PITTSBURGH, May 22 /PRNewswire-FirstCall/ — Dick’s Sporting Goods, Inc. today reported sales and earnings resultsfor the first quarter ended May 3, 2003.
Net income for the first quarter ended May 3, 2003 increased 41% to $6.7million, and increased 17% to $0.28 per diluted share, compared to $4.7 million or$0.24 per diluted share, respectively, for the quarter ended May 4, 2002. Earnings per share increased at a lower percentage than net income due to moreshares being outstanding this year as a result of the Company’s IPO lastOctober. For the quarter, total sales increased 10% to $304.7 million. Comparablestore sales decreased 0.9%.
Net income for the first quarter increased 37% to $6.7 million and earningsper share increased 27% to $0.28 per diluted share, compared to pro- forma netincome of $4.9 million or $0.22 per diluted share in the first quarter of lastyear.
Prior period pro-forma results include a reduction of interest expense and anincrease in diluted shares as if the Company had consummated its initialpublic offering at the beginning of the first quarter last year rather than on theOctober 15, 2002 effective date.
“Sales in the first quarter started off below our plan due to the extendedwinter weather throughout the majority of our markets, as we discussed on ourMarch 13 conference call. However, as the weather warmed up, we saw theexpected strength in our sales results, which continued through the end of thequarter. We also were able to continue the growth of our gross margin rates,resulting in earnings in excess of our previous guidance,” said Edward W. Stack,Chairman and CEO.
First Quarter Store Openings
As of May 3, 2003, the Company operated 149 stores in 26 states. SinceFebruary 1, 2003, the Company has opened eight new stores. These stores includeopenings in:
– Mooresville, NC (the fifth store in the greater Charlotte, NC market);
– Warwick, RI and N. Attleboro, MA (the first two stores in the Providence, RI market);
– East Brunswick, NJ (the third store in Northern N.J.);
– Orange, CT;
– Wichita, KS (the second store in this market);
– Lynnhaven Mall, Virginia Beach, VA (the first store in the Virginia Beach market) and
– Clarksburg, WV
Second Quarter and Full-Year Outlook
The Company’s current outlook for the full year and second quarter of 2003 isbased on current expectations and includes “forward-looking statements”within the meaning of Section 27A of the Securities Act and Section 21E of theExchange Act as described later in this release. Although the Company believesthat comments reflected in such forward-looking statements are reasonable, itcan give no assurance that such expectations will prove to be correct.
Second Quarter 2003
– The Company expects to open one store during the second quarter, in East Hanover, NJ.
– Net income is expected to be $14.3-$14.8 million, compared to last year’s pro-forma net income of $11.9 million (or $11.7 million on a GAAP basis) in the second quarter, an increase of 20-24% (or an increase of 22-26% on a GAAP basis).
– Based on an estimated 24.6 million diluted shares outstanding, EPS for the second quarter is expected to be $0.58-0.60 per diluted share, a 9-13% increase over pro-forma EPS (or a decrease of 3% to even on a GAAP basis) in the prior year’s second quarter of $0.53 (or $0.60 on a GAAP basis). There will be more shares outstanding in the second quarter of this year as compared to last year due to the Company’s initial public offering in October 2002.
Full Year 2003
The Company reaffirmed the outlook for the full year as provided on March 13,2003.
– The Company expects to open 20 stores during the year.
– Comparable sales are expected to increase approximately 2-3%.
– Net income is expected to be $48.0 million, compared to last year’s pro-forma net income of $38.6 million (or $38.3 million on a GAAP basis), an increase of 24% (or an increaase of 25% on a GAAP basis).
– Based on an estimated 24.6 million diluted shares outstanding, the Company expects to report EPS for the full year of $1.95 per diluted share, compared to pro-forma EPS of $1.72 in the prior year (or $1.87 on a GAAP basis).
Except for historical information contained herein, the statements in thisrelease are forward-looking and made pursuant to the safe harbor provisions ofthe Private Securities Litigation Reform Act of 1995. You can identify thesestatements by forward-looking words such as “may,” “will,” “expect,”"anticipate,” “believe,” “guidance,” “estimate,” “intend,” “predict,” and “continue” orsimilar words. Forward-looking statements involve known and unknown risks anduncertainties, which may cause the Company’s actual results in future periodsto differ materially from forecasted results. Those risks and uncertaintiesare more fully described in the Company’s Annual Report on Form 10-K as filedwith the Securities and Exchange Commission on April 29, 2003. The Companydisclaims any obligation to update any such factors or to publicly announceresults of any revisions to any of the forward-looking statements contained hereinto reflect future events or developments.
About Dick’s Sporting Goods, Inc.
Pittsburgh-based Dick’s Sporting Goods, Inc. is an authentic full-linesporting goods retailer offering a broad assortment of brand-name sporting goodsequipment, apparel, and footwear in a specialty store environment. As of May 3,2003, the Company operated 149 stores in 26 states throughout the Eastern halfof the U.S.