COLUMBUS, Ohio, Aug. 26, 2016 /PRNewswire/ -- Big Lots, Inc.
(NYSE: BIG) today reported income from continuing operations of
$22.7 million, or $0.51 per diluted share, for the second quarter
of fiscal 2016 ended July 30, 2016.
This result includes an after tax expense of $0.6 million, or $0.01 per diluted share, associated with legacy
pension plans which have been terminated. Excluding this expense,
adjusted income from continuing operations totaled $23.4 million, or $0.52 per diluted share (see non-GAAP table
included later in this release), which compares to our guidance of
adjusted income from continuing operations of $0.42 to $0.47 per diluted share (non-GAAP).
Adjusted income from continuing operations for the second quarter
of fiscal 2015 was $21.1 million, or
$0.41 per diluted share (non-GAAP).
Comparable store sales increased 0.3% for the quarter, compared to
our guidance of flat to an increase of 2%. Net sales for the second
quarter of fiscal 2016 decreased 0.5% to $1,203 million, as our comparable store sales
increase was offset by a lower store count compared to last
year.
Commenting on today's release, David
Campisi, Chief Executive Officer and President of Big Lots,
stated, "We are pleased to report comps increased for the 10th
consecutive quarter and our earnings were above the high end of our
guidance range, increasing 27% over Q2 last year. Jennifer is
responding positively to our strategic focus on ownable and
winnable merchandise categories, improved merchandise presentations
and more consistent in-store execution."
SECOND QUARTER HIGHLIGHTS
- Record adjusted income from continuing operations of
$0.52 per diluted share (non-GAAP), a
27% increase compared to adjusted income from continuing operations
of $0.41 per diluted share (non-GAAP)
last year
- Comparable store sales increase of 0.3% was in line with
guidance and represents the 10th consecutive quarter of
growth
|
Earnings per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2016
|
|
Q2 2015
|
|
YTD 2016
|
|
YTD 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$0.51
|
|
$0.35
|
|
$1.31
|
|
$0.95
|
|
|
Impact of legacy
pension costs (1)
|
|
$0.01
|
|
$0.01
|
|
$0.04
|
|
$0.02
|
|
|
Impact of
non-recurring expense (1)
|
|
-
|
|
$0.05
|
|
-
|
|
$0.05
|
|
|
Continuing operations
- adjusted basis (1)
|
|
$0.52
|
|
$0.41
|
|
$1.35
|
|
$1.03
|
|
|
% Change (2016 vs.
2015)
|
|
+27%
|
|
|
|
+31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP
detailed reconciliation provided below.
|
Inventory and Cash Management
Inventory ended the second quarter of fiscal 2016 at
$809 million, a $12 million decrease compared to $821 million for the second quarter of fiscal
2015 as Inventory per store was essentially flat compared to last
year combined with a lower store count year over year.
We ended the second quarter of fiscal 2016 with $58 million of Cash and Cash Equivalents and
$258 million of borrowings under our
credit facility compared to $57
million of Cash and Cash Equivalents and $223 million of borrowings under our credit
facility as of the end of the second quarter of fiscal 2015. Cash
flow (cash provided by operating activities less cash used in
investing activities) was focused on reinvesting in the Company's
strategic initiatives to support long-term sustainable growth and
returning cash to our shareholders through our share repurchase and
dividend efforts.
Total Cash Returned To Shareholders
As a reminder, on March 1, 2016,
our Board of Directors approved a share repurchase program ("2016
Share Repurchase Program") providing for the repurchase of up to
$250 million of our common shares.
During the second quarter of fiscal 2016, we exhausted the
authorization. In total for the program, we invested $250 million to repurchase 5.6 million shares, or
approximately 11% of the Company's shares outstanding, at an
average price of $44.72 per share.
Common shares acquired through the 2016 Share Repurchase Program
will be available to meet obligations under our equity compensation
plans and for general corporate purposes.
As announced earlier today in a separate press release, on
August 25, 2016, our Board of
Directors declared a quarterly cash dividend of $0.21 per common share. This dividend payment of
approximately $9 million is payable
on September 23, 2016, to
shareholders of record as of the close of business on September 9, 2016.
The combination of share repurchase activity and our quarterly
dividend payments represent approximately $270 million returned to shareholders during the
first half of fiscal 2016.
FISCAL Q3 2016 GUIDANCE
- Provides initial Q3 guidance for continuing operations of an
adjusted loss of $0.04 per share
(non-GAAP) to adjusted income of $0.01 per diluted share (non-GAAP), compared to
an adjusted loss from continuing operations of $0.00 per diluted share (non-GAAP) for the same
period last year
- Provides initial Q3 guidance for comparable store sales in
the range of flattish to +2%
For the third quarter of fiscal 2016, we estimate continuing
operations will be in the range of an adjusted loss of $0.04 per share (non-GAAP) to adjusted income of
$0.01 per diluted share (non-GAAP),
compared to an adjusted loss from continuing operations of
$0.00 per diluted share (non-GAAP)
for the third quarter of fiscal 2015. This guidance is based on
estimated comparable store sales in the range of flattish to +2%
compared to a 2.6% comparable store sales increase in Q3 of fiscal
2015.
FISCAL Q4 2016 GUIDANCE
- Provides initial Q4 guidance for adjusted income from
continuing operations in the range of $2.18
to $2.23 per diluted share (non-GAAP), compared to adjusted
income from continuing operations of $2.01 per diluted share (non-GAAP) for the same
period last year
- Provides initial Q4 guidance for comparable store sales in
the range of flattish to +2%
For the fourth quarter of fiscal 2016, we estimate adjusted
income from continuing operations will be in the range of
$2.18 to $2.23 per diluted share
(non-GAAP), compared to adjusted income from continuing operations
of $2.01 per diluted share (non-GAAP)
for the fourth quarter of fiscal 2015. This guidance is based on
estimated comparable store sales in the range of flattish to +2%
compared to a 0.7% comparable store sales increase in Q4 of fiscal
2015.
FISCAL 2016 GUIDANCE
- Increases guidance for fiscal 2016 adjusted income from
continuing operations to be in the range of $3.45 to $3.55 per diluted share (non-GAAP),
representing a 15% to 18% increase compared to fiscal 2015 adjusted
income from continuing operations of $3.01 per diluted share (non-GAAP)
- Updates guidance for fiscal 2016 comparable store sales
increase in the range of 1% to 2%
- Increases guidance for fiscal 2016 cash flow to $210 million
Based on operating results for the first two quarters and our
expectations for the third and fourth quarters of fiscal 2016 noted
above, we now estimate fiscal 2016 adjusted income from continuing
operations to be in the range of $3.45 to
$3.55 per diluted share (non-GAAP), compared to our previous
guidance of $3.35 to $3.50 per
diluted share. This compares to adjusted income from continuing
operations of $3.01 per diluted share
(non-GAAP) for fiscal 2015. This outlook is based on a comparable
store sales increase in the range of +1% to +2% and total sales up
slightly. We estimate this financial performance will result in
cash flow of approximately $210
million.
|
|
Full Year
|
|
|
|
|
|
|
|
2016 Guidance
(1)
|
|
2015
(2)
|
|
|
|
|
|
Adjusted EPS from
continuing operations
|
|
$3.45 to
$3.55
|
|
$3.01
|
% Change (2016 vs.
2015)
|
|
+15%
to +18%
|
|
|
|
|
|
|
|
(1) Non-GAAP -
excludes potential impact of legacy pension costs.
|
|
|
|
|
(2) Non-GAAP - see
attached reconciliation.
|
|
|
|
|
Conference Call/Webcast
We will host a conference call
today at 8:00 a.m. to discuss our
financial results for the second quarter and provide commentary on
our outlook for fiscal 2016. 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
http://www.biglots.com/ after 12:00 noon today and will remain
available through midnight on Friday,
September 9, 2016. A replay of this call will also be
available beginning today at 12:00 noon through September 9 by dialing 1.888.203.1112 (Toll Free
USA and Canada) or 1.719.457.0820 (International), and
entering Replay Passcode 224796. All times are Eastern Time.
Headquartered in Columbus,
Ohio, Big Lots, Inc. (NYSE: BIG) is a unique,
non-traditional, discount retailer operating 1,445 BIG LOTS stores
in 47 states with product assortments in the merchandise categories
of Food, Consumables, Furniture, Seasonal, Soft Home, Hard Home,
and Electronics & Accessories. Our vision is to be recognized
for providing an outstanding 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)
|
|
|
|
|
|
|
|
|
|
|
|
JULY
30
|
|
AUGUST
1
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
(Unaudited)
|
|
(Recast)
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$58,369
|
|
$57,363
|
|
|
|
Inventories
|
|
808,631
|
|
821,444
|
|
|
|
Other current
assets
|
|
110,043
|
|
106,236
|
|
|
|
Total
current assets
|
|
977,043
|
|
985,043
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment - net
|
|
545,271
|
|
578,802
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
59,380
|
|
59,659
|
|
|
Other
assets
|
|
42,966
|
|
40,859
|
|
|
|
|
|
$1,624,660
|
|
$1,664,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$385,633
|
|
$365,640
|
|
|
|
Property, payroll
and other taxes
|
|
84,060
|
|
79,140
|
|
|
|
Accrued operating
expenses
|
|
76,799
|
|
72,593
|
|
|
|
Insurance
reserves
|
|
43,265
|
|
41,282
|
|
|
|
Accrued salaries
and wages
|
|
54,580
|
|
34,955
|
|
|
|
Income taxes
payable
|
|
1,418
|
|
1,244
|
|
|
|
Total
current liabilities
|
|
645,755
|
|
594,854
|
|
|
|
|
|
|
|
|
|
|
Long-term
obligations under bank credit facility
|
|
257,900
|
|
223,200
|
|
|
|
|
|
|
|
|
|
|
Deferred
rent
|
|
58,138
|
|
64,387
|
|
|
Insurance
reserves
|
|
58,242
|
|
56,485
|
|
|
Unrecognized tax
benefits
|
|
14,905
|
|
18,020
|
|
|
Other
liabilities
|
|
46,222
|
|
66,885
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
543,498
|
|
640,532
|
|
|
|
|
|
$1,624,660
|
|
$1,664,363
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
JULY 30,
2016
|
|
AUGUST 1,
2015
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$1,203,155
|
100.0
|
|
$1,209,686
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
486,423
|
40.4
|
|
475,834
|
39.3
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
416,740
|
34.6
|
|
414,305
|
34.2
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
30,757
|
2.6
|
|
30,992
|
2.6
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
38,926
|
3.2
|
|
30,537
|
2.5
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(1,494)
|
(0.1)
|
|
(969)
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
(377)
|
(0.0)
|
|
(1,742)
|
(0.1)
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
37,055
|
3.1
|
|
27,826
|
2.3
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
14,318
|
1.2
|
|
10,115
|
0.8
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
22,737
|
1.9
|
|
17,711
|
1.5
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations, net of tax
|
|
|
|
|
|
|
|
benefit of $13 and $48, respectively
|
|
(22)
|
(0.0)
|
|
(75)
|
(0.0)
|
|
|
|
|
|
|
|
|
Net
income
|
|
$22,715
|
1.9
|
|
$17,636
|
1.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share - basic (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$0.51
|
|
|
$0.35
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
(0.00)
|
|
|
(0.00)
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$0.51
|
|
|
$0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share - diluted (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$0.51
|
|
|
$0.35
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
(0.00)
|
|
|
(0.00)
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$0.50
|
|
|
$0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
44,402
|
|
|
50,831
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
612
|
|
|
505
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
45,014
|
|
|
51,336
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$0.21
|
|
|
$0.19
|
|
|
|
|
|
|
|
|
|
(a)
|
The earnings per
share for Continuing Operations, Discontinued Operations and Net
Income are separately calculated in accordance with accounting
pronouncements; therefore, the sum of earnings per share for
Continuing Operations and Discontinued Operations may differ, due
to rounding, from the calculated earnings per share of Net
Income.
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
26 WEEKS
ENDED
|
|
26 WEEKS
ENDED
|
|
|
|
JULY 30,
2016
|
|
AUGUST 1,
2015
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$2,515,730
|
100.0
|
|
$2,490,141
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
1,004,104
|
39.9
|
|
979,950
|
39.4
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
842,152
|
33.5
|
|
834,551
|
33.5
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
60,456
|
2.4
|
|
62,217
|
2.5
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
101,496
|
4.0
|
|
83,182
|
3.3
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(2,128)
|
(0.1)
|
|
(1,465)
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
302
|
0.0
|
|
(1,714)
|
(0.1)
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
99,670
|
4.0
|
|
80,003
|
3.2
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
38,320
|
1.5
|
|
29,984
|
1.2
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
61,350
|
2.4
|
|
50,019
|
2.0
|
|
|
|
|
|
|
|
|
|
Income (loss) from
discontinued operations, net of tax
|
|
|
|
|
|
|
|
(expense) benefit of ($15) and $108, respectively
|
|
24
|
0.0
|
|
(170)
|
(0.0)
|
|
|
|
|
|
|
|
|
Net
income
|
|
$61,374
|
2.4
|
|
$49,849
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share - basic (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$1.32
|
|
|
$0.96
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
0.00
|
|
|
(0.00)
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$1.32
|
|
|
$0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share - diluted (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$1.31
|
|
|
$0.95
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
0.00
|
|
|
(0.00)
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$1.31
|
|
|
$0.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
46,434
|
|
|
51,959
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
494
|
|
|
536
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
46,928
|
|
|
52,495
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$0.42
|
|
|
$0.38
|
|
|
|
|
|
|
|
|
|
(a)
|
The earnings per
share for Continuing Operations, Discontinued Operations and Net
Income are separately calculated in accordance with accounting
pronouncements; therefore, the sum of earnings per share for
Continuing Operations and Discontinued Operations may differ, due
to rounding, from the calculated earnings per share of Net
Income.
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
|
|
JULY 30,
2016
|
|
AUGUST 1,
2015
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Net cash
provided by operating activities
|
|
$32,889
|
|
$29,138
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(26,278)
|
|
(35,550)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in financing activities
|
|
(12,632)
|
|
(3,416)
|
|
|
|
|
|
|
|
|
|
|
Decrease in cash
and cash equivalents
|
|
(6,021)
|
|
(9,828)
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
64,390
|
|
67,191
|
|
|
|
End of
period
|
|
$58,369
|
|
$57,363
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
26 WEEKS
ENDED
|
|
26 WEEKS
ENDED
|
|
|
|
|
|
JULY 30,
2016
|
|
AUGUST 1,
2015
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Net cash
provided by operating activities
|
|
$111,500
|
|
$116,663
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(45,030)
|
|
(64,302)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in financing activities
|
|
(62,245)
|
|
(47,259)
|
|
|
|
|
|
|
|
|
|
|
Increase in cash
and cash equivalents
|
|
4,225
|
|
5,102
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
54,144
|
|
52,261
|
|
|
|
End of
period
|
|
$58,369
|
|
$57,363
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
|
|
The following tables
reconcile: (1) selling and administrative expenses, selling and
administrative expense rate, operating profit, operating profit
rate, income tax expense, effective income tax rate, income from
continuing operations, net income, diluted earnings per share from
continuing operations, and diluted earnings per share for the
second quarter of 2016, the year-to-date 2016, the second quarter
of 2015, the year-to-date 2015, the third quarter of 2015, the
fourth quarter of 2015, and the full year 2015 (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 income from continuing
operations, adjusted net income, adjusted diluted earnings per
share from continuing operations, and adjusted diluted earnings per
share (non-GAAP financial measures).
|
|
Second
quarter of 2016 - Thirteen weeks ended July 30,
2016
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude pension
costs
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
416,740
|
|
$
(1,070)
|
|
$
415,670
|
Selling and
administrative expense rate
|
34.6%
|
|
(0.1%)
|
|
34.5%
|
Operating
profit
|
38,926
|
|
1,070
|
|
39,996
|
Operating
profit rate
|
3.2%
|
|
0.1%
|
|
3.3%
|
Income tax
expense
|
14,318
|
|
424
|
|
14,742
|
Effective
income tax rate
|
38.6%
|
|
0.0%
|
|
38.7%
|
Income from
continuing operations
|
22,737
|
|
646
|
|
23,383
|
Net
income
|
22,715
|
|
646
|
|
23,361
|
Diluted
earnings per share from
|
|
|
|
|
|
continuing
operations
|
$
0.51
|
|
$
0.01
|
|
$
0.52
|
Diluted
earnings per share
|
$
0.50
|
|
$
0.01
|
|
$
0.52
|
|
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 income from continuing
operations, adjusted net income, adjusted diluted earnings per
share from continuing operations, 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") all
costs associated with the Company's pension plans, as the Company
froze benefits and began termination activities for its pension
plans in 2015 with the intentions of completing the termination and
distributing all plan assets during 2016, which totaled $1,070
($646, net of tax). The pension costs encompass all items
associated with net periodic benefit costs, including curtailment
and settlement charges, and professional fees associated with the
plan and plan termination proceedings.
|
|
Year-to-date
2016 - Twenty-six weeks ended July 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude pension
costs
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
842,152
|
|
$
(3,210)
|
|
$
838,942
|
Selling and
administrative expense rate
|
33.5%
|
|
(0.1%)
|
|
33.3%
|
Operating
profit
|
101,496
|
|
3,210
|
|
104,706
|
Operating
profit rate
|
4.0%
|
|
0.1%
|
|
4.2%
|
Income tax
expense
|
38,320
|
|
1,270
|
|
39,590
|
Effective
income tax rate
|
38.4%
|
|
0.0%
|
|
38.5%
|
Income from
continuing operations
|
61,350
|
|
1,940
|
|
63,290
|
Net
income
|
61,374
|
|
1,940
|
|
63,314
|
Diluted
earnings per share from
|
|
|
|
|
|
continuing
operations
|
$
1.31
|
|
$
0.04
|
|
$
1.35
|
Diluted
earnings per share
|
$
1.31
|
|
$
0.04
|
|
$
1.35
|
|
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 income from continuing
operations, adjusted net income, adjusted diluted earnings per
share from continuing operations, 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 all costs
associated with the Company's pension plans, as the Company froze
benefits and began termination activities for its pension plans in
2015 with the intentions of completing the termination and
distributing all plan assets during 2016, which totaled $3,210
($1,940, net of tax). The pension costs encompass all items
associated with net periodic benefit costs, including curtailment
and settlement charges, and professional fees associated with the
plan and plan termination proceedings.
|
Second
quarter of 2015 - Thirteen weeks ended August 1,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude loss
contingency
|
Adjustment
to
exclude pension
costs
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
414,305
|
|
$
(4,487)
|
$
(1,058)
|
|
$
408,760
|
Selling and
administrative expense rate
|
34.2%
|
|
(0.4%)
|
(0.1%)
|
|
33.8%
|
Operating
profit
|
30,537
|
|
4,487
|
1,058
|
|
36,082
|
Operating
profit rate
|
2.5%
|
|
0.4%
|
0.1%
|
|
3.0%
|
Income tax
expense
|
10,115
|
|
1,776
|
417
|
|
12,308
|
Effective
income tax rate
|
36.4%
|
|
0.4%
|
0.1%
|
|
36.9%
|
Income from
continuing operations
|
17,711
|
|
2,711
|
641
|
|
21,063
|
Net
income
|
17,636
|
|
2,711
|
641
|
|
20,988
|
Diluted
earnings per share from
|
|
|
|
|
|
|
continuing
operations
|
$
0.35
|
|
$
0.05
|
$
0.01
|
|
$
0.41
|
Diluted
earnings per share
|
$
0.34
|
|
$
0.05
|
$
0.01
|
|
$
0.41
|
|
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 income from continuing
operations, adjusted net income, adjusted diluted earnings per
share from continuing operations, 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
accrual of a loss contingency associated with merchandise-related
legal matters of $4,487 ($2,711, net of tax); and (2) all costs
associated with the Company's pension plans, as the Company froze
benefits and began termination activities for its pension plans in
2015 with the intentions of completing the termination and
distributing all plan assets during 2016, which totaled $1,058
($641, net of tax). The pension costs encompass all items
associated with net periodic benefit costs, including curtailment
and settlement charges, and professional fees associated with the
plan and plan termination proceedings.
|
|
Year-to-date
2015 - Twenty-six weeks ended August 1, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude loss
contingency
|
Adjustment
to
exclude pension
costs
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
834,551
|
|
$
(4,487)
|
$
(2,125)
|
|
$
827,939
|
Selling and
administrative expense rate
|
33.5%
|
|
(0.2%)
|
(0.1%)
|
|
33.2%
|
Operating
profit
|
83,182
|
|
4,487
|
2,125
|
|
89,794
|
Operating
profit rate
|
3.3%
|
|
0.2%
|
0.1%
|
|
3.6%
|
Income tax
expense
|
29,984
|
|
1,776
|
836
|
|
32,596
|
Effective
income tax rate
|
37.5%
|
|
0.1%
|
0.0%
|
|
37.6%
|
Income from
continuing operations
|
50,019
|
|
2,711
|
1,289
|
|
54,019
|
Net
income
|
49,849
|
|
2,711
|
1,289
|
|
53,849
|
Diluted
earnings per share from
|
|
|
|
|
|
|
continuing
operations
|
$
0.95
|
|
$
0.05
|
$
0.02
|
|
$
1.03
|
Diluted
earnings per share
|
$
0.95
|
|
$
0.05
|
$
0.02
|
|
$
1.03
|
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 income from continuing
operations, adjusted net income, adjusted diluted earnings per
share from continuing operations, 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
accrual of a loss contingency associated with merchandise-related
legal matters of $4,487 ($2,711, net of tax); and (2) all costs
associated with the Company's pension plans, as the Company froze
benefits and began termination activities for its pension plans in
2015 with the intentions of completing the termination and
distributing all plan assets during 2016, which totaled $2,125
($1,289, net of tax). The pension costs encompass all items
associated with net periodic benefit costs, including curtailment
and settlement charges, and professional fees associated with the
plan and plan termination proceedings.
|
|
Third
quarter of 2015 - Thirteen weeks ended October 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude pension
costs
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
411,994
|
|
$
(2,560)
|
|
$
409,434
|
Selling and
administrative expense rate
|
36.9%
|
|
(0.2%)
|
|
36.7%
|
Operating
(loss) profit
|
(2,158)
|
|
2,560
|
|
402
|
Operating
(loss) profit rate
|
(0.2%)
|
|
0.2%
|
|
0.0%
|
Income tax
benefit
|
(2,400)
|
|
1,012
|
|
(1,388)
|
Effective
income tax rate
|
58.5%
|
|
31.5%
|
|
90.0%
|
Loss from
continuing operations
|
(1,703)
|
|
1,548
|
|
(155)
|
Net (loss)
income
|
(1,508)
|
|
1,548
|
|
40
|
Diluted
earnings per share from
|
|
|
|
|
|
continuing
operations
|
$
(0.03)
|
|
$
0.03
|
|
$
(0.00)
|
Diluted
earnings per share
|
$
(0.03)
|
|
$
0.03
|
|
$
0.00
|
|
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 income from continuing
operations, adjusted net income, adjusted diluted earnings per
share from continuing operations, 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") all
costs associated with the Company's pension plans, as the Company
froze benefits and began termination activities for its pension
plans in 2015 with the intentions of completing the termination and
distributing all plan assets during 2016, which totaled $2,560
($1,548, net of tax). The pension costs encompass all items
associated with net periodic benefit costs, including curtailment
and settlement charges, and professional fees associated with the
plan and plan termination proceedings.
|
|
Fourth
quarter of 2015 - Thirteen weeks ended January 30,
2016
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude pension
costs
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
462,172
|
|
$
(8,247)
|
|
$
453,925
|
Selling and
administrative expense rate
|
29.2%
|
|
(0.5%)
|
|
28.7%
|
Operating
profit
|
154,708
|
|
8,247
|
|
162,955
|
Operating
profit rate
|
9.8%
|
|
0.5%
|
|
10.3%
|
Income tax
expense
|
56,528
|
|
3,264
|
|
59,792
|
Effective
income tax rate
|
37.3%
|
|
0.3%
|
|
37.6%
|
Income from
continuing operations
|
94,692
|
|
4,983
|
|
99,675
|
Net
income
|
94,532
|
|
4,983
|
|
99,515
|
Diluted
earnings per share from
|
|
|
|
|
|
continuing
operations
|
$
1.91
|
|
$
0.10
|
|
$
2.01
|
Diluted
earnings per share
|
$
1.91
|
|
$
0.10
|
|
$
2.01
|
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 income from continuing
operations, adjusted net income, adjusted diluted earnings per
share from continuing operations, 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") all
costs associated with the Company's pension plans, as the Company
froze benefits and began termination activities for its pension
plans in 2015 with the intentions of completing the termination and
distributing all plan assets during 2016, which totaled $8,247
($4,983, net of tax). The pension costs encompass all items
associated with net periodic benefit costs, including curtailment
and settlement charges, and professional fees associated with the
plan and plan termination proceedings.
|
|
Full Year
2015 - Fifty-two weeks ended January 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude loss
contingency
|
Adjustment
to
exclude pension
costs
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
1,708,717
|
|
$
(4,487)
|
$
(12,932)
|
|
$
1,691,298
|
Selling and
administrative expense rate
|
32.9%
|
|
(0.1%)
|
(0.2%)
|
|
32.6%
|
Operating
profit
|
235,732
|
|
4,487
|
12,932
|
|
253,151
|
Operating
profit rate
|
4.5%
|
|
0.1%
|
0.2%
|
|
4.9%
|
Income tax
expense
|
83,842
|
|
1,776
|
5,112
|
|
90,730
|
Effective
income tax rate
|
37.0%
|
|
0.0%
|
0.1%
|
|
37.1%
|
Income from
continuing operations
|
143,008
|
|
2,711
|
7,820
|
|
153,539
|
Net
income
|
142,873
|
|
2,711
|
7,820
|
|
153,404
|
Diluted
earnings per share from
|
|
|
|
|
|
|
continuing
operations
|
$
2.81
|
|
$
0.05
|
$
0.15
|
|
$
3.01
|
Diluted
earnings per share
|
$
2.80
|
|
$
0.05
|
$
0.15
|
|
$
3.01
|
|
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 income from continuing
operations, adjusted net income, adjusted diluted earnings per
share from continuing operations, 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
accrual of a loss contingency associated with merchandise-related
legal matters of $4,487 ($2,711, net of tax); and (2) all costs
associated with the Company's pension plans, as the Company froze
benefits and began termination activities for its pension plans in
2015 with the intentions of completing the termination and
distributing all plan assets during 2016, which totaled $12,932
($7,820, net of tax). The pension costs encompass all items
associated with net periodic benefit costs, including curtailment
and settlement charges, and professional fees associated with the
plan and plan termination proceedings.
|
|
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.