Q3 comparable sales in line with guidance;
gross margin rate and adjusted expenses ahead of guidance
Reiterating negative high-single-digit Q4 comp
sales outlook with an approximately 38% gross margin rate; Q4
adjusted operating result expected to be ahead of last year,
marking the first quarter of year-over-year improvement since Q1
2021
Expect quarterly year-over-year improvements
to continue through 2024; Project Springboard on track to deliver a
high proportion of the $200 million+ benefit in 2024
Q3 GAAP EPS of $0.16; adjusted EPS loss of $4.38
For the Q3 Results Presentation, Please
Visit: https://www.biglots.com/corporate/investors
COLUMBUS, Ohio, Nov. 30,
2023 /PRNewswire/ -- Big Lots, Inc. (NYSE: BIG) today
reported net income of $4.7 million,
or $0.16 per share, for the third
quarter of fiscal 2023 ended October 28,
2023. This result includes a net after-tax benefit of
$132.7 million, or $4.53 per share, associated with the net impact
of gains on the sale of real estate and related expenses,
distribution center closure costs, impairment charges, and fees
related to Project Springboard. Excluding this benefit, the
adjusted net loss in the third quarter of 2023 was $127.9 million, or $4.38 per share (see non-GAAP table included
later in this release). The adjusted net loss for the third quarter
of fiscal 2022 was $86.7 million, or
$2.99 per share.
Net sales for the third quarter of fiscal 2023 totaled
$1.027 billion, a 14.7% decrease
compared to $1.204 billion for the
same period last year. The decline to last year was driven by a
comparable sales decrease of 13.2%. A net decrease in store count
contributed approximately 150 basis points of sales decline
compared to the third quarter of 2022.
Commenting on today's results announcement, Bruce Thorn, President and CEO of Big Lots
stated, "Although the environment remains challenging, we continued
to make significant progress in turning around our business.
Our key strategic actions are building momentum and we continue to
play offense with our efforts to deliver incredible bargains and
communicate unmistakable value. As a result, we are now on
track to deliver an adjusted Q4 operating result ahead of last
year, which would mark the first quarter of year-over-year
improvement in nearly three years, and we expect quarterly
year-over-year improvements to continue through 2024."
"As it relates to Q3 results, we were able to deliver on or
exceed our beginning of quarter guidance on all key metrics. We
posted a sequential improvement in comp sales, significant year
over year improvement in gross margin rate, and adjusted SG&A
well below last year despite absorbing additional expense related
to the recent sale/leaseback of our California distribution center and 23 owned
stores. We believe the improvements in Q3 were driven by the five
key actions that underlie our strategy, which are to own bargains,
communicate unmistakable value, increase store relevance, win with
omnichannel, and drive productivity.
"Additionally, we are on track to achieve over $100 million of SG&A cost savings, prior to
Project Springboard benefits for the year. Project
Springboard is off to a strong start and on track to deliver
$200 million of bottom-line benefits,
spanning gross margin and SG&A, of which we expect a high
proportion to be realized on a run-rate basis by the end of
2024."
"To support our ongoing turnaround, our efforts to aggressively
manage costs, inventory and capital expenditures, as well as
monetize our assets with completion of a $306 million sale/leaseback in the quarter, have
allowed us to significantly strengthen our balance sheet. Our
ongoing efforts are providing us with ample liquidity to weather
the macroeconomic challenges, even if they are prolonged. We expect
to generate substantial free cash flow and significantly reduce
outstanding debt in the fourth quarter."
"Overall, we are pleased with the progress we are seeing across
our business and are increasingly confident that our five key
actions will translate into continued improvement in financial
performance in Q4 and into 2024."
A summary of adjustments to loss per diluted share is included
in the table below.
|
|
|
Q3 2023
|
Earnings (loss) per
diluted share - as reported
|
$0.16
|
|
|
Adjustment to exclude
net impact of gains on the sale of real estate and related
expenses, distribution center closure costs, impairment charges,
and fees related to Project Springboard (1)
|
($4.53)
|
Earnings (loss) per
diluted share – adjusted basis
|
($4.38)
|
|
|
(1) Non-GAAP
detailed reconciliation provided in statement below
|
|
Inventory and Cash Management
Inventory ended the third quarter of fiscal 2023 at $1.177 billion compared to $1.345 billion at the end of the third quarter
last year, with the 12.5% decrease driven by lower in-transit
inventory, on-hand units, and average unit cost.
The company ended the third quarter of fiscal 2023 with
$46.6 million of Cash and Cash
Equivalents and $533.0 million of
Long-term Debt under its $900 million
asset-based lending facility, compared to $62.1 million of Cash and Cash Equivalents and
$459.9 million of Long-term Debt as
of the end of the third quarter of fiscal 2022.
Sale/Leaseback Update
During the third quarter of fiscal 2023, the company completed
the sale and leaseback of its Apple
Valley, CA distribution center and 23 owned stores,
resulting in gross proceeds of $306
million. Net of expenses and taxes, the company
received net proceeds of approximately $302
million. The company used $101
million of the net proceeds to fully pay down its synthetic
lease on the Apple Valley, CA
distribution center and the remainder to provide additional
liquidity to the business. Three stores that were included in the
initial purchase and sale agreement for the sale and leaseback have
been excluded from the final transaction. The company will continue
to evaluate monetization opportunities for remaining owned stores
and its corporate headquarters building.
Share Repurchases
The company did not execute any share repurchases during the
quarter. The company has $159 million
remaining under its December 2021
$250 million authorization.
Guidance
For the fourth quarter, the company expects comp sales to
improve relative to the third quarter and be in the
high-single-digit negative range, as key actions to improve the
business continue to gain traction. The 53rd week is expected to
contribute approximately 400 basis points of sales benefit compared
to the fourth quarter of 2022. This benefit will be partially
offset by a net decrease in store count which will have an
unfavorable impact of approximately 300 basis points of
sales. With regard to gross margin rate, the company expects
the rate to improve to approximately 38% driven by reduced markdown
activity, lower freight costs, and cost reduction and productivity
initiatives. The company expects adjusted SG&A dollars to be
down by a low-single digit percentage versus 2022, including the
impact of additional expense from the recently completed sale and
leaseback. The company does not expect to recognize any tax benefit
in the fourth quarter as management expects to remain in a
three-year cumulative loss position, which requires the company to
record valuation allowances against deferred tax assets, including
those related to net operating losses. The company is not providing
EPS guidance at this point, but does expect its Q4 adjusted
operating result to be ahead of last year. The company expects a
share count of approximately 29.3 million for the fourth
quarter.
Conference Call/Webcast
The company will host a conference call today at 8:00 a.m. ET to discuss the financial results for
the fourth quarter of fiscal 2023. A live webcast of the call will
be available through the Investor Relations section of its website
at http://www.biglots.com/corporate/investors/ or by phone by
dialing 877.407.3088 (Toll Free) or 201.389.0927 (Toll). An archive
will be available on the Investor Relations section of the
company's website at http://www.biglots.com/corporate/investors/
through midnight Thursday, December 14,
2023. In addition, a replay of the call will be available
through December 14 by dialing
877.660.6853 (Toll Free) or 201.612.7415 (Toll) and enter the
Replay Conference ID: 13742519.
About Big Lots
Headquartered in Columbus, Ohio, Big Lots,
Inc. (NYSE: BIG) is one of America's largest home discount
retailers, operating more than 1,420 stores in 48 states, as well
as a best-in-class ecommerce platform with expanded fulfillment and
delivery capabilities. The Company's mission is to help customers
"Live Big and Save Lots" by offering unique treasures and
exceptional bargains on everything for their home, including
furniture, seasonal decor, kitchenware, pet supplies, food items,
laundry and cleaning essentials and more. Big Lots is the recipient
of Home Textiles Today's 2021 Retail Titan Award. For more
information about the company or to find the store nearest you,
visit 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," "continue,"
"could," "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 our
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 we believe the expectations expressed in
forward-looking statements are based on reasonable assumptions
within the bounds of our 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 we make 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, the current economic and credit
conditions, inflation, the cost of goods, our inability to
successfully execute strategic initiatives, competitive pressures,
economic pressures on our customers and us, the availability of
brand name closeout merchandise, trade restrictions, freight costs,
the risks discussed in the Risk Factors section of our 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 they are made. We
undertake 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 we make on related subjects in our public announcements
and SEC filings.
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
OCTOBER
28
|
|
OCTOBER
29
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$46,594
|
|
$62,138
|
|
|
|
Inventories
|
|
1,177,346
|
|
1,345,280
|
|
|
|
Other current
assets
|
|
89,747
|
|
122,581
|
|
|
|
Total
current assets
|
|
1,313,687
|
|
1,529,999
|
|
|
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
|
1,695,005
|
|
1,693,138
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment - net
|
|
578,543
|
|
718,642
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
0
|
|
53,962
|
|
|
Other
assets
|
|
38,254
|
|
39,671
|
|
|
|
|
|
$3,625,489
|
|
$4,035,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$408,273
|
|
$481,779
|
|
|
|
Current operating
lease liabilities
|
|
237,098
|
|
245,768
|
|
|
|
Property, payroll
and other taxes
|
|
77,194
|
|
101,597
|
|
|
|
Accrued operating
expenses
|
|
119,703
|
|
125,518
|
|
|
|
Insurance
reserves
|
|
35,187
|
|
39,335
|
|
|
|
Accrued salaries and
wages
|
|
33,809
|
|
27,700
|
|
|
|
Income taxes
payable
|
|
912
|
|
1,225
|
|
|
|
Total
current liabilities
|
|
912,176
|
|
1,022,922
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
533,000
|
|
459,900
|
|
|
|
|
|
|
|
|
|
|
Noncurrent operating
lease liabilities
|
|
1,674,314
|
|
1,575,678
|
|
|
Deferred income
taxes
|
|
1,310
|
|
0
|
|
|
Insurance
reserves
|
|
57,277
|
|
60,269
|
|
|
Unrecognized tax
benefits
|
|
8,604
|
|
8,170
|
|
|
Other
liabilities
|
|
125,605
|
|
126,243
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
313,203
|
|
782,230
|
|
|
|
|
|
$3,625,489
|
|
$4,035,412
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
OCTOBER 28,
2023
|
|
OCTOBER 29,
2022
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$1,026,677
|
100.0
|
|
$1,204,281
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
373,815
|
36.4
|
|
409,460
|
34.0
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
525,730
|
51.2
|
|
503,016
|
41.8
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
33,122
|
3.2
|
|
37,255
|
3.1
|
|
|
|
|
|
|
|
|
|
Gain on sale of real
estate
|
|
(204,719)
|
(19.9)
|
|
0
|
0.0
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
19,682
|
1.9
|
|
(130,811)
|
(10.9)
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(13,592)
|
(1.3)
|
|
(6,256)
|
(0.5)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
0
|
0.0
|
|
62
|
0.0
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
6,090
|
0.6
|
|
(137,005)
|
(11.4)
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
1,347
|
0.1
|
|
(33,992)
|
(2.8)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$4,743
|
0.5
|
|
($103,013)
|
(8.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.16
|
|
|
($3.56)
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$0.16
|
|
|
($3.56)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
29,204
|
|
|
28,943
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
96
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
29,300
|
|
|
28,943
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$0.00
|
|
|
$0.30
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
39 WEEKS
ENDED
|
|
39 WEEKS
ENDED
|
|
|
|
OCTOBER 28,
2023
|
|
OCTOBER 29,
2022
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Recast)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$3,289,615
|
100.0
|
|
$3,925,216
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
1,142,168
|
34.7
|
|
1,352,602
|
34.5
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
1,606,678
|
48.8
|
|
1,495,848
|
38.1
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
110,986
|
3.4
|
|
111,808
|
2.8
|
|
|
|
|
|
|
|
|
|
Gain on sale of real
estate
|
|
(211,912)
|
(6.4)
|
|
(1,609)
|
(0.0)
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(363,584)
|
(11.1)
|
|
(253,445)
|
(6.5)
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(33,916)
|
(1.0)
|
|
(12,910)
|
(0.3)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
5
|
0.0
|
|
1,359
|
0.0
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(397,495)
|
(12.1)
|
|
(264,996)
|
(6.8)
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
53,672
|
1.6
|
|
(66,751)
|
(1.7)
|
|
|
|
|
|
|
|
|
Net
loss
|
|
($451,167)
|
(13.7)
|
|
($198,245)
|
(5.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
($15.49)
|
|
|
($6.88)
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
($15.49)
|
|
|
($6.88)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
29,132
|
|
|
28,828
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
29,132
|
|
|
28,828
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$0.30
|
|
|
$0.90
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
OCTOBER 28,
2023
|
|
OCTOBER 29,
2022
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Net cash used
in operating activities
|
|
($248,521)
|
|
($143,630)
|
|
|
|
|
|
|
|
Net cash
provided by (used in) investing activities
|
|
314,701
|
|
(37,979)
|
|
|
|
|
|
|
|
Net cash
(used in) provided by financing activities
|
|
(65,620)
|
|
194,603
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
|
560
|
|
12,994
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
Beginning of
period
|
|
46,034
|
|
49,144
|
|
End of
period
|
|
$46,594
|
|
$62,138
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
39 WEEKS
ENDED
|
|
39 WEEKS
ENDED
|
|
|
|
|
|
OCTOBER 28,
2023
|
|
OCTOBER 29,
2022
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Net cash used
in operating activities
|
|
($399,132)
|
|
($279,039)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) investing activities
|
|
294,323
|
|
(124,851)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by financing activities
|
|
106,673
|
|
412,306
|
|
|
|
|
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
|
1,864
|
|
8,416
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning of
period
|
|
44,730
|
|
53,722
|
|
|
|
End of
period
|
|
$46,594
|
|
$62,138
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
(In thousands, except per
share data)
(Unaudited)
The following tables reconcile: selling and administrative
expenses, selling and administrative expense rate, depreciation
expense, depreciation expense rate, gain on sale of real estate,
gain on sale of real estate rate, operating profit (loss),
operating profit (loss) rate, income tax expense (benefit),
effective income tax rate, net income (loss), and diluted earnings
(loss) per share for the third quarter of 2023, the year-to-date
2023, the third quarter of 2022, and the year-to-date 2022 (GAAP
financial measures) to adjusted selling and administrative
expenses, adjusted selling and administrative expense rate,
adjusted depreciation expense, adjusted depreciation expense rate,
adjusted gain on sale of real estate, adjusted gain on sale of real
estate rate, adjusted operating profit (loss), adjusted operating
profit (loss) rate, adjusted income tax expense (benefit), adjusted
effective income tax rate, adjusted net income (loss), and adjusted
diluted earnings (loss) per share (non-GAAP financial
measures).
Third Quarter
of 2023 - Thirteen weeks ended October 28,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment to
exclude forward distribution center ("FDC") contract termination
costs and related expenses
|
|
Adjustment to
exclude store asset impairment charges
|
|
Adjustment to
exclude gain on sale of real estate and related
expenses
|
|
Adjustment to
exclude fees related to a cost reduction and productivity
initiative
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
|
$
525,730
|
|
$
(2,752)
|
|
$ (53,990)
|
|
$
-
|
|
$
(14,444)
|
|
$ 454,544
|
Selling and
administrative expense rate
|
|
51.2 %
|
|
(0.3 %)
|
|
(5.3 %)
|
|
-
|
|
(1.4 %)
|
|
44.3 %
|
Gain on sale
of real estate
|
|
(204,719)
|
|
-
|
|
-
|
|
204,719
|
|
-
|
|
-
|
Gain on sale
of real estate rate
|
|
(19.9 %)
|
|
-
|
|
-
|
|
19.9 %
|
|
-
|
|
-
|
Operating
profit (loss)
|
|
19,682
|
|
2,752
|
|
53,990
|
|
(204,719)
|
|
14,444
|
|
(113,851)
|
Operating
profit (loss) rate
|
|
1.9 %
|
|
0.3 %
|
|
5.3 %
|
|
(19.9 %)
|
|
1.4 %
|
|
(11.1 %)
|
Income tax
expense (benefit)
|
|
1,347
|
|
-
|
|
-
|
|
(879)
|
|
-
|
|
468
|
Effective
income tax rate
|
|
22.1 %
|
|
-
|
|
-
|
|
(22.5 %)
|
|
-
|
|
(0.4 %)
|
Net Income
(loss)
|
|
4,743
|
|
2,752
|
|
53,990
|
|
(203,840)
|
|
14,444
|
|
(127,911)
|
Diluted
earnings (loss) per share
|
|
$
0.16
|
|
$
0.09
|
|
$
1.85
|
|
$
(6.98)
|
|
$
0.49
|
|
$
(4.38)
|
The above adjusted selling and administrative expenses,
adjusted selling and administrative expense rate, adjusted gain on
sale of real estate, adjusted gain on sale of real estate rate,
adjusted operating profit (loss), adjusted operating
profit (loss) rate, adjusted income tax expense (benefit), adjusted
effective income tax rate, adjusted net income (loss), and adjusted
diluted earnings (loss) 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") FDC contract termination costs and related expenses of
$2,752, store asset impairment
charges net of liability extinguishment for terminated leases of
previously impaired stores of $53,990, a gain on sale of real estate and
related expenses of $204,719
($203,840, net of tax), and fees
related to a cost reduction and productivity initiative which we
refer to as "Project Springboard" of $14,444.
Year-to-Date
2023 - Thirty-nine weeks ended October 28,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment to
exclude synthetic lease exit costs and related
expenses
|
|
Adjustment to
exclude forward distribution center ("FDC") contract termination
costs and related expenses
|
|
Adjustment to
exclude store asset impairment charges
|
|
Adjustment to
exclude gain on sale of real estate and related
expenses
|
|
Adjustment to
exclude fees related to a cost reduction and productivity
initiative
|
|
Adjustment to
exclude initial valuation allowance on deferred tax
assets
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
|
$
1,606,678
|
|
$
(53,610)
|
|
$
(13,369)
|
|
$
(136,871)
|
|
$
-
|
|
$
(19,864)
|
|
$
-
|
|
$
1,382,964
|
Selling and
administrative expense rate
|
|
48.8 %
|
|
(1.6 %)
|
|
(0.4 %)
|
|
(4.2 %)
|
|
-
|
|
(0.6 %)
|
|
-
|
|
42.0 %
|
Depreciation
expense
|
|
110,986
|
|
-
|
|
(8,030)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
102,956
|
Depreciation
expense rate
|
|
3.4 %
|
|
-
|
|
(0.2 %)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3.1 %
|
Gain on sale
of real estate
|
|
(211,912)
|
|
-
|
|
-
|
|
-
|
|
211,912
|
|
-
|
|
-
|
|
-
|
Gain on sale
of real estate rate
|
|
(6.4 %)
|
|
-
|
|
-
|
|
-
|
|
6.4 %
|
|
-
|
|
-
|
|
-
|
Operating
loss
|
|
|
(363,584)
|
|
53,610
|
|
21,399
|
|
136,871
|
|
(211,912)
|
|
19,864
|
|
-
|
|
(343,752)
|
Operating loss
rate
|
|
(11.1 %)
|
|
1.6 %
|
|
0.7 %
|
|
4.2 %
|
|
(6.4 %)
|
|
0.6 %
|
|
-
|
|
(10.4 %)
|
Income tax
expense (benefit)
|
|
53,672
|
|
13,830
|
|
4,810
|
|
20,210
|
|
(2,582)
|
|
1,272
|
|
(147,850)
|
|
(56,638)
|
Effective
income tax rate
|
|
(13.5 %)
|
|
(3.6 %)
|
|
(1.2 %)
|
|
(5.3 %)
|
|
0.7 %
|
|
(0.3 %)
|
|
38.2 %
|
|
15.0 %
|
Net
loss
|
|
|
(451,167)
|
|
39,780
|
|
16,589
|
|
116,661
|
|
(209,330)
|
|
18,592
|
|
147,850
|
|
(321,025)
|
Diluted
earnings (loss) per share
|
|
$
(15.49)
|
|
$
1.37
|
|
$
0.57
|
|
$
4.00
|
|
$
(7.19)
|
|
$
0.64
|
|
$
5.08
|
|
$
(11.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The income
tax impact of each adjustment was determined prior to consideration
of the valuation allowance on deferred tax assets recorded the
second quarter of 2023.
|
|
|
|
|
|
|
|
|
The above adjusted selling and administrative expenses,
adjusted selling and administrative expense rate, adjusted
depreciation expense, adjusted depreciation expense rate, adjusted
gain on sale of real estate, adjusted gain on sale of real estate
rate, adjusted operating loss, adjusted operating loss
rate, adjusted income tax expense (benefit), adjusted effective
income tax rate, adjusted net loss, and adjusted diluted earnings
(loss) 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 synthetic
lease exit costs and related expenses of $53,610 ($39,780,
net of tax), FDC contract termination costs and related expenses of
$21,399 ($16,589, net of tax), store asset impairment
charges net of liability extinguishment for terminated leases of
previously impaired stores of $136,871 ($116,661,
net of tax), a gain on sale of real estate and related expenses of
$211,912 ($209,330, net of tax), fees related to a cost
reduction and productivity initiative which we refer to as "Project
Springboard" of $19,864 ($18,592, net of tax), and an initial valuation
allowance on deferred tax assets of $147,850 recorded in second quarter of
2023.
Third Quarter
of 2022 - Thirteen weeks ended October 29,
2022
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment to
exclude store asset impairment charges
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
503,016
|
|
$
(21,723)
|
|
$
481,293
|
Selling and
administrative expense rate
|
41.8 %
|
|
(1.8 %)
|
|
40.0 %
|
Operating
loss
|
|
|
(130,811)
|
|
21,723
|
|
(109,088)
|
Operating loss
rate
|
|
(10.9 %)
|
|
1.8 %
|
|
(9.1 %)
|
Income tax
benefit
|
|
(33,992)
|
|
5,375
|
|
(28,617)
|
Effective
income tax rate
|
|
24.8 %
|
|
0.0 %
|
|
24.8 %
|
Net
loss
|
|
|
(103,013)
|
|
16,348
|
|
(86,665)
|
Diluted
earnings (loss) per share
|
$
(3.56)
|
|
$
0.56
|
|
$
(2.99)
|
The above adjusted selling and administrative expenses,
adjusted selling and administrative expense rate,
adjusted operating loss, adjusted operating loss rate,
adjusted income tax benefit, adjusted effective income tax rate,
adjusted net loss, and adjusted diluted earnings (loss) 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 store asset impairment charges of
$21,723 ($16,348, net of tax).
Year-to-Date
2022 - Thirty-nine weeks ended October 29,
2022
|
|
|
|
|
|
|
|
|
|
|
|
As
Recast
|
|
Adjustment to
exclude store asset impairment charges
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
|
$
1,495,848
|
|
$
(45,828)
|
|
$
1,450,020
|
Selling and
administrative expense rate
|
|
38.1 %
|
|
(1.2 %)
|
|
36.9 %
|
Operating
loss
|
|
|
(253,445)
|
|
45,828
|
|
(207,617)
|
Operating loss
rate
|
|
(6.5 %)
|
|
1.2 %
|
|
(5.3 %)
|
Income tax
benefit
|
|
(66,751)
|
|
11,331
|
|
(55,420)
|
Effective
income tax rate
|
|
25.2 %
|
|
0.1 %
|
|
25.3 %
|
Net
loss
|
|
|
(198,245)
|
|
34,497
|
|
(163,748)
|
Diluted
earnings (loss) per share
|
|
$
(6.88)
|
|
$
1.20
|
|
$
(5.68)
|
The above adjusted selling and administrative expenses,
adjusted selling and administrative expense rate,
adjusted operating loss, adjusted operating loss rate,
adjusted income tax benefit, adjusted effective income tax rate,
adjusted net loss, and adjusted diluted earnings (loss) 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 store asset impairment charges of
$48,828 ($34,497, 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.