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TheStreet Open House

Big 5 Sporting Goods Corporation Announces Fiscal 2009 Fourth Quarter And Full-Year Results

Quarterly Cash Dividend

The Company's Board of Directors has declared a quarterly cash dividend of $0.05 per share of outstanding common stock, which will be paid on March 22, 2010 to stockholders of record as of March 8, 2010.

Guidance

For the fiscal 2010 first quarter, the Company expects same store sales in the positive low single-digit range and earnings per diluted share in the range of $0.17 to $0.23.  For comparative purposes, the Company's earnings per diluted share for the first quarter of fiscal 2009 were $0.13.  

Store Openings

The Company opened two new stores during the fourth quarter of fiscal 2009, bringing its store count at the end of fiscal 2009 to 384 stores, from 381 stores at the end of fiscal 2008.  During the fiscal 2010 first quarter, the Company anticipates opening three new stores, including one relocation. The Company currently anticipates opening between 10 and 15 new stores, net of relocations, during fiscal 2010.

Conference Call Information

The Company will host a conference call and audio webcast today, March 2, 2010, at 2:00 p.m. Pacific ( 5:00 p.m. EST) to discuss financial results for the fiscal 2009 fourth quarter and full year.  To access the conference call, participants in North America should dial (888) 510-1765, and international participants should dial (719) 325-2189.  Participants are encouraged to dial in to the conference call ten minutes prior to the scheduled start time.  The call will also be broadcast live over the Internet and accessible through the Investor Relations section of the Company's website at www.big5sportinggoods.com.  Visitors to the website should select the "Investor Relations" link to access the webcast.  The webcast will be archived and accessible on the same website for 30 days following the call.  A telephone replay will be available through March 16, 2010 by calling (888) 203-1112; passcode is 9748194.

About Big 5 Sporting Goods Corporation

Big 5 is a leading sporting goods retailer in the western United States, operating 384 stores in 11 states under the "Big 5 Sporting Goods" name.  Big 5 provides a full-line product offering in a traditional sporting goods store format that averages 11,000 square feet.  Big 5's product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, snowboarding and in-line skating.

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties and other factors that may cause Big 5's actual results in current or future periods to differ materially from forecasted results. Those risks and uncertainties include, among other things, continued or worsening weakness in the consumer spending environment and the U.S. financial and credit markets, the competitive environment in the sporting goods industry in general and in Big 5's specific market areas, inflation, product availability and growth opportunities, seasonal fluctuations, weather conditions, changes in cost of goods, operating expense fluctuations, disruption in product flow, changes in interest rates, credit availability, higher costs associated with current and new sources of credit resulting from uncertainty in financial markets and economic conditions in general. Those and other risks and uncertainties are more fully described in Big 5's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 28, 2008 and its Quarterly Report on Form 10-Q for the fiscal quarter ended September 27, 2009. Big 5 conducts its business in a highly competitive and rapidly changing environment. Accordingly, new risk factors may arise. It is not possible for management to predict all such risk factors, nor to assess the impact of all such risk factors on Big 5's business or the extent to which any individual risk factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Big 5 undertakes no obligation to revise or update any forward-looking statement that may be made from time to time by it or on its behalf.

    
    
                                FINANCIAL TABLES FOLLOW
    
                            BIG 5 SPORTING GOODS CORPORATION                  
                          CONDENSED CONSOLIDATED BALANCE SHEETS               
                                       (Unaudited)                            
                          (In thousands, except share amounts)                
                                                                              
                                                      January 3,  December 28,
                                                         2010         2008    
                                                      ---------   -----------
                              ASSETS                                         
                                                                             
    Current assets:                                                          
       Cash and cash equivalents                       $5,765        $9,058 
       Accounts receivable, net of allowances 
        of $223 and $305, respectively                 13,398        16,611 
       Merchandise inventories, net                   230,911       232,962 
       Prepaid expenses                                 9,683         8,201 
       Deferred income taxes                            7,723         8,333 
                                                        -----         ----- 
             Total current assets                     267,480       275,165 
                                                      -------       ------- 
                                                                            
    Property and equipment, net                        81,817        94,241 
    Deferred income taxes                              11,327        13,363 
    Other assets, net of accumulated amortization
     of $346 and $293, respectively                     1,065         1,155 
    Goodwill                                            4,433         4,433 
                                                        -----         ----- 
             Total assets                            $366,122      $388,357 
                                                     ========      ======== 
                                                                            
                LIABILITIES AND STOCKHOLDERS' EQUITY                        
                                                                            
    Current liabilities:                                                    
       Accounts payable                               $85,721       $88,079 
       Accrued expenses                                59,314        55,862 
       Current portion of capital lease                                     
        obligations                                     1,904         1,942 
                                                        -----         ----- 
             Total current liabilities                146,939       145,883 
                                                      -------       ------- 
                                                                            
    Deferred rent, less current portion                23,832        24,960 
    Capital lease obligations, less current portion     2,278         2,948 
    Long-term debt                                     54,955        96,499 
    Other long-term liabilities                         6,257         6,267 
                                                        -----         ----- 
             Total liabilities                        234,261       276,557 
                                                      -------       ------- 
                                                                            
    Commitments and contingencies                                           
                                                                            
    Stockholders' equity:                                                   
       Common stock, $0.01 par value, authorized
        50,000,000 shares; issued 23,050,061 and
        23,004,087 shares, respectively;                                    
        outstanding 21,566,766 and 21,520,792
        shares, respectively                              230           230 
       Additional paid-in capital                      95,259        92,704 
       Retained earnings                               57,738        40,232 
       Less:  Treasury stock, at cost; 1,483,295
        and 1,483,295 shares, respectively            (21,366)      (21,366)
                                                      -------       ------- 
             Total stockholders' equity               131,861       111,800 
                                                      -------       ------- 
             Total liabilities and stockholders'
              equity                                 $366,122      $388,357 
                                                     ========      ======== 
    
    
    
                          BIG 5 SPORTING GOODS CORPORATION                    
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS             
                                    (Unaudited)                               
                       (In thousands, except per share data)                  
                                                                              
                             Fiscal Quarter Ended (1)   Fiscal Year Ended (1)
                             ------------------------   ---------------------
                             January 3,  December 28,  January 3, December 28,
                                2010         2008        2010        2008     
                             ---------   -----------  ----------  -----------
                                                                              
    Net sales                $237,629      $219,609    $895,542     $864,650
                                                                          
    Cost of sales (2)         156,790       148,337     597,792      579,165
                              -------       -------     -------      -------
                                                                          
       Gross profit (2)        80,839        71,272     297,750      285,485
                                                                          
    Selling and                                                            
     administrative                                                       
     expense (3)               69,874        64,298     260,068      257,883
                               ------        ------     -------      -------
                                                                          
       Operating income        10,965         6,974      37,682       27,602
                                                                          
    Interest expense              582         1,287       2,465        5,198
                                  ---         -----       -----        -----
                                                                          
       Income before income                                              
        taxes                  10,383         5,687      35,217       22,404
                                                                          
    Income taxes                3,997         2,085      13,406        8,500
                                -----         -----      ------        -----
                                                                          
       Net income (2) (3)      $6,386        $3,602     $21,811      $13,904
                               ======        ======     =======      =======
                                                                          
    Earnings per share (2) (3):                                           
       Basic                    $0.30         $0.17       $1.02        $0.64
                                =====         =====       =====        =====
                                                                          
       Diluted                  $0.29         $0.17       $1.01        $0.64
                                =====         =====       =====        =====
                                                                          
    Dividends per share         $0.05         $0.09       $0.20        $0.36
                                =====         =====       =====        =====
                                                                          
    Weighted-average shares 
     of common stock
     outstanding:                                                   
       Basic                   21,457        21,415      21,434       21,608
                               ======        ======      ======       ======
                                                                          
       Diluted                 21,840        21,415      21,657       21,619
                               ======        ======      ======       ======
    
    (1) Fiscal 2009 comprises a 14-week fiscal quarter and a 53-week fiscal 
        year, whereas fiscal 2008 comprises a 13-week fiscal quarter and a 
        52-week fiscal year.
    
    (2) In the second quarter of fiscal 2008, the Company recorded a 
        nonrecurring pre-tax charge of $1.5 million to correct an error in its
        previously recognized straight-line rent expense, substantially all of
        which related to prior periods and accumulated over a period of 15 
        years. This charge reduced net income by $0.9 million, or $0.04 per 
        diluted share. The Company determined this charge to be immaterial to
        prior periods' consolidated financial statements.
    
    (3) In the fourth quarter of fiscal 2009, the Company recorded a net pre-
        tax charge of $1.0 million, which reflected a legal settlement accrual 
        offset by proceeds received from the settlement of a lawsuit relating 
        to credit card fees. This charge reduced net income in fiscal 2009 by 
        $0.6 million, or $0.03 per diluted share.

SOURCE Big 5 Sporting Goods Corporation

Copyright 2009 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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