Grocery Outlet Holding Corp. (NASDAQ: GO) ("Grocery Outlet" or the
"Company") today announced financial results for the third quarter
of fiscal 2021 ended October 2, 2021.
Highlights for Third Quarter Fiscal 2021
as compared to the Third Quarter Fiscal 2020:
- Net sales
increased by 0.6% to $768.9 million.
- Comparable store
sales decreased by 4.3% compared to a 9.1% increase in the same
period last year.
- The Company opened
7 new stores, ending the quarter with 407 stores in six
states.
- Net income
decreased 57.7% to $17.1 million, or $0.17 per diluted share.
- Adjusted EBITDA(1)
decreased 6.2% to $51.4 million.
- Adjusted net
income(1) decreased 15.3% to $23.4 million, or $0.24 per adjusted
diluted share(1).
Eric Lindberg, CEO of Grocery Outlet, stated,
"We are pleased with our third quarter financial results and
encouraged by our momentum in the fourth quarter. We continue to
leverage our highly flexible business model to offer unbeatable
value to our customers along with exceptional service from our
dedicated independent operators despite the challenging operating
environment. Looking forward, we remain excited about our long
runway for growth as we continue to expand our store base and test
new digital opportunities to broaden our customer reach. We are
also pleased to share that our board of directors has authorized a
$100 million share repurchase program reflecting confidence in our
long-term outlook and our commitment to returning value to
shareholders."
__________________________________
(1) Adjusted EBITDA, adjusted net income and
adjusted diluted earnings per share are non-GAAP financial
measures, which exclude the impact of certain special items.
Beginning with the fourth quarter of fiscal 2020, we updated our
definitions of our non-GAAP financial measures to simplify our
presentation and enhance comparability between periods. The
presentations for adjusted EBITDA, adjusted net income and adjusted
diluted earnings per share for third quarter of fiscal 2020 and 39
Weeks Ended September 26, 2020 have been recast to reflect these
changes. Please note that our non-GAAP financial measures should be
considered as a supplement to, and not as a substitute for, or
superior to, financial measures calculated in accordance with GAAP.
See the "Non-GAAP Financial Information" section of this release
for additional information about these items.
Highlights for the 39 Weeks Ended
October 2, 2021 as compared to the 39 Weeks Ended September 26,
2020:
- Net sales
decreased by 1.3% to $2.30 billion.
- Comparable store
sales decreased by 7.6% compared to a 14.3% increase in the same
period last year.
- Net income
decreased 32.5% to $55.7 million, or $0.56 per diluted share.
- Adjusted EBITDA(1)
decreased 12.0% to $151.1 million.
- Adjusted net
income(1) decreased 20.9% to $69.9 million, or $0.70 per adjusted
diluted share(1).
Balance Sheet and Cash
Flow:
- Cash and cash
equivalents totaled $156.0 million at the end of the third quarter
of fiscal 2021.
- Total debt was
$450.9 million at the end of the third quarter of fiscal 2021, net
of unamortized debt discounts and debt issuance costs.
- Net cash provided
by operating activities during the third quarter of fiscal 2021 was
$56.6 million.
- Capital
expenditures for the third quarter of fiscal 2021, excluding the
impact of tenant improvement allowances, were
$26.5 million.
Fourth Quarter 2021
Outlook:
- The Company
expects to open eight stores during the fourth quarter of fiscal
2021 for a total of 36 new stores opened in fiscal 2021. We closed
one store during the first quarter of fiscal year 2021.
- Comparable store
sales for the month of October were flat. Based on current trends,
the Company expects comparable store sales for the full fourth
quarter of fiscal 2021 to range between negative 3.5% to negative
2.5%.
- The Company will
report 13 weeks of operating results in the fourth quarter of
fiscal 2021 compared to 14 weeks in the fourth quarter of fiscal
2020. The extra fiscal week contributed sales of $53.3 million in
the prior year period.
Share Repurchase Program:
The Company's board of directors (the "Board")
has approved a share repurchase program (the "Share Repurchase
Program") pursuant to which the Company is authorized to repurchase
up to $100.0 million in shares of the Company's common stock. The
Share Repurchase Program is effective immediately, does not have an
expiration date and is expected to be funded using the Company's
cash on hand and cash from operations.
Charles Bracher, CFO of Grocery Outlet, stated,
"While we remain committed to our capital allocation priority of
investing in core organic growth initiatives including continued
store expansion, reinvesting in the existing fleet and building the
infrastructure to support future growth, this program will allow us
to more effectively utilize excess cash and further optimize our
capital structure."
Repurchases under the Share Repurchase Program
may be made, from time to time, in amounts and prices the Company
deems appropriate and may be made pursuant to a trading plan
intended to qualify under Rule 10b5-1 of the Securities Exchange
Act of 1934, as amended. Repurchases by the Company under the Share
Repurchase Program will be subject to general market and economic
conditions, applicable legal requirements and other considerations,
and the Share Repurchase Program may be suspended, modified or
discontinued by the Board at any time without prior notice at the
Company's discretion.
Conference Call Information:
A conference call to discuss the third quarter
fiscal 2021 financial results is scheduled for today,
November 9, 2021 at 4:30 p.m. Eastern Time. Investors and
analysts interested in participating in the call are invited to
dial 800-705-4155 approximately 10 minutes prior to the start of
the call, using conference ID #21998613. A live audio webcast of
the conference call will be available online at
https://investors.groceryoutlet.com.
A taped replay of the conference call will be
available within two hours of the conclusion of the call and can be
accessed both online and by dialing 844-512-2921. The pin number to
access the telephone replay is 21998613. The replay will be
available for approximately two weeks after the call.
Non-GAAP Financial
Information:
In addition to reporting financial results in
accordance with accounting principles generally accepted in the
United States ("GAAP"), the Company uses EBITDA, adjusted EBITDA,
adjusted net income and adjusted earnings per share measures of
performance to evaluate the effectiveness of its business
strategies, to make budgeting decisions and to compare its
performance against that of other peer companies using similar
measures. Management believes it is useful to investors and
analysts to evaluate these non-GAAP measures on the same basis as
management uses to evaluate our operating results.
Adjusted EBITDA is defined as net income before
interest expense, taxes, depreciation and amortization ("EBITDA")
and other adjustments noted in the "Reconciliation of GAAP Net
Income to Adjusted EBITDA" table below. Adjusted net income is
defined as net income before the adjustments noted in table
"Reconciliation of GAAP Net Income to Adjusted Net Income" below.
Basic Adjusted earnings per share is calculated using adjusted net
income and basic weighted average shares outstanding. Diluted
Adjusted earnings per share is calculated using adjusted net income
and diluted weighted average shares outstanding
EBITDA, Adjusted EBITDA, adjusted net income and
adjusted earnings per share are non-GAAP measures and may not be
comparable to similar measures reported by other companies. EBITDA,
Adjusted EBITDA, adjusted net income and adjusted earnings per
share have limitations as analytical tools, and you should not
consider them in isolation or as a substitute for analysis of our
results as reported under GAAP.
Beginning with the fourth quarter of fiscal
2020, we updated our definitions of adjusted EBITDA and adjusted
net income to simplify our presentation and enhance comparability
between periods. We no longer exclude new store pre-opening
expenses from our presentation of adjusted EBITDA and adjusted net
income. We also updated our definition of adjusted net income to
exclude the tax impact of options exercises and vesting of
restricted stock units. Lastly, debt extinguishment and
modification costs were reclassified to the other adjustments line
item within the presentation of both adjusted EBITDA and adjusted
net income. The presentations for adjusted EBITDA and adjusted net
income for the 13 and 39 weeks ended September 26, 2020 have
been recast to reflect these changes. Reconciliations between the
revised and previous definitions of adjusted EBITDA and adjusted
net income for each quarter of fiscal years 2020 and 2019 were
provided in our Form 8-K filed with the United States Securities
and Exchange Commission ("SEC") on March 2, 2021.
Forward-Looking Statements:
This news release includes forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 as contained in Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, which reflect management's current views
and estimates regarding the prospects of the industry and the
Company's outlook, prospects, plans, share repurchases, business,
results of operations, financial position, future financial
performance and business strategy. These forward-looking statements
generally can be identified by the use of forward-looking
terminology such as "may," "should," "expect," "intend," "will,"
"estimate," "anticipate," "believe," "predict," "potential" or
"continue" or the negatives of these terms or variations of them or
similar terminology. Although the Company believes that the
expectations reflected in these forward-looking statements are
reasonable, the Company cannot provide any assurance that these
expectations will prove to be correct.
The following factors are among those that may
cause actual results to differ materially from the forward-looking
statements: failure of suppliers to consistently supply us with
opportunistic products at attractive pricing; inability to
successfully identify trends and maintain a consistent level of
opportunistic products; failure to maintain or increase comparable
store sales; changes affecting the market prices of the products we
sell; failure to open, relocate or remodel stores on schedule;
risks associated with newly opened stores; inability to retain the
loyalty of our customers; costs and implementation difficulties
associated with marketing, advertising and promotions; failure to
maintain our reputation and the value of our brand, including
protecting our intellectual property; any significant disruption to
our distribution network, the operations of our distributions
centers and our timely receipt of inventory; inability to maintain
sufficient levels of cash flow from our operations; risks
associated with leasing substantial amounts of space; failure to
participate effectively or at all in the growing online retail
marketplace; unexpected costs and negative effects if we incur
losses not covered by our insurance program; inability to attract,
train and retain highly qualified employees; difficulties
associated with labor relations; loss of our key personnel or
inability to hire additional qualified personnel; risks associated
with economic conditions; competition in the retail food industry;
movement of consumer trends toward private labels and away from
name-brand products; major health epidemics, such as the outbreak
of COVID-19, its variants, and other outbreaks; natural disasters
and unusual weather conditions (whether or not caused by climate
change), power outages, pandemic outbreaks, terrorist acts, global
political events and other serious catastrophic events; failure to
maintain the security of information we hold relating to personal
information or payment card data of our customers, employees and
suppliers; material disruption to our information technology
systems; risks associated with products we and our independent
operators ("IOs") sell; risks associated with laws and regulations
generally applicable to retailers; legal proceedings from
customers, suppliers, employees, governments or competitors;
failure of our IOs to successfully manage their business; failure
of our IOs to repay notes outstanding to us; inability to attract
and retain qualified IOs; inability of our IOs to avoid excess
inventory shrink; any loss or changeover of an IO; legal
proceedings initiated against our IOs; legal challenges to the
IO/independent contractor business model; failure to maintain
positive relationships with our IOs; risks associated with actions
our IOs could take that could harm our business; our substantial
indebtedness could affect our ability to operate our business,
react to changes in the economy or industry or pay our debts and
meet our obligations; our ability to generate cash flow to service
our substantial debt obligations; impairment of goodwill and other
intangible assets; any significant decline in our operating profit
and taxable income; risks associated with tax matters; changes in
accounting standards and subjective assumptions, estimates and
judgments by management related to complex accounting matters;
failure to comply with requirements to design, implement and
maintain effective internal controls; and the other factors
discussed under "Risk Factors" in the Company's most recent annual
report on Form 10-K. Such risk factors may be updated from time to
time in the Company's periodic filings with the SEC. The Company's
periodic filings are accessible on the SEC's website at
www.sec.gov.
You should not rely upon forward-looking
statements as predictions of future events. Although the Company
believes that the expectations reflected in the forward-looking
statements are reasonable, the Company cannot guarantee that the
future results, levels of activity, performance and events and
circumstances reflected in the forward-looking statements will be
achieved or occur. Except as required by applicable law, the
Company undertakes no obligation to update publicly any
forward-looking statements for any reason after the date of this
news release to conform these statements to actual results or to
changes in our expectations.
About Grocery Outlet:
Based in Emeryville, California, Grocery Outlet
is a high-growth, extreme value retailer of quality, name-brand
consumables and fresh products sold through a network of
independently operated stores. Grocery Outlet has more than 410
stores in California, Washington, Oregon, Pennsylvania, Idaho and
Nevada.
GROCERY OUTLET HOLDING
CORP.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME(in thousands,
except per share data)(unaudited)
|
13 Weeks Ended |
|
39 Weeks Ended |
|
October 2,2021 |
|
September 26,2020 |
|
October 2,2021 |
|
September 26,2020 |
Net sales |
$ |
768,880 |
|
|
$ |
764,082 |
|
|
$ |
2,296,881 |
|
|
$ |
2,327,819 |
|
Cost of sales |
531,768 |
|
|
525,899 |
|
|
1,590,044 |
|
|
1,598,859 |
|
Gross profit |
237,112 |
|
|
238,183 |
|
|
706,837 |
|
|
728,960 |
|
Operating expenses: |
|
|
|
|
|
|
|
Selling, general and administrative |
191,572 |
|
|
189,880 |
|
|
573,125 |
|
|
574,813 |
|
Depreciation and amortization |
17,495 |
|
|
14,131 |
|
|
49,997 |
|
|
40,291 |
|
Share-based compensation |
1,902 |
|
|
3,857 |
|
|
10,051 |
|
|
34,309 |
|
Total operating expenses |
210,969 |
|
|
207,868 |
|
|
633,173 |
|
|
649,413 |
|
Income from operations |
26,143 |
|
|
30,315 |
|
|
73,664 |
|
|
79,547 |
|
Other expenses (income): |
|
|
|
|
|
|
|
Interest expense, net |
3,950 |
|
|
4,833 |
|
|
11,778 |
|
|
15,937 |
|
Gain on insurance recoveries |
— |
|
|
— |
|
|
(3,970 |
) |
|
— |
|
Debt extinguishment and modification costs |
— |
|
|
— |
|
|
— |
|
|
198 |
|
Total other expenses (income) |
3,950 |
|
|
4,833 |
|
|
7,808 |
|
|
16,135 |
|
Income before income
taxes |
22,193 |
|
|
25,482 |
|
|
65,856 |
|
|
63,412 |
|
Income tax expense
(benefit) |
5,054 |
|
|
(14,992 |
) |
|
10,185 |
|
|
(19,037 |
) |
Net income and comprehensive
income |
$ |
17,139 |
|
|
$ |
40,474 |
|
|
$ |
55,671 |
|
|
$ |
82,449 |
|
Basic earnings per share |
$ |
0.18 |
|
|
$ |
0.44 |
|
|
$ |
0.58 |
|
|
$ |
0.91 |
|
Diluted earnings per
share |
$ |
0.17 |
|
|
$ |
0.41 |
|
|
$ |
0.56 |
|
|
$ |
0.84 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
95,955 |
|
|
92,489 |
|
|
95,610 |
|
|
90,929 |
|
Diluted |
99,169 |
|
|
99,266 |
|
|
99,477 |
|
|
98,033 |
|
GROCERY OUTLET HOLDING
CORP.CONDENSED CONSOLIDATED BALANCE
SHEETS(in
thousands)(unaudited)
|
October 2,2021 |
|
January 2,2021 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
155,976 |
|
|
$ |
105,326 |
|
Independent operator receivables and current portion of independent
operator notes, net of allowance |
6,003 |
|
|
5,443 |
|
Other accounts receivable, net of allowance |
3,615 |
|
|
5,950 |
|
Merchandise inventories |
245,844 |
|
|
245,157 |
|
Prepaid expenses and other current assets |
18,967 |
|
|
20,081 |
|
Total current assets |
430,405 |
|
|
381,957 |
|
Independent operator notes,
net of allowance |
21,225 |
|
|
27,440 |
|
Property and equipment,
net |
484,718 |
|
|
433,652 |
|
Operating lease right-of-use
assets |
875,652 |
|
|
835,397 |
|
Intangible assets, net |
49,242 |
|
|
48,226 |
|
Goodwill |
747,943 |
|
|
747,943 |
|
Deferred income tax assets,
net |
— |
|
|
3,529 |
|
Other assets |
8,483 |
|
|
7,480 |
|
Total assets |
$ |
2,617,668 |
|
|
$ |
2,485,624 |
|
Liabilities and
Stockholders' Equity |
|
|
|
Current liabilities: |
|
|
|
Trade accounts payable |
$ |
122,055 |
|
|
$ |
114,278 |
|
Accrued expenses |
45,703 |
|
|
35,699 |
|
Accrued compensation |
6,745 |
|
|
26,447 |
|
Current lease liabilities |
46,013 |
|
|
48,675 |
|
Income and other taxes payable |
7,945 |
|
|
7,547 |
|
Total current liabilities |
228,461 |
|
|
232,646 |
|
Long-term debt, net |
450,860 |
|
|
449,233 |
|
Deferred income tax
liabilities, net |
5,556 |
|
|
— |
|
Long-term lease
liabilities |
938,760 |
|
|
881,438 |
|
Total liabilities |
1,623,637 |
|
|
1,563,317 |
|
Stockholders' equity: |
|
|
|
Voting common stock |
96 |
|
|
95 |
|
Additional paid-in capital |
803,099 |
|
|
787,047 |
|
Retained earnings |
190,836 |
|
|
135,165 |
|
Total stockholders' equity |
994,031 |
|
|
922,307 |
|
Total liabilities and stockholders' equity |
$ |
2,617,668 |
|
|
$ |
2,485,624 |
|
GROCERY OUTLET HOLDING
CORP.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (in thousands)
(unaudited)
|
39 Weeks Ended |
|
October 2,2021 |
|
September 26,2020 |
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
55,671 |
|
|
$ |
82,449 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation of property and equipment |
46,236 |
|
|
36,772 |
|
Amortization of intangible and other assets |
5,809 |
|
|
5,481 |
|
Amortization of debt issuance costs and debt discounts |
1,883 |
|
|
1,771 |
|
Gain on insurance recoveries |
(3,970 |
) |
|
— |
|
Debt extinguishment and modification costs |
— |
|
|
198 |
|
Share-based compensation |
10,051 |
|
|
34,309 |
|
Provision for accounts receivable |
3,529 |
|
|
321 |
|
Proceeds from insurance recoveries - business interruption and
inventory |
2,103 |
|
|
— |
|
Deferred income taxes |
9,085 |
|
|
(18,996 |
) |
Other |
950 |
|
|
1,421 |
|
Changes in operating assets and liabilities: |
|
|
|
Independent operator and other accounts receivable |
884 |
|
|
(3,809 |
) |
Merchandise inventories |
(687 |
) |
|
(33,357 |
) |
Prepaid expenses and other current assets |
1,114 |
|
|
(7,505 |
) |
Income and other taxes payable |
398 |
|
|
332 |
|
Trade accounts payable, accrued compensation and other accrued
expenses |
(4,526 |
) |
|
(15,545 |
) |
Changes in operating lease assets and liabilities, net |
13,235 |
|
|
15,419 |
|
Net cash provided by operating activities |
141,765 |
|
|
99,261 |
|
Cash flows from
investing activities: |
|
|
|
Advances to independent operators |
(7,614 |
) |
|
(8,715 |
) |
Repayments of advances from independent operators |
3,581 |
|
|
5,216 |
|
Purchases of property and equipment |
(89,575 |
) |
|
(85,847 |
) |
Proceeds from sales of assets |
24 |
|
|
265 |
|
Intangible assets and licenses |
(4,566 |
) |
|
(3,826 |
) |
Proceeds from insurance recoveries - property and equipment |
1,867 |
|
|
— |
|
Net cash used in investing activities |
(96,283 |
) |
|
(92,907 |
) |
Cash flows from
financing activities: |
|
|
|
Proceeds from exercise of stock options |
6,138 |
|
|
27,133 |
|
Proceeds from revolving credit facility loan |
— |
|
|
90,000 |
|
Principal payments on revolving credit facility loan |
— |
|
|
(90,000 |
) |
Payments made for net settlement of employee share-based
compensation awards |
— |
|
|
(483 |
) |
Principal payments on term loans |
— |
|
|
(188 |
) |
Principal payments on other borrowings |
(834 |
) |
|
(729 |
) |
Dividends paid |
(136 |
) |
|
(405 |
) |
Debt issuance costs paid |
— |
|
|
(701 |
) |
Net cash provided by financing activities |
5,168 |
|
|
24,627 |
|
Net increase in cash and cash
equivalents |
50,650 |
|
|
30,981 |
|
Cash and cash equivalents at
beginning of period |
105,326 |
|
|
28,101 |
|
Cash and cash equivalents at
end of period |
$ |
155,976 |
|
|
$ |
59,082 |
|
GROCERY OUTLET HOLDING
CORP.RECONCILIATION OF GAAP NET INCOME TO ADJUSTED
EBITDA(in thousands)
(unaudited)
|
13 Weeks Ended |
|
39 Weeks Ended |
|
October 2,2021 |
|
September 26,2020 |
|
October 2,2021 |
|
September 26,2020 |
Net income |
$ |
17,139 |
|
|
$ |
40,474 |
|
|
$ |
55,671 |
|
|
$ |
82,449 |
|
Interest expense, net |
3,950 |
|
|
4,833 |
|
|
11,778 |
|
|
15,937 |
|
Income tax expense
(benefit) |
5,054 |
|
|
(14,992 |
) |
|
10,185 |
|
|
(19,037 |
) |
Depreciation and amortization
expenses (1) |
18,234 |
|
|
14,796 |
|
|
52,045 |
|
|
42,253 |
|
EBITDA |
44,377 |
|
|
45,111 |
|
|
129,679 |
|
|
121,602 |
|
Share-based compensation
expenses (2) |
1,902 |
|
|
3,857 |
|
|
10,051 |
|
|
34,309 |
|
Non-cash rent (3) |
2,391 |
|
|
2,675 |
|
|
8,360 |
|
|
7,648 |
|
Asset impairment and gain or
loss on disposition (4) |
186 |
|
|
205 |
|
|
943 |
|
|
1,158 |
|
Provision for accounts
receivable reserves (5) |
1,240 |
|
|
372 |
|
|
3,529 |
|
|
321 |
|
Other (6) |
1,293 |
|
|
2,555 |
|
|
(1,500 |
) |
|
6,665 |
|
Adjusted EBITDA |
$ |
51,389 |
|
|
$ |
54,775 |
|
|
$ |
151,062 |
|
|
$ |
171,703 |
|
GROCERY OUTLET HOLDING
CORP.RECONCILIATION OF GAAP NET INCOME TO ADJUSTED
NET INCOME(in thousands, except per share
data) (unaudited)
|
13 Weeks Ended |
|
39 Weeks Ended |
|
October 2,2021 |
|
September 26,2020 |
|
October 2,2021 |
|
September 26,2020 |
Net income |
$ |
17,139 |
|
|
$ |
40,474 |
|
|
$ |
55,671 |
|
|
$ |
82,449 |
|
Share-based compensation
expenses (2) |
1,902 |
|
|
3,857 |
|
|
10,051 |
|
|
34,309 |
|
Non-cash rent (3) |
2,391 |
|
|
2,675 |
|
|
8,360 |
|
|
7,648 |
|
Asset impairment and gain or
loss on disposition (4) |
186 |
|
|
205 |
|
|
943 |
|
|
1,158 |
|
Provision for accounts
receivable reserves (5) |
1,240 |
|
|
372 |
|
|
3,529 |
|
|
321 |
|
Other (6) |
1,293 |
|
|
2,555 |
|
|
(1,500 |
) |
|
6,665 |
|
Amortization of purchase
accounting assets and deferred financing costs (7) |
2,943 |
|
|
2,943 |
|
|
8,829 |
|
|
8,823 |
|
Tax impact of stock option
exercises and vesting of restricted stock units (8) |
(867 |
) |
|
(21,880 |
) |
|
(7,525 |
) |
|
(36,458 |
) |
Tax effect of total
adjustments (9) |
(2,787 |
) |
|
(3,530 |
) |
|
(8,459 |
) |
|
(16,498 |
) |
Adjusted net income |
$ |
23,440 |
|
|
$ |
27,671 |
|
|
$ |
69,899 |
|
|
$ |
88,417 |
|
|
|
|
|
|
|
|
|
GAAP earnings per share |
|
|
|
|
|
|
|
Basic |
$ |
0.18 |
|
|
$ |
0.44 |
|
|
$ |
0.58 |
|
|
$ |
0.91 |
|
Diluted |
$ |
0.17 |
|
|
$ |
0.41 |
|
|
$ |
0.56 |
|
|
$ |
0.84 |
|
Adjusted earnings per
share |
|
|
|
|
|
|
|
Basic |
$ |
0.24 |
|
|
$ |
0.30 |
|
|
$ |
0.73 |
|
|
$ |
0.97 |
|
Diluted |
$ |
0.24 |
|
|
$ |
0.28 |
|
|
$ |
0.70 |
|
|
$ |
0.90 |
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
Basic |
95,955 |
|
|
92,489 |
|
|
95,610 |
|
|
90,929 |
|
Diluted |
99,169 |
|
|
99,266 |
|
|
99,477 |
|
|
98,033 |
|
__________________________
(1) Includes depreciation related to
our distribution centers which is included within the cost of sales
line item in our condensed consolidated statements of operations
and comprehensive income.
(2) Includes non-cash share-based
compensation expense and cash dividends paid on vested share-based
awards as a result of dividends declared in connection with
recapitalizations that occurred in fiscal 2018 and 2016.
(3) Consists of
the non-cash portion of rent expense, which represents
the difference between our straight-line rent expense recognized
under GAAP and cash rent payments. The adjustment can vary
depending on the average age of our lease portfolio, which has been
impacted by our significant store growth in recent years.
(4) Represents impairment charges
with respect to planned store closures and gains or losses on
dispositions of assets in connection with store transitions to new
IOs.
(5)
Represents non-cash changes in reserves related to
our IO notes and accounts receivable.
(6) Represents other non-recurring,
non-cash or non-operational items, such as gain on insurance
recoveries, technology upgrade implementation costs, costs related
to employer payroll taxes associated with equity awards,
personnel-related costs, store closing costs, legal expenses,
secondary equity offering transaction costs, debt extinguishment
and modification costs, strategic project costs and miscellaneous
costs.
(7) Represents the amortization of
debt issuance costs and incremental amortization of an
asset step-up resulting from purchase price accounting
related to our acquisition in 2014 by an investment fund affiliated
with Hellman & Friedman LLC, which included trademarks,
customer lists, and below-market leases.
(8) Represents excess tax benefits
related to stock option exercises and vesting of restricted stock
units that are recorded in earnings as discrete items in the
reporting period in which they occur.
(9) Represents the tax effect of the
total adjustments. We calculate the tax effect of the total
adjustments on a discrete basis excluding any non-recurring and
unusual tax items.
INVESTOR RELATIONS CONTACTS:
Arvind Bhatia
510-704-2816
abhatia@cfgo.com
Jean Fontana
646-277-1214
Jean.Fontana@icrinc.com
MEDIA CONTACT:
Layla Kasha
510-379-2176
lkasha@cfgo.com
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