Dick's Sporting Goods' net income increased 56% to $4.2 million and diluted earnings per share increased 60% to 8 cents for the third quarter of 2005. This compares to prior year net income of $2.7 million and earnings per share of 5 cents, excluding merger integration and store closing costs. Net income increased $6.2 million, to $4.2 million and diluted earnings per share increased $0.12, to $0.08, as compared to the prior year net loss of $2.0 million, and loss per share of $(0.04), including merger integration and store closing costs.
Net sales for the quarter increased 8%, to $582.7 million. Comparable store sales increased 2.9%. The former Galyan's stores will be included in the comparable store base beginning in the second quarter of fiscal 2006.
During the third quarter, the Company opened 16 stores, relocated three stores and remodeled one store, which completes the new store openings for the year. The stores that opened in the third quarter include: Natick, MA; Plymouth, MA; Taunton, MA; Leominster, MA; Concord, NH; Keene, NH; Rutland, VT; Webster, NY; Butler, PA; Columbus, OH; Lexington, KY; Morgantown, WV; Charlotte, NC; Charleston, SC; Loveland, CO and Larkridge, CO. Three of the 16 new stores were the two-level prototype (Lexington, KY; Charlotte, NC and Natick, MA). The relocated stores were in Cleveland, OH; Clarksville, IN and Plainfield, IN.
As of October 29, 2005, the Company operated 255 stores, with approximately 14.7 million square feet, in 34 states.
“We are pleased to report a solid third quarter as measured by a 2.9% comparable store sales increase and earnings improvement at the high end of our guidance. This was all accomplished during a busy quarter when we opened 16 stores and relocated three stores,” said Edward W. Stack, Chairman and CEO.
For the 39 weeks ended October 29, 2005, net income, excluding merger integration and store closing costs and gain on sale of investment, increased 115% to $40.5 million, and diluted earnings per share increased 108% to $0.75, as compared to prior year proforma, combined company net income of $18.8 million, and diluted earnings per share of $0.36, excluding merger integration and store closing costs.
For the 39 weeks ended October 29, 2005, net income, including merger integration and store closing costs and gain on sale of investment, increased 35% to $19.0 million, and diluted earnings per share increased 30% to $0.35 as compared to prior year proforma, combined company net income of $14.1 million, and diluted earnings per share of $0.27, including merger integration and store closing costs.
Net sales for the 39 weeks ended October 29, 2005 increased 34% to $1,775.5 as compared to prior year GAAP net sales of $1,321.4. Comparable store sales increased 2.1%.
The Company's current outlook for 2005 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.
Full Year 2005
- We continue to anticipate reporting diluted earnings per share of
$1.70 – 1.75. This represents an approximate 48% increase over
proforma, combined company earnings per share for the full year 2004 of
$1.17, excluding merger integration and store closing costs and gain on
sale of investment. Including merger integration and store closing
costs, earnings guidance is $1.27 – 1.32 per share. Guidance is based
on an estimated 54 million shares outstanding. - Comparable store sales are expected to increase approximately 2%. The
converted Galyan's stores will be included in the comparable store base
in the second quarter of fiscal 2006. - Our 2005 full-year EPS guidance excludes the impact of expensing stock
options as the SEC has amended the compliance date for SFAS 123R. We
are planning to implement the provisions of SFAS 123R beginning in
fiscal 2006, the estimated impact of which is an after-tax expense of
$0.27 per share.Fourth Quarter 2005
- Based on an estimated 54 million shares outstanding, the Company
anticipates reporting an approximate 20% increase in earnings per
diluted share to $0.95 – $1.00 per share, from fourth quarter 2004
earnings per diluted share of $0.81, excluding merger integration and
store closing costs and gain on sale of investment. - Comparable store sales are expected to increase approximately 1-2%.
DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Amounts in thousands, except per share data)
13 Weeks Ended 39 Weeks Ended
------------------ ----------------------
Oct. 29 Oct. 30 Oct. 29 Oct. 30
2005 2004 2005 2004
-------- -------- ---------- ----------
Net sales $582,665 $541,009 $1,775,480 $1,321,351
Cost of goods sold, including
occupancy and distribution
costs 429,211 402,758 1,295,638 961,178
-------- -------- ---------- ----------
GROSS PROFIT 153,454 138,251 479,842 360,173
Selling, general and
administrative expenses 136,564 124,832 392,282 292,863
Pre-opening expenses 6,022 5,483 10,259 11,195
Merger integration and store
closing costs - 7,742 37,790 7,793
-------- -------- ---------- ----------
INCOME FROM OPERATIONS 10,868 194 39,511 48,322
Gain on sale of investment - - (1,844) -
Interest expense, net 3,896 3,455 9,771 5,057
Other income - - - (1,000)
-------- -------- ---------- ----------
INCOME (LOSS) BEFORE INCOME
TAXES 6,972 (3,261) 31,584 44,265
Provision (benefit) for income
taxes 2,789 (1,305) 12,634 17,705
-------- -------- ---------- ----------
NET INCOME (LOSS) $4,183 $(1,956) $18,950 $26,560
======== ======== ========== ==========
EARNINGS (LOSS) PER COMMON
SHARE:
Basic $0.08 $(0.04) $0.38 $0.56
Diluted $0.08 $(0.04) $0.35 $0.50
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic 50,120 48,251 49,652 47,755
Diluted 53,947 48,251 53,917 52,731
