City Gear Earned $3 Million in 2018 as It Becomes Part of Hibbett
The potential $113 million payout that HIBB could pay for City Gear, which includes $25 million in a contingent earn out, would be 7.8X the cash flow for last year of $14,554,000 on sales of $190,483,000 for the FY ended Feb. 4. Comparisons to the prior year were not disclosed. The deal also includes the assumption of $33.2 million in long-term debt and $17.3 million in a line of credit. The balance sheet includes $31.1 million in goodwill, indicating that there have been a number of acquisitions made in recent years. Gross margin was 37.68% which presumably included the $11,309,000 ... Log in to view full article.