Hibbett Sports, Inc. (NASDAQ/GS: HIBB):

  • Achieves Record Third Quarter Operating Margin
  • Comparable Store Sales Increases 7.0%
  • EPS Increases 34.1%
  • Increases Fiscal 2012 Guidance

Hibbett Sports, Inc. (NASDAQ/GS: HIBB), a sporting goods retailer, today announced results for the third quarter ended October 29, 2011.

Financial Highlights

Net sales for the 13-week period ended October 29, 2011 increased 10.6% to $185.2 million compared with $167.4 million for the 13-week period ended October 30, 2010. Comparable store sales increased 7.0%. Net income for the 13-week period ended October 29, 2011 increased 26.8% to $16.0 million compared with $12.6 million for the 13-week period ended October 30, 2010. Earnings per diluted share increased 34.1% to $0.59 compared with $0.44 for the 13-week period ended October 30, 2010.

Net sales for the 39-week period ended October 29, 2011 increased 10.2% to $542.0 million compared with $491.7 million for the 39-week period ended October 30, 2010. Comparable store sales increased 6.6%. Net income for the 39-week period ended October 29, 2011, was $43.2 million compared with $33.9 million for the 39-week period ended October 30, 2010. Earnings per diluted share increased 34.5% to $1.56 compared with $1.16 for the 39-week period ended October 30, 2010.

Jeff Rosenthal, President and Chief Executive Officer, stated, "We are pleased to report the eighth consecutive quarter of comparable store sales increases and a record third quarter operating margin. Strong footwear and apparel sales, improved inventory management, and operational excellence continue to drive our results. We look forward to the holiday season and have increased our full year Fiscal 2012 guidance."

For the third quarter, Hibbett opened 16 new stores, expanded 4 high performing stores and closed 3 underperforming stores, bringing the store base to 815 in 26 states as of October 29, 2011. In the fourth quarter, Hibbett anticipates opening 19 to 21 new stores and closing 1 to 3 underperforming stores. In Fiscal 2012, the Company expects to open 51 to 53 new stores, expand 16 high performing stores and close 16 to 18 stores.

Liquidity and Stock Repurchases

Hibbett ended the third quarter of Fiscal 2012 with $53.0 million of available cash and cash equivalents on the consolidated balance sheet, no bank debt and full availability under its $80.0 million unsecured credit facilities.

During the third quarter, the Company repurchased 698,880 shares of common stock for a total expenditure of $25.4 million. Approximately $154.8 million of the current $250.0 million authorization remains for future stock repurchases.

Fiscal 2012 Outlook

The Company increased its earnings guidance for Fiscal 2012 to a range of $2.05 to $2.11 per diluted share with an expected comparable store sales increase in the mid-single digit range for the fourth quarter.

Investor Conference Call and Simulcast

Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, November 18, 2011, to discuss third quarter Fiscal 2012 results. The number to call for the live interactive teleconference is (212) 231-2900. A replay of the conference call will be available until November 25, 2011, by dialing (402) 977-9140 and entering the passcode, 21544092.

The Company will also provide an online Web simulcast and rebroadcast of its Fiscal 2012 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 18, 2011, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call and continue through November 25, 2011.

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 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, expansion and closing plans, liquidity, sales trends, earnings per diluted share and comparable sales for Fiscal 2012, and merchandising, inventory management, operations and stock repurchase plans. 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 29, 2011, and the "MD&A" section on our Quarterly Reports on Form 10-Q filed on June 3 and September 6, 2011. 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)
       
Thirteen Weeks Ended Thirty-Nine Weeks Ended
October 29, October 30, October 29, October 30,
2011 2010 2011 2010
Net sales $ 185,180 $ 167,420 $ 541,963 $ 491,745
Cost of goods sold, distribution center
and store occupancy costs   117,361   108,361   347,714   321,803
Gross profit 67,819 59,059 194,249 169,942

Store operating, selling and administrative expenses

39,514 35,603 115,855 105,459
Depreciation and amortization   3,334   3,369   9,914   10,238
Operating income 24,971 20,087 68,480 54,245
Interest expense, net   51   13   168   64
Income before provision for income taxes 24,920 20,074 68,312 54,181
Provision for income taxes   8,961   7,486   25,076   20,239
Net income $ 15,959 $ 12,588 $ 43,236 $ 33,942
 
Net income per common share:
Basic earnings per share $ 0.60 $ 0.45 $ 1.59 $ 1.19
Diluted earnings per share $ 0.59 $ 0.44 $ 1.56 $ 1.16
 
Weighted average shares outstanding:
Basic   26,748   28,209   27,154   28,582
Diluted   27,266   28,802   27,681   29,185
 

 

Unaudited Condensed Consolidated Balance Sheets
(In thousands)
   
October 29, January 29,
2011 2011
Assets
Cash and cash equivalents $ 53,001 $ 75,517
Accounts receivable, net 6,542 5,385
Inventories, net 197,203 174,878
Prepaid expenses and other   12,162   13,561
Total current assets 268,908 269,341
Property and equipment, net 39,556 40,056
Other assets   4,814   4,868
Total assets $ 313,278 $ 314,265
 
Liabilities and Stockholders' Investment
Accounts payable $ 85,053 $ 75,986
Short-term capital leases 211 312
Accrued expenses   14,902   18,036
Total current liabilities 100,166 94,334
Non-current liabilities 18,034 19,843
Stockholders' investment   195,078   200,088
Total liabilities and stockholders' investment $ 313,278 $ 314,265

Hibbett Sports, Inc.
Gary A. Smith, 205-942-4292
Senior Vice President & Chief Financial Officer