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Big 5 Sporting Goods Corp. (BGFV) filed Quarterly Report for the period ended 2011-07-03.
Big 5 Sporting Goods Corp. has a market cap of $175.4 million; its shares were traded at around $7.98 with a P/E ratio of 8.7 and P/S ratio of 0.2. The dividend yield of Big 5 Sporting Goods Corp. stocks is 3.8%.
This is the annual revenues and earnings per share of BGFV over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of BGFV.
Highlight of Business Operations:
Interest Expense. Interest expense increased by $0.2 million to $0.6 million in the 13 weeks ended July 3, 2011 compared to the same period last year. This increase reflects an increase in average interest rates of approximately 110 basis points, due mainly to higher applicable margins under our new credit agreement, to 2.6% in the second quarter of fiscal 2011 from 1.5% in the same period last year. Additionally, average debt levels increased approximately $2.2 million to $59.6 million in the second quarter of fiscal 2011 from $57.4 million in the second quarter last year.
Selling and Administrative Expense. Selling and administrative expense increased by $6.0 million to $134.1 million, or 30.4% of net sales, in the 26 weeks ended July 3, 2011 from $128.1 million, or 29.2% 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 $4.4 million due mainly to higher labor and operating costs to support the increase in store count and increased employee benefit costs, as well as an increase in advertising expense of $1.2 million to support sales. The Company also recorded a pre-tax non-cash impairment charge of $0.6 million related to certain underperforming stores, as discussed in Note 4 to Interim Financial Statements included in Part I, Item 1, Financial Statements, of this Quarterly Report on Form 10-Q.
Interest Expense. Interest expense increased by $0.4 million to $1.2 million in the 26 weeks ended July 3, 2011 from $0.8 million in the same period last year. This increase reflects an increase in average interest rates of approximately 110 basis points, due mainly to higher applicable margins under our new credit agreement, to 2.7% in the first half of fiscal 2011 from 1.6% in the same period last year. Additionally, average debt levels increased approximately $0.8 million to $57.6 million in the first half of fiscal 2011 from $56.8 million in the same period last year.
As of July 3, 2011, we had revolving credit borrowings of $64.0 million and letter of credit commitments of $3.5 million outstanding. These balances compare to revolving credit borrowings of $48.3 million and letter of credit commitments of $0.8 million outstanding as of January 2, 2011 and revolving credit borrowings of $64.1 million and letter of credit commitments of $3.4 million outstanding as of July 4, 2010. The increase in our revolving credit borrowings from the end of fiscal 2010 is due primarily to the seasonal growth in merchandise inventory.
The New Credit Agreement provides for a revolving credit facility (the “Credit Facility”) with an aggregate committed availability of up to $140.0 million, which amount may be increased at our option up to a maximum of $165.0 million. We may also request additional increases in aggregate availability, up to a maximum of $200.0 million, in which case the existing lenders under the New Credit Agreement will have the option to increase their commitments to accommodate the requested increase. If such existing lenders do not exercise that option, we may (with the consent of Wells Fargo, not to be unreasonably withheld) seek other lenders willing to provide such commitments. The Credit Facility includes a $50.0 million sublimit for issuances of letters of credit and a $20.0 million sublimit for swingline loans. All amounts outstanding under the Credit Facility will mature and become due on October 18, 2014. As of July 3, 2011 and January 2, 2011, our total remaining borrowing availability under the New Credit Agreement, after subtracting letters of credit, was $72.4 million and $90.9 million, respectively.
Quarterly dividend payments of $0.05 per share of outstanding common stock, for an annual rate of $0.20 per share, were paid in fiscal 2010. In the first two quarters of fiscal 2011, our Board of Directors declared quarterly cash dividends of $0.075 per share of outstanding common stock, for an annual rate of $0.30 per share. In the third quarter of fiscal 2011, our Board of Directors declared a quarterly cash dividend of $0.075 per share of outstanding common stock, which will be paid on September 15, 2011 to stockholders of record as of September 1, 2011.
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