post another record performance for the 4th quarter and the year in total,” said Edward W. Stack, Chairman and CEO. “Our associates delivered above-plan sales and increased operating margin against the difficult comparison of last year. We managed inventory effectively with average inventory per square foot declining 6% compared to last year. As a result, Dick's is well positioned as we enter 2004.”
2004 Outlook
The Company's current outlook for 2004 is based on current expectations and includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act as described later in this release. Although the Company believes that comments reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.
- Based on an estimated 26.6 million fully-diluted shares outstanding,
the Company expects to report EPS for the full year of $2.47 – $2.50
per diluted share, an 18% – 19% increase over last year's EPS of $2.10. - Net income is expected to be $65.7 – $66.5 million, an increase of
24% – 26% over last year's net income of $52.8 million. - Comparable store sales are expected to increase approximately 3%.
- The Company expects to open 25 new stores during the year.
First Quarter 2004
- Based on an estimated 26.4 million fully-diluted shares outstanding,
EPS for the first quarter is expected to be $0.35 – $0.37 per diluted
share, a 25% – 32% increase over the prior year's first quarter EPS of
$0.28. - Net income is expected to be $9.2 – $9.8 million, an increase of
37% – 46% over last year's net income of $6.7 million in the first
quarter. - Comparable store sales are expected to increase approximately 4% – 5%.
- The Company expects to open six new stores during the first quarter:
Youngstown, OH; Myrtle Beach, SC; Indianapolis, IN (3 stores); and
Hartford, CT (the Company's third store in the Hartford market).
Full Year 2004
The earnings and the outlook presented in this press release do not give effect to the two-for-one stock split in the form of a stock dividend that we announced on February 10, 2004. We expect this stock split dividend to be payable on or about April 5, 2004 to stockholders of record on March 19, 2004.
DICK'S SPORTING GOODS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
GAAP
13 Weeks Ended
-----------------------------
January 31, February 1,
2004 2003
----------- -----------
Net sales $474,432 $395,209
Cost of goods sold, including
occupancy and distribution costs 334,927 280,339
----------- -----------
GROSS PROFIT 139,505 114,870
Selling, general and administrative
expenses 95,590 79,748
Pre-opening expenses 316 692
----------- -----------
INCOME FROM OPERATIONS 43,599 34,430
(Gain) on sale / loss on write-down
of non-cash investment - 2,447
Interest expense, net 285 217
----------- -----------
INCOME BEFORE INCOME TAXES 43,314 31,766
Provision for income taxes 17,326 12,706
----------- -----------
NET INCOME $25,988 $19,060
=========== ===========
EARNINGS PER COMMON SHARE:
Basic $1.11 $0.96
Diluted $1.00 $0.82
DICK'S SPORTING GOODS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
GAAP Pro-Forma
Year Ended Year Ended
------------------------ ------------
January 31, February 1, February 1,
2004 2003 2003
----------- ----------- -----------
Net sales $1,470,845 $1,272,584 $1,272,584
Cost of goods sold, including
occupancy and distribution costs 1,063,106 935,192 935,192
----------- ----------- -----------
GROSS PROFIT 407,739 337,392 337,392
Selling, general and administrative
expenses 314,885 262,755 262,755
Pre-opening expenses 6,528 5,553 5,553
----------- ----------- -----------
INCOME FROM OPERATIONS 86,326 69,084 69,084
(Gain) on sale / loss on write-down of
non-cash investment (3,536) 2,447 2,447
Interest expense, net 1,831 2,864 2,242
----------- ----------- -----------
INCOME BEFORE INCOME TAXES 88,031 63,773 64,395
Provision for income taxes 35,212 25,509 25,758
----------- ----------- -----------
NET INCOME $52,819 $38,264 $38,637
=========== =========== ===========
EARNINGS PER COMMON SHARE:
Basic $2.36 $2.16 $1.96
Diluted $2.10 $1.87 $1.72
