Company reports record results and raises
fiscal year 2022 guidance
Second Quarter Fiscal 2022 Highlights
- Total comparable club sales increased by 19.8%
year-over-year.
- Comparable club sales, excluding gasoline sales, increased by
7.6% year-over-year.
- Membership fee income increased by 11.3% year-over-year to
$98.8 million.
- Digitally enabled sales growth was 47.0% year-over-year.
- Earnings per diluted share of $1.03 reflects a 28.8%
year-over-year increase.
- Adjusted earnings per diluted share of $1.06 reflects a 29.3%
year-over-year increase.
- Cash from operating activities was $443.1 million and free cash
flow was $300.4 million.
- Expansion plans remain on track with 11 new club openings
expected in fiscal year 2022.
BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) (the "Company")
today announced its financial results for the thirteen and
twenty-six weeks ended July 30, 2022.
“Our strong results in the second quarter were led by gains in
traffic and market share as we continued to deliver tremendous
value across virtually every aspect of our business,” said Bob
Eddy, President and Chief Executive Officer, BJ’s Wholesale Club.
“Our relentless focus on investing in our long-term initiatives has
put us in a place to capitalize on current trends and deliver this
strong performance. Our member base is growing in both quality and
size. We are improving our merchandising to offer more value. We
are growing our digital business, offering more convenience and
optionality for our members. We are expanding our footprint into
new and existing markets with success. Our business model is
designed to work well in the current consumer environment where
value is king and we believe we are well-positioned for growth by
doing what we do best – delivering great value to our members.”
Key Measures for the Thirteen Weeks Ended July 30, 2022
(Second Quarter of Fiscal 2022) and for the Twenty-Six Weeks Ended
July 30, 2022 (First Half of Fiscal 2022):
BJ'S WHOLESALE CLUB HOLDINGS,
INC.
(Amounts in thousands, except per share
amounts)
13 Weeks Ended July 30,
2022
13 Weeks Ended July 31,
2021
%
Growth
26 Weeks Ended July 30,
2022
26 Weeks Ended July 31,
2021
%
Growth
Net sales
$
5,005,030
$
4,088,402
22.4
%
$
9,404,840
$
7,870,236
19.5
%
Membership fee income
98,786
88,753
11.3
%
195,411
175,141
11.6
%
Total revenues
5,103,816
4,177,155
22.2
%
9,600,251
8,045,377
19.3
%
Operating income
202,910
163,784
23.9
%
353,227
290,038
21.8
%
Income from continuing operations
141,014
110,997
27.0
%
253,471
192,583
31.6
%
Adjusted EBITDA (a)
273,700
220,140
24.3
%
494,501
422,549
17.0
%
Net income
141,007
110,988
27.0
%
253,457
192,567
31.6
%
EPS (b)
1.03
0.80
28.8
%
1.85
1.39
33.1
%
Adjusted net income (a)
144,296
113,324
27.3
%
262,722
213,019
23.3
%
Adjusted EPS (a)
1.06
0.82
29.3
%
1.92
1.54
24.7
%
Basic weighted average shares
outstanding
134,341
135,521
(0.9
) %
134,293
135,615
(1.0
) %
Diluted weighted average shares
outstanding
136,567
138,197
(1.2
) %
136,635
138,430
(1.3
) %
(a) See “Note Regarding Non-GAAP Financial
Information.”
(b) EPS represents earnings per diluted
share.
Additional Highlights:
- Total comparable club sales increased by 19.8% in the second
quarter of fiscal 2022 compared to the second quarter of fiscal
2021. Excluding the impact of gasoline sales, comparable club sales
increased by 7.6% in the second quarter of fiscal 2022 compared to
the second quarter of fiscal 2021. Total comparable club sales
increased by 17.2% in the first half of fiscal 2022 compared to the
first half of fiscal 2021. Excluding the impact of gasoline sales,
comparable club sales increased by 5.9% in the first half of fiscal
2022 compared to the first half of fiscal 2021.
- Gross profit increased to $860.0 million in the second quarter
of fiscal 2022 from $763.5 million in the second quarter of fiscal
2021. Merchandise gross margin rate, which excludes gasoline sales
and membership fee income, decreased 50 basis points over the
second quarter of fiscal 2021. Merchandise margins were impacted by
increased freight costs as well as investments in inflationary
categories and markdowns in general merchandise inventory. Gross
profit increased to $1,651.2 million in the first half of fiscal
2022 from $1,490.3 million in the first half of fiscal 2021.
Merchandise gross margin rate, which excludes gasoline sales and
membership fee income, decreased 40 basis points in the first half
of fiscal 2022. Merchandise margins were impacted by increased
freight costs as well as investments in inflationary
categories.
- Selling, general and administrative expenses ("SG&A")
increased to $651.2 million in the second quarter of fiscal 2022
compared to $598.1 million in the second quarter of fiscal 2021.
SG&A increased to $1,287.2 million in the first half of fiscal
2022 compared to $1,198.0 million in the first half of fiscal 2021.
The increase in both comparative periods was primarily driven by
increased labor costs as a result of last year’s wage investments
as well as the acquisition, integration and operating expenses
related to the acquisition of assets from Burris Logistics.
- Operating income increased to $202.9 million, or 4.0% of total
revenues, in the second quarter of fiscal 2022 compared to $163.8
million, or 3.9% of total revenues, in the second quarter of fiscal
2021. Operating income increased to $353.2 million, or 3.7% of
total revenues, in the first half of fiscal 2022 compared to $290.0
million, or 3.6% of total revenues, in the first half of fiscal
2021.
- Adjusted EBITDA increased 24.3% to $273.7 million in the second
quarter of fiscal 2022 compared to $220.1 million in the second
quarter of fiscal 2021. Adjusted EBITDA increased 17.0% to $494.5
million in the first half of fiscal 2022 compared to $422.5 million
in the first half of fiscal 2021.
- Income tax expense increased to $51.0 million in the second
quarter of fiscal 2022 compared to $36.4 million in the second
quarter of fiscal 2021. Income tax expense increased to $81.0
million in the first half of fiscal 2022 compared to $61.7 million
in the first half of fiscal 2021. For both periods, this increase
was primarily due to higher operating income year-over-year.
- Under its existing share repurchase program, the Company
repurchased 353,000 shares of common stock, totaling $22.8 million
in the second quarter of fiscal 2022. In the first half of fiscal
2022, the Company repurchased 923,506 shares of common stock,
totaling $58.6 million, under such program.
- On May 2, 2022, the Company completed its acquisition of four
distribution centers and related private transportation fleet from
Burris Logistics, bringing its end-to-end perishable supply chain
in-house. As a result, all assets, liabilities and results of
operations related to this acquisition are reflected in the
Company’s financials beginning in the second quarter of fiscal
2022. The total consideration paid by the Company was $375.6
million, inclusive of inventory, of which approximately $90.0
million was recorded as part of merchandise inventories in the
Company’s Consolidated Balance Sheet as of July 30, 2022.
- On July 28, 2022, the Company entered into a new five-year
revolving credit facility (“ABL Revolving Facility”) that increased
the total committed amount from $1.0 billion to $1.2 billion. The
new ABL Revolving Facility provides additional financial
flexibility to execute on the Company’s strategic initiatives.
Fiscal 2022 Ending January 28, 2023 Outlook
“Our outlook on the business is strong given the sustained
strength in our grocery business and our gains in market share,”
said Laura Felice, Executive Vice President, Chief Financial
Officer, BJ's Wholesale Club. “We expect fiscal year 2022
comparable club sales growth, excluding the impact of gasoline
sales, to be in the 4%-5% range, up from our original guidance of
low single digit. While we expect continued merchandise margin rate
pressure, we also expect fiscal year 2022 EPS to be in the $3.50 to
$3.60 range, up from our original guidance of approximately $3.25.
We remain confident that the strength of our core business and our
intense focus on delivering value will continue to drive long-term
growth.”
Conference Call Details
A conference call to discuss the second quarter of fiscal 2022
financial results is scheduled for today, August 18, 2022, at 8:30
A.M. Eastern Time. The live audio webcast of the call can be
accessed under the “Events & Presentations” section of the
Company’s investor relations website at https://investors.bjs.com
and will remain available for one year. Participants may also dial
(844) 200-6205 within the U.S. or (929) 526-1599 outside the U.S.
and reference conference ID 989079. A telephonic replay will be
available two hours after the conclusion of the call for one week
and can be accessed by dialing (929) 458-6194 or (866) 813-9403 and
referencing conference ID 844786.
About BJ’s Wholesale Club Holdings, Inc.
Headquartered in Marlborough, Massachusetts, BJ’s Wholesale Club
Holdings, Inc. (NYSE: BJ) is a leading operator of membership
warehouse clubs in the Eastern United States focused on delivering
significant value to its members. The Company provides a curated
assortment of grocery, general merchandise, gasoline and other
ancillary services to offer a differentiated shopping experience
that is further enhanced by its omnichannel capabilities. Since
pioneering the warehouse club model in New England in 1984, the
Company currently operates 229 clubs and 160 BJ's Gas® locations in
17 states. For more information, please visit us at www.bjs.com or
on Facebook, Twitter or Instagram.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including, without limitation,
statements regarding our strategic priorities; our anticipated
fiscal 2022 outlook; and our future progress, as well as statements
that include the words “expect,” “intend,” “plan,” “believe,”
“project,” “forecast,” “estimate,” “may,” “should,” “anticipate”
and similar statements of a future or forward-looking nature. These
forward-looking statements are based on management’s current
expectations. These statements are neither promises nor guarantees,
but involve known and unknown risks, uncertainties and other
important factors that may cause actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements, including, but not limited to:
uncertainties in the financial markets, consumer and small business
spending patterns and debt levels; our dependence on having a large
and loyal membership; domestic and international economic
conditions, including inflation and exchange rates; our ability to
procure the merchandise we sell at the best possible prices; the
effects of competition and regulation; our dependence on vendors to
supply us with quality merchandise at the right time and at the
right price; breaches of security or privacy of member or business
information; conditions affecting the acquisition, development,
ownership or use of real estate; our capital spending; actions of
vendors; our ability to attract and retain a qualified management
team and other team members; costs associated with employees
(generally including health care costs), energy and certain
commodities, geopolitical conditions (including tariffs); the risks
and uncertainties related to the impact of the COVID-19 pandemic,
including the duration, scope and severity of the pandemic,
federal, state and local government actions or restrictive measures
implemented in response to COVID-19, the effectiveness of such
measures, as well as the effect of any relaxation or revocation of
current restrictions, and the direct and indirect impact of such
measures; changes in our product mix or in our revenues from
gasoline sales; our failure to successfully maintain a relevant
omnichannel experience for our members; risks related to our growth
strategy to open new clubs; risks related to our e-commerce
business; our ability to realize the benefits of the Burris
acquisition; and other important factors discussed under the
caption “Risk Factors” in our Form 10-K filed with the U.S.
Securities and Exchange Commission (“SEC”) on March 17, 2022, which
is accessible on the SEC’s website at www.sec.gov. These and other
important factors could cause actual results to differ materially
from those indicated by the forward-looking statements made in this
press release. Any such forward-looking statements represent
management’s estimates as of the date of this press release. While
we may elect to update such forward-looking statements at some
point in the future, unless required by law, we disclaim any
obligation to do so, even if subsequent events cause our views to
change. Thus, one should not assume that our silence over time
means that actual events are bearing out as expressed or implied in
such forward-looking statements. These forward-looking statements
should not be relied upon as representing our views as of any date
subsequent to the date of this press release.
Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized
under United States generally accepted accounting principles
(“GAAP”). Please see “Note Regarding Non-GAAP Financial
Information" and “Reconciliation of GAAP to Non-GAAP Financial
Information” below for additional information and a reconciliation
of the Non-GAAP financial measures to the most comparable GAAP
financial measures.
BJ'S WHOLESALE CLUB HOLDINGS,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Amounts in thousands, except per share
amounts)
(Unaudited)
Thirteen Weeks
Ended July 30, 2022
Thirteen Weeks
Ended July 31, 2021
Twenty-Six Weeks
Ended July 30, 2022
Twenty-Six Weeks
Ended July 31, 2021
Net sales
$
5,005,030
$
4,088,402
$
9,404,840
$
7,870,236
Membership fee income
98,786
88,753
195,411
175,141
Total revenues
5,103,816
4,177,155
9,600,251
8,045,377
Cost of sales
4,243,769
3,413,625
7,949,043
6,555,122
Selling, general and administrative
expenses
651,236
598,113
1,287,180
1,198,023
Pre-opening expense
5,901
1,633
10,801
2,194
Operating income
202,910
163,784
353,227
290,038
Interest expense, net
10,874
16,428
18,715
35,713
Income from continuing operations before
income taxes
192,036
147,356
334,512
254,325
Provision for income taxes
51,022
36,359
81,041
61,742
Income from continuing operations
141,014
110,997
253,471
192,583
Loss from discontinued operations, net of
income taxes
(7
)
(9
)
(14
)
(16
)
Net income
$
141,007
$
110,988
$
253,457
$
192,567
Income per share attributable to common
stockholders - basic:
Income from continuing operations
$
1.05
$
0.82
$
1.89
$
1.42
Loss from discontinued operations
—
—
—
—
Net income
$
1.05
$
0.82
$
1.89
$
1.42
Income per share attributable to common
stockholders - diluted:
Income from continuing operations
$
1.03
$
0.80
$
1.86
$
1.39
Loss from discontinued operations
—
—
(0.01
)
—
Net income
$
1.03
$
0.80
$
1.85
$
1.39
Weighted average number of shares
outstanding:
Basic
134,341
135,521
134,293
135,615
Diluted
136,567
138,197
136,635
138,430
BJ'S WHOLESALE CLUB HOLDINGS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Amounts in thousands, except per share
amounts)
(Unaudited)
July 30, 2022
July 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
163,681
$
42,414
Accounts receivable, net
204,495
169,135
Merchandise inventories
1,376,526
1,033,555
Prepaid expense and other current
assets
57,844
46,446
Total current assets
1,802,546
1,291,550
Operating lease right-of-use assets,
net
2,192,548
2,138,690
Property and equipment, net
1,232,103
841,521
Goodwill
1,008,816
924,134
Intangibles, net
120,123
129,881
Deferred taxes
4,525
2,973
Other assets
26,583
18,850
Total assets
$
6,387,244
$
5,347,599
LIABILITIES
Current liabilities:
Short-term debt
$
350,000
$
—
Current portion of operating lease
liabilities
171,568
134,421
Accounts payable
1,243,286
1,029,726
Accrued expenses and other current
liabilities
719,291
675,049
Total current liabilities
2,484,145
1,839,196
Long-term lease liabilities
2,118,467
2,069,148
Long-term debt
699,406
747,730
Deferred income taxes
64,354
41,635
Other noncurrent liabilities
167,281
161,538
STOCKHOLDERS' EQUITY
853,591
488,352
Total liabilities and stockholders'
equity
$
6,387,244
$
5,347,599
BJ'S WHOLESALE CLUB HOLDINGS,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Amounts in thousands, except per share
amounts)
(Unaudited)
Twenty-Six Weeks Ended July
30, 2022
Twenty-Six Weeks Ended July
31, 2021
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income
$
253,457
$
192,567
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
97,093
89,834
Amortization of debt issuance costs and
accretion of original issue discount
1,663
1,724
Debt extinguishment charges
389
657
Stock-based compensation expense
18,502
34,634
Deferred income tax provision
(benefit)
12,212
(6,260
)
Changes in operating leases and other
non-cash items
32,067
3,187
Increase (decrease) in cash due to changes
in:
Accounts receivable
(29,605
)
3,584
Merchandise inventories
(45,519
)
172,140
Accounts payable
130,503
41,652
Accrued expenses
(31,019
)
26,049
Other operating assets and liabilities,
net
3,309
(455
)
Net cash provided by operating
activities
443,052
559,313
CASH FLOWS FROM INVESTING
ACTIVITIES
Additions to property and equipment, net
of disposals and proceeds from sale leaseback transactions
(188,860
)
(128,728
)
Acquisition
(376,521
)
—
Net cash used in investing activities
(565,381
)
(128,728
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Payments on long term debt
(50,000
)
—
Payments on First Lien Term Loan
—
(100,000
)
Proceeds from revolving lines of
credit
905,000
—
Payments on revolving lines of credit
(555,000
)
(260,000
)
Debt issuance costs paid
(2,701
)
—
Net cash received from stock option
exercises
5,018
4,913
Net cash received from Employee Stock
Purchase Program (ESPP)
2,331
1,877
Acquisition of treasury stock
(74,530
)
(79,269
)
Proceeds from financing obligations
13,083
1,333
Changes in finance leases and other
financing activities
(2,627
)
(543
)
Net cash provided by (used in) financing
activities
240,574
(431,689
)
Net increase (decrease) in cash and cash
equivalents
118,245
(1,104
)
Cash and cash equivalents at beginning of
period
45,436
43,518
Cash and cash equivalents at end of
period
$
163,681
$
42,414
Note Regarding Non-GAAP Financial Information
This press release includes financial measures that are not
calculated in accordance with GAAP, including adjusted net income,
adjusted net income per diluted share, adjusted EBITDA, free cash
flow, net debt and net debt to last twelve months (“LTM”) adjusted
EBITDA.
We define adjusted net income as net income attributable to
common stockholders adjusted for: stock-based compensation related
to acceleration of stock awards; acquisition and integration costs;
incremental home office expense; severance; charges related to debt
payments; gain or loss on cash flow hedge; and the tax impact of
the foregoing adjustments on net income.
We define adjusted net income per diluted share as adjusted net
income divided by the weighted-average diluted shares
outstanding.
We define adjusted EBITDA as income from continuing operations
before interest expense, net, provision for income taxes and
depreciation and amortization, adjusted for the impact of certain
other items, including: stock-based compensation expense;
pre-opening expenses; acquisition and integration costs; non-cash
rent; severance and other adjustments.
We define free cash flow as net cash provided by operating
activities less additions to property and equipment, net of
disposals, plus proceeds from sale leaseback transactions.
We define net debt as total debt outstanding less cash and cash
equivalents.
We define net debt to LTM adjusted EBITDA as net debt at the
balance sheet date divided by adjusted EBITDA for the trailing
twelve-month period.
We present adjusted net income, adjusted net income per diluted
share and adjusted EBITDA, which are not recognized financial
measures under GAAP, because we believe such measures assist
investors and analysts in comparing our operating performance
across reporting periods on a consistent basis by excluding items
that we do not believe are indicative of our core operating
performance. In addition, adjusted EBITDA excludes pre-opening
expenses, because we do not believe these expenses are indicative
of the underlying operating performance of our clubs. The amount
and timing of pre-opening expenses are dependent on, among other
things, the size of new clubs opened and the number of new clubs
opened during any given period.
Management believes that adjusted net income, adjusted net
income per diluted share and adjusted EBITDA are helpful in
highlighting trends in our core operating performance compared to
other measures, which can differ significantly depending on
long-term strategic decisions regarding capital structure, the tax
jurisdictions in which companies operate and capital investments.
We use adjusted net income, adjusted net income per diluted share
and adjusted EBITDA to supplement GAAP measures of performance in
the evaluation of the effectiveness of our business strategies; to
make budgeting decisions; and to compare our performance against
that of other peer companies using similar measures. We also use
adjusted EBITDA in connection with establishing discretionary
annual incentive compensation.
We present free cash flow, which is not a recognized financial
measure under GAAP, because we use it to report to our Board of
Directors and we believe it assists investors and analysts in
evaluating our liquidity. Free cash flow should not be considered
as an alternative to cash flows from operations as a liquidity
measure. We present net debt and net debt to LTM adjusted EBITDA,
which are not recognized as financial measures under GAAP, because
we use them to report to our Board of Directors and we believe they
assist investors and analysts in evaluating our borrowing capacity.
Net debt to LTM adjusted EBITDA is a key financial measure that is
used by management to assess the borrowing capacity of the
Company.
You are encouraged to evaluate these adjustments and the reasons
we consider them appropriate for supplemental analysis. In
evaluating adjusted net income, adjusted net income per diluted
share, adjusted EBITDA and net debt to LTM adjusted EBITDA, you
should be aware that in the future we may incur expenses that are
the same as or like some of the adjustments in our presentation of
these metrics. Our presentation of adjusted net income, adjusted
net income per diluted share, adjusted EBITDA, free cash flow, net
debt and net debt to LTM adjusted EBITDA should not be considered
as alternatives to any other measure derived in accordance with
GAAP and they should not be construed as an inference that the
Company’s future results will be unaffected by unusual or
non-recurring items. There can be no assurance that we will not
modify the presentation of adjusted net income, adjusted net income
per diluted share, adjusted EBITDA or net debt to LTM adjusted
EBITDA in the future, and any such modification may be material. In
addition, adjusted net income, adjusted net income per diluted
share, adjusted EBITDA, free cash flow, net debt and net debt to
LTM adjusted EBITDA may not be comparable to similarly titled
measures used by other companies in our industry or across
different industries. Additionally, adjusted net income, adjusted
net income per diluted share, adjusted EBITDA, free cash flow, net
debt and net debt to LTM adjusted EBITDA have limitations as
analytical tools, and you should not consider them in isolation or
as a substitute for analysis of our results as reported under
GAAP.
Reconciliation of GAAP to Non-GAAP Financial
Information
BJ'S WHOLESALE CLUB HOLDINGS,
INC.
Reconciliation of net income to
adjusted net income and adjusted net income per diluted
share
(Amounts in thousands, except per share
amounts)
(Unaudited)
13 Weeks Ended
July 30, 2022
13 Weeks Ended
July 31, 2021
26 Weeks Ended
July 30, 2022
26 Weeks Ended
July 31, 2021
Net income as reported
$
141,007
$
110,988
$
253,457
$
192,567
Adjustments:
Stock-based compensation related to
acceleration of stock awards (a)
—
—
—
17,494
Acquisition and integration costs (b)
3,587
—
11,467
—
Incremental home office expense (c)
600
—
1,199
—
(Gain) loss on cash flow hedge (d)
—
3,245
(165
)
7,954
Charges related to debt payments (e)
389
—
389
657
Severance (f)
—
—
—
2,300
Tax impact of adjustments to net income
(g)
(1,287
)
(909
)
(3,624
)
(7,953
)
Adjusted net income
$
144,296
$
113,324
$
262,722
$
213,019
Weighted-average diluted shares
outstanding
136,567
138,197
136,635
138,430
Adjusted net income per diluted share
(h)
$
1.06
$
0.82
$
1.92
$
1.54
(a) Represents accelerated vesting of equity awards, which were
related to the passing of a former executive.
(b) Represents costs related to the acquisition and integration
of assets from Burris Logistics, including due diligence, legal,
and other consulting expenses.
(c) Represents incremental rent expense as the Company
transitions from the current home office to a new home office
building in fiscal 2022.
(d) Represents the reclassification into earnings of accumulated
other comprehensive income associated with the de-designation of
hedge accounting.
(e) Represents the expensing of fees and deferred fees and
original issue discount associated with the partial prepayment of
debt in fiscal 2021 and extinguishment cost related to the ABL
Facility in fiscal 2022.
(f) Represents severance charges associated with labor
reductions that resulted from the realignment of our field
operations.
(g) Represents the tax effect of the above adjustments at a
statutory tax rate of approximately 28%.
(h) Adjusted net income per diluted share is measured using
weighted average diluted shares outstanding.
BJ'S WHOLESALE CLUB HOLDINGS,
INC.
Reconciliation to Adjusted
EBITDA
(Amounts in thousands)
(Unaudited)
13 Weeks Ended
July 30, 2022
13 Weeks Ended
July 31, 2021
26 Weeks Ended
July 30, 2022
26 Weeks Ended
July 31, 2021
Income from continuing
operations
$
141,014
$
110,997
$
253,471
$
192,583
Interest expense, net
10,874
16,428
18,715
35,713
Provision for income taxes
51,022
36,359
81,041
61,742
Depreciation and amortization
49,984
45,448
97,093
89,834
Stock-based compensation expense
9,387
7,334
18,502
34,634
Pre-opening expenses (a)
5,901
1,633
10,801
2,194
Non-cash rent (b)
1,256
1,765
2,102
3,182
Acquisition and integration costs (c)
3,588
—
11,467
—
Severance (d)
—
—
—
2,300
Other adjustments (e)
674
176
1,309
367
Adjusted EBITDA
$
273,700
$
220,140
$
494,501
$
422,549
(a) Represents direct incremental costs of opening or relocating
a facility that are charged to operations as incurred.
(b) Consists of an adjustment to remove the non-cash portion of
rent expense.
(c) Represents costs related to the acquisition and integration
of assets from Burris Logistics, including due diligence, legal,
and other consulting expenses.
(d) Represents severance charges associated with labor
reductions that resulted from the realignment of our field
operations.
(e) Other non-cash items, including non-cash accretion on asset
retirement obligations, obligations associated with our
post-retirement medical plan and incremental rent expense as the
Company transitions from the current home office to a new home
office building in fiscal 2022.
BJ'S WHOLESALE CLUB HOLDINGS,
INC.
Reconciliation to Free Cash
Flow
(Amounts in thousands)
(Unaudited)
13 Weeks Ended
July 30, 2022
13 Weeks Ended
July 31, 2021
26 Weeks Ended
July 30, 2022
26 Weeks Ended
July 31, 2021
Net cash provided by operating
activities
$
398,744
$
310,348
$
443,052
$
559,313
Less: Additions to property and equipment,
net of disposals
101,001
73,118
191,534
147,808
Plus: Proceeds from sale leaseback
transactions
2,674
2,450
2,674
19,080
Free cash flow
$
300,417
$
239,680
$
254,192
$
430,585
BJ'S WHOLESALE CLUB HOLDINGS,
INC.
Reconciliation of Net Debt and Net Debt
to LTM adjusted EBITDA
(Amounts in thousands)
(Unaudited)
July 30, 2022
Total debt
$
1,049,406
Less: Cash and cash equivalents
163,681
Net Debt
$
885,725
Income from continuing operations
$
487,648
Interest expense, net
42,446
Provision for income taxes
150,418
Depreciation and amortization
187,806
Stock-based compensation expense
37,705
Pre-opening expenses
23,509
Non-cash rent
5,066
Acquisition and integration costs
14,971
Other adjustments
1,933
Adjusted EBITDA
$
951,502
Net debt to LTM adjusted EBITDA
0.9x
See descriptions of adjustments in the “Reconciliation to
Adjusted EBITDA (unaudited)” table above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220818005242/en/
Investor: Catherine Park Vice President, Investor
Relations cpark@bjs.com 774-512-6744
Media: Peter Frangie Vice President, Corporate
Communications pfrangie@bjs.com 774-512-6978
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