COLUMBUS, Ohio, Nov. 1, 2019 /PRNewswire/ -- Big Lots, Inc.
(NYSE: BIG) today announced the completion of the sale of its
distribution center in Rancho Cucamonga,
California. The facility has been operating since 1984 and
is being sold as a result of the company's move to a new
distribution center in Apple Valley,
California. Located in the Mojave Desert, the Apple Valley distribution center is a 1.4
million square foot facility that will improve speed to market,
capacity, and service to stores with advanced automation including
an automatic storage retrieval system, robotic depalletizers,
carton shuttles, and carton sortation equipment. The company will
utilize the Rancho Cucamonga
distribution center on a leaseback arrangement until the
Apple Valley distribution center
is fully operational in spring 2020.
Cash consideration for the sale was $191
million. The company has reinvested $69 million of the proceeds to exercise a
purchase option on its corporate headquarters in Columbus, Ohio, effected through a qualified
intermediary to accommodate a tax-deferred exchange. Net after-tax
proceeds of approximately $90 million
will be used to pay down a portion of the outstanding balance on
the company's unsecured line of credit. The company will recognize
a one-time, pre-tax gain of approximately $179 million in the third quarter of fiscal
2019.
Commenting on today's announcement, Ronald A. Robins, Jr. (Rocky), Executive Vice
President, General Counsel & Corporate Secretary of Big Lots
stated, "We are pleased to complete the sale of our legacy
California distribution center as
part of the transition to our new, state-of-the-art distribution
center. The net proceeds; in addition to allowing us to effect a
like-kind exchange for our corporate headquarters, will strengthen
our balance sheet and support the continued investments we are
making as part of our Operation North Star strategic
transformation."
About Big Lots
Headquartered in Columbus, Ohio, Big Lots, Inc. (NYSE: BIG) is
a discount retailer operating 1,419 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.
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SOURCE Big Lots, Inc.