Dick's Sporting Goods 2006 Annual Report Download - page 26

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Fiscal Year 2006 2005 2004 2003 2002
(Dollars in thousands, except per share and sales per square foot data)
Statement of Income Data:
Net sales $ 3,114,162$2,624,987 $ 2,109,399 $ 1,470,845 $ 1,272,584
Cost of goods sold12,217,4631,887,347 1,522,873 1,062,820 934,956
Gross profit 896,699 737,640 586,526 408,025 337,628
Selling, general and administrative expenses 682,625 556,320 443,776 314,885 262,755
Merger integration and store closing costs –37,790 20,336 ––
Pre-opening expenses 16,36410,781 11,545 7,499 6,000
Income from operations 197,710 132,749 110,869 85,641 68,873
(Gain) on sale / loss on write-down
of non-cash investment2,3 –(1,844) (10,981) (3,536)2,447
Interest expense, net 10,025 12,959 8,009 1,831 2,864
Other income –– (1,000) – –
Income before income taxes 187,685 121,634 114,841 87,346 63,562
Provision for income taxes 75,074 48,654 45,936 34,938 25,425
Net income $ 112,611 $ 72,980 $ 68,905 $ 52,408 $ 38,137
Earnings per Common Share4:
Net income per common share – Basic $2.20 $1.47 $ 1.44 $ 1.17 $ 1.08
Net income per common share – Diluted $2.03 $1.35 $ 1.30 $ 1.04 $ 0.93
Weighted average number of common shares
outstanding (in thousands):
Basic 51,25649,792 47,978 44,774 35,458
Diluted 55,39553,979 52,921 50,280 40,958
Store Data:
Comparable store net sales increase56.0% 2.6%2.6%2.1% 5.1%
Number of stores at end of period 294 255 234 163 141
Total square feet at end of period 16,724,171 14,650,459 13,514,869 7,919,138 6,807,021
Net sales per square foot6$197 $188 $195 $ 193 $ 192
Other Data:
Gross profit margin 28.8% 28.1% 27.8% 27.7% 26.5%
Selling, general and administrative percentage of net sales 21.9%21.2% 21.0% 21.4% 20.7%
Operating margin 6.3% 5.1% 5.3% 5.8% 5.4%
Inventory turnover73.34x 3.42x 3.56x3.69x3.83x
Depreciation and amortization $54,929$49,861 $ 37,621 $ 17,554 $ 14,420
Balance Sheet Data:
Inventories $641,464$ 535,698 $ 457,618 $ 254,360 $ 233,497
Working capital8$ 304,796 $ 142,748 $ 128,388 $ 136,679 $ 55,102
Total assets $ 1,524,265$ 1,187,789 $ 1,085,048 $ 543,360 $ 413,529
Total debt including capital lease obligations $ 181,017 $ 181,201 $ 258,004 $ 3,916 $ 3,577
Retained earnings $315,453 $ 202,842 $ 129,862 $ 60,957 $ 8,549
Total stockholders’ equity $620,550 $ 414,793 $ 313,667 $ 240,894 $ 138,823
1Cost of goods sold includes the cost of merchandise, occupancy, freight and distribution costs, and shrink expense.
2Gain on sale of investment resulted from the sale of a portion of the Company’s non-cash investment in its third-party Internet commerce service provider. We
converted to an equity ownership in that provider in lieu of royalties until Internet sales reached a predefined amount that resulted in this non-cash investment.
3The loss on write-down of non-cash investment resulted from a write-down of the investment in our third-party Internet commerce service provider due to a
decline in the value of that company’s publicly traded stock.
4Earnings per share data gives effect to the two-for-one stock split, in the form of a stock dividend, which became effective on April 5, 2004.
5Comparable store sales begin in a store’s 14th full month of operations after its grand opening. Comparable store sales are for stores that opened at least 13
months prior to the beginning of the period noted. Stores that were closed or relocated during the applicable period have been excluded from comparable store
sales. Each relocated store is returned to the comparable store base after its 14th full month of operations. The former Galyan’s stores will be included in the full
year comparable store base beginning in 2007.
6Calculated using net sales and gross square footage of all stores open at both the beginning and the end of the period. Gross square footage includes the storage,
receiving and office space that generally occupies approximately 18% of total store space.
7Calculated as cost of goods sold divided by the average monthly ending inventories of the last 13 months.
8Defined as current assets less current liabilities.
DICK’S SPORTING GOODS, INC. 2006 ANNUAL REPORT
24
FIVE–YEAR FINANCIAL SUMMARY