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Big 5 Sporting Goods Corp. Reports Operating Results (10-Q)

August 06, 2010 | About:
10qk

10qk

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Big 5 Sporting Goods Corp. (BGFV) filed Quarterly Report for the period ended 2010-07-04.

Big 5 Sporting Goods Corp. has a market cap of $282.7 million; its shares were traded at around $12.98 with a P/E ratio of 11.3 and P/S ratio of 0.3. The dividend yield of Big 5 Sporting Goods Corp. stocks is 1.6%.BGFV is in the portfolios of Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Selling and Administrative Expense. Selling and administrative expense increased by $2.0 million to $65.0 million, or 29.6% of net sales, in the 13 weeks ended July 4, 2010 from $63.0 million, or 29.2% of net sales, in the same period last year. The increase in selling and administrative expense compared to the prior year was largely attributable to an increase in store-related expense, excluding occupancy, of $1.6 million due mainly to higher labor and operating costs to support the increase in store count.

Interest Expense. Interest expense decreased by $0.2 million, or 40.2%, to $0.4 million in the 13 weeks ended July 4, 2010 from $0.6 million in the same period last year. This decrease was due to a reduction in average debt levels of approximately $17.0 million to $57.4 million in the second quarter of fiscal 2010 from $74.4 million in the second quarter

Selling and Administrative Expense. Selling and administrative expense increased by $3.2 million to $128.1 million, or 29.2% of net sales, in the 26 weeks ended July 4, 2010 from $124.9 million, or 29.3% of net sales, in the same period last year. The increase in selling and administrative expense compared to the same period last year was largely attributable to an increase in store-related expense, excluding occupancy, of $2.8 million due mainly to higher labor and operating costs to support the increase in store count. This increase, combined with an increase of $0.8 million in various administrative costs, was partially offset by a decline in advertising expense of $0.4 million.

Interest Expense. Interest expense decreased by $0.5 million, or 41.9%, to $0.8 million in the 26 weeks ended July 4, 2010 from $1.3 million in the same period last year. This decrease was due to a reduction in average debt levels of approximately $28.1 million to $56.8 million in the first half of fiscal 2010 from $84.9 million in the same period last year, combined with a reduction in average interest rates of approximately 70 basis points to 1.6% in the first half of fiscal 2010 from 2.3% in the same period last year.

As of July 4, 2010, we had revolving credit borrowings of $64.1 million and letter of credit commitments of $3.4 million outstanding under our financing agreement. These balances compare to revolving credit borrowings of $55.0 million and letter of credit commitments of $2.7 million outstanding as of January 3, 2010 and revolving credit borrowings of $72.6 million and letter of credit commitments of $3.2 million outstanding as of June 28, 2009. As of July 4, 2010, our revolving credit borrowings increased by 16.5% from the end of fiscal 2009 due primarily to funding of merchandise inventory purchases to replenish inventory levels following the year-end holiday selling season and the resumption of our store expansion.

Our dividend payments and stock repurchases, if any, are generally funded by distributions from our subsidiary, Big 5 Corp. Generally, as long as there is no default or event of default under our financing agreement, Big 5 Corp. may make distributions to us of up to $15.0 million per year (and up to $5.0 million per quarter) for any purpose (including dividend payments or stock repurchases) and may make additional distributions for the purpose of paying our dividends or repurchasing our common stock if Big 5 Corp. will have post-dividend liquidity (as defined in the financing agreement) of at least $30 million.

Read the The complete Report

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