Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) (the
“Company”) today reported financial results for the fourth quarter
and full-year fiscal 2021.
Fourth Quarter Summary:
- Total net sales
decreased 2.8% to $501.1 million.
- Comparable store
sales decreased 10.5% from the prior year increase of 8.8%.
Comparable store sales decreased 2.0% compared with the fourth
quarter of fiscal 2019.
- The Company opened
five new stores, ending the quarter with 431 stores in 29 states, a
year-over-year increase in store count of 11.1%.
- Operating income
decreased 32.2% to $57.5 million. Adjusted operating income(1)
decreased 32.1% to $57.3 million and adjusted operating margin(1)
decreased 500 basis points to 11.4%.
- Net income totaled
$44.7 million, or $0.71 per diluted share, as compared with net
income of $64.7 million, or $0.98 per diluted share, in the prior
year.
- Adjusted net
income(1) was $43.9 million, or $0.69 per diluted share, as
compared with prior year adjusted net income of $63.8 million, or
$0.97 per diluted share.
- Adjusted EBITDA(1)
decreased 28.2% to $66.1 million and adjusted EBITDA margin(1)
decreased 470 basis points to 13.2%.
“During the fourth quarter we exceeded our
earnings expectations. We navigated numerous headwinds including
unprecedented inflation in merchandise and transportation costs,
shipping delays of imported product, and backlogs at our
distribution centers. We accomplished this by controlling what we
could by leveraging our vast network of vendor partners, improving
efficiencies in our distribution centers, and keeping a tight
control on expenses. We continued to execute our retail expansion
strategy and deliver great deals to our customers during these
challenging times,” said John Swygert, President and Chief
Executive Officer.
Mr. Swygert continued, “Looking ahead, we are
excited to celebrate our 40th anniversary and have several special
events planned to recognize this milestone. We are also pleased to
announce that for the first time in our Company’s history, we are
launching a store remodel program, which we expect will improve our
customers’ shopping experience and drive higher sales. We remain
highly confident in our business model and expect to see trends
improve as we move through the second half of the year, positioning
us to return to our long-term algorithm.”
Fiscal Year Summary:
- Total net sales decreased 3.1% to
$1.753 billion.
- Comparable store sales decreased 11.1%
from the prior year increase of 15.6%. Comparable store sales
increased 3.6% compared with fiscal 2019.
- The Company opened 46 new stores in
fiscal 2021.
- Operating income decreased 26.3% to
$204.6 million. Adjusted operating income(1) decreased 26.4% to
$204.2 million and adjusted operating margin(1) decreased 370 basis
points to 11.6%.
- Net income totaled
$157.5 million, or $2.43 per diluted share, as compared with net
income of $242.7 million, or $3.68 per diluted share, in the prior
year.
- Adjusted net income(1) was $152.9
million, or $2.36 per diluted share, as compared with prior year
adjusted net income of $208.0 million, or $3.16 per diluted
share.
- Adjusted EBITDA(1)
decreased 22.6% to $237.3 million and adjusted EBITDA
margin(1) decreased 340 basis points to 13.5%.
(1) As used throughout this release,
adjusted operating income, adjusted operating margin, adjusted net
income, adjusted net income per diluted share, EBITDA, adjusted
EBITDA and adjusted EBITDA margin are not measures recognized under
U.S. generally accepted accounting principles (“GAAP”). Please see
the accompanying financial tables which reconcile GAAP to these
non-GAAP measures.
Fourth Quarter Results
Net sales in the fourth quarter of fiscal 2021
totaled $501.1 million, a 2.8% decrease compared with net sales of
$515.8 million in the fourth quarter of fiscal 2020. The decrease
in net sales was primarily due to a comparable store sales decrease
of 10.5% as compared with record sales in the fourth quarter of
fiscal 2020, partially offset by new store unit growth. Late
deliveries of key seasonal product combined with early holiday
shopping impacted sales.
Gross profit decreased 10.6% to $183.0 million
in the fourth quarter of fiscal 2021 from $204.7 million in the
fourth quarter of fiscal 2020. Gross margin decreased 320 basis
points to 36.5% in the fourth quarter of fiscal 2021 from 39.7% in
the fourth quarter of fiscal 2020. The decrease in gross margin in
the fourth quarter of fiscal 2021 is primarily due to increased
supply chain costs, the result of higher import and trucking costs
and, to a lesser extent, higher wage rates in the Company’s
distribution centers, partially offset by an increased merchandise
margin.
Selling, general and administrative expenses,
exclusive of $0.1 million and $0.2 million of gains from insurance
settlements in the fourth quarters of fiscal 2021 and fiscal 2020,
respectively, increased 4.1% to $119.2 million in the fourth
quarter of fiscal 2021 from $114.4 million in the fourth quarter of
fiscal 2020. This increase was primarily driven by higher selling
expenses associated with 43 net additional stores and higher wage
rates in select markets. As a percentage of net sales,
selling, general and administrative expenses, exclusive of the
insurance settlement gains, increased 160 basis points to 23.8% in
the fourth quarter of fiscal 2021 from 22.2% in the fourth quarter
of fiscal 2020. The increase was primarily due to deleveraging as a
result of the decrease in sales.
Operating income totaled $57.5 million in the
fourth quarter of fiscal 2021, a 32.2% decrease from operating
income of $84.7 million in the fourth quarter of fiscal 2020.
Excluding the gains from the insurance settlements, adjusted
operating income(1) decreased 32.1% to $57.3 million in the fourth
quarter of fiscal 2021 from $84.5 million in the fourth quarter of
fiscal 2020. Adjusted operating margin(1) decreased 500 basis
points to 11.4% in the fourth quarter of fiscal 2021 from 16.4% in
the fourth quarter of fiscal 2020 primarily due to the decrease in
gross margin and the deleveraging of selling, general and
administrative expenses as a result of the decrease in sales.
Net income decreased 30.8% to $44.7 million, or
$0.71 per diluted share, in the fourth quarter of fiscal 2021
compared with net income of $64.7 million, or $0.98 per diluted
share, in the fourth quarter of fiscal 2020. Diluted earnings per
share in each of the fourth quarters of fiscal 2021 and fiscal 2020
included a benefit of $0.01 due to excess tax benefits related to
stock-based compensation. Adjusted net income(1), which excludes
these benefits and the after-tax gains from the insurance
settlements, decreased 31.2% to $43.9 million, or $0.69 per diluted
share, in the fourth quarter of fiscal 2021 from $63.8 million, or
$0.97 per diluted share, in the fourth quarter of fiscal 2020.
Adjusted EBITDA(1) totaled $66.1 million in the
fourth quarter of fiscal 2021, decreasing 28.2% from $92.1 million
in the fourth quarter of fiscal 2020. Adjusted EBITDA margin(1)
decreased 470 basis points to 13.2% in the fourth quarter of fiscal
2021 from 17.9% in the fourth quarter of fiscal 2020. Adjusted
EBITDA excludes non-cash stock-based compensation expense and the
gains from the insurance settlements.
Fiscal 2021 Results
Net sales totaled $1.753 billion in fiscal 2021,
a decrease of 3.1% compared with net sales of $1.809 billion in
fiscal 2020. The decrease in net sales was the result of a
comparable store sales decrease of 11.1% as compared with the
record sales in fiscal 2020, partially offset by new store unit
growth.
Gross profit decreased 5.8% to $681.2 million in
fiscal 2021 from $723.4 million in fiscal 2020. Gross margin
decreased 110 basis points to 38.9% in fiscal 2021 from 40.0% in
fiscal 2020. The decrease in gross margin in fiscal 2021 is due to
increased supply chain costs, primarily the result of higher import
and trucking costs and, to a lesser extent, higher wage rates in
the Company’s distribution centers, partially offset by improvement
in the merchandise margin.
Adjusted operating income(1), which excludes
gains from insurance settlements of $0.4 million and $0.2 million
in fiscal 2021 and fiscal 2020, respectively, decreased 26.4% to
$204.2 million in fiscal 2021 compared with $277.3 million in
fiscal 2020. Adjusted operating margin(1) decreased 370 basis
points to 11.6% in fiscal 2021 from 15.3% in fiscal 2020 primarily
as a result of the decrease in gross margin and the deleveraging of
expense components due to the decrease in sales.
Net income decreased 35.1% to $157.5 million, or
$2.43 per diluted share, in fiscal 2021 from $242.7 million, or
$3.68 per diluted share, in fiscal 2020. Diluted earnings per share
in fiscal 2021 and fiscal 2020 included a benefit of $0.06 and
$0.52, respectively, due to excess tax benefits related to
stock-based compensation. Adjusted net income(1), which excludes
these benefits and the after-tax gains from the insurance
settlements, decreased 26.5% to $152.9 million, or $2.36 per
diluted share, in fiscal 2021 from $208.0 million, or $3.16 per
diluted share, in fiscal 2020.
Adjusted EBITDA (1) totaled $237.3 million in
fiscal 2021, a 22.6% decrease from $306.5 million in fiscal 2020.
Adjusted EBITDA margin(1) decreased 340 basis points to 13.5% in
fiscal 2021 from 16.9% in fiscal 2020.
Balance Sheet and Cash Flow
Highlights
The Company's cash and cash equivalents balance
as of the end of fiscal 2021 was $247.0 million compared with
$447.1 million as of the end of fiscal 2020. The Company had no
borrowings outstanding under its $100 million revolving credit
facility and $84.7 million of availability under the facility as of
the end of fiscal 2021. The Company ended the period with total
borrowings, consisting solely of finance lease obligations, of $1.1
million.
During the fourth quarter of fiscal 2021, the
Company invested $20.0 million of cash to repurchase 434,474 shares
of its common stock, resulting in $220.0 million invested in fiscal
2021.
Inventories as of the end of fiscal 2021
increased 32.1% to $467.3 million compared with $353.7 million as
of the end of fiscal 2020, with almost half of the variance
attributable to increased supply chain costs and the remainder
driven by the increased number of stores and the timing of
merchandise receipts. In addition, inventories as of the end of
fiscal 2020 were reduced due to heightened levels of sales
productivity throughout the fourth quarter last year.
Capital expenditures in fiscal 2021, primarily
for new and existing stores, totaled $35.0 million compared with
$30.5 million in fiscal 2020.
Fiscal 2022
Outlook
The Company estimates the following:
For full-year fiscal 2022:
- Total net sales of
$1.908 billion to $1.926 billion;
- Comparable store
sales ranging from flat to an increase of 1.0%;
- The opening of 46
to 48 new stores, including two relocations;
- Gross margin of
approximately 37.2%;
- Operating income of
$182.0 million to $187.0 million;
- Adjusted net
income(2) of $136.0 million to $140.0 million and adjusted net
income per diluted share(2) of $2.15 to $2.22, both of which
exclude excess tax benefits related to stock-based
compensation;
- An effective tax
rate of 25.4%, which excludes excess tax benefits related to
stock-based compensation;
- Diluted weighted
average shares outstanding of 63.0 million; and
- Capital
expenditures of $53 million to $58 million, primarily for new
stores, the expansion of the Company’s York, PA distribution
center, store-level initiatives, and IT projects.
For the first quarter of fiscal
2022:
- Total sales of
$417.0 million to $422.0 million;
- Comparable store
sales ranging from down 15.0% to down 14.0% as we lap stimulus from
the same period last year;
- Gross margin of
approximately 35.8%;
- Operating income of
$26.5 million to $28.0 million; and
- Adjusted net
income(2) of $20.0 million to $21.0 million and adjusted net income
per diluted share(2) of $0.31 to $0.33, both of which exclude
excess tax benefits related to stock-based compensation.
(2) The guidance ranges as provided for adjusted
net income and adjusted net income per diluted share exclude the
excess tax benefits related to stock-based compensation as the
Company cannot predict such estimates without unreasonable
effort.
Conference Call Information
A conference call to discuss fourth quarter and
full-year fiscal 2021 financial results is scheduled for today,
March 23, 2022, at 4:30 p.m. Eastern Time. Investors and analysts
can participate on the conference call by dialing (800) 219-7052 or
(574) 990-1029 and using conference ID #6560876. Interested parties
can also listen to a live webcast or replay of the conference call
by logging on to the investor relations section on the Company’s
website at http://investors.ollies.us/. The replay of the
conference call webcast will be available at the investor relations
website for one year.
About
Ollie’s
We are a highly differentiated and fast growing,
extreme value retailer of brand name merchandise at drastically
reduced prices. We are known for our assortment of merchandise
offered as Good Stuff Cheap®. We offer name brand products, Real
Brands! Real Bargains!®, in every department, including housewares,
food, books and stationery, bed and bath, floor coverings, toys,
health and beauty aids and other categories. We currently operate
436 stores in 29 states throughout half of the United States. For
more information, visit www.ollies.us
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements can
be identified by words such as “could,” “may,” “might,” “will,”
“likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,”
“estimates,” “expects,” “continues,” “projects” and similar
references to future periods, or by the inclusion of forecasts or
projections, the outlook for the Company’s future business,
prospects, financial performance, including our fiscal 2022
business outlook or financial guidance, and industry outlook.
Forward-looking statements are based on our current expectations
and assumptions regarding our business, the economy and other
future conditions. Because forward-looking statements relate to the
future, by their nature, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, our actual results may differ
materially from those contemplated by the forward-looking
statements. Important factors that could cause actual results to
differ materially from those in the forward-looking statements
include regional, national or global political, economic, business,
competitive, market and regulatory conditions, including, but
not limited to, legislation, national trade policy, and the
following: our failure to adequately procure and manage our
inventory or anticipate consumer demand; changes in consumer
confidence and spending; risks associated with our status as a
“brick and mortar” only retailer; risks associated with intense
competition; our failure to open new profitable stores, or
successfully enter new markets, on a timely basis or at all; the
risks associated with doing business with international
manufacturers and suppliers including, but not limited to,
transportation and shipping challenges, and potential increases in
tariffs on imported goods; outbreak of viruses or widespread
illness, including the continued impact of COVID-19 and continuing
or renewed regulatory responses thereto; risks associated with
heightened geopolitical instability due to the Russia/Ukraine
conflict; our inability to operate our stores due to civil unrest
and related protests or disturbances; our failure to properly hire
and to retain key personnel and other qualified personnel; our
inability to obtain favorable lease terms for our properties; the
failure to timely acquire, develop and open, the loss of, or
disruption or interruption in the operations of, our centralized
distribution centers; fluctuations in comparable store sales and
results of operations, including on a quarterly basis; risks
associated with our lack of operations in the growing online retail
marketplace; risks associated with litigation, the expense of
defense, and potential for adverse outcomes; our inability to
successfully develop or implement our marketing, advertising and
promotional efforts; the seasonal nature of our business; risks
associated with the timely and effective deployment, protection,
and defense of computer networks and other electronic systems,
including e-mail; changes in government regulations, procedures and
requirements; risks associated with natural disasters, whether or
not caused by climate change; and our ability to service
indebtedness and to comply with our financial covenants together
with each of the other factors set forth under the heading “Risk
Factors” in our filings with the United States Securities and
Exchange Commission (“SEC”). Any forward-looking statement made by
us in this press release speaks only as of the date on which it is
made. Factors or events that could cause our actual results to
differ may emerge from time to time, and it is not possible for us
to predict all of them. Ollie’s undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future developments or otherwise,
except as may be required by law. You are advised, however,
to consult any further disclosures we make on related subjects in
our public announcements and SEC filings.
Investor Contact: Jean
FontanaICR646-277-1214Jean.Fontana@icrinc.com
Media Contact:Tom KuypersSenior Vice President
– Marketing & Advertising717-657-2300 tkuypers@ollies.us
Ollie’s Bargain Outlet Holdings,
Inc.Condensed Consolidated Statements of
Income(In thousands except for
per share amounts)(Unaudited)
|
13 Weeks |
|
|
13 Weeks |
|
|
52 Weeks |
|
|
52 Weeks |
|
|
Ended |
|
|
Ended |
|
|
Ended |
|
|
Ended |
|
|
January 29, |
|
|
January 30, |
|
January 29, |
|
|
January 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
501,135 |
|
|
$ |
515,763 |
|
|
|
$ |
1,752,995 |
|
|
$ |
1,808,821 |
|
|
Cost of sales |
|
318,094 |
|
|
|
311,106 |
|
|
|
|
1,071,749 |
|
|
|
1,085,455 |
|
|
Gross profit |
|
183,041 |
|
|
|
204,657 |
|
|
|
|
681,246 |
|
|
|
723,366 |
|
|
Selling, general and administrative expenses |
|
119,078 |
|
|
|
114,190 |
|
|
|
|
447,615 |
|
|
|
418,889 |
|
|
Depreciation and amortization expenses |
|
5,255 |
|
|
|
4,409 |
|
|
|
|
19,364 |
|
|
|
16,705 |
|
|
Pre-opening expenses |
|
1,256 |
|
|
|
1,349 |
|
|
|
|
9,675 |
|
|
|
10,272 |
|
|
Operating income |
|
57,452 |
|
|
|
84,709 |
|
|
|
|
204,592 |
|
|
|
277,500 |
|
|
Interest expense (income), net |
|
98 |
|
|
|
(76 |
) |
|
|
|
209 |
|
|
|
(278 |
) |
|
Income before income taxes |
|
57,354 |
|
|
|
84,785 |
|
|
|
|
204,383 |
|
|
|
277,778 |
|
|
Income tax expense |
|
12,627 |
|
|
|
20,125 |
|
|
|
|
46,928 |
|
|
|
35,082 |
|
|
Net income |
$ |
44,727 |
|
|
$ |
64,660 |
|
|
|
$ |
157,455 |
|
|
$ |
242,696 |
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.71 |
|
|
$ |
0.99 |
|
|
|
$ |
2.44 |
|
|
$ |
3.75 |
|
|
Diluted |
$ |
0.71 |
|
|
$ |
0.98 |
|
|
|
$ |
2.43 |
|
|
$ |
3.68 |
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
63,059 |
|
|
|
65,426 |
|
|
|
|
64,447 |
|
|
|
64,748 |
|
|
Diluted |
|
63,270 |
|
|
|
66,096 |
|
|
|
|
64,878 |
|
|
|
65,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of net sales(1) |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
100.0 |
% |
|
100.0 |
|
% |
|
100.0 |
% |
|
100.0 |
|
% |
Cost of sales |
|
63.5 |
|
|
|
60.3 |
|
|
|
|
61.1 |
|
|
|
60.0 |
|
|
Gross profit |
|
36.5 |
|
|
|
39.7 |
|
|
|
|
38.9 |
|
|
|
40.0 |
|
|
Selling, general and administrative expenses |
|
23.8 |
|
|
|
22.1 |
|
|
|
|
25.5 |
|
|
|
23.2 |
|
|
Depreciation and amortization expenses |
|
1.0 |
|
|
|
0.9 |
|
|
|
|
1.1 |
|
|
|
0.9 |
|
|
Pre-opening expenses |
|
0.3 |
|
|
|
0.3 |
|
|
|
|
0.6 |
|
|
|
0.6 |
|
|
Operating income |
|
11.5 |
|
|
|
16.4 |
|
|
|
|
11.7 |
|
|
|
15.3 |
|
|
Interest expense (income), net |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
Income before income taxes |
|
11.4 |
|
|
|
16.4 |
|
|
|
|
11.7 |
|
|
|
15.4 |
|
|
Income tax expense |
|
2.5 |
|
|
|
3.9 |
|
|
|
|
2.7 |
|
|
|
1.9 |
|
|
Net income |
|
8.9 |
% |
|
12.5 |
|
% |
|
9.0 |
% |
|
13.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Components may not add to totals due to rounding. |
|
|
|
|
|
|
|
|
|
|
Ollie’s Bargain Outlet Holdings,
Inc.Condensed Consolidated Balance
Sheets(In
thousands)(Unaudited)
|
January 29, |
|
January 30, |
Assets |
2022 |
|
2021 |
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
246,977 |
|
|
$ |
447,126 |
|
Inventories |
|
467,306 |
|
|
|
353,704 |
|
Accounts receivable |
|
1,372 |
|
|
|
621 |
|
Prepaid expenses and other assets |
|
11,173 |
|
|
|
7,316 |
|
Total current assets |
|
726,828 |
|
|
|
808,767 |
|
Property and equipment, net |
|
147,164 |
|
|
|
138,712 |
|
Operating lease right-of-use assets |
|
420,568 |
|
|
|
380,546 |
|
Goodwill |
|
444,850 |
|
|
|
444,850 |
|
Trade name |
|
230,559 |
|
|
|
230,559 |
|
Other assets |
|
2,203 |
|
|
|
2,421 |
|
Total assets |
$ |
1,972,172 |
|
|
$ |
2,005,855 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Current portion of long-term debt |
$ |
332 |
|
|
$ |
328 |
|
Accounts payable |
|
106,599 |
|
|
|
117,217 |
|
Income taxes payable |
|
2,556 |
|
|
|
10,960 |
|
Current portion of operating lease liabilities |
|
75,535 |
|
|
|
64,732 |
|
Accrued expenses and other |
|
78,246 |
|
|
|
90,559 |
|
Total current liabilities |
|
263,268 |
|
|
|
283,796 |
|
Revolving credit facility |
|
- |
|
|
|
- |
|
Long-term debt |
|
719 |
|
|
|
656 |
|
Deferred income taxes |
|
66,179 |
|
|
|
65,064 |
|
Long-term operating lease liabilities |
|
354,293 |
|
|
|
321,454 |
|
Other long-term liabilities |
|
3 |
|
|
|
4 |
|
Total liabilities |
|
684,462 |
|
|
|
670,974 |
|
Stockholders’ equity: |
|
|
|
Common stock |
|
67 |
|
|
|
66 |
|
Additional paid-in capital |
|
664,293 |
|
|
|
648,949 |
|
Retained earnings |
|
883,722 |
|
|
|
726,267 |
|
Treasury - common stock |
|
(260,372 |
) |
|
|
(40,401 |
) |
Total stockholders’ equity |
|
1,287,710 |
|
|
|
1,334,881 |
|
Total liabilities and stockholders’ equity |
$ |
1,972,172 |
|
|
$ |
2,005,855 |
|
Ollie’s Bargain Outlet Holdings,
Inc.Condensed Consolidated Statements of Cash
Flows(In
thousands)(Unaudited)
|
13 Weeks |
|
13 Weeks |
|
52 Weeks |
|
52 Weeks |
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
January 29, |
|
January 30, |
|
January 29, |
|
January 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Net cash provided by operating activities |
$ |
42,342 |
|
|
$ |
125,340 |
|
|
$ |
45,033 |
|
|
$ |
361,254 |
|
Net cash used in investing activities |
|
(5,317 |
) |
|
|
(4,617 |
) |
|
|
(31,830 |
) |
|
|
(30,448 |
) |
Net cash (used in) provided by financing activities |
|
(19,774 |
) |
|
|
878 |
|
|
|
(213,352 |
) |
|
|
26,370 |
|
Net increase (decrease) in cash and cash equivalents |
|
17,251 |
|
|
|
121,601 |
|
|
|
(200,149 |
) |
|
|
357,176 |
|
Cash and cash equivalents at the beginning of the period |
|
229,726 |
|
|
|
325,525 |
|
|
|
447,126 |
|
|
|
89,950 |
|
Cash and cash equivalents at the end of the period |
$ |
246,977 |
|
|
$ |
447,126 |
|
|
$ |
246,977 |
|
|
$ |
447,126 |
|
Ollie’s Bargain Outlet Holdings,
Inc. Supplemental
Information Reconciliation of GAAP to
Non-GAAP Financial Measures (Dollars in
thousands) (Unaudited)
The Company reports its financial results in
accordance with GAAP. We have included the non-GAAP measures of
adjusted operating income, adjusted operating margin, EBITDA,
adjusted EBITDA, adjusted EBITDA margin, adjusted net income and
adjusted net income per diluted share in this press release as
these are key measures used by our management and our board of
directors to evaluate our operating performance and the
effectiveness of our business strategies, make budgeting decisions,
and evaluate compensation decisions. Management believes it is
useful to investors and analysts to evaluate these non-GAAP
measures on the same basis as management uses to evaluate the
Company’s operating results. We believe that excluding items that
may not be indicative of, or are unrelated to, our core operating
results, and that may vary in frequency or magnitude from net
income and net income per diluted share, enhances the comparability
of our results and provides a better baseline for analyzing trends
in our business.
The tables below reconcile the most directly
comparable GAAP measure to non-GAAP financial measures: operating
income to adjusted operating income, net income to adjusted net
income, net income per diluted share to adjusted net income per
diluted share, and net income to EBITDA and adjusted EBITDA.
Adjusted operating
income excludes gains associated with insurance settlements.
Adjusted net income and adjusted net income per diluted share
exclude the after-tax gain from the insurance settlements and
excess tax benefits related to stock-based compensation, which may
not occur with the same frequency or magnitude in future periods.
We define EBITDA as net income before net interest income or
expense, depreciation and amortization expenses and income taxes.
Adjusted EBITDA represents EBITDA as further adjusted for non-cash
stock-based compensation expense as well as the aforementioned
gains from insurance settlements.
Non-GAAP financial measures should be viewed as
supplementing, and not as an alternative to or substitute for, the
Company’s financial results prepared in accordance with GAAP.
Certain of the items that may be excluded or included in non-GAAP
financial measures may be significant items that could impact the
Company's financial position, results of operations and cash flows
and should therefore be considered in assessing the Company's
actual financial condition and performance. The methods used by the
Company to calculate its non-GAAP financial measures may differ
significantly from methods used by other companies to compute
similar measures. As a result, any non-GAAP financial measures
presented herein may not be comparable to similar measures provided
by other companies.
Reconciliation of GAAP operating income to adjusted
operating income
|
13 Weeks |
|
13 Weeks |
|
52 Weeks |
|
52 Weeks |
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
January 29, |
|
January 30, |
|
January 29, |
|
January 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Operating income |
$ |
57,452 |
|
|
$ |
84,709 |
|
|
$ |
204,592 |
|
|
$ |
277,500 |
|
Gain from insurance settlements |
|
(104 |
) |
|
|
(247 |
) |
|
|
(416 |
) |
|
|
(247 |
) |
Adjusted operating income |
$ |
57,348 |
|
|
$ |
84,462 |
|
|
$ |
204,176 |
|
|
$ |
277,253 |
|
Ollie’s Bargain Outlet Holdings,
Inc. Supplemental
Information Reconciliation of GAAP to
Non-GAAP Financial Measures (In thousands
except for per share
amounts) (Unaudited)
Reconciliation of GAAP net income to adjusted net
income
|
13 Weeks |
|
13 Weeks |
|
52 Weeks |
|
52 Weeks |
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
January 29, |
|
January 30, |
January 29, |
|
January 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Net income |
$ |
44,727 |
|
|
$ |
64,660 |
|
|
$ |
157,455 |
|
|
$ |
242,696 |
|
Gain from insurance settlements |
|
(104 |
) |
|
|
(247 |
) |
|
|
(416 |
) |
|
|
(247 |
) |
Adjustment to provision for income taxes(1) |
|
26 |
|
|
|
62 |
|
|
|
106 |
|
|
|
62 |
|
Excess tax benefits related to stock-based compensation(2) |
|
(795 |
) |
|
|
(691 |
) |
|
|
(4,209 |
) |
|
|
(34,469 |
) |
Adjusted net income |
$ |
43,854 |
|
|
$ |
63,784 |
|
|
$ |
152,936 |
|
|
$ |
208,042 |
|
(1) The effective tax rate used for the
adjustment to the provision for income taxes was the normalized
effective tax rate in the quarter in which the related costs (gains
from insurance settlements) were
incurred.(2) Amount represents the impact from the
recognition of excess tax benefits pursuant to Accounting Standards
Update 2016-09, Stock Compensation.
Reconciliation of GAAP net income per diluted share to
adjusted net income per diluted share
|
|
13 Weeks |
|
13 Weeks |
|
52 Weeks |
|
52 Weeks |
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
|
January 29, |
|
January 30, |
|
January 29, |
|
January 30, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Net income per diluted share |
$ |
0.71 |
|
|
$ |
0.98 |
|
|
$ |
2.43 |
|
|
$ |
3.68 |
|
Adjustments as noted above, per dilutive share: |
|
|
|
|
|
|
|
|
Gain from insurance settlements, net of taxes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Excess tax benefits related to stock-based compensation |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.06 |
) |
|
|
(0.52 |
) |
Adjusted net income per diluted share(1) |
$ |
0.69 |
|
|
$ |
0.97 |
|
|
$ |
2.36 |
|
|
$ |
3.16 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted-average common shares outstanding |
|
63,270 |
|
|
|
66,096 |
|
|
|
64,878 |
|
|
|
65,873 |
|
|
|
|
|
|
|
|
|
|
(1) Components may not add to totals due to rounding. |
|
|
|
|
|
|
|
Ollie’s Bargain Outlet Holdings,
Inc. Supplemental
Information Reconciliation of GAAP to
Non-GAAP Financial Measures (Dollars in
thousands) (Unaudited)
Reconciliation of GAAP net income to EBITDA and adjusted
EBITDA
|
13 Weeks |
|
13 Weeks |
|
52 Weeks |
|
52 Weeks |
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
January 29, |
|
January 30, |
|
January 29, |
|
January 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Net income |
$ |
44,727 |
|
|
$ |
64,660 |
|
|
$ |
157,455 |
|
|
$ |
242,696 |
|
Interest expense (income), net |
|
98 |
|
|
|
(76 |
) |
|
|
209 |
|
|
|
(278 |
) |
Depreciation and amortization expenses |
|
6,704 |
|
|
|
5,899 |
|
|
|
25,114 |
|
|
|
22,746 |
|
Income tax expense |
|
12,627 |
|
|
|
20,125 |
|
|
|
46,928 |
|
|
|
35,082 |
|
EBITDA |
|
64,156 |
|
|
|
90,608 |
|
|
|
229,706 |
|
|
|
300,246 |
|
Gain from insurance settlements |
|
(104 |
) |
|
|
(247 |
) |
|
|
(416 |
) |
|
|
(247 |
) |
Non-cash stock-based compensation expense |
|
2,083 |
|
|
|
1,746 |
|
|
|
8,042 |
|
|
|
6,501 |
|
Adjusted EBITDA |
$ |
66,135 |
|
|
$ |
92,107 |
|
|
$ |
237,332 |
|
|
$ |
306,500 |
|
Key Statistics
|
13 Weeks |
|
13 Weeks |
|
52 Weeks |
|
52 Weeks |
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
January 29, |
|
January 30, |
|
January 29, |
|
January 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
Number of stores open at beginning of period |
|
426 |
|
|
|
385 |
|
|
|
388 |
|
|
|
345 |
|
Number of new stores |
|
5 |
|
|
|
4 |
|
|
|
46 |
|
|
|
46 |
|
Number of closed stores |
|
- |
|
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(4 |
) |
Number of stores re-opened |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
Number of stores open at end of period |
|
431 |
|
|
|
388 |
|
|
|
431 |
|
|
|
388 |
|
|
|
|
|
|
|
|
|
Average net sales per store (in thousands) (1) |
$ |
1,165 |
|
|
$ |
1,321 |
|
|
$ |
4,254 |
|
|
$ |
4,866 |
|
Comparable stores sales change |
|
(10.5 |
)% |
|
|
8.8 |
% |
|
|
(11.1 |
)% |
|
|
15.6 |
% |
Comparable store count – end of period |
|
376 |
|
|
|
339 |
|
|
|
376 |
|
|
|
339 |
|
(1) Average net sales per store
represents the weighted average of total net weekly sales divided
by the number of stores open at the end of each week for the
respective periods presented.
Ollies Bargain Outlet (NASDAQ:OLLI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ollies Bargain Outlet (NASDAQ:OLLI)
Historical Stock Chart
From Jul 2023 to Jul 2024