COLUMBUS, Ohio, Dec. 1, 2017 /PRNewswire/ -- Big Lots, Inc.
(NYSE: BIG) today reported income of $4.4
million, or $0.10 per diluted
share, for the third quarter of fiscal 2017 ended October 28, 2017. This result includes after tax
income of $1.9 million, or
$0.04 per diluted share, associated
with a gain from insurance recoveries on merchandise-related legal
matters. Excluding this gain, adjusted income totaled $2.5 million, or $0.06 per diluted share (see non-GAAP table
included later in this release), which compares to our guidance of
income in the range of $0.01 to $0.05
per diluted share. Comparable store sales increased 1.0% for the
third quarter of fiscal 2017, compared to our guidance of a low
single digit increase. Net sales for the third quarter of fiscal
2017 increased 0.5% to $1,111
million, a result of the comparable store sales increase
partially offset by a lower store count year-over-year.
Commenting on today's release, David
Campisi, Chief Executive Officer and President of Big Lots,
stated, "I'm very pleased with our third quarter results. In a
challenging retail environment, the team delivered on our financial
commitments with sales in line with our communicated guidance and
EPS growth above our expectations. Jennifer continues to respond
positively to our strategy focusing on ownable and winnable
merchandise categories, improved merchandise presentations, and
more consistent, friendly customer service and in-store
execution."
THIRD QUARTER HIGHLIGHTS
- Adjusted income of $0.06 per
diluted share (non-GAAP), compared to last year's adjusted income
of $0.04 per diluted share
(non-GAAP)
- Comparable store sales increase of 1.0%
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Earnings per diluted
share
|
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|
|
Q3 2017
|
|
Q3 2016
|
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|
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|
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Earnings per diluted
share
|
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$0.10
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$0.03
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Impact of gain from
insurance recoveries (1)
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($0.04)
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-
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Impact of legacy
pension costs (1)
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-
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$0.01
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|
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|
Earnings per diluted
share - adjusted basis
|
|
$0.06
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|
$0.04
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% change to
LY
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+50%
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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 2017 at $1,038 million, compared to $1,036 million for the third quarter of fiscal
2016. Inventory levels per store increased 1% compared to last
year, partially offset by a lower store count year-over-year.
We ended the third quarter of fiscal 2017 with $58 million of Cash and Cash Equivalents and
$372 million of borrowings under our
credit facility compared to $60
million of Cash and Cash Equivalents and $363 million of borrowings under our credit
facility as of the end of the third quarter of fiscal 2016. 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,
including the Store of the Future, and returning cash to our
shareholders through share repurchases and dividend payments.
Total Cash Returned To Shareholders
As a reminder, on February 28, 2017,
our Board of Directors approved a share repurchase program ("2017
Share Repurchase Program") providing for the repurchase of up to
$150 million of our common shares in
open market and/or privately negotiated transactions at our
discretion, subject to market conditions and other factors. During
the third quarter of fiscal 2017, we completed the 2017 Share
Repurchase Program. In total for the program, we invested
$150 million to repurchase 3.1
million shares, or approximately 7% of the Company's shares
outstanding, at an average price of $48.04 per share. Common shares acquired through
the 2017 Share Repurchase Program will be available to meet
obligations under our equity compensation plans and for general
corporate purposes.
As announced in a separate press release earlier today, on
November 29, 2017, our Board of
Directors declared a quarterly cash dividend of $0.25 per common share. This dividend payment of
approximately $11 million is payable
on December 29, 2017, to shareholders
of record as of the close of business on December 15, 2017.
Year to date, the combination of share repurchase activity and
our quarterly dividend payments have returned approximately
$184 million to shareholders.
FISCAL Q4 2017 GUIDANCE
- Increases Q4 guidance for income of $2.35 to $2.40 per diluted share, compared to
adjusted income of $2.26 per diluted
share (non-GAAP) for the same period last year
- Affirms Q4 guidance for comparable store sales in the range
of flat to +2%
For the fourth quarter of fiscal 2017, we estimate income will
be in the range of $2.35 to $2.40 per
diluted share, compared to our prior guidance of $2.30 to $2.38 per diluted share. This compares
to adjusted income of $2.26 per
diluted share (non-GAAP) for the fourth quarter of fiscal 2016.
This guidance is based on comparable store sales in the range of
flat to +2%.
FISCAL 2017 GUIDANCE
- Increases guidance for fiscal 2017 adjusted income to be in
the range of $4.23 to $4.28 per
diluted share (non-GAAP), representing a 16% to 18% increase
compared to fiscal 2016 adjusted income of $3.64 per diluted share (non-GAAP)
- Estimates fiscal 2017 cash flow of approximately
$180 million
Based on operating results for the first three quarters and our
expectations for the fourth quarter of fiscal 2017 noted above, we
now estimate fiscal 2017 adjusted income to be in the range of
$4.23 to $4.28 per diluted share
(non-GAAP), compared to our prior guidance of $4.15 to $4.25 per diluted share. This compares
to adjusted income of $3.64 per
diluted share (non-GAAP) for fiscal 2016. This annual guidance is
based on a comparable store sales increase of approximately 1% and
total sales up approximately 2% to last year as the comp and the
53rd week in fiscal 2017 are expected to be partially
offset by a lower overall store count.
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Full Year
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2017 Guidance
(1)
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2016
(2)
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Earnings per diluted
share
|
|
$4.23 -
$4.28
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$3.64
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% Change (2017 vs.
2016)
|
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+16% to
+18%
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(1) Non-GAAP -
excludes impact of gain from insurance recovery.
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(2) Non-GAAP
detailed reconciliation provided below.
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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 of fiscal 2017 and provide
commentary on our outlook for the fourth quarter and full year of
fiscal 2017. 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 15, 2017. A replay of this call
will also be available beginning today at 12:00 noon through
December 15 by dialing 1.888.203.1112
(Toll Free USA and Canada) or 1.719.457.0820 (International), and
entering Replay Passcode 8562612. All times are Eastern Time.
Headquartered in Columbus,
Ohio, Big Lots, Inc. (NYSE: BIG) is a community retailer
operating 1,430 BIG LOTS stores in 47 states, dedicated to friendly
service, trustworthy value, and affordable solutions in every
season and category – furniture, food, décor, and more. We exist to
serve everyone like family, providing a better shopping experience
for our customers, valuing and developing our associates, and
creating growth for our shareholders. Big Lots supports the
communities it serves through the Big Lots Foundation, a charitable
organization focused on four areas of need: hunger, housing,
healthcare, and education. For more information about the Company,
visit www.biglots.com.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements in this release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, and such statements are intended to qualify for
the protection of the safe harbor provided by the Act. The words
"anticipate," "estimate," "expect," "objective," "goal," "project,"
"intend," "plan," "believe," "will," "should," "may," "target,"
"forecast," "guidance," "outlook" and similar expressions generally
identify forward-looking statements. Similarly, descriptions of our
objectives, strategies, plans, goals or targets are also
forward-looking statements. Forward-looking statements relate to
the expectations of management as to future occurrences and trends,
including statements expressing optimism or pessimism about future
operating results or events and projected sales, earnings, capital
expenditures and business strategy. Forward-looking statements are
based upon a number of assumptions concerning future conditions
that may ultimately prove to be inaccurate. Forward-looking
statements are and will be based upon management's then-current
views and assumptions regarding future events and operating
performance, and are applicable only as of the dates of such
statements. Although we believe the expectations expressed in
forward-looking statements are based on reasonable assumptions
within the bounds of our knowledge, forward-looking statements, by
their nature, involve risks, uncertainties and other factors, any
one or a combination of which could materially affect our business,
financial condition, results of operations or liquidity.
Forward-looking statements that we make herein and in other
reports and releases are not guarantees of future performance and
actual results may differ materially from those discussed in such
forward-looking statements as a result of various factors,
including, but not limited to, current economic and credit
conditions, the cost of goods, our inability to successfully
execute strategic initiatives, competitive pressures, economic
pressures on our customers and us, the availability of brand name
closeout merchandise, trade restrictions, freight costs, the risks
discussed in the Risk Factors section of our most recent Annual
Report on Form 10-K, and other factors discussed from time to time
in our other filings with the SEC, including Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K. This release should be
read in conjunction with such filings, and you should consider all
of these risks, uncertainties and other factors carefully in
evaluating forward-looking statements.
You are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date thereof. We undertake
no obligation to publicly update forward-looking statements,
whether as a result of new information, future events or otherwise.
You are advised, however, to consult any further disclosures we
make on related subjects in our public announcements and SEC
filings.
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|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
OCTOBER
28
|
|
OCTOBER
29
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
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|
|
ASSETS
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|
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|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$58,012
|
|
$59,743
|
|
|
|
Inventories
|
|
1,038,156
|
|
1,036,337
|
|
|
|
Other current
assets
|
|
118,822
|
|
112,251
|
|
|
|
Total
current assets
|
|
1,214,990
|
|
1,208,331
|
|
|
|
|
|
|
|
|
|
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Property and
equipment - net
|
|
537,563
|
|
540,669
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
47,027
|
|
56,102
|
|
|
Other
assets
|
|
46,529
|
|
42,141
|
|
|
|
|
|
$1,846,109
|
|
$1,847,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
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|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$493,097
|
|
$503,625
|
|
|
|
Property, payroll
and other taxes
|
|
87,007
|
|
88,941
|
|
|
|
Accrued operating
expenses
|
|
77,683
|
|
80,227
|
|
|
|
Insurance
reserves
|
|
41,561
|
|
42,141
|
|
|
|
Accrued salaries
and wages
|
|
31,563
|
|
50,243
|
|
|
|
Income taxes
payable
|
|
865
|
|
1,407
|
|
|
|
Total
current liabilities
|
|
731,776
|
|
766,584
|
|
|
|
|
|
|
|
|
|
|
Long-term
obligations under bank credit facility
|
|
371,900
|
|
362,900
|
|
|
|
|
|
|
|
|
|
|
Deferred
rent
|
|
56,622
|
|
55,291
|
|
|
Insurance
reserves
|
|
56,948
|
|
58,647
|
|
|
Unrecognized tax
benefits
|
|
15,732
|
|
14,639
|
|
|
Other
liabilities
|
|
47,467
|
|
44,107
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
565,664
|
|
545,075
|
|
|
|
|
|
$1,846,109
|
|
$1,847,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
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|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
OCTOBER 28,
2017
|
|
OCTOBER 29,
2016
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$1,110,824
|
100.0
|
|
$1,105,498
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
443,626
|
39.9
|
|
441,992
|
40.0
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
408,314
|
36.8
|
|
409,695
|
37.1
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
29,508
|
2.7
|
|
30,294
|
2.7
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
5,804
|
0.5
|
|
2,003
|
0.2
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(2,077)
|
(0.2)
|
|
(1,665)
|
(0.2)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
405
|
0.0
|
|
673
|
0.1
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
4,132
|
0.4
|
|
1,011
|
0.1
|
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
|
(240)
|
(0.0)
|
|
(365)
|
(0.0)
|
|
|
|
|
|
|
|
|
Net
income
|
|
$4,372
|
0.4
|
|
$1,376
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.10
|
|
|
$0.03
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$0.10
|
|
|
$0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
41,967
|
|
|
44,165
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
557
|
|
|
761
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
42,524
|
|
|
44,926
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$0.25
|
|
|
$0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
39 WEEKS
ENDED
|
|
39 WEEKS
ENDED
|
|
|
|
OCTOBER 28,
2017
|
|
OCTOBER 29,
2016
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$3,628,912
|
100.0
|
|
$3,621,228
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
1,460,401
|
40.2
|
|
1,446,096
|
39.9
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
1,239,440
|
34.2
|
|
1,251,844
|
34.6
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
87,489
|
2.4
|
|
90,770
|
2.5
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
133,472
|
3.7
|
|
103,482
|
2.9
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(4,705)
|
(0.1)
|
|
(3,793)
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
323
|
0.0
|
|
1,031
|
0.0
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
129,090
|
3.6
|
|
100,720
|
2.8
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
44,086
|
1.2
|
|
37,970
|
1.0
|
|
|
|
|
|
|
|
|
Net
income
|
|
$85,004
|
2.3
|
|
$62,750
|
1.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$1.97
|
|
|
$1.37
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$1.95
|
|
|
$1.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
43,155
|
|
|
45,678
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
409
|
|
|
578
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
43,564
|
|
|
46,256
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$0.75
|
|
|
$0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
|
|
OCTOBER 28,
2017
|
|
OCTOBER 29,
2016
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Net cash
used in operating activities
|
|
($70,890)
|
|
($67,964)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(41,602)
|
|
(26,812)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by financing activities
|
|
114,495
|
|
96,150
|
|
|
|
|
|
|
|
|
|
|
Increase in cash
and cash equivalents
|
|
2,003
|
|
1,374
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
56,009
|
|
58,369
|
|
|
|
End of
period
|
|
$58,012
|
|
$59,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
39 WEEKS
ENDED
|
|
39 WEEKS
ENDED
|
|
|
|
|
|
OCTOBER 28,
2017
|
|
OCTOBER 29,
2016
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Net cash
provided by operating activities
|
|
$29,072
|
|
$43,536
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(93,293)
|
|
(71,842)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by financing activities
|
|
71,069
|
|
33,905
|
|
|
|
|
|
|
|
|
|
|
Increase in cash
and cash equivalents
|
|
6,848
|
|
5,599
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
51,164
|
|
54,144
|
|
|
|
End of
period
|
|
$58,012
|
|
$59,743
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(In thousands, except per share
data)
(Unaudited)
The following tables reconcile: selling and administrative
expenses, selling and administrative expense rate, operating
profit, operating profit rate, income tax expense (benefit),
effective income tax rate, net income, and diluted earnings per
share for the third quarter of 2017, the year-to-date 2017, the
third quarter of 2016, the year-to-date 2016, the fourth quarter of
2016, and the full-year 2016 (GAAP financial measures) to adjusted
selling and administrative expenses, adjusted selling and
administrative expense rate, adjusted operating profit, adjusted
operating profit rate, adjusted income tax expense (benefit),
adjusted effective income tax rate, adjusted net income, and
adjusted diluted earnings per share (non-GAAP financial
measures).
Third
quarter of 2017 - Thirteen weeks ended October 28,
2017
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment to
exclude gain on
insurance
recoveries
|
|
As Adjusted
(non-
GAAP)
|
Selling and
administrative expenses
|
$
408,314
|
|
$
3,000
|
|
$
411,314
|
Selling and
administrative expense rate
|
36.8%
|
|
0.3%
|
|
37.0%
|
Operating
profit
|
|
5,804
|
|
(3,000)
|
|
2,804
|
Operating
profit rate
|
|
0.5%
|
|
(0.3%)
|
|
0.3%
|
Income tax
benefit
|
|
(241)
|
|
(1,149)
|
|
(1,390)
|
Effective
income tax rate
|
|
(5.8%)
|
|
(117.0%)
|
|
(122.8%)
|
Net
income
|
|
4,372
|
|
(1,851)
|
|
2,521
|
Diluted
earnings per share
|
|
$
0.10
|
|
$
(0.04)
|
|
$
0.06
|
The above adjusted selling and administrative expenses, adjusted
selling and administrative expense rate, adjusted operating profit,
adjusted operating profit rate, adjusted income tax benefit,
adjusted effective income tax rate, adjusted net income, and
adjusted diluted earnings per share are "non-GAAP financial
measures" as that term is defined by Rule 101 of Regulation G (17
CFR Part 244) and Item 10 of Regulation S-K (17 CFR Part 229).
These non-GAAP financial measures exclude from the most directly
comparable financial measures calculated and presented in
accordance with accounting principles generally accepted in
the United States of America
("GAAP") a pretax gain on insurance recoveries associated with
merchandise-related legal matters of $3,000 ($1,851, net
of tax).
Year-to-date
2017 - Thirty-nine weeks ended October 28,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude gain on
insurance
recoveries
|
|
As Adjusted
(non-
GAAP)
|
Selling and
administrative expenses
|
$
1,239,440
|
|
$
3,000
|
|
$
1,242,440
|
Selling and
administrative expense rate
|
34.2%
|
|
0.1%
|
|
34.2%
|
Operating
profit
|
|
133,472
|
|
(3,000)
|
|
130,472
|
Operating
profit rate
|
|
3.7%
|
|
(0.1%)
|
|
3.6%
|
Income tax
expense
|
|
44,086
|
|
(1,149)
|
|
42,937
|
Effective
income tax rate
|
|
34.2%
|
|
(0.1%)
|
|
34.1%
|
Net
income
|
|
85,004
|
|
(1,851)
|
|
83,153
|
Diluted
earnings per share
|
|
$
1.95
|
|
$
(0.04)
|
|
$
1.91
|
The above adjusted selling and administrative expenses, adjusted
selling and administrative expense rate, adjusted operating profit,
adjusted operating profit rate, adjusted income tax expense,
adjusted effective income tax rate, adjusted net income, and
adjusted diluted earnings per share are "non-GAAP financial
measures" as that term is defined by Rule 101 of Regulation G (17
CFR Part 244) and Item 10 of Regulation S-K (17 CFR Part 229).
These non-GAAP financial measures exclude from the most directly
comparable financial measures calculated and presented in
accordance with GAAP a pretax gain on insurance recoveries
associated with merchandise-related legal matters of $3,000 ($1,851, net
of tax).
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
|
$
409,695
|
|
$
(863)
|
|
$
408,832
|
Selling and
administrative expense rate
|
37.1%
|
|
(0.1%)
|
|
37.0%
|
Operating
profit
|
|
2,003
|
|
863
|
|
2,866
|
Operating
profit rate
|
|
0.2%
|
|
0.1%
|
|
0.3%
|
Income tax
benefit
|
|
(365)
|
|
342
|
|
(23)
|
Effective
income tax rate
|
|
(36.1%)
|
|
34.9%
|
|
(1.2%)
|
Net
income
|
|
1,376
|
|
521
|
|
1,897
|
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 net income, and
adjusted diluted earnings per share are "non-GAAP financial
measures" as that term is defined by Rule 101 of Regulation G (17
CFR Part 244) and Item 10 of Regulation S-K (17 CFR Part 229).
These non-GAAP financial measures exclude from the most directly
comparable financial measures calculated and presented in
accordance with accounting principles generally accepted in
the United States of America
("GAAP") 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
|
$
1,251,844
|
|
$
(4,073)
|
|
$
1,247,771
|
Selling and
administrative expense rate
|
34.6%
|
|
(0.1%)
|
|
34.5%
|
Operating
profit
|
|
103,482
|
|
4,073
|
|
107,555
|
Operating
profit rate
|
|
2.9%
|
|
0.1%
|
|
3.0%
|
Income tax
expense
|
|
37,970
|
|
1,612
|
|
39,582
|
Effective
income tax rate
|
|
37.7%
|
|
0.1%
|
|
37.8%
|
Net
income
|
|
62,750
|
|
2,461
|
|
65,211
|
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 net income, and
adjusted diluted earnings per share are "non-GAAP financial
measures" as that term is defined by Rule 101 of Regulation G (17
CFR Part 244) and Item 10 of Regulation S-K (17 CFR Part 229).
These non-GAAP financial measures exclude from the most directly
comparable financial measures calculated and presented in
accordance with GAAP 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.
Fourth
quarter of 2016 - Thirteen weeks ended January 28,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude pension
costs
|
|
Gain on sale
of
real estate
|
|
As Adjusted
(non-
GAAP)
|
Selling and
administrative expenses
|
$
479,112
|
|
$
(23,693)
|
|
$
3,823
|
|
$
459,242
|
Selling and
administrative expense rate
|
30.3%
|
|
(1.5%)
|
|
0.2%
|
|
29.1%
|
Operating
profit
|
|
144,521
|
|
23,693
|
|
(3,823)
|
|
164,391
|
Operating
profit rate
|
|
9.2%
|
|
1.5%
|
|
(0.2%)
|
|
10.4%
|
Income tax
expense
|
|
53,501
|
|
9,364
|
|
(1,412)
|
|
61,453
|
Effective
income tax rate
|
|
37.3%
|
|
0.3%
|
|
0.0%
|
|
37.6%
|
Net
income
|
|
90,078
|
|
14,329
|
|
(2,411)
|
|
101,996
|
Diluted
earnings per share
|
|
$
1.99
|
|
$
0.32
|
|
$
(0.05)
|
|
$
2.26
|
The above adjusted selling and administrative expenses, adjusted
selling and administrative expense rate, adjusted operating profit,
adjusted operating profit rate, adjusted income tax expense,
adjusted effective income tax rate, adjusted net income, and
adjusted diluted earnings per share are "non-GAAP financial
measures" as that term is defined by Rule 101 of Regulation G (17
CFR Part 244) and Item 10 of Regulation S-K (17 CFR Part 229).
These non-GAAP financial measures exclude from the most directly
comparable financial measures calculated and presented in
accordance with accounting principles generally accepted in
the United States of America
("GAAP"): (1) all costs associated with the Company's pension
plans, as the Company completed termination and distribution
proceedings in the fourth quarter of 2016, which totaled
$23,693 ($14,329, net of tax); and (2) a pretax adjustment
for a gain on the sale of real estate of $3,823 ($2,411, 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
2016 - Fifty-two weeks ended January 28, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude pension
costs
|
|
Gain on sale
of
real estate
|
|
As Adjusted
(non-
GAAP)
|
Selling and
administrative expenses
|
$
1,730,956
|
|
$
(27,766)
|
|
$
3,823
|
|
$
1,707,013
|
Selling and
administrative expense rate
|
33.3%
|
|
(0.5%)
|
|
0.1%
|
|
32.8%
|
Operating
profit
|
|
248,003
|
|
27,766
|
|
(3,823)
|
|
271,946
|
Operating
profit rate
|
|
4.8%
|
|
0.5%
|
|
(0.1%)
|
|
5.2%
|
Income tax
expense
|
|
91,471
|
|
10,976
|
|
(1,412)
|
|
101,035
|
Effective
income tax rate
|
|
37.4%
|
|
0.2%
|
|
0.0%
|
|
37.7%
|
Net
income
|
|
152,828
|
|
16,790
|
|
(2,411)
|
|
167,207
|
Diluted
earnings per share
|
|
$
3.32
|
|
$
0.37
|
|
$
(0.05)
|
|
$
3.64
|
The above adjusted selling and administrative expenses, adjusted
selling and administrative expense rate, adjusted operating profit,
adjusted operating profit rate, adjusted income tax expense,
adjusted effective income tax rate, adjusted net income, and
adjusted diluted earnings per share are "non-GAAP financial
measures" as that term is defined by Rule 101 of Regulation G (17
CFR Part 244) and Item 10 of Regulation S-K (17 CFR Part 229).
These non-GAAP financial measures exclude from the most directly
comparable financial measures calculated and presented in
accordance with GAAP: (1) all costs associated with the Company's
pension plans, as the Company completed termination and
distribution proceedings in 2016, which totaled $27,766 ($16,790,
net of tax); and (2) a pretax adjustment for a gain on the sale of
real estate of $3,823 ($2,411, 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.