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Hibbett (HIBB) Reports Third Quarter Fiscal 2011 Results

Nov. 19, 2010 (Business Wire) — Hibbett Sports, Inc. (NASDAQ/GS: HIBB):

  • EPS Increases 45%
  • Comparable Store Sales Up 12.5%
  • Increases Fiscal 2011 Guidance
  • Accelerates Fiscal 2011 Store Growth

Hibbett Sports, Inc. (NASDAQ/GS: HIBB), a sporting goods retailer, today announced results for the third quarter ended October 30, 2010.

Financial Highlights

Net sales for the 13-week period ended October 30, 2010, increased 14.8% to $167.4 million compared with $145.9 million for the 13-week period ended October 31, 2009. Comparable store sales increased 12.5%. Net income for the third quarter of Fiscal 2011 increased 43.5% to $12.6 million compared with $8.8 million for the third quarter of Fiscal 2010. Earnings per diluted share increased 45.0% to $0.44 compared with $0.30 for the third quarter of Fiscal 2010.

Net sales for the 39-week period ended October 30, 2010, increased 15.3% to $491.7 million compared with $426.7 million for the 39-week period ended October 31, 2009. Comparable store sales increased 13.0%. Net income for the 39-week period ended October 30, 2010, was $33.9 million compared with $20.8 million for the 39-week period ended October 31, 2009. Earnings per diluted share increased 62.4% to $1.16 compared with $0.72 for the 39-week period ended October 31, 2009.

Jeff Rosenthal, President and Chief Executive Officer, stated, “We are very excited about our performance over the last three quarters. Not only has Hibbett achieved three consecutive quarters of double digit comparable store sales growth, we have also experienced continued margin improvement. As a result, we are raising our earnings guidance for Fiscal 2011. In addition, we are accelerating our store opening plans for this year.”

Store Growth

In the third quarter, Hibbett opened 17 new stores and closed 2 stores, bringing the store base to 789 in 26 states as of October 30, 2010, including the Company’s first store in South Dakota. For the full year Fiscal 2011, the Company expects to open 40-42 new stores, compared to previous estimates of 30 new store openings. We also plan to expand 18 high performing locations and close 10 to 12 underperforming stores.

Liquidity and Stock Repurchases

Hibbett ended the third quarter of Fiscal 2011 with $52.5 million of available cash and cash equivalents on the consolidated balance sheet and no bank debt. At quarter end a year ago, the Company had $24.8 million of available cash and cash equivalents with no bank debt.

During the third quarter, the Company repurchased 1,034,000 shares of common stock for a total expenditure of $25.1 million, bringing the total shares repurchased year to date to 1,236,000 shares for a total expenditure of $30.1 million. Approximately $219.9 million of the current $250.0 million authorization remains for future stock repurchases as of the end of the third quarter of Fiscal 2011.

Fiscal 2011 Outlook

The Company increased its earnings guidance for Fiscal 2011 to a range of $1.63 to $1.66 per diluted share, which equates to $0.47 to $0.50 per diluted share for the fourth quarter, and a mid-single-digit increase in comparable store sales for the fourth quarter.

Investor Conference Call and Simulcast

Hibbett Sports, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, November 19, 2010, to discuss third quarter Fiscal 2011 results. The number to call for the live interactive teleconference is (212) 231-2900. A replay of the conference call will be available until November 26, 2010, by dialing (402) 977-9140 and entering the passcode, 21466898.

The Company will also provide an online Web simulcast and rebroadcast of its Fiscal 2011 second quarter conference call. The live broadcast of Hibbett’s quarterly conference call will be available online at under Investor Relations, and on Friday, November 19, 2010, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call and continue through November 26, 2010.

Hibbett Sports, Inc. operates sporting goods stores in small to mid-sized markets, predominately in the Southeast, Southwest, Mid-Atlantic and the lower Midwest regions of the United States. The Company’s primary store format is Hibbett Sports, a 5,000-square-foot store located in strip centers and enclosed malls.

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, expansion and closing plans, liquidity, earnings per diluted share and comparable sales for Fiscal 2011. 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 discussion of these factors, as well as others which could affect our business, you should carefully review our Annual Report and other reports filed from time to time with the Securities and Exchange Commission, including the “Risk Factors,” “Business” and “MD&A” sections in our Annual Report on Form 10-K filed on March 26, 2010 and the “MD&A” section on our Quarterly Reports on Form 10-Q filed on June 2 and September 8, 2010. 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.

Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
October 30, October 31, October 30, October 31,
2010 2009 2010 2009
Net sales $ 167,420 $ 145,855 $ 491,745 $ 426,673
Cost of goods sold, distribution center and store occupancy costs 108,361 96,218 321,803 287,553
Gross profit 59,059 49,637 169,942 139,120
Store operating, selling and administrative expenses 35,603 32,168 105,459 95,353
Depreciation and amortization 3,369 3,525 10,238 10,327
Operating income 20,087 13,944 54,245 33,440
Interest expense, net 13 2 64 36
Income before provision for income taxes 20,074 13,942 54,181 33,404
Provision for income taxes 7,486 5,167 20,239 12,608
Net income $ 12,588 $ 8,775 $ 33,942 $ 20,796
Net income per common share:
Basic $ 0.45 $ 0.31 $ 1.19 $ 0.73
Diluted $ 0.44 $ 0.30 $ 1.16 $ 0.72
Weighted average shares outstanding:
Basic 28,209 28,646 28,582 28,616
Diluted 28,802 29,100 29,185 29,045
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
October 30, January 30,
2010 2010
Cash and cash equivalents $ 52,492 $ 49,691
Inventories 178,076 169,394
Other current assets 15,895 12,435
Total current assets 246,463 231,520
Property and equipment, net 38,456 41,084
Non-current assets 5,385 4,100
Total Assets $ 290,304 $ 276,704
Liabilities and Stockholders’ Investment
Accounts payable $ 71,522 $ 64,949
Short-term debt and capital lease obligations 442 117
Other accrued expenses 14,526 18,871
Total current liabilities 86,490 83,937
Non-current liabilities 16,877 17,688
Stockholders’ investment 186,937 175,079
Total Liabilities and Stockholders’ Investment $ 290,304 $ 276,704

Hibbett Sports, Inc.

Gary A. Smith, 205-942-4292

Senior Vice President & Chief Financial Officer

Friday, November 19th, 2010 Uncategorized
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