COLUMBUS, Ohio, March 5, 2021 /PRNewswire/ -- Big Lots, Inc.
(NYSE: BIG) today reported net income of $98.0 million, or $2.59 per diluted share, for the fourth quarter
of fiscal 2020 ended January 30,
2021, which compares to the company's guidance, as provided
on January 13, 2021, of $2.40 to $2.50 per
diluted share. Net income for the fourth quarter of fiscal
2019 was $93.8 million, or
$2.39 per diluted share. Net sales
for the fourth quarter of fiscal 2020 totaled $1,738 million, an 8.1% increase compared to
$1,607 million for the same period
last year, with the growth resulting from a 7.9% increase in
comparable sales, and sales growth from new and relocated non-comp
stores, offset by a slightly lower average store count
year-over-year.
Remarking on today's announcement, Bruce
Thorn, President and CEO of Big Lots stated, "I am pleased
to report that our fiscal fourth quarter ended strongly, with a
record fourth quarter comparable sales increase despite softer than
planned traffic in December and inventory and supply chain
challenges during the quarter. We also delivered another stellar
quarter of growth across our ecommerce and omnichannel platforms
with sales increasing over 130%. Throughout the quarter, our
strategic investments and the nimbleness of our teams allowed us to
serve our customers better than ever, as well as adjust to market
dynamics to deliver excellent top-line and bottom-line
results."
Mr. Thorn further remarked, "Fiscal 2020 was the strongest year
in the history of Big Lots, occurring against the backdrop of an
unprecedented year of uncertainty for our nation and industry. The
results were the culmination of the tremendous efforts of our
associates in our distribution centers, our stores, and our
corporate headquarters, combined with the ongoing and successful
rollout of our Operation North Star strategies. Beyond our 2020
results, we believe these strategies position us for ongoing
success, supported by our steadfast focus on customer service, our
assortment of everyday essentials and stay-at-home products, and
our growing customer file. During 2021, we will continue the
roll-out of our Lot and Queue Line programs to the balance of our
stores, expand our offerings under the Broyhill brand, further
scale our greatly enhanced ecommerce capabilities, and accelerate
new store openings. With the dedication and commitment of our
37,000 associates to drive these initiatives, we're confident that
2021 will be another successful year in the evolution of Big
Lots."
|
Earnings per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2020
|
|
Q4 2019
|
|
FY 2020
|
|
FY 2019
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted
share
|
|
$2.59
|
|
$2.39
|
|
$16.11
|
|
$6.16
|
|
Gain on sale of
distribution centers (1)
|
|
-
|
|
-
|
|
($8.75)
|
|
($3.47)
|
|
Impact of the costs
associated with the implementation
|
|
-
|
|
-
|
|
-
|
|
$0.83
|
|
of the strategic
transformation (1)
|
|
|
|
|
|
|
|
|
|
Impact of legal
settlement loss contingencies (1)
|
|
-
|
|
-
|
|
-
|
|
$0.14
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted
share - adjusted basis
|
|
$2.59
|
|
$2.39
|
|
$7.35
|
|
$3.67
|
|
|
(1) Non-GAAP
detailed reconciliation provided in our statements
below.
|
FISCAL 2020
For fiscal 2020, net income totaled
$629.2 million, or $16.11 per diluted share. Excluding non-recurring
items detailed in this release, adjusted net income for the full
year period ended January 30, 2021,
totaled $287.3 million, or
$7.35 per diluted share (non-GAAP),
compared to adjusted net income of $144.4
million, or $3.67 per diluted
share (non-GAAP), for fiscal 2019.
Net sales for fiscal 2020 totaled $6,199
million, a 16.5% increase compared to $5,323 million last year, with the increase
resulting from a comparable sales increase of 16.1% and sales
growth in high volume new and relocated non-comp stores.
Inventory and Cash Management
Inventory ended the fourth quarter of fiscal 2020 at $940 million compared to $921 million for the same period last year. The
2% increase was driven by in-transit inventory, which continues to
be substantially higher year-over-year as the company has increased
its order volume to restore on-hand merchandise and accommodate
longer lead times on imported merchandise. Excluding in-transit,
on-hand inventory was down approximately 5% to the prior year.
The company ended the fourth quarter of fiscal 2020 with
$560 million of Cash and Cash
Equivalents and $36 million of
Long-term Debt, compared to $53
million of Cash and Cash Equivalents and $279 million of Long-term Debt as of the end of
the fourth quarter of fiscal 2019.
Share Repurchase Authorization
As previously announced, on August 27,
2020 the company's Board of Directors authorized the
repurchase of up to $500 million of
the company's outstanding common shares. The authorization may be
utilized to repurchase shares in the open market and/or in
privately negotiated transactions at the company's discretion,
subject to market conditions and other factors. In the fourth
quarter of fiscal 2020, the company invested $73 million to repurchase 1.6 million shares at
an average price of $46.38. Through
the end of the fourth quarter of fiscal 2020, the company had
utilized $173 million under this
authorization to repurchase 3.8 million shares, at an average price
of $46.05.
Dividend
As announced in a separate press release, on March 4, 2021, the Board of Directors declared a
quarterly cash dividend of $0.30
per common share. This dividend payment of approximately
$11 million will be payable on
April 2, 2021, to shareholders of
record as of the close of business on March
19, 2021.
Company Outlook
The company expects that its financial performance in 2021 will be
significantly affected by the ongoing Covid-19 pandemic, including
the impact of continued evolution in consumer shopping behaviors,
and potential impact of further government stimulus. As such, the
company does not have the visibility to provide full year guidance
for fiscal 2021 at this time. Based on currently available
information, for the first quarter of fiscal 2021 the company
expects to achieve diluted earnings per share in the range of
$1.30 to $1.45, based on a low-single-digit comparable
sales increase. The foregoing first quarter guidance does not
incorporate further anticipated share repurchases pursuant to the
remaining $327 million available
under the $500 million share
repurchase authorization approved by the company's Board of
Directors on August 27, 2020.
Conference Call/Webcast
The company will host a
conference call today at 8:00 a.m. to
discuss the financial results for the fourth quarter of
fiscal 2020. A webcast of the conference call is
available through the Investor Relations section of the company's
website http://www.biglots.com. An archive of the call will be
available through the Investor Relations section of the company's
website after 12:00 p.m. today
and will remain available through midnight on Friday, March 19, 2021. A replay of this call
will also be available beginning today at 12:00 p.m. through March
19 by dialing 877.660.6853 (Toll Free) or 201.612.7415
(Toll) and entering Replay Conference ID 13715962. All times are
Eastern Time.
Headquartered in Columbus,
Ohio, Big Lots, Inc. (NYSE: BIG) is a neighborhood discount
retailer operating 1,410 stores in 47 states, as well as a
best-in-class ecommerce platform with expanded capabilities via
BOPIS, curbside pickup, Instacart and PICKUP with same day
delivery. The company's product assortment is focused on home
essentials: Furniture, Seasonal, Soft Home, Food, Consumables, Hard
Home, and Electronics, Toys & Accessories. Big Lots' mission is
to help people Live BIG and Save Lots. The company strives to be
the BIG difference for a better life by delivering unmatched value
to customers through surprise and delight, being a "best place to
work" culture for associates, rewarding shareholders with
consistent growth and top-tier returns, as well as doing good in
local communities. For more information about the company, visit
www.biglots.com.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements in this release are forward-looking statements
within the meaning of the Private Securities Litigation Reform
Act of 1995, and such statements are intended to qualify for the
protection of the safe harbor provided by the Act. The words
"anticipate," "estimate," "approximate," "expect," "objective,"
"goal," "project," "intend," "plan," "believe," "will," "should,"
"may," "target," "forecast," "guidance," "outlook" and similar
expressions generally identify forward-looking statements.
Similarly, descriptions of objectives, strategies, plans, goals or
targets are also forward-looking statements. Forward-looking
statements relate to the expectations of management as to future
occurrences and trends, including statements expressing optimism or
pessimism about future operating results or events and projected
sales, earnings, capital expenditures and business strategy.
Forward-looking statements are based upon a number of assumptions
concerning future conditions that may ultimately prove to be
inaccurate. Forward-looking statements are and will be based upon
management's then-current views and assumptions regarding future
events and operating performance and are applicable only as of the
dates of such statements. Although the company believes the
expectations expressed in forward-looking statements are based on
reasonable assumptions within the bounds of knowledge,
forward-looking statements, by their nature, involve risks,
uncertainties and other factors, any one or a combination of which
could materially affect business, financial condition, results of
operations or liquidity.
Forward-looking statements that the company makes herein and in
other reports and releases are not guarantees of future performance
and actual results may differ materially from those discussed in
such forward-looking statements as a result of various factors,
including, but not limited to, developments related to the COVID-19
coronavirus pandemic, current economic and credit conditions, the
cost of goods, the inability to successfully execute strategic
initiatives, competitive pressures, economic pressures on customers
and the company, the availability of brand name closeout
merchandise, trade restrictions, freight costs, the
risks discussed in the Risk Factors section of the company's
most recent Annual Report on Form 10-K, and other factors discussed
from time to time in other filings with the SEC, including
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
This release should be read in conjunction with such filings, and
you should consider all of these risks, uncertainties and other
factors carefully in evaluating forward-looking statements.
You are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date thereof. The company
undertakes no obligation to publicly update forward-looking
statements, whether as a result of new information, future events
or otherwise. You are advised, however, to consult any further
disclosures the company makes on related subjects in public
announcements and SEC filings.
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
JANUARY
30
|
|
FEBRUARY
1
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$559,556
|
|
$52,721
|
|
|
|
Inventories
|
|
940,294
|
|
921,266
|
|
|
|
Other current
assets
|
|
85,939
|
|
89,962
|
|
|
|
Total
current assets
|
|
1,585,789
|
|
1,063,949
|
|
|
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
|
1,649,009
|
|
1,202,252
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment - net
|
|
717,216
|
|
849,147
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
16,329
|
|
4,762
|
|
|
Other
assets
|
|
68,914
|
|
69,171
|
|
|
|
|
|
$4,037,257
|
|
$3,189,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$398,433
|
|
$378,241
|
|
|
|
Current operating
lease liabilities
|
|
226,075
|
|
212,144
|
|
|
|
Property, payroll
and other taxes
|
|
109,694
|
|
82,109
|
|
|
|
Accrued operating
expenses
|
|
138,331
|
|
118,973
|
|
|
|
Insurance
reserves
|
|
34,660
|
|
36,131
|
|
|
|
Accrued salaries
and wages
|
|
49,830
|
|
39,292
|
|
|
|
Income taxes
payable
|
|
43,601
|
|
3,930
|
|
|
|
Total
current liabilities
|
|
1,000,624
|
|
870,820
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
35,764
|
|
279,464
|
|
|
|
|
|
|
|
|
|
|
Noncurrent
operating lease liabilities
|
|
1,465,433
|
|
1,035,377
|
|
|
Deferred income
taxes
|
|
7,762
|
|
48,610
|
|
|
Insurance
reserves
|
|
57,452
|
|
57,567
|
|
|
Unrecognized tax
benefits
|
|
11,304
|
|
10,722
|
|
|
Other
liabilities
|
|
181,187
|
|
41,257
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
1,277,731
|
|
845,464
|
|
|
|
|
|
$4,037,257
|
|
$3,189,281
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
JANUARY 30,
2021
|
|
FEBRUARY 1,
2020
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$1,737,915
|
100.0
|
|
$1,606,982
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
685,173
|
39.4
|
|
634,019
|
39.5
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
520,617
|
30.0
|
|
471,064
|
29.3
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
33,586
|
1.9
|
|
37,409
|
2.3
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
130,970
|
7.5
|
|
125,546
|
7.8
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(2,575)
|
(0.1)
|
|
(3,170)
|
(0.2)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
1,533
|
0.1
|
|
(250)
|
(0.0)
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
129,928
|
7.5
|
|
122,126
|
7.6
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
31,942
|
1.8
|
|
28,362
|
1.8
|
|
|
|
|
|
|
|
|
Net
income
|
|
$97,986
|
5.6
|
|
$93,764
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$2.68
|
|
|
$2.40
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$2.59
|
|
|
$2.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
36,509
|
|
|
39,037
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
1,316
|
|
|
165
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
37,825
|
|
|
39,202
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$0.30
|
|
|
$0.30
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
52 WEEKS
ENDED
|
|
52 WEEKS
ENDED
|
|
|
|
JANUARY 30,
2021
|
|
FEBRUARY 1,
2020
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$6,199,186
|
100.0
|
|
$5,323,180
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
2,497,386
|
40.3
|
|
2,114,682
|
39.7
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
1,965,555
|
31.7
|
|
1,823,409
|
34.3
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
138,336
|
2.2
|
|
134,981
|
2.5
|
|
|
|
|
|
|
|
|
|
Gain on sale of
distribution centers
|
|
(463,053)
|
(7.5)
|
|
(178,534)
|
(3.4)
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
856,548
|
13.8
|
|
334,826
|
6.3
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(11,031)
|
(0.2)
|
|
(16,827)
|
(0.3)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
(911)
|
(0.0)
|
|
(451)
|
(0.0)
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
844,606
|
13.6
|
|
317,548
|
6.0
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
215,415
|
3.5
|
|
75,084
|
1.4
|
|
|
|
|
|
|
|
|
Net
income
|
|
$629,191
|
10.1
|
|
$242,464
|
4.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$16.46
|
|
|
$6.18
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$16.11
|
|
|
$6.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
38,233
|
|
|
39,244
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
834
|
|
|
107
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
39,067
|
|
|
39,351
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$1.20
|
|
|
$1.20
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
|
|
JANUARY 30,
2021
|
|
FEBRUARY 1,
2020
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Net cash
provided by operating activities
|
|
$131,939
|
|
$258,422
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(32,222)
|
|
(33,249)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in financing activities
|
|
(87,992)
|
|
(234,246)
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
|
11,725
|
|
(9,073)
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
547,831
|
|
61,794
|
|
|
|
End of
period
|
|
$559,556
|
|
$52,721
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
52 WEEKS
ENDED
|
|
52 WEEKS
ENDED
|
|
|
|
|
|
JANUARY 30,
2021
|
|
FEBRUARY 1,
2020
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Net cash
provided by operating activities
|
|
$399,349
|
|
$338,970
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) investing activities
|
|
452,987
|
|
(74,480)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in financing activities
|
|
(345,501)
|
|
(257,803)
|
|
|
|
|
|
|
|
|
|
|
Increase in cash
and cash equivalents
|
|
506,835
|
|
6,687
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
52,721
|
|
46,034
|
|
|
|
End of
period
|
|
$559,556
|
|
$52,721
|
|
|
|
|
|
|
|
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(In thousands, except per share
data)
(Unaudited)
The following tables reconcile: gross margin, gross margin rate,
selling and administrative expenses, selling and administrative
expense rate, gain on sale of distribution center(s), gain on sale
of distribution center(s) rate, operating profit, operating profit
rate, income tax expense, effective income tax rate, net income,
and diluted earnings per share for the full year 2020 and the full
year 2019 (GAAP financial measures) to adjusted gross margin,
adjusted gross margin rate, adjusted selling and administrative
expenses, adjusted selling and administrative expense rate,
adjusted gain on sale of distribution center(s), adjusted gain on
sale of distribution center(s) rate, adjusted operating profit,
adjusted operating profit rate, adjusted income tax expense,
adjusted effective income tax rate, adjusted net income, and
adjusted diluted earnings per share (non-GAAP financial
measures).
Full Year
2020 - Fifty-two weeks ended January 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude gain on
sale of distribution
centers and related
expenses
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
2,497,386
|
|
$
(3,956)
|
|
$
2,493,430
|
Selling and
administrative expense rate
|
40.3%
|
|
(0.1%)
|
|
40.2%
|
Gain on sale
of distribution centers
|
(463,053)
|
|
463,053
|
|
-
|
Gain on sale
of distribution centers rate
|
(7.5%)
|
|
7.5%
|
|
-
|
Operating
profit
|
|
856,548
|
|
(459,097)
|
|
397,451
|
Operating
profit rate
|
|
13.8%
|
|
(7.4%)
|
|
6.4%
|
Income tax
expense
|
|
215,415
|
|
(117,194)
|
|
98,221
|
Effective
income tax rate
|
|
25.5%
|
|
(0.0%)
|
|
25.5%
|
Net
income
|
|
629,191
|
|
(341,903)
|
|
287,288
|
Diluted
earnings per share
|
|
$
16.11
|
|
$
(8.75)
|
|
$
7.35
|
The above adjusted selling and administrative expenses, adjusted
selling and administrative expense rate, adjusted gain on sale of
distribution centers, adjusted gain on sale of distribution centers
rate, adjusted operating profit, adjusted operating profit rate,
adjusted income tax expense, adjusted effective income tax rate,
adjusted net income, and adjusted diluted earnings per share are
"non-GAAP financial measures" as that term is defined by Rule 101
of Regulation G (17 CFR Part 244) and Item 10 of Regulation S-K (17
CFR Part 229). These non-GAAP financial measures exclude from the
most directly comparable financial measures calculated and
presented in accordance with accounting principles generally
accepted in the United States of
America ("GAAP") a gain resulting from the sale of our
Columbus, OH; Durant, OK; Montgomery, AL; and Tremont, PA distribution centers and the
related expenses of $459,097
($341,903, net of tax).
Full Year
2019 - Fifty-two weeks ended February 1, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Impact to
exclude
department exit
inventory
impairment
|
|
Impact to
exclude
transformational
restructuring costs
|
|
Adjustment
to
exclude legal
settlement loss
contingencies
|
|
Adjustment
to
exclude gain on
sale of distribution
center
|
|
As
Adjusted
(non-GAAP)
|
Gross
margin
|
|
$
2,114,682
|
|
$
6,050
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
2,120,732
|
Gross margin
rate
|
|
39.7%
|
|
0.1%
|
|
-
|
|
-
|
|
-
|
|
39.8%
|
Selling and
administrative expenses
|
1,823,409
|
|
-
|
|
(38,338)
|
|
(7,250)
|
|
-
|
|
1,777,821
|
Selling and
administrative expense rate
|
34.3%
|
|
-
|
|
(0.7%)
|
|
(0.1%)
|
|
-
|
|
33.4%
|
Gain on sale
of distribution center
|
(178,534)
|
|
-
|
|
-
|
|
-
|
|
178,534
|
|
-
|
Gain on sale
of distribution center rate
|
(3.4%)
|
|
-
|
|
-
|
|
-
|
|
3.4%
|
|
-
|
Operating
profit
|
|
334,826
|
|
6,050
|
|
38,338
|
|
7,250
|
|
(178,534)
|
|
207,930
|
Operating
profit rate
|
|
6.3%
|
|
0.1%
|
|
0.7%
|
|
0.1%
|
|
(3.4%)
|
|
3.9%
|
Income tax
expense
|
|
75,084
|
|
1,553
|
|
9,836
|
|
1,696
|
|
(41,930)
|
|
46,239
|
Effective
income tax rate
|
|
23.6%
|
|
0.0%
|
|
0.1%
|
|
(0.0%)
|
|
0.6%
|
|
24.3%
|
Net
income
|
|
242,464
|
|
4,497
|
|
28,502
|
|
5,554
|
|
(136,604)
|
|
144,413
|
Diluted
earnings per share
|
|
$
6.16
|
|
$
0.11
|
|
$
0.72
|
|
$
0.14
|
|
$
(3.47)
|
|
$
3.67
|
The above adjusted gross margin, adjusted gross margin rate,
adjusted selling and administrative expenses, adjusted selling and
administrative expense rate, adjusted gain on sale of distribution
center, adjusted gain on sale of distribution center rate, adjusted
operating profit, adjusted operating profit rate, adjusted income
tax expense, adjusted effective income tax rate, adjusted net
income, and adjusted diluted earnings per share are "non-GAAP
financial measures" as that term is defined by Rule 101 of
Regulation G (17 CFR Part 244) and Item 10 of Regulation S-K (17
CFR Part 229). These non-GAAP financial measures exclude from the
most directly comparable financial measures calculated and
presented in accordance with GAAP (1) an inventory impairment
amount of $6,050 ($4,497, net of tax) as a result of a merchandise
department exit; (2) the costs associated with a transformational
restructuring initiative of $38,338
($28,502, net of tax); (3) a pretax
charge related to estimated legal settlement of employee class
actions of $7,250 ($5,554, net of tax); and (4) a gain resulting
from the sale of our Rancho Cucamonga,
CA distribution center of $178,534 ($136,604,
net of tax).
Our management believes that the disclosure of these non-GAAP
financial measures provides useful information to investors because
the non-GAAP financial measures present an alternative and more
relevant method for measuring our operating performance, excluding
special items included in the most directly comparable GAAP
financial measures, that management believes is more indicative of
our on-going operating results and financial condition. Our
management uses these non-GAAP financial measures, along with the
most directly comparable GAAP financial measures, in evaluating our
operating performance.
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SOURCE Big Lots, Inc.