SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) March 10, 2004
Hibbett Sporting Goods, Inc.
(Exact Name Of Registrant As Specified In Its Charter)
Commission file number: 000-20969
Delaware 63-1074067
-------- ----------
(State of (I.R.S. Employer
Incorportation) Indentification No.)
451 Industrial Lane
Birmingham, Alabama 35211
(Address of Principal Executive Offices)
(205) 942-4292
(Registrant's telephone number, including area code)
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
( c )
Exhibits.
These exhibits are furnished pursuant to Item 9 and Item 12 and shall not be
deemed to be "filed".
Exhibit No. Description
99.1 Earnings Release Dated March 10, 2004
99.2 Press Release Dated March 10, 2004
Item 9. Regulation FD Disclosure
Hibbett Sporting Goods, Inc. announced that Mickey Newsome, President and
Chief Executive Officer, has been named as Chairman of the Board. John F.
Megrue, Jr. is relinquishing his role as Chairman and retiring from the Board
effective as of March 10, 2004. The Company intends to fill the vacant Board
seat. A copy of the press release is attached hereto as Exhibit 99.2.
The information in this Report, including Exhibit 99.2 attached hereto, is
furnished solely pursuant to Item 9 of this Form 8-K. Consequently, it is not
deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of
1934, or otherwise subject to the liabilities of that section. It may only be
incorporated by reference in another filing under the Exchange Act or Securities
Act of 1933 if such subsequent filing specifically references this Form 8-K.
Item 12. Results of Operations and Financial Condition
Hibbett Sporting Goods, Inc. announced its financial results for the fourth
quarter and fiscal year ended January 31, 2004, in a press release issued on
March 10, 2004. A copy of the earnings release is attached hereto as Exhibit
99.1.
The information in this Report, including Exhibit 99.1 attached hereto, is
furnished solely pursuant to Item 12 of this Form 8-K. Consequently, it is not
deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of
1934, or otherwise subject to the liabilities of that section. It may only be
incorporated by reference in another filing under the Exchange Act or Securities
Act of 1933 if such subsequent filing specifically references this Form 8-K.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HIBBETT SPORTING GOODS, INC.
By /s/ Gary A. Smith
------------------------------------------
Gary A. Smith
Vice President and Chief Financial Officer
March 10, 2004
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EXHIBIT INDEX
Exhibit
99.1 Earnings Release dated March 10, 2004
99.2 Press Release dated March 10, 2004
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EXHIBIT 99.1
[Hibbett Sporting Goods, Inc. Letterhead]
Contact: Gary Smith
Chief Financial Officer
(205) 942-4292
HIBBETT REPORTS RECORD FOURTH QUARTER RESULTS
- Comparable Store Sales Up 8.3%
- Earnings per Share Increases 36.7%
- Announces Three-for-Two Stock Split
BIRMINGHAM, Ala. (March 10, 2004) - Hibbett Sporting Goods, Inc.
(NASDAQ/NM: HIBB), a rapidly growing, full-line sporting goods retailer, today
announced record results for the fourth quarter and fiscal year ended January
31, 2004.
Financial Highlights
Net sales for the 13-week period ended January 31, 2004, increased 20.8% to
$91.2 million compared with $75.5 million for the 13-week period ended February
1, 2003. Comparable store sales increased 8.3% in the fourth quarter of fiscal
2004. Net income for the fourth fiscal quarter increased 41.3% to $6.5 million
compared with $4.6 million in the fourth fiscal quarter of last year. Earnings
per diluted share increased 36.7% to $0.41 from $0.30 in the prior year.
Excluding earnings of $.02 per diluted share attributable to the sale of a
leasehold interest in the prior-year period, the Company's earnings were $0.28
per diluted share for the fourth quarter of fiscal 2003.
Net sales for the 52-week period ended January 31, 2004, increased 15.0% to
$321.0 million compared with $279.2 million for the 52-week period ended
February 1, 2003. Comparable store sales increased 5.3% in fiscal 2004. Net
income for fiscal 2004 increased 38.1% to $20.3 million compared with $14.7
million in fiscal 2003. Diluted earnings per share increased 34.4% to $1.29 from
$0.96 in the prior year. Excluding earnings of $.02 per diluted share
attributable to the favorable lease disposition in the fourth quarter of fiscal
2003, the Company's earnings were $0.94 per diluted share for the 2003 fiscal
year.
Hibbett opened 24 new stores during the fourth quarter. For the year, the
Company opened 65 stores and closed eight, bringing the store base to 428
stores. Hibbett expects to open approximately 65 new stores, net of store
closings, in fiscal 2005.
Mickey Newsome, Chairman, President and Chief Executive Officer, stated,
"We are pleased to see all three of our merchandise categories performing well
and establishing good momentum heading into the first quarter. The record sales
we achieved during the fourth quarter led to another record for operating
margins. For the first time as a public company our quarterly operating margin
exceeded 11%, a 150-basis point improvement over the prior year. The full year
margin reached 9.95%, its highest level ever. Consistent with a trend we have
cited throughout much of the year, we again sold more merchandise at full price
and relied less on clearance resulting in a year-over-year improvement in
product margin. Leveraging occupancy costs and warehouse efficiencies generated
the balance of the improvement as we were able to more than offset the one-time
gain from lease dispositions a year ago."
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Three-for-Two Stock Split
Hibbett also announced that its Board of Directors has approved a
three-for-two stock split. The stock split will be effected in the form of a 50%
stock dividend, and the new shares will be distributed on or about April 16,
2004, to stockholders of record on April 1, 2004. Following the effective date
of the split, the Company will have approximately 23,300,000 shares of common
stock outstanding, 1,324,702 shares which may be issued upon the exercise of
outstanding options and 810,149 which may be issued upon the exercise of options
which may be granted in the future under the Company's stock option plans or
issued in the future under the Company's stock purchase plan.
Fiscal 2005 Outlook
The Company issued guidance for the year ending January 29, 2005, of
earnings per diluted share of approximately $1.52 to $1.56 and a comparable
store sales increase in the range of 4% to 5%. For the first quarter ending May
1, 2004, the Company expects to report earnings per diluted share of
approximately $0.45 to $0.47 and a comparable store sales increase in the range
of 5% to 6%.
Mr. Newsome added, "Our guidance for fiscal 2005 projects an earnings
increase of approximately 20% for the year. Given the strong results in the
second half of fiscal 2004, we believe it is prudent to expect at this point in
time that second half comparable sales results will be closer to our historical
range of 3% to 4%. We have considerable sales momentum to start the year, and we
expect to provide a better view of the second half as the year progresses."
The per share results reported herein reflect the effect of the
three-for-two stock split that was distributed on July 15, 2003, to stockholders
of record on June 27, 2003.
Investor Conference Call and Simulcast
Hibbett Sporting Goods, Inc. will conduct a conference call at 10:00 am EST
on March 11, 2004, to discuss the fourth quarter results. The number to call for
this interactive teleconference is (913) 981-5508. A replay of the conference
call will be available until March 18th, by dialing (719) 457-0820 and entering
the passcode, 782557.
The Company will also provide an online Web simulcast and rebroadcast of
its fiscal 2004-fourth quarter conference call. The live broadcast of Hibbett's
quarterly conference call will be available online at www.streetevents.com and
www.fulldisclosure.com on March 11, 2004, beginning at 10:00 a.m. EST. The
online replay will follow shortly after the call and continue through March 25,
2004.
Hibbett Sporting Goods, Inc. is a rapidly growing operator of full-line
sporting goods stores in small to mid-sized markets, predominantly in the
southeastern United States. The Company's primary store format is Hibbett
Sports, a 5,000-square-foot store located in enclosed malls and dominant strip
centers.
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A WARNING ABOUT FORWARD LOOKING STATEMENTS: Certain matters discussed in
this press release are "forward looking statements" as that term is used in the
Private Securities Litigation Reform Act of 1995. Forward looking statements
address future events, developments or results and typically use words such as
believe, anticipate, expect, intend, plan, forecast, guidance, outlook, or
estimate. For example, our forward looking statements include statements
regarding store opening plans, merchandise performance, our announced stock
split, and future earnings and comparable store sales. Such statements are
subject to risks and uncertainties that could cause actual results to differ
materially, including economic conditions, industry trends, merchandise trends,
vendor relationships, customer demand, and competition. For a complete
description of these factors, as well as others which could affect our business,
you should carefully review the "Risk Factors," "Business," and "MD&A" sections
in our Annual Report on Form 10-K filed on April 25, 2003 (as amended by a
filing on May 3, 2003), our Quarterly Report on Form 10-Q filed December 16,
2003, and our most recent prospectus supplement filed May 2, 2003. In light of
these risks and uncertainties, the future events, developments or results
described by our forward looking statements in this document could turn out to
be materially and adversely different from those we discuss or imply. We are not
obligated to release publicly any revisions to any forward looking statements
contained in this press release to reflect events or circumstances occurring
after the date of this report and you should not expect us to do so.
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HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES
UNAUDITED STATEMENTS OF OPERATIONS
(Dollars In Thousands, Except Per Share Amounts)
January 31, February 1, January 31, February 1,
2004 2003 2004 2003
----------- ----------- ----------- -----------
(13 Weeks) (13 Weeks) (52 Weeks) (52 Weeks)
Net sales $ 91,222 $ 75,473 $ 320,964 $ 279,187
Cost of goods sold, including warehouse,
distribution, and store occupancy costs 62,216 52,369 218,565 193,383
----------- ----------- ----------- -----------
Gross profit 29,006 23,104 102,399 85,804
Store operating, selling, and administrative expenses 16,943 14,076 63,194 55,529
Depreciation and amortization 1,897 1,753 7,267 6,866
----------- ----------- ----------- -----------
Operating income 10,166 7,275 31,938 23,409
Interest expense, net (31) 42 (106) 214
----------- ----------- ----------- -----------
Income before provision for income taxes 10,197 7,233 32,044 23,195
Provision for income taxes 3,722 2,640 11,696 8,466
----------- ----------- ----------- -----------
Net income $ 6,475 $ 4,593 $ 20,348 $ 14,729
=========== =========== =========== ===========
Net Income per common share:
Basic earnings per share $ 0.42 $ 0.30 $ 1.33 $ 0.98
=========== =========== =========== ===========
Diluted earnings per share $ 0.41 $ 0.30 $ 1.29 $ 0.96
=========== =========== =========== ===========
Weighted average shares outstanding:
Basic 15,476 15,108 15,343 15,053
=========== =========== =========== ===========
Diluted 15,903 15,414 15,732 15,357
=========== =========== =========== ===========
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Unaudited Condensed Balance Sheet
(In Thousands)
January 31, February 1,
2004 2003
----------- -----------
Assets
Cash and cash equivalents $ 41,963 $ 12,016
Accounts receivable, net 3,594 3,371
Inventories 94,777 86,246
Prepaid expenses and other 1,925 1,558
----------- -----------
Total current assets 142,259 103,191
Property and equipment, net 26,173 26,205
Other assets 130 184
----------- -----------
Total assets $168,562 $129,580
=========== ===========
Liabilities and stockholders' investment
Accounts payable $ 37,976 $ 24,869
Accrued expenses 7,093 7,361
----------- -----------
Total current liabilities 45,069 32,230
----------- -----------
Long-term debt -- --
Non-current deferred income tax 603 --
Stockholders' investment 122,890 97,350
----------- -----------
Total liabilities and stockholders' investment $168,562 $129,580
=========== ===========
-END-
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EXHIBIT 99.2
[Hibbett Sporting Goods, Inc. Letterhead]
Contact: Gary Smith
Chief Financial Officer
(205) 942-4292
HIBBETT SPORTING GOODS NAMES MICKEY NEWSOME
CHAIRMAN OF THE BOARD
BIRMINGHAM, Ala. (March 10, 2004) - Hibbett Sporting Goods, Inc.
(NASDAQ/NM:HIBB) today announced that the Board of Directors has named Mickey
Newsome, President and Chief Executive Officer, to serve as Chairman of the
Board. John F. Megrue, Jr. is relinquishing his role as Chairman and retiring
from the Board, effective immediately. Mr. Newsome will also remain President
and Chief Executive Officer.
Mr. Megrue had been Chairman since 1995, when Saunders, Karp & Megrue, L.P.
acquired a controlling interest in Hibbett. Saunders, Karp & Megrue completed
the sale of its remaining ownership interest in the Company in May 2003. The
Company intends to fill the vacant Board seat.
Commenting on the announcement, Mr. Megrue, stated, "After nine years as
Chairman, I felt it was the right time to devote more attention to Saunders,
Karp & Megrue's growing roster of investments. Mickey has been instrumental in
leading Hibbett from 13 stores in 1980 to a base of 428 today and developing a
deep and experienced management team. He is the natural and best choice to lead
Hibbett."
Mr. Newsome added, "On behalf of my fellow shareholders and over 3,000
associates, I would like to thank John for his many contributions to Hibbett
Sporting Goods. Our great company would not enjoy the position it does today
without his long-term vision and commitment. I am honored to accept this new
role with Hibbett."
Hibbett Sporting Goods, Inc. is a rapidly growing operator of full-line
sporting goods stores in small to mid-sized markets, predominantly in the
southeastern United States. The Company's primary store format is Hibbett
Sports, a 5,000-square-foot store located in enclosed malls and dominant strip
centers.
-END-
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