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Hibbett Reports Second Quarter Fiscal 2013 Results

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Aug. 17, 2012-- Hibbett Sports, Inc. (NASDAQ/GS: HIBB):

  • Achieves 11th Consecutive Quarter of Comparable Store Sales Increase
  • EPS Increases 43%
  • Raises Fiscal 2013 Guidance

Hibbett Sports, Inc. (NASDAQ/GS: HIBB), a sporting goods retailer, today announced results for the second quarter ended July 28, 2012.

Financial Highlights

Net sales for the 13-week period ended July 28, 2012, increased 8.0% to $165.4 million compared with $153.1 million for the 13-week period ended July 30, 2011. Comparable store sales increased 4.8%. Net income for the 13-week period ended July 28, 2012, increased 32.9% to $7.9 million compared with $5.9 million for the 13-week period ended July 30, 2011. Earnings per diluted share increased 42.9% to $0.30 compared with $0.21 for the 13-week period ended July 30, 2011.

Net sales for the 26-week period ended July 28, 2012, increased 11.7% to $398.4 million compared with $356.8 million for the 26-week period ended July 30, 2011. Comparable store sales increased 8.4%. Net income for the 26-week period ended July 28, 2012, increased 25.6% to $34.3 million compared with $27.3 million for the 26-week period ended July 30, 2011. Earnings per diluted share increased 30.6% to $1.28 compared with $0.98 for the 26-week period ended July 30, 2011.

Jeff Rosenthal, President and Chief Executive Officer, stated, “Our outlook for Fiscal 2013 continues to indicate solid earnings growth driven by positive sales trends and margin improvement. Based on our strong first half results, we are raising full year earnings estimates. Our small market strategy of bringing premium branded products to underserved markets continues to drive results.”

For the quarter, Hibbett opened 7 new stores, expanded 3 high performing stores and closed 5 underperforming stores, bringing the store base to 837 in 26 states as of July 28, 2012.

Liquidity and Stock Repurchases

Hibbett ended second quarter of Fiscal 2013 with $71.5 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 second quarter, the Company repurchased 176,443 shares of common stock for a total expenditure of $10.2 million. Approximately $121.5 million of the current $250.0 million authorization remains available for future stock repurchases.

Fiscal 2013 Outlook

The Company increased its earnings guidance for Fiscal 2013 to a range of $2.57 to $2.67 per diluted share (which includes an expected contribution of $0.07 to $0.09 per diluted share from the 53rd week) and a mid single digit comparable store sales increase. For Fiscal 2013, the Company expects to open 55 to 60 new stores, expand approximately 15 high performing stores and close up to 18 underperforming stores.

Investor Conference Call and Simulcast

Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, August 17, 2012, to discuss second quarter of 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 August 24, 2012, by dialing (402) 977-9140 and entering the passcode, 21576994.

The Company will also provide an online Web simulcast and rebroadcast of its second quarter of 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 August 17, 2012, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call and continue through August 24, 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 effect 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 Report on Form 10-Q filed on June 1, 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 SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
               
 
Thirteen Weeks Ended Twenty-Six Weeks Ended
July 28, July 30, July 28, July 30,
2012 2011 2012 2011
Net sales $ 165,445 $ 153,127 $ 398,359 $ 356,783

Cost of goods sold, distribution center and store occupancy costs

  108,920   102,490   253,405   230,353
Gross profit 56,525 50,637 144,954 126,430

Store operating, selling and administrative expenses

40,968 37,969 83,772 76,342
Depreciation and amortization   3,180   3,300   6,406   6,580
Operating income 12,377 9,368 54,776 43,508
Interest expense, net   41   60   89   116
Income before provision for income taxes 12,336 9,308 54,687 43,392
Provision for income taxes   4,441   3,368   20,429   16,115
Net income $ 7,895 $ 5,940 $ 34,258 $ 27,277
 
Net income per common share:
Basic earnings per share $ 0.30 $ 0.22 $ 1.30 $ 1.00
Diluted earnings per share $ 0.30 $ 0.21 $ 1.28 $ 0.98
 
Weighted average shares outstanding:
Basic   26,228   27,267   26,289   27,356
Diluted   26,702   27,804   26,800   27,889
 
 
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
           
July 28, January 28,
2012 2012
Assets
Cash and cash equivalents $ 71,467 $ 55,138
Inventories, net 198,971 195,071
Other current assets   26,163   18,564
Total current assets 296,601 268,773
Property and equipment, net 40,020 39,596
Other assets   5,710   5,327
Total assets $ 342,331 $ 313,696
 
Liabilities and Stockholders' Investment
Accounts payable $ 86,787 $ 73,735
Short-term capital leases 163 173
Accrued expenses   16,388   17,750
Total current liabilities 103,338 91,658
Non-current liabilities 18,037 18,288
Stockholders' investment   220,956   203,750
Total liabilities and stockholders' investment $ 342,331 $ 313,696

Source: Hibbett Sports, Inc.

Hibbett Sports, Inc.
Scott J. Bowman, 205-942-4292
Senior Vice President & Chief Financial Officer