COLUMBUS, Ohio, Dec. 7, 2018 /PRNewswire/ -- Big Lots, Inc.
(NYSE: BIG) today reported a loss of $6.6
million, or $0.16 per share,
for the third quarter of fiscal 2018 ended November 3, 2018. This result compares to our
guidance in the range of income of $0.04 per diluted share to a loss of $0.06 per share, and to last year's third quarter
adjusted income of $2.5 million, or
$0.06 per diluted share (see non-GAAP
table included later in this release). Comparable store sales for
the third quarter of fiscal 2018 increased 3.4% compared to our
guidance of +2% to +4%. Net sales for the third quarter of fiscal
2018 were $1,149.4 million, an
increase of 3.6% compared to $1,109.2
million for the same period last year with the increase in
comparable store sales and a favorable impact from the fiscal
calendar shift partially offset by a lower store count
year-over-year.
Commenting on today's release, Bruce
Thorn, President and Chief Executive Officer of Big Lots,
stated, "In terms of third quarter, we were pleased to achieve our
second consecutive quarter of positive comps, but our bottom line
results fell short of our expectations. While we expect
near-term results to be challenging this holiday season, we have a
strong brand, great people, and we are working swiftly to enhance
our current strategy, identify new growth opportunities, and
position our business for profitable expansion well into the
future."
Mr. Thorn continued, "I'm excited to have recently joined the
Big Lots' family at this point in its journey and I am optimistic
about the future of our Company. In my first 60 days with the
Company, I have invested time with my executive team to better
understand our business and the opportunities, and I have met with
many of our business leaders and associates through roadshows, town
halls, and store and distribution center visits. We have
great people and I have been particularly impressed with their
passion and energy as we prepare to serve Jennifer this holiday
season."
Inventory ended the third quarter of fiscal 2018 at $1,074 million, compared to $1,038 million for the third quarter of fiscal
2017, with the increase in inventory primarily driven by the shift
and timing of our retail calendar compared to last year, partially
offset by a lower store count year over year.
We ended the third quarter of fiscal 2018 with $62 million of Cash and Cash Equivalents and
$488 million of borrowings under our
credit facility compared to $58
million of Cash and Cash Equivalents and $372 million of borrowings under our credit
facility as of the end of the third quarter of fiscal 2017. Cash
flow (cash provided by operating activities less capital
expenditures) over the last 12 months has been focused on investing
in strategic initiatives designed to support future growth, such as
our store of the future remodel program and our California distribution center scheduled to
open in fiscal 2019.
Total Cash Returned To Shareholders
As announced in a separate press release earlier today, on
December 4, 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 December 28, 2018 to shareholders
of record as of the close of business on December 14, 2018. Year to date, approximately
$139 million has been returned to
shareholders in the form of share repurchases and dividend
payments.
FISCAL Q4 2018 GUIDANCE
- Updates Q4 guidance for comparable store sales in the range
of flat to an increase of 2%
- Updates Q4 guidance for income of $2.20 to $2.40 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 $2.20 to
$2.40 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 in the range of flat
to an increase of 2%.
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 $3.55 to $3.75 per diluted share (non-GAAP), compared to
fiscal 2017 adjusted income of $4.45
per diluted share (non-GAAP)
Based on operating results for the first three quarters and our
expectations for the fourth quarter of fiscal 2018 noted above, we
now estimate fiscal 2018 adjusted income in the range of
$3.55 to $3.75 per diluted share (non-GAAP). 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%.
|
|
Full Year
|
|
|
|
|
|
|
|
2018
Guidance
|
|
2017
|
|
|
|
|
|
Earnings per diluted
share - adjusted basis (1)
|
$3.55 -
$3.75
|
|
$4.45
|
|
|
|
|
|
|
|
|
|
|
(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 third 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
webcast, an archive of the call will be available through the
Investor Relations section of our website
http://www.biglots.com/ after 12:00 noon today and will remain
available through midnight on Friday,
December 21, 2018. A replay of this call will also be
available beginning today at 12:00 noon through December 21 by dialing 1.888.203.1112 (Toll Free
USA and Canada) or 1.719.457.0820 (International) and
entering Replay Passcode 3446862. All times are Eastern Time.
Headquartered in Columbus,
Ohio, Big Lots, Inc. (NYSE: BIG) is a community retailer
operating 1,423 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)
|
|
|
|
|
|
|
|
|
|
NOVEMBER
3
|
|
OCTOBER
28
|
|
|
|
2018
|
|
2017
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$61,938
|
|
$58,012
|
|
Inventories
|
|
1,073,885
|
|
1,038,156
|
|
Other current
assets
|
|
141,424
|
|
118,822
|
|
Total
current assets
|
|
1,277,247
|
|
1,214,990
|
|
|
|
|
|
|
Property and
equipment - net
|
|
782,771
|
|
537,563
|
|
|
|
|
|
|
Deferred income
taxes
|
|
22,923
|
|
47,027
|
Other
assets
|
|
50,075
|
|
46,529
|
|
|
|
$2,133,016
|
|
$1,846,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$479,634
|
|
$493,097
|
|
Property, payroll
and other taxes
|
|
85,775
|
|
87,007
|
|
Accrued operating
expenses
|
|
112,458
|
|
77,683
|
|
Insurance
reserves
|
|
38,070
|
|
41,561
|
|
Accrued salaries
and wages
|
|
28,342
|
|
31,563
|
|
Income taxes
payable
|
|
1,295
|
|
865
|
|
Total
current liabilities
|
|
745,574
|
|
731,776
|
|
|
|
|
|
|
Long-term
obligations under bank credit facility
|
|
488,000
|
|
371,900
|
|
|
|
|
|
|
Deferred
rent
|
|
61,054
|
|
56,622
|
Insurance
reserves
|
|
55,769
|
|
56,948
|
Unrecognized tax
benefits
|
|
12,738
|
|
15,732
|
Synthetic lease
obligation
|
|
131,644
|
|
-
|
Other
liabilities
|
|
45,505
|
|
47,467
|
|
|
|
|
|
|
Shareholders'
equity
|
|
592,732
|
|
565,664
|
|
|
|
$2,133,016
|
|
$1,846,109
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
NOVEMBER 3,
2018
|
|
OCTOBER 28,
2017
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$1,149,402
|
100.0
|
|
$1,109,184
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
459,174
|
39.9
|
|
443,626
|
40.0
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
436,826
|
38.0
|
|
408,314
|
36.8
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
31,911
|
2.8
|
|
29,508
|
2.7
|
|
|
|
|
|
|
|
|
Operating (loss)
profit
|
|
(9,563)
|
(0.8)
|
|
5,804
|
0.5
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(3,138)
|
(0.3)
|
|
(2,077)
|
(0.2)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
59
|
0.0
|
|
405
|
0.0
|
|
|
|
|
|
|
|
|
(Loss) income
before income taxes
|
|
(12,642)
|
(1.1)
|
|
4,132
|
0.4
|
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
|
(6,086)
|
(0.5)
|
|
(240)
|
(0.0)
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
($6,556)
|
(0.6)
|
|
$4,372
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
($0.16)
|
|
|
$0.10
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
($0.16)
|
|
|
$0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
40,021
|
|
|
41,967
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
-
|
|
|
557
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
40,021
|
|
|
42,524
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
39 WEEKS
ENDED
|
|
39 WEEKS
ENDED
|
|
|
|
NOVEMBER 3,
2018
|
|
OCTOBER 28,
2017
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$3,639,554
|
100.0
|
|
$3,623,751
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
1,462,551
|
40.2
|
|
1,460,401
|
40.3
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
1,301,523
|
35.8
|
|
1,239,440
|
34.2
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
90,936
|
2.5
|
|
87,489
|
2.4
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
70,092
|
1.9
|
|
133,472
|
3.7
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(7,121)
|
(0.2)
|
|
(4,705)
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
716
|
0.0
|
|
323
|
0.0
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
63,687
|
1.7
|
|
129,090
|
3.6
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
14,840
|
0.4
|
|
44,086
|
1.2
|
|
|
|
|
|
|
|
|
Net
income
|
|
$48,847
|
1.3
|
|
$85,004
|
2.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$1.19
|
|
|
$1.97
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$1.19
|
|
|
$1.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
41,065
|
|
|
43,155
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
138
|
|
|
409
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
41,203
|
|
|
43,564
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$0.90
|
|
|
$0.75
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
|
|
NOVEMBER 3,
2018
|
|
OCTOBER 28,
2017
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in operating activities
|
|
($70,140)
|
|
($70,890)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(109,607)
|
|
(41,602)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by financing activities
|
|
183,228
|
|
114,495
|
|
|
|
|
|
|
|
|
|
|
Increase in cash
and cash equivalents
|
|
3,481
|
|
2,003
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
58,457
|
|
56,009
|
|
|
|
End of
period
|
|
$61,938
|
|
$58,012
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39 WEEKS
ENDED
|
|
39 WEEKS
ENDED
|
|
|
|
|
|
NOVEMBER 3,
2018
|
|
OCTOBER 28,
2017
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities
|
|
$40,420
|
|
$29,072
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(281,033)
|
|
(93,293)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by financing activities
|
|
251,375
|
|
71,069
|
|
|
|
|
|
|
|
|
|
|
Increase in cash
and cash equivalents
|
|
10,762
|
|
6,848
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
51,176
|
|
51,164
|
|
|
|
End of
period
|
|
$61,938
|
|
$58,012
|
|
|
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, the third quarter of 2017, the
year-to-date 2017, the 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 - Thirty-nine weeks ended November 3,
2018
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment to
exclude CEO
retirement costs
|
|
Adjustment to
exclude
shareholder
litigation matter
|
|
As Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
1,301,523
|
|
$
(7,018)
|
|
$
(3,500)
|
|
$
1,291,005
|
Selling and
administrative expense rate
|
35.8%
|
|
(0.2%)
|
|
(0.1%)
|
|
35.5%
|
Operating
profit
|
70,092
|
|
7,018
|
|
3,500
|
|
80,610
|
Operating
profit rate
|
1.9%
|
|
0.2%
|
|
0.1%
|
|
2.2%
|
Income tax
expense
|
14,840
|
|
895
|
|
879
|
|
16,614
|
Effective
income tax rate
|
23.3%
|
|
(0.6%)
|
|
(0.3%)
|
|
22.4%
|
Net
income
|
48,847
|
|
6,123
|
|
2,621
|
|
57,591
|
Diluted
earnings per share
|
$
1.19
|
|
$
0.15
|
|
$
0.06
|
|
$
1.40
|
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") (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 gain on
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 GAAP a pretax gain on insurance recoveries
associated with merchandise-related legal matters of $3,000 ($1,851, net
of tax).
Year-to-date
2017 - Thirty-nine weeks ended October 28,
2017
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment to
exclude gain on
insurance
recoveries
|
|
As Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
1,239,440
|
|
$
3,000
|
|
$
1,242,440
|
Selling and
administrative expense rate
|
34.2%
|
|
0.1%
|
|
34.3%
|
Operating
profit
|
133,472
|
|
(3,000)
|
|
130,472
|
Operating
profit rate
|
3.7%
|
|
(0.1%)
|
|
3.6%
|
Income tax
expense
|
44,086
|
|
(1,149)
|
|
42,937
|
Effective
income tax rate
|
34.2%
|
|
(0.1%)
|
|
34.1%
|
Net
income
|
85,004
|
|
(1,851)
|
|
83,153
|
Diluted
earnings per share
|
$
1.95
|
|
$
(0.04)
|
|
$
1.91
|
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 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 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.