UNITED STATES | ||||||||||||||
SECURITIES AND EXCHANGE COMMISSION | ||||||||||||||
Washington, D.C. 20549 | ||||||||||||||
FORM 8-K | ||||||||||||||
CURRENT REPORT | ||||||||||||||
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||||||||||||||
Date of report (Date of earliest event reported): March 21, 2024 | ||||||||||||||
Academy Sports and Outdoors, Inc. | ||||||||||||||
(Exact name of registrant as specified in its charter) | ||||||||||||||
Delaware |
001-39589 |
85-1800912 |
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(State or other jurisdiction of |
(Commission |
(I.R.S. Employer |
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incorporation) |
File No.) |
Identification No.) |
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1800 North Mason Road | ||||||||||||||
Katy, Texas 77449 |
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(Address of principal executive offices, including Zip Code) |
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(281) 646-5200 |
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(Registrant’s telephone number, including area code) |
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Not Applicable |
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(Former name or former address, if changed since last report) | ||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||||||||||||||
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||||||||
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||||||||
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||||||||
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||||||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.01 par value per share | ASO | The Nasdaq Stock Market LLC | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||||||||||||||
Emerging Growth Company ☐ |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | ||||||||||||||
Exhibit No. | Description of Exhibit | |||||||
Academy Sports and Outdoors, Inc. Press Release, dated March 21, 2024. |
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104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
ACADEMY SPORTS AND OUTDOORS, INC. | ||
Date: March 21, 2024 | By: | /s/ | Rene G. Casares | |||||||||||
Name: | Rene G. Casares | |||||||||||||
Title: | Senior Vice President, General Counsel and Secretary | |||||||||||||
Fourth Quarter Operating Results ($ 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) | % |
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 | % |
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 | % | ||||||||||||
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 |
Fiscal Quarter Ended | |||||||||||||||||||||||
February 3, 2024 | Percentage of Sales (1) |
January 28, 2023 | Percentage of Sales (1) |
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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 |
Fiscal Year Ended | |||||||||||||||||||||||
February 3, 2024 | Percentage of Sales (1) |
January 28, 2023 | Percentage of Sales (1) |
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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 | |||||||||||||||||||||
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 $2,217 and $2,004, respectively | 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, $0.01 par value, authorized 50,000,000 shares; none issued and outstanding | — | — | ||||||||||||
Common stock, $0.01 par value, authorized 300,000,000 shares; 74,349,927 and 76,711,720 issued and outstanding as of February 3, 2024 and January 28, 2023, respectively | 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 |
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 |
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 $15.9 million net gain relative to a credit card fee litigation settlement which occurred in the fourth quarter of 2023. Net income for the fourth quarter and year ended January 28, 2023, included a $7.2 million gain from a business interruption insurance recovery and a $3.7 million gain from the sale of a tariff relief litigation claim, both of which occurred in the fourth quarter of 2022. All of these items are included in their respective years within Other (income), net on the Consolidated Statements of Income in our Annual Report. |
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(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. |
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 $15.9 million net gain relative to a credit card fee litigation settlement which occurred in the fourth quarter of 2023. Net income for the fourth quarter and year ended January 28, 2023, included a $7.2 million gain from a business interruption insurance recovery and a $3.7 million gain from the sale of a tariff relief litigation claim, both of which occurred in the fourth quarter of 2022. All of these items are included in their respective years within Other (income), net on the Consolidated Statements of Income in our Annual Report. |
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(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. |
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 |