COLUMBUS, Ohio, Aug. 31, 2018 /PRNewswire/ -- Big Lots, Inc.
(NYSE: BIG) today reported income of $24.2
million, or $0.59 per diluted
share, for the second quarter of fiscal 2018 ended August 4, 2018. This result compares to our
guidance of income in the range of $0.60 to $0.70 per
diluted share, and to last year's second quarter income of
$29.1 million, or $0.67 per diluted share. Comparable store sales
for the second quarter of fiscal 2018 increased 1.6% compared to
our guidance of flat to +2%. Net sales for the second quarter of
fiscal 2018 were $1,222.2 million
compared to $1,219.6 million for the
same period last year with the increase in comparable store sales
partially offset by a lower store count year-over-year.
Inventory ended the second quarter of fiscal 2018 at
$854 million, compared to
$810 million for the second quarter
of fiscal 2017, with the increase driven by the timing of receipts
of early fall and seasonal-related merchandise into our
distribution centers.
We ended the second quarter of fiscal 2018 with $58 million of Cash and Cash Equivalents and
$325 million of borrowings under our
credit facility compared to $56
million of Cash and Cash Equivalents and $227 million of borrowings under our credit
facility as of the end of the second quarter of fiscal 2017. Cash
flow (cash provided by operating activities less capital
expenditures) over the last 12 months has been focused on returning
cash to our shareholders and investing in strategic initiatives
designed to support future growth.
Total Cash Returned To Shareholders
As a reminder, on March 7, 2018, our
Board of Directors approved a share repurchase program ("2018 Share
Repurchase Program") providing for the repurchase of up to
$100 million of our common shares in
open market and/or privately negotiated transactions at our
discretion, subject to market conditions and other factors. Common
shares acquired through the 2018 Share Repurchase Program will be
available to meet obligations under our equity compensation plans
and for general corporate purposes. In the second quarter, we
invested $100 million to repurchase
2.4 million shares at an average price of $42.11, or approximately 12% below yesterday's
closing price. Our activity was completed through our Accelerated
Share Repurchase as communicated on June 5,
2018, and fully exhausted our $100
million Share Repurchase Authorization approved by the Board
in March of this year.
In the second quarter of fiscal 2018, the combination of share
repurchase activity and our quarterly dividend payment represents
approximately $112 million returned
to shareholders. Year to date, approximately $127 million has been returned to shareholders in
the form of share repurchases and dividend payments.
As announced in a separate press release earlier today, on
August 29, 2018, our Board of
Directors declared a quarterly cash dividend of $0.30 per common share. This dividend payment of
approximately $12 million is payable
on September 28, 2018 to shareholders
of record as of the close of business on September 14, 2018.
As part of our ongoing focus on capital structure, we have
extended our current $700 million
five year unsecured credit facility. The strength of our credit
profile, operations, balance sheet and cash flow generation enabled
us to work collaboratively with our existing banking group to
extend the term of our current credit facility by approximately
five years. The credit facility now covers a new five year period
(expiration August 2023) and
maintains a similar structure and financial covenants as our
previous facility.
FISCAL Q3 2018 GUIDANCE
- Provides initial Q3 guidance for comparable store sales
increase of +2% to +4%
- Provides initial Q3 guidance for income of $0.04 per diluted share to a loss of $0.06 per share, compared to adjusted income of
$0.06 per diluted share (non-GAAP,
refer to detailed reconciliation included later in this release)
for the same period last year
For the third quarter of fiscal 2018, we estimate income of
$0.04 per diluted share to a loss of
$0.06 per share, compared to adjusted
income of $0.06 per diluted share
(non-GAAP) for the third quarter of fiscal 2017. This guidance is
based on a comparable store sales increase of +2% to +4%.
FISCAL Q4 2018 GUIDANCE
- Provides initial Q4 guidance for comparable store sales
increase in the low single digits
- Provides initial Q4 guidance for income of $2.90 to $3.00 per
diluted share, compared to adjusted income of $2.57 per diluted share (non-GAAP) for the same
period last year
For the fourth quarter of fiscal 2018, we estimate income will
be in the range of $2.90 to
$3.00 per diluted share, compared to
adjusted income of $2.57 per diluted
share (non-GAAP) for the fourth quarter of fiscal 2017. This
guidance is based on a comparable store sales increase in the low
single digit range.
FISCAL 2018 GUIDANCE
- Affirms guidance for fiscal 2018 comparable store sales
increase of approximately 1%
- Updates guidance for fiscal 2018 adjusted income to be in
the range of $4.40 to $4.55 per diluted share (non-GAAP), compared to
fiscal 2017 adjusted income of $4.45
per diluted share (non-GAAP)
- Updates guidance for fiscal 2018 cash flow in the range of
$100 to $110
million
Based on the actual results for the first two quarters and our
expectations for the third and fourth quarters of fiscal 2018 noted
above, we are updating our guidance of fiscal 2018 income in the
range of $4.40 to $4.55 per diluted share. This compares to
adjusted income of $4.45 per diluted
share (non-GAAP) for fiscal 2017. This annual guidance is based on
a comparable store sales increase of approximately 1%. We estimate
this financial performance will result in cash flow in the range of
$100 to $110
million.
|
|
Full Year
|
|
|
|
|
|
|
|
|
|
2018
Guidance
|
|
2017
|
|
|
|
|
|
|
Earnings per diluted
share - adjusted basis (1)
|
$4.40 -
$4.55
|
|
$4.45
|
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|
|
|
|
|
|
(1) Non-GAAP
detailed reconciliation provided in our statements
below.
|
Conference Call/Webcast
We will host a conference call
today at 8:00 a.m. to discuss our
financial results for the second quarter of fiscal 2018 and provide
commentary on our outlook for fiscal 2018. We invite you to listen
to the webcast of the conference call through the Investor
Relations section of our website http://www.biglots.com. If you are
unable to join the live webcast, an archive of the call will be
available through the Investor Relations section of our
website after 12:00 noon today and will remain available
through midnight on Friday, September 14,
2018. A replay of this call will also be available beginning
today at 12:00 noon through September
14 by dialing 1.888.203.1112 (Toll Free USA and Canada) or 1.719.457.0820 (International) and
entering Replay Passcode 3966855. All times are Eastern Time.
Headquartered in Columbus,
Ohio, Big Lots, Inc. (NYSE: BIG) is a community retailer
operating 1,416 BIG LOTS stores in 47 states, dedicated to friendly
service, trustworthy value, and affordable solutions in every
season and category – furniture, food, décor, and more. We exist to
serve everyone like family, providing a better shopping experience
for our customers, valuing and developing our associates, and
creating growth for our shareholders. Big Lots supports the
communities it serves through the Big Lots Foundation, a charitable
organization focused on four areas of need: hunger, housing,
healthcare, and education. 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," "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 our 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, current economic and credit
conditions, 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 our 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. 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)
|
|
|
|
|
|
|
|
|
|
AUGUST
4
|
|
JULY
29
|
|
|
|
2018
|
|
2017
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$58,457
|
|
$56,009
|
|
Inventories
|
|
854,192
|
|
810,485
|
|
Other current
assets
|
|
140,393
|
|
107,899
|
|
Total
current assets
|
|
1,053,042
|
|
974,393
|
|
|
|
|
|
|
Property and
equipment - net
|
|
701,672
|
|
523,719
|
|
|
|
|
|
|
Deferred income
taxes
|
|
23,664
|
|
47,084
|
Other
assets
|
|
50,352
|
|
46,268
|
|
|
|
$1,828,730
|
|
$1,591,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$355,721
|
|
$363,276
|
|
Property, payroll
and other taxes
|
|
84,008
|
|
84,625
|
|
Accrued operating
expenses
|
|
120,761
|
|
70,092
|
|
Insurance
reserves
|
|
37,787
|
|
47,710
|
|
Accrued salaries
and wages
|
|
22,942
|
|
32,419
|
|
Income taxes
payable
|
|
1,266
|
|
2,072
|
|
Total
current liabilities
|
|
622,485
|
|
600,194
|
|
|
|
|
|
|
Long-term
obligations under bank credit facility
|
|
324,700
|
|
226,600
|
|
|
|
|
|
|
Deferred
rent
|
|
58,296
|
|
57,640
|
Insurance
reserves
|
|
56,321
|
|
57,687
|
Unrecognized tax
benefits
|
|
15,451
|
|
17,480
|
Synthetic lease
obligation
|
|
98,213
|
|
-
|
Other
liabilities
|
|
47,539
|
|
46,925
|
|
|
|
|
|
|
Shareholders'
equity
|
|
605,725
|
|
584,938
|
|
|
|
$1,828,730
|
|
$1,591,464
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
AUGUST 4,
2018
|
|
JULY 29,
2017
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$1,222,169
|
100.0
|
|
$1,219,597
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
491,419
|
40.2
|
|
492,500
|
40.4
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
426,605
|
34.9
|
|
415,154
|
34.0
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
30,496
|
2.5
|
|
29,386
|
2.4
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
34,318
|
2.8
|
|
47,960
|
3.9
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(2,407)
|
(0.2)
|
|
(1,619)
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
149
|
0.0
|
|
435
|
0.0
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
32,060
|
2.6
|
|
46,776
|
3.8
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
7,896
|
0.6
|
|
17,656
|
1.4
|
|
|
|
|
|
|
|
|
Net
income
|
|
$24,164
|
2.0
|
|
$29,120
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.59
|
|
|
$0.68
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$0.59
|
|
|
$0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
41,061
|
|
|
43,136
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
220
|
|
|
428
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
41,281
|
|
|
43,564
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$0.30
|
|
|
$0.25
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
26 WEEKS
ENDED
|
|
26 WEEKS
ENDED
|
|
|
|
AUGUST 4,
2018
|
|
JULY 29,
2017
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$2,490,152
|
100.0
|
|
$2,514,567
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
1,003,377
|
40.3
|
|
1,016,775
|
40.4
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
864,697
|
34.7
|
|
831,126
|
33.1
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
59,025
|
2.4
|
|
57,981
|
2.3
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
79,655
|
3.2
|
|
127,668
|
5.1
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(3,983)
|
(0.2)
|
|
(2,628)
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
657
|
0.0
|
|
(82)
|
(0.0)
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
76,329
|
3.1
|
|
124,958
|
5.0
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
20,926
|
0.8
|
|
44,326
|
1.8
|
|
|
|
|
|
|
|
|
Net
income
|
|
$55,403
|
2.2
|
|
$80,632
|
3.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$1.33
|
|
|
$1.84
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$1.33
|
|
|
$1.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
41,587
|
|
|
43,749
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
106
|
|
|
373
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
41,693
|
|
|
44,122
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$0.60
|
|
|
$0.50
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
|
|
AUGUST 4,
2018
|
|
JULY 29,
2017
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities
|
|
$13,675
|
|
$14,508
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(105,989)
|
|
(29,681)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by financing activities
|
|
85,941
|
|
5,451
|
|
|
|
|
|
|
|
|
|
|
Decrease in cash
and cash equivalents
|
|
(6,373)
|
|
(9,722)
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
64,830
|
|
65,731
|
|
|
|
|
|
|
|
|
|
|
|
End of
period
|
|
$58,457
|
|
$56,009
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
26 WEEKS
ENDED
|
|
26 WEEKS
ENDED
|
|
|
|
|
|
AUGUST 4,
2018
|
|
JULY 29,
2017
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities
|
|
$110,560
|
|
$99,962
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(171,426)
|
|
(51,691)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) financing activities
|
|
68,147
|
|
(43,426)
|
|
|
|
|
|
|
|
|
|
|
Increase in cash
and cash equivalents
|
|
7,281
|
|
4,845
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
51,176
|
|
51,164
|
|
|
|
|
|
|
|
|
|
|
|
End of
period
|
|
$58,457
|
|
$56,009
|
|
|
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, operating
profit, operating profit rate, income tax expense (benefit),
effective income tax rate, net income, and diluted earnings per
share for the year-to-date 2018, third quarter of 2017, fourth
quarter of 2017 and the full year 2017 (GAAP financial measures) to
adjusted selling and administrative expenses, adjusted selling and
administrative expense rate, adjusted operating profit, adjusted
operating profit rate, adjusted income tax expense (benefit),
adjusted effective income tax rate, adjusted net income, and
adjusted diluted earnings per share (non-GAAP financial
measures).
Year-to-date
2018 - Twenty-six weeks ended August 4, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude CEO
retirement costs
|
|
Adjustment
to
exclude
shareholder
litigation matter
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
864,697
|
|
$
(7,018)
|
|
$
(3,500)
|
|
$
854,179
|
Selling and
administrative expense rate
|
34.7%
|
|
(0.3%)
|
|
(0.1%)
|
|
34.3%
|
Operating
profit
|
|
79,655
|
|
7,018
|
|
3,500
|
|
90,173
|
Operating
profit rate
|
|
3.2%
|
|
0.3%
|
|
0.1%
|
|
3.6%
|
Income tax
expense
|
|
20,926
|
|
895
|
|
879
|
|
22,700
|
Effective
income tax rate
|
|
27.4%
|
|
(1.0%)
|
|
(0.3%)
|
|
26.1%
|
Net
income
|
|
55,403
|
|
6,123
|
|
2,621
|
|
64,147
|
Diluted
earnings per share
|
|
$
1.33
|
|
$
0.15
|
|
$
0.06
|
|
$
1.54
|
The above adjusted selling and administrative expenses, adjusted
selling and administrative expense 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) the costs associated with the retirement
of our former CEO of $7,018
($6,123, net of tax); and (2) a
pretax charge related to the settlement in principle of shareholder
litigation matters of $3,500
($2,621, net of tax).
Third
quarter of 2017 - Thirteen weeks ended October 28,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude insurance
recoveries
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
408,314
|
|
$
3,000
|
|
$
411,314
|
Selling and
administrative expense rate
|
36.8%
|
|
0.3%
|
|
37.1%
|
Operating
profit
|
|
5,804
|
|
(3,000)
|
|
2,804
|
Operating
profit rate
|
|
0.5%
|
|
(0.3%)
|
|
0.3%
|
Income tax
benefit
|
|
(240)
|
|
(1,149)
|
|
(1,389)
|
Effective
income tax rate
|
|
(5.8%)
|
|
(116.9%)
|
|
(122.7%)
|
Net
income
|
|
4,372
|
|
(1,851)
|
|
2,521
|
Diluted
earnings per share
|
|
$
0.10
|
|
$
(0.04)
|
|
$
0.06
|
The above adjusted selling and administrative expenses, adjusted
selling and administrative expense rate, adjusted operating profit,
adjusted operating profit rate, adjusted income tax benefit,
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 pretax gain on insurance recoveries associated with
merchandise-related legal matters of $3,000 ($1,851, net
of tax).
Fourth
quarter of 2017 - Fourteen weeks ended February 3,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Impact on
deferred
taxes resulting
from U.S. tax
reform
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
484,556
|
|
$
-
|
|
$
484,556
|
Selling and
administrative expense rate
|
29.5%
|
|
-
|
|
29.5%
|
Operating
profit
|
|
167,881
|
|
-
|
|
167,881
|
Operating
profit rate
|
|
10.2%
|
|
-
|
|
10.2%
|
Income tax
expense
|
|
61,436
|
|
(4,517)
|
|
56,919
|
Effective
income tax rate
|
|
37.0%
|
|
(2.7%)
|
|
34.2%
|
Net
income
|
|
104,828
|
|
4,517
|
|
109,345
|
Diluted
earnings per share
|
|
$
2.46
|
|
$
0.11
|
|
$
2.57
|
The above adjusted selling and administrative expenses, adjusted
selling and administrative expense 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") the impact to deferred taxes resulting from the U.S. Tax
Cuts and Jobs Act of 2017 of $4,517.
Full Year
2017 - Fifty-three weeks ended February 3,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude gain on
insurance
recoveries
|
|
Impact on
deferred
taxes resulting
from U.S. tax
reform
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
1,723,996
|
|
$
3,000
|
|
$
-
|
|
$
1,726,996
|
Selling and
administrative expense rate
|
32.7%
|
|
0.1%
|
|
-
|
|
32.8%
|
Operating
profit
|
|
301,353
|
|
(3,000)
|
|
-
|
|
298,353
|
Operating
profit rate
|
|
5.7%
|
|
(0.1%)
|
|
-
|
|
5.7%
|
Income tax
expense
|
|
105,522
|
|
(1,149)
|
|
(4,517)
|
|
99,856
|
Effective
income tax rate
|
|
35.7%
|
|
(0.0%)
|
|
(1.5%)
|
|
34.2%
|
Net
income
|
|
189,832
|
|
(1,851)
|
|
4,517
|
|
192,498
|
Diluted
earnings per share
|
|
$
4.38
|
|
$
(0.04)
|
|
$
0.10
|
|
$
4.45
|
The above adjusted selling and administrative expenses, adjusted
selling and administrative expense 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) a pretax gain on insurance recoveries
associated with merchandise-related legal matters of $3,000 ($1,851, net
of tax); and (2) the impact to deferred taxes resulting from the
U.S. Tax Cuts and Jobs Act of 2017 of $4,517.
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.