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Press release from Business Wire

Hibbett Reports Fourth Quarter and Fiscal 2013 Results

Friday, March 15, 2013

Hibbett Reports Fourth Quarter and Fiscal 2013 Results06:30 EDT Friday, March 15, 2013 BIRMINGHAM, Ala. (Business Wire) -- Hibbett Sports, Inc. (NASDAQ/GS: HIBB): Achieves 13th Consecutive Quarter of Comparable Store Sales IncreaseFourth Quarter Earnings Per Diluted Share Increases 24%Fiscal Year Earnings Per Diluted Share Increases 27%Issues Fiscal 2014 Guidance Hibbett Sports, Inc. (NASDAQ/GS: HIBB), a sporting goods retailer, today announced results for the fourth quarter and fiscal year ended February 2, 2013. Fourth Quarter Results Net sales for the 14-week period ended February 2, 2013, increased 14.0% to $217.4 million compared with $190.7 million for the 13-week period ended January 28, 2012. Comparable store sales increased 4.9% on a 13-week to 13-week period. Gross profit improved to 36.1% of net sales for the 14-week period ended February 2, 2013, compared with 35.8% for the 13-week period ended January 28, 2012. Store operating, selling and administrative expenses improved to 20.3% of net sales for the 14-week period ended February 2, 2013, compared with 20.9% of net sales for the 13-week period ended January 28, 2012. Net income for the 14-week period ended February 2, 2013, increased 22.3% to $19.4 million compared with $15.8 million for the 13-week period ended January 28, 2012. Earnings per diluted share increased 23.7% to $0.73 for the 14-week period ended February 2, 2013 compared with $0.59 for the 13-week period ended January 28, 2012. The 14th week added approximately $0.07 in diluted earnings per share to our quarterly and annual results. For the quarter, Hibbett opened 27 new stores, expanded 4 high performing stores and closed 2 underperforming stores, bringing the store base to 873 in 29 states as of February 2, 2013. Fiscal 2013 Results Net sales for the 53-week period ended February 2, 2013, increased 11.8% to $818.7 million compared with $732.6 million for the 52-week period ended January 28, 2012. Comparable store sales increased 6.9% on a 52-week to 52-week period. Gross profit improved to 36.5% of net sales for the 53-week period ended February 2, 2013, compared with 35.8% for the 52-week period ended January 28, 2012. Store operating, selling and administrative expenses improved to 20.8% of net sales for the 53-week period ended February 2, 2013, compared with 21.3% of net sales for the 52-week period ended January 28, 2012. Net income for the 53-week period ended February 2, 2013, increased 22.9% to $72.6 million compared with $59.1 million for the 52-week period ended January 28, 2012. Earnings per diluted share increased 26.5% to $2.72 compared with $2.15 for the 52-week period ended January 28, 2012. For the year, Hibbett opened 54 new stores, expanded 13 high performing stores and closed 13 underperforming stores. Jeff Rosenthal, President and Chief Executive Officer, stated, “The holiday season was strong due to solid performance in footwear, apparel, and accessories. Fiscal 2013 results were accomplished by excellent assortments, great customer service, and outstanding support from our distribution team and supplier partners. Looking forward into Fiscal 2014, we are well positioned to continue our growth and are very excited about the investments being made in the business to ensure our future success.” Liquidity and Stock Repurchases Hibbett ended the fourth quarter of Fiscal 2013 with $76.9 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 fourth quarter, the Company repurchased 203,662 shares of common stock for a total expenditure of $11.0 million. For Fiscal 2013, the Company repurchased 903,794 shares of common stock for a total expenditure of $49.9 million. Approximately $245.4 million of the total authorization remained for future stock repurchases as of February 2, 2013. Fiscal 2014 Outlook For Fiscal 2014, the Company expects to report diluted earnings per share in the range of $2.85 to $3.05 and an increase in comparable store sales in the low to mid-single digit range. Please note that this compares to Fiscal 2013 that had an approximate $0.07 benefit in earnings per diluted share due to the 53rd week. For Fiscal 2014, the Company expects to open 65 to 70 new stores, expand approximately 18 high performing stores and close 15 to 20 stores. Investor Conference Call and Simulcast Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, March 15, 2013, to discuss fourth 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 March 22, 2013, by dialing (402) 977-9140 and entering the passcode, 21576996. The Company will also provide an online Web simulcast and rebroadcast of its fourth 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 March 15, 2013, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call and continue through March 22, 2013. Hibbett Sports, Inc. operates sporting goods stores in small to mid-sized markets, predominately in the South, Southwest, Mid-Atlantic and 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 calendar shifts, earnings per diluted share and comparable store sales.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, September 4, 2012 and December 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)           February 2,2013January 28,2012February 2,2013January 28,2012(14 Weeks)(13 Weeks)(53 Weeks)(52 Weeks) Net sales $ 217,407 $ 190,681 $ 818,700 $ 732,645 Cost of goods sold, distribution center and store occupancy costs   138,918   122,521   519,818   470,237 Gross profit 78,489 68,160 298,882 262,408 Store operating, selling and administrative expenses 44,167 39,817 169,872 155,672 Depreciation and amortization   3,416   3,291   13,029   13,205 Operating income 30,906 25,052 115,981 93,531 Interest expense, net   41   50   168   217 Income before provision for income taxes 30,865 25,002 115,813 93,314 Provision for income taxes   11,506   9,178   43,231   34,254 Net income $ 19,359 $ 15,824 $ 72,582 $ 59,060   Net income per common share: Basic earnings per share $ 0.75 $ 0.60 $ 2.78 $ 2.19 Diluted earnings per share $ 0.73 $ 0.59 $ 2.72 $ 2.15   Weighted average shares outstanding: Basic   25,848   26,452   26,132   26,978 Diluted   26,359   26,983   26,638   27,506   HIBBETT SPORTS, INC. AND SUBSIDIARIESUnaudited Condensed Consolidated Balance Sheets (In thousands)     February 2,2013   January 28,2012Assets Cash and cash equivalents $ 76,911 $ 55,138 Accounts receivable, net 5,954 6,123 Inventories, net 221,378 195,071 Prepaid expenses and other   17,371   12,441 Total current assets 321,614 268,773 Property and equipment, net 49,076 39,596 Other assets   6,641   5,327 Total assets $ 377,331 $ 313,696   Liabilities and Stockholders' Investment Accounts payable $ 102,021 $ 73,735 Short-term capital leases 714 173 Accrued expenses   15,980   17,750 Total current liabilities 118,715 91,658 Non-current liabilities 19,489 18,288 Stockholders' investment   239,127   203,750 Total liabilities and stockholders' investment $ 377,331 $ 313,696   HIBBETT SPORTS, INC. AND SUBSIDIARIESFISCAL 2013 COMPARABLE STORE SALESAS ORIGINALLY REPORTED AND ADJUSTED FOR WEEK SHIFT (a)(unaudited)         FISCAL 2013 FirstQuarter   SecondQuarter   ThirdQuarter   FourthQuarter FullYear   Comparable store sales increase (originally reported) 11.1 % 4.8 % 6.4 % 4.9   % 6.9 % Comparable store sales increase (adjusted for week shift) 8.6 %   12.5 %   -0.7 %   4.4   % 6.0 % Impact of week shift -2.5 % 7.7 % -7.1 % -0.5 % -0.9 %   (a) Due to the 53rd week in Fiscal 2013, each quarter in Fiscal 2014 starts one week later than the same quarter in Fiscal 2013. The chart above presents comparable store sales for Fiscal 2013 as originally reported and as adjusted to represent the same 13-week period as the fiscal 2014 quarters.   HIBBETT SPORTS, INC. AND SUBSIDIARIESSupplemental Information(Unaudited)         February 2,2013January 28,2012February 2,2013January 28,2012(14 Weeks)(13 Weeks)(53 Weeks)(52 Weeks)Sales Information Total sales increase 14.0 % 10.1 % 11.8 % 10.2 % Comparable store sales increase (13 and 52 weeks) 4.9 % 7.2 % 6.9 % 6.8 %   Store Count Information Beginning of period 848 815 832 798 New stores opened 27 20 54 52 Stores closed   (2 )   (3 )   (13 )   (18 ) End of period   873     832     873     832     Stores expanded 4 2 13 15 Estimated square footage at end of period (in thousands) 5,003 4,755   Balance Sheet Information Average inventory per store $ 253,583 $ 234,460   Share Repurchase Program Shares 203,662 225,170 903,794 1,897,002 Cost (in thousands) $ 11,008 $ 10,107 $ 49,852 $ 68,613 Hibbett Sports, Inc.Scott J. Bowman, 205-942-4292Senior Vice President &Chief Financial Officer