8-K
Dick's Sporting Goods, Inc. (DKS)
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): May 22, 2023
DICK'S SPORTING GOODS, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-31463 | 16-1241537 |
|---|---|---|
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
345 Court Street, Coraopolis, PA 15108
(Address of Principal Executive Offices)
(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:
☐ 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))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.01 par value | DKS | The New York Stock Exchange |
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. o
TABLE OF CONTENTS
| ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION | 3 |
|---|---|
| ITEM 8.01. OTHER EVENTS | 3 |
| ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS | 3 |
| SIGNATURE | 4 |
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 23, 2023, the Company issued a press release announcing its results for the first fiscal quarter ended April 29, 2023 and certain other information that is furnished as Exhibit 99.1 to this Form 8-K.
ITEM 8.01. OTHER EVENTS
On May 22, 2023, the Board of Directors of Dick's Sporting Goods, Inc. authorized and declared a quarterly dividend in the amount of $1.00 per share on the Company's Common Stock and Class B Common Stock. The dividend is payable in cash on June 30, 2023 to stockholders of record at the close of business on June 16, 2023.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits.
The following exhibits are 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 May 23, 2023 by Dick's Sporting Goods, Inc. furnished herewith |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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.
| DICK'S SPORTING GOODS, INC. | ||
|---|---|---|
| Date: May 23, 2023 | By: | /s/ NAVDEEP GUPTA |
| Name: | Navdeep Gupta | |
| Title: | Executive Vice President – Chief Financial Officer |
Exhibit Index
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release dated May 23, 2023 by Dick's Sporting Goods, Inc. furnished herewith |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Document
| Exhibit 99.1 |
|---|
FOR IMMEDIATE RELEASE
DICK'S Sporting Goods Reports First Quarter Results; Reaffirms 2023 Outlook
– Delivers 5.3% Growth in First Quarter Net Sales –
– Delivers Strong Double-Digit EBT Margin of 11.6% –
●Delivered 3.4% growth in first quarter comparable store sales, driven by a 2.7% increase in transactions as well as higher average ticket
●Delivered earnings per diluted share of $3.40 compared to $2.47 or $2.85 on a non-GAAP basis during the prior year
●Retired remaining $59 million aggregate principal and fully settled all outstanding amounts under the Convertible Senior Notes
●Reaffirms 2023 outlook (53 week year) and continues to expect full year earnings per diluted share to be in the range of $12.90 to 13.80, including approximately $0.20 for the 53rd week, and comparable store sales to be in the range of flat to positive 2.0%
| "Our strong start to 2023 demonstrates the sustained strength of our business. We are very enthusiastic about our strategies and continue to invest in our future to fuel long-term growth opportunities, including a return to square footage growth. I'd like to thank all our teammates for how they delivered in Q1 and for their dedication to DICK'S Sporting Goods."<br><br>Ed Stack, Executive Chairman<br><br>"We are very pleased with our first quarter results. Even as consumers face macroeconomic uncertainties, our athletes have continued to prioritize sport and rely on DICK'S to meet their needs, and we continue to gain market share. Our Q1 sales grew 5.3%, driven by strong comps and healthy transaction growth, and we delivered another strong double-digit EBT margin. We remain confident in our ability to drive sales and profitability growth in 2023 and over the long term."<br><br>Lauren Hobart, President and Chief Executive Officer |
|---|
PITTSBURGH, May 23, 2023 - 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 first quarter ended April 29, 2023.
| First Quarter Operating Results<br><br>(dollars in millions, except per share data) | 13 Weeks Ended | Change (1) | |||||||
|---|---|---|---|---|---|---|---|---|---|
| April 29, 2023 | April 30, 2022 | ||||||||
| Net sales | $ | 2,842 | $ | 2,700 | $ | 142 | 5.3% | ||
| Comparable store sales | 3.4% | (8.4)% | |||||||
| Income before income taxes (% of net sales) (2) | 11.6% | 12.3% | (74) bps | ||||||
| Net income | $ | 305 | $ | 261 | $ | 44 | 17% | ||
| Earnings per diluted share | $ | 3.40 | $ | 2.47 | $ | 0.93 | 38% | ||
| Non-GAAP earnings per diluted share (3) | $ | 3.40 | $ | 2.85 | $ | 0.55 | 19% | ||
| Balance Sheet<br><br>(in millions) | As of<br><br>April 29, 2023 | As of<br><br>April 30, 2022 | Change (1) | % Change (1) | |||||
| --- | --- | --- | --- | --- | --- | --- | |||
| Cash and cash equivalents | $ | 1,643 | $ | 2,251 | (27)% | ||||
| Inventories, net | $ | 3,034 | $ | 2,825 | 7% | ||||
| Total debt (4) | $ | 1,483 | $ | 1,948 | (24)% |
All values are in US Dollars.
| Capital Allocation<br><br>(in millions) | 13 Weeks Ended | Change (1) | % Change (1) | |||||
|---|---|---|---|---|---|---|---|---|
| April 29, 2023 | April 30, 2022 | |||||||
| Share repurchases (5) | $ | 58 | $ | 42 | 37% | |||
| Dividends paid (6) | $ | 105 | $ | 46 | 127% | |||
| Gross capital expenditures | $ | 85 | $ | 74 | 15% | |||
| Net capital expenditures (3) | $ | 61 | $ | 54 | 13% | |||
| Principal paid in connection with exchange of Convertible Senior Notes (7) | $ | — | $ | 100 |
All values are in US Dollars.
Notes
1.Column may not recalculate due to rounding.
2.Also referred to by management as earnings before income taxes margin ("EBT margin").
3.In the fiscal 2023 period, there were no non-GAAP adjustments to reported earnings per diluted share. For additional information for 2022, see GAAP to non-GAAP reconciliations included in a table later in the release under the heading "GAAP to Non-GAAP Reconciliations."
4.Fiscal 2022 included debt with a carrying value of $466 million related to the Company's Convertible Senior Notes, which were fully retired as of April 29, 2023. The Company had no outstanding borrowings under its revolving credit facility in 2023 and 2022.
5.During the 13 weeks ended April 29, 2023, the Company repurchased 0.4 million shares of its common stock at an average price of $137.95 per share, for a total cost of $57.7 million under its share repurchase program. The Company has $1.4 billion remaining under its authorization as of April 29, 2023.
6.In the 2023 and 2022 periods, declared and paid quarterly dividends of $1.00 per share and $0.4875 per share, respectively.
7.During the first quarter of 2023, the Company retired the remaining $59.1 million of aggregate principal amount outstanding of the Convertible Senior Notes and related bond hedge and warrant transactions for 1.7 million shares of the Company's common stock. Refer to the Company's Form 8-K filed with the SEC on April 24, 2023 for additional information. During the first quarter of 2022, the Company exchanged $100 million aggregate principal amount of Convertible Senior Notes and unwound the corresponding portion of the convertible bond hedge and warrants for $100 million of cash and 1.8 million shares of the Company's common stock.
Quarterly Dividend
On May 22, 2023, the Company's Board of Directors authorized and declared a quarterly dividend in the amount of $1.00 per share on the Company's common stock and Class B common stock. The dividend is payable in cash on June 30, 2023 to stockholders of record at the close of business on June 16, 2023.
Full Year 2023 Outlook (53 week year)
Coming off two consecutive record years in 2020 and 2021, the Company's 2022 results provide a strong foundation upon which it will build in 2023 and in the years ahead. The Company's Full Year Outlook for 2023 is presented below:
| Metric | 2023 Outlook |
|---|---|
| Earnings per diluted share | ●$12.90 to 13.80<br><br>○Includes approximately $0.20 per diluted share for the 53rd week<br><br>○Based on approximately 88 million diluted shares outstanding<br><br>○Based on an effective tax rate of approximately 21%<br><br>○Includes the impact of the Moosejaw acquisition |
| Comparable store sales | ●Flat to positive 2.0% on a 52-week basis |
| Capital expenditures | ●$670 to 720 million on a gross basis<br><br>●$550 to 600 million on a net basis |
Store Count and Square Footage
The following tables summarize store activity for the periods indicated:
| 13 Weeks Ended April 29, 2023 | 13 Weeks Ended April 30, 2022 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DICK'S Sporting Goods (1) | Specialty Concept Stores (2) | Total (3) | DICK'S Sporting Goods | Specialty Concept Stores (2) | Total (3) | ||||||||||||
| Beginning stores | 728 | 125 | 853 | 730 | 131 | 861 | |||||||||||
| Q1 New stores | — | — | — | — | 1 | 1 | |||||||||||
| Stores acquired (4) | — | 12 | 12 | — | — | — | |||||||||||
| Closed stores | — | 2 | 2 | 1 | 3 | 4 | |||||||||||
| Ending stores | 728 | 135 | 863 | 729 | 129 | 858 | |||||||||||
| Relocated stores | 1 | — | 1 | 1 | — | 1 | Square Footage:<br><br>(in millions) | DICK'S Sporting Goods (1) | Specialty Concept Stores (2) | Total (3) (6) | |||||||
| --- | --- | --- | --- | ||||||||||||||
| Q1 2022 | 38.7 | 3.6 | 42.3 | ||||||||||||||
| Q2 2022 | 38.8 | 3.6 | 42.4 | ||||||||||||||
| Q3 2022 | 38.8 | 3.9 | 42.7 | ||||||||||||||
| Q4 2022 | 39.2 | 3.4 | 42.6 | ||||||||||||||
| Q1 2023 (5) | 39.2 | 3.4 | 42.6 |
(1)As of April 29, 2023, includes three DICK'S House of Sport stores.
(2)Includes our Golf Galaxy, Public Lands, Going Going Gone! and other specialty concept stores. As of April 29, 2023, we operated 97 Golf Galaxy stores, 7 Public Lands stores, 15 Going Going Gone! stores, and other specialty concept stores. In some markets, we operate DICK’S Sporting Goods stores adjacent to our specialty concept stores on the same property with a pass-through for our athletes. 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 April 29, 2023, the Company operated 16 combo stores.
(3)Excludes temporary Warehouse Sale store locations, of which the Company operated 39 and 17 as of April 29, 2023 and April 30, 2022, respectively.
(4)Represents Moosejaw store locations acquired by the Company during the first quarter of fiscal 2023, which average approximately 4,000 square feet per store.
(5)Includes square footage from 13 Field & Stream store closures as we plan in the near-term to convert them into DICK’S House of Sport stores, expanded DICK’S Sporting Goods stores, or other specialty concept stores.
(6)Column may not add due to rounding.
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 non-GAAP earnings per diluted share, non-GAAP diluted shares outstanding, and net capital expenditures, which management believes provides investors with useful supplemental information to evaluate the Company’s ongoing operations and to compare with past and future periods. Furthermore, management believes that adjustments related to the Convertible Senior Notes and convertible bond hedge provided a more complete view of the economics of the instruments upon conversion. Management also uses these 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. Forward-looking statements can be identified as those that may predict, forecast, indicate or imply future results or performance and by forward-looking words such as “believe”, “anticipate”, “expect”, “estimate”, “predict”, “intend”, “plan”, “project”, “goal”, “will”, “will be”, “will continue”, “will result”, “could”, “may”, “might” or any variations of such words or other words with similar meanings. These statements are subject to risks and uncertainties and change based on various important factors, many of which may be beyond the Company's control. The Company's 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 2023 outlook for earnings, sales, and capital expenditures; the belief that we will continue to build off of a strong foundation; share repurchases and dividends.
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: macroeconomic conditions, including inflationary pressures, rising interest rates, and disruption of supply chains, whether due to COVID-19, the conflict in Ukraine or otherwise, and the effectiveness of measures to mitigate such impact on our business; changes in consumer discretionary spending; changes in consumer demand or shopping patterns and the ability to identify new trends and have the right trending products in stores and online; changes in the competitive market and competition amongst retailers, including competition for talent and the level of competitive promotional activity; investments in omni-channel growth or other business transformation initiatives not producing the anticipated benefits within the expected time-frame or at all; risks relating to vertical brands and new retail concepts; the size of strategic investments and the timing and success of those investments; inventory turnover and supply chain disruptions; weather-related disruptions and seasonality of the Company's business; changes in existing tax, labor, foreign trade and other laws and regulations, including those imposing new taxes, surcharges, and tariffs, and compliance with such laws and regulations; increasing labor and wage costs; limitations on the availability of attractive retail store sites; unauthorized disclosure of sensitive or confidential customer information; website downtime, disruptions or other problems with the 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 information systems; increasing direct competition from vendors (including shipping directly or through broadened distribution channels) and increasing product costs due to various reasons, including foreign trade issues, currency exchange rate fluctuations, and increasing prices for raw materials due to inflation; changes to the corporate tax rates or an imposition of excise tax with respect to share repurchase activity; risks associated with brick and mortar retail store model, including the ability to optimize our store lease portfolio and our distribution and fulfillment network; litigation risks and our ability to protect our trademarks and other intellectual property; our ability to hire and retain quality teammates, including store managers and sales associates; negative reactions from customers, vendors and shareholders regarding Company policy changes and advocacy efforts related to social and political issues; the loss of key personnel; risks related to our indebtedness; and the issuance of dividends.
For additional information on these and other factors that could affect the Company's actual results, see the risk factors set forth in the Company's filings with the Securities and Exchange Commission ("SEC"), including the most recent Annual Report filed with the SEC on March 23, 2023. 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.
Conference Call Info
The Company will host a conference call today at 10:00 a.m. Eastern Time to discuss the first 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 twelve months.
About DICK'S Sporting Goods, Inc.
DICK’S Sporting Goods (NYSE: DKS) creates confidence and excitement by inspiring, supporting and personally equipping all athletes to achieve their dreams. Founded in 1948 and headquartered in Pittsburgh, the leading omnichannel retailer serves athletes and outdoor enthusiasts in more than 850 DICK’S Sporting Goods, Golf Galaxy, Public Lands, Moosejaw, Going Going Gone! and Warehouse Sale stores, online, and through the DICK’S mobile app. DICK’S also owns and operates DICK’S House of Sport and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile platform for live streaming, scheduling, communications and scorekeeping.
Driven by its belief that sports have the power to change lives, DICK’S has been a longtime champion for youth sports and, together with its Foundation, has donated millions of dollars to support under-resourced teams and athletes through the Sports Matter program and other community-based initiatives. Additional information about DICK’S business, corporate giving, sustainability efforts and employment opportunities can be found on dicks.com, investors.dicks.com, sportsmatter.org, dickssportinggoods.jobs and on Facebook, Twitter and Instagram.
Contacts:
Investor Relations:
Nate Gilch, Senior Director of Investor Relations
DICK'S Sporting Goods, Inc.
investors@dcsg.com
(724) 273-3400
Media Relations:
(724) 273-5552 or press@dcsg.com
Category: Earnings
DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(In thousands, except per share data)
| 13 Weeks Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| April 29,<br>2023 | % of<br><br>Sales | April 30,<br>2022 | % of<br><br>Sales | |||||
| Net sales | $ | 2,842,181 | 100.00 | % | $ | 2,700,205 | 100.00 | % |
| Cost of goods sold, including occupancy and distribution costs | 1,813,564 | 63.81 | 1,715,491 | 63.53 | ||||
| GROSS PROFIT | 1,028,617 | 36.19 | 984,714 | 36.47 | ||||
| Selling, general and administrative expenses | 693,904 | 24.41 | 615,293 | 22.79 | ||||
| Pre-opening expenses | 9,090 | 0.32 | 2,900 | 0.11 | ||||
| INCOME FROM OPERATIONS | 325,623 | 11.46 | 366,521 | 13.57 | ||||
| Interest expense | 15,043 | 0.53 | 25,642 | 0.95 | ||||
| Other (income) expense | (17,707) | (0.62) | 9,022 | 0.33 | ||||
| INCOME BEFORE INCOME TAXES | 328,287 | 11.55 | 331,857 | 12.29 | ||||
| Provision for income taxes | 23,638 | 0.83 | 71,298 | 2.64 | ||||
| NET INCOME | $ | 304,649 | 10.72 | % | $ | 260,559 | 9.65 | % |
| EARNINGS PER COMMON SHARE: | ||||||||
| Basic | $ | 3.67 | $ | 3.42 | ||||
| Diluted | $ | 3.40 | $ | 2.47 | ||||
| NUMERATOR USED TO COMPUTE EARNINGS PER COMMON SHARE: | ||||||||
| Basic | $ | 304,649 | $ | 260,559 | ||||
| Diluted | $ | 304,986 | $ | 268,768 | ||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||
| Basic | 83,071 | 76,181 | ||||||
| Diluted | 89,664 | 108,629 |
DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
(In thousands)
| April 29,<br>2023 | April 30,<br>2022 | January 28,<br>2023 | ||||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 1,642,680 | $ | 2,251,338 | $ | 1,924,386 |
| Accounts receivable, net | 132,788 | 76,253 | 71,286 | |||
| Income taxes receivable | 16,249 | 1,639 | 8,187 | |||
| Inventories, net | 3,034,202 | 2,824,832 | 2,830,917 | |||
| Prepaid expenses and other current assets | 117,070 | 102,603 | 128,410 | |||
| Total current assets | 4,942,989 | 5,256,665 | 4,963,186 | |||
| Property and equipment, net | 1,372,776 | 1,305,137 | 1,312,988 | |||
| Operating lease assets | 2,207,631 | 2,048,151 | 2,138,366 | |||
| Intangible assets, net | 63,600 | 86,160 | 60,364 | |||
| Goodwill | 250,398 | 245,857 | 245,857 | |||
| Deferred income taxes | 31,282 | 66,080 | 41,189 | |||
| Other assets | 239,136 | 211,750 | 230,246 | |||
| TOTAL ASSETS | $ | 9,107,812 | $ | 9,219,800 | $ | 8,992,196 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Accounts payable | $ | 1,220,003 | $ | 1,491,931 | $ | 1,206,066 |
| Accrued expenses | 495,743 | 462,085 | 508,573 | |||
| Operating lease liabilities | 466,911 | 476,343 | 546,755 | |||
| Income taxes payable | 44,865 | 80,023 | 29,624 | |||
| Deferred revenue and other liabilities | 297,633 | 292,457 | 350,428 | |||
| Total current liabilities | 2,525,155 | 2,802,839 | 2,641,446 | |||
| LONG-TERM LIABILITIES: | ||||||
| Revolving credit borrowings | — | — | — | |||
| Senior Notes | 1,482,565 | 1,481,664 | 1,482,336 | |||
| Convertible Senior Notes | — | 466,026 | 58,271 | |||
| Long-term operating lease liabilities | 2,256,068 | 2,095,314 | 2,117,773 | |||
| Other long-term liabilities | 169,854 | 179,351 | 167,747 | |||
| Total long-term liabilities | 3,908,487 | 4,222,355 | 3,826,127 | |||
| COMMITMENTS AND CONTINGENCIES | ||||||
| STOCKHOLDERS' EQUITY: | ||||||
| Common stock | 617 | 544 | 585 | |||
| Class B common stock | 236 | 236 | 236 | |||
| Additional paid-in capital | 1,405,767 | 1,368,211 | 1,416,847 | |||
| Retained earnings | 5,096,789 | 4,212,451 | 4,878,404 | |||
| Accumulated other comprehensive loss | (345) | (89) | (252) | |||
| Treasury stock, at cost | (3,828,894) | (3,386,747) | (3,771,197) | |||
| Total stockholders' equity | 2,674,170 | 2,194,606 | 2,524,623 | |||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 9,107,812 | $ | 9,219,800 | $ | 8,992,196 |
DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
(In thousands)
| 13 Weeks Ended | ||||
|---|---|---|---|---|
| April 29,<br>2023 | April 30,<br>2022 | |||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
| Net income | $ | 304,649 | $ | 260,559 |
| Adjustments to reconcile net income to net cash used in operating activities: | ||||
| Depreciation and amortization | 82,348 | 79,673 | ||
| Amortization of deferred financing fees and debt discount | 637 | 1,371 | ||
| Deferred income taxes | 9,907 | (1,791) | ||
| Stock-based compensation | 12,809 | 15,177 | ||
| Other, net | (1,464) | 264 | ||
| Changes in assets and liabilities: | ||||
| Accounts receivable | (25,991) | (17,435) | ||
| Inventories | (166,582) | (527,223) | ||
| Prepaid expenses and other assets | (11,913) | (6,138) | ||
| Accounts payable | (99,959) | 237,076 | ||
| Accrued expenses | (70,362) | (132,185) | ||
| Income taxes payable / receivable | 7,383 | 66,898 | ||
| Construction allowances provided by landlords | 23,684 | 19,891 | ||
| Deferred revenue and other liabilities | (42,183) | (35,047) | ||
| Operating lease assets and liabilities | (71,343) | (21,391) | ||
| Net cash used in operating activities | (48,380) | (60,301) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
| Capital expenditures | (84,507) | (73,783) | ||
| Proceeds from sale of other assets | 27,500 | 14,261 | ||
| Other investing activities | (31,360) | (10,780) | ||
| Net cash used in investing activities | (88,367) | (70,302) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
| Principal paid in connection with exchange of Convertible Senior Notes | (137) | (100,000) | ||
| Payments on finance lease obligations | (198) | (178) | ||
| Proceeds from exercise of stock options | 12,370 | 12,665 | ||
| Minimum tax withholding requirements | (94,695) | (33,287) | ||
| Cash paid for treasury stock | (57,701) | (67,909) | ||
| Cash dividends paid to stockholders | (104,783) | (46,081) | ||
| Increase (decrease) in bank overdraft | 100,278 | (26,467) | ||
| Net cash used in financing activities | (144,866) | (261,257) | ||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (93) | (7) | ||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (281,706) | (391,867) | ||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,924,386 | 2,643,205 | ||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 1,642,680 | $ | 2,251,338 |
DICK'S SPORTING GOODS, INC.
GAAP to NON-GAAP RECONCILIATIONS - UNAUDITED
Non-GAAP Earnings Per Share Reconciliation
(in thousands, except per share amounts)
| 13 Weeks Ended April 30, 2022 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income | After tax interest from Convertible Senior Notes (2) | Numerator used to compute earnings per diluted share | Weighted average diluted shares | Earnings per diluted share | ||||||||
| GAAP Basis | $ | 260,559 | $ | 8,209 | $ | 268,768 | 108,629 | $ | 2.47 | |||
| % of Net Sales | 9.65 | % | 0.30 | % | 9.95 | % | ||||||
| Convertible Senior Notes (1) | — | (8,209) | (8,209) | (17,080) | ||||||||
| Non-GAAP Basis | $ | 260,559 | $ | — | $ | 260,559 | 91,549 | $ | 2.85 | |||
| % of Net Sales | 9.65 | % | — | % | 9.65 | % |
(1)Adjustment eliminates the impact of assumed share settlement of the Convertible Senior Notes as required by “the if-converted method” under GAAP. The Company retired its Convertible Senior Notes without dilutive effect, due to cash payments for principal, shares received from its convertible bond hedge and shares repurchased to offset share settlement of remaining $59.1 million principal during the 13 weeks ended April 29, 2023. Accordingly, the Company believes reflecting the notes as debt more closely represents the economics of the transaction.
(2)The provision for income taxes for non-GAAP adjustments was calculated at 26% which approximated the Company's blended tax rate.
Reconciliation of Gross Capital Expenditures to Net Capital Expenditures
(in thousands)
The following table represents a reconciliation of the Company's gross capital expenditures to its capital expenditures, net of tenant allowances.
| 13 Weeks Ended | ||||
|---|---|---|---|---|
| April 29,<br>2023 | April 30,<br>2022 | |||
| Gross capital expenditures | $ | (84,507) | $ | (73,783) |
| Construction allowances provided by landlords | 23,684 | 19,891 | ||
| Net capital expenditures | $ | (60,823) | $ | (53,892) |