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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(mark one)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ------- EXCHANGE ACT OF 1934.
For the quarterly period ended: August 2, 2003
--------------
- OR -
________ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the transaction period from _________ to ________
COMMISSION FILE NUMBER 000-20969
HIBBETT SPORTING GOODS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 63-1074067
--------- ----------
(State or other jurisdiction of (IRS Employee Identification No.)
incorporation or organization)
451 Industrial Lane, Birmingham, Alabama 35211
- ----------------------------------------- -----
(Address of principal executive offices) (Zip code)
(205) 942-4292
(Registrant's telephone number including area code)
NONE
(Former name, former address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No ______
-----
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Act). Yes X No______
-----
Indicate the number of shares outstanding of each of the issuer's common
stock, as of the latest practicable date: Shares of common stock, par value $.01
per share, outstanding as of September 10, 2003 were 15,386,364 shares.
HIBBETT SPORTING GOODS, INC.
INDEX
Page No.
--------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Unaudited Condensed Consolidated Balance Sheets
at August 2, 2003 and February 1, 2003 2
Unaudited Condensed Consolidated Statements of
Operations for the Thirteen and Twenty-Six Week
Periods Ended August 2, 2003 and August 3, 2002 3
Unaudited Condensed Consolidated Statements of
Cash Flows for the Twenty-Six Week Periods
Ended August 2, 2003 and August 3, 2002 4
Notes to Unaudited Condensed Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
Item 3. Quantitative and Qualitative Disclosures About Market Risk 14
Item 4. Controls and Procedures 14
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 14
Item 2. Changes in Securities and Use of Proceeds 14
Item 3. Defaults Upon Senior Securities 14
Item 4. Submission of Matters to Vote of Security-Holders 14
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 15
1
HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
-------- --------
Aug. 2, Feb. 1,
2003 2003
-------- --------
Assets
Current Assets:
Cash and cash equivalents .......................... $ 23,030 $ 12,016
Accounts receivable, net ........................... 3,470 3,371
Inventories ........................................ 93,755 86,246
Prepaid expenses and other ......................... 3,197 760
Income tax receivable .............................. 2,964 --
Deferred income taxes .............................. 768 798
-------- --------
Total current assets ............................ 127,184 103,191
-------- --------
Property and equipment, net ........................... 25,432 26,205
-------- --------
Noncurrent Assets:
Deferred income taxes .............................. 115 60
Other, net ......................................... 128 124
-------- --------
Total noncurrent assets ......................... 243 184
-------- --------
Total Assets ............................................ $152,859 $129,580
======== ========
Liabilities and Stockholders' Investment
Current Liabilities:
Accounts payable ................................... $ 38,125 $ 24,869
Accrued income taxes ............................... -- 1,338
Accrued expenses:
Payroll-related ................................. 2,789 3,520
Other ........................................... 3,030 2,503
-------- --------
Total current liabilities .......................... 43,944 32,230
-------- --------
Long-Term Debt ........................................ -- --
-------- --------
Stockholders' Investment:
Preferred stock, $.01 par value 1,000,000 shares
authorized, no shares outstanding ............... -- --
Common stock, $.01 par value, 50,000,000 shares
authorized, 15,368,897 shares issued and
outstanding at August 2, 2003 and 15,121,750
shares issued and outstanding at February 1, 2003 154 151
Paid-in capital .................................... 63,309 60,245
Retained earnings .................................. 45,452 36,954
-------- --------
Total stockholders' investment .................. 108,915 97,350
-------- --------
Total Liabilities and Stockholders' Investment .......... $152,859 $129,580
======== ========
See notes to unaudited condensed consolidated financial statements.
2
HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars In Thousands, Except Share and Per Share Amounts)
Thirteen Weeks Ended Twenty-Six Weeks Ended
------------------------ -----------------------
August 2, August 3, August 2, August 3,
2003 2002 2003 2002
---------- ---------- ---------- ----------
Net sales ................................... $ 71,731 $ 65,919 $ 151,324 $ 136,709
---------- ---------- ---------- ----------
Cost of goods sold,
including warehouse, distribution
and store occupancy costs ................. 49,744 45,816 104,379 94,609
---------- ---------- ---------- ----------
Gross profit ................................ 21,987 20,103 46,945 42,100
Store operating, selling, and
administrative expenses ................... 15,105 14,116 30,056 27,737
Depreciation and amortization ............... 1,796 1,710 3,550 3,381
---------- ---------- ---------- ----------
Operating income ......................... 5,086 4,277 13,339 10,982
Interest (income) expense, net .............. (20) 86 (43) 150
---------- ---------- ---------- ----------
Income before provision for income taxes . 5,106 4,191 13,382 10,832
Provision for income taxes .................. 1,864 1,530 4,884 3,954
---------- ---------- ---------- ----------
Net income ............................... $ 3,242 $ 2,661 $ 8,498 $ 6,878
========== ========== ========== ==========
Basic earnings per common share ............. $ 0.21 $ 0.18 $ 0.56 $ 0.46
========== ========== ========== ==========
Diluted earnings per common share ........... $ 0.21 $ 0.17 $ 0.55 $ 0.45
========== ========== ========== ==========
Weighted average shares outstanding:
Basic .................................. 15,320,192 15,072,735 15,249,529 15,009,600
========== ========== ========== ==========
Diluted ................................ 15,659,120 15,396,501 15,555,832 15,360,802
========== ========== ========== ==========
See notes to unaudited condensed consolidated financial statements.
3
HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars In Thousands)
Twenty-Six Weeks
---------------------
Aug. 2, Aug. 3,
2003 2002
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ..................................... $ 8,498 $ 6,878
-------- --------
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization ............... 3,550 3,381
Deferred income taxes ....................... 220 (26)
Refundable income tax ....................... (2,964) --
Loss on disposal of assets .................. 110 92
Change in operating assets and liabilities .. 2,278 (8,718)
-------- --------
Total adjustments ........................ 3,194 (5,271)
-------- --------
Net cash provided by operating activities. 11,692 1,607
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ........................... (2,877) (2,997)
Proceeds from sale of property and equipment ... 6 11
-------- --------
Net cash used in investing activities ... (2,871) (2,986)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving loan activity, net ................... -- 1,536
Proceeds from options exercised and purchase
of shares under employee stock purchase plan. 2,193 1,509
-------- --------
Net cash provided by financing activities. 2,193 3,045
-------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS ........ 11,014 1,666
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ... 12,016 1,972
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD ......... $ 23,030 $ 3,638
======== ========
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest ............................... $ 27 $ 112
-------- --------
Income taxes, net of refunds ........... $ 8,337 $ 6,777
-------- --------
See notes to unaudited condensed consolidated financial statements.
4
HIBBETT SPORTING GOODS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation & Accounting Policies
The accompanying unaudited condensed consolidated financial statements of
Hibbett Sporting Goods, Inc. and its wholly-owned subsidiaries (the "Company")
have been prepared in accordance with accounting principles generally accepted
in the United States of America for interim financial information and are
presented in accordance with the requirements of Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. These financial statements should be read in conjunction
with the consolidated financial statements and notes thereto for the fiscal year
ended February 1, 2003. In the opinion of management, the unaudited condensed
consolidated financial statements included herein contain all adjustments
(consisting only of normal recurring adjustments) considered necessary for a
fair presentation of the Company's financial position as of August 2, 2003 and
February 1, 2003 and the results of its operations and cash flows for the
periods presented.
The Company has experienced and expects to continue to experience seasonal
fluctuations in its net sales and operating income. Therefore, the results of
the interim periods presented herein are not necessarily indicative of the
results to be expected for any other interim period or the full year.
Interest
Interest income for the thirteen and twenty-six-week-periods ended August
2, 2003 was $33,090 and $69,546, respectively, shown net of interest expense of
$13,340 and $26,887, respectively. Interest expense for the thirteen and
twenty-six-week-periods ended August 3, 2002 was $86,480 and $152,105,
respectively, shown net of interest income of $234 and $1,762, respectively.
Advertising
Hibbett participates in various advertising and marketing cooperative
programs with its vendors, who, under these programs, reimburse Hibbett for
certain costs incurred. A receivable for cooperative advertising to be
reimbursed is recorded as a decrease to expense as the reimbursements are
earned. Hibbett's gross advertising costs for the thirteen weeks ended August 2,
2003 and August 3, 2002 were $723,314 and $544,769, respectively. The Company's
gross advertising costs for the twenty-six weeks ended August 2, 2003 and August
3, 2002 were $1,454,865 and $1,479,101, respectively.
Reportable Segments
Hibbett is an operator of full-line sporting good stores in small to
mid-sized markets predominately in the southeast, mid-Atlantic and midwest.
Given the economic characteristics of the store formats, the similar nature of
the products sold, the type of customers and methods of distribution, the
operations of Hibbett constitute only one reportable segment.
Customers
No customer accounted for more than 5% of the Company's sales during the
thirteen and twenty-six-week periods ended August 2, 2003 or August 3, 2002.
Vendors
For the thirteen-week-period ended August 2, 2003, Nike, our largest
vendor, represented approximately 38.5% of our purchases, New Balance
represented approximately 14.4% of our purchases and Reebok represented
approximately 10.0% of our purchases. For the twenty-six-week-period ended
August 2, 2003, Nike, our largest vendor, represented approximately 37.5% of our
purchases, New Balance represented approximately 11.8% of our purchases and
Reebok represented approximately 9.5% of our purchases.
Store Closing Costs
Hibbett considers individual store closings to be a normal part of
operations and expenses all related costs at the time of closing.
5
Revenue Recognition
All merchandise sales occur on-site in the Company's retail stores, and the
customers have the option of paying the full purchase price of the merchandise
upon sale or paying a down payment and placing the merchandise on layaway. The
customer may make further payments in installments, but the entire purchase
price for merchandise placed on layaway must be received by Hibbett within 30
days. Hibbett records the down payment and any installments as deferred revenue
until the customer pays the entire purchase price for the merchandise and takes
possession of such merchandise. Hibbett recognizes merchandise revenues at the
time the customer takes possession of the merchandise.
The cost of coupon sales incentives are recognized at the time the related
revenue is recognized by Hibbett. Proceeds received from the issuance of gift
cards are initially recorded as deferred revenue, and such proceeds are
subsequently recognized as revenue at the time the customer redeems such gift
cards and takes possession of the merchandise.
Stock-Based Compensation
Stock-based compensation cost is measured under the intrinsic value method
in accordance with Accounting Principles Bulletin No. 25. If the Company had
recorded compensation costs in accordance with SFAS No. 123 under the fair value
based method (using the Black-Scholes option pricing model), the Company's net
income and earnings per share would have been reduced to the pro forma amounts
indicated below:
Thirteen Week Period Twenty-Six Week Period
Ended Ended
---------------------- ----------------------
August 2, August 3, August 2, August 3,
2003 2002 2003 2002
---------- ---------- --------- ---------
Net income--as reported $ 3,242 $ 2,661 $ 8,497 $ 6,878
Net income--pro forma $ 3,000 $ 2,415 $ 8,013 $ 6,387
Diluted earnings per share--as reported .21 .17 .55 .45
Diluted earnings per share--pro forma .19 .16 .51 .41
The weighted average assumptions for determining compensation costs for the
thirteen-week-period ended August 2, 2003, under the fair value method include
(i) a risk-free interest rate based on zero-coupon governmental issues on each
grant date with the maturity equal to the expected term of the options (2.4% and
5.0% for fiscal 2004 and 2003, respectively), (ii) an expected stock volatility
of 56% and 58% for fiscal 2004 and 2003, respectively, and (iii) no expected
dividend yield. The weighted average assumptions for determining compensation
costs for the twenty-six-week-period week period ended August 2, 2003, under the
fair value method include (i) a risk-free interest rate based on zero-coupon
governmental issues on each grant date with the maturity equal to the expected
term of the options (2.7% and 5.1% for fiscal 2004 and 2003, respectively), (ii)
an expected stock volatility of 56% and 58% for fiscal 2004 and 2003,
respectively, and (iii) no expected dividend yield.
2. Properties
We currently lease all of our existing 390 store locations and expect that
our policy of leasing rather than owning will continue as we continue to expand.
Our leases typically provide for terms of five to seven years with options on
the part of Hibbett to extend. Most leases also contain a three-year early
termination option if projected sales levels are not met and a kickout clause if
co-tenancy provisions are violated. We believe that this lease strategy enhances
our flexibility to pursue various expansion opportunities resulting from
changing market conditions and to periodically re-evaluate store locations. Our
ability to open new stores is contingent upon locating satisfactory sites,
negotiating favorable leases and recruiting and training additional qualified
management personnel.
As current leases expire, we believe that we will be able either to obtain
lease renewals for present store locations or to obtain leases for equivalent or
better locations in the same general area. For the most part, we have not
experienced any significant difficulty in either renewing leases for existing
locations or securing leases for suitable locations for new stores. Based on our
belief that we maintain good relations with our landlords and that generally we
have been able to secure leases for suitable locations, we believe that our
lease strategy will not be detrimental to our business, financial condition, or
results of operations.
6
Our offices and our distribution center are leased under an operating lease
expiring in 2014. We own the Team division's warehousing and distribution center
located in Birmingham, Alabama.
3. Earnings Per Share
Basic earnings per share ("EPS") excludes dilution and is computed by
dividing net income by the weighted average number of common shares outstanding
for the period. Diluted EPS reflects the potential dilution that could occur if
securities or other contracts to issue common stock are exercised or converted
into common stock or resulted in the issuance of common stock that then shared
in earnings. Diluted EPS has been computed based on the weighted average number
of shares outstanding, including the effect of outstanding stock options, if
dilutive, in each respective period.
A reconciliation of the weighted average shares for basic and diluted EPS
is as follows:
Thirteen Week Periods Twenty-Six Week Periods
Ended Ended
------------------------ ------------------------
August 2, August 3, August 2, August 3,
2003 2002 2003 2002
---------- ---------- ---------- ----------
Weighted average shares outstanding
Basic 15,320,192 15,072,735 15,249,529 15,009,600
Dilutive effect of stock options 338,928 323,766 306,303 351,202
---------- ---------- ---------- ----------
Diluted 15,659,120 15,396,501 15,555,832 15,360,802
========== ========== ========== ==========
For the thirteen and twenty-six week periods ended August 2, 2003, there
were no anti-dilutive options. For the thirteen and twenty-six-week periods
ended August 3, 2002, 11,250 anti-dilutive options were excluded from the
computation.
4. Stockholders' Investment
The Company offers participation in stock option plans to certain employees
and individuals. Awards typically vest and become exercisable in incremental
installments over a period of five years after the date of grant and expire on
the tenth anniversary of the date of grant. For the twenty-six week period ended
August 2, 2003, 243,116 shares were issued upon exercise of options, resulting
in an increase in Stockholders' Investment of $2,131,000, which includes an
increase in Paid in Capital of $874,000 attributable to the tax benefit received
from the exercise of these options. For the twenty-six weeks ended August 2,
2003, 4,426 shares were purchased under the Employee Stock Purchase Plan
resulting in an increase in Stockholders' Investment of $62,000.
5. Stock Split
On June 9, 2003, the Company announced that its Board of Directors approved
a 3-for-2 stock split. The stock split was effected in the form of a 50% stock
dividend, and the new shares were distributed on July 15, 2003, to stockholders
of record on June 27, 2003. The effect of this split has been retroactively
reflected in the accompanying financial statements.
6. Contingencies
The Company is a party to various legal proceedings incidental to its
business. In the opinion of management, after consultation with legal counsel,
the ultimate liability, if any, with respect to those proceedings is not
presently expected to materially affect the financial position or results of
operations of the Company.
7
7. Recent Accounting Pronouncements
In May 2002, the FASB issued SFAS No. 145, "Rescission of FASB Statements
No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical
Corrections." SFAS No. 145 rescinds SFAS No. 4, "Reporting Gains and Losses from
Extinguishment of Debt"; SFAS No. 44, "Accounting for Intangible Assets of Motor
Carriers"; and SFAS No. 64, "Extinguishments of Debt Made to Satisfy Sinking
Fund Requirements." The rescissions eliminate the requirement to report gains
and losses from the extinguishment of debt as an extraordinary item, net of any
related income tax effect. This Statement also amends SFAS No. 13, "Accounting
for Leases," to eliminate an inconsistency between the required accounting for
sale-leaseback transactions and the required accounting for certain lease
modifications that have economic effects that are similar to sale-leaseback
transactions. This Statement also amends other existing authoritative
pronouncements to make technical corrections, clarify meanings, or describe
their applicability under changed conditions. The provisions of this Statement
became effective for fiscal years beginning after May 15, 2002, and we expect
the adoption of this standard to have no material impact on our financial
condition, results of operations or cash flows.
In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities." This Statement requires the
recognition of costs associated with exit or disposal activities when they are
incurred rather than at the date of a commitment to an exit or disposal plan.
The provisions of this Statement are to be applied prospectively to exit or
disposal activities initiated after December 31, 2002. We expect the adoption of
this statement to have no material impact on our financial condition, results of
operations or cash flows.
In December 2002, the FASB issued SFAS 148, which provides alternative
methods of transition for a voluntary change to the fair value-based method of
accounting for stock-based compensation. In addition, this Statement amends the
disclosure requirements of SFAS 123 to require prominent disclosures in both
annual and interim financial statements about the method used on reported
results. Finally, this Statement amends APB Opinion 28, "Interim Financial
Reporting," to require disclosure about those effects in interim financial
information. This Statement is effective for fiscal and interim periods ending
after December 15, 2002. We expect the adoption of this Statement to have no
material impact on our financial condition, results of operations or cash flows.
In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and Equity." This
Statement requires certain financial instruments that embody obligations of the
issuer and have characteristics of both liabilities and equity to be classified
as liabilities. SFAS No. 150 is effective for financial instruments entered into
or modified after May 31, 2003, and otherwise is effective at the beginning of
the first interim period beginning after June 15, 2003. We expect the adoption
of SFAS No. 150 to have no material impact on our financial position, results of
operations or cash flows.
8
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
Hibbett Sporting Goods, Inc. ("we" or "Hibbett" or the "Company") is a
rapidly-growing operator of full-line athletic sporting goods stores in small to
mid-sized markets predominantly in the southeast, mid-Atlantic and midwest. The
Company's stores offer a broad assortment of quality athletic equipment,
footwear and apparel at competitive prices with a high level of customer
service. Hibbett's merchandise assortment features a broad selection of brand
name merchandise emphasizing team and individual sports complemented by a
selection of localized apparel and accessories designed to appeal to a wide
range of customers within each market. The Company's management team believes
that its stores are among the primary retail distribution avenues for brand name
vendors that seek to penetrate our target markets.
As of August 2, 2003, we operated 368 Hibbett Sports stores, as well as 18
smaller-format Sports Additions athletic shoe stores and four larger-format
Sports & Co. superstores, in 20 states. The Company's primary retail format and
growth vehicle is Hibbett Sports, an approximately 5,000 square foot store
located in enclosed malls or in strip shopping centers which are generally the
center of commerce within the area and which are generally anchored by a
Wal-Mart store. We target markets with county populations that range from 30,000
to 100,000. By targeting smaller markets, we believe that we achieve significant
strategic advantages, including numerous expansion opportunities, comparatively
low operating costs and a more limited competitive environment than generally
faced in larger markets. In addition, we establish greater customer and vendor
recognition as the leading full-line sporting goods retailer in these local
communities. Although competitors in some markets may carry similar product
lines and national brands, we believe that the Hibbett Sports stores are
typically the primary, full-line sporting goods retailers in their markets due
to the extensive selection of traditional team and individual sports merchandise
offered and a high level of customer service.
Hibbett operates on a 52 or 53 week fiscal year ending on the Saturday
nearest to January 31 of each year. Hibbett has been incorporated under the laws
of the State of Delaware since October 6, 1996.
Store Locations
As of August 2, 2003, we operated 390 stores in 20 contiguous states. Of
these stores, 142 are located in malls and 248 are located in strip shopping
centers which are generally the center of commerce within the area and which are
generally anchored by a Wal-Mart store. The following table shows the locations
in which we operated stores as of August 2, 2003:
9
ALABAMA - 56 Conway (2) McDonough Campbellsville Greenville (2) Mt. Vernon Gallatin
Adamsville El Dorado Milledgeville (2) Corbin Grenada New Boston Greeneville
Athens Forrest City Moultrie Danville Hattiesburg Steubenville Jackson (3)
Auburn Harrison Newnan Elizabethtown (2) Jackson OKLAHOMA - 18 Kimball
Bay Minnette Hot Springs Rome Frankfort Laurel Ada Kingsport
Bessemer Jonesboro Snellville Georgetown Magee Altus Knoxville
Brewton Little Rock St. Marys Glasgow McComb Ardmore Lebanon
Birmingham (2) Magnolia Statesboro (2) Hazard Meridian Bartlesville Lenoir City
Calera Monticello Thomaston Henderson Natchez Chickasha Martin
Clanton Paragould Thomasville Hopkinsville New Albany Duncan Maryville
Cullman Pine Bluff Thomson Madisonville Ocean Springs Enid McMinnville
Daphne Rogers Tifton Mayfield Oxford McAlester Morristown
Decatur Russellville Toccoa Morehead Pascagoula Muskogee Murfreesboro (2)
Dothan Searcy Valdosta (3) Murray Pearl Miami Nashville
Enterprise Van Buren Vidalia Owensboro Picayune Okmulgee Paris
Eufaula FLORIDA - 15 Villa Rica Paducah Richland Owasso Springfield
Fairfield (2) Chiefland Warner Robbins Richmond Senatobia Ponca City Tullahoma
Florence (3) Clewiston Waycross Somerset Starkville Stillwater Union City
Ft. Payne Destin IOWA - 2 South Williamson Tupelo (2) Shawnee Winchester
Gadsden Ft. Walton Beach Debuque Winchester Vicksburg (2) Tahlequah TEXAS - 12
Gardendale Gainsville West Burlington LOUISIANA - 12 Waynesboro Woodward Cleburne
Guntersville Gulf Breeze ILLINOIS - 8 Abbeville N. CAROLINA - 34 Yukon College Station
Hartselle Lake City Carbondale Bastrop Albemarle S. CAROLINA - 21 Early
Hoover Lake Wales Centralia Crowley Asheboro Aiken Greenville
Huntsville (2) Leesburg Charleston Deridder Boone Anderson Longview
Jacksonville Live Oak Danville Hammond Clinton Camden Lufkin
Jasper Okeechobee Galesburg Monroe Dunn Chester Mt. Pleasant
Leeds Palatka Harrisburg Natchitoches Elizabeth City Columbia Palestine
Madison Panama City Mt. Vernon New Iberia Elkin Conway Paris
Montgomery (2) Santa Rosa Quincy Ruston Forest City Greenville Sherman
Muscle Shoals Sebring INDIANA - 12 Thibodaux Greenville Greenwood Victoria
Northport GEORGIA - 50 Bedford West Monroe Hendersonville (2) Hartsville Waco
Oneonta Albany Columbus Winnsboro Jacksonville Lancaster VIRGINIA - 12
Opelika Americus Corydon MISSOURI - 13 Kinston Laurens Bristol
Oxford Athens (2) Crawfordsville Cape Girardeau Lexington Lexington Cedar Bluff
Parkway City Bainbridge Greencastle Fulton Lincolnton Marion Christianburg
Pelham Brunswick Greenfield Hannibal Lumberton Murrells Inlet Covington
Pell City Canton Greensburg Jefferson City Monroe (2) Myrtle Beach Franklin
Phenix City Carrollton Jasper Kennett Morehead City Newberry Galax
Prattville Cedartown Madison Kirksville Morganton Orangeburg Martinsville
Roebuck Centerville Princeton Moberly New Bern Rockhill Norton
Scottsboro Columbus (3) Seymour Poplar Bluff Reidsville Seneca Petersburg
Selma Cordele Vincennes Rolla Roanoke Rapids Sumter South Boston
Talladega Cornelia KANSAS - 8 Sedalia Rockingham York Staunton
Tillmans Corner Covington Coffeyville Sikeston Salisbury TENNESSEE - 34 Wythville
Troy Dalton Dodge City St. Roberts Sanford Athens W. VIRGINIA -3
Trussville Douglasville Emporia Warrensburg Shallotte Chattanooga Beckley
Tuscaloosa (3) Ft. Olgethrope Hays MISSISSIPPI - 32 Shelby (2) Cleveland Martinsburg
Valley Gainesville Liberal Batesville Southern Pines Columbia Morgantown
ARKANSAS - 21 Griffin Manhattan Clarksdale Statesville Cookeville (2)
Arkadelphia Hinesville Pittsburg Clinton Washington Crossville
Batesville Hiram (2) Salina Columbia Whiteville Dickson
Benton Jessup KENTUCKY - 23 Columbus (2) Wilson Dyersburg (2)
Blytheville La Grange (2) Ashland Corinth OHIO - 4 Fayetteville
Cabot Macon Bowling Green Flowood Heath Franklin
10
Results of Operations
The following table sets forth consolidated statement of operations items
expressed as a percentage of net sales for the periods indicated:
Thirteen Week Twenty-Six Week
Period Ended Period Ended
----------------- -----------------
Aug. 2, Aug. 3, Aug. 2, Aug. 3,
2003 2002 2003 2002
------- ------- ------- -------
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of goods sold, including warehouse,
distribution and store occupancy costs 69.3 69.5 69.0 69.2
------- ------- ------- -------
Gross profit 30.7 30.5 31.0 30.8
Store operating, selling, and administrative
Expenses 21.1 21.4 19.9 20.3
Depreciation and amortization 2.5 2.6 2.3 2.5
------- ------- ------- -------
Operating income 7.1 6.5 8.8 8.0
Interest expense 0.0 0.1 0.0 0.1
------- ------- ------- -------
Income before provision for income taxes 7.1 6.4 8.8 7.9
Provision for income taxes 2.6 2.3 3.2 2.9
------- ------- ------- -------
Net income 4.5% 4.1% 5.6% 5.0%
======= ======= ======= =======
Thirteen Weeks Ended August 2, 2003 Compared to Thirteen Weeks Ended
August 2, 2002
Net sales. Net sales increased $5.8 million, or 8.8%, to $71.7 million for
the thirteen weeks ended August 2, 2003, from $65.9 million for the comparable
period in the prior year. This increase is attributed to the opening of
forty-one Hibbett Sports stores and two Sports Additions, net of store closings,
in the 52 week period ended August 2, 2003 and a 1.1% increase in comparable
store net sales for the thirteen week period ended August 2, 2003. The increase
in comparable store net sales was primarily due to increased sales in apparel.
Apparel sales, mainly college and pro-licensed products and active wear, were
driven by retro NBA, NFL and MLB jerseys, Under Armour and Nike Dri-Fit
performance wear, and ladies college apparel and cheerleading shorts. Footwear
sales, driven by basketball, New Balance running shoes, Converse, Nike Shox,
Kswiss athletic shoes and the retro-classic look, were flat compared to last
year's numbers. Equipment sales overall were slightly down from last year's
numbers. However, basketball, football and exercise equipment were positive. New
stores and stores not in the comparable store net sales calculation accounted
for $5.1 million of the increase in net sales, and increases in comparable store
net sales contributed $700,000. Comparable store net sales data for the period
reflect sales for our traditional format Hibbett Sports stores open throughout
the period and the corresponding period of the prior fiscal year. During the
thirteen weeks ended August 2, 2003, we opened fourteen Hibbett Sports stores
and two Sports Additions and closed two Hibbett Sports stores.
Gross profit. Cost of goods sold includes the cost of inventory, occupancy
costs for stores and occupancy and operating costs for the distribution center.
Gross profit was $22.0 million, or 30.7% of net sales, in the thirteen weeks
ended August 2, 2003, as compared to $20.1 million, or 30.5% of net sales, in
the same period of the prior fiscal year. A 38 basis point decrease as a percent
of net sales in net markdowns was somewhat offset by a 17 basis point increase
as a percentage of net sales in occupancy related costs and a 2 basis point
increase as a percentage of net sales in freight costs due to fuel surcharges
and rate increases.
Store operating, selling and administrative expenses. Store operating,
selling and administrative expenses were $15.1 million, or 21.1% of net sales,
for the thirteen weeks ended August 2, 2003, as compared to $14.1 million, or
21.4% of net sales, for the comparable period a year ago. The decrease in store
operating, selling and administrative expenses as a percentage of net sales in
the thirteen weeks ended August 2, 2003, is primarily attributed to the
leveraging of salaries and benefits, and a reduction in advertising expense,
inventory counting expense and credit card fees. Salaries and benefits costs
decreased as a percentage of net sales by 9 basis points this
thirteen-week-period compared to the same period last year due to a delay in
11
adding additional staff. Advertising costs decreased as a percentage of net
sales by 9 basis points this period compared to the same thirteen-week-period
last year due to less promotional advertising. Inventory counting expenses
decreased as a percentage of net sales by 11 basis points this
thirteen-week-period compared with the same period last year due to less
inventories taken this year compared to having to take an extra inventory in
every store last year due to the implementation of a new warehouse system.
Credit card fees decreased as a percentage of net sales by 6 basis points this
period compared to the same thirteen-week-period last year due to the increased
use of debit cards.
Depreciation and amortization. Depreciation and amortization as a
percentage of net sales decreased to 2.5% of net sales for the
thirteen-week-period ended August 2, 2003, compared with 2.6% of net sales for
same thirteen-week- period last year. The reduction in depreciation and
amortization expense as a percentage of net sales is due to an increase in sales
and fewer capital expenditure purchases this quarter compared to the same
thirteen-week-period last year as a result of an increase in landlord
contributions.
Interest (income) expense. Net interest income for the thirteen weeks ended
August 2, 2003, was $20,000 compared to $86,000 of interest expense in the prior
year period. The decrease is attributable to lower borrowing levels due to a
reduction in working capital needs.
Twenty-Six Weeks Ended August 2, 2003 Compared to Twenty-Six Weeks Ended
August 3, 2002
Net sales. Net sales increased $14.6 million, or 10.7%, to $151.3 million
for the twenty-six weeks ended August 2, 2003, from $136.7 million for the
comparable period in the prior year. This increase is attributed to the opening
of forty-one Hibbett Sports stores and two Sports Additions, net of store
closings, in the 52 week period ended August 2, 2003 and a 2.9% increase in
comparable store net sales for the twenty-six-week-period ended August 2, 2003.
The increase in comparable store net sales was primarily due to increased sales
in footwear and apparel. Apparel sales, mainly college and pro-licensed products
and active wear, were driven by retro NBA and MLB jerseys, Under Armour and Nike
Dri-Fit performance wear, and ladies college apparel and cheerleading shorts.
Basketball, New Balance running shoes, Nike Shox, Kswiss athletic shoes and the
retro-classic look drove footwear sales. Equipment sales were down from last
year's numbers, but there were positive trends in basketball, football and
exercise equipment in the second quarter. New stores and stores not in the
comparable store net sales calculation accounted for $10.9 million of the
increase in net sales, and increases in comparable store net sales contributed
$3.7 million. Comparable store net sales data for the period reflect sales for
our traditional format Hibbett Sports stores open throughout the period and the
corresponding period of the prior fiscal year. During the twenty-six weeks ended
August 2, 2003, we opened twenty-two Hibbett Sports stores and two Sports
Additions and closed five Hibbett Sports stores.
Gross profit. Cost of goods sold includes the cost of inventory, occupancy
costs for stores and occupancy and operating costs for the distribution center.
Gross profit was $46.9 million, or 31.0% of net sales, in the twenty-six weeks
ended August 2, 2003, as compared to $42.1 million, or 30.8% of net sales, in
the same period of the prior fiscal year. A 49 basis point decrease as a percent
of net sales in retail reductions (net markdowns and inventory shortages) was
somewhat offset by a 9 basis point increase as a percentage of net sales in
occupancy related costs and an 11 basis point increase as a percentage of net
sales in freight costs due to fuel surcharges and rate increases.
Store operating, selling and administrative expenses. Store operating,
selling and administrative expenses were $30.1 million, or 19.9% of net sales,
for the twenty-six weeks ended August 2, 2003, as compared to $27.7 million, or
20.3% of net sales, for the comparable period a year ago. The decrease in store
operating, selling and administrative expenses as a percentage of net sales in
the twenty-six weeks ended August 2, 2003, is primarily attributed to a
reduction in advertising expense, inventory counting expense and credit card
fees. Advertising costs decreased as a percentage of net sales by 24 basis
points this period compared to the same twenty-six-week-period last year due to
less promotional advertising. Inventory counting expenses decreased as a
percentage of net sales by 14 basis points this twenty-six-week- period compared
with the same period last year due to less inventories taken this year compared
to having to take an extra inventory in every store last year in June due to the
implementation of a new warehouse system. Credit card fees decreased as a
percentage of net sales by 7 basis points this period compared to the same
twenty-six-week-period last year due to the increased use of debit cards.
Depreciation and amortization. Depreciation and amortization as a
percentage of net sales decreased to 2.4% of net sales for the
twenty-six-week-period ended August 2, 2003, compared with 2.5% of net sales for
same twenty-six-week-period last year. The reduction in depreciation and
amortization expense as a percentage of net sales is due to an increase in sales
and fewer capital expenditure purchases this year compared to the same
twenty-six--week-period last year as a result of an increase in landlord
contributions.
Interest (income) expense. Net interest income for the twenty-six weeks
ended August 2, 2003, was $43,000 compared to $150,000 of interest expense in
the prior year period. The decrease is attributable to lower borrowing levels
due to a reduction in working capital needs.
12
Liquidity and Capital Resources
Our capital requirements relate primarily to new store openings and working
capital requirements. Our working capital needs are somewhat seasonal in nature
and typically reach their peak near the end of the third and the beginning of
the fourth quarter of our fiscal year. Historically, we have funded our cash
requirements primarily through cash flows from operations and borrowings under
our revolving credit facilities.
Net cash provided by (used in) operating activities has historically been
driven by net income levels combined with fluctuations in inventory and accounts
payable balances. Inventory levels decreased during the twenty-six-week-period
ended August 2, 2003 compared to inventory levels for same
twenty-six-week-period last due to enhanced merchandise flow through the
distribution center. Accordingly, net cash provided by operating activities was
$11.7 million for the twenty-six-week-period ended August 2, 2003 compared with
net cash provided by operating activities of $1.6 million for the
twenty-six-week-period ended August 3, 2002.
With respect to cash flows used in investing activities, capital
expenditures were $2.9 million in the twenty-six- week-period ended August 2,
2003 compared with $3.0 million for the prior year period. Capital expenditures
in the twenty-six weeks ended August 2, 2003 were primarily related to the
opening of twenty-four new stores, the refurbishing of existing stores and
various corporate additions, including automobiles and warehouse equipment.
Net cash provided by financing activities was $2.2 million in the
twenty-six-week-period ended August 2, 2003 compared with $3.0 million provided
by financing activities in the prior year period. Financing activities primarily
relate to net borrowings under our credit facilities and proceeds from stock
options exercised.
The Company estimates capital expenditures in fiscal 2004 to be
approximately $9.4 million, which includes resources budgeted to (i) fund the
opening of approximately 60 to 65 Hibbett Sports stores (ii) remodel selected
existing stores and (iii) fund corporate headquarters and distribution center
related capital expenditures.
Hibbett maintains an unsecured revolving credit facility that allows
borrowings up to $35 million and which is subject to annual renewal each
November. We also maintain an unsecured working capital line of credit for $7.0
million, which is subject to annual renewal each November. As of August 2, 2003,
the Company had no debt outstanding under these facilities, compared with $3.0
million outstanding under the revolving credit facility and $2.4 million
outstanding under the working capital facility, on August 3, 2002. Based on our
current operating and store opening plans, management believes that we can fund
our cash needs for the foreseeable future through borrowings under the revolving
credit facility, the working capital facility and cash generated from
operations.
Quarterly Fluctuations
The Company has historically experienced and expects to continue to
experience seasonal fluctuations in its net sales and operating income. The
Company's net sales and operating income are typically higher in the fourth
quarter due to sales increases during the holiday selling season. However, the
seasonal fluctuations are reduced to some extent by the strong product demand in
the spring, summer and back-to-school sales periods. The Company's quarterly
results of operations may also fluctuate significantly as a result of a variety
of factors, including the timing of new store openings, the amount and timing of
net sales contributed by new stores, the level of pre-opening expenses
associated with new stores, the relative proportion of new stores to mature
stores, merchandise mix, the relative proportion of stores represented by each
of the Company's three store concepts and demand for apparel and accessories
driven by local interest in sporting events.
Special Note Regarding Forward Looking Statements
The statements contained in this report that are not purely historical or
which might be considered an opinion or projection concerning the Company or its
business, whether express or implied, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements may include statements regarding the Company's expectations,
intentions, plans or strategies regarding the future. All forward-looking
statements included in this document are based upon information available to the
Company on the date hereof, and the Company assumes no obligation to update any
such forward-looking statements. It is important to note that the Company's
actual results could differ materially from those described or implied in such
13
forward-looking statements because of, among other factors, the ability of the
Company to execute its expansion plans, a shift in demand for the merchandise
offered by the Company, the Company's ability to obtain brand name merchandise
at competitive prices, the effect of regional or national economic conditions,
the effect of competitive pressures from other retailers and the ability to
attract and retain qualified personnel. In addition, the reader should consider
the risk factors described from time to time in the Company's other documents
and reports, including the factors described under "Risk Factors" in the
Company's Form 10-K/A dated May 1, 2003.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company's financial condition, results of operations and cash flows are
subject to market risk from interest rate fluctuations on its revolving credit
facility and working capital facility, each of which bears interest at rates
that vary with LIBOR, prime or quoted cost of funds rates. The average amount of
borrowings outstanding under these agreements during the thirteen-week-period
ended August 2, 2003 was $25,034 and the maximum amount outstanding was
$1,103,675. The average amount of borrowings outstanding under these agreements
during the twenty-six-week-period ended August 2, 2003 was $36,993 and the
maximum amount outstanding was $1,980,553. The total amount of interest paid
during the twenty-six week period ended August 2, 2003 was less than $500. A 10%
increase or decrease in market interest rates would not have a material impact
on the Company's financial condition, results of operations or cash flows.
CONTROLS AND PROCEDURES
Hibbett maintains disclosure controls and procedures that are designed to
ensure that information required to be disclosed in the Company's Exchange Act
reports is recorded, processed, summarized and reported within the time periods
specified in the rules and forms of the Securities and Exchange Commission, and
that such information is accumulated and communicated to the Company's
management, including its Chief Executive Office and Chief Financial Officer, as
appropriate, to allow timely decisions regarding required disclosure. In
designing and evaluating the disclosure controls and procedures, management
recognized that any controls and procedures, no matter how well designed and
operated, can provide only reasonable assurance of achieving the desired control
objectives, and management necessarily was required to apply its judgment in
evaluating the cost-benefit relationship of possible controls and procedures.
As required by SEC Rule 13a-15(b), Hibbett carried out an evaluation, under
the supervision and with the participation of Hibbett's management, including
the Chief Executive Officer and the Chief Financial Officer, of the
effectiveness of the design and operation of Hibbett's disclosure controls and
procedures as of the end of the fiscal quarter covered by this report. Based on
the foregoing, Hibbett's Chief Executive Officer and Chief Financial Officer
concluded that Hibbett's disclosure controls and procedures were effective at
the reasonable assurance level.
There have been no changes in Hibbett's internal controls over financial
reporting during the most recent fiscal quarter that has materially affected, or
is reasonably likely to materially affect, Hibbett's internal control over
financial reporting.
PART II OTHER INFORMATION
ITEM 1: Legal Proceedings
The Company is a party to various legal proceedings incidental to its
business. In the opinion of management, after consultation with legal counsel,
the ultimate liability, if any, with respect to those proceedings is not
presently expected to materially affect the financial position or results of
operations of the Company.
ITEM 2: Changes in Securities and Use of Proceeds
None
ITEM 3: Defaults Upon Senior Securities
None
ITEM 4: Submission of Matters to Vote of Security-Holders
None
ITEM 5: Other Information
None
14
ITEM 6: Exhibits and Reports on Form 8-K
(A) Exhibits
Exhibit No.
31.1 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2 Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.1 Section 1350 Certification of Chief Executive Officer
32.2 Section 1350 Certification of Chief Financial Officer
(B) Reports on Form 8-K
The Company filed with the Commission a Current Report on Form 8-K dated
August 19, 2003, to report, under Item 12, a copy of its press release
announcing its financial results for the second fiscal quarter ended August 2,
2003.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned duly authorized.
HIBBETT SPORTING GOODS, INC.
Date: September 12, 2003 By: /s/ Gary A. Smith
------------------ ----------------------
Gary A. Smith
Vice President & Chief Financial Officer
15
Exhibit 31.1
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
I, Michael J. Newsome, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Hibbett Sporting
Goods, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of
a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report.
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this report.
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e)and 15d-15(e))for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to
us by others within those entities, particularly during the period in
which this report is being prepared;
(b) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end
of the period covered by this report based on such evaluation; and
(c) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's
most recent fiscal quarter (the registrant's fourth fiscal quarter in
the case of an annual report) that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed, based on
our most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of the registrant's board
of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to
record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
control over financial reporting.
Date: September 12, 2003
/s/ Michael J. Newsome
------------------------
Michael J. Newsome
Chief Executive Officer
16
Exhibit 31.2
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
I, Gary A. Smith, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Hibbett Sporting
Goods, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of
a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report.
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this report.
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e)and 15d-15(e))for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to
us by others within those entities, particularly during the period in
which this report is being prepared;
(b) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end
of the period covered by this report based on such evaluation; and
(c) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's
most recent fiscal quarter (the registrant's fourth fiscal quarter in
the case of an annual report) that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed, based on
our most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of the registrant's board
of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to
record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
control over financial reporting.
Date: September 12, 2003
/s/ Gary A. Smith
------------------------
Gary A. Smith
Chief Financial Officer
17
Exhibit 32.1
Section 1350 Certification of Chief Executive Officer
Pursuant to 18 U.S.C. ss. 1350, as created by Section 906 of the
Sarbanes-Oxley Act of 2002, the undersigned officer of Hibbett Sporting Goods,
Inc. (the "Company") hereby certifies, to the best of such officer's knowledge,
that:
(i) the accompanying Quarterly Report on Form 10-Q of the Company for
the period ended August 2, 2003 (the "Report") fully complies with the
requirements of Section 13(a) or Section 15(d), as applicable, of the
Securities Exchange Act of 1934, as amended; and
(ii) the information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations
of the Company.
Dated: September 12, 2003 /s/ Michael J. Newsome
------------------ ------------------------
Michael J. Newsome
Chief Executive Officer
18
Exhibit 32.2
Section 1350 Certification of Chief Executive Officer
Pursuant to 18 U.S.C. ss. 1350, as created by Section 906 of the
Sarbanes-Oxley Act of 2002, the undersigned officer of Hibbett Sporting Goods,
Inc. (the "Company") hereby certifies, to the best of such officer's knowledge,
that:
(i) the accompanying Quarterly Report on Form 10-Q of the Company for
the period ended August 2, 2003 (the "Report") fully complies with the
requirements of Section 13(a) or Section 15(d), as applicable, of the
Securities Exchange Act of 1934, as amended; and
(ii) the information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations
of the Company.
Dated: September 12, 2003 /s/ Gary A. Smith
------------------ ------------------------
Gary A. Smith
Chief Financial Officer
19