Big 5 Sporting Goods Corp. has a market cap of $358.2 million; its shares were traded at around $16.61 with a P/E ratio of 15.9 and P/S ratio of 0.4. The dividend yield of Big 5 Sporting Goods Corp. stocks is 1.1%.BGFV is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Net Sales. Net sales increased by $8.2 million, or 3.9%, to $218.5 million in the 13 weeks ended April 4, 2010 from $210.3 million in the first quarter last year. The increase in net sales was primarily attributable to the following:
Selling and Administrative Expense. Selling and administrative expense increased by $1.3 million to $63.1 million, or 28.8% of net sales, in the 13 weeks ended April 4, 2010 from $61.8 million, or 29.4% 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 $1.2 million due mainly to higher labor and operating costs to support the increase in store count. This increase, combined with an increase of $0.6 million in various administrative costs, was offset by a decline in advertising expense of $0.6 million.
Interest Expense. Interest expense decreased by $0.3 million, or 42.9%, to $0.4 million in the 13 weeks ended April 4, 2010 from $0.7 million in the same period last year. This decrease was due to a reduction in average debt levels of approximately $38.2 million to $56.3 million in the first quarter of fiscal 2010 from $94.5 million in the first quarter last
As of April 4, 2010, we had revolving credit borrowings of $45.5 million and letter of credit commitments of $2.6 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 $76.5 million and letter of credit commitments of $3.8 million outstanding as of March 29, 2009.
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.
Future Capital Requirements. We had cash on hand of $5.3 million at April 4, 2010. We expect capital expenditures for the last three quarters of fiscal 2010, excluding non-cash property and equipment acquisitions, to range from approximately $12.0 million to $15.0 million, primarily to fund the opening of new stores, store-related remodeling, distribution center equipment and computer hardware and software purchases. As a result of the economic recession, we slowed our store expansion efforts substantially in fiscal 2009 by opening only three net new stores. We anticipate opening between 10 and 15 net new stores in fiscal 2010.
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