Big 5 Sporting Goods Corp. (BGFV, Financial) filed Quarterly Report for the period ended 2009-03-29.
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 $238 million; its shares were traded at around $11.06 with a P/E ratio of 16.1 and P/S ratio of 0.3. The dividend yield of Big 5 Sporting Goods Corp. stocks is 1.8%.
Gross Profit. Gross profit decreased by $4.5 million, or 6.3%, to $67.1 million, or 31.9% of net sales, in the 13 weeks ended March 29, 2009 from $71.6 million, or 33.6% of net sales, in the 13 weeks ended March 30, 2008. The decrease in gross profit was primarily attributable to the following:
Selling and Administrative Expense. Selling and administrative expense decreased by $1.4 million to $61.8 million, or 29.4% of net sales, in the 13 weeks ended March 29, 2009 from $63.2 million, or 29.7% of net sales, in the same period last year. The decrease in selling and administrative expense compared to the same period last year was primarily attributable to a decline in advertising expense of $1.2 million and a decline in administrative expense in various categories of $0.9 million. These decreases were partially offset by an increase in store-related expense, excluding occupancy, of $0.6 million, or 53 basis points as a percentage of net sales, due primarily to higher labor and operating costs to support the increase in store count.
Interest Expense. Interest expense decreased by $0.9 million, or 55.1%, to $0.7 million in the 13 weeks ended March 29, 2009 from $1.6 million in the same period last year. This decrease was due to a reduction of average debt levels of approximately $11.2 million to $94.5 million in the first quarter of fiscal 2009 from $105.7 million in the same period last year, combined with a reduction of average interest rates of approximately 340 basis points to 2.4% in the first quarter of fiscal 2009 from 5.8% in the same period last year.
As of March 29, 2009, we had revolving credit borrowings of $76.5 million and letter of credit commitments of $3.8 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 $97.3 million and letter of credit commitments of $1.1 million outstanding as of March 30, 2008.
Future Capital Requirements. We had cash on hand of $4.6 million at March 29, 2009. We expect capital expenditures for the last three quarters of fiscal 2009, excluding non-cash property and equipment acquisitions, to range from approximately $6.0 million to $8.0 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 expect to slow our store expansion efforts substantially in fiscal 2009 in comparison to previous years. Additionally, for the same reasons, in the first quarter of fiscal 2009 our Board of Directors determined to reduce 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 quarter of fiscal 2009. Also, although a total of $14.2 million remained available for share repurchases under our share repurchase program at March 29, 2009, we do not expect to resume share repurchases in fiscal 2009. These measures are intended to preserve our capital to maintain a healthy financial condition during the current economic downturn. In the second 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 June 15, 2009 to stockholders of record as of June 1, 2009.
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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 $238 million; its shares were traded at around $11.06 with a P/E ratio of 16.1 and P/S ratio of 0.3. The dividend yield of Big 5 Sporting Goods Corp. stocks is 1.8%.
Highlight of Business Operations:
Net Sales. Net sales decreased by $2.6 million, or 1.2%, to $210.3 million in the 13 weeks ended March 29, 2009 from $212.9 million in the same period last year. The decrease in net sales was primarily attributable to the following:Gross Profit. Gross profit decreased by $4.5 million, or 6.3%, to $67.1 million, or 31.9% of net sales, in the 13 weeks ended March 29, 2009 from $71.6 million, or 33.6% of net sales, in the 13 weeks ended March 30, 2008. The decrease in gross profit was primarily attributable to the following:
Selling and Administrative Expense. Selling and administrative expense decreased by $1.4 million to $61.8 million, or 29.4% of net sales, in the 13 weeks ended March 29, 2009 from $63.2 million, or 29.7% of net sales, in the same period last year. The decrease in selling and administrative expense compared to the same period last year was primarily attributable to a decline in advertising expense of $1.2 million and a decline in administrative expense in various categories of $0.9 million. These decreases were partially offset by an increase in store-related expense, excluding occupancy, of $0.6 million, or 53 basis points as a percentage of net sales, due primarily to higher labor and operating costs to support the increase in store count.
Interest Expense. Interest expense decreased by $0.9 million, or 55.1%, to $0.7 million in the 13 weeks ended March 29, 2009 from $1.6 million in the same period last year. This decrease was due to a reduction of average debt levels of approximately $11.2 million to $94.5 million in the first quarter of fiscal 2009 from $105.7 million in the same period last year, combined with a reduction of average interest rates of approximately 340 basis points to 2.4% in the first quarter of fiscal 2009 from 5.8% in the same period last year.
As of March 29, 2009, we had revolving credit borrowings of $76.5 million and letter of credit commitments of $3.8 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 $97.3 million and letter of credit commitments of $1.1 million outstanding as of March 30, 2008.
Future Capital Requirements. We had cash on hand of $4.6 million at March 29, 2009. We expect capital expenditures for the last three quarters of fiscal 2009, excluding non-cash property and equipment acquisitions, to range from approximately $6.0 million to $8.0 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 expect to slow our store expansion efforts substantially in fiscal 2009 in comparison to previous years. Additionally, for the same reasons, in the first quarter of fiscal 2009 our Board of Directors determined to reduce 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 quarter of fiscal 2009. Also, although a total of $14.2 million remained available for share repurchases under our share repurchase program at March 29, 2009, we do not expect to resume share repurchases in fiscal 2009. These measures are intended to preserve our capital to maintain a healthy financial condition during the current economic downturn. In the second 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 June 15, 2009 to stockholders of record as of June 1, 2009.
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