UNITED STATES | ||||||||||||||
SECURITIES AND EXCHANGE COMMISSION | ||||||||||||||
Washington, D.C. 20549 | ||||||||||||||
FORM | ||||||||||||||
CURRENT REPORT | ||||||||||||||
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||||||||||||||
Date of report (Date of earliest event reported): | ||||||||||||||
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(Exact name of registrant as specified in its charter) | ||||||||||||||
(State or other jurisdiction of | (Commission | (I.R.S. Employer | ||||||||||||
incorporation) | File No.) | Identification No.) | ||||||||||||
(Address of principal executive offices, including Zip Code) | ||||||||||||||
( | ||||||||||||||
(Registrant’s telephone number, including area code) | ||||||||||||||
Not Applicable | ||||||||||||||
(Former name or former address, if changed since last report) | ||||||||||||||
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: | ||||||||||||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||||||||||||||
Emerging Growth Company | ||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | ||||||||||||||
Exhibit No. | Description of Exhibit | |||||||
Academy Sports and Outdoors, Inc. Press Release, dated December 7, 2022. | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
ACADEMY SPORTS AND OUTDOORS, INC. | ||
Date: December 7, 2022 | By: | /s/ | Rene G. Casares | |||||||||||
Name: | Rene G. Casares | |||||||||||||
Title: | Senior Vice President, General Counsel and Secretary | |||||||||||||
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Previous Guidance | Updated Guidance | |||||||||||||||||||
(in millions, except per share amounts) | Low end | High end | Low end | High end | ||||||||||||||||
Net Sales | $ | 6,430.0 | $ | 6,630.0 | $ | 6,430.0 | $ | 6,490.0 | ||||||||||||
Comparable Sales | -6.0 | % | -3.0 | % | -6.0 | % | -5.0 | % | ||||||||||||
Gross Margin Rate | 33.0 | % | 33.5 | % | 34.0 | % | 34.5 | % | ||||||||||||
GAAP Income Before Taxes | $ | 725.0 | $ | 805.0 | $ | 790.0 | $ | 810.0 | ||||||||||||
GAAP Net Income | $ | 550.0 | $ | 615.0 | $ | 610.0 | $ | 620.0 | ||||||||||||
GAAP Earnings per Common Share, Diluted | $ | 6.50 | $ | 7.25 | $ | 7.25 | $ | 7.40 | ||||||||||||
Adjusted Earnings per Common Share, Diluted | $ | 6.75 | $ | 7.50 | $ | 7.50 | $ | 7.65 | ||||||||||||
Diluted Weighted Average Common Shares Outstanding | 85.0 | 85.0 | 84.0 | 84.0 | ||||||||||||||||
Investor Contact | Media Contact | |||||||
Matt Hodges | Elise Hasbrook | |||||||
VP, Investor Relations | VP, Communications | |||||||
281-646-5362 | 281-944-6041 | |||||||
matt.hodges@academy.com | elise.hasbrook@academy.com |
Thirteen Weeks Ended | |||||||||||||||||||||||
October 29, 2022 | Percentage of Sales (1) | October 30, 2021 | Percentage of Sales (1) | ||||||||||||||||||||
Net sales | $ | 1,493,925 | 100.0 | % | $ | 1,592,795 | 100.0 | % | |||||||||||||||
Cost of goods sold | 971,454 | 65.0 | % | 1,031,957 | 64.8 | % | |||||||||||||||||
Gross margin | 522,471 | 35.0 | % | 560,838 | 35.2 | % | |||||||||||||||||
Selling, general and administrative expenses | 342,949 | 23.0 | % | 344,725 | 21.6 | % | |||||||||||||||||
Operating income | 179,522 | 12.0 | % | 216,113 | 13.6 | % | |||||||||||||||||
Interest expense, net | 12,163 | 0.8 | % | 11,424 | 0.7 | % | |||||||||||||||||
Other (income), net | (2,538) | (0.2) | % | (614) | (0.0) | % | |||||||||||||||||
Income before income taxes | 169,897 | 11.4 | % | 205,303 | 12.9 | % | |||||||||||||||||
Income tax expense | 38,156 | 2.6 | % | 43,998 | 2.8 | % | |||||||||||||||||
Net income | $ | 131,741 | 8.8 | % | $ | 161,305 | 10.1 | % | |||||||||||||||
Earnings Per Common Share: | |||||||||||||||||||||||
Basic | $ | 1.67 | $ | 1.77 | |||||||||||||||||||
Diluted | $ | 1.62 | $ | 1.72 | |||||||||||||||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||||||||||
Basic | 79,085 | 91,140 | |||||||||||||||||||||
Diluted | 81,379 | 93,844 | |||||||||||||||||||||
Thirty-Nine Weeks Ended | |||||||||||||||||||||||
October 29, 2022 | Percentage of Sales (1) | October 30, 2021 | Percentage of Sales (1) | ||||||||||||||||||||
Net sales | $ | 4,648,570 | 100.0 | % | $ | 4,964,658 | 100.0 | % | |||||||||||||||
Cost of goods sold | 3,008,612 | 64.7 | % | 3,197,623 | 64.4 | % | |||||||||||||||||
Gross margin | 1,639,958 | 35.3 | % | 1,767,035 | 35.6 | % | |||||||||||||||||
Selling, general and administrative expenses | 998,209 | 21.5 | % | 1,057,290 | 21.3 | % | |||||||||||||||||
Operating income | 641,749 | 13.8 | % | 709,745 | 14.3 | % | |||||||||||||||||
Interest expense, net | 34,240 | 0.7 | % | 38,130 | 0.8 | % | |||||||||||||||||
Loss on early retirement of debt | — | — | % | 2,239 | 0.0 | % | |||||||||||||||||
Other (income), net | (4,676) | (0.1) | % | (1,746) | (0.0) | % | |||||||||||||||||
Income before income taxes | 612,185 | 13.2 | % | 671,122 | 13.5 | % | |||||||||||||||||
Income tax expense | 141,837 | 3.1 | % | 141,511 | 2.9 | % | |||||||||||||||||
Net income | $ | 470,348 | 10.1 | % | $ | 529,611 | 10.7 | % | |||||||||||||||
Earnings Per Common Share: | |||||||||||||||||||||||
Basic | $ | 5.67 | $ | 5.76 | |||||||||||||||||||
Diluted | $ | 5.54 | $ | 5.55 | |||||||||||||||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||||||||||
Basic | 82,901 | 91,951 | |||||||||||||||||||||
Diluted | 84,910 | 95,504 | |||||||||||||||||||||
October 29, 2022 | January 29, 2022 | October 30, 2021 | ||||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 318,167 | $ | 485,998 | $ | 401,297 | ||||||||||||||
Accounts receivable - less allowance for doubtful accounts of $1,449, $732 and $1,139, respectively | 15,998 | 19,718 | 12,368 | |||||||||||||||||
Merchandise inventories, net | 1,495,464 | 1,171,808 | 1,325,979 | |||||||||||||||||
Prepaid expenses and other current assets | 44,241 | 36,460 | 44,491 | |||||||||||||||||
Assets held for sale | 1,763 | 1,763 | 1,763 | |||||||||||||||||
Total current assets | 1,875,633 | 1,715,747 | 1,785,898 | |||||||||||||||||
PROPERTY AND EQUIPMENT, NET | 354,014 | 345,836 | 358,110 | |||||||||||||||||
RIGHT-OF-USE ASSETS | 1,100,522 | 1,079,546 | 1,087,407 | |||||||||||||||||
TRADE NAME | 577,571 | 577,215 | 577,144 | |||||||||||||||||
GOODWILL | 861,920 | 861,920 | 861,920 | |||||||||||||||||
OTHER NONCURRENT ASSETS | 12,804 | 4,676 | 5,516 | |||||||||||||||||
Total assets | $ | 4,782,464 | $ | 4,584,940 | $ | 4,675,995 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Accounts payable | $ | 840,585 | $ | 737,826 | $ | 919,196 | ||||||||||||||
Accrued expenses and other current liabilities | 259,179 | 303,207 | 304,488 | |||||||||||||||||
Current lease liabilities | 88,447 | 83,077 | 86,701 | |||||||||||||||||
Current maturities of long-term debt | 3,000 | 3,000 | 3,000 | |||||||||||||||||
Total current liabilities | 1,191,211 | 1,127,110 | 1,313,385 | |||||||||||||||||
LONG-TERM DEBT, NET | 682,803 | 683,585 | 683,845 | |||||||||||||||||
LONG-TERM LEASE LIABILITIES | 1,093,909 | 1,077,667 | 1,088,142 | |||||||||||||||||
DEFERRED TAX LIABILITIES, NET | 242,843 | 217,212 | 188,243 | |||||||||||||||||
OTHER LONG-TERM LIABILITIES | 12,779 | 12,420 | 26,386 | |||||||||||||||||
Total liabilities | 3,223,545 | 3,117,994 | 3,300,001 | |||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||
STOCKHOLDERS' EQUITY : | ||||||||||||||||||||
Preferred stock, $0.01 par value, authorized 50,000,000 shares; none issued and outstanding | — | — | — | |||||||||||||||||
Common stock, $0.01 par value, authorized 300,000,000 shares; 77,959,530; 87,079,394; and 88,164,878 issued and outstanding as of October 29, 2022, January 29, 2022, and October 30, 2021, respectively. | 779 | 870 | 882 | |||||||||||||||||
Additional paid-in capital | 203,734 | 198,016 | 188,329 | |||||||||||||||||
Retained earnings | 1,354,406 | 1,268,060 | 1,188,271 | |||||||||||||||||
Accumulated other comprehensive loss | — | — | (1,488) | |||||||||||||||||
Stockholders' equity | 1,558,919 | 1,466,946 | 1,375,994 | |||||||||||||||||
Total liabilities and stockholders' equity | $ | 4,782,464 | $ | 4,584,940 | $ | 4,675,995 |
Thirty-Nine Weeks Ended | ||||||||||||||
October 29, 2022 | October 30, 2021 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||
Net income | $ | 470,348 | $ | 529,611 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 78,852 | 77,767 | ||||||||||||
Non-cash lease expense | 635 | 708 | ||||||||||||
Equity compensation | 15,486 | 36,126 | ||||||||||||
Amortization of terminated interest rate swaps, deferred loan and other costs | 2,328 | 4,787 | ||||||||||||
Deferred income taxes | 25,631 | 48,991 | ||||||||||||
Non-cash loss on early retirement of debt | — | 2,239 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||
Accounts receivable, net | 3,720 | 4,938 | ||||||||||||
Merchandise inventories, net | (323,656) | (335,945) | ||||||||||||
Prepaid expenses and other current assets | 798 | (16,177) | ||||||||||||
Other noncurrent assets | (8,987) | 2,207 | ||||||||||||
Accounts payable | 95,183 | 128,743 | ||||||||||||
Accrued expenses and other current liabilities | (39,196) | 34,683 | ||||||||||||
Income taxes payable | (12,332) | (1,830) | ||||||||||||
Other long-term liabilities | 359 | (1,785) | ||||||||||||
Net cash provided by operating activities | 309,169 | 515,063 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||
Capital expenditures | (79,454) | (58,567) | ||||||||||||
Purchases of intangible assets | (357) | (144) | ||||||||||||
Net cash used in investing activities | (79,811) | (58,711) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||
Repayment of Term Loan | (2,250) | (101,500) | ||||||||||||
Debt issuance fees | — | (927) | ||||||||||||
Share-Based Award Payments | — | (11,214) | ||||||||||||
Proceeds from exercise of stock options | 11,559 | 41,292 | ||||||||||||
Proceeds from issuance of common stock under employee stock purchase program | 2,797 | 945 | ||||||||||||
Taxes paid related to net share settlement of equity awards | (1,078) | (15,418) | ||||||||||||
Repurchase of common stock for retirement | (389,436) | (345,837) | ||||||||||||
Dividends paid | (18,781) | — | ||||||||||||
Net cash used in financing activities | (397,189) | (432,659) | ||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (167,831) | 23,693 | ||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 485,998 | 377,604 | ||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 318,167 | $ | 401,297 |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||||||||||||
October 29, 2022 | October 30, 2021 | October 29, 2022 | October 30, 2021 | |||||||||||||||||||||||
Net income | $ | 131,741 | $ | 161,305 | $ | 470,348 | $ | 529,611 | ||||||||||||||||||
Interest expense, net | 12,163 | 11,424 | 34,240 | 38,130 | ||||||||||||||||||||||
Income tax expense | 38,156 | 43,998 | 141,837 | 141,511 | ||||||||||||||||||||||
Depreciation and amortization | 27,000 | 26,459 | 78,852 | 77,767 | ||||||||||||||||||||||
Equity compensation (a) | 5,829 | 2,921 | 15,486 | 36,126 | ||||||||||||||||||||||
Loss on early retirement of debt | — | — | — | 2,239 | ||||||||||||||||||||||
Pre-opening expenses (b) | 2,115 | — | 4,941 | — | ||||||||||||||||||||||
Payroll taxes associated with the 2021 Vesting Event (c) | — | — | — | 15,418 | ||||||||||||||||||||||
Other (d) | — | 595 | — | 1,309 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 217,004 | $ | 246,702 | $ | 745,704 | $ | 842,111 | ||||||||||||||||||
Less: Depreciation and amortization | (27,000) | (26,459) | (78,852) | (77,767) | ||||||||||||||||||||||
Adjusted EBIT | $ | 190,004 | $ | 220,243 | $ | 666,852 | $ | 764,344 | ||||||||||||||||||
(a) | Represents non-cash charges related to equity-based compensation, which vary from period to period depending on certain factors such as the 2021 Vesting Event, timing and valuation of awards, achievement of performance targets and equity award forfeitures. | |||||||||||||||||||||||||
(b) | Represents pre-opening expenses, which are non-capital expenditures associated with opening new stores and incurred prior to the store opening and generating sales. These costs consist primarily of occupancy costs, marketing, payroll and recruiting costs. These costs are expensed as incurred. | |||||||||||||||||||||||||
(c) | Represents cash expenses related to taxes on equity-based compensation resulting from the 2021 Vesting Event. | |||||||||||||||||||||||||
(d) | Other adjustments include (representing deductions or additions to Adjusted EBITDA and Adjusted EBIT) amounts that management believes are not representative of our operating performance, such as costs associated with secondary offerings, installation costs for energy savings associated with our profitability initiatives and other costs associated with business optimization initiatives. |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||||||||||||||
October 29, 2022 | October 30, 2021 | October 29, 2022 | October 30, 2021 | ||||||||||||||||||||||||||
Net income | $ | 131,741 | $ | 161,305 | $ | 470,348 | $ | 529,611 | |||||||||||||||||||||
Equity compensation (a) | 5,829 | 2,921 | 15,486 | 36,126 | |||||||||||||||||||||||||
Loss on early retirement of debt | — | — | — | 2,239 | |||||||||||||||||||||||||
Pre-opening expenses (b) | 2,115 | — | 4,941 | — | |||||||||||||||||||||||||
Payroll taxes associated with the 2021 Vesting Event (c) | — | — | — | 15,418 | |||||||||||||||||||||||||
Other (d) | — | 595 | — | 1,309 | |||||||||||||||||||||||||
Tax effects of these adjustments (e) | (1,808) | (686) | (4,735) | (13,487) | |||||||||||||||||||||||||
Adjusted Net Income | $ | 137,877 | $ | 164,135 | $ | 486,040 | $ | 571,216 | |||||||||||||||||||||
Adjusted Earnings per Common Share: | |||||||||||||||||||||||||||||
Basic | $ | 1.74 | $ | 1.80 | $ | 5.86 | $ | 6.21 | |||||||||||||||||||||
Diluted | $ | 1.69 | $ | 1.75 | $ | 5.72 | $ | 5.98 | |||||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||||||
Basic | 79,085 | 91,140 | 82,901 | 91,951 | |||||||||||||||||||||||||
Diluted | 81,379 | 93,844 | 84,910 | 95,504 | |||||||||||||||||||||||||
(a) | Represents non-cash charges related to equity-based compensation, which vary from period to period depending on certain factors such as the 2021 Vesting Event, timing and valuation of awards, achievement of performance targets and equity award forfeitures. | ||||||||||||||||||||||||||||
(b) | Represents pre-opening expenses, which are non-capital expenditures associated with opening new stores and incurred prior to the store opening and generating sales. These costs consist primarily of occupancy costs, marketing, payroll and recruiting costs. These costs are expensed as incurred. | ||||||||||||||||||||||||||||
(c) | Represents cash expenses related to taxes on equity-based compensation resulting from the 2021 Vesting Event. | ||||||||||||||||||||||||||||
(d) | Other adjustments include (representing deductions or additions to Adjusted Net Income) amounts that management believes are not representative of our operating performance, such as costs associated with secondary offerings, installation costs for energy savings associated with our profitability initiatives and other costs associated with business optimization initiatives. | ||||||||||||||||||||||||||||
(e) | For the thirteen and thirty-nine weeks ended October 29, 2022 and October 30, 2021, this represents the tax effect (by using the projected full year tax rates for the respective years) of the total adjustments made to arrive at Adjusted Net Income. |
Low Range* | High Range* | |||||||||||||
(in millions, except per share amounts) | Fiscal Year Ending January 28, 2023 | Fiscal Year Ending January 28, 2023 | ||||||||||||
GAAP Net Income | $ | 610.0 | $ | 620.0 | ||||||||||
Equity compensation (a) | 21.0 | 21.0 | ||||||||||||
Pre-opening expenses (a) | 5.0 | 5.0 | ||||||||||||
Tax effects of these adjustments (a) | (6.0) | (6.0) | ||||||||||||
Adjusted Net Income | $ | 630.0 | $ | 640.0 | ||||||||||
GAAP Earnings Per Common Share, Diluted | $ | 7.25 | $ | 7.40 | ||||||||||
Equity compensation (a) | 0.25 | 0.25 | ||||||||||||
Pre-opening expenses (a) | 0.06 | 0.06 | ||||||||||||
Tax effects of these adjustments (a) | (0.06) | (0.06) | ||||||||||||
Adjusted Earnings per Common Share, Diluted | $ | 7.50 | $ | 7.65 | ||||||||||
* | Amounts presented have been rounded. | |||||||||||||
(a) | Adjustments include new store pre-opening costs (as defined above) and non-cash charges related to equity-based compensation (as defined above), which may vary from period to period. The tax effect of these adjustments is determined by using the projected full year tax rate for the fiscal year. |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||||||||||||
October 29, 2022 | October 30, 2021 | October 29, 2022 | October 30, 2021 | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 50,763 | $ | 109,389 | $ | 309,169 | $ | 515,063 | ||||||||||||||||||
Net cash used in investing activities | (31,677) | (24,944) | (79,811) | (58,711) | ||||||||||||||||||||||
Adjusted Free Cash Flow | $ | 19,086 | $ | 84,445 | $ | 229,358 | $ | 456,352 |
Cover |
Dec. 07, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Dec. 07, 2022 |
Entity Registrant Name | Academy Sports and Outdoors, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-39589 |
Entity Tax Identification Number | 85-1800912 |
Entity Address, Address Line One | 1800 North Mason Road |
Entity Address, City or Town | Katy |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77449 |
City Area Code | 281 |
Local Phone Number | 646-5200 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.01 par value per share |
Trading Symbol | ASO |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001817358 |
Amendment Flag | false |
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