Dick's Sporting Goods Reports Second Quarter Results; Exceeds Earnings Expectations

- Consolidated non-GAAP earnings per diluted share increased 21% to $0.52 per diluted share in the second quarter of 2011 from $0.43 per diluted share in the second quarter of 2010

- Consolidated same store sales increased 2.5% in the second quarter of 2011

- Company raises full year estimated non-GAAP earnings range from $1.91 to 1.93 per diluted share to a range of $1.94 to 1.96 per diluted share

- Company ended the second quarter of 2011 with $626 million in cash, without any outstanding borrowings under its credit facility

Aug 16, 2011, 07:30 ET from Dick's Sporting Goods, Inc.

PITTSBURGH, Aug. 16, 2011 /PRNewswire/ -- Dick's Sporting Goods, Inc. (NYSE: DKS) today reported sales and earnings results for the second quarter ended July 30, 2011.

Second Quarter Results

The Company reported consolidated non-GAAP net income for the second quarter ended July 30, 2011 of $65.1 million, or $0.52 per diluted share, excluding a $0.07 per diluted share impact from a gain on sale of investment. The second quarter consolidated non-GAAP earnings per diluted share exceeded estimated earnings expectations provided on May 17, 2011 of $0.47 - 0.49 per diluted share.  

On a GAAP basis, the Company reported consolidated net income for the second quarter ended July 30, 2011 of $73.8 million, or $0.59 per diluted share. The GAAP to non-GAAP reconciliations are included in a table later in the release under the heading "Non-GAAP Net Income and Earnings Per Share Reconciliation."  For the second quarter ended July 31, 2010, the Company reported consolidated net income of $51.5 million, or $0.43 per diluted share.

Net sales for the second quarter of 2011 increased by 6.6% to $1.3 billion due primarily to a 2.5% increase in consolidated same store sales and the opening of new stores. The 2.5% consolidated same store sales increase consisted of a 1.7% increase at Dick's Sporting Goods stores, a 4.0% increase at Golf Galaxy stores and a 31.9% increase in its e-commerce business.

"In the second quarter, we delivered profitable growth that exceeded our earnings projections while continuing to strengthen our balance sheet. While top line sales started slow in the quarter, June and July comps accelerated at a pace above our quarterly target of approximately 3%," said Edward W. Stack, Chairman and CEO. "We also made marked progress in developing all of our growth drivers by adding productive, profitable stores; building our e-commerce business; and expanding our overall margin rates. As a result, we are well positioned to continue to meaningfully grow our business."

New Stores

In the second quarter, the Company opened eight Dick's Sporting Goods stores. These stores are listed in a table later in the release under the heading "Store Count and Square Footage."

As of July 30, 2011, the Company operated 455 Dick's Sporting Goods stores in 42 states, with approximately 25.1 million square feet and 81 Golf Galaxy stores in 30 states, with approximately 1.3 million square feet.

Balance Sheet

The Company ended the second quarter of 2011 with $626 million in cash and cash equivalents and did not have any outstanding borrowings under its $440 million credit facility. At the end of the second quarter of 2010, the Company had $278 million in cash and cash equivalents and did not have any outstanding borrowings under its credit facility.

The inventory per square foot was 0.9% lower at the end of the second quarter 2011 as compared to the end of the second quarter of 2010.

Year-to-Date Results

The Company reported consolidated non-GAAP net income for the 26 weeks ended July 30, 2011 of $102.6 million, or $0.82 per diluted share. On a GAAP basis, the Company reported consolidated net income for the 26 weeks ended July 30, 2011 of $111.3 million, or $0.89 per diluted share. For the 26 weeks ended July 31, 2010, the Company reported consolidated net income of $77.7 million, or $0.64 per diluted share.

Net sales for the first half of 2011 increased 6.5% from the first half of 2010 to $2.4 billion primarily due to a consolidated same store sales increase of 2.3% and the opening of new stores.

Current 2011 Outlook

The Company's current outlook for 2011 is based on current expectations and includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as described later in this release.  Although the Company believes that the expectations and other comments reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations or comments will prove to be correct.

Full Year 2011

  • Based on an estimated 126 million diluted shares outstanding, the Company currently anticipates reporting consolidated non-GAAP earnings per diluted share of approximately $1.94 – 1.96, excluding a gain on sale of investments. For the full year 2010, the Company reported consolidated non-GAAP earnings per diluted share of $1.63, excluding Golf Galaxy store closing costs and litigation settlement costs. On a GAAP basis, the Company reported consolidated earnings per diluted share of $1.50 in 2010.
  • Consolidated same store sales are currently expected to increase approximately 1 - 2% compared to a 7.2% increase last year.
  • The Company currently expects to open approximately 36 new Dick's Sporting Goods stores, remodel 14 Dick's Sporting Goods stores, and relocate one Golf Galaxy store in 2011.

Third Quarter 2011

  • Based on an estimated 126 million diluted shares outstanding, the Company currently anticipates reporting consolidated earnings per diluted share of approximately $0.24 - 0.26 in the third quarter of 2011. In the third quarter of 2010, the Company reported consolidated non-GAAP earnings per diluted share of $0.22.
  • Consolidated same store sales are currently expected to increase approximately 1 - 2% compared to a 5.1% increase in the third quarter last year.
  • The Company expects to open approximately 18 new Dick's Sporting Goods stores in the third quarter of 2011.

Capital Expenditures

  • In 2011, the Company anticipates capital expenditures to be approximately $252 million on a gross basis and approximately $197 million on a net basis.

"While some may view our top line guidance as being conservative, we believe that the current instability in many global markets and the uncertainty in the domestic macro economic environment, warrant a cautious outlook," stated Mr. Stack. "With our proven ability to execute on our margin expansion opportunities and to manage inventory and expenses, we've maintained our earnings expectations for the second half of the year."

Conference Call Info

The Company will be hosting a conference call today at 10:00 a.m. eastern time to discuss the second quarter results.  Investors will have the opportunity to listen to the earnings conference call over the internet through the Company's web site located at http://www.dickssportinggoods.com/investors. To listen to the live call, please go to the web site at least fifteen minutes early to register and download and install any necessary audio software.  

In addition to the web cast, the call can be accessed by dialing (800) 591-6944 (domestic callers) or (617) 614-4910 (international callers) and entering confirmation code 59292096.

For those who cannot listen to the live web cast, it will be archived on the Company's web site for 30 days.  In addition, a dial-in replay of the call will be available. To listen to the replay, investors should dial (888) 286-8010 (domestic callers) or (617) 801-6888 (international callers) and enter confirmation code 68951016. The dial-in replay will be available for 30 days following the live call.

Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties

Except for historical information contained herein, the statements in this release or otherwise made by our management in connection with the subject matter of this release are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) and involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond our control. Our future performance and financial results may differ materially from those included in any such forward-looking statements and such forward-looking statements should not be relied upon by investors as a prediction of actual results. You can identify these statements as those that may predict, forecast, indicate or imply future results, performance or advancements and by forward-looking words such as "believe", "anticipate", "expect", "estimate", "predict", "intend", "plan", "project", "goal", "will", "will be", "will continue", "will result", "could", "may", "might" or other words with similar meanings. Forward-looking statements include, among other things, statements about our future expectations regarding growth, revenues, earnings, profitability, spending, margins, costs, liquidity, store openings and operations, inventory, private brand products, our actions, plans or strategies.

The following factors, among others, in some cases have affected and in the future could affect our financial performance and actual results, and could cause actual results for fiscal 2011 and beyond to differ materially from those expressed or implied in any forward-looking statements included in this release or otherwise made by our management: continuation of the recent economic and financial downturn and other changes in macroeconomic factors or market conditions that impact consumer spending; changes in the general economic and business conditions and in the specialty retail or sporting goods industry in particular; fluctuations in our quarterly operating results or same store sales; volatility in our stock price; our ability to access adequate capital; competition in the sporting goods industry; limitations on the availability of attractive store locations; inability to manage our growth, open new stores on a timely basis or expand successfully in new and existing markets; changes in consumer demand; unauthorized disclosure of sensitive, personal or confidential information; disruptions in our or our vendors' supply chains; factors affecting our vendors, including potential increases in the costs of products, their ability to maintain their inventory and production levels and their ability or willingness to provide us with sufficient quantities of products at acceptable prices; factors that could negatively affect our private brand offerings; risks and costs relating to product liability claims, product recalls and the regulation of and other hazards associated with certain products we sell; the loss of our key executives; costs and risks associated with increased or changing laws and regulations affecting our business; our ability to secure and protect our intellectual property; risks relating to operating as a multi-channel retailer, including the impact of rapid technological change, internet security and privacy issues and the threat of systems failure or inadequacy; problems with our current management information systems or software; disruption at our distribution facilities; the seasonality of our business; regional risks because our stores are generally concentrated in the eastern half of the United States; costs and risks related to litigation or other claims against us; costs and uncertainties associated with pursuing strategic acquisitions; our ability to meet our labor needs; currency exchange rate fluctuations; risks associated with our Chief Executive Officer and his relatives' controlling interest in the Company; the impact of foreign instability and conflict; our anti-takeover provisions, which could prevent or delay a change in control of the Company; and impairment in the carrying value of goodwill or other acquired intangibles.

Known and unknown risks and uncertainties are more fully described in the Company's Annual Report on Form 10-K for the year ended January 29, 2011 as filed with the Securities and Exchange Commission ("SEC") on March 18, 2011 and in other reports filed with the SEC.  In addition, we operate in a highly competitive and rapidly changing environment; therefore, new risk factors can arise, and it is not possible for management to predict all such risk factors, nor to assess the impact of all such risk factors on our business or the extent to which any individual risk factor, or combination of risk factors, may cause results to differ materially from those contained in any forward-looking statement. We do not assume any obligation and do not intend to update any forward-looking statements except as may be required by the securities laws.

About Dick's Sporting Goods, Inc.

Dick's Sporting Goods, Inc. is an authentic full-line sporting goods retailer offering a broad assortment of brand name sporting goods equipment, apparel and footwear in a specialty store environment. The Company also owns and operates Golf Galaxy, LLC, a golf specialty retailer. As of July 30, 2011, the Company operated 455 Dick's Sporting Goods stores in 42 states, 81 Golf Galaxy stores in 30 states and e-commerce web sites and catalog operations for both Dick's Sporting Goods and Golf Galaxy. Dick's Sporting Goods, Inc. news releases are available at http://www.dickssportinggoods.com/investors. The Company's web site is not part of this release.

Contact:

Timothy E. Kullman, EVP – Finance, Administration, and Chief Financial Officer or Anne-Marie Megela, Director, Investor Relations (724) 273-3400 investors@dcsg.com

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

13 Weeks Ended

July 30,

% of

Sales (1)

July 31,

% of

Sales

2011

2010

Net sales

$ 1,306,695

100.00%

$ 1,226,063

100.00%

Cost of goods sold, including occupancy

and distribution costs

905,620

69.31

865,918

70.63

GROSS PROFIT

401,075

30.69

360,145

29.37

Selling, general and administrative expenses

285,729

21.87

271,372

22.13

Pre-opening expenses

3,655

0.28

715

0.06

INCOME FROM OPERATIONS

111,691

8.55

88,058

7.18

Gain on sale of investment

(13,900)

(1.06)

-

-

Interest expense

3,480

0.27

3,502

0.29

Other expense

517

0.04

646

0.05

INCOME BEFORE INCOME TAXES

121,594

9.31

83,910

6.84

Provision for income taxes

47,746

3.65

32,394

2.64

NET INCOME

$      73,848

5.65%

$      51,516

4.20%

EARNINGS PER COMMON SHARE:

Basic

$          0.61

$          0.44

Diluted

$          0.59

$          0.43

WEIGHTED AVERAGE COMMON SHARES

OUTSTANDING:

Basic

120,207

115,815

Diluted

125,836

121,039

(1) Column does not add due to rounding

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(In thousands, except per share data)

26 Weeks Ended

July 30,

% of

Sales (1)

July 31,

% of

Sales

2011

2010

Net sales

$ 2,420,544

100.00%

$ 2,273,595

100.00%

Cost of goods sold, including occupancy

and distribution costs

1,689,026

69.78

1,611,229

70.87

GROSS PROFIT

731,518

30.22

662,366

29.13

Selling, general and administrative expenses

549,465

22.70

524,521

23.07

Pre-opening expenses

5,921

0.24

2,795

0.12

INCOME FROM OPERATIONS

176,132

7.28

135,050

5.94

Gain on sale of investment

(13,900)

(0.57)

-

-

Interest expense

6,964

0.29

7,010

0.31

Other income

(591)

(0.02)

(43)

(0.00)

INCOME BEFORE INCOME TAXES

183,659

7.59

128,083

5.63

Provision for income taxes

72,313

2.99

50,358

2.21

NET INCOME

$    111,346

4.60%

$      77,725

3.42%

EARNINGS PER COMMON SHARE:

Basic

$          0.93

$          0.67

Diluted

$          0.89

$          0.64

WEIGHTED AVERAGE COMMON SHARES

OUTSTANDING:

Basic

119,784

115,485

Diluted

125,602

120,713

(1) Column does not add due to rounding

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - UNAUDITED

(Dollars in thousands)

July 30,

July 31,

January 29,

2011

2010

2011

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$    626,415

$    278,169

$    546,052

Accounts receivable, net

55,587

45,462

34,978

Income taxes receivable

1,652

6,982

9,050

Inventories, net

1,026,861

985,799

896,895

Prepaid expenses and other current assets

63,159

61,060

58,394

Deferred income taxes

13,651

7,528

18,961

Total current assets

1,787,325

1,385,000

1,564,330

Property and equipment, net

737,484

677,779

684,886

Intangible assets, net

51,098

47,585

51,070

Goodwill

200,594

200,594

200,594

Other assets:

Deferred income taxes

28,004

72,261

27,157

Investments

1,015

10,765

10,789

Other

57,863

40,620

58,710

           Total other assets

86,882

123,646

96,656

TOTAL ASSETS

$ 2,863,383

$ 2,434,604

$ 2,597,536

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$    553,108

$    532,007

$    446,511

Accrued expenses

284,457

252,814

279,284

Deferred revenue and other liabilities

92,595

83,983

121,753

Income taxes payable

23,915

7,089

-

Current portion of other long-term debt and

leasing obligations

995

978

995

Total current liabilities

955,070

876,871

848,543

LONG-TERM LIABILITIES:

Other long-term debt and leasing obligations

139,359

140,807

139,846

Deferred revenue and other liabilities

258,804

228,199

245,566

Total long-term liabilities

398,163

369,006

385,412

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:

Common stock

954

908

938

Class B common stock

250

250

250

Additional paid-in capital

666,981

554,741

625,184

Retained earnings

841,814

626,116

730,468

Accumulated other comprehensive income

151

6,712

6,741

Total stockholders' equity

1,510,150

1,188,727

1,363,581

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 2,863,383

$ 2,434,604

$ 2,597,536

DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(Dollars in thousands)

26 Weeks Ended

July 30,

July 31,

2011

2010

CASH FLOWS FROM OPERATING ACTIVITIES:

 Net income

$ 111,346

$   77,725

 Adjustments to reconcile net income  

         to net cash provided by operating activities:

Depreciation and amortization

55,316

52,153

Deferred income taxes

8,393

(13,907)

Stock-based compensation

13,326

12,511

Excess tax benefit from exercise of stock options

(12,795)

(6,220)

Tax benefit from exercise of stock options

231

446

Other non-cash items

761

774

Gain on sale of investment

(13,900)

-

Changes in assets and liabilities:

Accounts receivable

(13,180)

(3,696)

Inventories

(129,966)

(90,023)

Prepaid expenses and other assets

(5,415)

(6,453)

Accounts payable

103,656

74,009

Accrued expenses

(16,363)

(15,212)

Income taxes payable/receivable

44,030

5,608

Deferred construction allowances

12,687

4,815

Deferred revenue and other liabilities

(32,149)

(25,859)

Net cash provided by operating activities

125,978

66,671

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(85,600)

(61,611)

Proceeds from sale of investment

14,140

-

Proceeds from sale-leaseback transactions

3,073

5,874

Deposits and purchases of other assets

(8,045)

-

Net cash used in investing activities

(76,432)

(55,737)

CASH FLOWS FROM FINANCING ACTIVITIES:

Payments on other long-term debt and leasing obligations

(487)

(458)

Construction allowance receipts

-

-

Proceeds from exercise of stock options

18,994

9,225

Excess tax benefit from exercise of stock options

12,795

6,220

Repurchase of common stock

(3,455)

-

Increase in bank overdraft

2,941

26,632

Net cash provided by financing activities

30,788

41,619

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH

  EQUIVALENTS

29

5

NET INCREASE IN CASH AND CASH EQUIVALENTS

80,363

52,558

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

546,052

225,611

CASH AND CASH EQUIVALENTS, END OF PERIOD

$ 626,415

$ 278,169

Supplemental disclosure of cash flow information:

Accrued property and equipment

$   21,536

$   21,612

Cash paid for interest

$     6,205

$     6,155

Cash paid for income taxes

$   19,173

$   58,053

Store Count and Square Footage

The stores that opened during the second quarter of 2011 are as follows:

DICK'S

Store

Market

Modesto, CA

Modesto

Daphne, AL

Mobile

Pocatello, ID

Pocatello

Fresno, CA

Fresno

Nashua, NH

Nashua

Coon Rapids, MN

Minneapolis

Staten Island, NY

New York Metro

Manhattan, KS

Manhattan

The following represents a reconciliation of beginning and ending stores and square footage for the periods indicated:

Fiscal 2011

Fiscal 2010

Dick's

Sporting

Goods

Golf

Galaxy

Total

Dick's

Sporting

Goods

Golf

Galaxy

Total

Beginning stores

444

81

525

419

91

510

Q1 New

3

-

3

5

-

5

Q2 New

8

-

8

1

-

1

Ending stores

455

81

536

425

91

516

Closed stores

-

-

-

-

-

-

Ending stores

455

81

536

425

91

516

Remodeled stores

1

-

1

3

-

3

Relocated stores

-

1

1

-

-

-

Square Footage:

(in millions)

Dick's

Sporting

Goods

Golf

Galaxy

Total

Q1 2010

23.6

1.5

25.1

Q2 2010

23.7

1.5

25.2

Q3 2010

24.3

1.3

25.6

Q4 2010

24.6

1.3

25.9

Q1 2011

24.7

1.3

26.0

Q2 2011

25.1

1.3

26.4

Non-GAAP Financial Measures

In addition to reporting the Company's financial results in accordance with generally accepted accounting principles ("GAAP"), the Company provides information regarding net income and earnings per diluted share adjusted for gain on sale of investment; earnings before interest, taxes and depreciation, adjusted to exclude certain significant gains and losses ("Adjusted EBITDA"); a reconciliation from the Company's gross capital expenditures, net of tenant allowances; and calculations of consolidated and Dick's Sporting Goods new store productivity.  These measures are considered non-GAAP and are not preferable to GAAP financial information; however, the Company believes this information provides additional measures of performance that the Company's management, analysts and investors can use to compare core, operating results between reporting periods. These non-GAAP measures are provided below and on the Company's website at http://www.dickssportinggoods.com/investors.

Non-GAAP Net Income and Earnings Per Share Reconciliation

(in thousands, except per share data):

13 Weeks Ended July 30, 2011

As

Gain on Sale

Non-GAAP

Reported

of Investment

Total

Net sales

$ 1,306,695

$                     -

$ 1,306,695

Cost of goods sold, including occupancy

and distribution costs

905,620

-

905,620

GROSS PROFIT

401,075

-

401,075

Selling, general and administrative expenses

285,729

-

285,729

Pre-opening expenses

3,655

-

3,655

INCOME FROM OPERATIONS

111,691

-

111,691

Gain on sale of investment

(13,900)

13,900

-

Interest expense

3,480

-

3,480

Other expense

517

-

517

INCOME BEFORE INCOME TAXES

121,594

(13,900)

107,694

Provision for income taxes

47,746

(5,162)

42,584

NET INCOME

$      73,848

$           (8,738)

$      65,110

EARNINGS PER COMMON SHARE:

Basic

$          0.61

$          0.54

Diluted

$          0.59

$          0.52

WEIGHTED AVERAGE COMMON SHARES

OUTSTANDING:

Basic

120,207

120,207

Diluted

125,836

125,836

During the second quarter of 2011, the Company recorded a pre-tax gain of $13.9 million relating to the sale of available-for-sale securities.

Non-GAAP Net Income and Earnings Per Share Reconciliation

(in thousands, except per share data):

26 Weeks Ended July 30, 2011

As

Gain on Sale

Non-GAAP

Reported

of Investment

Total

Net sales

$ 2,420,544

$                     -

$ 2,420,544

Cost of goods sold, including occupancy

and distribution costs

1,689,026

-

1,689,026

GROSS PROFIT

731,518

-

731,518

Selling, general and administrative expenses

549,465

-

549,465

Pre-opening expenses

5,921

-

5,921

INCOME FROM OPERATIONS

176,132

-

176,132

Gain on sale of investment

(13,900)

13,900

-

Interest expense

6,964

-

6,964

Other income

(591)

-

(591)

INCOME BEFORE INCOME TAXES

183,659

(13,900)

169,759

Provision for income taxes

72,313

(5,162)

67,151

NET INCOME

$    111,346

$           (8,738)

$    102,608

EARNINGS PER COMMON SHARE:

Basic

$          0.93

$          0.86

Diluted

$          0.89

$          0.82

WEIGHTED AVERAGE COMMON SHARES

OUTSTANDING:

Basic

119,784

119,784

Diluted

125,602

125,602

During the second quarter of 2011, the Company recorded a pre-tax gain of $13.9 million relating to the sale of available-for-sale securities.

Adjusted EBITDA

Adjusted EBITDA should not be considered as an alternative to net income or any other generally accepted accounting principles measure of performance or liquidity.  Adjusted EBITDA, as the Company has calculated it, may not be comparable to similarly titled measures reported by other companies.  Adjusted EBITDA is a key metric used by the Company that provides a measurement of profitability that eliminates the effect of changes resulting from financing decisions, tax regulations, and capital investments.

13 Weeks Ended

July 30,

July 31,

2011

2010

(dollars in thousands)

Net income

$                      73,848

$                   51,516

Provision for income taxes

47,746

32,394

Interest expense

3,480

3,502

Depreciation and amortization

27,880

26,287

EBITDA

$                    152,954

$                 113,699

Less:  Gain on sale of investment

(13,900)

-

Adjusted EBITDA, as defined

$                    139,054

$                 113,699

% increase in Adjusted EBITDA

22%

26 Weeks Ended

July 30,

July 31,

2011

2010

(dollars in thousands)

Net income

$                    111,346

$                   77,725

Provision for income taxes

72,313

50,358

Interest expense

6,964

7,010

Depreciation and amortization

55,316

52,153

EBITDA

$                    245,939

$                 187,246

Less:  Gain on sale of investment

(13,900)

-

Adjusted EBITDA, as defined

$                    232,039

$                 187,246

% increase in Adjusted EBITDA

24%

Reconciliation of Gross Capital Expenditures to Net Capital Expenditures

The following table represents a reconciliation of the Company's gross capital expenditures to its capital expenditures, net of tenant allowances.

26 Weeks Ended

July 30,

July 31,

2011

2010

(dollars in thousands)

Gross capital expenditures

$              (85,600)

$              (61,611)

Proceeds from sale-leaseback transactions

3,073

5,874

Changes in deferred construction allowances

12,687

4,815

Construction allowance receipts

-

-

Net capital expenditures

$              (69,840)

$              (50,922)

New Store Productivity Calculation

The following calculations represent: (1) the new store productivity calculation on a consolidated basis; and (2) the new store productivity calculation for Dick's Sporting Goods for the quarter ended July 30, 2011.  Golf Galaxy stores and the Company's e-commerce business are excluded from the Dick's Sporting Goods only calculation.  New store productivity compares the sales increase for all stores not included in the same store sales calculation with the increase in store square footage.  

Consolidated

Dick's Sporting Goods Only

13 Weeks Ended

13 Weeks Ended

July 30,

July 31,

July 30,

July 31,

2011

2010

2011

2010

Sales % increase for the period

6.6%

6.9%

Same store sales % increase for   the period

2.5%

1.7%

New store sales % increase (A) (1)

4.0%

5.1%

Store square footage (000's):

Beginning of period

26,054

25,091

24,722

23,612

End of period

26,462

25,168

25,122

23,689

Average for the period

26,258

25,130

24,922

23,651

Average square footage % increase   for the period (B)

4.5%

5.4%

New store productivity (A)/(B) (1)

90.2%

95.0%

(1) - Amounts do not recalculate due to rounding.

SOURCE Dick's Sporting Goods, Inc.



RELATED LINKS

http://www.dickssportinggoods.com