Hibbett Sports 2012 Annual Report Download - page 49

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NOTE 4. EARNINGS PER SHARE
The computation of basic earnings per share (EPS) is based on the number of weighted average common shares
outstanding during the period. The computation of diluted EPS is based on the weighted average number of shares outstanding
plus the incremental shares that would be outstanding assuming exercise of dilutive stock options and issuance of restricted stock.
The number of incremental shares is calculated by applying the treasury stock method. The following table sets forth the
computation of basic and diluted earnings per share:
January 28, January 29, January 30,
2012 2011 2010
Net income, in thousands 59,060$ 46,400$ 32,549$
Weighted average number of common shares
outstanding 26,978,176 28,425,781 28,629,023
Dilutive stock options 176,845 264,420 281,213
Dilutive restricted stock 351,367 343,024 178,510
Weighted average number of common shares
outstanding and dilutive shares 27,506,388 29,033,225 29,088,746
Basic earnings per share 2.19$ 1.63$ 1.14$
Diluted earnings per share 2.15$ 1.60$ 1.12$
Fiscal Year Ended
In calculating diluted earnings per share for Fiscal 2012 and Fiscal 2011, there were no options to purchase shares of
common stock outstanding as of the end of the period that were excluded in the computations of diluted earnings per share due to
their anti-dilutive effect. In calculating diluted earnings per share for Fiscal 2010, options to purchase 304,361 shares of common
stock were outstanding as of the end of the period, but were not included in the computations of diluted earnings per share due to
their anti-dilutive effect.
We excluded 137,800 nonvested stock awards granted to certain employees from the computation of diluted weighted
average common shares and common share equivalents outstanding, because they are subject to performance-based annual
vesting conditions which had not been achieved by the end of Fiscal 2012. Assuming the performance criteria had been achieved
at target as of January 28, 2012, the incremental dilutive impact would have been 65,179 shares.
NOTE 5. DEBT
At January 28, 2012, we had two unsecured credit facilities, which are renewable in August and November 2012. The
August facility allows for borrowings up to $30.0 million at a rate equal to the higher of prime rate, the federal funds rate plus
0.5% or LIBOR. The November facility allows for borrowings up to $50.0 million at a rate of prime plus 2%. Under the
provisions of both facilities, we do not pay commitment fees and are not subject to covenant requirements. We did not have any
borrowings against either of these facilities during Fiscal 2012, nor was there any debt outstanding under either of these facilities
at January 28, 2012. At January 28, 2012, a total of $80.0 million was available to us from these facilities.
At January 29, 2011, we had two unsecured credit facilities, which were renewable in August and November 2011.
The August facility allowed for borrowings up to $30.0 million at a rate equal to the higher of prime rate, the federal funds rate
plus 0.5% or LIBOR. The November facility allowed for borrowings up to $50.0 million at a rate of prime plus 2%. There were
10 days during Fiscal 2011, where we incurred borrowings against our credit facilities for an average and maximum borrowing of
$5.3 million and $10.8 million, respectively, at an average interest rate of 2.28%. At January 29, 2011, a total of $80.0 million
was available to us from these facilities.
NOTE 6. LEASES
We have entered into capital leases for certain property and technology hardware. At January 28, 2012, the total capital
lease obligation was $2.2 million, of which $0.2 million was classified as a short-term liability and included in short-term debt
and capital lease obligations and $2.0 million was classified as a long-term liability as obligations under capital leases in our
consolidated balance sheet. At January 29, 2011, the total capital lease obligation was $2.6 million, of which $0.3 million was
classified as a short-term liability and included in short-term debt and capital lease obligations and $2.3 million was classified as
a long-term liability as obligations under capital leases in our consolidated balance sheet. The cost basis of total assets under
capital lease obligations at January 28, 2012 and January 29, 2011 was $2.4 million and $2.7 million, respectively, with
accumulated amortization at January 28, 2012 and January 29, 2011 of $0.3 million each.