Dick's Sporting Goods 2008 Annual Report Download - page 26

Five-Year Financial Summary
Fiscal Year 20081 20071 20061 2005 2004
(Dollars in thousands, except per share and sales per square foot data)
Statement of Income Data:
Net sales $ 4,130,128 $ 3,888,422 $ 3,114,162 $ 2,624,987 $ 2,109,399
Cost of goods sold 2 2,946,079 2,730,359 2,217,463 1,887,347 1,522,873
Gross profi t 1,184,049 1,158,063 896,699 737,640 586,526
Selling, general and administrative expenses 928,170 870,415 682,625 556,320 443,776
Impairment of goodwill and other intangible assets 3 164,255 — — — —
Impairment of store assets 3 29,095 — — — —
Merger integration and store closing costs 15,877 — — 37,790 20,336
Pre-opening expenses 16,272 18,831 16,364 10,781 11,545
Income from operations 30,380 268,817 197,710 132,749 110,869
Gain on sale of non-cash investment 4 — — — (1,844) (10,981)
Gain on sale of asset 4 (2,356) — — — —
Interest expense, net 10,963 11,290 10,025 12,959 8,009
Other income — — — — (1,000)
Income before income taxes 21,773 257,527 187,685 121,634 114,841
Provision for income taxes 56,867 102,491 75,074 48,654 45,936
Net (loss) income $ (35,094) $ 155,036 $ 112,611 $ 72,980 $ 68,905
Earnings per Common Share 5:
Net (loss) income per common share — Basic $ (0.31) $ 1.42 $ 1.10 $ 0.73 $ 0.72
Net (loss) income per common share — Diluted $ (0.31) $ 1.33 $ 1.02 $ 0.68 $ 0.65
Weighted average number of common shares
outstanding (in thousands):
Basic 111,662 109,383 102,512 99,584 95,956
Diluted 111,662 116,504 110,790 107,958 105,842
Store Data:
Comparable store net sales (decrease) increase 6 (4.8%) 2.4% 6.0% 2.6% 2.6%
Number of stores at end of period 7 487 434 294 255 234
Total square feet at end of period 7 23,592,850 21,084,292 16,724,171 14,650,459 13,514,869
Net sales per square foot 8 $ 186 $ 196 $ 197 $ 188 $ 195
Other Data:
Gross profi t margin 28.7% 29.8% 28.8% 28.1% 27.8%
Selling, general and administrative percentage
of net sales 22.5% 22.4% 21.9% 21.2% 21.0%
Operating margin 0.7% 6.9% 6.3% 5.1% 5.3%
Inventory turnover 9 3.06x 3.22x 3.34x 3.42x 3.56x
Depreciation and amortization $ 90,732 $ 75,052 $ 54,929 $ 49,861 $ 37,621
Balance Sheet Data:
Inventories $ 854,771 $ 887,364 $ 641,464 $ 535,698 $ 457,618
Working capital 10 $ 434,389 $ 307,746 $ 304,796 $ 142,748 $ 128,388
Total assets $ 1,966,524 $ 2,035,635 $ 1,524,265 $ 1,187,789 $ 1,085,048
Total debt including capital lease obligations $ 181,864 $ 181,435 $ 181,017 $ 181,201 $ 258,004
Retained earnings $ 433,880 $ 468,974 $ 315,453 $ 202,842 $ 129,862
Total stockholders’ equity $ 895,582 $ 888,520 $ 620,550 $ 414,793 $ 313,667
1 In the fi rst quarter of fi scal 2006, we adopted the fair value recognition provisions of Statement of Financial Accounting Standards (“SFAS”) No. 123 (revised 2004),
Share-Based Payment (“123(R)”), requiring us to recognize expense related to the fair value of our stock-based compensation awards. We elected the modifi ed
prospective transition method as permitted by SFAS No. 123(R) and, accordingly, fi nancial results for years prior to fi scal 2006 have not been restated. Pre-tax
stock-based compensation expense in fi scal 2008, 2007 and 2006 was $25.6 million, $29.0 million and $24.3 million, respectively.
2 Cost of goods sold includes the cost of merchandise, occupancy, freight and distribution costs, and shrink expense.
3 In fi scal 2008, the Company recorded non-cash impairment charges of $164.3 million attributable to the impairment of Golf Galaxy’s goodwill and other intangible
assets. The Company also recorded non-cash impairment charges of $29.1 million in connection with certain underperforming Dick’s Sporting Goods, Golf Galaxy and
Chick’s Sporting Goods stores.
4 Gain 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 predefi ned amount that resulted in this non-cash investment. Gain on
sale of asset resulted from the Company exercising a buyout option on an aircraft lease and subsequently selling the aircraft.
5 Earnings per share data gives effect to two-for-one stock splits effected in October 2007 and April 2004.
6 Comparable 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 Golf Galaxy stores will be included in the full year comparable
store base beginning in fi scal 2009.
7 The store count and square footage amounts include Golf Galaxy and Chick’s for fi scal 2008 and 2007.
8 Calculated 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 offi ce space that generally occupies approximately 18% of total store space in our Dick’s stores.
9 Calculated as cost of goods sold divided by the average monthly ending inventories of the last 13 months.
10 Defi ned as current assets less current liabilities.
DICK’S SPORTING GOODS, INC. 2008 ANNUAL REPORT
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