Dick's Sporting Goods 2006 Annual Report Download - page 33

Download and view the complete annual report

Please find page 33 of the 2006 Dick's Sporting Goods annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 70

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70

Contractual Obligations and Other Commercial Commitments
The following table summarizes the Company’s material contractual obligations, including both on- and off-balance sheet
arrangements in effect at February 3, 2007, and the timing and effect that such commitments are expected to have on the
Company’s liquidity and capital requirements in future periods:
Less than More than
Payments Due by Period Total 1 year 1–3 years 3–5 years 5 years
(Dollars in thousands)
Contractual obligations:
Senior convertible notes (see Note 7) $ 255,085 $ – $ – $ – $ 255,085
Capital lease obligations (see Note 7) 7,809 106 329 454 6,920
Other long-term debt (see Note 7) 708 46 97 105 460
Interest payments 17,194 4,879 5,625 1,452 5,238
Operating lease obligations (see Note 8) 2,819,035 230,830 472,452 463,983 1,651,770
Future minimum guaranteed contractual
payments (see Note 15) 31,350 1,000 2,750 3,600 24,000
Total contractual obligations $ 3,131,181 $ 236,861 $ 481,253 $ 469,594 $ 1,943,473
The note references above are to the Notes to Consolidated Financial Statements.
The following table summarizes the Company’s other commercial commitments, including both on- and off-balance sheet
arrangements, in effect at February 3, 2007:
Less than
Total 1 year
(Dollars in thousands)
Other commercial commitments:
Documentary letters of credit $2,901 $ 2,901
Standby letters of credit 13,613 13,613
Total other commercial commitments $ 16,514 $ 16,514
The Company expects to fund these commitments primarily with operating cash flows generated in the normal course of business.
Outlook
Full Year 2007 – (52-Week Year) Comparisons to Fiscal 2006 – (53-Week Year)
• Based on an estimated 58 million shares outstanding, the Company anticipates reporting earnings per share of approximately
$2.37 – 2.40. This represents an approximate 18% increase over earnings per share for the full year 2006 of $2.03 and includes
the expected results of Golf Galaxy.
• Comparable store sales are expected to increase approximately 2% at Dick’s Sporting Goods stores.
• The Company expects to open 45 new Dick’s stores, 17 new Golf Galaxy stores and relocate one Dick’s store in 2007.
First Quarter 2007
• Based on an estimated 57 million shares outstanding, the Company anticipates reporting earnings per share of $0.35 – 0.38
as compared to first quarter 2006 earnings per share of $0.21.
• Comparable store sales at Dick’s Sporting Goods stores are expected to increase approximately 4–6%, or approximately 3%,
adjusting for the shifted retail calendar due to the 53rd week in 2006.
• The Company expects to open 11 new Dick’s stores and 10 new Golf Galaxy stores in the first quarter.
31