Big 5 Sporting Goods Corp. (BGFV) filed Quarterly Report for the period ended 2009-09-27.
Big 5 Sporting Goods is a leading sporting goods retailer in the western United States operating stores under the name ?Big 5 Sporting Goods.? Big 5 Sporting Goods Corp. has a market cap of $333.6 million; its shares were traded at around $15.5 with a P/E ratio of 21.3 and P/S ratio of 0.4. The dividend yield of Big 5 Sporting Goods Corp. stocks is 1.3%.
Highlight of Business Operations:
Selling and Administrative Expense. Selling and administrative expense decreased by $0.7 million to $65.3 million, or 28.2% of net sales, in the 13 weeks ended September 27, 2009 from $66.0 million, or 29.6% of net sales, in the same period last year. The decrease in selling and administrative expense compared to the same period last year was largely attributable to a decline in advertising expense of $2.0 million due primarily to a reduction in the frequency and distribution of advertising circulars, as well as lower printing costs. This decrease was partially offset by an increase in store-related expense, excluding occupancy, of $0.9 million due mainly to higher labor and operating costs to support the increase in store count.
Interest Expense. Interest expense decreased by $0.6 million, or 51.8%, to $0.6 million in the 13 weeks ended September 27, 2009 from $1.2 million in the same period last year. This decrease was due to a reduction in average debt levels of approximately $23.3 million to $74.0 million in the third quarter of fiscal 2009 from $97.3 million in the same period last year, combined with a reduction in average interest rates of approximately 220 basis points to 2.1% in the third quarter of fiscal 2009 from 4.3% in the same period last year.
2009 from $193.6 million, or 30.0% of net sales, in the same period last year. The decrease in selling and administrative expense compared to the same period last year was largely attributable to a decline in advertising expense of $5.6 million due primarily to a reduction in the frequency and distribution of advertising circulars, as well as lower printing costs, along with a decline in administrative expense in various categories of $0.5 million. These decreases were partially offset by an increase in store-related expense, excluding occupancy, of $2.7 million, or 4 basis points as a percentage of net sales, due mainly to higher labor and operating costs to support the increase in store count.
Interest Expense. Interest expense decreased by $2.0 million, or 51.9%, to $1.9 million in the 39 weeks ended September 27, 2009 from $3.9 million in the same period last year. This decrease was due to a reduction in average debt levels of approximately $20.6 million to $81.2 million in the 39 weeks ended September 27, 2009 from $101.8 million in the same period last year, combined with a reduction in average interest rates of approximately 260 basis points to 2.2% in the 39 weeks ended September 27, 2009 from 4.8% in the same period last year.
As of September 27, 2009, we had revolving credit borrowings of $59.7 million and letter of credit commitments of $4.6 million outstanding under our financing agreement. These balances compare to revolving credit borrowings of $96.5 million and letter of credit commitments of $3.0 million outstanding as of December 28, 2008 and revolving credit borrowings of $99.9 million and letter of credit commitments of $7.2 million outstanding as of September 28, 2008.
Future Capital Requirements. We had cash on hand of $3.9 million at September 27, 2009. We expect capital expenditures for the last quarter of fiscal 2009, excluding non-cash property and equipment acquisitions, to range from approximately $3.0 million to $5.0 million, primarily to fund the opening of new stores, store-related remodeling, distribution center equipment and computer hardware and software purchases. In light of the current economic environment, we continue to slow our store expansion efforts substantially in fiscal 2009 in comparison to previous years, and anticipate opening approximately three new stores in fiscal 2009. Additionally, for the same reasons, in the first quarter of fiscal 2009 our Board of Directors reduced our quarterly cash dividend to $0.05 per share of outstanding common stock, for an annual rate of $0.20 per share, and this was continued for the second and third quarters of fiscal 2009. In the fourth quarter of fiscal 2009, our Board of Directors declared a quarterly cash dividend of $0.05 per share of outstanding common stock, which will be paid on December 15, 2009 to stockholders of record as of December 1, 2009. Also, although a total of $14.2 million remained available for share repurchases under our share repurchase program at September 27, 2009, we do not expect to resume share repurchases for the remainder of fiscal 2009. These measures are intended to preserve our capital to maintain a healthy financial condition during the current economic downturn.
Rate This Article: |
  |