Dick’s Sporting Goods, Inc. net income for the first quarter ended May 3, 2003 increased 41% to $6.7 million, and increased 17% to $0.28 per diluted share, compared to $4.7 million or $0.24 per diluted share, respectively, for the quarter ended May 4, 2002. Earnings per share increased at a lower percentage than net income due to more shares being outstanding this year as a result of the Company’s IPO last October. For the quarter, total sales increased 10% to $304.7 million. Comparable store sales decreased 0.9%.

Net income for the first quarter increased 37% to $6.7 million and earnings per share increased 27% to $0.28 per diluted share, compared to pro- forma net income of $4.9 million or $0.22 per diluted share in the first quarter of last year.

Prior period 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.

“Sales in the first quarter started off below our plan due to the extended winter weather throughout the majority of our markets, as we discussed on our March 13 conference call. However, as the weather warmed up, we saw the expected strength in our sales results, which continued through the end of the quarter. We also were able to continue the growth of our gross margin rates, resulting in earnings in excess of our previous guidance,” said Edward W. Stack, Chairman and CEO.

The Company’s current outlook for the full year and second quarter of 2003 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.

For Second Quarter 2003, the company expects:

  • To open one store during the second quarter, in
    East Hanover, NJ.

  • Net income to be $14.3-$14.8 million, compared to last
    year’s pro-forma net income of $11.9 million (or $11.7 million on a
    GAAP basis) in the second quarter, an increase of 20-24% (or an
    increase of 22-26% on a GAAP basis).

  • EPS for the second quarter to be $0.58-0.60 per diluted share, a 9-13% increase over pro-forma EPS (or a decrease of 3% to even on a GAAP basis) in the prior year’s second quarter of $0.53 (or $0.60 on a GAAP basis). There will be more shares outstanding in the second quarter of this year as compared to last year due to the Company’s
    initial public offering in October 2002.

For the full year, the company reaffirmed the outlook as provided on March 13, 2003.

  • The Company expects to open 20 stores during the year.
  • Comparable sales are expected to increase approximately 2-3%.
  • Net income is expected to be $48.0 million, compared to last year’s pro-forma net income of $38.6 million (or $38.3 million on a GAAP basis), an increase of 24% (or an increase of 25% on a GAAP basis).
  • Based on an estimated 24.6 million diluted shares outstanding, the Company expects to report EPS for the full year of $1.95 per diluted share, compared to pro-forma EPS of $1.72 in the prior year (or $1.87 on a GAAP basis). 
    
                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
                  (Dollars in thousands, except per share data)

                                                                   Pro-Forma
                                                                     (1)
                                                   GAAP             13 Weeks
                                              13 Weeks Ended         Ended
                                           --------------------   ----------
                                            May 3,       May 4,      May 4,
                                             2003        2002        2002
                                           ---------   ---------  ----------
    Net sales                               $304,728    $276,635    $276,635

    Cost of goods sold, including
     occupancy and
    distribution costs                       221,880     206,595     206,595
                                           ---------   ---------   ---------
      GROSS PROFIT                            82,848      70,040      70,040

    Selling, general and administrative
     expenses                                 68,802      59,069      59,069

    Pre-opening expenses                       2,456       2,235       2,235
                                           ---------    --------    --------
      INCOME FROM OPERATIONS                  11,590       8,736       8,736

    Interest expense, net                        506         854         636
                                           ---------    --------    --------
      INCOME BEFORE INCOME TAXES              11,084       7,882       8,100

    Provision for income taxes                 4,434       3,153       3,240
                                           ---------    --------    --------
      NET INCOME                              $6,650      $4,729      $4,860