8-K 1 f06-q3_earnings.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) November 17, 2005

 

Hibbett Sporting Goods, Inc.

(Exact Name Of Registrant As Specified In Its Charter)

 

 

Delaware

000-20969

63-1074067

(State if Incorporation)

(Commission

(IRS Employer

 

File Number)

Identification No.)

 

 

451 Industrial Lane

Birmingham, Alabama 35211

(Address of principal executive offices)

 

(205) 942-4292

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 


 

 

Item 1.01. Entry into a Material Definitive Agreement.

 

Stock Repurchase. On November 17, 2005, the Board of Directors increased its authorization under the Company’s common stock repurchase program by $40.0 million to $100.0 million through August 2006.

 

Item 2.02. Results of Operations and Financial Condition.

 

Hibbett Sporting Goods, Inc. released its preliminary results for the thirteen-week and thirty-nine week period ended October 29, 2005, in a press release issued on November 17, 2005.

 

The information in this Item, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. It may be incorporated by reference in another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K.

 

Item 7.01. Regulation FD Disclosures.

 

The information contained in Item 2.02 (including disclaimer) is incorporated by reference into this item 7.01.

 

Item 9.01. Financial Statements and Exhibits.

 

(c) Exhibits.

 

These exhibits are furnished pursuant to Item 2.02 and Item 7.01, respectively and shall not be deemed to be “filed”.

 

 

Exhibit No.

Description

 

 

99.1

Press Release Dated November 17, 2005

 

 


 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

HIBBETT SPORTING GOODS, INC.

 

 

 

 

By:

 

 

 

Gary A. Smith

 

 

Vice President and Chief Financial Officer

 

 

November 17, 2005

 

 


 

 

 

EXHIBIT INDEX

 

 

Exhibit No.

Description

 

 

99.1

Press Release Dated November 17, 2005

 

 

 


 

 

EXHIBIT 99.1

 

(Hibbett Sporting Goods, Inc. Letterhead)

 

Contact:

Gary Smith

 

Vice-President &

 

Chief Financial Officer

 

(205) 942-4292

 

HIBBETT REPORTS THIRD QUARTER RESULTS

•

Earnings Per Share Increases 41.2%

•

Net Sales Increase 20.0%

•

Comparable Store Sales Up 8.4%

•

Raises Fiscal 2006 Guidance

•

Increases Stock Repurchase Authorization by $40.0 Million

 

BIRMINGHAM, Ala. (November 17, 2005) – Hibbett Sporting Goods, Inc. (NASDAQ/NM: HIBB), a sporting goods retailer, today announced results for the third quarter ended October 29, 2005.

Financial Highlights

Net sales for the 13-week period ended October 29, 2005, increased 20.0% to $110.6 million compared with $92.1 million for the 13-week period ended October 30, 2004. Comparable store sales increased 8.4% in the third quarter of fiscal 2006. Net income for the third fiscal quarter increased 33.6% to $8.2 million compared with restated net income of $6.1 million in the third fiscal quarter of last year. Earnings per diluted share increased 41.2% to $0.24 compared with restated diluted earnings per share of $0.17 in the prior year. Comparable store net sales data reflects sales for our Hibbett Sports and Sports Additions stores open through the 13-week period and the corresponding period of the prior fiscal year.

 

Net sales for the 39-week period ended October 29, 2005, increased 18.1% to $319.4 million compared with $270.5 million for the 39-week period ended October 30, 2004. Comparable store sales increased 6.7% in the first nine months of fiscal 2006. Net income for the first nine months of fiscal 2006 increased 39.4% to $23.7 million compared with restated net income of $17.0 million in the first nine months of fiscal 2005. Earnings per diluted share increased 44.7% to $0.68 compared with restated diluted earnings per share of $0.47 in the prior year. Comparable store net sales data reflects sales for our Hibbett Sports and Sports Additions stores open through the 39-week period and the corresponding period of the prior fiscal year.

 

Hibbett opened 19 new stores and closed one store during the third quarter, bringing the store base to 526 in 22 states as of October 29, 2005. The Company plans to open a net of approximately 65 to 70 new stores in fiscal 2006, including a net of approximately 21 to 26 stores in the fourth quarter.

 

Mickey Newsome, Chairman and Chief Executive Officer, stated, "A strong comparable store sales performance from all three product categories, continued improvement in margins and the benefit of post-hurricane sales produced another record quarter. Footwear was our largest gainer with a double-digit increase led by kids and cleated categories. Year over year operating income increased 104 basis points in spite of hurricane related expenses and the comparison to an outstanding third quarter last year. We estimate that the impact from strong post-hurricane sales in our affected markets added approximately 2.0% to 3.0% to our comparable store sales in the quarter."

 

Fiscal 2006 Outlook

For the fourth quarter ending January 28, 2006, the Company expects to report earnings per diluted share of approximately $0.27 to $0.29 and a comparable store sales increase of 3.0% to 5.0% compared with earnings of $0.23 per diluted share in the prior-year period. Guidance for

 


 

fiscal 2006 is estimated at approximately $0.96 to $0.98 per diluted share and a comparable store sales increase in the mid single-digit range.

Mr. Newsome added, "Since 1945, Hibbett has successfully established a ‘home-town niche’ in markets primarily in the Sunbelt. The Hibbett growth story has been far more than new store growth as we have consistently delivered strong sales and earnings. We are focused on continuing the Hibbett growth story during fiscal 2006, and the sales and earnings pace established through the first three quarters position us for another record year."

 

The per share results reported for all periods presented herein reflect the effect of the three-for-two stock split that was distributed on September 27, 2005, to stockholders of record on September 9, 2005.

 

Stock Repurchase Program

The Company also announced that the Board of Directors has increased its authorization to repurchase the Company’s common stock by $40.0 million to $100.0 million through August 2006. After considering past stock repurchases, approximately $44.5 million of the total authorization now remains for future stock repurchases.

 

During the third quarter, the Company repurchased 1.3 million shares of common stock for a total expenditure of $29.9 million, bringing the total shares repurchased since the inception of the program in August 2004 to 2.8 million shares for a total expenditure of $55.5 million.

 

Investor Conference Call and Simulcast

Hibbett Sporting Goods, Inc. will conduct a conference call at 10:00 a.m. EST on November 18, 2005, to discuss the third quarter results. The number to call for this interactive teleconference is (913) 981-5558. A replay of the conference call will be available until November 25th, by dialing (719) 457-0820 and entering the passcode, 3364960.

 

The Company will also provide an online Web simulcast and rebroadcast of its fiscal 2006-third quarter conference call. The live broadcast of Hibbett's quarterly conference call will be available online at www.streetevents.com and www.earnings.com on November 18, 2005, beginning at 10:00 a.m. EDT. The online replay will follow shortly after the call and continue through December 2, 2005.

 

Hibbett Sporting Goods, Inc. operates sporting goods stores in small to mid-sized markets, predominantly in the Sunbelt, Mid-Atlantic and Midwest. The Company's primary store format is Hibbett Sports, a 5,000-square-foot store located in enclosed malls and dominant strip centers.

 

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 company growth, store opening plans, product performance, operating efficiencies, sales (including comparable store sales), earnings expectations and post-hurricane impacts. 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 complete description of these factors, as well as others which could affect our business, you should carefully review the "Risk Factors," "Business" and "MD&A" sections in our Annual Report on Form 10-K filed on April 14, 2005 as amended on Form 10-K/A on April 19, 2005 and our most recent prospectus supplement filed May 2, 2003. In addition, our estimates of annual earnings for fiscal 2006 do not reflect the impact of Financial Accounting Standard 123(R) regarding share-based payments. 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 SPORTING GOODS, INC. AND SUBSIDIARIES

Unaudited Statements of Operations

(Dollars in thousands, except per share amounts)

 

 

 

13 Weeks Ended

 

39 Weeks Ended

 

 

 

 

(as restated)

 

 

 

(as restated)

 

 

October 29,

 

October 30,

 

October 29,

 

October 30,

 

 

2005

 

2004 (1)

 

2005

 

2004 (1)

Net sales

$

110,594

 

$

92,140

 

$

319,442

 

$

270,453

Cost of goods sold, including warehouse,

 

 

 

 

 

 

 

 

 

 

 

 

distribution and store occupancy costs

 

73,485

 

 

61,241

 

 

213,212

 

 

183,140

 

Gross profit

 

37,109

 

 

30,899

 

 

106,230

 

 

87,313

Store operating, selling and administrative expenses

 

21,876

 

 

18,807

 

 

62,003

 

 

53,129

Depreciation and amortization

 

2,570

 

 

2,500

 

 

7,518

 

 

7,375

 

Operating income

 

12,663

 

 

9,592

 

 

36,709

 

 

26,809

Interest income, net

 

281

 

 

147

 

 

896

 

 

309

 

Income before provision for income taxes

 

12,944

 

 

9,739

 

 

37,605

 

 

27,118

Provision for income taxes

 

4,776

 

 

3,627

 

 

13,876

 

 

10,101

Net income

$

8,168

 

$

6,112

 

$

23,729

 

$

17,017

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.24

 

$

0.17

 

$

0.70

 

$

0.49

 

Diluted earnings per share

$

0.24

 

$

0.17

 

$

0.68

 

$

0.47

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

33,441

 

 

34,991

 

 

33,870

 

 

35,042

 

Diluted

 

34,102

 

 

35,711

 

 

34,665

 

 

35,912

 

 

Unaudited Condensed Balance Sheet

(In thousands)

 

 

 

 

 

 

 

(as restated)

 

 

 

 

 

 

October 29,

 

October 30,

 

January 29,

 

 

 

 

2005

 

2004 (1)

 

2005

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

$

16,992

 

$

44,542

 

$

58,342

Short-term investments

 

 

 

 

17,678

 

 

--

 

 

--

Accounts receivable, net

 

 

 

 

4,947

 

 

5,228

 

 

4,857

Inventories

 

 

 

 

112,375

 

 

105,422

 

 

103,009

Prepaid expenses and other

 

 

 

 

3,193

 

 

1,844

 

 

1,145

 

Total current assets

 

 

 

 

155,185

 

 

157,036

 

 

167,353

Property and equipment, net

 

 

 

 

35,981

 

 

31,763

 

 

32,913

Other assets

 

 

 

 

2,166

 

 

1,232

 

 

1,839

 

Total assets

 

 

 

$

193,332

 

$

190,031

 

$

202,105

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Investment

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

 

$

45,904

 

$

38,241

 

$

50,188

Accrued expenses

 

 

 

 

10,794

 

 

10,927

 

 

11,153

 

Total current liabilities

 

 

 

 

56,698

 

 

49,168

 

 

61,341

Non-current deferred liabilities

 

 

 

 

13,312

 

 

7,639

 

 

10,725

Stockholders’ investment

 

 

 

 

123,322

 

 

133,224

 

 

130,039

 

Total liabilities and stockholders’ investment

 

 

 

$

193,332

 

$

190,031

 

$

202,105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  See Annual report on Form 10-K filed on April 14, 2005, for full discussion of restatement of prior periods.

-END-