Academy Sports & Outdoors (ASO) Q4 2021 earnings summary

Executive summary

• FY2020 delivered record net sales of $5.69B, net income of $308.8M and Adjusted EBITDA of $607.0M, supported by 16.1% comparable-sales growth.

• Pandemic-era demand and omnichannel execution strengthened results; e-commerce sales grew 138.3% and reached 10.4% of merchandise sales.

• Six consecutive quarters of positive comparable-sales and Adjusted EBITDA growth closed the year, with priorities centered on omnichannel, customer service, inventory planning and supply-chain efficiency.

Financial highlights

• Net sales rose 17.8% to $5.689B; comparable sales increased 16.1%.

• Gross margin increased to 30.5% from 29.6%; operating income rose to $420.4M from $179.4M.

• Net income was $308.8M vs. $120.0M; diluted EPS was $3.79 vs. $1.60.

• Adjusted EBITDA was $607.0M vs. $322.8M; Adjusted Free Cash Flow was $978.5M vs. $196.9M.

• Net cash from operations was $1.012B; capital expenditures were $41.3M.

Outlook and guidance

• FY2021 capital expenditures expected at $80M: ~50% for corporate, e-commerce and IT; ~40% for existing stores and distribution centers; ~10% for new stores and relocations.

• Expected cash sources for at least the next 12 months: existing cash, internally generated cash flow and available ABL borrowings; $718.8M of ABL capacity and $377.6M cash at FY-end.

• Plans call for 8–10 new stores annually starting in 2022; inventory replenishment is expected to use cash and affect FY2021 operating cash flow.

• FY2021 priorities include building omnichannel capabilities, improving store service, merchandise planning and allocation, targeted marketing, and supply-chain efficiency.