Strong third quarter earnings led by membership
growth, traffic and margin improvement
Third Quarter Fiscal 2023 Highlights
- Comparable club sales, excluding gasoline sales, remained
approximately flat year-over-year
- Digitally enabled comparable sales growth was 16.0%
year-over-year
- Membership fee income increased by 6.6% year-over-year to
$106.1 million
- Merchandise gross margin rate increased by 30 basis points
year-over-year
- Earnings per diluted share of $0.97 and adjusted earnings per
diluted share of $0.98
- Income from continuing operations of $130.5 million
- Adjusted EBITDA of $274.9 million
BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) (the "Company")
today announced its financial results for the thirteen weeks and
thirty-nine weeks ended October 28, 2023.
“Our advantaged model and strong value proposition continue to
resonate with our members. During the third quarter, we posted
accelerating membership growth, robust traffic gains and continued
increases in market share. These gains continue to reinforce the
underlying strength of our business and we remain confident in the
long-term growth prospects of our Company,” said Bob Eddy, Chairman
and Chief Executive Officer, BJ’s Wholesale Club. “I am proud of
our team members for their continued dedication to our members
during these dynamic times.”
Key Measures for the Thirteen Weeks Ended October 28, 2023
(Third Quarter of Fiscal 2023) and for the Thirty-Nine Weeks Ended
October 28, 2023, (First Nine Months of Fiscal 2023):
BJ'S WHOLESALE CLUB HOLDINGS, INC.
(Amounts in thousands, except per share amounts)
13 Weeks Ended October 28,
2023
13 Weeks Ended October 29,
2022
%
Growth (Decline)
39 Weeks Ended October 28,
2023
39 Weeks Ended October 29,
2022
%
Growth (Decline)
Net sales
$
4,818,670
$
4,685,834
2.8
%
$
14,299,132
$
14,090,673
1.5
%
Membership fee income
106,053
99,485
6.6
%
312,273
294,897
5.9
%
Total revenues
4,924,723
4,785,319
2.9
%
14,611,405
14,385,570
1.6
%
Operating income
199,375
191,968
3.9
%
586,414
545,193
7.6
%
Income from continuing operations
130,467
131,394
(0.7
)%
377,780
384,862
(1.8
)%
Adjusted EBITDA (a)
274,920
272,305
1.0
%
800,663
766,804
4.4
%
Net income
130,467
129,942
0.4
%
377,869
383,396
(1.4
)%
EPS (b)
0.97
0.95
2.1
%
2.79
2.81
(0.7
)%
Adjusted net income (a)
131,779
135,830
(3.0
)%
378,617
398,550
(5.0
)%
Adjusted EPS (a)
0.98
0.99
(1.0
)%
2.80
2.92
(4.1
)%
Basic weighted-average shares
outstanding
133,069
134,091
133,232
134,225
Diluted weighted-average shares
outstanding
134,984
136,621
135,338
136,630
(a) See “Note Regarding Non-GAAP Financial
Information.”
(b) EPS represents net income per diluted
share.
Additional Highlights:
- Total comparable club sales increased by 0.3% in the third
quarter of fiscal 2023 compared to the third quarter of fiscal
2022. Excluding the impact of gasoline sales, comparable club sales
remained approximately flat, with a decrease of 0.1% in the third
quarter of fiscal 2023 compared to the same period in fiscal 2022.
Total comparable club sales decreased by 1.2% in the first nine
months of fiscal 2023 compared to the first nine months of fiscal
2022. Excluding the impact of gasoline sales, comparable club sales
increased by 2.1% in the first nine months of fiscal 2023 compared
to the first nine months of fiscal 2022.
- Gross profit increased to $902.5 million in the third quarter
of fiscal 2023 from $877.1 million in the third quarter of fiscal
2022. Merchandise gross margin rate, which excludes gasoline sales
and membership fee income, increased by 30 basis points over the
same quarter of fiscal 2022. Gross profit increased to $2,679.3
million in the first nine months of fiscal 2023 from $2,528.3
million in the first nine months of fiscal 2022. Merchandise gross
margin rate increased by 70 basis points in the first nine months
of fiscal 2023. Merchandise margins were positively impacted by
moderated supply chain costs and improved inventory management for
both comparative periods.
- Selling, general and administrative expenses ("SG&A")
increased to $697.1 million in the third quarter of fiscal 2023
compared to $674.4 million in the third quarter of fiscal 2022.
SG&A increased to $2,081.4 million in the first nine months of
fiscal 2023 compared to $1,961.6 million in the first nine months
of fiscal 2022. The increase in both comparative periods was
primarily driven by increased labor and occupancy costs as a result
of new club and gas station openings in addition to other
investments to drive strategic priorities.
- Income from continuing operations before income taxes increased
to $181.4 million in the third quarter of fiscal 2023 compared to
$179.5 million in the third quarter of fiscal 2022. Income from
continuing operations before income taxes increased to $537.4
million in the first nine months of fiscal 2023 compared to $514.0
million in the first nine months of fiscal 2022.
- Income tax expense increased to $50.9 million in the third
quarter of fiscal 2023 compared to $48.1 million in the third
quarter of fiscal 2022. Income tax expense increased to $159.7
million in the first nine months of fiscal 2023 compared to $129.2
million in the first nine months of fiscal 2022. The increases in
the income tax expense for both comparative periods are driven by
lower tax benefits from stock-based compensation. Income tax
expense for the first nine months of fiscal 2023 also increased due
to an immaterial adjustment to certain deferred tax assets related
to prior periods.
- Net income increased to $130.5 million in the third quarter of
fiscal 2023 compared to $129.9 million in the third quarter of
fiscal 2022. Net income decreased to $377.9 million in the first
nine months of fiscal 2023 compared to $383.4 million in the first
nine months of fiscal 2022.
- Adjusted EBITDA increased by 1.0% to $274.9 million in the
third quarter of fiscal 2023 compared to $272.3 million in the
third quarter of fiscal 2022. Adjusted EBITDA increased by 4.4% to
$800.7 million in the first nine months of fiscal 2023 compared to
$766.8 million in the first nine months of fiscal 2022.
- The Company repaid $50.0 million of principal and amended its
senior secured first lien term loan in the third quarter of fiscal
2023, extending the maturity date from February 3, 2027 to February
3, 2029. The interest rate was reduced from the Secured Overnight
Financing Rate (“SOFR”) plus 275 basis points per annum to SOFR
plus 200 basis points per annum.
- Under its existing share repurchase program, the Company
repurchased 242,000 shares of common stock, totaling $17.1 million,
inclusive of associated costs, in the third quarter of fiscal 2023.
In the first nine months of fiscal 2023, the Company repurchased
1,161,162 shares of common stock, totaling $77.0 million, inclusive
of associated costs, under such program.
Fiscal 2023 Ending February 3, 2024 Outlook
“As we look ahead to the rest of the year, we remain confident
in our ability to maintain the momentum in our traffic and market
share gains due to our unrelenting focus on value. We also continue
to navigate shifts in consumer behavior driven by the broader
macroeconomic environment. As a result, we are refining our sales
outlook for the rest of the year,” said Laura Felice, Executive
Vice President, Chief Financial Officer, BJ's Wholesale Club. “We
expect our comparable club sales, excluding the impact of gasoline
sales, to range from a 2% decrease to 1% increase year-over-year in
the fourth quarter fiscal 2023, and to increase by 1.0% to 1.8%
year-over-year for the full year fiscal 2023. Our outlook on fiscal
2023 GAAP and adjusted EPS remains unchanged in the $3.80 to $3.92
range.”
Conference Call Details
A conference call to discuss the third quarter of fiscal 2023
financial results is scheduled for today, November 17, 2023, at
8:00 A.M. Eastern Time. The live audio webcast of the call can be
accessed under the “Events & Presentations” section of the
Company’s investor relations website at https://investors.bjs.com
and will remain available for one year. Participants may also dial
(833) 470-1428 within the U.S. or (646) 904-5544 outside the U.S.
and reference conference ID 604879. A telephonic replay will be
available two hours after the conclusion of the call for one week
and can be accessed by dialing (929) 458-6194 or (866) 813-9403 and
referencing conference ID 413792.
About BJ’s Wholesale Club Holdings, Inc.
BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) is a leading
operator of membership warehouse clubs focused on delivering
significant value to its members and serving a shared purpose: “We
take care of the families who depend on us.” The Company provides a
curated assortment of grocery, general merchandise, gasoline and
ancillary services to offer a differentiated shopping experience
that is further enhanced by its omnichannel capabilities.
Headquartered in Marlborough, Massachusetts, the Company pioneered
the warehouse club model in New England in 1984 and currently
operates 239 clubs and 169 BJ's Gas® locations in 20 states. For
more information, please visit us at www.bjs.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including, without limitation,
statements regarding our strategic priorities; our anticipated
fiscal 2023 outlook; and our future progress, as well as statements
that include the words “expect,” “intend,” “plan,” “believe,”
“project,” “forecast,” “estimate,” “may,” “should,” “anticipate”
and similar statements of a future or forward-looking nature. These
forward-looking statements are based on management’s current
expectations. These statements are neither promises nor guarantees,
but involve known and unknown risks, uncertainties and other
important factors that may cause actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements, including, but not limited to:
uncertainties in the financial markets, including, without
limitation, as a result of disruptions and instability in the
banking and financial services industries or as a result of wars
and global political conflicts, consumer and small business
spending patterns and debt levels; our dependence on having a large
and loyal membership; domestic and international economic
conditions, including inflation and exchange rates; our ability to
procure the merchandise we sell at the best possible prices; the
effects of competition and regulation; our dependence on vendors to
supply us with quality merchandise at the right time and at the
right price; breaches of security or privacy of member or business
information; conditions affecting the acquisition, development,
ownership or use of real estate; our capital spending; actions of
vendors; our ability to attract and retain a qualified management
team and other team members; costs associated with employees
(generally including health care costs), energy and certain
commodities, geopolitical conditions (including tariffs); changes
in our product mix or in our revenues from gasoline sales; our
failure to successfully maintain a relevant omnichannel experience
for our members; risks related to our growth strategy to open new
clubs; risks related to our e-commerce business; our ability to
grow our BJ's One Mastercard® program; and other important factors
discussed under the caption “Risk Factors” in our Form 10-K filed
with the U.S. Securities and Exchange Commission (“SEC”) on March
16, 2023, and subsequent filings with the SEC, which are accessible
on the SEC’s website at www.sec.gov. These and other important
factors could cause actual results to differ materially from those
indicated by the forward-looking statements made in this press
release. Any such forward-looking statements represent management’s
estimates as of the date of this press release. While we may elect
to update such forward-looking statements at some point in the
future, unless required by law, we disclaim any obligation to do
so, even if subsequent events cause our views to change. Thus, one
should not assume that our silence over time means that actual
events are bearing out as expressed or implied in such
forward-looking statements. These forward-looking statements should
not be relied upon as representing our views as of any date
subsequent to the date of this press release.
Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized
under United States generally accepted accounting principles
(“GAAP”). Please see “Note Regarding Non-GAAP Financial
Information" and “Reconciliation of GAAP to Non-GAAP Financial
Information” below for additional information and a reconciliation
of the Non-GAAP financial measures to the most comparable GAAP
financial measures.
BJ'S WHOLESALE CLUB HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in
thousands, except per share amounts) (Unaudited)
Thirteen Weeks
Ended October 28, 2023
Thirteen Weeks
Ended October 29, 2022
Thirty-Nine Weeks
Ended October 28, 2023
Thirty-Nine Weeks
Ended October 29, 2022
Net sales
$
4,818,670
$
4,685,834
$
14,299,132
$
14,090,673
Membership fee income
106,053
99,485
312,273
294,897
Total revenues
4,924,723
4,785,319
14,611,405
14,385,570
Cost of sales
4,022,243
3,908,219
11,932,120
11,857,263
Selling, general and administrative
expenses
697,104
674,426
2,081,392
1,961,606
Pre-opening expense
6,001
10,706
11,479
21,508
Operating income
199,375
191,968
586,414
545,193
Interest expense, net
18,004
12,450
48,968
31,166
Income from continuing operations before
income taxes
181,371
179,518
537,446
514,027
Provision for income taxes
50,904
48,124
159,666
129,165
Income from continuing operations
130,467
131,394
377,780
384,862
Income (loss) from discontinued
operations, net of income taxes
—
(1,452
)
89
(1,466
)
Net income
$
130,467
$
129,942
$
377,869
$
383,396
Income per share attributable to common
stockholders - basic:
Income from continuing operations
$
0.98
$
0.98
$
2.84
$
2.87
Income (loss) from discontinued
operations
—
(0.01
)
—
(0.01
)
Net income
$
0.98
$
0.97
$
2.84
$
2.86
Income per share attributable to common
stockholders - diluted:
Income from continuing operations
$
0.97
$
0.96
$
2.79
$
2.82
Income (loss) from discontinued
operations
—
(0.01
)
—
(0.01
)
Net income
$
0.97
$
0.95
$
2.79
$
2.81
Weighted-average number of shares
outstanding:
Basic
133,069
134,091
133,232
134,225
Diluted
134,984
136,621
135,338
136,630
BJ'S WHOLESALE CLUB HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in
thousands, except per share amounts) (Unaudited)
October 28, 2023
October 29, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
33,551
$
34,644
Accounts receivable, net
224,505
251,978
Merchandise inventories
1,661,852
1,504,368
Prepaid expense and other current
assets
80,550
72,285
Total current assets
2,000,458
1,863,275
Operating lease right-of-use assets,
net
2,174,706
2,163,504
Property and equipment, net
1,495,912
1,296,151
Goodwill
1,008,816
1,008,816
Intangibles, net
109,600
117,814
Deferred taxes
7,429
4,341
Other assets
40,323
25,002
Total assets
$
6,837,244
$
6,478,903
LIABILITIES
Current liabilities:
Short-term debt
$
434,000
$
295,000
Current portion of operating lease
liabilities
180,490
176,659
Accounts payable
1,318,959
1,363,734
Accrued expenses and other current
liabilities
805,607
764,572
Total current liabilities
2,739,056
2,599,965
Long-term operating lease liabilities
2,084,744
2,085,625
Long-term debt
398,355
600,123
Deferred income taxes
65,104
70,432
Other non-current liabilities
196,289
179,883
STOCKHOLDERS' EQUITY
1,353,696
942,875
Total liabilities and stockholders'
equity
$
6,837,244
$
6,478,903
BJ'S WHOLESALE CLUB HOLDINGS,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Amounts in thousands, except per share
amounts)
(Unaudited)
Thirty-Nine Weeks Ended
October 28, 2023
Thirty-Nine Weeks Ended
October 29, 2022
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income
$
377,869
$
383,396
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
166,421
149,259
Amortization of debt issuance costs and
accretion of original issue discount
900
2,282
Debt extinguishment charges
1,830
687
Stock-based compensation expense
29,011
27,965
Deferred income tax provision
12,149
18,474
Changes in operating leases and other
non-cash items
3,684
26,235
Increase (decrease) in cash due to changes
in:
Accounts receivable
15,205
(73,162
)
Merchandise inventories
(283,301
)
(173,361
)
Accounts payable
123,262
250,951
Accrued expenses and other current
liabilities
29,916
(3,802
)
Other operating assets and liabilities,
net
(32,415
)
3,933
Net cash provided by operating
activities
444,531
612,857
CASH FLOWS FROM INVESTING
ACTIVITIES
Additions to property and equipment, net
of disposals and proceeds from sale leaseback transactions
(335,641
)
(283,216
)
Acquisition
—
(376,521
)
Net cash used in investing activities
(335,641
)
(659,737
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from the issuance of long-term
debt
305,041
—
Payments on long-term debt
(355,041
)
(150,000
)
Proceeds from revolving lines of
credit
564,000
1,110,000
Payments on revolving lines of credit
(535,000
)
(815,000
)
Debt issuance costs paid
(1,722
)
(2,733
)
Net cash received from stock option
exercises
2,369
6,545
Net cash received from Employee Stock
Purchase Program (ESPP)
3,255
2,331
Acquisition of treasury stock
(101,819
)
(127,458
)
Proceeds from financing obligations
11,691
16,949
Other financing activities
(2,028
)
(4,546
)
Net cash (used in) provided by financing
activities
(109,254
)
36,088
Net decrease in cash and cash
equivalents
(364
)
(10,792
)
Cash and cash equivalents at beginning of
period
33,915
45,436
Cash and cash equivalents at end of
period
$
33,551
$
34,644
Note Regarding Non-GAAP Financial Information
This press release includes financial measures that are not
calculated in accordance with GAAP, including adjusted net income,
adjusted net income per diluted share, adjusted EBITDA, free cash
flow, net debt and net debt to last twelve months (“LTM”) adjusted
EBITDA.
We define adjusted net income as net income attributable to
common stockholders adjusted for: acquisition and integration
costs; home office transition costs; impairment charges; charges
related to debt payments; other adjustments and the tax impact of
the foregoing adjustments on net income.
We define adjusted net income per diluted share as adjusted net
income divided by the weighted-average diluted shares
outstanding.
We define adjusted EBITDA as income from continuing operations
before interest expense, net, provision for income taxes and
depreciation and amortization, adjusted for the impact of certain
other items, including: stock-based compensation expense;
pre-opening expenses; non-cash rent; acquisition and integration
costs and other adjustments.
We define free cash flow as net cash provided by operating
activities less additions to property and equipment, net of
disposals, plus proceeds from sale leaseback transactions.
We define net debt as total debt outstanding less cash and cash
equivalents.
We define net debt to LTM adjusted EBITDA as net debt at the
balance sheet date divided by adjusted EBITDA for the trailing
twelve-month period.
We present adjusted net income, adjusted net income per diluted
share and adjusted EBITDA, which are not recognized financial
measures under GAAP, because we believe such measures assist
investors and analysts in comparing our operating performance
across reporting periods on a consistent basis by excluding items
that we do not believe are indicative of our core operating
performance. In addition, adjusted EBITDA excludes pre-opening
expenses, because we do not believe these expenses are indicative
of the underlying operating performance of our clubs. The amount
and timing of pre-opening expenses are dependent on, among other
things, the size of new clubs opened and the number of new clubs
opened during any given period.
Management believes that adjusted net income, adjusted net
income per diluted share and adjusted EBITDA are helpful in
highlighting trends in our core operating performance compared to
other measures, which can differ significantly depending on
long-term strategic decisions regarding capital structure, the tax
jurisdictions in which companies operate and capital investments.
We use adjusted net income, adjusted net income per diluted share
and adjusted EBITDA to supplement GAAP measures of performance in
the evaluation of the effectiveness of our business strategies; to
make budgeting decisions; and to compare our performance against
that of other peer companies using similar measures. We also use
adjusted EBITDA in connection with establishing discretionary
annual incentive compensation.
We present free cash flow, which is not a recognized financial
measure under GAAP, because we use it to report to our Board of
Directors and we believe it assists investors and analysts in
evaluating our liquidity. Free cash flow should not be considered
as an alternative to cash flows from operations as a liquidity
measure. We present net debt and net debt to LTM adjusted EBITDA,
which are not recognized as financial measures under GAAP, because
we use them to report to our Board of Directors and we believe they
assist investors and analysts in evaluating our borrowing capacity.
Net debt to LTM adjusted EBITDA is a key financial measure that is
used by management to assess the borrowing capacity of the
Company.
You are encouraged to evaluate these adjustments and the reasons
we consider them appropriate for supplemental analysis. In
evaluating adjusted net income, adjusted net income per diluted
share, adjusted EBITDA and net debt to LTM adjusted EBITDA, you
should be aware that in the future we may incur expenses that are
the same as or like some of the adjustments in our presentation of
these metrics. Our presentation of adjusted net income, adjusted
net income per diluted share, adjusted EBITDA, free cash flow, net
debt and net debt to LTM adjusted EBITDA should not be considered
as alternatives to any other measure derived in accordance with
GAAP and they should not be construed as an inference that the
Company’s future results will be unaffected by unusual or
non-recurring items. There can be no assurance that we will not
modify the presentation of adjusted net income, adjusted net income
per diluted share, adjusted EBITDA or net debt to LTM adjusted
EBITDA in the future, and any such modification may be material. In
addition, adjusted net income, adjusted net income per diluted
share, adjusted EBITDA, free cash flow, net debt and net debt to
LTM adjusted EBITDA may not be comparable to similarly titled
measures used by other companies in our industry or across
different industries. Additionally, adjusted net income, adjusted
net income per diluted share, adjusted EBITDA, free cash flow, net
debt and net debt to LTM adjusted EBITDA have limitations as
analytical tools, and you should not consider them in isolation or
as a substitute for analysis of our results as reported under
GAAP.
The Company does not provide a reconciliation for non-GAAP
estimates on a forward-looking basis, including the information
under "Fiscal 2023 Ending February 3, 2024" above, where it is
unable to provide a meaningful or accurate calculation or
estimation of reconciling items or there are no meaningful
adjustments to be presented in the reconciliation and the
information is not available without unreasonable effort. This is
due to the inherent difficulty of forecasting the timing and/or
amount of various items that would impact net income per diluted
share, if any, which is the most directly comparable
forward-looking GAAP financial measure. This includes items that
have not yet occurred, are out of the Company's control, cannot be
reasonably predicted and/or for which there would not be any
meaningful adjustment or difference. For the same reasons, the
Company is unable to address the probable significance of the
unavailable information. The information under "Fiscal 2023 Ending
February 3, 2024" above, including expectations that GAAP and
adjusted EPS reflects management’s view of current and future
market conditions. To the extent actual results differ from our
current expectations, the Company’s results may differ materially
from the expectations set forth above. Other factors, as referenced
elsewhere in this press release, may also cause the Company’s
results to differ materially from the expectations set forth
above.
Reconciliation of GAAP to Non-GAAP
Financial Information
BJ'S WHOLESALE CLUB HOLDINGS, INC.
Reconciliation of net income to adjusted net income and adjusted
net income per diluted share
(Amounts in thousands, except per share
amounts)
(Unaudited)
13 Weeks Ended
October 28, 2023
13 Weeks Ended
October 29, 2022
39 Weeks Ended
October 28, 2023
39 Weeks Ended
October 29, 2022
Net income as reported
$ 130,467
$ 129,942
$ 377,869
$ 383,396
Adjustments:
Acquisition and integration costs (a)
—
857
—
12,324
Home office transition costs (b)
—
5,897
—
7,096
Impairment expense on discontinued
operations club lease
—
1,199
—
1,199
Charges related to debt (c)
1,830
298
1,830
687
Other adjustments (d)
—
—
(786)
(165)
Tax impact of adjustments to net income
(e)
(518)
(2,363)
(296)
(5,987)
Adjusted net income
$ 131,779
$ 135,830
$ 378,617
$ 398,550
Weighted-average diluted shares
outstanding
134,984
136,621
135,338
136,630
Adjusted EPS (f)
$ 0.98
$ 0.99
$ 2.80
$ 2.92
(a) Represents costs related to the acquisition and integration
of assets from Burris Logistics, including due diligence, legal,
and other consulting expenses. (b) Represents incremental rent
expense, other non-recurring lease costs and write-off of impaired
assets as the Company transitioned home office locations in fiscal
2022. (c) Represents the expensing of fees and deferred fees and
original issue discount associated with the extinguishment of the
ABL Facility in fiscal 2022 and amendment of the senior secured
first lien term loan in fiscal 2023. (d) Other non-cash items
related to the reclassification into earnings of accumulated other
comprehensive income/ loss associated with the de-designation of
hedge accounting and other adjustments. (e) Represents the tax
effect of the above adjustments at a statutory tax rate of
approximately 28%. (f) Adjusted EPS is measured using
weighted-average diluted shares outstanding.
BJ'S WHOLESALE CLUB HOLDINGS, INC.
Reconciliation to Adjusted EBITDA (Amounts in
thousands) (Unaudited)
13 Weeks Ended
October 28, 2023
13 Weeks Ended
October 29, 2022
39 Weeks Ended
October 28, 2023
39 Weeks Ended
October 29, 2022
Income from continuing
operations
$
130,467
$
131,394
$
377,780
$
384,862
Interest expense, net
18,004
12,450
48,968
31,166
Provision for income taxes
50,904
48,124
159,666
129,165
Depreciation and amortization
57,406
52,166
166,421
149,259
Stock-based compensation expense
9,380
9,463
29,011
27,965
Pre-opening expenses (a)
6,001
10,707
11,479
21,508
Non-cash rent (b)
2,394
1,025
6,226
3,127
Acquisition and integration costs (c)
—
857
—
12,324
Home office transition costs (d)
—
5,897
—
7,096
Other adjustments (e)
364
222
1,112
332
Adjusted EBITDA
$
274,920
$
272,305
$
800,663
$
766,804
(a) Represents direct incremental costs of opening or relocating
a facility that are charged to operations as incurred. (b) Consists
of an adjustment to remove the non-cash portion of rent expense.
(c) Represents costs related to the acquisition and integration of
assets from Burris Logistics, including due diligence, legal, and
other consulting expenses. (d) Represents incremental rent expense,
other non-recurring lease costs and write-off of impaired assets as
the Company transitioned home office locations in fiscal 2022. (e)
Other non-cash items, including non-cash accretion on asset
retirement obligations and obligations associated with our
post-retirement medical plan.
BJ'S WHOLESALE CLUB HOLDINGS, INC.
Reconciliation to Free Cash Flow (Amounts in
thousands) (Unaudited)
13 Weeks Ended
October 28, 2023
13 Weeks Ended
October 29, 2022
39 Weeks Ended
October 28, 2023
39 Weeks Ended
October 29, 2022
Net cash provided by operating
activities
$
175,031
$
169,805
$
444,531
$
612,857
Less: Additions to property and equipment,
net of disposals
(133,711
)
(102,774
)
(347,951
)
(294,308
)
Plus: Proceeds from sale leaseback
transactions
6,322
8,418
12,310
11,092
Free cash flow
$
47,642
$
75,449
$
108,890
$
329,641
BJ'S WHOLESALE CLUB HOLDINGS, INC.
Reconciliation of Net Debt and Net Debt to LTM adjusted
EBITDA (Amounts in thousands) (Unaudited)
October 28, 2023
Total debt
$
832,355
Less: Cash and cash equivalents
33,551
Net Debt
$
798,804
Income from continuing operations
$
507,180
Interest expense, net
65,264
Provision for income taxes
206,763
Depreciation and amortization
218,096
Stock-based compensation expense
43,663
Pre-opening expenses
14,904
Non-cash rent
7,090
Home office transition costs
7,610
Other adjustments
1,422
Adjusted EBITDA
$
1,071,992
Net debt to LTM adjusted EBITDA
0.7x
See descriptions of adjustments in the “Reconciliation to
Adjusted EBITDA (unaudited)” table above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231117935731/en/
Investors: Catherine Park Vice President, Investor
Relations cpark@bjs.com 774-512-6744 Media: Kirk Saville
Head of Corporate Communications ksaville@bjs.com 774-512-5597
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