COLUMBUS, Ohio, March 8, 2019 /PRNewswire/ -- Big Lots, Inc.
(NYSE: BIG) today reported income of $108.0
million, or $2.68 per diluted
share, for the fourth quarter of fiscal 2018 ended February 2, 2019. This result exceeds our
previously communicated guidance of income of $2.20 to $2.40 per
diluted share, and compares favorably to adjusted income of
$109.3 million, or $2.57 per diluted share (a reconciliation of all
non-GAAP amounts to the most comparable GAAP amounts is provided
later in this release), for the fourth quarter of fiscal 2017. As a
reminder, the fourth quarter of fiscal 2017 included an extra week
of operations as compared to the fourth quarter of fiscal 2018 due
to a shift in the retail calendar. We estimate the impact of the
extra week was approximately $0.09
per diluted share in fiscal 2017.
Comparable store sales increased 3.1% for the fourth quarter of
fiscal 2018, compared to our guidance of flat to an increase of 2%.
Net sales for the fourth quarter of fiscal 2018 were $1,598.6 million compared to $1,640.6 million for the same period last year as
our increase in comparable stores sales for the fourth quarter of
fiscal 2018 was more than offset by a lower store count
year-over-year and the extra week of operations in fiscal 2017.
Commenting on today's announcement, Bruce Thorn, President and CEO of Big Lots
stated, "After a slow start to the quarter, we experienced
meaningful sales acceleration in December and January driving Q4
sales and earnings above the high end of our guidance. Our
holiday plans were well executed and led to broad based growth
across the majority of our merchandise categories and a comp store
sales increase in excess of 3% for the second consecutive
quarter. Our merchandise category results were supplemented
by continued strong performance in our store of the future remodel
efforts and our marketing and stores' focus on growth of our
Rewards loyalty program."
Mr. Thorn continued, "I am particularly proud of the team's
focus to deliver the all-important fourth quarter while also
undertaking a strategic review of our competitive positioning and
our opportunities for long-term, profitable sales growth. As
mentioned on our December earnings call, we've engaged an industry
leading consultative firm to help us take an outside in view of our
business and there was significant progress and learnings achieved
during the quarter. I look forward to sharing an update on
this topic on our earnings call later this morning, and future
updates in the months and quarters ahead."
FOURTH QUARTER HIGHLIGHTS
- Income of $2.68 per diluted
share compared to last year's adjusted income of $2.57 per diluted share (non-GAAP), exceeding our
previously communicated guidance of $2.20 to $2.40 per
diluted share
- Comparable store sales increase 3.1%, exceeding our
previously communicated guidance of flat to +2%
|
Earnings per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2018
|
|
Q4 2017
|
|
FY 2018
|
|
FY 2017
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted
share
|
|
$2.68
|
|
$2.46
|
|
$3.83
|
|
$4.38
|
|
Impact of CEO
retirement (1)
|
|
-
|
|
-
|
|
$0.15
|
|
-
|
|
Impact of settlement
of shareholder litigation matters (1)
|
-
|
|
-
|
|
$0.06
|
|
-
|
|
Impact of write down
of deferred tax assets (1)
|
|
-
|
|
$0.11
|
|
-
|
|
$0.10
|
|
Impact of gain from
insurance recoveries (1)
|
|
-
|
|
-
|
|
-
|
|
($0.04)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted
share - adjusted basis
|
|
$2.68
|
|
$2.57
|
|
$4.04
|
|
$4.45
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP
detailed reconciliation provided in our statements
below.
|
FISCAL 2018 HIGHLIGHTS
- Adjusted income of $4.04 per
diluted share (non-GAAP), compared to fiscal 2017 adjusted income
of $4.45 per diluted share
(non-GAAP)
- Comparable store sales increase 1.2%
- Returned $151 million of cash
to shareholders in the form of dividends and share
repurchases
FISCAL 2018
For fiscal 2018, income totaled $156.9
million, or $3.83 per diluted
share. Excluding non-recurring expenses associated with the
retirement of our former CEO and the settlement of shareholder
litigation matters reported in the first quarter of fiscal 2018,
adjusted income for the full year period ended February 2, 2019, totaled $165.6 million, or $4.04 per diluted share (non-GAAP), compared to
adjusted income of $192.5 million, or
$4.45 per diluted share (non-GAAP),
for fiscal 2017.
Comparable store sales increased 1.2% for fiscal 2018. Net sales
for fiscal 2018 were $5,238.1 million
compared to $5,264.4 million with the
decrease resulting from a lower store count year-over-year and the
extra week of operations in fiscal 2017, partially offset by the
1.2% comparable store sales increase.
Inventory and Cash Management
Inventory ended fiscal 2018 at $970
million, compared to $873
million for fiscal 2017, with the increase largely
attributed to the strategic decision to deliver certain imported
merchandise earlier than normal to minimize the risk associated
with potential, incremental tariff related costs. This growth
was partially offset by a lower store count year-over-year.
We ended fiscal 2018 with $46
million of Cash and Cash Equivalents and $374 million of borrowings under our credit
facility compared to $51 million of
Cash and Cash Equivalents and $200
million of borrowings under our credit facility as of the
end of fiscal 2017.
Total Cash Returned To Shareholders
For fiscal 2018, we returned $151
million of cash to shareholders in the form of quarterly
dividend payments totaling $51
million and share repurchases totaling $100 million.
FISCAL 2019 GUIDANCE
- Forecasting fiscal 2019 adjusted income in the range of
$3.55 to $3.75 per diluted share (non-GAAP) compared to
fiscal 2018 adjusted income of $4.04
per diluted share (non-GAAP)
- Forecasting comparable store sales to increase in the low
single digit range
- Forecasting cash flow (cash provided by operating activities
less capital expenditures) of approximately $95 to $105
million
- Forecasting cash returned to shareholders of approximately
$100 million, including share
repurchases and quarterly dividend payments
We estimate fiscal 2019 adjusted income will be in the range of
$3.55 to $3.75 per diluted share (non-GAAP), compared to
adjusted income of $4.04 per diluted
share (non-GAAP) for fiscal 2018. This guidance is based on a
comparable store sales increase in the low single digit range and a
total sales increase in the low singles. We estimate this financial
performance will result in cash flow of approximately $95 to $105
million.
On March 6, 2019, our Board of
Directors approved a share repurchase program ("2019 Share
Repurchase Program") providing for the repurchase of up to
$50 million of our common shares. The
$50 million authorization is expected
to be utilized to repurchase shares in the open market and/or in
privately negotiated transactions at our discretion, subject to
market conditions and other factors. Common shares acquired through
the 2019 Share Repurchase Program will be available to meet
obligations under equity compensation plans and for general
corporate purposes. The 2019 Share Repurchase Program is eligible
to begin on March 11, 2019 and will
continue until exhausted.
As announced in a separate press release earlier today, on
March 6, 2019, our Board of Directors
declared a quarterly cash dividend for the first quarter of fiscal
2019 of $0.30 per common share. This
dividend is payable on April 5, 2019,
to shareholders of record as of the close of business on
March 22, 2019.
Fiscal Q1 2019 Guidance
For the first quarter of fiscal 2019, we estimate adjusted
income in the range of $0.65 to
$0.75 per diluted share (non-GAAP)
compared to last year's adjusted income of $0.95 per diluted share. This guidance assumes a
comparable store sales increase in the low single digit range.
|
|
Q1
|
|
Full Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Guidance
(1)
|
|
2018
(2)
|
|
2019 Guidance
(1)
|
|
2018
(2)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per diluted
share - adjusted
|
|
$0.65 -
$0.75
|
|
$0.95
|
|
$3.55 -
$3.75
|
|
$4.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes
potential costs associated with strategy review and
implementation.
|
(2) Non-GAAP
detailed reconciliation provided below.
|
Conference Call/Webcast
We will host a conference call today at 8:00 a.m. to discuss our financial results for
the fourth quarter of fiscal 2018 and provide commentary on our
outlook for fiscal 2019. 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 after 12:00 noon
today and will remain available through midnight on Friday, March 22, 2019. A replay of this call
will also be available beginning today at 12:00 noon through
March 22 by dialing 1.888.203.1112
(Toll Free USA and Canada) or 1.719.457.0820 (International) and
entering Replay Passcode 8047456. All times are Eastern Time.
Headquartered in Columbus,
Ohio, Big Lots, Inc. (NYSE: BIG) is a community retailer
operating 1,401 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)
|
|
|
|
|
|
|
|
|
|
|
|
FEBRUARY
2
|
|
FEBRUARY
3
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
(Unaudited)
|
|
(Recast)
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$46,034
|
|
$51,176
|
|
|
|
Inventories
|
|
969,561
|
|
872,790
|
|
|
|
Other current
assets
|
|
112,408
|
|
98,007
|
|
|
|
Total
current assets
|
|
1,128,003
|
|
1,021,973
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment - net
|
|
822,338
|
|
565,977
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
8,633
|
|
13,986
|
|
|
Other
assets
|
|
64,373
|
|
49,790
|
|
|
|
|
|
$2,023,347
|
|
$1,651,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$396,903
|
|
$351,226
|
|
|
|
Property, payroll
and other taxes
|
|
75,317
|
|
80,863
|
|
|
|
Accrued operating
expenses
|
|
99,422
|
|
72,013
|
|
|
|
Insurance
reserves
|
|
38,883
|
|
38,517
|
|
|
|
Accrued salaries
and wages
|
|
26,798
|
|
39,321
|
|
|
|
Income taxes
payable
|
|
1,237
|
|
7,668
|
|
|
|
Total
current liabilities
|
|
638,560
|
|
589,608
|
|
|
|
|
|
|
|
|
|
|
Long-term
obligations under bank credit facility
|
|
374,100
|
|
199,800
|
|
|
|
|
|
|
|
|
|
|
Deferred
rent
|
|
60,700
|
|
58,246
|
|
|
Insurance
reserves
|
|
54,507
|
|
55,015
|
|
|
Unrecognized tax
benefits
|
|
14,189
|
|
14,929
|
|
|
Synthetic lease
obligation
|
|
144,477
|
|
15,606
|
|
|
Other
liabilities
|
|
43,773
|
|
48,935
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
693,041
|
|
669,587
|
|
|
|
|
|
$2,023,347
|
|
$1,651,726
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
14 WEEKS
ENDED
|
|
|
|
FEBRUARY 2,
2019
|
|
FEBRUARY 3,
2018
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$1,598,551
|
100.0
|
|
$1,640,611
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
659,344
|
41.2
|
|
682,041
|
41.6
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
476,893
|
29.8
|
|
484,556
|
29.5
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
34,034
|
2.1
|
|
29,604
|
1.8
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
148,417
|
9.3
|
|
167,881
|
10.2
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(3,217)
|
(0.2)
|
|
(2,006)
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
(1,274)
|
(0.1)
|
|
389
|
0.0
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
143,926
|
9.0
|
|
166,264
|
10.1
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
35,879
|
2.2
|
|
61,436
|
3.7
|
|
|
|
|
|
|
|
|
Net
income
|
|
$108,047
|
6.8
|
|
$104,828
|
6.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$2.70
|
|
|
$2.50
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$2.68
|
|
|
$2.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
40,043
|
|
|
41,878
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
318
|
|
|
723
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
40,361
|
|
|
42,601
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
52 WEEKS
ENDED
|
|
53 WEEKS
ENDED
|
|
|
|
FEBRUARY 2,
2019
|
|
FEBRUARY 3,
2018
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$5,238,105
|
100.0
|
|
$5,264,362
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
2,121,895
|
40.5
|
|
2,142,442
|
40.7
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
1,778,416
|
34.0
|
|
1,723,996
|
32.7
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
124,970
|
2.4
|
|
117,093
|
2.2
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
218,509
|
4.2
|
|
301,353
|
5.7
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(10,338)
|
(0.2)
|
|
(6,711)
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
(558)
|
(0.0)
|
|
712
|
0.0
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
207,613
|
4.0
|
|
295,354
|
5.6
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
50,719
|
1.0
|
|
105,522
|
2.0
|
|
|
|
|
|
|
|
|
Net
income
|
|
$156,894
|
3.0
|
|
$189,832
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$3.84
|
|
|
$4.43
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$3.83
|
|
|
$4.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
40,809
|
|
|
42,818
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
153
|
|
|
482
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
40,962
|
|
|
43,300
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$1.20
|
|
|
$1.00
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
14 WEEKS
ENDED
|
|
|
|
|
|
FEBRUARY 2,
2019
|
|
FEBRUARY 3,
2018
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Net cash
provided by operating activities
|
|
$193,640
|
|
$221,296
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(95,440)
|
|
(63,215)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in financing activities
|
|
(114,104)
|
|
(164,917)
|
|
|
|
|
|
|
|
|
|
|
Decrease in cash
and cash equivalents
|
|
(15,904)
|
|
(6,836)
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
61,938
|
|
58,012
|
|
|
|
End of
period
|
|
$46,034
|
|
$51,176
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
52 WEEKS
ENDED
|
|
53 WEEKS
ENDED
|
|
|
|
|
|
FEBRUARY 2,
2019
|
|
FEBRUARY 3,
2018
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Net cash
provided by operating activities
|
|
$234,060
|
|
$250,368
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(376,473)
|
|
(156,508)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) financing activities
|
|
137,271
|
|
(93,848)
|
|
|
|
|
|
|
|
|
|
|
(Decrease)
increase in cash and cash equivalents
|
|
(5,142)
|
|
12
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
51,176
|
|
51,164
|
|
|
|
End of
period
|
|
$46,034
|
|
$51,176
|
|
|
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, effective income
tax rate, net income, and diluted earnings per share for the full
year 2018, the fourth quarter of 2017, the full year 2017, and the
first quarter of 2018, (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, adjusted
effective income tax rate, adjusted net income, and adjusted
diluted earnings per share (non-GAAP financial measures).
Full Year
2018 - Fifty-two weeks ended February 2, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude CEO
retirement costs
|
|
Adjustment
to
exclude
shareholder
litigation matter
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
1,778,416
|
|
$
(7,018)
|
|
$
(3,500)
|
|
$
1,767,898
|
Selling and
administrative expense rate
|
34.0%
|
|
(0.1%)
|
|
(0.1%)
|
|
33.8%
|
Operating
profit
|
|
218,509
|
|
7,018
|
|
3,500
|
|
229,027
|
Operating
profit rate
|
|
4.2%
|
|
0.1%
|
|
0.1%
|
|
4.4%
|
Income tax
expense
|
|
50,719
|
|
895
|
|
879
|
|
52,493
|
Effective
income tax rate
|
|
24.4%
|
|
(0.4%)
|
|
(0.0%)
|
|
24.1%
|
Net
income
|
|
156,894
|
|
6,123
|
|
2,621
|
|
165,638
|
Diluted
earnings per share
|
|
$
3.83
|
|
$
0.15
|
|
$
0.06
|
|
$
4.04
|
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).
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.
First
quarter of 2018 - Thirteen weeks ended May 5,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude CEO
retirement costs
|
|
Adjustment
to
exclude
shareholder
itigation matter
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
438,092
|
|
$
(7,018)
|
|
$
(3,500)
|
|
$
427,574
|
Selling and
administrative expense rate
|
34.6%
|
|
(0.6%)
|
|
(0.3%)
|
|
33.7%
|
Operating
profit
|
|
45,337
|
|
7,018
|
|
3,500
|
|
55,855
|
Operating
profit rate
|
|
3.6%
|
|
0.6%
|
|
0.3%
|
|
4.4%
|
Income tax
expense
|
|
13,030
|
|
895
|
|
879
|
|
14,804
|
Effective
income tax rate
|
|
29.4%
|
|
(2.1%)
|
|
(0.3%)
|
|
27.0%
|
Net
income
|
|
31,239
|
|
6,123
|
|
2,621
|
|
39,983
|
Diluted
earnings per share
|
|
$
0.74
|
|
$
0.15
|
|
$
0.06
|
|
$
0.95
|
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).
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.