Description
In no more than 5 typed pages, identify Hibbett’s Strengths and Weaknesses relative to Academy’s (in other words, how are the two firms different in 2022). Ratios like those suggested below are measures of performance. Differences in resources or capabilities are one of the possible CAUSES of that performance. Use your own observations as well as other sources to speculate concerning the causes of the firm’s relative performance. In the financial statement analysis, the first box is for the calculation (Example: 2/4) and the second box on the right is the result (Example: 0.5). You can take all the data in the financials document I attached. You don’t have to do all the boxes in the financial worksheet, as it is just a helpful resource to compare the two companies. You can choose any number of the ratios that are helping in the analysis itself. You can use your own thoughts together with the secondary sources.
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Hibbett, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and per share information)
ASSETS
January 29, 2022
Current Assets:
Cash and cash equivalents
Receivables, net
Inventories, net
Other current assets
Total current assets
$
17,054
13,607
221,219
25,134
277,014
January 30, 2021
$
209,290
11,905
202,038
16,567
439,800
Property and equipment, net
Operating right-of-use assets
Finance right-of-use assets, net
145,967
243,751
2,186
107,159
216,224
3,285
Tradename intangible asset
Deferred income taxes, net
Other assets, net
Total Assets
23,500
7,187
3,612
703,217
23,500
14,625
3,573
808,166
$
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current Liabilities:
Accounts payable
Operating lease obligations
$
85,647
68,521
$
$
107,215
58,613
Finance lease obligations
Accrued payroll expenses
Other accrued expenses
Total current liabilities
975
26,320
13,401
194,864
956
29,948
28,588
225,320
Operating lease obligations
Finance lease obligations
Unrecognized tax benefits
Other liabilities
Total liabilities
212,349
1,427
546
2,516
411,702
186,133
2,599
725
2,353
417,130
—
—
396
202,729
1,022,317
394
194,534
858,951
(933,927)
291,515
703,217
(662,843)
391,036
808,166
Stockholders’ Investment:
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued
Common stock, $0.01 par value, 80,000,000 shares authorized, 39,611,163 and
39,379,865 shares issued at January 29, 2022 and January 30, 2021, respectively
Paid-in capital
Retained earnings
Treasury stock, at cost, 26,317,947 and 22,901,101 shares repurchased at January 29,
2022 and January 30, 2021, respectively
Total stockholders’ investment
Total Liabilities and Stockholders’ Investment
1
$
$
Hibbett, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share information)
January 29,
2022
(52-weeks)
$
1,691,184
1,044,777
646,407
Fiscal Year Ended
January 30,
2021
(52-weeks)
$
1,419,657
915,169
504,488
February 1,
2020
(52-weeks)
$
1,184,234
800,783
383,451
$
382,414
—
35,827
228,166
43
(317)
(274)
227,892
53,579
174,313
$
356,856
19,661
29,583
98,388
127
(563)
(436)
97,952
23,686
74,266
$
318,011
—
29,323
36,117
1,225
(1,014)
211
36,328
8,984
27,344
Basic earnings per share
$
11.63
$
4.49
$
1.54
Diluted earnings per share
$
11.19
$
4.36
$
1.52
Net sales
Cost of goods sold
Gross margin
Store operating, selling and administrative
expenses
Goodwill impairment
Depreciation and amortization
Operating income
Interest income
Interest expense
Interest income (expense), net
Income before provision for income taxes
Provision for income taxes
Net income
Weighted average shares outstanding:
Basic
14,993
16,547
17,746
Diluted
15,582
17,037
17,957
2
ACADEMY SPORTS AND OUTDOORS, INC.
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands)
January 29, 2022
January 30, 2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
Accounts receivable – less allowance for doubtful accounts of $732 and $1,172, respectively
Merchandise inventories, net
Prepaid expenses and other current assets
Assets held for sale
Total current assets
485,998
19,718
1,171,808
36,460
1,763
1,715,747
PROPERTY AND EQUIPMENT, NET
RIGHT-OF-USE ASSETS
TRADE NAME
GOODWILL
OTHER NONCURRENT ASSETS
Total assets
345,836
1,079,546
577,215
861,920
4,676
4,584,940
$
LIABILITIES AND STOCKHOLDERS’ / PARTNERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
Accrued expenses and other current liabilities
Current lease liabilities
Current maturities of long-term debt
Total current liabilities
$
LONG-TERM DEBT, NET
LONG-TERM LEASE LIABILITIES
DEFERRED TAX LIABILITIES, NET
OTHER LONG-TERM LIABILITIES
Total liabilities
737,826
303,207
83,077
3,000
1,127,110
$
$
$
377,604
17,306
990,034
28,313
1,763
1,415,020
378,260
1,143,699
577,000
861,920
8,583
4,384,482
791,404
291,351
80,338
4,000
1,167,093
683,585
1,077,667
217,212
12,420
3,117,994
781,489
1,150,088
138,703
35,126
3,272,499
—
—
—
—
870
198,016
1,268,060
—
1,466,946
4,584,940
911
127,228
987,168
(3,324)
1,111,983
4,384,482
COMMITMENTS AND CONTINGENCIES (NOTE 14)
REDEEMABLE MEMBERSHIP UNITS
STOCKHOLDERS’ / PARTNERS’ 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; 87,079,394 and 91,114,475 issued
and outstanding as of January 29, 2022 and January 30, 2021, respectively
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Stockholders’ / partners’ equity
Total liabilities and stockholders’ / partners’ equity
$
3
$
ACADEMY SPORTS AND OUTDOORS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
Fiscal Year Ended
January 29, 2022
January 30, 2021
$
6,773,128 $
5,689,233
4,422,033
3,955,188
2,351,095
1,734,045
NET SALES
COST OF GOODS SOLD
GROSS MARGIN
$
February 1, 2020
4,829,897
3,398,743
1,431,154
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
OPERATING INCOME
1,443,148
907,947
1,313,647
420,398
1,251,733
179,421
INTEREST EXPENSE, NET
(GAIN) LOSS ON EARLY RETIREMENT OF DEBT, NET
OTHER (INCOME), NET
INCOME BEFORE INCOME TAXES
48,989
2,239
(2,821)
859,540
86,514
(3,582)
(1,654)
339,120
101,307
(42,265)
(2,481)
122,860
$
188,159
671,381 $
30,356
308,764
$
2,817
120,043
$
$
7.38 $
7.12 $
3.96
3.79
$
$
1.66
1.60
INCOME TAX EXPENSE
NET INCOME
EARNINGS PER COMMON SHARE:
BASIC (1)
DILUTED (1)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
BASIC (1)
DILUTED (1)
90,956
94,284
4
77,994
81,431
72,477
74,795
Assignment 2, Resource Analysis:
In no more than 5 typed pages, identify Hibbett’s Strengths and Weaknesses relative to Academy’s (in other words, how
are the two firms different in 2022). Ratios like those suggested below are measures of performance. Differences in
resources or capabilities are one of the possible CAUSES of that performance. Use your own observations as well as other
sources to speculate concerning the causes of the firm’s relative performance.
Ratio Calculation
Hibbett
Hibbett
Academy
Academy
NI/NS
COGS/NS
SG&A Exp/NS
Deprec. Exp/NS
Int. Exp./NS
ROE: NI/SE
Equity Multiplier TA/SE
ROA: NI/TA
TAT: NS/TA
CAT: NS/CA
Inv. Turn.: NS/Inv.
NS/Cash
ARTurn.: NS/AR
NS/prop, plant, & equip.
LTDebt/TA
Current: CA/CL
Acid Test : CA-Inv/CL
Co. owned / total stores
NS/store
NS/Employee
NS/sq. ft.
Stores
1096
Square Feet
Employees
11,000
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