The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Business Wire

Hibbett Reports Third Quarter Fiscal 2013 Results

Friday, November 16, 2012

Hibbett Reports Third Quarter Fiscal 2013 Results07:00 EST Friday, November 16, 2012 BIRMINGHAM, Ala. (Business Wire) -- Hibbett Sports, Inc. (NASDAQ/GS: HIBB): Achieves 12th Consecutive Quarter of Comparable Store Sales IncreaseComparable Store Sales up 6.4% on Strong Back-to-School SalesEPS Increases 20%Raises Fiscal 2013 Guidance Hibbett Sports, Inc. (NASDAQ/GS: HIBB), a sporting goods retailer, today announced results for the third quarter ended October 27, 2012. Third Quarter Results Net sales for the 13-week period ended October 27, 2012, increased 9.6% to $202.9 million compared with $185.2 million for the 13-week period ended October 29, 2011. Comparable store sales increased 6.4%. Gross profit for the 13-week period ended October 27, 2012, increased 11.2% to $75.4 million from $67.8 million for the 13-week period ended October 29, 2011. As a percent to net sales, gross profit improved to 37.2% compared to 36.6% for the 13-week period ended October 29, 2011. The improvement as a percent of net sales was due to improved product margin and leveraging store occupancy costs. Store operating, selling and administrative expenses improved to 20.7% of net sales for the 13-week period ended October 27, 2012, compared to 21.3% of net sales for the 13-week period ended October 29, 2011. This was primarily attributed to the leveraging of store level costs and decreased debit card transaction fees. Net income for the 13-week period ended October 27, 2012, increased 18.8% to $19.0 million compared with $16.0 million for the 13-week period ended October 29, 2011. Earnings per diluted share increased 20.3% to $0.71 compared with $0.59 for the 13-week period ended October 29, 2011. Fiscal Year to Date Results Net sales for the 39-week period ended October 27, 2012, increased 10.9% to $601.3 million compared with $542.0 million for the 39-week period ended October 29, 2011. Comparable store sales increased 7.7%. Gross profit for the 39-week period ended October 27, 2012, increased 13.5% to $220.4 million from $194.2 million for the 39-week period ended October 29, 2011. As a percent to net sales, gross profit improved to 36.7% for the 39-week period ended October 27, 2012, compared to 35.8% for the 39-week period ended October 29, 2011. The improvement as a percent of net sales was due to improved product margin and leveraging store occupancy costs. Store operating, selling and administrative expenses improved to 20.9% of net sales for the 39-week period ended October 27, 2012, compared to 21.4% of net sales for the 39-week period ended October 29, 2011. This was primarily attributed to the leveraging of store level costs and decreased debit card transaction fees. Net income for the 39-week period ended October 27, 2012, increased 23.1% to $53.2 million compared with $43.2 million for the 39-week period ended October 29, 2011. Earnings per diluted share increased 27.6% to $1.99 compared with $1.56 for the 39-week period ended October 29, 2011. Jeff Rosenthal, President and Chief Executive Officer, stated, “The back-to-school season, particularly in August, was as strong as we had anticipated. The positive trends in apparel and footwear, along with our continued focus on local assortments and exceptional inventory control, resulted in significant margin expansion and another increase to our Fiscal 2013 guidance. We are well positioned to maintain this positive momentum during the upcoming holiday season.” For the quarter, Hibbett opened 13 new stores, expanded 4 high performing stores and closed 2 underperforming stores, bringing the store base to 848 in 26 states as of October 27, 2012. Liquidity and Stock Repurchases Hibbett ended the third quarter of Fiscal 2013 with $75.3 million of available cash and cash equivalents on the consolidated balance sheet, no bank debt outstanding, and full availability under its $80.0 million unsecured credit facilities. During the third quarter, the Company repurchased 206,729 shares of common stock for a total expenditure of $11.8 million. On November 15, 2012, the Board of Directors of the Company authorized a new Stock Repurchase Program (Program) of $250.0 million expiring on January 29, 2016. Effective immediately, the new Program replaces the existing authorization which was due to expire on February 2, 2013. Under prior authorizations, the Company has purchased 11,900,356 shares of common stock to date at a cost of $316.6 million. Fiscal 2013 Outlook The Company increased its earnings guidance for Fiscal 2013 to a range of $2.66 to $2.71 per diluted share (which includes an expected contribution of $0.09 to $0.11 per diluted share from the 53rd week) and an increase in comparable store sales in the mid single digit range. For Fiscal 2013, the Company expects to open 57 to 60 new stores, expand approximately 17 high performing stores, and close up to 18 stores. The Company also announced it would begin construction of its new 412,000-square-foot wholesaling and logistics facility in Alabama in early first quarter Fiscal 2014. Investor Conference Call and Simulcast Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, November 16, 2012, to discuss third quarter Fiscal 2013 results. The number to call for the live interactive teleconference is (212) 231-2934. A replay of the conference call will be available until November 23, 2012, by dialing (402) 977-9140 and entering the passcode, 21576995. The Company will also provide an online Web simulcast and rebroadcast of its third quarter Fiscal 2013 conference call. The live broadcast of Hibbett's quarterly conference call will be available online at www.hibbett.com under Investor Relations, www.streetevents.com and www.earnings.com, on November 16, 2012, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call and continue through November 23, 2012. Hibbett Sports, Inc. operates sporting goods stores in small to mid-sized markets, predominately in the South, Mid-Atlantic and the lower Midwest regions of the United States. The Company's primary store format is Hibbett Sports, a 5,000-square-foot store located in strip centers and enclosed malls. A WARNING ABOUT FORWARD LOOKING STATEMENTS:Certain matters discussed in this press release are "forward looking statements" as that term is used in the Private Securities Litigation Reform Act of 1995.Forward looking statements address future events, developments or results and typically use words such as believe, anticipate, expect, intend, plan, forecast, guidance, outlook, or estimate.For example, our forward looking statements include statements regarding store opening, expansion and closing plans, liquidity, sales trends, margin trends, the effects of the 53rd week, earnings per diluted share and comparable store sales for Fiscal 2013.Such statements are subject to risks and uncertainties that could cause actual results to differ materially, including economic conditions, industry trends, merchandise trends, vendor relationships, customer demand, and competition.For a discussion of these factors, as well as others which could affect our business, you should carefully review our Annual Report and other reports filed from time to time with the Securities and Exchange Commission, including the "Risk Factors," "Business" and "MD&A" sections in our Annual Report on Form 10-K filed on March 26, 2012, and our Quarterly Reports on Form 10-Q filed on June 1, 2012 and September 4, 2012.In light of these risks and uncertainties, the future events, developments or results described by our forward looking statements in this document could turn out to be materially and adversely different from those we discuss or imply.We are not obligated to release publicly any revisions to any forward looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so.   HIBBETT SPORTS, INC. AND SUBSIDIARIESUnaudited Condensed Consolidated Statements of Operations (Dollars in thousands, except per share amounts)         Thirteen Weeks Ended   Thirty-Nine Weeks EndedOctober 27,   October 29,October 27,   October 29,2012201120122011 Net sales $ 202,934 $ 185,180 $ 601,293 $ 541,963 Cost of goods sold, distribution center and store occupancy costs   127,494   117,361   380,900   347,714 Gross profit 75,440 67,819 220,393 194,249 Store operating, selling and administrative expenses 41,933 39,514 125,705 115,855 Depreciation and amortization   3,207   3,334   9,613   9,914 Operating income 30,300 24,971 85,075 68,480 Interest expense, net   39   51   127   168 Income before provision for income taxes 30,261 24,920 84,948 68,312 Provision for income taxes   11,296   8,961   31,725   25,076 Net income $ 18,965 $ 15,959 $ 53,223 $ 43,236   Net income per common share: Basic earnings per share $ 0.73 $ 0.60 $ 2.03 $ 1.59 Diluted earnings per share $ 0.71 $ 0.59 $ 1.99 $ 1.56   Weighted average shares outstanding: Basic   26,125   26,748   26,234   27,154 Diluted   26,613   27,266   26,738   27,681     Unaudited Condensed Consolidated Balance Sheets (In thousands)       October 27,   January 28,20122012Assets Cash and cash equivalents $ 75,288 $ 55,138 Inventories, net 207,283 195,071 Other current assets   18,160   18,564 Total current assets 300,731 268,773 Property and equipment, net 45,169 39,596 Other assets   6,418   5,327 Total assets $ 352,318 $ 313,696   Liabilities and Stockholders' Investment Accounts payable $ 88,883 $ 73,735 Short-term capital leases 212 173 Accrued expenses   15,253   17,750 Total current liabilities 104,348 91,658 Non-current liabilities 18,677 18,288 Stockholders' investment   229,293   203,750 Total liabilities and stockholders' investment $ 352,318 $ 313,696     Supplemental Information(Unaudited)       Thirteen Weeks Ended   Thirty-Nine Weeks EndedOctober 27,   October 29,October 27,   October 29,2012201120122011Sales Information Total sales increase 9.6 % 10.6 % 10.9 % 10.2 % Comparable store sales increase 6.4 % 7.0 % 7.7 % 6.6 %   Store Count Information Beginning of period 837 802 832 798 New stores opened 13 16 27 32 Stores closed   (2 )     (3 )   (11 )     (15 ) End of period   848       815     848       815     Stores expanded 4 5 10 10   Estimated square footage at end of period (in thousands) 4,860 4,669   Balance Sheet Information Average inventory per store $ 244,437 $ 241,967   Share Repurchase Program Shares 206,729 698,880 700,132 1,671,832 Cost (in thousands) $ 11,822 $ 25,427 $ 38,843 $ 58,506   Hibbett Sports, Inc.Scott J. Bowman, 205-942-4292Senior Vice President &Chief Financial Officer