Brian Wells Hibbett Pitch
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Transcript of Brian Wells Hibbett Pitch
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• 19% below 52 week high• Fair Value $54 - $61
2006 2007 2008 2009 2010 2011 2012 2013 2014
28.0
23.6
18.4
17.9 20
.9
21.6 24
.0
20.8
19.5
17.7
13.9
10.7
10.6 11
.9
12.1 13
.9
12 11.9
P/E EV/EBIT
WHAT IS THE COMPANY WORTH?
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2010 2011 2012 2013 2014$0
$10
$20
$30
$40
$50
$60
$70
$27
$51
$42
$65
$2
In Millions of Dollars
Cap Ex
2010 – $9.6M
2011 – $10.5M
2012 – $13M
2013 – $22M
2014 – $50.5M
FREE CASH FLOW
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RETURNS ON CAPITAL
2010 2011 2012 2013 20145%
10%
15%
20%
25%
30%
35%ROIC
HIBB DKS BGFV
2010 2011 2012 2013 20145%
10%
15%
20%
25%
30%
35%ROE
HIBB DKS BGFV
2005 2006 2007 2008 2009 2010 2011 2012 2013 201425%
27%
29%
31%
33%
35%
37%
Gross Margin
HIBB DKS BGFV
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COMPETETIVE OVERLAP
1 mile 3 miles 5 miles 10 miles0%
5%
10%
15%
20%
25%
Overlap with competitors by mile radiusSource: Hibbett Roadshow Presentation
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• FY 2013 – 900K shares at $49.9M– Avg Cost Basis $55/share
• FY 2014 – 400K shares at $20.1M– Avg Cost Basis $50/share
• All time – 12.4M shares at $343.4M– Avg Cost Basis $28/share
• FY 2015 – Planned 4%
SHARE REPURCHSES
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• Separate Chairman and CEO– Chairman started in 1965 as retail clerk
• Comparable pay to competitors• Glassdoor rating 3.2, CEO 66% approval• IT focus to improve efficiency• Return capital to shareholders• Conservative with debt
MANAGEMENT
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Wonderful Company
+ Fair Price
+ Long-Term Thinking
= Outsized Returns
– Andy Cross
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