Hibbett Sports Inc. (HIBB, Financial) filed Quarterly Report for the period ended 2008-11-01.
Hibbett Sporting Goods Inc. is a rapidly-growing operator of full-line sporting goods stores in small to mid-sized markets predominantly in the southeastern United States. Hibbett's stores offer a broad assortment of quality athletic equipment footwear and apparel at competitive prices with superior customer service. Hibbett Sports Inc. has a market cap of $458.67 million; its shares were traded at around $15.74 with a P/E ratio of 15.95 and P/S ratio of 0.88. Hibbett Sports Inc. had an annual average earning growth of 20.1% over the past 10 years. GuruFocus rated Hibbett Sports Inc. the business predictability rank of 5-star.
The largest uses of cash during the thirty-nine weeks ended November 3, 2007 resulted from an increase in inventory of $23.1 million, accrued income taxes of $5.6 million and prepaid expenses and other current assets of $1.2 million. Offsetting this use of cash was an increase in accounts payable of $10.6 million, net income of $22.7 million and non-cash charges, including depreciation and amortization expense of $9.0 million and stock-based compensation expense of $3.2 million.
Cash used in investing activities in the thirty-nine weeks ended November 1, 2008 totaled $9.1 million. Net purchases of short-term investments were approximately $0.1 million compared to net purchases of short-term investments of $0.3 million as of November 3, 2007. Capital expenditures used $9.1 million of cash in the thirty-nine weeks ended November 1, 2008 compared to $10.2 million for the comparable period last year. We use cash in investing activities to build new stores and remodel or relocate existing stores. Furthermore, net cash used in investing activities includes purchases of information technology assets and expenditures for our distribution facility and corporate headquarters.
Net cash used in financing activities was $0.7 million in the thirty-nine weeks ended November 1, 2008 compared to net cash used in financing activities of $24.8 million in the prior year period. The cash fluctuation as compared to the same period last fiscal year was primarily due to the borrowings against our credit facilities to repurchase shares of our common stock and to finance our inventory position in preparation for the back-to-school and holiday selling seasons. In the thirty-nine weeks ended November 1, 2008, we expended $16.9 million on repurchases of our common stock compared to $26.4 million for the thirty-nine weeks ended November 3, 2007. Financing activities also consisted of proceeds from transactions in our common stock and the excess tax benefit from the exercise of incentive stock options. As stock options are exercised, we will continue to receive proceeds and expect a tax deduction; however, the amounts and timing cannot be predicted.
At November 1, 2008, we had two unsecured revolving credit facilities that allow borrowings up to $50.0 million and $30.0 million, respectively, and which renew in December 2008 and August 2009, respectively. The facilities do not require a commitment or agency fee nor are there any covenant restrictions. We plan to renew these facilities as they expire and do not anticipate any problems in doing so; however, no assurance can be given that we will be granted a renewal or terms which are acceptable to us. As of November 1, 2008, we had $14.9 million of debt outstanding under these facilities.
At November 1, 2008, we had $14.9 million outstanding under our credit facilities. There were 91 days and 263 days during the thirteen and thirty-nine weeks ended November 1, 2008, respectively, where we incurred borrowings against our credit facilities for an average borrowing of $19.5 million and $24.4 million, respectively. The maximum borrowing was $29.5 million and $47.1 million for the thirteen and thirty-nine weeks ended November 1, 2008, respectively, with a weighted-average interest rate of 3.05% and 3.09%, respectively.
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10-year financial history of HIBB.
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Hibbett Sporting Goods Inc. is a rapidly-growing operator of full-line sporting goods stores in small to mid-sized markets predominantly in the southeastern United States. Hibbett's stores offer a broad assortment of quality athletic equipment footwear and apparel at competitive prices with superior customer service. Hibbett Sports Inc. has a market cap of $458.67 million; its shares were traded at around $15.74 with a P/E ratio of 15.95 and P/S ratio of 0.88. Hibbett Sports Inc. had an annual average earning growth of 20.1% over the past 10 years. GuruFocus rated Hibbett Sports Inc. the business predictability rank of 5-star.
Highlight of Business Operations:
Net cash provided by operating activities was $5.6 million for the thirty-nine weeks ended November 1, 2008 compared with net cash provided by operating activities of $15.6 million for the thirty-nine weeks ended November 3, 2007. The largest use of cash during the period resulted from an increase in inventory of $20.9 million due in part by a higher store count and by cost inflation. The inventory level on a per store basis decreased by 2.0%. Other uses of cash during the period included a decrease in accounts payable of $4.9 million and an increase of $1.2 million in prepaid expenses and other current assets. Net income of $21.8 million and non-cash charges, including depreciation and amortization expense of $10.5 million and stock-based compensation expense of $2.7 million also helped offset uses of cash in operating activities.The largest uses of cash during the thirty-nine weeks ended November 3, 2007 resulted from an increase in inventory of $23.1 million, accrued income taxes of $5.6 million and prepaid expenses and other current assets of $1.2 million. Offsetting this use of cash was an increase in accounts payable of $10.6 million, net income of $22.7 million and non-cash charges, including depreciation and amortization expense of $9.0 million and stock-based compensation expense of $3.2 million.
Cash used in investing activities in the thirty-nine weeks ended November 1, 2008 totaled $9.1 million. Net purchases of short-term investments were approximately $0.1 million compared to net purchases of short-term investments of $0.3 million as of November 3, 2007. Capital expenditures used $9.1 million of cash in the thirty-nine weeks ended November 1, 2008 compared to $10.2 million for the comparable period last year. We use cash in investing activities to build new stores and remodel or relocate existing stores. Furthermore, net cash used in investing activities includes purchases of information technology assets and expenditures for our distribution facility and corporate headquarters.
Net cash used in financing activities was $0.7 million in the thirty-nine weeks ended November 1, 2008 compared to net cash used in financing activities of $24.8 million in the prior year period. The cash fluctuation as compared to the same period last fiscal year was primarily due to the borrowings against our credit facilities to repurchase shares of our common stock and to finance our inventory position in preparation for the back-to-school and holiday selling seasons. In the thirty-nine weeks ended November 1, 2008, we expended $16.9 million on repurchases of our common stock compared to $26.4 million for the thirty-nine weeks ended November 3, 2007. Financing activities also consisted of proceeds from transactions in our common stock and the excess tax benefit from the exercise of incentive stock options. As stock options are exercised, we will continue to receive proceeds and expect a tax deduction; however, the amounts and timing cannot be predicted.
At November 1, 2008, we had two unsecured revolving credit facilities that allow borrowings up to $50.0 million and $30.0 million, respectively, and which renew in December 2008 and August 2009, respectively. The facilities do not require a commitment or agency fee nor are there any covenant restrictions. We plan to renew these facilities as they expire and do not anticipate any problems in doing so; however, no assurance can be given that we will be granted a renewal or terms which are acceptable to us. As of November 1, 2008, we had $14.9 million of debt outstanding under these facilities.
At November 1, 2008, we had $14.9 million outstanding under our credit facilities. There were 91 days and 263 days during the thirteen and thirty-nine weeks ended November 1, 2008, respectively, where we incurred borrowings against our credit facilities for an average borrowing of $19.5 million and $24.4 million, respectively. The maximum borrowing was $29.5 million and $47.1 million for the thirteen and thirty-nine weeks ended November 1, 2008, respectively, with a weighted-average interest rate of 3.05% and 3.09%, respectively.
Read the The complete Report
More on HIBB:
Gurus buys and sells of HIBB
10-year financial history of HIBB.
Insider buys/sells of HIBB.
