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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
WASHINGTON, DC 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 23, 2018
 
DICK'S SPORTING GOODS, INC.
(Exact Name of Registrant as Specified in Its Charter)
 
Delaware
(State or Other Jurisdiction of Incorporation)
001-31463
 
16-1241537
(Commission File Number)
 
(IRS Employer Identification No.)
345 Court Street 
Coraopolis, Pennsylvania
 
15108
(Address of Principal Executive Offices)
 
(Zip Code)
 
(724) 273-3400
(Registrant's Telephone Number, Including Area Code)
 
N/A
(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:

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

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

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

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

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 o

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. o





TABLE OF CONTENTS
 
 






ITEM 2.02.
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
 
On November 28, 2018, the Company issued a press release announcing its results for the third fiscal quarter ended November 3, 2018 and certain other information that is furnished as Exhibit 99.1 to this Form 8-K.

ITEM 8.01.
OTHER EVENTS
 
On November 23, 2018, the Board of Directors of Dick's Sporting Goods, Inc. authorized and declared a quarterly dividend in the amount of $0.225 per share on the Company's Common Stock and Class B Common Stock. The dividend is payable in cash on December 28, 2018 to stockholders of record at the close of business on December 14, 2018.

ITEM 9.01. 
FINANCIAL STATEMENTS AND EXHIBITS
 
(d)  Exhibits.

The following exhibit is being furnished pursuant to Item 601 of Regulation S-K and General Instruction B.2 to this Form 8-K:

Exhibit No.
 
Description
 
 
 
99.1
 
Press Release dated November 28, 2018 by Dick's Sporting Goods, Inc. furnished herewith






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 thereunto duly authorized.
 
 
 
DICK'S SPORTING GOODS, INC.
 
 
 
 
 
 
Date: November 28, 2018
By:
/s/ LEE J. BELITSKY
 
Name:
Lee J. Belitsky
 
Title:
Executive Vice President – Chief Financial Officer






Exhibit Index
 
 
Exhibit No.
 
Description
 
 
 
 
Press Release dated November 28, 2018 by Dick's Sporting Goods, Inc. furnished herewith




(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit



Exhibit 99.1
FOR IMMEDIATE RELEASE 
395918224_dkslogoa01.jpg

DICK'S Sporting Goods Reports Third Quarter Results
 
Company delivered third quarter 2018 earnings per diluted share of $0.39 compared to earnings per diluted share of $0.35 and non-GAAP earnings per diluted share of $0.30 in the third quarter of 2017
 
Company raises full year 2018 earnings per diluted share guidance to $3.15 to $3.25 from the previous range of $3.02 to $3.20

eCommerce sales increased 16% during the third quarter

Repurchased $108 million of common stock during the quarter

PITTSBURGH, November 28, 2018 - DICK'S Sporting Goods, Inc. (NYSE: DKS), the largest U.S. based full-line omni-channel sporting goods retailer, today reported sales and earnings results for the third quarter ended November 3, 2018.

Third Quarter Results

The Company reported consolidated net income for the third quarter ended November 3, 2018 of $37.8 million, or $0.39 per diluted share. The Company reported consolidated net income for the third quarter ended October 28, 2017 of $36.9 million, or $0.35 per diluted share, and non-GAAP consolidated net income of $31.9 million, or $0.30 per diluted share, which is detailed in a table later in the release under the heading "GAAP to non-GAAP Reconciliations."

Net sales for the third quarter of 2018 decreased 4.5% to approximately $1.86 billion. Adjusted for the calendar shift due to the 53rd week in 2017, which we believe is the best view of the business, consolidated same store sales decreased 3.9% on a 13-week to 13-week comparable basis. Based on an unshifted calendar, consolidated same store sales for the third quarter decreased 6.1%. Third quarter 2017 consolidated same store sales decreased 0.9%.
 
“We are pleased to deliver another quarter of strong earnings. Our continued improvements in gross margin and disciplined expense management more than offset our strategic investments, and contributed to increased profitability compared to last year,” said Edward W. Stack, Chairman and Chief Executive Officer.

Mr. Stack continued, "Comparable sales were within our range of expectations, including continued headwinds in the hunt and electronics categories. Our efforts have been focused on driving profitable sales and managing our business to deliver higher earnings. As a result, we are pleased to increase our fiscal 2018 earnings guidance for a third consecutive quarter."

“We remain focused on improving our core execution, delivering stronger merchandise assortments and presentations, and increasing our productivity,” said Lauren R. Hobart, President of DICK’S Sporting Goods. “We are confident that the continued execution of these strategies will lead to stronger results and drive competitive advantage in the marketplace.”
Omni-channel Development

Adjusted for the calendar shift due to the 53rd week in 2017, eCommerce sales for the third quarter of 2018 increased 16%. eCommerce penetration for the third quarter of 2018 was approximately 12% of total net sales, compared to approximately 10% during the third quarter of 2017.

In the third quarter, the Company opened six new DICK'S Sporting Goods stores, completing its 2018 store development program. As of November 3, 2018, the Company operated 732 DICK'S Sporting Goods stores in 47 states, with approximately 38.8 million square feet, 94 Golf Galaxy stores in 32 states, with approximately 1.9 million square feet, and 35 Field & Stream stores in 16 states, with approximately 1.7 million square feet.

Store count, square footage and new stores are listed in a table later in the release under the heading "Store Count and Square Footage."

Balance Sheet
 
The Company ended the third quarter of 2018 with approximately $92 million in cash and cash equivalents and approximately $382 million in outstanding borrowings under its revolving credit facility. Over the course of the last 12 months, the Company continued to invest in omni-channel growth, while returning over $417 million to shareholders through share repurchases and quarterly dividends.

Total inventory increased 0.8% at the end of the third quarter of 2018 as compared to the end of the third quarter of 2017.

Year-to-Date Results

The Company reported consolidated net income for the 39 weeks ended November 3, 2018 of $217.3 million, or $2.18 per diluted share. For the 39 weeks ended October 28, 2017, the Company reported consolidated net income of $207.5 million, or $1.91 per diluted share, and non-GAAP consolidated net income of $197.0 million, or $1.81 per diluted share, which is detailed in a table later in the release under the heading "GAAP to non-GAAP Reconciliations."

Net sales for the 39 weeks ended November 3, 2018 increased 0.3% to approximately $5.94 billion. Adjusted for the calendar shift due to the 53rd week in 2017, which we believe is the best view of the business, consolidated same store sales decreased 3.5% on a 39-week to 39-week comparable basis. Based on an unshifted calendar, consolidated same store sales for the 39 weeks ended November 3, 2018 decreased 3.0%. Consolidated same store sales for the 39 weeks ended October 28, 2017 increased 0.5%.

Capital Allocation

On November 23, 2018, the Company's Board of Directors authorized and declared a quarterly dividend in the amount of $0.225 per share on the Company's Common Stock and Class B Common Stock. The dividend is payable in cash on December 28, 2018 to stockholders of record at the close of business on December 14, 2018.






During the third quarter of 2018, the Company repurchased approximately 3.1 million shares of its common stock at an average cost of $35.29 per share, for a total cost of $107.9 million. The Company has approximately $467 million remaining under its authorization that extends through 2021.

Full Year 2018 Outlook
 
The Company currently anticipates reporting earnings per diluted share in the range of $3.15 to $3.25. This guidance is not dependent upon additional share repurchases. The Company reported earnings per diluted share of $3.01 for the 53 weeks ended February 3, 2018.

Consolidated same store sales are currently expected to decline 3% to 4% on a 52-week to 52-week comparative basis, compared to a decline of 0.3% in 2017.
 
Net capital expenditures are now expected to be approximately $165 million. In 2017, net capital expenditures were $373 million.

Conference Call Info
 
The Company will host a conference call today at 10:00 a.m. Eastern Time to discuss the third quarter results. Investors will have the opportunity to listen to the earnings conference call over the internet through the Company's website located at investors.DICKS.com. To listen to the live call, please go to the website at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live webcast, it will be archived on the Company's website for approximately 30 days.

Non-GAAP Financial Measures
 
In addition to reporting the Company's financial results in accordance with generally accepted accounting principles ("GAAP"), the Company reports certain financial results that differ from what is reported under GAAP. These non-GAAP financial measures include consolidated non-GAAP net income and non-GAAP earnings per diluted share, which management believes provides investors with useful supplemental information to evaluate the Company’s ongoing operations and to compare with past and future periods. Management also uses certain non-GAAP measures internally for forecasting, budgeting, and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies. A reconciliation of the Company's non-GAAP measures to the most directly comparable GAAP financial measures are provided below and on the Company's website at investors.DICKS.com.





Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties

This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and change based on various important factors, many of which may be beyond our control. Our future performance and actual results may differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements should not be relied upon by investors as a prediction of actual results. Forward-looking statements include statements regarding, among other things, the Company's future performance, including outlook for earnings and sales in 2018; anticipated store openings and store relocations; capital expenditures; and improving market share.

Factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements include, but are not limited to: changes in consumer discretionary spending; our eCommerce platform not producing the anticipated benefits within the expected time frame or at all; the streamlining of the Company’s vendor base and execution of the Company’s new merchandising strategy not producing the anticipated benefits within the expected time frame or at all; the amount that we devote to strategic investments and the timing and success of those investments; the integration of strategic acquisitions being more difficult, time-consuming, or costly than expected; negative reactions to our policies related to the sale of firearms and accessories; vendors continuing to sell or increasingly selling their products directly to customers or through broadened or alternative distribution channels; inventory turn; changes in the competitive market and competition amongst retailers, including an increase in promotional activity; changes in consumer demand or shopping patterns and our ability to identify new trends and have the right trending products in our stores and on our website; changes in existing tax, labor and other laws and regulations, including those changing tax rates and imposing new taxes, surcharges, and tariffs; limitations on the availability of attractive retail store sites; omni-channel growth; unauthorized disclosure of sensitive or confidential customer information; risks relating to our private brand offerings and new retail concepts; website downtime, disruptions or other problems with our eCommerce platform, including interruptions, delays or downtime caused by high volumes of users or transactions, deficiencies in design or implementation, or platform enhancements; disruptions or other problems with our information systems; factors affecting our vendors, including supply chain and currency risks; talent needs and the loss of Edward W. Stack, our Chairman and Chief Executive Officer; developments with sports leagues, professional athletes or sports superstars; weather-related disruptions and seasonality of our business; and risks associated with being a controlled company.

For additional information on these and other factors that could affect our actual results, see our risk factors, which may be amended from time to time, set forth in our filings with the Securities and Exchange Commission ("SEC"), including our most recent Annual Report filed with the SEC on March 30, 2018 and our Quarterly Report filed with the SEC on August 30, 2018. The Company disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation. Forward-looking statements included in this release are made as of the date of this release.

About DICK'S Sporting Goods, Inc.
 
Founded in 1948, DICK'S Sporting Goods, Inc. is a leading omni-channel sporting goods retailer offering an extensive assortment of authentic, high-quality sports equipment, apparel, footwear and accessories. As of November 3, 2018, the Company operated 732 DICK'S Sporting Goods locations across the United States, serving and inspiring athletes and outdoor enthusiasts to achieve their personal best through a blend of dedicated associates, in-store services and unique specialty shop-in-shops dedicated to Team Sports, Athletic Apparel, Golf, Lodge/Outdoor, Fitness and Footwear.

Headquartered in Pittsburgh, PA, DICK'S also owns and operates Golf Galaxy and Field & Stream specialty stores, as well as DICK'S Team Sports HQ, an all-in-one youth sports digital platform offering a comprehensive range of services including technology solutions such as online registration and league management services, and mobile apps for scheduling, communications and live scorekeeping; team gear such as uniforms and equipment, fan wear, and access to donations and sponsorships. DICK'S offers its products through a content-rich eCommerce platform that is integrated with its store network and provides customers with the convenience and expertise of a 24-hour storefront. For more information, visit the Press Room or Investor Relations pages at dicks.com.

Contacts:
Investor Relations:
Jennifer Mejia, Manager of Investor Relations
DICK'S Sporting Goods, Inc.
investors@dcsg.com
(724) 273-3400
Media Relations:
(724) 273-5552 or press@dcsg.com
###





DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
 
 
 
13 Weeks Ended
 
 
November 3,
2018
 
% of
Sales
(2)
 
October 28,
2017
 
% of
Sales
(2)
 
 
 
 
 
 
 
 
 
Net sales
 
$
1,857,273

 
100.00
%
 
$
1,944,187

 
100.00
%
Cost of goods sold, including occupancy and distribution costs (1)
 
1,333,719

 
71.81

 
1,410,067

 
72.53

 
 
 
 
 
 
 
 
 
GROSS PROFIT
 
523,554

 
28.19

 
534,120

 
27.47

 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
468,691

 
25.24

 
475,899

 
24.48

Pre-opening expenses
 
1,997

 
0.11

 
8,220

 
0.42

 
 
 
 
 
 
 
 
 
INCOME FROM OPERATIONS
 
52,866

 
2.85

 
50,001

 
2.57

 
 
 
 
 
 
 
 
 
Interest expense
 
2,606

 
0.14

 
2,839

 
0.15

Other expense (income)
 
68

 

 
(10,768
)
 
(0.55
)
 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
50,192

 
2.70

 
57,930

 
2.98

 
 
 
 
 
 
 
 
 
Provision for income taxes
 
12,365

 
0.67

 
21,017

 
1.08

 
 
 
 
 
 
 
 
 
NET INCOME
 
$
37,827

 
2.04
%
 
$
36,913

 
1.90
%
 
 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE:
 
 

 
 

 
 

 
 

Basic
 
$
0.39

 
 
 
$
0.35

 
 

Diluted
 
$
0.39

 
 
 
$
0.35

 
 

 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 

 
 
 
 

 
 

Basic
 
96,677

 
 
 
105,466

 
 

Diluted
 
97,890

 
 
 
105,814

 
 

 
 
 
 
 
 
 
 
 
Cash dividend declared per share
 
$
0.225

 
 
 
$
0.170

 
 

 
 
 
 
 
 
 
 
 
(1) Cost of goods sold includes: the cost of merchandise (inclusive of vendor allowances, inventory shrinkage and inventory write-downs for the lower of cost and net realizable value); freight; distribution; shipping; and store occupancy costs. The Company defines merchandise margin as net sales less the cost of merchandise sold.
 
 
 
 
 
 
 
 
 
(2) Column does not add due to rounding









DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)

 
 
39 Weeks Ended
 
 
November 3,
2018
 
% of
Sales
(2)
 
October 28,
2017
 
% of
Sales(2)
 
 
 
 
 
 
 
 
 
Net sales
 
$
5,944,480

 
100.00
%
 
$
5,926,350

 
100.00
%
Cost of goods sold, including occupancy and distribution costs (1)
 
4,201,277

 
70.68

 
4,213,143

 
71.09

 
 
 
 
 
 
 
 
 
GROSS PROFIT
 
1,743,203

 
29.32

 
1,713,207

 
28.91

 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
1,434,344

 
24.13

 
1,385,506

 
23.38

Pre-opening expenses
 
6,135

 
0.10

 
28,441

 
0.48

 
 
 
 
 
 
 
 
 
INCOME FROM OPERATIONS
 
302,724

 
5.09

 
299,260

 
5.05

 
 
 
 
 
 
 
 
 
Interest expense
 
8,312

 
0.14

 
6,319

 
0.11

Other income
 
(1,233
)
 
(0.02
)
 
(28,117
)
 
(0.47
)
 
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
 
295,645

 
4.97

 
321,058

 
5.42

 
 
 
 
 
 
 
 
 
Provision for income taxes
 
78,336

 
1.32

 
113,564

 
1.92

 
 
 
 
 
 
 
 
 
NET INCOME
 
$
217,309

 
3.66
%
 
$
207,494

 
3.50
%
 
 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE:
 
 

 
 

 
 

 
 

Basic
 
$
2.20

 
 
 
$
1.92

 
 

Diluted
 
$
2.18

 
 
 
$
1.91

 
 

 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 

 
 
 
 

 
 

Basic
 
98,926

 
 
 
108,027

 
 

Diluted
 
99,878

 
 
 
108,633

 
 

 
 
 
 
 
 
 
 
 
Cash dividends declared per share
 
$
0.675

 
 
 
$
0.510

 
 

 
 
 
 
 
 
 
 
 
(1) Cost of goods sold includes: the cost of merchandise (inclusive of vendor allowances, inventory shrinkage and inventory write-downs for the lower of cost and net realizable value); freight; distribution; shipping; and store occupancy costs. The Company defines merchandise margin as net sales less the cost of merchandise sold.

 
 
 
 
 
 
 
 
 
(2) Column does not add due to rounding






DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(Dollars in thousands)
 
 
November 3,
2018
 
October 28,
2017
 
February 3,
2018
ASSETS
 
 

 
 

 
 

CURRENT ASSETS:
 
 
 
 

 
 

Cash and cash equivalents
 
$
92,103

 
$
111,815

 
$
101,253

Accounts receivable, net
 
57,559

 
88,979

 
60,107

Income taxes receivable
 
10,422

 
72,911

 
4,433

Inventories, net
 
2,196,777

 
2,178,495

 
1,711,103

Prepaid expenses and other current assets
 
138,468

 
129,876

 
129,189

Total current assets
 
2,495,329

 
2,582,076

 
2,006,085

 
 
 
 
 
 
 
Property and equipment, net
 
1,578,313

 
1,679,872

 
1,677,340

Intangible assets, net
 
131,763

 
144,896

 
136,587

Goodwill
 
250,476

 
245,126

 
250,476

Other assets:
 
 

 
 
 
 

Deferred income taxes
 
11,886

 
10,425

 
13,639

Other
 
115,991

 
122,519

 
119,812

Total other assets
 
127,877

 
132,944

 
133,451

TOTAL ASSETS
 
$
4,583,758

 
$
4,784,914

 
$
4,203,939

 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 

 
 

 
 

CURRENT LIABILITIES:
 
 

 
 

 
 

Accounts payable
 
$
1,028,234

 
$
1,061,776

 
$
843,075

Accrued expenses
 
350,737

 
378,477

 
354,181

Deferred revenue and other liabilities
 
167,781

 
161,193

 
212,080

Income taxes payable
 
2,078

 
488

 
10,476

Current portion of other long-term debt and leasing obligations
 
5,251

 
5,175

 
5,202

Total current liabilities
 
1,554,081

 
1,607,109

 
1,425,014

LONG-TERM LIABILITIES:
 
 

 
 

 
 

Revolving credit borrowings
 
382,300

 
454,700

 

Other long-term debt and leasing obligations
 
56,111

 
61,413

 
60,084

Deferred income taxes
 
14,951

 
23,710

 
10,232

Deferred rent and other liabilities
 
729,273

 
764,996

 
767,108

Total long-term liabilities
 
1,182,635

 
1,304,819

 
837,424

COMMITMENTS AND CONTINGENCIES
 
 

 
 

 
 

STOCKHOLDERS' EQUITY:
 
 

 
 

 
 

Common stock
 
703

 
797

 
783

Class B common stock
 
245

 
247

 
247

Additional paid-in capital
 
1,204,293

 
1,166,370

 
1,177,778

Retained earnings
 
2,374,336

 
2,106,086

 
2,205,651

Accumulated other comprehensive loss
 
(118
)
 
(85
)
 
(78
)
Treasury stock, at cost
 
(1,732,417
)
 
(1,400,429
)
 
(1,442,880
)
Total stockholders' equity
 
1,847,042

 
1,872,986

 
1,941,501

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
4,583,758

 
$
4,784,914

 
$
4,203,939

 
 
 
 
 
 
 







DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
(Dollars in thousands)
 
 
39 Weeks Ended
 
 
November 3,
2018
 
October 28,
2017
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 

 
 

Net income
 
$
217,309

 
$
207,494

Adjustments to reconcile net income to net cash provided by operating activities:
 
 

 
 

Depreciation and amortization
 
178,737

 
166,521

Deferred income taxes
 
(726
)
 
59,145

Stock-based compensation
 
31,783

 
24,762

Other non-cash items
 
700

 
595

Changes in assets and liabilities:
 
 

 
 

Accounts receivable
 
(7,218
)
 
(18,145
)
Inventories
 
(466,212
)
 
(539,863
)
Prepaid expenses and other assets
 
7,950

 
(20,847
)
Accounts payable
 
234,859

 
316,602

Accrued expenses
 
11,152

 
23,404

Income taxes payable / receivable
 
(14,387
)
 
(123,350
)
Deferred construction allowances
 
23,440

 
78,482

Deferred revenue and other liabilities
 
(56,859
)
 
(49,258
)
Net cash provided by operating activities
 
160,528

 
125,542

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 

 
 

Capital expenditures
 
(135,288
)
 
(386,600
)
Acquisitions, net of cash acquired
 

 
(8,500
)
Deposits and purchases of other assets
 

 
(2,344
)
Net cash used in investing activities
 
(135,288
)
 
(397,444
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 

 
 
Revolving credit borrowings
 
1,723,500

 
2,431,200

Revolving credit repayments
 
(1,341,200
)
 
(1,976,500
)
Proceeds from term loan
 

 
62,492

Payments on other long-term debt and leasing obligations
 
(3,924
)
 
(1,229
)
Construction allowance receipts
 

 

Proceeds from exercise of stock options
 

 
16,558

Minimum tax withholding requirements
 
(5,264
)
 
(5,771
)
Cash paid for treasury stock
 
(289,623
)
 
(242,119
)
Cash dividends paid to stockholders
 
(68,139
)
 
(55,375
)
Decrease in bank overdraft
 
(49,700
)
 
(10,363
)
Net cash (used in) provided by financing activities
 
(34,350
)
 
218,893

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
 
(40
)
 
47

NET DECREASE IN CASH AND CASH EQUIVALENTS
 
(9,150
)
 
(52,962
)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
 
101,253

 
164,777

CASH AND CASH EQUIVALENTS, END OF PERIOD
 
$
92,103

 
$
111,815







Store Count and Square Footage
 
The stores that opened during the third quarter of 2018 are as follows:
Store
 
Market
 
Concept
Raleigh, NC
 
Raleigh / Durham
 
DICK'S Sporting Goods (1)
North Tucson, AZ
 
Tucson
 
DICK'S Sporting Goods
Sarasota, FL
 
Sarasota
 
DICK'S Sporting Goods
North Port, FL
 
Sarasota
 
DICK'S Sporting Goods
North Spokane, WA
 
Spokane
 
DICK'S Sporting Goods
Greendale, WI
 
Milwaukee - Racine
 
DICK'S Sporting Goods (1)

The following represents a reconciliation of beginning and ending stores and square footage for the periods indicated:

Store Count:
 
 
Fiscal 2018
 
Fiscal 2017
 
 
DICK'S Sporting Goods (1)
 
Specialty Concept Stores (1)
 
Total
 
DICK'S Sporting Goods (1)
 
Specialty Concept Stores (1)
 
Total
Beginning stores
 
716

 
129

 
845

 
676

 
121

 
797

Q1 New stores
 
8

 

 
8

 
15

 
10

 
25

Q2 New stores
 
5

 

 
5

 
13

 

 
13

Q3 New stores
 
6

 

 
6

 
15

 
6

 
21

Closed stores
 
3

 

 
3

 

 
4

 
4

Ending stores
 
732

 
129

 
861

 
719

 
133

 
852

 
 
 
 
 
 
 
 
 
 
 
 
 
Relocated stores
 
4

 
1

 
5

 
6

 
1

 
7


Square Footage:
(in millions)
 
 
DICK'S Sporting Goods (1)
 
Specialty Concept Stores (1)
 
Total (2)
Q1 2017
 
36.8

 
3.5

 
40.3

Q2 2017
 
37.4

 
3.5

 
40.9

Q3 2017
 
38.2

 
3.7

 
41.9

Q4 2017
 
38.0

 
3.7

 
41.7

Q1 2018
 
38.4

 
3.7

 
42.1

Q2 2018
 
38.7

 
3.7

 
42.3

Q3 2018
 
38.8

 
3.6

 
42.4


(1) 
Includes the Company's Golf Galaxy, Field & Stream and other specialty concept stores. In some markets we operate adjacent stores on the same property with a pass-through for customers. We refer to this format as a "combo store" and include combo store openings within both the DICK'S Sporting Goods and specialty concept store reconciliations, as applicable. As of November 3, 2018, the Company operated 23 combo stores.

(2)
Amount may not recalculate due to rounding.









DICK'S SPORTING GOODS, INC.
GAAP to NON-GAAP RECONCILIATIONS - UNAUDITED
(Dollars in thousands, except per share amounts)


13 Weeks Ended October 28, 2017






Other income
Income before income taxes
Net income
Earnings per diluted share
GAAP Basis
$
(10,768
)
$
57,930

$
36,913

$
0.35

% of Net Sales
(0.55
)%
2.98
%
1.90
%


Sales tax refund (1)
8,104

(8,104
)
(5,024
)


Non-GAAP Basis
$
(2,664
)
$
49,826

$
31,889

$
0.30

% of Net Sales
(0.14
)%
2.56
%
1.64
%



(1) 
Multi-year sales tax refund. The provision for income taxes was calculated at 38%, which approximated the Company's blended tax rate.


39 Weeks Ended October 28, 2017








Selling, general and administrative expenses
Pre-opening expenses
Other income
Income before income taxes
Net income (5)
Earnings per diluted share
GAAP Basis
$
1,385,506

$
28,441

$
(28,117
)
$
321,058

$
207,494

$
1.91

% of Net Sales
23.38
%
0.48
%
(0.47
)%
5.42
%
3.50
%


Corporate restructuring charge (1)
(7,077
)


7,077

4,388



TSA conversion costs (2)

(3,474
)

3,474

2,154



Contract termination payment (3)


12,000

(12,000
)
(12,000
)


Sales tax refund (4)


8,104

(8,104
)
(5,024
)


Non-GAAP Basis
$
1,378,429

$
24,967

$
(8,013
)
$
311,505

$
197,012

$
1.81

% of Net Sales
23.26
%
0.42
%
(0.14
)%
5.26
%
3.32
%



(1) 
Severance, other employee-related costs and asset write-downs related to corporate restructuring.
(2) 
Costs related to converting former TSA stores.
(3) 
Contract termination payment. There was no related tax expense as the Company utilized net capital loss carryforwards that were previously subject to a valuation allowance.
(4) 
Multi-year sales tax refund.
(5) 
The provision for income taxes for non-GAAP adjustments was calculated at 38%, which approximated the Company's blended tax rate, unless otherwise noted.







 
53 Weeks Ended February 3, 2018
 
 
 
 
 
 
 
 
 
Cost of goods sold
Selling, general and administrative expenses
Pre-opening expenses
Other income
Income before income taxes
Net income (8)
Earnings per diluted share
GAAP Basis
$
6,101,412

$
1,982,363

$
29,123

$
(31,810
)
$
501,337

$
323,445

$
3.01

% of Net Sales
71.03
%
23.08
%
0.34
%
(0.37
)%
5.84
%
3.77
%
 
Corporate restructuring charge (1)

(7,077
)


7,077

4,388

 
TSA conversion costs (2)


(3,474
)

3,474

2,154

 
Contract termination payment (3)



12,000

(12,000
)
(12,000
)
 
Sales tax refund (4)



8,104

(8,104
)
(5,024
)
 
Loyalty program enhancement costs (5)
(11,478
)



11,478

7,231

 
Litigation contingency (6)

(6,592
)


6,592

4,153

 
Tax Act impact (7)





(24
)
 
Non-GAAP Basis
$
6,089,934

$
1,968,694

$
25,649

$
(11,706
)
$
509,854

$
324,323

$
3.01

% of Net Sales
70.89
%
22.92
%
0.30
%
(0.14
)%
5.94
%
3.78
%
 

(1) 
Severance, other employee-related costs and asset write-downs related to corporate restructuring.
(2) 
Costs related to converting former TSA stores.
(3) 
Contract termination payment. There was no related tax expense as the Company utilized net capital loss carryforwards that were previously subject to a valuation allowance.
(4) 
Multi-year sales tax refund.
(5) 
Transition costs incurred to enhance the Company's Scorecard loyalty program.
(6) 
Costs related to a litigation contingency.
(7) 
Change to blended tax rate for adjustments recorded prior to enactment of the Tax Act.
(8) 
The provision for income taxes for non-GAAP adjustments was calculated at the Company's approximate blended tax rate, unless otherwise noted.

Reconciliation of Gross Capital Expenditures to Net Capital Expenditures
 
The following table represents a reconciliation of the Company's gross capital expenditures to its capital expenditures, net of tenant allowances.


39 Weeks Ended
 

November 3,
2018

October 28,
2017
 

(dollars in thousands)
Gross capital expenditures

$
(135,288
)

$
(386,600
)
Proceeds from sale-leaseback transactions




Deferred construction allowances

23,440


78,482

Construction allowance receipts




Net capital expenditures

$
(111,848
)

$
(308,118
)



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