COLUMBUS, Ohio, Dec. 2, 2016 /PRNewswire/ -- Big Lots, Inc.
(NYSE: BIG) today reported income from continuing operations of
$1.4 million, or $0.03 per diluted share, for the third quarter of
fiscal 2016 ended October 29, 2016.
This result includes an after tax expense of $0.5 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 $1.9 million, or $0.04 per diluted share (see non-GAAP table
included later in this release), which compares to our guidance for
continuing operations 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). In the third quarter of fiscal 2015, the adjusted
loss from continuing operations totaled $0.2
million, or $0.00 per share
(non-GAAP). Comparable store sales were flat for the third quarter
of fiscal 2016, compared to our guidance of flat to an increase of
2%. Net sales for the quarter decreased 1.0% to $1,105 million, a result of a lower store count
year-over-year.
Commenting on today's release, David
Campisi, Chief Executive Officer and President of Big Lots,
stated, "We are pleased to report in a challenging retail
environment the team delivered upon our financial commitments.
Sales were in line with our communicated guidance while EPS was
above our expectations. Jennifer continues to positively respond to
our focus on ownable and winnable merchandise categories, improved
merchandise presentations and more consistent in-store
execution."
THIRD QUARTER HIGHLIGHTS
- Adjusted income from continuing operations of $0.04 per diluted share (non-GAAP), compared to
an adjusted loss of $0.2 million, or
$0.00 per share (non-GAAP)
last year
- Comparable store sales were flat which was in line with
guidance
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Earnings per
Share
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Q3 2016
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Q3 2015
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YTD 2016
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YTD 2015
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Continuing
operations
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$0.03
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($0.03)
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$1.36
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$0.94
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Impact of legacy
pension costs (1)
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$0.01
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$0.03
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$0.05
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$0.06
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Impact of
non-recurring expense (1)
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-
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-
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-
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$0.05
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Continuing operations
- adjusted basis (1)
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$0.04
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$0.00
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$1.41
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$1.05
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% Change (2016 vs.
2015)
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+34%
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(1) Non-GAAP
detailed reconciliation provided below.
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Inventory and Cash Management
Inventory ended the third quarter of fiscal 2016 at $1,036 million, a 1% decrease compared to
$1,047 million for the third quarter
of fiscal 2015 as Inventory per store was flat to last year coupled
with a lower store count year-over-year.
We ended the third quarter of fiscal 2016 with $60 million of Cash and Cash Equivalents and
$363 million of borrowings under our
credit facility compared of $62
million of Cash and Cash Equivalents and $335 million of borrowings under our credit
facility as of the end of the third quarter of fiscal 2015. Our
growth in year-over-year borrowings resulted from returning a
higher amount of cash to shareholders (dividends and share
repurchases) while investing in capital expenditures to support our
strategic plan.
Total Cash Returned To Shareholders
As announced earlier today in a separate press release, on
November 30, 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 December 30, 2016, to shareholders
of record as of the close of business on December 16, 2016.
Based on today's announcement and including year-to-date
activity for fiscal 2016, we will return $288 million to shareholders through our share
repurchase investments ($250 million)
and quarterly dividend payments ($38
million).
FISCAL Q4 2016 GUIDANCE
- Affirms 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
- Affirms 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 $3.55 to $3.60 per diluted share (non-GAAP),
representing an 18% to 20% increase compared to fiscal 2015
adjusted income from continuing operations of $3.01 per diluted share (non-GAAP)
- Affirms guidance for fiscal 2016 comparable store sales
increase in the range of 1% to 2%
- Updates guidance for fiscal 2016 cash flow to $195 million
Based on operating results for the first three quarters and our
expectations for the fourth quarter of fiscal 2016 noted above, we
now estimate fiscal 2016 adjusted income from continuing operations
to be in the range of $3.55 to $3.60
per diluted share (non-GAAP), compared to our previous guidance of
$3.45 to $3.55 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.
In addition, we now expect to complete the process of
terminating legacy pension plans during the fourth quarter of
fiscal 2016 with cash payouts totaling approximately $15 million. Including the impact of these
payouts, we now estimate full year cash flow of approximately
$195 million.
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Full Year
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2016 Guidance
(1)
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2015
(2)
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Adjusted EPS from
continuing operations
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$3.55 to
$3.60
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$3.01
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% Change (2016 vs.
2015)
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+18%
to +20%
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(1) Non-GAAP -
excludes potential impact of legacy pension costs of approximately
$15 million after tax.
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(2) Non-GAAP - see
attached reconciliation.
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Conference Call/Webcast
We will host a conference call
today at 8:00 a.m. to discuss our
financial results for the third 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 after 12:00 noon today
and will remain available through midnight on Friday, December 16, 2016. A replay of this call
will also be available beginning today at 12:00 noon through
December 16 by dialing 1.888.203.1112
(Toll Free USA and Canada) or 1.719.457.0820 (International), and
entering Replay Passcode 4545762. 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.
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BIG LOTS, INC. AND
SUBSIDIARIES
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CONDENSED
CONSOLIDATED BALANCE SHEETS
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(In
thousands)
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OCTOBER
29
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OCTOBER
31
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2016
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2015
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(Unaudited)
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(Recast)
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ASSETS
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Current
assets:
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Cash and cash
equivalents
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$59,743
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$61,541
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Inventories
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1,036,337
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1,047,322
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Other current
assets
|
|
112,251
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|
110,184
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Total
current assets
|
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1,208,331
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1,219,047
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Property and
equipment - net
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540,669
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576,563
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Deferred income
taxes
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56,102
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54,478
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Other
assets
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42,141
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39,209
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$1,847,243
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$1,889,297
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LIABILITIES AND
SHAREHOLDERS'
EQUITY
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Current
liabilities:
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Accounts
payable
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$503,625
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$490,049
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Property, payroll
and other taxes
|
|
88,941
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81,808
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Accrued operating
expenses
|
|
80,227
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|
76,761
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Insurance
reserves
|
|
42,141
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|
42,661
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Accrued salaries
and wages
|
|
50,243
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|
36,658
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Income taxes
payable
|
|
1,407
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|
862
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Total
current liabilities
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|
766,584
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|
728,799
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Long-term
obligations under bank credit facility
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362,900
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334,900
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Deferred
rent
|
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55,291
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|
61,418
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Insurance
reserves
|
|
58,647
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|
57,527
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|
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Unrecognized tax
benefits
|
|
14,639
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|
17,809
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Other
liabilities
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|
44,107
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51,572
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Shareholders'
equity
|
|
545,075
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|
637,272
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$1,847,243
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$1,889,297
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|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
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(In thousands,
except per share data)
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13 WEEKS
ENDED
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13 WEEKS
ENDED
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|
OCTOBER 29,
2016
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OCTOBER 31,
2015
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%
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%
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(Unaudited)
|
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(Unaudited)
|
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|
|
Net
sales
|
|
$1,105,498
|
100.0
|
|
$1,116,474
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100.0
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|
Gross
margin
|
|
441,992
|
40.0
|
|
440,007
|
39.4
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Selling and
administrative expenses
|
|
409,753
|
37.1
|
|
411,994
|
36.9
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|
|
|
|
|
|
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|
|
Depreciation
expense
|
|
30,294
|
2.7
|
|
30,171
|
2.7
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
1,945
|
0.2
|
|
(2,158)
|
(0.2)
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|
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|
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|
|
Interest
expense
|
|
(1,665)
|
(0.2)
|
|
(1,272)
|
(0.1)
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|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
698
|
0.1
|
|
(673)
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
978
|
0.1
|
|
(4,103)
|
(0.4)
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|
|
|
|
|
|
|
|
|
Income tax
benefit
|
|
(378)
|
(0.0)
|
|
(2,400)
|
(0.2)
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
1,356
|
0.1
|
|
(1,703)
|
(0.2)
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations, net of tax
|
|
|
|
|
|
|
|
expense of $13 and $118, respectively
|
|
20
|
0.0
|
|
195
|
0.0
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$1,376
|
0.1
|
|
($1,508)
|
(0.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per common share - basic (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$0.03
|
|
|
($0.03)
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
0.00
|
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$0.03
|
|
|
($0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per common share - diluted (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$0.03
|
|
|
($0.03)
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
0.00
|
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$0.03
|
|
|
($0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
44,165
|
|
|
49,057
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
761
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
44,926
|
|
|
49,057
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$0.21
|
|
|
$0.19
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The earnings
(loss) per share for Continuing Operations, Discontinued Operations
and Net income (loss) are separately calculated in accordance with
accounting pronouncements; therefore, the sum of earnings (loss)
per share for Continuing Operations and Discontinued Operations may
differ, due to rounding, from the calculated earnings (loss) per
share of Net income (loss).
|
|
|
|
|
|
|
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
39 WEEKS
ENDED
|
|
39 WEEKS
ENDED
|
|
|
|
OCTOBER 29,
2016
|
|
OCTOBER 31,
2015
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$3,621,228
|
100.0
|
|
$3,606,615
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
1,446,096
|
39.9
|
|
1,419,957
|
39.4
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
1,251,905
|
34.6
|
|
1,246,545
|
34.6
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
90,750
|
2.5
|
|
92,388
|
2.6
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
103,441
|
2.9
|
|
81,024
|
2.2
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(3,793)
|
(0.1)
|
|
(2,737)
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
1,000
|
0.0
|
|
(2,387)
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes
|
|
100,648
|
2.8
|
|
75,900
|
2.1
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
37,942
|
1.0
|
|
27,584
|
0.8
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
62,706
|
1.7
|
|
48,316
|
1.3
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations, net of tax
|
|
|
|
|
|
|
|
expense of $28 and $10, respectively
|
|
44
|
0.0
|
|
25
|
0.0
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$62,750
|
1.7
|
|
$48,341
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share - basic (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$1.37
|
|
|
$0.95
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
0.00
|
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$1.37
|
|
|
$0.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share - diluted (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$1.36
|
|
|
$0.94
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
0.00
|
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$1.36
|
|
|
$0.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
45,678
|
|
|
50,992
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
578
|
|
|
540
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
46,256
|
|
|
51,532
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$0.63
|
|
|
$0.57
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
OCTOBER 29,
2016
|
|
OCTOBER 31,
2015
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Net cash
used in operating activities
|
|
($67,964)
|
|
($64,345)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(26,812)
|
|
(33,996)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by financing activities
|
|
96,150
|
|
102,519
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash
and cash equivalents
|
|
1,374
|
|
4,178
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
58,369
|
|
57,363
|
|
|
|
End of
period
|
|
$59,743
|
|
$61,541
|
|
|
|
|
|
|
|
|
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
39 WEEKS
ENDED
|
|
39 WEEKS
ENDED
|
|
|
|
|
|
OCTOBER 29,
2016
|
|
OCTOBER 31,
2015
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Net cash
provided by operating activities
|
|
$43,536
|
|
$52,318
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(71,842)
|
|
(98,298)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by financing activities
|
|
33,905
|
|
55,260
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash
and cash equivalents
|
|
5,599
|
|
9,280
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
54,144
|
|
52,261
|
|
|
|
End of
period
|
|
$59,743
|
|
$61,541
|
|
|
|
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 (loss), operating
profit (loss) rate, income tax expense (benefit), effective income
tax rate, income (loss) from continuing operations, net income
(loss), diluted earnings (loss) per share from continuing
operations, and diluted earnings (loss) per share for the third
quarter of 2016, the year-to-date 2016, the third quarter of 2015,
the year-to-date 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 (loss), adjusted operating
profit (loss) rate, adjusted income tax expense (benefit), adjusted
effective income tax rate, adjusted income (loss) from continuing
operations, adjusted net income (loss), adjusted diluted earnings
(loss) per share from continuing operations, and adjusted diluted
earnings (loss) per share (non-GAAP financial measures).
|
|
|
|
|
|
|
|
|
|
Third quarter of
2016 - Thirteen weeks ended October 29, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude pension
costs
|
|
As
Adjusted
(non-GAAP)
|
|
Selling and
administrative expenses
|
$
409,753
|
|
$
(863)
|
|
$
408,890
|
|
Selling and
administrative expense rate
|
37.1%
|
|
(0.1%)
|
|
37.0%
|
|
Operating
profit
|
|
1,945
|
|
863
|
|
2,808
|
|
Operating
profit rate
|
|
0.2%
|
|
0.1%
|
|
0.3%
|
|
Income tax
benefit
|
|
(378)
|
|
342
|
|
(36)
|
|
Effective
income tax rate
|
|
-38.7%
|
|
36.7%
|
|
-2.0%
|
|
Income from
continuing operations
|
1,356
|
|
521
|
|
1,877
|
|
Net
income
|
|
1,376
|
|
521
|
|
1,897
|
|
Diluted
earnings per share from
|
|
|
|
|
|
|
continuing
operations
|
|
$
0.03
|
|
$
0.01
|
|
$
0.04
|
|
Diluted
earnings per share
|
|
$
0.03
|
|
$
0.01
|
|
$
0.04
|
|
|
|
|
|
|
|
|
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 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 $863 ($521,
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 - Thirty-nine weeks ended October 29,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude pension
costs
|
|
As
Adjusted
(non-GAAP)
|
|
Selling and
administrative expenses
|
$
1,251,905
|
|
$
(4,073)
|
|
$
1,247,832
|
|
Selling and
administrative expense rate
|
34.6%
|
|
(0.1%)
|
|
34.5%
|
|
Operating
profit
|
|
103,441
|
|
4,073
|
|
107,514
|
|
Operating
profit rate
|
|
2.9%
|
|
0.1%
|
|
3.0%
|
|
Income tax
expense
|
|
37,942
|
|
1,612
|
|
39,554
|
|
Effective
income tax rate
|
|
37.7%
|
|
0.1%
|
|
37.8%
|
|
Income from
continuing operations
|
62,706
|
|
2,461
|
|
65,167
|
|
Net
income
|
|
62,750
|
|
2,461
|
|
65,211
|
|
Diluted
earnings per share from
|
|
|
|
|
|
|
continuing
operations
|
|
$
1.36
|
|
$
0.05
|
|
$
1.41
|
|
Diluted
earnings per share
|
|
$
1.36
|
|
$
0.05
|
|
$
1.41
|
|
|
|
|
|
|
|
|
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 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 $4,073
($2,461, 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 (loss) per share from
|
|
|
|
|
|
|
continuing
operations
|
|
$
(0.03)
|
|
$
0.03
|
|
$
0.00
|
|
Diluted
earnings (loss) per share
|
$
(0.03)
|
|
$
0.03
|
|
$
0.00
|
|
|
|
|
|
|
|
The above adjusted
selling and administrative expenses, adjusted selling and
administrative expense rate, adjusted operating (loss) profit,
adjusted operating (loss) profit rate, adjusted income tax benefit,
adjusted effective income tax rate, adjusted loss from continuing
operations, adjusted net (loss) income, adjusted diluted earnings
(loss) per share from continuing operations, and adjusted diluted
earnings (loss) per share are "non-GAAP financial measures" as that
term is defined by Rule 101 of Regulation G (17 CFR Part 244) and
Item 10 of Regulation S-K (17 CFR Part 229). These non-GAAP
financial measures exclude from the most directly comparable
financial measures calculated and presented in accordance with GAAP
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.
|
|
Year-to-date
2015 - Thirty-nine weeks ended October 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude loss
contingency
|
Adjustment
to
exclude pension
costs
|
|
As
Adjusted
(non-GAAP)
|
|
Selling and
administrative expenses
|
$
1,246,545
|
|
$
(4,487)
|
$
(4,685)
|
|
$
1,237,373
|
|
Selling and
administrative expense rate
|
34.6%
|
|
(0.1%)
|
(0.1%)
|
|
34.3%
|
|
Operating
profit
|
|
81,024
|
|
4,487
|
4,685
|
|
90,196
|
|
Operating
profit rate
|
|
2.2%
|
|
0.1%
|
0.1%
|
|
2.5%
|
|
Income tax
expense
|
|
27,584
|
|
1,776
|
1,848
|
|
31,208
|
|
Effective
income tax rate
|
|
36.3%
|
|
0.2%
|
(0.6%)
|
|
36.7%
|
|
Income from
continuing operations
|
48,316
|
|
2,711
|
2,837
|
|
53,864
|
|
Net
income
|
|
48,341
|
|
2,711
|
2,837
|
|
53,889
|
|
Diluted
earnings per share from
|
|
|
|
|
|
|
|
continuing
operations
|
|
$
0.94
|
|
$
0.05
|
$
0.06
|
|
$
1.05
|
|
Diluted
earnings per share
|
|
$
0.94
|
|
$
0.05
|
$
0.06
|
|
$
1.05
|
|
|
|
|
|
|
|
|
|
|
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 $4,685
($2,837, 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.