Hibbett Sports 2007 Annual Report Download - page 56

- 44 -
The following table sets forth the computation of basic and diluted earnings per share:
Fiscal Year Ended
February 3,
2007
January 28,
2006
January 29,
2005
Net income, in thousands $ 38,073 $ 33,624 $ 25,147
Weighted average number of common
shares outstanding 32,094,127 33,605,568 34,855,682
Stock options 500,478 787,458 834,681
Restricted stock 25,234 - -
Weighted average number of common
shares outstanding and dilutive securities 32,619,839 34,393,026 35,690,363
Basic earnings per common share $ 1.19 $ 1.00 $ 0.72
Diluted earnings per common share $ 1.17 $ 0.98 $ 0.70
In calculating diluted earnings per share for the fifty-three weeks ended February 3, 2007, options to
purchase 274,406 shares of common stock were outstanding as of the end of the period, but were not included in the
computation of diluted earnings per share due to their anti-dilutive effect. In calculating diluted earnings per share for
the fifty-two weeks ended January 28, 2006 and January 29, 2005, options to purchase 49,000 and 32,903 shares of
common stock, respectively, were outstanding as of the end of the respective periods, but were not included in the
computations of diluted earnings per share due to their anti-dilutive effect.
NOTE 5. DEBT
As of February 3, 2007, the Company had one unsecured credit facility, which is renewable annually in
November. The facility allows for borrowings up to $15.0 million at a rate based on prime at the Company’s election
or another mutually agreed upon fixed rate at the time of draw. As of February 3, 2007, the Company had no
borrowings outstanding under its facility. Under the provisions of this facility, the Company does not pay commitment
fees and is not subject to covenant requirements. The Company can draw down on the line of credit when its main
operating account balance falls below $100,000.
During the majority of fiscal 2007, the Company had two operating facilities allowing borrowings up to $25.0
million. Effective November 2006, we elected to renew only one facility that allows borrowings up to $15.0 million.
There were twenty-four days during the fifty-three weeks ended February 3, 2007, where the Company incurred
borrowings against our credit facilities for an average and maximum borrowing of approximately $2.5 million and $5.1
million and an average interest rate of 6.12%. At February 3, 2007, $15.0 million was available to the Company from
its facility.
NOTE 6. PROFIT-SHARING PLAN
The Company maintains a 401(k) profit-sharing plan (the “Plan”) which permits participants to make pre-tax
contributions to the Plan. The Plan covers all employees who have completed one year of service and who are at
least 21 years of age. Participants of the Plan may voluntarily contribute from 1% to 100% of their compensation
subject to certain yearly dollar limitations as allowed by law. These elective contributions are made under the
provisions of Section 401(k) of the Internal Revenue Code which allows deferral of income taxes on the amount
contributed to the Plan. The Company’s contribution to the Plan equals (1) an amount determined at the discretion of
the Board of Directors plus (2) a matching contribution equal to a discretionary percentage of up to 6% of a
participant’s compensation. For fiscal 2007, the Company matched 75% of contributions made to the plan by the
employees up to 6% of the employee’s compensation. Contribution expense amounts for fiscal years 2007, 2006
and 2005 were approximately $520,000, $491,000 and $462,000, respectively.
NOTE 7. RELATED-PARTY TRANSACTIONS
The Company leases one store under a sublease arrangement from Books-A-Million, Inc., of which Clyde B.
Anderson, a director of the Company, is an executive officer, Chairman and stockholder. This sublease agreement