Academy Sports + Outdoors Reports Fourth Quarter and Fiscal 2023 Results
- 12.2% growth in diluted GAAP EPS over the previous year
- 440 basis point improvement in comparable sales from the third quarter
- Opening of seven new stores in the fourth quarter and a total of 14 new stores in 2023
- 22% increase in quarterly dividend
- 3.6% decline in fourth-quarter comparable sales
- Challenges in navigating a choppy macro-economic backdrop
Insights
The reported decline in comparable sales by Academy Sports and Outdoors indicates a contraction in same-store sales, a key indicator of retail health. However, the improvement from the previous quarter's (8.0%) to (3.6%) suggests a potential stabilization in sales trends. The increase in diluted GAAP EPS by 12.2% despite the sales decline points to effective cost management and possibly improved margins or other income streams.
The opening of seven new stores in the fourth quarter and a total of 14 in 2023 reflects a strategic expansion, which could drive future revenue growth. However, it also implies increased operational costs and capital expenditure. The 22% increase in quarterly dividend demonstrates confidence in the company's financial stability and a commitment to shareholder returns, which might be appealing to income-focused investors.
The retail landscape has been facing a 'choppy macro-economic backdrop', as mentioned by the CEO. This could involve fluctuating consumer demand, supply chain disruptions and competitive pressures. Academy Sports and Outdoors' focus on building for the future suggests investment in areas such as e-commerce, product diversification and customer experience enhancements.
While the store openings are a positive sign of growth, the comparable sales decline might raise concerns about the company's ability to increase foot traffic and same-store sales in the existing locations. The company's optimism for 2024 could be based on internal forecasts or new strategic initiatives planned for the year.
The mention of navigating through 'many challenges over the past year' likely refers to broader economic issues such as inflation, interest rate hikes and consumer spending shifts. These factors can significantly impact retailers like Academy Sports and Outdoors. The resilience spoken of by the CEO could indicate an ability to adapt to these economic headwinds, which is important for maintaining competitiveness.
An increase in the dividend amidst a sales decline is not a common industry move, suggesting that the company's balance sheet and cash flows are robust. This financial health, if sustained, may buffer short-term market fluctuations and support long-term strategic investments.
Fourth Quarter Comparable Sales Declined (3.6)%: a +440 Basis Point Increase vs. (
Fourth Quarter Diluted GAAP EPS of
Company Opened Seven New Stores in Fourth Quarter; 14 New Stores in 2023
Quarterly Dividend Increased by
KATY, Texas, March 21, 2024 (GLOBE NEWSWIRE) -- Academy Sports and Outdoors, Inc. (Nasdaq: ASO) ("Academy" or the "Company") today announced its financial results for the fourth quarter and fiscal year ended February 3, 2024. Fourth quarter and fiscal year 2023 included 14 and 53 weeks respectively, compared to 13 and 52 weeks in fourth quarter and fiscal 2022.
"I am proud of the progress we have made and the resiliency that the team has shown, as we have navigated through many challenges over the past year. We have been working through a choppy macro-economic backdrop while putting in place the building blocks for our future," said Steve Lawrence, Chief Executive Officer. "As we move into 2024 and beyond, we remain optimistic about our long-term growth potential. We are the value leader in our space, and we believe this positions us well to serve the active young families who are our core customers. Customers have shown a deep affinity for our brand, and we remain confident that our model is both scalable and transportable. We remain committed to our long-range plan goals and will continue to invest in our future growth so that we can enable more customers to have fun out there by shopping at Academy Sports + Outdoors."
| Fourth Quarter Operating Results ($ in millions, except per share data) | Quarter Ended | Change | ||||||||||||
| February 3, 2024 | January 28, 2023 | % | ||||||||||||
| Net sales | $ | 1,794.8 | $ | 1,746.5 | 2.8 | % | ||||||||
| Comparable sales | (3.6 | ) | % | (5.1 | ) | % | ||||||||
| Income before income tax | $ | 211.3 | $ | 206.1 | 2.5 | % | ||||||||
| Net income(1) | $ | 168.2 | $ | 157.7 | 6.7 | % | ||||||||
| Adjusted net income(2) | $ | 168.2 | $ | 163.5 | 2.9 | % | ||||||||
| Earnings per common share, diluted | $ | 2.21 | $ | 1.97 | 12.2 | % | ||||||||
| Adjusted earnings per common share, diluted(2) | $ | 2.21 | $ | 2.04 | 8.3 | % | ||||||||
| Fiscal 2023 Operating Results ($ in millions, except per share data) | Fiscal Year Ended | Change | ||||||||||||
| February 3, 2024 | January 28, 2023 | % | ||||||||||||
| Net sales | $ | 6,159.3 | $ | 6,395.1 | (3.7 | ) | % | |||||||
| Comparable sales | (6.5 | ) | % | (6.4 | ) | % | ||||||||
| Income before income tax | $ | 663.2 | $ | 818.3 | (19.0 | ) | % | |||||||
| Net income(1) | $ | 519.2 | $ | 628.0 | (17.3 | ) | % | |||||||
| Adjusted net income(2) | $ | 539.5 | $ | 645.8 | (16.5 | ) | % | |||||||
| Earnings per common share, diluted | $ | 6.70 | $ | 7.49 | (10.5 | ) | % | |||||||
| Adjusted earnings per common share, diluted(2) | $ | 6.96 | $ | 7.70 | (9.6 | ) | % | |||||||
(1) Includes a
(2) Adjusted net income and adjusted earnings per common share, diluted are non-GAAP measures. See "Non-GAAP Measures" and "Reconciliations of GAAP to Non-GAAP Financial Measures" below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures.
Note: Fourth quarter and fiscal year 2023 included 14 and 53 weeks respectively, compared to 13 and 52 weeks in fourth quarter and fiscal 2022.
| Balance Sheet ($ in millions) | As of | Change | ||||||||||
| February 3, 2024 | January 28, 2023 | % | ||||||||||
| Cash and cash equivalents | $ | 347.9 | $ | 337.1 | 3.2 | % | ||||||
| Merchandise inventories, net | $ | 1,194.2 | $ | 1,283.5 | (7.0 | ) | % | |||||
| Long-term debt, net | $ | 484.6 | $ | 584.5 | (17.1 | ) | % | |||||
| Capital Allocation ($ in millions) | Fiscal Year Ended | Change | ||||||||||
| February 3, 2024 | January 28, 2023 | % | ||||||||||
| Share repurchases | $ | 204.2 | $ | 489.5 | (58.3 | ) | % | |||||
| Dividends paid | $ | 27.2 | $ | 24.6 | 10.6 | % | ||||||
Subsequent to the end of fiscal 2023, on March 7, 2024, Academy announced its Board of Directors declared a quarterly cash dividend with respect to the quarter ended February 3, 2024, of
New Store Openings
Academy opened seven new stores during the fourth quarter for a total of 14 stores in 2023. In 2024, the company plans on opening 15-17 new stores.
2024 Outlook
“In 2023, topline sales did not meet our expectations, but we were pleased with the Q4 trajectory change. For the third consecutive year, we achieved double digit operating margins and a gross margin rate above
Academy is providing the following initial guidance for fiscal 2024 (year ending February 1, 2025). This guidance takes into account various factors, both internal and external, such as the expected benefits of the Company's growth initiatives, current consumer demand, the competitive environment as well as the potential impacts from inflation and other economic risks. The earnings per share estimate does not include any potential future share repurchases and uses a tax rate of
| Fiscal 2024 Guidance | change (at midpoint) | ||||||||||||||||||
| (in millions, except per share amounts) | Low end | High end | 2023 Actuals(2) | vs. 2023 | |||||||||||||||
| Net sales | $ | 6,070 | $ | 6,350 | $ | 6,159 | 0.8 | % | |||||||||||
| Sales Growth | (1.5 | ) | % | +3.0 | % | ||||||||||||||
| Comparable sales | (4.0 | ) | % | 1.0 | % | (6.5 | ) | % | +500 bps | ||||||||||
| Gross margin rate | 34.3 | % | 34.7 | % | 34.3 | % | +20 bps | ||||||||||||
| Net income | $ | 455 | $ | 530 | $ | 519 | (5.2 | ) | % | ||||||||||
| Earnings per common share, diluted | $ | 5.90 | $ | 6.90 | $ | 6.70 | (4.5 | ) | % | ||||||||||
| Diluted weighted average common shares | ~77 | ~77 | 77.5 | (0.6 | ) | % | |||||||||||||
| Capital Expenditures | $ | 225 | $ | 275 | $ | 208 | 20.2 | % | |||||||||||
| Adjusted free cash flow(1) | $ | 290 | $ | 375 | $ | 330 | 0.8 | % | |||||||||||
(1) Adjusted free cash flow is a non-GAAP measure. We have not reconciled it to the most comparable GAAP measure because it is not possible to do so without unreasonable efforts given the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide an estimate of the most closely comparable GAAP measure at this time.
(2) Fiscal 2023 net sales include approximately
Conference Call Info
Academy will host a conference call today at 10:00 a.m. Eastern Time to discuss its financial results. The call will be webcast at investors.academy.com. The following information is provided for those who would like to participate in the conference call:
| U.S. callers | 1-877-407-3982 | |
| International callers | 1-201-493-6780 | |
| Passcode | 13744704 | |
A replay of the conference call will be available for approximately 30 days on the Company's website.
About Academy Sports + Outdoors
Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to 282 stores across 18 states. Academy’s mission is to provide “Fun for All” and Academy fulfills this mission with a localized merchandising strategy and value proposition that strongly connects with a broad range of consumers. Academy’s product assortment focuses on key categories of outdoor, apparel, footwear and sports & recreation through both leading national brands and a portfolio of private label brands.
Non-GAAP Measures
Adjusted EBITDA, Adjusted EBIT, Adjusted Net Income, Adjusted Earnings per Common Share, and Adjusted Free Cash Flow have been presented in this press release as supplemental measures of financial performance that are not required by, or presented in accordance with, generally accepted accounting principles (“GAAP”). The Company believes that the presentation of these non-GAAP measures is useful to investors as it provides additional information on comparisons between periods by excluding certain items that affect overall comparability. The Company uses these non-GAAP financial measures for business planning purposes, to consider underlying trends of its business, and in measuring its performance relative to others in the market, and believes presenting these measures also provides information to investors and others for understanding and evaluating trends in the Company’s operating results or measuring performance in the same manner as the Company’s management. Non-GAAP financial measures should be considered in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. The calculation of these non-GAAP financial measures may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. For additional information on these non-GAAP financial measures, please see our Annual Report for the fiscal year ended February 3, 2024 (the "Annual Report"), which may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the "SEC"), which are accessible on the SEC's website at www.sec.gov.
See “Reconciliations of GAAP to Non-GAAP Financial Measures” below for reconciliations of non-GAAP financial measures used in this press release (other than Adjusted free cash flow) to their most directly comparable GAAP financial measures.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Academy’s current expectations and are not guarantees of future performance. Forward-looking statements may incorporate words such as “believe,” “expect,” “forward,” “ahead,” “opportunities,” “plans,” “priorities,” “goals,” “future,” “short/long term,” “will,” “should,” or the negative version of these words or other comparable words. The forward-looking statements include, among other things, statements regarding the Company’s future performance, financial condition, and capital deployment, including intent, ability, payment, extent, and timing of capital expenditures, debt repayment, dividends, share repurchases, interest savings, and execution of the capital allocation plan, each of which is subject to various risks, assumptions, or changes in circumstances that are difficult to predict or quantify. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory and other factors that could affect overall consumer spending or our industry, including the possible effects of ongoing macroeconomic challenges, inflation and increases in interest rates, or changes to the financial health of our customers, many of which are beyond Academy's control. These and other important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in Academy's filings with the SEC, including the Annual Report, under the caption "Risk Factors," as may be updated from time to time in our periodic filings with the SEC. Any forward-looking statement in this press release speaks only as of the date of this release. Academy undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
| Investor Contact | Media Contact | |
| Matt Hodges | Elise Hasbrook | |
| VP, Investor Relations | VP, Communications | |
| 281-646-5362 | 281-944-6041 | |
| Matt.hodges@academy.com | Elise.hasbrook@academy.com |
| ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Amounts in thousands, except per share data) | |||||||||||||||||||
| Fiscal Quarter Ended | |||||||||||||||||||
| February 3, 2024 | Percentage of Sales(1) | January 28, 2023 | Percentage of Sales(1) | ||||||||||||||||
| Net sales | $ | 1,794,828 | 100.0 | % | $ | 1,746,503 | 100.0 | % | |||||||||||
| Cost of goods sold | 1,197,819 | 66.7 | % | 1,173,959 | 67.2 | % | |||||||||||||
| Gross margin | 597,009 | 33.3 | % | 572,544 | 32.8 | % | |||||||||||||
| Selling, general and administrative expenses | 393,044 | 21.9 | % | 367,744 | 21.1 | % | |||||||||||||
| Operating income | 203,965 | 11.4 | % | 204,800 | 11.7 | % | |||||||||||||
| Interest expense, net | 12,578 | 0.7 | % | 12,201 | 0.7 | % | |||||||||||||
| Loss on early retirement of debt | 1,525 | 0.1 | % | 1,963 | 0.1 | % | |||||||||||||
| Other (income), net | (21,395 | ) | (1.2 | ) | % | (15,499 | ) | (0.9 | ) | % | |||||||||
| Income before income taxes | 211,257 | 11.8 | % | 206,135 | 11.8 | % | |||||||||||||
| Income tax expense | 43,090 | 2.4 | % | 48,482 | 2.8 | % | |||||||||||||
| Net income | $ | 168,167 | 9.4 | % | $ | 157,653 | 9.0 | % | |||||||||||
| Earnings Per Common Share: | |||||||||||||||||||
| Basic | $ | 2.27 | $ | 2.03 | |||||||||||||||
| Diluted | $ | 2.21 | $ | 1.97 | |||||||||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||||||
| Basic | 74,219 | 77,657 | |||||||||||||||||
| Diluted | 76,035 | 80,074 | |||||||||||||||||
(1) Column may not add due to rounding
| ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share data) | |||||||||||||||||||
| Fiscal Year Ended | |||||||||||||||||||
| February 3, 2024 | Percentage of Sales(1) | January 28, 2023 | Percentage of Sales(1) | ||||||||||||||||
| Net sales | $ | 6,159,291 | 100.0 | % | $ | 6,395,073 | 100.0 | % | |||||||||||
| Cost of goods sold | 4,049,080 | 65.7 | % | 4,182,571 | 65.4 | % | |||||||||||||
| Gross margin | 2,110,211 | 34.3 | % | 2,212,502 | 34.6 | % | |||||||||||||
| Selling, general and administrative expenses | 1,432,356 | 23.3 | % | 1,365,953 | 21.4 | % | |||||||||||||
| Operating income | 677,855 | 11.0 | % | 846,549 | 13.2 | % | |||||||||||||
| Interest expense, net | 46,051 | 0.7 | % | 46,441 | 0.7 | % | |||||||||||||
| Loss on early retirement of debt | 1,525 | 0.0 | % | 1,963 | 0.0 | % | |||||||||||||
| Other (income), net | (32,877 | ) | (0.5 | ) | % | (20,175 | ) | (0.3 | ) | % | |||||||||
| Income before income taxes | 663,156 | 10.8 | % | 818,320 | 12.8 | % | |||||||||||||
| Income tax expense | 143,966 | 2.3 | % | 190,319 | 3.0 | % | |||||||||||||
| Net income | $ | 519,190 | 8.4 | % | $ | 628,001 | 9.8 | % | |||||||||||
| Earnings Per Common Share: | |||||||||||||||||||
| Basic | $ | 6.89 | $ | 7.70 | |||||||||||||||
| Diluted | $ | 6.70 | $ | 7.49 | |||||||||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||||||
| Basic | 75,389 | 81,590 | |||||||||||||||||
| Diluted | 77,469 | 83,895 | |||||||||||||||||
(1) Column may not add due to rounding
| ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except per share data) | |||||||||
| February 3, 2024 | January 28, 2023 | ||||||||
| ASSETS | |||||||||
| CURRENT ASSETS: | |||||||||
| Cash and cash equivalents | $ | 347,920 | $ | 337,145 | |||||
| Accounts receivable - less allowance for doubtful accounts of | 19,371 | 16,503 | |||||||
| Merchandise inventories, net | 1,194,159 | 1,283,517 | |||||||
| Prepaid expenses and other current assets | 83,450 | 47,747 | |||||||
| Assets held for sale | — | 1,763 | |||||||
| Total current assets | 1,644,900 | 1,686,675 | |||||||
| PROPERTY AND EQUIPMENT, NET | 445,209 | 351,424 | |||||||
| RIGHT-OF-USE ASSETS | 1,111,237 | 1,100,085 | |||||||
| TRADE NAME | 578,236 | 577,716 | |||||||
| GOODWILL | 861,920 | 861,920 | |||||||
| OTHER NONCURRENT ASSETS | 35,211 | 17,619 | |||||||
| Total assets | $ | 4,676,713 | $ | 4,595,439 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| CURRENT LIABILITIES: | |||||||||
| Accounts payable | $ | 541,077 | $ | 686,472 | |||||
| Accrued expenses and other current liabilities | 217,932 | 240,169 | |||||||
| Current lease liabilities | 117,849 | 109,075 | |||||||
| Current maturities of long-term debt | 3,000 | 3,000 | |||||||
| Total current liabilities | 879,858 | 1,038,716 | |||||||
| LONG-TERM DEBT, NET | 484,551 | 584,456 | |||||||
| LONG-TERM LEASE LIABILITIES | 1,091,294 | 1,072,192 | |||||||
| DEFERRED TAX LIABILITIES, NET | 254,796 | 259,043 | |||||||
| OTHER LONG-TERM LIABILITIES | 11,564 | 12,726 | |||||||
| Total liabilities | 2,722,063 | 2,967,133 | |||||||
| COMMITMENTS AND CONTINGENCIES | |||||||||
| STOCKHOLDERS' EQUITY: | |||||||||
| Preferred stock, | — | — | |||||||
| Common stock, | 743 | 767 | |||||||
| Additional paid-in capital | 242,098 | 216,209 | |||||||
| Retained earnings | 1,711,809 | 1,411,330 | |||||||
| Stockholders' equity | 1,954,650 | 1,628,306 | |||||||
| Total liabilities and stockholders' equity | $ | 4,676,713 | $ | 4,595,439 | |||||
| ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) | |||||||||
| Fiscal Year Ended | |||||||||
| February 3, 2024 | January 28, 2023 | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
| Net income | $ | 519,190 | $ | 628,001 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
| Depreciation and amortization | 110,936 | 106,762 | |||||||
| Non-cash lease expense | 16,723 | (16 | ) | ||||||
| Equity compensation | 24,377 | 21,175 | |||||||
| Amortization of deferred loan, terminated interest rate swaps and other costs | 2,739 | 3,054 | |||||||
| Deferred income taxes | (4,247 | ) | 41,831 | ||||||
| Non-cash loss on early retirement of debt | 1,525 | 1,963 | |||||||
| Gain on disposal of property and equipment | (388 | ) | — | ||||||
| Changes in assets and liabilities: | |||||||||
| Accounts receivable, net | (2,868 | ) | 3,215 | ||||||
| Merchandise inventories, net | 89,358 | (111,709 | ) | ||||||
| Prepaid expenses and other current assets | (50,225 | ) | (11,287 | ) | |||||
| Other noncurrent assets | (18,761 | ) | (14,088 | ) | |||||
| Accounts payable | (142,346 | ) | (55,400 | ) | |||||
| Accrued expenses and other current liabilities | (26,712 | ) | (58,395 | ) | |||||
| Income taxes payable | 17,640 | (3,407 | ) | ||||||
| Other long-term liabilities | (1,162 | ) | 306 | ||||||
| Net cash provided by operating activities | 535,779 | 552,005 | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
| Capital expenditures | (207,770 | ) | (108,304 | ) | |||||
| Purchases of intangible assets | (520 | ) | (502 | ) | |||||
| Proceeds from the sale of property and equipment | 2,151 | — | |||||||
| Net cash used in investing activities | (206,139 | ) | (108,806 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
| Repayment of Term Loan | (103,000 | ) | (103,000 | ) | |||||
| Proceeds from exercise of stock options | 16,636 | 21,249 | |||||||
| Proceeds from issuance of common stock under employee stock purchase program | 5,484 | 5,043 | |||||||
| Taxes paid related to net share settlement of equity awards | (7,971 | ) | (1,236 | ) | |||||
| Repurchase of common stock for retirement | (202,796 | ) | (489,475 | ) | |||||
| Dividends paid | (27,218 | ) | (24,633 | ) | |||||
| Net cash used in financing activities | (318,865 | ) | (592,052 | ) | |||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 10,775 | (148,853 | ) | ||||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 337,145 | 485,998 | |||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 347,920 | $ | 337,145 | |||||
| ACADEMY SPORTS AND OUTDOORS, INC. RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL MEASURES (Unaudited) (Dollar amounts in thousands) |
Adjusted EBITDA and Adjusted EBIT
We define “Adjusted EBITDA” as net income (loss) before interest expense, net, income tax expense and depreciation, and amortization, and impairment, and other adjustments included in the table below. We define “Adjusted EBIT” as Adjusted EBITDA less depreciation and amortization. We describe these adjustments reconciling net income (loss) to Adjusted EBITDA and Adjusted EBIT in the following table.
| Fiscal Quarter Ended | Fiscal Year Ended | ||||||||||||||||||||
| February 3, 2024 | January 28, 2023 | February 3, 2024 | January 28, 2023 | ||||||||||||||||||
| Net income (a) | $ | 168,167 | $ | 157,653 | $ | 519,190 | $ | 628,001 | |||||||||||||
| Interest expense, net | 12,578 | 12,201 | 46,051 | 46,441 | |||||||||||||||||
| Income tax expense | 43,090 | 48,482 | 143,966 | 190,319 | |||||||||||||||||
Depreciation and amortization | 31,542 | 27,910 | 110,936 | 106,762 | |||||||||||||||||
Equity compensation (b) | (1,751 | ) | 5,689 | 24,377 | 21,175 | ||||||||||||||||
Loss on early retirement of debt | 1,525 | 1,963 | 1,525 | 1,963 | |||||||||||||||||
| Adjusted EBITDA | $ | 255,151 | $ | 253,898 | $ | 846,045 | $ | 994,661 | |||||||||||||
| Less: Depreciation and amortization | (31,542 | ) | (27,910 | ) | (110,936 | ) | (106,762 | ) | |||||||||||||
| Adjusted EBIT | $ | 223,609 | $ | 225,988 | $ | 735,109 | $ | 887,899 | |||||||||||||
| (a) Net income for the fourth quarter and year ended February 3, 2024, includes a | |||||||||||||||||||||
| (b) Represents non-cash charges related to equity based compensation, which vary from period to period depending on certain factors such as the timing and valuation of awards, achievement of performance targets and equity award forfeitures. | |||||||||||||||||||||
Adjusted Net Income and Adjusted Earnings Per Common Share
We define “Adjusted Net Income (Loss)” as net income (loss), plus other adjustments included in the table below, less the tax effect of these adjustments. We define “Adjusted Earnings per Common Share, Basic” as Adjusted Net Income divided by the basic weighted average common shares outstanding during the period and “Adjusted Earnings per Common Share, Diluted” as Adjusted Net Income divided by the diluted weighted average common shares outstanding during the period. We describe these adjustments reconciling net income (loss) to Adjusted Net Income (Loss) and Adjusted Earnings Per Share in the following table.
| Fiscal Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
| February 3, 2024 | January 28, 2023 | February 3, 2024 | January 28, 2023 | ||||||||||||||||
| Net income (a) | $ | 168,167 | $ | 157,653 | $ | 519,190 | $ | 628,001 | |||||||||||
| Equity compensation (b) | (1,751 | ) | 5,689 | 24,377 | 21,175 | ||||||||||||||
| Loss on early retirement of debt, net | 1,525 | 1,963 | 1,525 | 1,963 | |||||||||||||||
| Tax effects of these adjustments (c) | 288 | (1,789 | ) | (5,621 | ) | (5,382 | ) | ||||||||||||
| Adjusted Net Income | 168,229 | 163,516 | 539,471 | 645,757 | |||||||||||||||
| Earnings per common share | |||||||||||||||||||
| Basic | $ | 2.27 | $ | 2.03 | $ | 6.89 | $ | 7.70 | |||||||||||
| Diluted | $ | 2.21 | $ | 1.97 | $ | 6.70 | $ | 7.49 | |||||||||||
| Adjusted Earnings per Share | |||||||||||||||||||
| Basic | $ | 2.27 | $ | 2.11 | $ | 7.16 | $ | 7.91 | |||||||||||
| Diluted | $ | 2.21 | $ | 2.04 | $ | 6.96 | $ | 7.70 | |||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||
| Basic | 74,219 | 77,657 | 75,389 | 81,590 | |||||||||||||||
| Diluted | 76,035 | 80,074 | 77,469 | 83,895 | |||||||||||||||
| (a) Net income for the fourth quarter and year ended February 3, 2024, includes a | |||||||||||||||||||
| (b) Represents non-cash charges related to equity based compensation, which vary from period to period depending on certain factors such as the timing and valuation of awards, achievement of performance targets and equity award forfeitures. | |||||||||||||||||||
| (c) Represents the tax effect of the total adjustments made to arrive at Adjusted Net Income at our historical tax rate. | |||||||||||||||||||
Adjusted Free Cash Flow
We define “Adjusted Free Cash Flow” as net cash provided by (used in) operating activities less net cash provided by (used in) investing activities. We describe these adjustments reconciling net cash provided by operating activities to Adjusted Free Cash Flow in the following table.
| Fiscal Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
| February 3, 2024 | January 28, 2023 | February 3, 2024 | January 28, 2023 | ||||||||||||||||
| Net cash provided by operating activities | $ | 234,737 | $ | 242,836 | $ | 535,779 | $ | 552,005 | |||||||||||
| Net cash used in investing activities | (55,948 | ) | (28,995 | ) | (206,139 | ) | (108,806 | ) | |||||||||||
| Adjusted Free Cash Flow | $ | 178,789 | $ | 213,841 | $ | 329,640 | $ | 443,199 | |||||||||||
FAQ
What was the percentage change in diluted GAAP EPS for Academy Sports and Outdoors, Inc. (ASO) in the fourth quarter?
How many new stores did Academy Sports and Outdoors, Inc. (ASO) open in the fourth quarter of 2023?
What was the percentage increase in the quarterly dividend for Academy Sports and Outdoors, Inc. (ASO)?
