EX-99.1 2 q4f16earningsrelease.htm Q4F16 EARNINGS RELEASE
Exhibit 99.1


Contact:                          Scott J. Bowman
Senior Vice President &
Chief Financial Officer
(205) 942-4292

HIBBETT REPORTS FOURTH QUARTER AND FISCAL 2016 RESULTS
·
  EPS of $0.76 in Fourth Quarter
·
  Comparable Store Sales Decrease 0.6% in Fourth Quarter
·
  Issues Fiscal 2017 Outlook

BIRMINGHAM, Ala. (March 11, 2016) – Hibbett Sports, Inc. (NASDAQ/GS: HIBB), an athletic specialty retailer, today announced results for the fourth quarter and fiscal year ended January 30, 2016.

Fourth Quarter Results
Net sales for the 13-week period ended January 30, 2016, increased 2.7% to $245.7 million compared with $239.3 million for the 13-week period ended January 31, 2015.  Comparable store sales decreased 0.6%.

Gross profit was 34.8% of net sales for the 13-week period ended January 30, 2016, compared with 35.5% for the 13-week period ended January 31, 2015.

Store operating, selling and administrative expenses were 21.8% of net sales for the 13-week period ended January 30, 2016, compared with 20.4% of net sales for the 13-week period ended January 31, 2015.

Net income for the 13-week period ended January 30, 2016, was $17.4 million compared with $19.9 million for the 13-week period ended January 31, 2015.  Earnings per diluted share was $0.76 for the 13-week period ended January 30, 2016, compared with $0.79 for the 13-week period ended January 31, 2015.

Jeff Rosenthal, President and Chief Executive Officer, stated, "We were very pleased with our holiday sales driven by improved assortments, new items, and improved replenishment capability.  Sales softened in January as we experienced significant weather related closures and delays in tax refunds.  Looking forward, we are confident that our merchandising initiatives will continue to provide benefits as we enter the important spring season.  Additionally, we are very excited with our hiring of a Vice President of Digital Commerce who will provide the leadership and guidance necessary to drive our ongoing omni-channel initiative."

Fiscal 2016 Results
Net sales for the 52-week period ended January 30, 2016, increased 3.2% to $943.1 million compared with $913.5 million for the 52-week period ended January 31, 2015.  Comparable store sales decreased 0.4%.
 
 
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HIBB Reports Fourth Quarter and Fiscal 2016 Results
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Gross profit was 35.3% of net sales for the 52-week period ended January 30, 2016, compared with 35.8% for the 52-week period ended January 31, 2015.

Store operating, selling and administrative expenses were 21.6% of net sales for the 52-week period ended January 30, 2016, compared with 21.1% of net sales for the 52-week period ended January 31, 2015.

Net income for the 52-week period ended January 30, 2016, was $70.5 million compared with $73.6 million for the 52-week period ended January 31, 2015.  Earnings per diluted share was $2.92 for the 52-week period ended January 30, 2016, compared with $2.87 for the 52-week period ended January 31, 2015.

For the year, Hibbett opened 71 new stores, expanded 16 high performing stores and closed 15 underperforming stores, bringing the store base to 1,044 in 33 states as of January 30, 2016.

Liquidity and Stock Repurchases
Hibbett ended the fourth quarter of Fiscal 2016 with $32.3 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 fourth quarter, the Company repurchased 99,000 shares of common stock for a total expenditure of $3.4 million.  The Company's Board of Directors approved a new authorization of $300.0 million in November 2015 and the total authorization was available for future stock repurchases as of January 30, 2016.

Fiscal 2017 Outlook
The Company provided the following guidance for Fiscal 2017:
·
Earnings per diluted share in the range of $2.90 to $3.04.
·
Increase in comparable store sales in the low single digit range.
·
Approximately 40 to 50 net new stores.
·
Relatively flat product gross margin rate compared to Fiscal 2016.
·
An estimated incremental reduction of $0.14 to $0.16 per diluted share due to our ongoing omni-channel initiative.  This will include the rollout of a new point-of-sale system across all stores, preparation of our Store-to-Home capability, and early development of our digital commerce capability.  Included in this estimate is approximately $0.08 per diluted share for depreciation.
·
Capital expenditures of approximately $35 million to $40 million.

Investor Conference Call and Simulcast
Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, March 11, 2016, to discuss fourth quarter and Fiscal 2016 results.  The number to call for the live interactive teleconference is (212) 231-2910.  A replay of the conference call will be available until March 18, 2016, by dialing (402) 977-9140 and entering the passcode, 21802839.
 
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HIBB Reports Fourth Quarter and Fiscal 2016 Results
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The Company will also provide an online Web simulcast and rebroadcast of its fourth quarter and Fiscal 2016 conference call.  The live broadcast of Hibbett's quarterly conference call will be available online at www.hibbett.com under Investor Relations on March 11, 2016, beginning at 10:00 a.m. ET.  The online replay will follow shortly after the call and be available for replay for one year.

Hibbett Sports, Inc. operates athletic specialty 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 plans, earnings per diluted share, comparable store sales, product gross margin rates, capital expenditures, merchandising initiatives and the impact of our omni-channel initiative.  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 31, 2015 and in our Quarterly Reports on Form 10-Q filed on June 8, 2015, September 8, 2015 and December 8, 2015. In light of these risks and uncertainties, the future events, developments or results described by our forward looking statements in this document could 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.



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HIBB Reports Fourth Quarter and Fiscal 2016 Results
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March 11, 2016


HIBBETT SPORTS, INC. AND SUBSIDIARIES
  
Unaudited Condensed Consolidated Statements of Operations
  
(Dollars in thousands, except per share amounts)
  
                 
   
Thirteen Weeks Ended
    
Fifty-Two Weeks Ended
  
   
January 30, 2016
    
January 31, 2015
    
January 30, 2016
    
January 31, 2015
  
Net sales
  
$
245,719
    
$
239,338
    
$
943,104
    
$
913,486
  
Cost of goods sold, wholesale and logistics facility and store occupancy costs
    
160,250
      
154,308
      
610,389
      
586,702
  
  Gross profit
    
85,469
      
85,030
      
332,715
      
326,784
  
Store operating, selling and administrative expenses
    
53,467
      
48,870
      
203,673
      
192,648
  
Depreciation and amortization
    
4,382
      
4,213
      
17,038
      
15,990
  
  Operating income
    
27,620
      
31,947
      
112,004
      
118,146
  
Interest expense, net
    
90
      
76
      
292
      
293
  
  Income before provision for income taxes
    
27,530
      
31,871
      
111,712
      
117,853
  
Provision for income taxes
    
10,119
      
11,946
      
41,184
      
44,269
  
  Net income
  
$
17,411
    
$
19,925
    
$
70,528
    
$
73,584
  
 
                                
Net income per common share:
                                
Basic earnings per share
  
$
0.76
    
$
0.80
    
$
2.95
    
$
2.90
  
Diluted earnings per share
  
$
0.76
    
$
0.79
    
$
2.92
    
$
2.87
  
 
                                
Weighted average shares outstanding:
                                
Basic
    
22,790
      
24,965
      
23,947
      
25,369
  
Diluted
    
22,960
      
25,205
      
24,129
      
25,620
  
 

 

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HIBB Reports Fourth Quarter and Fiscal 2016 Results
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March 11, 2016


HIBBETT SPORTS, INC. AND SUBSIDIARIES
  
Unaudited Condensed Consolidated Balance Sheets
  
(In thousands)
  
         
   
January 30, 2016
    
January 31, 2015
  
Assets
  
   
 
Cash and cash equivalents
  
$
32,274
    
$
88,397
  
Inventories, net
    
283,099
      
240,408
  
Other current assets
    
14,995
      
26,693
  
  Total current assets
    
330,368
      
355,498
  
Property and equipment, net
    
101,389
      
92,981
  
Other assets
    
10,615
      
3,918
  
  Total assets
  
$
442,372
    
$
452,397
  
 
                
Liabilities and Stockholders' Investment
                
Accounts payable
  
$
88,456
    
$
84,439
  
Short-term capital leases
    
478
      
436
  
Accrued expenses
    
16,256
      
17,250
  
  Total current liabilities
    
105,190
      
102,125
  
Non-current liabilities
    
26,336
      
25,491
  
Stockholders' investment
    
310,846
      
324,781
  
  Total liabilities and stockholders' investment
  
$
442,372
    
$
452,397
  

 
 
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HIBB Reports Fourth Quarter and Fiscal 2016 Results
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March 11, 2016


HIBBETT SPORTS, INC. AND SUBSIDIARIES
  
Supplemental Information
  
(Unaudited)
  
                 
   
Thirteen Weeks Ended
    
Fifty-Two Weeks Ended
  
   
January 30, 2016
    
January 31, 2015
    
January 30, 2016
    
January 31, 2015
  
Sales Information
  
   
   
   
 
Net sales increase
    
2.7
%
    
9.9
%
    
3.2
%
    
7.2
%
Comparable store sales (decrease) increase
    
-0.6
%
    
5.4
%
    
-0.4
%
    
2.9
%
                                 
Store Count Information
                                
 Beginning of period
    
1,031
      
969
      
988
      
927
  
 New stores opened
    
20
      
22
      
71
      
80
  
 Stores closed
    
(7
)
    
(3
)
    
(15
)
    
(19
)
 End of period
    
1,044
      
988
      
1,044
      
988
  
                                 
Stores expanded
    
8
      
2
      
16
      
9
  
Estimated square footage at end of period (in thousands)
    
5,974
      
5,649
                  
 
                                
Balance Sheet Information
                                
Average inventory per store
  
$
271,168
    
$
243,328
                  
                                 
Share Repurchase Program
                                
Shares
    
99,000
      
133,711
      
2,236,389
      
1,206,006
  
Cost (in thousands)
  
$
3,389
    
$
6,394
    
$
91,333
    
$
60,971
  




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