In the news release, Big Lots Reports Results For The First
Quarter Of Fiscal 2019, issued 31-May-2019 by Big Lots, Inc. over PR Newswire,
the financial table titled "Full Year 2018 - Fifty-two weeks ended
February 2, 2019" was omitted from
the original release, as incorrectly transmitted by PR Newswire.
The complete, corrected release follows:
Big Lots Reports Results For The First Quarter Of Fiscal 2019 Q1
GAAP EPS OF
$0.39 Q1 ADJUSTED EPS OF
$0.92, EXCEEDING GUIDANCE Q1
COMPARABLE STORE SALES INCREASE 1.5% COMPANY INCREASES OUTLOOK FOR
FISCAL 2019
COLUMBUS, Ohio, May 31, 2019 /PRNewswire/ -- Big Lots, Inc.
(NYSE: BIG) today reported income of $15.5
million, or $0.39 per diluted
share, for the first quarter of fiscal 2019 ended May 4, 2019. This result includes after tax
charges totaling $21.4 million, or
$0.53 per diluted share, associated
with early implementation phases of our strategic business
transformation review as well as certain legal settlement loss
contingencies. Excluding these charges, adjusted income totaled
$37.0 million, or $0.92 per diluted share (see non-GAAP table
included later in this release), which compares favorably to our
guidance of adjusted income of $0.65
to $0.75 per diluted share
(non-GAAP). Adjusted income for the first quarter of fiscal 2018
was $40.0 million, or $0.95 per diluted share (non-GAAP).
Comparable store sales increased 1.5% for the first quarter of
fiscal 2019, compared to our guidance of an increase in the low
single digits. Net sales for the first quarter of fiscal 2019
totaled $1,296 million, a 2.2%
increase compared to $1,268 million
for the same period last year, with the increase resulting from
positive comparable store sales and sales growth in high volume new
stores, or non-comp stores, partially offset by a lower store count
year-over-year.
Commenting on today's announcement, Bruce Thorn, President and CEO of Big Lots
stated, "Q1 was a solid start to our new fiscal year with sales
growth and comps in line with guidance and adjusted EPS
meaningfully higher than our expectations. Our first quarter sales
result represents the fourth consecutive quarter of positive comps,
which is encouraging in light of the delayed income tax refunds and
macro weather challenges in many of our markets. I continue to be
very pleased with the progression of certain longer-term strategic
elements of our business and their contribution to our near-term
results, including the strong performance in our Store of the
Future format, the accelerating sales we're seeing in our new
stores, the continued growth of our Rewards loyalty program, and
our ecommerce business, which had its best quarter
life-to-date."
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Earnings per diluted
share
|
|
|
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|
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|
Q1 2019
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Q1 2018
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Earnings per diluted
share
|
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$0.39
|
|
$0.74
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Impact of costs
associated with early implementation
|
|
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phases of our
strategic business transformation review (1)
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$0.39
|
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-
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Impact of legal
settlement loss contingencies (1)
|
|
$0.14
|
|
-
|
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Impact of CEO
retirement (1)
|
|
-
|
|
$0.15
|
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Impact of settlement
of shareholder litigation matters (1)
|
|
-
|
|
$0.06
|
|
|
|
|
|
|
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Earnings per diluted
share - adjusted basis
|
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$0.92
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$0.95
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(1) Non-GAAP
detailed reconciliation provided in our statements
below.
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Inventory and Cash Management
Inventory ended the first quarter of fiscal 2019 at $927 million compared to $850 million for same period last year with the
increase resulting from the general impact of tariffs on higher
first cost of merchandise, our intentional decision to move forward
inventory commitments in key categories of Furniture and Soft Home
to support earlier resets of fresh, new product, and the slower
than anticipated sell through of seasonally sensitive product in Q1
largely due to weather. This growth was partially offset by a lower
store count year-over-year.
We ended the first quarter of fiscal 2019 with $64 million of Cash and Cash Equivalents and
$470 million of borrowings under our
credit facility compared to $65
million of Cash and Cash Equivalents and $174 million of borrowings under our credit
facility as of the end of the first quarter of fiscal 2018. Our
increase in borrowings is a result of the timing of share
repurchase activity year-over-year, elevated investments in
strategic initiatives to support future growth, and the timing of
higher inventory levels as noted above.
Total Cash Returned To Shareholders
As a reminder, on March 6, 2019, our
Board of Directors approved a share repurchase program ("2019 Share
Repurchase Program") providing for the repurchase of up to
$50 million of our common shares in
open market and/or privately negotiated transactions at our
discretion, subject to market conditions and other factors. Through
the first quarter of fiscal 2019, we invested $48 million to purchase 1.3 million shares,
leaving us with approximately $2
million of authorization remaining at the end of the first
quarter. The combination of this share repurchase activity and our
quarterly dividend payment represents approximately $61 million returned to shareholders during the
first quarter of fiscal 2019.
Subsequent to the end of the first quarter of fiscal 2019, we
exhausted the authorization remaining under our 2019 Share
Repurchase Program. In total for the program, we invested
$50 million to repurchase 1.3 million
shares, or approximately 3% of the Company's shares outstanding.
Common shares acquired through the 2019 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
May 29, 2019, our Board of Directors
declared a quarterly cash dividend of $0.30 per common share. This dividend payment of
approximately $12 million is payable
on June 28, 2019, to shareholders of
record as of the close of business on June
14, 2019.
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Q2
|
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Full Year
|
|
|
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2019 Guidance
(1)
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2018
|
|
2019 Guidance
(1)
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2018
(2)
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Earnings per diluted
share
|
|
$0.05 -
$0.15
|
|
$0.59
|
|
$2.85 -
$3.00
|
|
$3.83
|
|
Non-GAAP
items
|
|
~$0.30
|
|
-
|
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~$0.85
|
|
$0.21
|
|
Earnings per diluted
share - adjusted basis
|
|
$0.35 -
$0.45
|
|
$0.59
|
|
$3.70 -
$3.85
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$4.04
|
|
|
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(1) Non-GAAP
items in Q2 of fiscal 2019 principally relate to our strategic
business transformation review.
|
(2) Non-GAAP
detailed reconciliation provided below.
|
FISCAL Q2 2019 GUIDANCE (non-GAAP)
- Provides initial Q2 guidance for adjusted income of
$0.35 to $0.45 per diluted share (non-GAAP), compared to
income of $0.59 per diluted share for
the same period last year
- Provides initial Q2 guidance for comparable store sales
increase in the low single digits
For the second quarter of fiscal 2019, we estimate adjusted
income will be in the range of $0.35
to $0.45 per diluted share
(non-GAAP), compared to income of $0.59 per diluted share for the second quarter of
fiscal 2018. This guidance is based on a comparable store sales
increase in the low single digits.
FISCAL 2019 GUIDANCE (non-GAAP)
- Increases guidance for fiscal 2019 adjusted income to be in
the range of $3.70 to $3.85 per diluted share (non-GAAP), compared to
our prior guidance of adjusted income of $3.55 to $3.75 per
diluted share (non-GAAP)
- Affirms guidance for fiscal 2019 comparable store sales
increase in the low single digits
Based on the actual results for the first quarter and the
guidance provided for the second quarter, we are increasing our
guidance for the full year of fiscal 2019. We estimate fiscal 2019
adjusted income in the range of $3.70
to $3.85 per diluted share
(non-GAAP), compared to our prior guidance of adjusted income of
$3.55 to $3.75 per diluted share (non-GAAP). This compares
to adjusted income of $4.04 per
diluted share (non-GAAP) for fiscal 2018. This outlook is based on
a comparable store sales increase in the low single digits. We
estimate this financial performance will result in adjusted cash
flow (cash provided by operating activities less capital
expenditures and the after tax impact of the non-GAAP items) of
approximately $100 million (or
approximately $65 million when
considering non-GAAP items noted in chart above).
Conference Call/Webcast
We will host a conference call
today at 8:00 a.m. to discuss our
financial results for the first quarter of fiscal 2019 and provide
commentary on our outlook for fiscal 2019. We invite you to listen
to the webcast of the conference call through the Investor
Relations section of our website http://www.biglots.com. If you are
unable to join the live webcast, an archive of the call will be
available through the Investor Relations section of our website
http://www.biglots.com/ after 12:00 noon today and will remain
available through midnight on Friday, June
14, 2019. A replay of this call will also be available
beginning today at 12:00 noon through June
14 by dialing 1.888.203.1112 (Toll Free USA and Canada) or 1.719.457.0820 (International) and
entering Replay Passcode 6062298. All times are Eastern Time.
Headquartered in Columbus,
Ohio, Big Lots, Inc. (NYSE: BIG) is a discount retailer
operating 1,406 BIG LOTS stores in 47 states with product
assortments in the merchandise categories of Furniture, Seasonal,
Soft Home, Food, Consumables, Hard Home, and Electronics, Toys
& Accessories. Our mission is to help people Live BIG and Save
Lots. We strive to be the BIG difference for a better life by
delivering unmatched value to our customers through surprise and
delight, being a "best places to work" culture for our associates,
rewarding our shareholders with consistent growth and top tier
returns, and doing good in our communities as we do well. For more
information about the Company, visit www.biglots.com.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements in this release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, and such statements are intended to qualify for
the protection of the safe harbor provided by the Act. The
words "anticipate," "estimate," "expect," "objective," "goal,"
"project," "intend," "plan," "believe," "will," "should," "may,"
"target," "forecast," "guidance," "outlook" and similar expressions
generally identify forward-looking statements. Similarly,
descriptions of our objectives, strategies, plans, goals or targets
are also forward-looking statements. Forward-looking statements
relate to the expectations of management as to future occurrences
and trends, including statements expressing optimism or pessimism
about future operating results or events and projected sales,
earnings, capital expenditures and business strategy.
Forward-looking statements are based upon a number of assumptions
concerning future conditions that may ultimately prove to be
inaccurate. Forward-looking statements are and will be based upon
management's then-current views and assumptions regarding future
events and operating performance, and are applicable only as of the
dates of such statements. Although we believe the expectations
expressed in forward-looking statements are based on reasonable
assumptions within the bounds of our knowledge, forward-looking
statements, by their nature, involve risks, uncertainties and other
factors, any one or a combination of which could materially affect
our business, financial condition, results of operations or
liquidity.
Forward-looking statements that we make herein and in other
reports and releases are not guarantees of future performance and
actual results may differ materially from those discussed in such
forward-looking statements as a result of various factors,
including, but not limited to, current economic and credit
conditions, the cost of goods, our inability to successfully
execute strategic initiatives, competitive pressures, economic
pressures on our customers and us, the availability of brand name
closeout merchandise, trade restrictions, freight costs, the
risks discussed in the Risk Factors section of our most recent
Annual Report on Form 10-K, and other factors discussed from time
to time in our other filings with the SEC, including Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. This release
should be read in conjunction with such filings, and you should
consider all of these risks, uncertainties and other factors
carefully in evaluating forward-looking statements.
You are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date thereof. We undertake
no obligation to publicly update forward-looking statements,
whether as a result of new information, future events or otherwise.
You are advised, however, to consult any further disclosures we
make on related subjects in our public announcements and SEC
filings.
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
MAY
4
|
|
MAY
5
|
|
|
|
2019
|
|
2018
|
|
|
|
(Unaudited)
|
|
(Recast)
|
|
|
|
|
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|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$63,572
|
|
$64,830
|
|
Inventories
|
|
926,988
|
|
849,627
|
|
Other current
assets
|
|
78,532
|
|
137,714
|
|
Total
current assets
|
|
1,069,092
|
|
1,052,171
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
|
1,156,656
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|
0
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|
|
|
|
|
|
Property and
equipment - net
|
|
735,957
|
|
604,524
|
|
|
|
|
|
|
Deferred income
taxes
|
|
15,418
|
|
21,335
|
Other
assets
|
|
68,522
|
|
48,956
|
|
|
|
$3,045,645
|
|
$1,726,986
|
|
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|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
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|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$314,639
|
|
$342,185
|
|
Current operating
lease liabilities
|
|
236,016
|
|
0
|
|
Property, payroll
and other taxes
|
|
84,016
|
|
80,747
|
|
Accrued operating
expenses
|
|
144,058
|
|
92,080
|
|
Insurance
reserves
|
|
37,492
|
|
72,669
|
|
Accrued salaries
and wages
|
|
32,697
|
|
23,019
|
|
Income taxes
payable
|
|
6,551
|
|
25,612
|
|
Total
current liabilities
|
|
855,469
|
|
636,312
|
|
|
|
|
|
|
Long-term
obligations under bank credit facility
|
|
470,400
|
|
174,000
|
|
|
|
|
|
|
Noncurrent
operating lease liabilities
|
|
960,754
|
|
0
|
Deferred
rent
|
|
0
|
|
59,858
|
Insurance
reserves
|
|
53,018
|
|
56,321
|
Unrecognized tax
benefits
|
|
14,002
|
|
15,165
|
Synthetic lease
obligation
|
|
0
|
|
50,088
|
Other
liabilities
|
|
43,671
|
|
46,130
|
|
|
|
|
|
|
Shareholders'
equity
|
|
648,331
|
|
689,112
|
|
|
|
$3,045,645
|
|
$1,726,986
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
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|
|
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|
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|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
MAY 4,
2019
|
|
MAY 5,
2018
|
|
|
|
|
%
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%
|
|
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|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
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|
|
|
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|
Net
sales
|
|
$1,295,796
|
100.0
|
|
$1,267,983
|
100.0
|
|
|
|
|
|
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|
Gross
margin
|
|
519,047
|
40.1
|
|
511,958
|
40.4
|
|
|
|
|
|
|
|
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|
Selling and
administrative expenses
|
|
460,605
|
35.5
|
|
438,092
|
34.6
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
32,797
|
2.5
|
|
28,529
|
2.2
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
25,645
|
2.0
|
|
45,337
|
3.6
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(3,733)
|
(0.3)
|
|
(1,576)
|
(0.1)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
910
|
0.1
|
|
508
|
0.0
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
22,822
|
1.8
|
|
44,269
|
3.5
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
7,282
|
0.6
|
|
13,030
|
1.0
|
|
|
|
|
|
|
|
|
Net
income
|
|
$15,540
|
1.2
|
|
$31,239
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.39
|
|
|
$0.74
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$0.39
|
|
|
$0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
39,922
|
|
|
42,113
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
80
|
|
|
105
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
40,002
|
|
|
42,218
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$0.30
|
|
|
$0.30
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
MAY 4,
2019
|
|
MAY 5,
2018
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Net cash
provided by operating activities
|
|
$57,435
|
|
$96,885
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(76,766)
|
|
(65,437)
|
|
|
|
|
|
|
|
Net cash
provided by (used in) financing activities
|
|
36,869
|
|
(17,794)
|
|
|
|
|
|
|
Increase in cash
and cash equivalents
|
|
17,538
|
|
13,654
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
Beginning
of period
|
|
46,034
|
|
51,176
|
|
End of
period
|
|
$63,572
|
|
$64,830
|
BIG LOTS, INC. AND SUBSIDIARIES
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
(In thousands, except per
share data)
(Unaudited)
The following tables reconcile: gross margin, gross margin rate,
selling and administrative expenses, selling and administrative
expense rate, operating profit, operating profit rate, income tax
expense, effective income tax rate, net income, and diluted
earnings per share for the first quarter of 2019, the first quarter
of 2018, and the full year 2018 (GAAP financial measures) to
adjusted gross margin, adjusted gross margin rate, 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
(non-GAAP financial measures).
First quarter of
2019 - Thirteen weeks ended May 4, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Impact to
exclude
department exit
inventory
impairment
|
|
Impact to
exclude
transformational
restructuring costs
|
|
Adjustment to
exclude legal
settlement loss
contingencies
|
|
As
Adjusted
(non-GAAP)
|
Gross
margin
|
|
$
|
519,047
|
|
$
|
6,050
|
|
$
|
-
|
|
$
|
-
|
|
$
|
525,097
|
Gross margin
rate
|
|
40.1%
|
|
0.5%
|
|
-
|
|
-
|
|
40.5%
|
Selling and
administrative expenses
|
|
460,605
|
|
-
|
|
(15,333)
|
|
(7,250)
|
|
438,022
|
Selling and
administrative expense rate
|
|
35.5%
|
|
-
|
|
(1.2%)
|
|
(0.6%)
|
|
33.8%
|
Operating
profit
|
|
25,645
|
|
6,050
|
|
15,333
|
|
7,250
|
|
54,278
|
Operating
profit rate
|
|
2.0%
|
|
0.5%
|
|
1.2%
|
|
0.6%
|
|
4.2%
|
Income tax
expense
|
|
7,282
|
|
1,553
|
|
3,935
|
|
1,696
|
|
14,466
|
Effective
income tax rate
|
|
31.9%
|
|
(0.8%)
|
|
(1.6%)
|
|
(1.4%)
|
|
28.1%
|
Net
income
|
|
15,540
|
|
4,497
|
|
11,398
|
|
5,554
|
|
36,989
|
Diluted
earnings per share
|
|
$
|
0.39
|
|
$
|
0.11
|
|
$
|
0.28
|
|
$
|
0.14
|
|
$
|
0.92
|
The above adjusted gross margin, adjusted gross margin rate,
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) an
inventory impairment amount of $6,050
($4,497, net of tax) as a result of a
merchandise department exit; (2) the costs associated with a
transformational restructuring initiative of $15,333 ($11,398,
net of tax); and (3) a pretax charge related to estimated legal
settlement of employee class actions of $7,250 ($5,554, net
of tax).
First
quarter of 2018 - Thirteen weeks ended May 5,
2018
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment to
exclude CEO
retirement costs
|
|
Adjustment
to
exclude
shareholder
litigation matter
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
|
$
|
438,092
|
|
$
|
(7,018)
|
|
$
|
(3,500)
|
|
$
|
427,574
|
Selling and
administrative expense rate
|
|
34.6%
|
|
(0.6%)
|
|
(0.3%)
|
|
33.7%
|
Operating
profit
|
|
45,337
|
|
7,018
|
|
3,500
|
|
55,855
|
Operating
profit rate
|
|
3.6%
|
|
0.6%
|
|
0.3%
|
|
4.4%
|
Income tax
expense
|
|
13,030
|
|
895
|
|
879
|
|
14,804
|
Effective
income tax rate
|
|
29.4%
|
|
(2.1%)
|
|
(0.3%)
|
|
27.0%
|
Net
income
|
|
31,239
|
|
6,123
|
|
2,621
|
|
39,983
|
Diluted
earnings per share
|
|
$
|
0.74
|
|
$
|
0.15
|
|
$
|
0.06
|
|
$
|
0.95
|
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) the costs associated with the retirement
of our former CEO of $7,018
($6,123, net of tax); and (2) a
pretax charge related to the settlement in principle of shareholder
litigation matters of $3,500
($2,621, net of tax).
Full Year
2018 - Fifty-two weeks ended February 2, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude CEO
retirement costs
|
|
Adjustment
to
exclude
shareholder
litigation matter
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
1,778,416
|
|
$
(7,018)
|
|
$
(3,500)
|
|
$
1,767,898
|
Selling and
administrative expense rate
|
34.0%
|
|
(0.1%)
|
|
(0.1%)
|
|
33.8%
|
Operating
profit
|
|
218,509
|
|
7,018
|
|
3,500
|
|
229,027
|
Operating
profit rate
|
|
4.2%
|
|
0.1%
|
|
0.1%
|
|
4.4%
|
Income tax
expense
|
|
50,719
|
|
895
|
|
879
|
|
52,493
|
Effective
income tax rate
|
|
24.4%
|
|
(0.4%)
|
|
(0.0%)
|
|
24.1%
|
Net
income
|
|
156,894
|
|
6,123
|
|
2,621
|
|
165,638
|
Diluted
earnings per share
|
|
$
3.83
|
|
$
0.15
|
|
$
0.06
|
|
$
4.04
|
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) the costs associated with the retirement
of our former CEO of $7,018
($6,123, net of tax); and (2) a
pretax charge related to the settlement in principle of shareholder
litigation matters of $3,500
($2,621, net of tax).
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.