Academy Sports + Outdoors Reports Second Quarter 2024 Results
Academy Sports + Outdoors (Nasdaq: ASO) reported its Q2 2024 financial results, showing a 2.2% decline in net sales to $1,549.0 million and comparable sales of -6.9%. The company's GAAP diluted EPS was $1.95, while adjusted diluted EPS reached $2.03. Despite challenges, Academy saw a 50 basis point expansion in gross margin and a 5% reduction in inventory units per store. The company opened one new store in Q2 and plans to open 15-17 stores in 2024. Academy revised its fiscal 2024 guidance, now expecting net sales between $5,895.0 million and $6,075.0 million, with comparable sales ranging from -6.0% to -3.0%. The company maintains a strong balance sheet and cash flow generation, which it plans to deploy towards its capital allocation strategy.
Academy Sports + Outdoors (Nasdaq: ASO) ha riportato i risultati finanziari per il secondo trimestre del 2024, mostrando un declino del 2,2% nelle vendite nette, pari a 1.549,0 milioni di dollari, e vendite comparabili a -6,9%. L'EPS diluito GAAP dell'azienda era di 1,95 dollari, mentre l'EPS diluito rettificato ha raggiunto i 2,03 dollari. Nonostante le sfide, Academy ha visto un allargamento di 50 punti base del margine lordo e una riduzione del 5% delle unità di inventario per negozio. L'azienda ha aperto un nuovo negozio nel secondo trimestre e prevede di aprirne tra 15 e 17 nel 2024. Academy ha rivisto la sua previsione fiscale per il 2024, ora aspettandosi vendite nette tra 5.895,0 milioni di dollari e 6.075,0 milioni di dollari, con vendite comparabili tra -6,0% e -3,0%. L'azienda mantiene un forte bilancio e generazione di flusso di cassa, che intende destinare alla sua strategia di allocazione del capitale.
Academy Sports + Outdoors (Nasdaq: ASO) informó sus resultados financieros del segundo trimestre de 2024, mostrando una disminución del 2,2% en las ventas netas, alcanzando 1.549,0 millones de dólares y ventas comparables de -6,9%. El EPS diluido GAAP de la compañía fue de 1,95 dólares, mientras que el EPS diluido ajustado alcanzó los 2,03 dólares. A pesar de los desafíos, Academy experimentó una expansión de 50 puntos básicos en el margen bruto y una reducción del 5% en las unidades de inventario por tienda. La compañía abrió una nueva tienda en el segundo trimestre y planea abrir entre 15 y 17 tiendas en 2024. Academy revisó su guía fiscal para 2024, esperando ahora ventas netas entre 5.895,0 millones de dólares y 6.075,0 millones de dólares, con ventas comparables que van del -6,0% al -3,0%. La compañía mantiene un sólido balance general y generación de flujo de efectivo, que planea destinar a su estrategia de asignación de capital.
Academy Sports + Outdoors (Nasdaq: ASO)는 2024년 2분기 재무 결과를 발표하며 순매출이 2.2% 감소하여 15억 4,900만 달러에 달하고 비교 가능한 매출이 -6.9%였다고 전했습니다. 회사의 GAAP 희석 EPS는 1.95달러였으며, 조정된 희석 EPS는 2.03달러에 도달했습니다. 어려움에도 불구하고 Academy는 총 마진이 50bp 확대되고 매장당 재고 단위 수가 5% 감소했다고 밝혔습니다. 2분기 동안 신규 매장 1곳을 오픈했으며 2024년에는 15~17곳의 매장을 새로 열 계획입니다. Academy는 2024 회계연도 가이드를 수정하여 순매출을 58억 9,500만 달러에서 60억 7,500만 달러 사이로 예상하며, 비교 가능한 매출은 -6.0%에서 -3.0%로 설정했습니다. 회사는 강력한 대차대조표와 현금 흐름을 유지하고 있으며, 이를 자본 배분 전략에 사용할 계획입니다.
Academy Sports + Outdoors (Nasdaq: ASO) a publié ses résultats financiers pour le deuxième trimestre 2024, montrant une baisse de 2,2 % des ventes nettes s'élevant à 1 549,0 millions de dollars et des ventes comparables de -6,9 %. Le BAI dilué GAAP de l'entreprise était de 1,95 $, tandis que le BAI dilué ajusté a atteint 2,03 $. En dépit des défis, Academy a constaté une expansion de 50 points de base de la marge brute et une réduction de 5 % des unités d'inventaire par magasin. L'entreprise a ouvert un nouveau magasin au 2ème trimestre et prévoit d'ouvrir entre 15 et 17 magasins en 2024. Academy a révisé ses prévisions fiscales pour 2024, s'attendant désormais à des ventes nettes comprises entre 5 895,0 millions de dollars et 6 075,0 millions de dollars, avec des ventes comparables allant de -6,0 % à -3,0 %. L'entreprise maintient un solide bilan et une génération de cash flow, qu'elle prévoit d'utiliser pour sa stratégie d'allocation de capital.
Academy Sports + Outdoors (Nasdaq: ASO) meldete seine finanziellen Ergebnisse für das zweite Quartal 2024 und zeigte einen Rückgang der Nettoumsätze um 2,2% auf 1.549,0 Millionen Dollar sowie vergleichbare Verkaufszahlen von -6,9%. Der GAAP verwässerte EPS des Unternehmens betrug 1,95 Dollar, während der angepasste verwässerte EPS 2,03 Dollar erreichte. Trotz der Herausforderungen verzeichnete Academy eine Erweiterung der Bruttomarge um 50 Basispunkte und eine Reduzierung des Lagerbestands um 5% pro Geschäft. Das Unternehmen eröffnete im 2. Quartal ein neues Geschäft und plant, 2024 zwischen 15 und 17 Geschäfte zu eröffnen. Academy hat seine Prognose für das Geschäftsjahr 2024 überarbeitet und erwartet nun Nettoumsätze zwischen 5.895,0 Millionen Dollar und 6.075,0 Millionen Dollar, mit vergleichbaren Verkaufszahlen von -6,0% bis -3,0%. Das Unternehmen hat eine starke Bilanz und Cashflow-Generierung, die es für seine Kapitalallokationsstrategie einsetzen möchte.
- Gross margin expansion of 50 basis points
- 5% reduction in inventory units per store
- Adjusted free cash flow increased by 60% year-to-date
- Returned $107 million to shareholders in Q2
- Planned opening of 15-17 new stores in 2024
- Strong balance sheet and top quartile cash flow generation
- Net sales declined 2.2% to $1,549.0 million
- Comparable sales decreased by 6.9%
- GAAP net income decreased 9.2% to $142.6 million
- Adjusted earnings per share declined 2.9% to $2.03
- Revised fiscal 2024 guidance with lower net sales and comparable sales expectations
Insights
Academy Sports + Outdoors' Q2 2024 results reveal a challenging quarter with some concerning trends. Net sales declined by
However, there are some positive aspects. Gross margin expanded by 50 basis points, demonstrating effective inventory management. The company's strong cash generation allowed for
Investors should monitor the company's ability to drive traffic and improve conversion rates in the coming quarters, as these will be important for reversing the negative sales trend.
Academy's Q2 results highlight the challenges facing specialty retailers in the current economic environment. The
The launch of a new loyalty program is a smart move to improve customer retention and increase lifetime value. The focus on targeted marketing and expanding the loyalty program could help drive traffic and conversion in the short term. Long-term success will depend on the company's ability to adapt to changing consumer preferences and navigate the competitive landscape.
The
Academy's Q2 performance reflects broader macroeconomic pressures affecting consumer discretionary spending. The company cited a tough economy and an active storm season as factors impacting sales. These external challenges are likely to persist in the near term, potentially affecting the entire sporting goods retail sector.
The company's revised guidance suggests a cautious outlook for the remainder of fiscal 2024. Projected net sales growth between
Investors should pay attention to Academy's expansion plans, with 15-17 new stores planned for 2024. This growth strategy, combined with omni-channel improvements, could position the company well for a potential economic recovery. The key will be balancing expansion with prudent cost management in the current challenging environment.
Net Sales Decline (2.2)%; Comparable Sales of (6.9)%
GAAP Diluted EPS of
Year-to-Date Adjusted Free Cash Flow +
Fiscal 2024 Guidance Revised; Reaffirming Gross Margin Rate Guidance
KATY, Texas, Sept. 10, 2024 (GLOBE NEWSWIRE) -- Academy Sports and Outdoors, Inc. (Nasdaq: ASO) ("Academy" or the "Company") today announced its financial results for the second quarter ended August 3, 2024.
"Academy continues to make progress against our strategic initiatives demonstrated by the opening of nine new stores this upcoming quarter, new omni-channel enhancements, such as Door Dash, and leveraging customer excitement around the launch of our new loyalty program. In addition, our inventory discipline drove gross margin expansion of 50 basis points and a
| Second Quarter Operating Results ($ in millions, except per share data) | Thirteen Weeks Ended | Change | ||||||||
| August 3, 2024 | July 29, 2023 | % | ||||||||
| Net sales | $ | 1,549.0 | $ | 1,583.1 | (2.2 | )% | ||||
| Comparable sales (1) | (6.9 | ) | % | (7.5 | ) | % | ||||
| Income before income tax | $ | 186.5 | $ | 203.3 | (8.2 | )% | ||||
| Net income | $ | 142.6 | $ | 157.1 | (9.2 | )% | ||||
| Adjusted net income (2) | $ | 148.6 | $ | 163.6 | (9.2 | )% | ||||
| Earnings per common share, diluted | $ | 1.95 | $ | 2.01 | (3.0 | )% | ||||
| Adjusted earnings per common share, diluted (2) | $ | 2.03 | $ | 2.09 | (2.9 | )% | ||||
(1) Fiscal 2023 had a 53rd week, so the Company is using a shifted comp sales calculation which compares weeks 14-26 in Q2 2024 to weeks 15-27
in fiscal 2023.
(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.
| Year-to-Date Operating Results ($ in millions, except per share data) | Twenty-Six Weeks Ended | Change | |||||||||
| August 3, 2024 | July 29, 2023 | % | |||||||||
| Net sales | $ | 2,913.2 | $ | 2,966.7 | (1.8 | )% | |||||
| Comparable sales | (6.4 | ) | % | (7.4 | ) | % | |||||
| Income before income tax | $ | 284.2 | $ | 322.0 | (11.7 | )% | |||||
| Net Income | $ | 219.1 | $ | 251.0 | (12.7 | )% | |||||
| Adjusted net income (1) | $ | 230.3 | $ | 266.6 | (13.6 | )% | |||||
| Earnings per common share, diluted | $ | 2.93 | $ | 3.19 | (8.2 | )% | |||||
| Adjusted earnings per common share, diluted (1) | $ | 3.08 | $ | 3.39 | (9.1 | )% | |||||
(1) 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.
| As of | Change | |||||||
| Balance Sheet ($ in millions) | August 3, 2024 | July 29, 2023 | % | |||||
| Cash and cash equivalents | $ | 324.6 | $ | 311.3 | 4.3 | % | ||
| Merchandise inventories, net | $ | 1,366.6 | $ | 1,309.0 | 4.4 | % | ||
| Long-term debt, net | $ | 483.6 | $ | 583.7 | (17.1 | ) | % | |
| Twenty-Six Weeks Ended | Change | ||||||
| Capital Allocation ($ in millions) | August 3, 2024 | July 29, 2023 | % | ||||
| Share repurchases | $ | 222.3 | $ | 157.6 | 41.1 | % | |
| Dividends paid | $ | 16.1 | $ | 13.8 | 16.7 | % | |
Subsequent to the end of the second quarter, on September 5, 2024, Academy's Board of Directors declared a quarterly cash dividend of
New Store Openings
Academy opened one new store during the second quarter. The Company has opened three stores through the first two fiscal quarters and plans to open a total of 15 to 17 stores in 2024.
2024 Outlook
"Sales for the second quarter were more challenging than expected, impacted by a tough economy, a temporary distribution center backlog related to going live with a new warehouse management system and by a very active storm season across key portions of our footprint. Based on the results of the first half of the year and the expectations for the remainder of fiscal 2024, we are revising our full year guidance, while maintaining our gross margin rate range," said Carl Ford, Chief Financial Officer. "We will continue to manage expenses and inventory levels as we focus on driving topline growth. We have a very healthy balance sheet and top quartile cash flow generation, which we will deploy towards our capital allocation strategy."
Academy is revising its previous guidance for fiscal 2024 as follows:
| Updated Guidance | Previous Guidance | ||||||||||||||
| (in millions, except per share data) | Low end | High end | Low end | High end | |||||||||||
| Net sales | $ | 5,895.0 | $ | 6,075.00 | $ | 6,070.0 | $ | 6,350.0 | |||||||
| Sales growth | (4.3 | ) | % | (1.4 | ) | % | (1.5 | ) | % | 3.0 | % | ||||
| Comparable sales | (6.0 | ) | % | (3.0 | ) | % | (4.0 | ) | % | 1.0 | % | ||||
| Gross margin rate | 34.3 | % | 34.7 | % | 34.3 | % | 34.7 | % | |||||||
| GAAP net income | $ | 400.0 | $ | 460.0 | $ | 455.0 | $ | 530.0 | |||||||
| Adjusted net income (1) | $ | 420.0 | $ | 480.0 | - | - | |||||||||
| GAAP earnings per common share, diluted | $ | 5.45 | $ | 6.20 | $ | 6.05 | $ | 7.05 | |||||||
| Adjusted earnings per common share, diluted (1) | $ | 5.75 | $ | 6.50 | - | - | |||||||||
| Diluted weighted average common shares | 73.5 | 73.5 | ~75 | ~75 | |||||||||||
| Capital expenditures | $ | 175 | $ | 225 | $ | 225 | $ | 275 | |||||||
| Adjusted free cash flow (2) | $ | 290 | $ | 340 | $ | 290 | $ | 375 | |||||||
(1) The Company did not provide guidance for Adjusted net income and Adjusted earnings per share prior to this release. 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.
(2) 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 could be significant; therefore, we are unable to provide an estimate of the most closely comparable GAAP measure at this time.
Note: Fiscal 2023 included 53 weeks compared to 52 weeks in fiscal 2024.
The earnings per common share guidance reflects a tax rate of 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 | 13748429 | |
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 285 stores across 19 states as of the end of the quarter. 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"), and our most recent Quarterly 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 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 fiscal 2024 outlook, the Company’s strategic plans and financial objectives, including the implementation of such plans, the growth of the Company’s business and operations, including the opening of new stores and the expansion into new markets, the rollout of new warehouse management and other systems, the Company’s payment of dividends and declaration of future dividends, including the timing and amount thereof, share repurchases by the Company, the Company's expectations regarding its future performance and future financial condition, and other such matters, and are subject to various risks, uncertainties, 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, environmental, 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 and the Quarterly 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 | Allan Rojas | |
| VP, Investor Relations | Director, Communications | |
| 281-646-5362 | 281-944-6048 | |
| matt.hodges@academy.com | allan.rojas@academy.com |
| ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Amounts in thousands, except per share data) | |||||||||||||||
| Thirteen Weeks Ended | |||||||||||||||
| August 3, 2024 | Percentage of Sales (1) | July 29, 2023 | Percentage of Sales (1) | ||||||||||||
| Net sales | $ | 1,548,980 | 100.0 | % | $ | 1,583,077 | 100.0 | % | |||||||
| Cost of goods sold | 990,255 | 63.9 | % | 1,019,631 | 64.4 | % | |||||||||
| Gross margin | 558,725 | 36.1 | % | 563,446 | 35.6 | % | |||||||||
| Selling, general and administrative expenses | 368,639 | 23.8 | % | 352,483 | 22.3 | % | |||||||||
| Operating income | 190,086 | 12.3 | % | 210,963 | 13.3 | % | |||||||||
| Interest expense, net | 9,071 | 0.6 | % | 11,313 | 0.7 | % | |||||||||
| Write off of deferred loan costs | — | 0.0 | % | — | 0.0 | % | |||||||||
| Other (income), net | (5,531 | ) | (0.4 | ) | % | (3,623 | ) | (0.2 | ) | % | |||||
| Income before income taxes | 186,546 | 12.0 | % | 203,273 | 12.8 | % | |||||||||
| Income tax expense | 43,958 | 2.8 | % | 46,198 | 2.9 | % | |||||||||
| Net income | $ | 142,588 | 9.2 | % | $ | 157,075 | 9.9 | % | |||||||
| Earnings Per Common Share: | |||||||||||||||
| Basic | $ | 1.99 | $ | 2.06 | |||||||||||
| Diluted | $ | 1.95 | $ | 2.01 | |||||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||
| Basic | 71,829 | 76,104 | |||||||||||||
| Diluted | 73,289 | 78,091 | |||||||||||||
(1) Column may not add due to rounding
| ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Amounts in thousands, except per share data) | |||||||||||||||
| Twenty-Six Weeks Ended | |||||||||||||||
| August 3, 2024 | Percentage of Sales (1) | July 29, 2023 | Percentage of Sales (1) | ||||||||||||
| Net sales | $ | 2,913,200 | 100.0 | % | $ | 2,966,686 | 100.0 | % | |||||||
| Cost of goods sold | 1,898,681 | 65.2 | % | 1,936,125 | 65.3 | % | |||||||||
| Gross margin | 1,014,519 | 34.8 | % | 1,030,561 | 34.7 | % | |||||||||
| Selling, general and administrative expenses | 722,050 | 24.8 | % | 693,402 | 23.4 | % | |||||||||
| Operating income | 292,469 | 10.0 | % | 337,159 | 11.4 | % | |||||||||
| Interest expense, net | 18,557 | 0.6 | % | 22,543 | 0.8 | % | |||||||||
| Write off of deferred loan costs | 449 | — | % | — | 0.0 | % | |||||||||
| Other (income), net | (10,735 | ) | (0.4 | ) | % | (7,336 | ) | (0.2 | ) | % | |||||
| Income before income taxes | 284,198 | 9.8 | % | 321,952 | 10.9 | % | |||||||||
| Income tax expense | 65,145 | 2.2 | % | 70,907 | 2.4 | % | |||||||||
| Net income | $ | 219,053 | 7.5 | % | $ | 251,045 | 8.5 | % | |||||||
| Earnings Per Common Share: | |||||||||||||||
| Basic | $ | 3.00 | $ | 3.28 | |||||||||||
| Diluted | $ | 2.93 | $ | 3.19 | |||||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||
| Basic | 72,911 | 76,483 | |||||||||||||
| Diluted | 74,651 | 78,735 | |||||||||||||
(1) Column may not add due to rounding
| ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in thousands, except per share data) | |||||||||
| August 3, 2024 | February 3, 2024 | July 29, 2023 | |||||||
| ASSETS | |||||||||
| CURRENT ASSETS: | |||||||||
| Cash and cash equivalents | $ | 324,568 | $ | 347,920 | $ | 311,336 | |||
| Accounts receivable - less allowance for doubtful accounts of | 12,812 | 19,371 | 14,625 | ||||||
| Merchandise inventories, net | 1,366,616 | 1,194,159 | 1,309,033 | ||||||
| Prepaid expenses and other current assets | 108,392 | 83,450 | 80,490 | ||||||
| Total current assets | 1,812,388 | 1,644,900 | 1,715,484 | ||||||
| PROPERTY AND EQUIPMENT, NET | 470,752 | 445,209 | 404,967 | ||||||
| RIGHT-OF-USE ASSETS | 1,103,242 | 1,111,237 | 1,091,145 | ||||||
| TRADE NAME | 578,550 | 578,236 | 577,929 | ||||||
| GOODWILL | 861,920 | 861,920 | 861,920 | ||||||
| OTHER NONCURRENT ASSETS | 47,506 | 35,211 | 23,971 | ||||||
| Total assets | $ | 4,874,358 | $ | 4,676,713 | $ | 4,675,416 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| CURRENT LIABILITIES: | |||||||||
| Accounts payable | $ | 704,578 | $ | 541,077 | $ | 669,832 | |||
| Accrued expenses and other current liabilities | 259,069 | 217,932 | 234,011 | ||||||
| Current lease liabilities | 124,628 | 117,849 | 112,936 | ||||||
| Current maturities of long-term debt | 3,000 | 3,000 | 3,000 | ||||||
| Total current liabilities | 1,091,275 | 879,858 | 1,019,779 | ||||||
| LONG-TERM DEBT, NET | 483,617 | 484,551 | 583,729 | ||||||
| LONG-TERM LEASE LIABILITIES | 1,083,390 | 1,091,294 | 1,060,996 | ||||||
| DEFERRED TAX LIABILITIES, NET | 252,919 | 254,796 | 260,909 | ||||||
| OTHER LONG-TERM LIABILITIES | 10,763 | 11,564 | 11,964 | ||||||
| Total liabilities | 2,921,964 | 2,722,063 | 2,937,377 | ||||||
| COMMITMENTS AND CONTINGENCIES | |||||||||
| STOCKHOLDERS' EQUITY : | |||||||||
| Preferred stock, | — | — | — | ||||||
| Common stock, | 709 | 743 | 748 | ||||||
| Additional paid-in capital | 244,584 | 242,098 | 236,789 | ||||||
| Retained earnings | 1,707,101 | 1,711,809 | 1,500,502 | ||||||
| Stockholders' equity | 1,952,394 | 1,954,650 | 1,738,039 | ||||||
| Total liabilities and stockholders' equity | $ | 4,874,358 | $ | 4,676,713 | $ | 4,675,416 | |||
| ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in thousands) | ||||||||
| Twenty-Six Weeks Ended | ||||||||
| August 3, 2024 | July 29, 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 219,053 | $ | 251,045 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 57,771 | 52,021 | ||||||
| Non-cash lease expense | 7,271 | 1,604 | ||||||
| Equity compensation | 14,093 | 19,883 | ||||||
| Amortization of deferred loan and other costs | 1,279 | 1,348 | ||||||
| Deferred income taxes | (1,876 | ) | 1,866 | |||||
| Write off of deferred loan costs | 449 | — | ||||||
| Gain on disposal of property and equipment | — | (361 | ) | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable, net | 6,559 | 1,878 | ||||||
| Merchandise inventories, net | (172,457 | ) | (25,516 | ) | ||||
| Prepaid expenses and other current assets | (24,943 | ) | (37,559 | ) | ||||
| Other noncurrent assets | (7,462 | ) | (6,924 | ) | ||||
| Accounts payable | 153,613 | (12,446 | ) | |||||
| Accrued expenses and other current liabilities | 19,073 | (3,316 | ) | |||||
| Income taxes payable | 19,801 | 805 | ||||||
| Other long-term liabilities | (1,201 | ) | (762 | ) | ||||
| Net cash provided by operating activities | 291,023 | 243,566 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (73,425 | ) | (109,759 | ) | ||||
| Purchases of intangible assets | (314 | ) | (213 | ) | ||||
| Proceeds from the sale of property and equipment | — | 2,126 | ||||||
| Net cash used in investing activities | (73,739 | ) | (107,846 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from Revolving Credit Facilities | 3,900 | — | ||||||
| Repayment of Revolving Credit Facilities | (3,900 | ) | — | |||||
| Repayment of Term Loan | (1,500 | ) | (1,500 | ) | ||||
| Debt issuance fees | (5,690 | ) | — | |||||
| Repurchase of common stock for retirement | (220,325 | ) | (156,447 | ) | ||||
| Proceeds from exercise of stock options | 3,575 | 11,639 | ||||||
| Proceeds from issuance of common stock under employee stock purchase program | 2,819 | 2,887 | ||||||
| Taxes paid related to net share settlement of equity awards | (3,412 | ) | (4,283 | ) | ||||
| Dividends paid | (16,103 | ) | (13,825 | ) | ||||
| Net cash used in financing activities | (240,636 | ) | (161,529 | ) | ||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (23,352 | ) | (25,809 | ) | ||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 347,920 | 337,145 | ||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 324,568 | $ | 311,336 | ||||
| ACADEMY SPORTS AND OUTDOORS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) |
Adjusted EBITDA and Adjusted EBIT
We define “Adjusted EBITDA” as net income (loss) before interest expense, net, income tax expense and depreciation, 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 (amounts in thousands):
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||
| August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||||||||||||
| Net income | $ | 142,588 | $ | 157,075 | $ | 219,053 | $ | 251,045 | |||||||||
| Interest expense, net | 9,071 | 11,313 | 18,557 | 22,543 | |||||||||||||
| Income tax expense | 43,958 | 46,198 | 65,145 | 70,907 | |||||||||||||
| Depreciation and amortization | 28,918 | 25,760 | 57,771 | 52,021 | |||||||||||||
| Equity compensation (a) | 7,955 | 8,501 | 14,093 | 19,883 | |||||||||||||
| Write off of deferred loan costs | — | — | 449 | — | |||||||||||||
| Adjusted EBITDA | $ | 232,490 | $ | 248,847 | $ | 375,068 | $ | 416,399 | |||||||||
| Less: Depreciation and amortization | (28,918 | ) | (25,760 | ) | (57,771 | ) | (52,021 | ) | |||||||||
| Adjusted EBIT | $ | 203,572 | $ | 223,087 | $ | 317,297 | $ | 364,378 | |||||||||
| (a) Represents non-cash charges related to equity-based compensation, which vary from period to period depending on certain factors such as 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” 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, and Adjusted Earnings Per Common Share in the following table (amounts in thousands, except per share data):
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||
| August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||||||||||||||
| Net income | $ | 142,588 | $ | 157,075 | $ | 219,053 | $ | 251,045 | |||||||||||
| Equity compensation (a) | 7,955 | 8,501 | 14,093 | 19,883 | |||||||||||||||
| Write off of deferred loan costs | — | — | 449 | — | |||||||||||||||
| Tax effects of these adjustments (b) | (1,901 | ) | (2,008 | ) | (3,333 | ) | (4,378 | ) | |||||||||||
| Adjusted Net Income | $ | 148,642 | $ | 163,568 | $ | 230,262 | $ | 266,550 | |||||||||||
| Earnings per common share: | |||||||||||||||||||
| Basic | $ | 1.99 | $ | 2.06 | $ | 3.00 | $ | 3.28 | |||||||||||
| Diluted | $ | 1.95 | $ | 2.01 | $ | 2.93 | $ | 3.19 | |||||||||||
| Adjusted earnings per common share: | |||||||||||||||||||
| Basic | $ | 2.07 | $ | 2.15 | $ | 3.16 | $ | 3.49 | |||||||||||
| Diluted | $ | 2.03 | $ | 2.09 | $ | 3.08 | $ | 3.39 | |||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||
| Basic | 71,829 | 76,104 | 72,911 | 76,483 | |||||||||||||||
| Diluted | 73,289 | 78,091 | 74,651 | 78,735 | |||||||||||||||
| (a) Represents non-cash charges related to equity-based compensation, which vary from period to period depending on certain factors such as timing and valuation of awards, achievement of performance targets and equity award forfeitures. | |||||||||||||||||||
| (b) For the thirteen and twenty-six weeks ended August 3, 2024 and July 29, 2023, this represents the estimated tax effect (by using the projected full year tax rates for the respective years) of the total adjustments made to arrive at Adjusted Net Income. | |||||||||||||||||||
Adjusted Net Income and Adjusted Earnings Per Common Share, Diluted, Guidance Reconciliation (amounts in millions, except per share data)
| Low Range* | High Range* | |||||||
| Fiscal Year Ending February 1, 2025 | Fiscal Year Ending February 1, 2025 | |||||||
| Net Income | $ | 400.0 | $ | 460.0 | ||||
| Equity compensation (a) | 27.0 | $ | 27.0 | |||||
| Tax effects of these adjustments (a) | (7.0 | ) | $ | (7.0 | ) | |||
| Adjusted Net Income | 420.0 | $ | 480.0 | |||||
| Earnings Per Common Share, Diluted | $ | 5.45 | $ | 6.20 | ||||
| Equity compensation (a) | 0.40 | 0.40 | ||||||
| Tax effects of these adjustments (a) | (0.10 | ) | (0.10 | ) | ||||
| Adjusted Earnings Per Common Share, Diluted | $ | 5.75 | $ | 6.50 | ||||
| * | Amounts presented have been rounded. | |||||||
| (a) | Adjustments include non-cash charges related to equity-based compensation (as defined above), which may vary from period to period. The tax effect of these adjustments is determined by using the projected full year tax rate for the fiscal year. | |||||||
Adjusted Free Cash Flow
We define “Adjusted Free Cash Flow” as net cash provided by (used in) operating activities less net cash used in investing activities. We describe these adjustments reconciling net cash provided by operating activities to Adjusted Free Cash Flow in the following table (amounts in thousands):
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
| August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | |||||||||||||
| Net cash provided by operating activities | $ | 91,346 | $ | 191,431 | $ | 291,023 | $ | 243,566 | ||||||||
| Net cash used in investing activities | (41,384 | ) | (67,299 | ) | (73,739 | ) | (107,846 | ) | ||||||||
| Adjusted Free Cash Flow | $ | 49,962 | $ | 124,132 | $ | 217,284 | $ | 135,720 | ||||||||
FAQ
What were Academy Sports + Outdoors (ASO) Q2 2024 financial results?
How many new stores did Academy Sports + Outdoors (ASO) open in Q2 2024?
What is Academy Sports + Outdoors (ASO) revised guidance for fiscal 2024?
How much did Academy Sports + Outdoors (ASO) return to shareholders in Q2 2024?
