EXHIBIT 99.1
Contact: | Gary Smith |
| Vice-President & |
| Chief Financial Officer |
| (205) 942-4292 |
HIBBETT REPORTS FISCAL FIRST QUARTER 2008 RESULTS
BIRMINGHAM, Ala. (May 24, 2007) – Hibbett Sports, Inc. (NASDAQ/GS: HIBB), a sporting goods retailer, today announced results for the first quarter ended May 5, 2007.
Financial Highlights
Net sales for the 13-week period ended May 5, 2007 increased 5.5% to $133.8 million compared with $126.9 million for the 13-week period ended April 29, 2006. Comparable store sales increased 0.7% on a comparable store, comparable week basis. Net income for the first quarter was $10.2 million compared with $11.5 million in the prior-year period. Earnings per diluted share was $0.32 compared with $0.35 in the prior year.
Each quarter of fiscal 2008 starts one week later than the same quarter of fiscal 2007, due to the Company’s 2007 fiscal year having 53 weeks versus the normal 52 weeks. This timing shift can have a significant impact on quarterly sales comparisons. The measurement of sales in comparable stores for comparable weeks above is based on sales during the thirteen weeks ended May 5, 2007 in relation to the thirteen weeks ended May 6, 2006. On a fiscal quarter basis, comparing the thirteen weeks ended May 5, 2007 with the thirteen weeks ended April 29, 2006, comparable store sales decreased 2.6%.
Hibbett opened 9 new stores and closed 2 stores during the first quarter, bringing the store base to 620 in 23 states as of May 5, 2007. The Company plans to open 15 to 18 stores and close 2 to 3 stores in the second quarter. The Company plans to open 90 to 95 stores and close 5 to 10 stores in fiscal 2008.
Mickey Newsome, Chairman and Chief Executive Officer, stated, "As expected, the shift of the first week in February from the first quarter into last year’s fourth quarter negatively impacted our overall sales and our comparable store sales on a fiscal basis. Through the first nine weeks of the quarter, the Company was slightly above its earnings per share forecast. A very difficult retail environment in the month of April prevented us from maintaining that earnings pace and led to earnings at the lower end of our guidance for the first quarter of fiscal 2008. Positive sales results in technical apparel, youth products and team sports equipment offset some softness experienced in our urban enclosed mall stores."
Fiscal 2008 Outlook
For the second quarter ending August 4, 2007, the Company expects to report earnings per diluted share of $0.20 to $0.24 with a comparable store sales increase in the high single digits. The Company maintained its EPS guidance for the 52-week period ending February 2, 2008 of $1.30 to $1.35 per diluted share.
Stock Repurchase
During the first quarter, the Company repurchased 338,000 shares of common stock for a total expenditure of $9.9 million, bringing the total shares repurchased since the inception of the program in August 2004 to 4.6 million shares for a total expenditure of $107.2 million. After considering past stock repurchases, $42.8 million of the total authorization remained for future stock repurchases at the end of the first quarter of fiscal 2008.
Investor Conference Call and Simulcast
Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on May 25, 2007, to discuss the first quarter results. The number to call for this interactive teleconference is (913) 981-4905. A replay of the conference call will be available until June 1, 2007, by dialing (719) 457-0820 and entering the passcode, 1448409.
The Company will also provide an online Web simulcast and rebroadcast of its fiscal 2007-first quarter conference call. The live broadcast of Hibbett's quarterly conference call will be available online at www.streetevents.com and www.earnings.com on May 25, 2007, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call and continue through June 1, 2007.
Hibbett Sports, Inc. operates sporting goods stores in small to mid-sized markets, predominately in the Sunbelt, Mid-Atlantic and Midwest. The Company’s primary store format is Hibbett Sports, a 5,000-square-foot store located in dominant 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 company growth, store opening and closing plans, sales (including comparable store sales), sale shifts and earnings expectations. Such statements are subject to risks and uncertainties that could cause actual results to differ materially, including economic conditions, industry trends, merchandise trends, vendor relationships, customer demand, and competition. For a complete description of these factors, as well as others which could affect our business, you should carefully review the "Risk Factors," "Business," and "MD&A" sections in our Annual Report on Form 10-K filed on April 4, 2007 and our most recent prospectus supplement filed May 2, 2003. In light of these risks and uncertainties, the future events, developments or results described by our forward looking statements in this document could turn out to be materially and adversely different from those we discuss or imply. We are not obligated to release publicly any revisions to any forward looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so.
HIBBETT SPORTS, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
| | | First Quarter Ended |
| | | May 5, | | April 29, |
| | | 2007 | | 2006 |
Net sales | | $ | 133,842 | | $ | 126,914 |
Cost of goods sold, including distribution center | | | | | | |
| and store occupancy costs | | | 88,789 | | | 82,774 |
| Gross profit | | | 45,053 | | | 44,140 |
Store operating, selling and administrative expenses | | | 26,031 | | | 23,310 |
Depreciation and amortization | | | 2,920 | | | 2,705 |
| Operating income | | | 16,102 | | | 18,125 |
Interest income, net | | | 393 | | | 321 |
| Income before provision for income taxes | | | 16,495 | | | 18,446 |
Provision for income taxes | | | 6,268 | | | 6,923 |
| Net income | | $ | 10,227 | | $ | 11,523 |
| | | | | | | |
Net income per common share: | | | | | | |
| Basic earnings per share | | $ | 0.32 | | $ | 0.35 |
| Diluted earnings per share | | | 0.32 | | $ | 0.35 |
Weighted average shares outstanding: | | | | | | |
| Basic | | | 31,671 | | | 32,478 |
| Diluted | | | 32,219 | | | 33,131 |
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
| | May 5, | | April 29, | | February 3, |
| | 2007 | | 2006 | | 2007 |
Assets | | | | | | | | |
Cash and cash equivalents | $ | 18,704 | | $ | 15,335 | | $ | 30,367 |
Short-term investments | | 292 | | | 11,427 | | | -- |
Accounts receivable, net | | 3,963 | | | 5,209 | | | 4,651 |
Inventories, net | | 133,371 | | | 116,142 | | | 125,240 |
Prepaid expenses and other | | 6,953 | | | 6,072 | | | 6,631 |
| Total current assets | | 163,283 | | | 154,185 | | | 166,889 |
Property and equipment, net | | 42,104 | | | 37,860 | | | 42,573 |
Other assets | | 1,105 | | | 3,246 | | | 3,391 |
| Total assets | $ | 206,492 | | $ | 195,291 | | $ | 212,853 |
| | | | | | | | | |
Liabilities and Stockholders’ Investment | | | | | | | | |
Accounts payable | $ | 36,578 | | $ | 39,954 | | $ | 42,016 |
Accrued expenses | | 15,299 | | | 14,374 | | | 18,445 |
| Total current liabilities | | 51,877 | | | 54,328 | | | 60,461 |
Non-current liabilities | | 15,574 | | | 14,845 | | | 15,751 |
Stockholders’ investment | | 139,041 | | | 126,118 | | | 136,641 |
| Total liabilities and stockholders’ investment | $ | 206,492 | | $ | 195,291 | | $ | 212,853 |
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