Hibbett Sports Inc. (HIBB, Financial) filed Quarterly Report for the period ended 2009-08-01.
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 $504 million; its shares were traded at around $17.6 with a P/E ratio of 18.7 and P/S ratio of 0.9. 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.
Net sales for the twenty-six-week period ended August 1, 2009, increased 1.7% to $280.8 million compared with $276.1 million for the twenty-six-week period ended August 2, 2008. Comparable store sales decreased 3.6%. Operating income was 6.9% of net sales for the twenty-six-week period ended August 1, 2009 compared to 8.4% for the twenty-six-week period ended August 2, 2008. Net income decreased to $12.0 million compared with $14.2 million for the twenty-six-week period ended August 2, 2008. Diluted earnings per share decreased to $0.41 compared with $0.49 for the twenty-six-week period ended August 2, 2008.
Net sales. Net sales decreased $7.2 million, or 5.5%, to $123.1 million for the thirteen weeks ended August 1, 2009 from $130.3 million for the comparable period in the prior year. Furthermore:
Net cash used in investing activities in the twenty-six weeks ended August 1, 2009 totaled $4.5 million compared with net cash used in investing activities of $5.5 million in the twenty-six weeks ended August 2, 2008. Net redemptions of investments were $0.1 million as of August 1, 2009 compared to net purchases of investments of $0.1 million as of August 2, 2008. Capital expenditures used $4.7 million and $5.5 million of cash in the twenty-six weeks ended August 1, 2009 and August 2, 2008, respectively. We use cash in investing activities to open new stores and remodel or relocate existing stores. The reduction of capital expenditures over last year is due to a slowing of new store openings and a lower initial investment in leasehold improvements per new store. Furthermore, net cash used in investing activities includes purchases of information technology assets and expenditures for our distribution facility and corporate headquarters.
Net cash provided by financing activities was $1.0 million in the twenty-six weeks ended August 1, 2009 compared to net cash provided by financing activities of $13.0 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 prior year. In the twenty-six weeks ended August 2, 2008, we expended $16.9 million on repurchases of our common stock and did not repurchase any of our common stock in the twenty-six weeks ended August 1, 2009. 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 August 1, 2009, the only indebtedness we had outstanding related to a capital lease obligation in the amount of $0.3 million. At August 1, 2009, we had no borrowings outstanding under our credit facilities. There were 54 days and 81 days during the thirteen and twenty-six weeks ended August 1, 2009, respectively, where we incurred borrowings against our credit facilities for an average borrowing of $8.9 million and $7.7 million, respectively. The maximum borrowing was $13.9 million for the thirteen and twenty-six weeks ended August 1, 2009, with a weighted-average interest rate of 1.70% and 1.67%, respectively.
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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 $504 million; its shares were traded at around $17.6 with a P/E ratio of 18.7 and P/S ratio of 0.9. 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 sales for the thirteen-week period ended August 1, 2009, decreased 5.5% to $123.1 million compared with $130.3 million for the thirteen-week period ended August 2, 2008. Comparable store sales decreased 10.5%. Operating income was 1.6% of net sales for the thirteen-week period ended August 1, 2009 compared to 6.0% for the thirteen-week period ended August 2, 2008. Net income decreased to $1.1 million compared with $4.8 million for the thirteen-week period ended August 2, 2008. Diluted earnings per share decreased to $0.04 compared with $0.17 for the thirteen-week period ended August 2, 2008.Net sales for the twenty-six-week period ended August 1, 2009, increased 1.7% to $280.8 million compared with $276.1 million for the twenty-six-week period ended August 2, 2008. Comparable store sales decreased 3.6%. Operating income was 6.9% of net sales for the twenty-six-week period ended August 1, 2009 compared to 8.4% for the twenty-six-week period ended August 2, 2008. Net income decreased to $12.0 million compared with $14.2 million for the twenty-six-week period ended August 2, 2008. Diluted earnings per share decreased to $0.41 compared with $0.49 for the twenty-six-week period ended August 2, 2008.
Net sales. Net sales decreased $7.2 million, or 5.5%, to $123.1 million for the thirteen weeks ended August 1, 2009 from $130.3 million for the comparable period in the prior year. Furthermore:
Net cash used in investing activities in the twenty-six weeks ended August 1, 2009 totaled $4.5 million compared with net cash used in investing activities of $5.5 million in the twenty-six weeks ended August 2, 2008. Net redemptions of investments were $0.1 million as of August 1, 2009 compared to net purchases of investments of $0.1 million as of August 2, 2008. Capital expenditures used $4.7 million and $5.5 million of cash in the twenty-six weeks ended August 1, 2009 and August 2, 2008, respectively. We use cash in investing activities to open new stores and remodel or relocate existing stores. The reduction of capital expenditures over last year is due to a slowing of new store openings and a lower initial investment in leasehold improvements per new store. Furthermore, net cash used in investing activities includes purchases of information technology assets and expenditures for our distribution facility and corporate headquarters.
Net cash provided by financing activities was $1.0 million in the twenty-six weeks ended August 1, 2009 compared to net cash provided by financing activities of $13.0 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 prior year. In the twenty-six weeks ended August 2, 2008, we expended $16.9 million on repurchases of our common stock and did not repurchase any of our common stock in the twenty-six weeks ended August 1, 2009. 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 August 1, 2009, the only indebtedness we had outstanding related to a capital lease obligation in the amount of $0.3 million. At August 1, 2009, we had no borrowings outstanding under our credit facilities. There were 54 days and 81 days during the thirteen and twenty-six weeks ended August 1, 2009, respectively, where we incurred borrowings against our credit facilities for an average borrowing of $8.9 million and $7.7 million, respectively. The maximum borrowing was $13.9 million for the thirteen and twenty-six weeks ended August 1, 2009, with a weighted-average interest rate of 1.70% and 1.67%, respectively.
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