EXHIBIT 99.1
Co ntact: | | Gary Smith |
| | | Vice President & |
| | | Chief Financial Officer |
| | | (205) 942-4292 |
HIBBETT REPORTS THIRD QUARTER 2010 RESULTS
| · | Raises Guidance for Fiscal 2010 |
| · | Authorizes Stock Repurchase Program of $250.0 Million |
BIRMINGHAM, Ala. (November 19, 2009) – Hibbett Sports, Inc. (NASDAQ/GS: HIBB), a sporting goods retailer, today announced results for the third quarter ended October 31, 2009.
Financial Highlights
Net sales for the 13-week period ended October 31, 2009, increased 4.1% to $145.9 million compared with $140.1 million for the 13-week period ended November 1, 2008. Comparable store sales decreased 0.2%. Net income for the 13-week period ended October 31, 2009, increased 14.7% to $8.8 million compared with $7.7 million for the 13-week period ended November 1, 2008. Earnings per diluted share increased 14.0% to $0.30 compared with $0.26 for the 13-week period ended November 1, 2008.
Net sales for the 39-week period ended October 31, 2009, were $426.7 million compared with $416.3 million for the 39-week period ended November 1, 2008. Comparable store sales decreased 2.5%. Net income for the 39-week period ended October 31, 2009, was $20.8 million compared with $21.8 million for the 39-week period ended November 1, 2008. Earnings per diluted share was $0.72 compared with $0.75 for the 39-week period ended November 1, 2008.
Mickey Newsome, Chairman and Chief Executive Officer, stated, "We entered the third quarter with our inventories in excellent shape and saw overall improvement in the quarter due to merchandise selection and tight expense control. We were able to improve margins and liquidity with a solid cash generation on a slight decline in comparable store sales. While footwear was negative for the quarter and continues to be a challenge, we saw improvement over the second quarter. Apparel, accessories, equipment and cleated footwear all posted positive same store sales in the third quarter, and we expect that trend to continue in the fourth quarter.”
For the quarter, Hibbett opened seven new stores and closed two stores, bringing the store base to 764 in 24 states as of October 31, 2009. For Fiscal 2010, the Company plans to open 42 new stores and close approximately 20 stores while expanding 18 to 20 high performing stores.
Liquidity
Hibbett ended the third quarter with $24.8 million of available cash and cash equivalents on the consolidated balance sheet, no debt and full availability under its current $80 million unsecured credit facilities. At quarter end a year ago, the Company had $6.5 million in cash and cash equivalents and $14.9 million in debt.
Stock Repurchase Program
The Board of Directors of the Company authorized a new Stock Repurchase Program (Program) of $250.0 million expiring on February 2, 2013. Effective immediately, the new Program replaces the existing authorization which was due to expire on January 30, 2010. Under the prior authorization, the Company had purchased 7,761,813 shares of common stock to date at a cost of $167.0 million.
Fiscal 2010 Outlook
The Company updated its earnings guidance for the fiscal year ending January 30, 2010, to a range of $0.95 to $1.02 per diluted share from the previous guidance of $0.85 to $0.95 per diluted share. Comparable store sales for the fourth quarter of Fiscal 2010 are expected to range between -2.0% and 2.0%.
Investor Conference Call and Simulcast
Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, November 20, 2009, to discuss third quarter results. The number to call for the live interactive teleconference is (212) 231-2917. A replay of the conference call will be available until November 27, 2009, by dialing (402) 977-9140 and entering the passcode, 21440718.
The Company will also provide an online Web simulcast and rebroadcast of its Fiscal 2010 third quarter conference call. The live broadcast of Hibbett's quarterly conference call will be available online at www.hibbett.com under Investor Relations, www.streetevents.com and www.earnings.com on Friday, November 20, 2009, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call and continue through November 27, 2009.
Hibbett Sports, Inc. operates sporting goods stores in small to mid-sized markets, predominately in the Southeast, Southwest, Mid-Atlantic and the lower Midwest regions of the United States. 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 store opening plans, liquidity and earnings and sales trend expectations for Fiscal 2010. 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, 2009. 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.
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HIBBETT SPORTS, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
| | | Thirteen Weeks Ended | | | Thirty-Nine Weeks Ended | |
| | | October 31, | | | November 1, | | | October 31, | | | November 1, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| Net sales | | $ | 145,855 | | | $ | 140,148 | | | $ | 426,673 | | | $ | 416,262 | |
| Cost of goods sold, distribution center | | | | | | | | | | | | | | | | |
| and store occupancy costs | | | 96,218 | | | | 93,456 | | | | 287,553 | | | | 279,493 | |
| Gross profit | | | 49,637 | | | | 46,692 | | | | 139,120 | | | | 136,769 | |
| Store operating, selling and administrative | | | | | | | | | | | | | | | | |
| expenses | | | 32,168 | | | | 31,073 | | | | 95,353 | | | | 91,041 | |
| Depreciation and amortization | | | 3,525 | | | | 3,587 | | | | 10,327 | | | | 10,452 | |
| Operating income | | | 13,944 | | | | 12,032 | | | | 33,440 | | | | 35,276 | |
| Interest expense, net | | | 2 | | | | 153 | | | | 36 | | | | 523 | |
| Income before provision for income taxes | | | 13,942 | | | | 11,879 | | | | 33,404 | | | | 34,753 | |
| Provision for income taxes | | | 5,167 | | | | 4,227 | | | | 12,608 | | | | 12,938 | |
| Net income | | $ | 8,775 | | | $ | 7,652 | | | $ | 20,796 | | | $ | 21,815 | |
| | | | | | | | | | | | | | | | | |
| Net income per common share: | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.31 | | | $ | 0.27 | | | $ | 0.73 | | | $ | 0.76 | |
| Diluted earnings per share | | $ | 0.30 | | | $ | 0.26 | | | $ | 0.72 | | | $ | 0.75 | |
| | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 28,646 | | | | 28,495 | | | | 28,616 | | | | 28,551 | |
| Diluted | | | 29,100 | | | | 28,930 | | | | 29,045 | | | | 28,983 | |
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
| | | October 31, | | | November 1, | | | January 31, | |
| | | 2009 | | | 2008 | | | 2009 | |
| Assets | | | | | | | | | |
| Cash and cash equivalents | | $ | 24,819 | | | $ | 6,525 | | | $ | 20,650 | |
| Inventories, net | | | 171,202 | | | | 162,315 | | | | 151,776 | |
| Other current assets | | | 13,039 | | | | 16,472 | | | | 13,339 | |
| Total current assets | | | 209,060 | | | | 185,312 | | | | 185,765 | |
| Property and equipment, net | | | 42,120 | | | | 44,764 | | | | 45,309 | |
| Other assets | | | 3,884 | | | | 4,024 | | | | 4,013 | |
| Total assets | | $ | 255,064 | | | $ | 234,100 | | | $ | 235,087 | |
| | | | | | | | | | | | | |
| Liabilities and Stockholders' Investment | | | | | | | | | | | | |
| Accounts payable | | $ | 61,445 | | | $ | 59,199 | | | $ | 64,460 | |
| Short-term debt and capital leases | | | 110 | | | | 14,943 | | | | - | |
| Other current liabilities | | | 12,946 | | | | 11,985 | | | | 14,250 | |
| Total current liabilities | | | 74,501 | | | | 86,127 | | | | 78,710 | |
| Non-current liabilities | | | 18,242 | | | | 20,249 | | | | 19,802 | |
| Stockholders' investment | | | 162,321 | | | | 127,724 | | | | 136,575 | |
| Total liabilities and stockholders' investment | | $ | 255,064 | | | $ | 234,100 | | | $ | 235,087 | |
END OF EXHIBIT 99.1
