Academy Sports + Outdoors Reports Third Quarter 2024 Results
Academy Sports + Outdoors (ASO) reported third quarter 2024 results with net sales declining 3.9% to $1.34 billion and comparable sales falling 4.9%. The company's net income decreased 34.2% to $65.8 million, with diluted EPS of $0.92. Despite challenges, the Outdoor division saw a 7% sales increase, and the company opened 16 new stores in fiscal 2024.
The company narrowed its fiscal 2024 guidance, projecting net sales between $5.89B and $5.94B. The Board authorized a new $700 million share repurchase program and declared a quarterly dividend of $0.11 per share. Academy plans to open 20-25 new stores in fiscal 2025, representing approximately 7.5% annual unit growth.
Academy Sports + Outdoors (ASO) ha pubblicato i risultati del terzo trimestre 2024, con un calo del 3,9% nelle vendite nette, scendendo a 1,34 miliardi di dollari, e una diminuzione delle vendite comparabili del 4,9%. Il reddito netto dell'azienda è calato del 34,2% a 65,8 milioni di dollari, con un utile per azione diluito di 0,92 dollari. Nonostante le difficoltà, la divisione Outdoor ha registrato un aumento delle vendite del 7% e l'azienda ha aperto 16 nuovi negozi nel corso dell'anno fiscale 2024.
L'azienda ha ristretto le previsioni per l'anno fiscale 2024, prevedendo vendite nette comprese tra 5,89 miliardi e 5,94 miliardi di dollari. Il Consiglio di Amministrazione ha autorizzato un nuovo programma di riacquisto di azioni del valore di 700 milioni di dollari e ha dichiarato un dividendo trimestrale di 0,11 dollari per azione. Academy prevede di aprire tra 20 e 25 nuovi negozi nell'anno fiscale 2025, corrispondente a una crescita annua delle unità di circa il 7,5%.
Academy Sports + Outdoors (ASO) reportó los resultados del tercer trimestre de 2024, con una disminución del 3,9% en las ventas netas, bajando a 1,34 mil millones de dólares, y una caída del 4,9% en las ventas comparables. El ingreso neto de la compañía disminuyó un 34,2%, situándose en 65,8 millones de dólares, con una utilidad por acción diluida de 0,92 dólares. A pesar de los desafíos, la división Outdoor vio un aumento del 7% en las ventas, y la compañía abrió 16 nuevas tiendas en el año fiscal 2024.
La empresa afinó sus proyecciones para el año fiscal 2024, proyectando ventas netas entre 5,89 mil millones y 5,94 mil millones de dólares. La Junta autorizó un nuevo programa de recompra de acciones por 700 millones de dólares y declaró un dividendo trimestral de 0,11 dólares por acción. Academy planea abrir entre 20 y 25 nuevas tiendas en el año fiscal 2025, lo que representa un crecimiento anual del 7,5% en unidades.
아카데미 스포츠 + 아울도어 (ASO)는 2024년 3분기 결과를 보고했으며, 순매출이 3.9% 감소하여 13억 4천만 달러에 이르렀고, 비교 매출은 4.9% 떨어졌습니다. 회사의 순이익은 34.2% 줄어든 6천 580만 달러로, 희석 주당순이익(EPS)은 0.92달러입니다. 어려움에도 불구하고 아울도어 부문은 7%의 매출 성장을 기록했으며, 2024 회계연도 동안 16개의 새로운 매장을 열었습니다.
회사는 2024 회계연도 가이던스를 축소하여 순매출을 58억 9천만 달러에서 59억 4천만 달러로 예상하고 있습니다. 이사회는 새로운 7억 달러 규모의 자사주매입 계획을 승인하고, 주당 0.11달러의 분기 배당금을 선언했습니다. 아카데미는 2025 회계연도에 20~25개의 새로운 매장을 열 계획을 세우고 있으며, 이는 연평균 단위 성장률 약 7.5%에 해당합니다.
Academy Sports + Outdoors (ASO) a annoncé ses résultats pour le troisième trimestre 2024, avec des ventes nettes en baisse de 3,9%, atteignant 1,34 milliard de dollars, et des ventes comparables en baisse de 4,9%. Le revenu net de l'entreprise a diminué de 34,2% pour s'établir à 65,8 millions de dollars, avec un bénéfice par action dilué de 0,92 dollar. Malgré les défis, la division Outdoor a enregistré une augmentation des ventes de 7% et l'entreprise a ouvert 16 nouveaux magasins au cours de l'exercice 2024.
L'entreprise a révisé ses prévisions pour l'exercice 2024, projetant des ventes nettes entre 5,89 milliards et 5,94 milliards de dollars. Le conseil d'administration a autorisé un nouveau programme de rachat d'actions de 700 millions de dollars et a déclaré un dividende trimestriel de 0,11 dollar par action. Academy prévoit d'ouvrir de 20 à 25 nouveaux magasins au cours de l'exercice 2025, ce qui représente une croissance annuelle d'environ 7,5% des unités.
Academy Sports + Outdoors (ASO) hat die Ergebnisse für das dritte Quartal 2024 veröffentlicht, wobei die Nettoumsätze um 3,9% auf 1,34 Milliarden Dollar zurückgingen und die vergleichbaren Umsätze um 4,9% sanken. Der Nettoertrag des Unternehmens verringerte sich um 34,2% auf 65,8 Millionen Dollar, mit einem verwässerten EPS von 0,92 Dollar. Trotz der Herausforderungen verzeichnete die Outdoor-Sparte einen Umsatzanstieg von 7% und das Unternehmen eröffnete 16 neue Geschäfte im Geschäftsjahr 2024.
Das Unternehmen hat die Prognose für das Geschäftsjahr 2024 eingeengt und erwartet Nettoumsätze zwischen 5,89 Milliarden und 5,94 Milliarden Dollar. Der Vorstand genehmigte ein neues Aktienrückkaufprogramm über 700 Millionen Dollar und erklärte eine vierteljährliche Dividende von 0,11 Dollar pro Aktie. Academy plant, im Geschäftsjahr 2025 zwischen 20 und 25 neue Geschäfte zu eröffnen, was einem jährlichen Wachstum von etwa 7,5% entspricht.
- Outdoor division achieved 7% sales growth in Q3
- Year-to-date operating cash flow increased 29%
- New $700 million share repurchase program authorized
- 16 new stores opened in 2024 exceeding expectations
- Long-term debt reduced by 17.2% year-over-year
- Net sales declined 3.9% to $1.34 billion in Q3
- Comparable sales decreased 4.9% in Q3
- Net income fell 34.2% to $65.8 million
- Diluted EPS decreased 29.8% to $0.92
- Year-to-date net income down 18.9%
Insights
Net Sales Decline (3.9)%; Comparable Sales of (4.9)%
GAAP Diluted EPS of
Year-to-Date GAAP Operating Cash Flow +
Authorizes New
Plans to Open 20 to 25 New Stores in Fiscal 2025
KATY, Texas, Dec. 10, 2024 (GLOBE NEWSWIRE) -- Academy Sports and Outdoors, Inc. (Nasdaq: ASO) ("Academy" or the "Company") today announced its results for the third quarter ended November 2, 2024. Financial and operational highlights include:
- Opened 16 stores in fiscal 2024, consistent with plan, including further expansion into Ohio
- Narrowed fiscal 2024 guidance to Net Sales of
$5.89B to$5.94B
"We delivered third quarter sales in line with expectations and were encouraged to see an improvement in comp sales trends versus the first half of the year,” said Steve Lawrence, Chief Executive Officer. “In our Outdoor division, the team drove a sales increase in the quarter of
| Third Quarter Results ($ in millions, except per share data) | Thirteen Weeks Ended | Change | |||||||||
| November 2, 2024 | October 28, 2023 | % | |||||||||
| Net sales | $ | 1,343.3 | $ | 1,397.8 | (3.9 | ) | % | ||||
| Comparable sales(2) | (4.9 | ) | % | (8.0 | ) | % | |||||
| Income before income tax | $ | 88.7 | $ | 129.9 | (31.7 | ) | % | ||||
| Net income | $ | 65.8 | $ | 100.0 | (34.2 | ) | % | ||||
| Adjusted net income(1) | $ | 70.5 | $ | 104.7 | (32.7 | ) | % | ||||
| Earnings per common share, diluted | $ | 0.92 | $ | 1.31 | (29.8 | ) | % | ||||
| Adjusted earnings per common share, diluted(1) | $ | 0.98 | $ | 1.38 | (29.0 | ) | % | ||||
| Year-to-Date Results ($ in millions, except per share data) | Thirty-Nine Weeks Ended | Change | ||||||||||
| November 2, 2024 | October 28, 2023 | % | ||||||||||
| Net sales | $ | 4,256.5 | $ | 4,364.5 | (2.5 | ) | % | |||||
| Comparable sales(2) | (5.9 | ) | % | (7.6 | ) | % | ||||||
| Income before income tax | $ | 372.9 | $ | 451.9 | (17.5 | ) | % | |||||
| Net Income | $ | 284.8 | $ | 351.0 | (18.9 | ) | % | |||||
| Adjusted net income(1) | $ | 300.7 | $ | 371.2 | (19.0 | ) | % | |||||
| Earnings per common share, diluted | $ | 3.86 | $ | 4.51 | (14.4 | ) | % | |||||
| Adjusted earnings per common share, diluted(1) | $ | 4.08 | $ | 4.77 | (14.5 | ) | % | |||||
| As of | Change | |||||||||||
| Balance Sheet ($ in millions) | November 2, 2024 | October 28, 2023 | % | |||||||||
| Cash and cash equivalents | $ | 296.0 | $ | 274.8 | 7.7 | % | ||||||
| Merchandise inventories, net | $ | 1,525.0 | $ | 1,492.2 | 2.2 | % | ||||||
| Long-term debt, net | $ | 483.1 | $ | 583.4 | (17.2 | ) | % | |||||
| Thirty-Nine Weeks Ended | Change | |||||||||||
| Capital Allocation($ in millions) | November 2, 2024 | October 28, 2023 | % | |||||||||
| Share repurchases | $ | 276.6 | $ | 201.5 | 37.3 | % | ||||||
| Dividends paid | $ | 23.8 | $ | 20.5 | 16.1 | % | ||||||
Inventory and Cash Flow Management
Academy generated
“Inventories remain well managed, with units per store down
Shareholder Returns
During the quarter, Academy repurchased approximately one million shares of its outstanding common stock at a weighted average purchase price of
Subsequent to the end of the third quarter, on December 4, 2024, Academy's Board of Directors declared a quarterly cash dividend of
New
In conjunction with its approval of the dividend, Academy’s Board of Directors approved a new share repurchase program authorizing the Company to repurchase up to
The new share repurchase program replaces the preceding share repurchase program, of which
Mr. Lawrence added, “Our new share repurchase program reflects our strong sustainable cash flow generation, continuing confidence in our business model and growth strategy, and continued commitment to driving value for our shareholders. We view returning capital directly to shareholders through repurchases and our dividend as integral to our capital allocation strategy, along with ongoing investments in the business.”
New Store Openings
Academy opened eight new stores during the third quarter and another five new stores early in the fourth quarter, bringing the Company's total store count to 298. To date in fiscal 2024, the Company has opened a total of 16 new stores, equating to approximately
The Company plans to open 20 to 25 stores in 2025, representing approximately
2024 Outlook
"We are looking forward to a strong fourth quarter and holiday season, as our team continues to focus on execution and serving our customers,” said Mr. Ford. “Based on our third quarter performance and expectations for the remainder of fiscal 2024, we are narrowing our full year sales and earnings guidance.”
Academy is updating its previous guidance for fiscal 20242 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 | $ | 5,940.0 | $ | 5,895.0 | $ | 6,075.0 | |||||||||||
| Sales growth | (4.3 | ) | % | (3.6 | ) | % | (4.3 | ) | % | (1.4 | ) | % | |||||||
| Comparable sales(2) | (6.0 | ) | % | (5.0 | ) | % | (6.0 | ) | % | (3.0 | ) | % | |||||||
| Gross margin rate | 34.3 | % | 34.5 | % | 34.3 | % | 34.7 | % | |||||||||||
| GAAP net income | $ | 400.0 | $ | 425.0 | $ | 400.0 | $ | 460.0 | |||||||||||
| Adjusted net income(1) | $ | 420.0 | $ | 445.0 | $ | 420.0 | $ | 480.0 | |||||||||||
| GAAP earnings per common share, diluted | $ | 5.50 | $ | 5.80 | $ | 5.45 | $ | 6.20 | |||||||||||
| Adjusted earnings per common share, diluted(1) | $ | 5.80 | $ | 6.10 | $ | 5.75 | $ | 6.50 | |||||||||||
| Diluted weighted average common shares | 73.1 | 73.1 | 73.5 | 73.5 | |||||||||||||||
| Capital expenditures | $ | 185 | $ | 210 | $ | 175 | $ | 225 | |||||||||||
| Adjusted free cash flow(1), (3) | $ | 310 | $ | 350 | $ | 290 | $ | 340 | |||||||||||
The earnings per common share guidance reflects a tax rate of approximately
Notes:
| (1) | Adjusted net income, adjusted earnings per common share (EPS), diluted, and adjusted free cash flow 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. | |
| (2) | Fiscal 2023 included 53 weeks compared to 52 weeks in fiscal 2024, so the Company is using a shifted comparable sales calculation which compares weeks 27-39 in fiscal 2024 to weeks 28-40 in fiscal 2023. | |
| (3) | We have not reconciled guidance for adjusted free cash flow 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. |
Conference Call Info
Academy will host a conference call today at 10:00 a.m. Eastern Time to discuss its 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 | 13750156 |
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 298 stores across 19 states as of the date of this press release. 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, to support future dividend and share repurchase program growth, 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, trade policy changes or additional tariffs, 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 |
| Brad Morris | Meredith Klein |
| Director, Strategic Initiatives | VP, Communications |
| 832-739-4373 | 346-823-6615 |
| brad.morris@academy.com | meredith.klein@academy.com |
| ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Amounts in thousands, except per share data) | |||||||||||||||
| Thirteen Weeks Ended | |||||||||||||||
| November 2, 2024 | Percentage of Sales(1) | October 28, 2023 | Percentage of Sales(1) | ||||||||||||
| Net sales | $ | 1,343,330 | 100.0 | % | $ | 1,397,777 | 100.0 | % | |||||||
| Cost of goods sold | 886,617 | 66.0 | % | 915,136 | 65.5 | % | |||||||||
| Gross margin | 456,713 | 34.0 | % | 482,641 | 34.5 | % | |||||||||
| Selling, general and administrative expenses | 365,239 | 27.2 | % | 345,910 | 24.7 | % | |||||||||
| Operating income | 91,474 | 6.8 | % | 136,731 | 9.8 | % | |||||||||
| Interest expense, net | 9,149 | 0.7 | % | 10,930 | 0.8 | % | |||||||||
| Write off of deferred loan costs | — | 0.0 | % | — | 0.0 | % | |||||||||
| Other (income), net | (6,406 | ) | (0.5 | ) | % | (4,146 | ) | (0.3 | ) | % | |||||
| Income before income taxes | 88,731 | 6.6 | % | 129,947 | 9.3 | % | |||||||||
| Income tax expense | 22,968 | 1.7 | % | 29,969 | 2.1 | % | |||||||||
| Net income | $ | 65,763 | 4.9 | % | $ | 99,978 | 7.2 | % | |||||||
| Earnings Per Common Share: | |||||||||||||||
| Basic | $ | 0.94 | $ | 1.34 | |||||||||||
| Diluted | $ | 0.92 | $ | 1.31 | |||||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||
| Basic | 70,319 | 74,461 | |||||||||||||
| Diluted | 71,774 | 76,057 | |||||||||||||
(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) | |||||||||||||||
| Thirty-Nine Weeks Ended | |||||||||||||||
| November 2, 2024 | Percentage of Sales(1) | October 28, 2023 | Percentage of Sales(1) | ||||||||||||
| Net sales | $ | 4,256,530 | 100.0 | % | $ | 4,364,463 | 100.0 | % | |||||||
| Cost of goods sold | 2,785,299 | 65.4 | % | 2,851,261 | 65.3 | % | |||||||||
| Gross margin | 1,471,231 | 34.6 | % | 1,513,202 | 34.7 | % | |||||||||
| Selling, general and administrative expenses | 1,087,287 | 25.5 | % | 1,039,312 | 23.8 | % | |||||||||
| Operating income | 383,944 | 9.0 | % | 473,890 | 10.9 | % | |||||||||
| Interest expense, net | 27,706 | 0.7 | % | 33,473 | 0.8 | % | |||||||||
| Write off of deferred loan costs | 449 | — | % | — | 0.0 | % | |||||||||
| Other (income), net | (17,140 | ) | (0.4 | ) | % | (11,482 | ) | (0.3 | ) | % | |||||
| Income before income taxes | 372,929 | 8.8 | % | 451,899 | 10.4 | % | |||||||||
| Income tax expense | 88,113 | 2.1 | % | 100,876 | 2.3 | % | |||||||||
| Net income | $ | 284,816 | 6.7 | % | $ | 351,023 | 8.0 | % | |||||||
| Earnings Per Common Share: | |||||||||||||||
| Basic | $ | 3.95 | $ | 4.63 | |||||||||||
| Diluted | $ | 3.86 | $ | 4.51 | |||||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||
| Basic | 72,047 | 75,809 | |||||||||||||
| Diluted | 73,744 | 77,893 | |||||||||||||
(1) Column may not add due to rounding
| ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in thousands, except per share data) | ||||||||
| November 2, 2024 | February 3, 2024 | October 28, 2023 | ||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 295,996 | $ | 347,920 | $ | 274,827 | ||
| Accounts receivable - less allowance for doubtful accounts of | 18,124 | 19,371 | 17,706 | |||||
| Merchandise inventories, net | 1,524,978 | 1,194,159 | 1,492,219 | |||||
| Prepaid expenses and other current assets | 68,884 | 83,450 | 110,823 | |||||
| Total current assets | 1,907,982 | 1,644,900 | 1,895,575 | |||||
| PROPERTY AND EQUIPMENT, NET | 503,115 | 445,209 | 429,648 | |||||
| RIGHT-OF-USE ASSETS | 1,189,116 | 1,111,237 | 1,126,825 | |||||
| TRADE NAME | 578,815 | 578,236 | 578,071 | |||||
| GOODWILL | 861,920 | 861,920 | 861,920 | |||||
| OTHER NONCURRENT ASSETS | 50,830 | 35,211 | 29,231 | |||||
| Total assets | $ | 5,091,778 | $ | 4,676,713 | $ | 4,921,270 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 764,489 | $ | 541,077 | $ | 820,428 | ||
| Accrued expenses and other current liabilities | 314,289 | 217,932 | 232,046 | |||||
| Current lease liabilities | 130,236 | 117,849 | 117,141 | |||||
| Current maturities of long-term debt | 3,000 | 3,000 | 3,000 | |||||
| Total current liabilities | 1,212,014 | 879,858 | 1,172,615 | |||||
| LONG-TERM DEBT, NET | 483,148 | 484,551 | 583,364 | |||||
| LONG-TERM LEASE LIABILITIES | 1,173,158 | 1,091,294 | 1,095,812 | |||||
| DEFERRED TAX LIABILITIES, NET | 250,970 | 254,796 | 264,565 | |||||
| OTHER LONG-TERM LIABILITIES | 10,961 | 11,564 | 11,827 | |||||
| Total liabilities | 3,130,251 | 2,722,063 | 3,128,183 | |||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Preferred stock, | — | — | — | |||||
| Common stock, | 699 | 743 | 741 | |||||
| Additional paid-in capital | 245,511 | 242,098 | 239,447 | |||||
| Retained earnings | 1,715,317 | 1,711,809 | 1,552,899 | |||||
| Stockholders' equity | 1,961,527 | 1,954,650 | 1,793,087 | |||||
| Total liabilities and stockholders' equity | $ | 5,091,778 | $ | 4,676,713 | $ | 4,921,270 | ||
| ACADEMY SPORTS AND OUTDOORS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in thousands) | |||||||
| Thirty-Nine Weeks Ended | |||||||
| November 2, 2024 | October 28, 2023 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income | $ | 284,816 | $ | 351,023 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 87,108 | 79,394 | |||||
| Non-cash lease expense | 16,773 | 4,945 | |||||
| Equity compensation | 20,389 | 26,128 | |||||
| Amortization of deferred loan and other costs | 1,925 | 2,019 | |||||
| Deferred income taxes | (3,826 | ) | 5,522 | ||||
| Write off of deferred loan costs | 449 | — | |||||
| Gain on disposal of property and equipment | — | (363 | ) | ||||
| Changes in assets and liabilities: | |||||||
| Accounts receivable, net | 1,247 | (1,203 | ) | ||||
| Merchandise inventories, net | (330,819 | ) | (208,702 | ) | |||
| Prepaid expenses and other current assets | 14,566 | (59,234 | ) | ||||
| Other noncurrent assets | (11,222 | ) | (12,471 | ) | |||
| Accounts payable | 214,264 | 128,301 | |||||
| Accrued expenses and other current liabilities | 48,464 | (5,508 | ) | ||||
| Income taxes payable | 44,782 | (7,910 | ) | ||||
| Other long-term liabilities | (1,004 | ) | (899 | ) | |||
| Net cash provided by operating activities | 387,912 | 301,042 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Capital expenditures | (135,866 | ) | (151,963 | ) | |||
| Purchases of intangible assets | (579 | ) | (354 | ) | |||
| Proceeds from the sale of property and equipment | — | 2,126 | |||||
| Net cash used in investing activities | (136,445 | ) | (150,191 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from Revolving Credit Facilities | 3,900 | — | |||||
| Repayment of Revolving Credit Facilities | (3,900 | ) | — | ||||
| Repayment of Term Loan | (2,250 | ) | (2,250 | ) | |||
| Debt issuance fees | (5,690 | ) | — | ||||
| Repurchase of common stock for retirement | (273,766 | ) | (200,072 | ) | |||
| Proceeds from exercise of stock options | 3,809 | 13,444 | |||||
| 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 | (4,471 | ) | (6,635 | ) | |||
| Dividends paid | (23,842 | ) | (20,543 | ) | |||
| Net cash used in financing activities | (303,391 | ) | (213,169 | ) | |||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (51,924 | ) | (62,318 | ) | |||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 347,920 | 337,145 | |||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 295,996 | $ | 274,827 | |||
| 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 | Thirty-Nine Weeks Ended | |||||||||||||||
| November 2, 2024 | October 28, 2023 | November 2, 2024 | October 28, 2023 | |||||||||||||
| Net income | $ | 65,763 | $ | 99,978 | $ | 284,816 | $ | 351,023 | ||||||||
| Interest expense, net | 9,149 | 10,930 | 27,706 | 33,473 | ||||||||||||
| Income tax expense | 22,968 | 29,969 | 88,113 | 100,876 | ||||||||||||
| Depreciation and amortization | 29,337 | 27,373 | 87,108 | 79,394 | ||||||||||||
| Equity compensation (a) | 6,296 | 6,245 | 20,389 | 26,128 | ||||||||||||
| Write off of deferred loan costs | — | — | 449 | — | ||||||||||||
| Adjusted EBITDA | $ | 133,513 | $ | 174,495 | $ | 508,581 | $ | 590,894 | ||||||||
| Less: Depreciation and amortization | (29,337 | ) | (27,373 | ) | (87,108 | ) | (79,394 | ) | ||||||||
| Adjusted EBIT | $ | 104,176 | $ | 147,122 | $ | 421,473 | $ | 511,500 | ||||||||
| (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 | Thirty-Nine Weeks Ended | |||||||||||||||
| November 2, 2024 | October 28, 2023 | November 2, 2024 | October 28, 2023 | |||||||||||||
| Net income | $ | 65,763 | $ | 99,978 | $ | 284,816 | $ | 351,023 | ||||||||
| Equity compensation (a) | 6,296 | 6,245 | 20,389 | 26,128 | ||||||||||||
| Write off of deferred loan costs | — | — | 449 | — | ||||||||||||
| Tax effects of these adjustments (b) | (1,593 | ) | (1,531 | ) | (4,926 | ) | (5,909 | ) | ||||||||
| Adjusted Net Income | $ | 70,466 | $ | 104,692 | $ | 300,728 | $ | 371,242 | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 0.94 | $ | 1.34 | $ | 3.95 | $ | 4.63 | ||||||||
| Diluted | $ | 0.92 | $ | 1.31 | $ | 3.86 | $ | 4.51 | ||||||||
| Adjusted earnings per common share: | ||||||||||||||||
| Basic | $ | 1.00 | $ | 1.41 | $ | 4.17 | $ | 4.90 | ||||||||
| Diluted | $ | 0.98 | $ | 1.38 | $ | 4.08 | $ | 4.77 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 70,319 | 74,461 | 72,047 | 75,809 | ||||||||||||
| Diluted | 71,774 | 76,057 | 73,744 | 77,893 | ||||||||||||
| (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 thirty-nine weeks ended November 2, 2024 and October 28, 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 | $ | 425.0 | ||||
| Equity compensation (a) | 27.0 | $ | 27.0 | |||||
| Tax effects of these adjustments (a) | (7.0 | ) | $ | (7.0 | ) | |||
| Adjusted Net Income | 420.0 | $ | 445.0 | |||||
| Earnings Per Common Share, Diluted | $ | 5.50 | $ | 5.80 | ||||
| Equity compensation (a) | 0.40 | 0.40 | ||||||
| Tax effects of these adjustments (a) | (0.10 | ) | (0.10 | ) | ||||
| Adjusted Earnings Per Common Share, Diluted | $ | 5.80 | $ | 6.10 | ||||
| * | 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 | Thirty-Nine Weeks Ended | ||||||||||||||
| November 2, 2024 | October 28, 2023 | November 2, 2024 | October 28, 2023 | ||||||||||||
| Net cash provided by operating activities | $ | 96,891 | $ | 57,476 | $ | 387,912 | $ | 301,042 | |||||||
| Net cash used in investing activities | (62,707 | ) | (42,345 | ) | (136,445 | ) | (150,191 | ) | |||||||
| Adjusted Free Cash Flow | $ | 34,184 | $ | 15,131 | $ | 251,467 | $ | 150,851 | |||||||
FAQ
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