COLUMBUS, Ohio, May 28, 2021 /PRNewswire/ -- Big Lots, Inc.
(NYSE: BIG) today reported net income of $94.6 million, or $2.62 per diluted share, for the first quarter of
fiscal 2021 ended May 1, 2021, which
compares to the company's guidance, as provided on March 5, 2021, of $1.30 to $1.45 per
diluted share. Net income for the first quarter of fiscal 2020
was $49.3 million, or $1.26 per diluted share. Net sales for the first
quarter of fiscal 2021 totaled $1,626
million, a 13% increase compared to $1,439 million for the same period last year,
with the growth resulting from an 11.3% increase in comparable
sales and sales growth from new and relocated non-comp stores.
Remarking on today's announcement, Bruce
Thorn, President and CEO of Big Lots stated, "We have
completed a record first quarter that was driven both by our
underlying Operation North Star strategic initiatives and by
customer response to a third round of stimulus distributions that
began in March. For the quarter, we saw double digit growth across
all merchandise categories other than Food and Consumables, which
were greatly bolstered last year by quarantine-related stock-up
spending early in the pandemic. We also saw notable strength
in our Seasonal assortment, particularly lawn & garden, while
Broyhill, launched just last year, drove $225 million in sales for the quarter across our
Furniture and Home assortments, continuing its rapid progress
toward becoming an established $1
billion brand. Additionally, our ecommerce business grew
30%, and our Rewards program reached a record high number of active
members.
Our outstanding results for the quarter were achieved despite
significant supply chain and freight headwinds, which we expect to
continue through the balance of the year. Meanwhile, we are taking
other important steps to strengthen our business. These include
rolling out our forward distribution center strategy to relieve
pressure at our regional distribution centers and more efficiently
process bulk items such as furniture; strengthening our vendor
partnerships to create even greater value for our customers and
improve assortment availability; and investing in data-driven space
planning technology designed to enhance our customer satisfaction
and per-store productivity through more relevant location- based
assortments. We are excited by our results, but know that we still
have many opportunities for growth and improvement across the
business."
Mr. Thorn further remarked, "Big Lots is growing in a productive
and sustainable manner and we are doing so knowing that our goal is
to create the best value for our customer so that she can Live Big
and Save Lots. Our growth is driven by our Operation North
Star, but is fulfilled by our 37,000 associates across our stores,
the distribution centers, and in our home office. I am so proud to
be a member of this team and I am deeply thankful for their
unwavering commitment."
Inventory and Cash Management
Inventory ended the first quarter of fiscal 2021 at $901.5 million compared to $806.6 million for the same period last year, an
increase of 11.8%. Excluding in-transit, on-hand inventory was up
approximately 3.0% to the prior year.
The company ended the first quarter of fiscal 2021 with
$613 million of Cash and Cash Equivalents and $32 million of Long-term Debt, compared to
$312 million of Cash and Cash
Equivalents and $437 million of
Long-term Debt as of the end of the first quarter of fiscal
2020.
Share Repurchase Authorization
As previously announced, on August 27,
2020 the company's Board of Directors authorized the
repurchase of up to $500 million of
the company's outstanding common shares. The authorization may be
utilized to repurchase shares in the open market and/or in
privately negotiated transactions at the company's discretion,
subject to market conditions and other factors. In the first
quarter of fiscal 2021, we invested $78
million to repurchase 1.1 million shares at an average cost
of $67.45. Through the end of the
first quarter of fiscal 2021, we had utilized $250 million under this authorization to
repurchase 4.9 million shares, at an average cost of $51.07.
Dividend
As announced in a separate press release, on May 26, 2021 the Board of Directors declared a
quarterly cash dividend of $0.30
per common share. This dividend payment of approximately
$10.5 million will be payable on
June 25, 2021, to shareholders of record as of the close of
business on June 11, 2021.
Company Outlook
The Company continues to believe it does not have sufficient
visibility to provide full year guidance. Based on currently
available information, for the second quarter of fiscal 2021 the
Company expects to achieve diluted earnings per share in the range
of $1.00 to $1.15, based on a low double digit comparable
sales decline which equates to a two-year stacked comparable sales
increase of around 20%. The foregoing second quarter guidance does
not incorporate further anticipated share repurchases pursuant to
the remaining $250 million available
under the $500 million share
repurchase authorization approved by the Company's Board of
Directors on August 27, 2020.
Conference Call/Webcast
The company will host a
conference call today at 8:00 a.m. to
discuss the financial results for the first quarter of
fiscal 2021. A webcast of the conference call is
available through the Investor Relations section of the company's
website http://www.biglots.com. An archive of the call will be
available through the Investor Relations section of the company's
website http://www.biglots.com/after 12:00
p.m. today and will remain available through midnight on
Friday, June 11, 2021. A replay of
this call will also be available beginning today at 12:00 p.m. through June
11 by dialing 877.660.6853 (Toll Free) or 201.612.7415
(Toll) and entering Replay Conference ID 13719566 All times are
Eastern Time.
Headquartered in Columbus,
Ohio, Big Lots, Inc. (NYSE: BIG) is a neighborhood discount
retailer operating 1,414 stores in 47 states, as well as a
best-in-class ecommerce platform with expanded capabilities via
BOPIS, curbside pickup, Instacart and Big Lots NOW with same day
delivery. The company's product assortment is focused on home
essentials: Furniture, Seasonal, Soft Home, Food, Consumables, and
Hard Home. Ranked #1 on Total Retail's 2020 Top
100 Omnichannel Retailers list, Big Lots' mission is to
help people Live BIG and Save Lots. The company strives to be the
BIG difference for a better life by delivering unmatched value to
customers through the ultimate treasure hunt shopping experience,
being a "best place to work" culture for associates, rewarding
shareholders with consistent growth and top-tier returns, and doing
good in local communities. 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," "approximate," "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 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 the company believes the
expectations expressed in forward-looking statements are based on
reasonable assumptions within the bounds of knowledge,
forward-looking statements, by their nature, involve risks,
uncertainties and other factors, any one or a combination of which
could materially affect business, financial condition, results of
operations or liquidity.
Forward-looking statements that the company makes 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, developments related to the COVID-19
coronavirus pandemic, current economic and credit conditions, the
cost of goods, the inability to successfully execute strategic
initiatives, competitive pressures, economic pressures on customers
and the company, the availability of brand name closeout
merchandise, trade restrictions, freight costs, the
risks discussed in the Risk Factors section of the company's
most recent Annual Report on Form 10-K, and other factors discussed
from time to time in 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. The company
undertakes 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 the company makes on related subjects in public
announcements and SEC filings.
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BIG LOTS, INC. AND
SUBSIDIARIES
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CONDENSED
CONSOLIDATED BALANCE SHEETS
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(In
thousands)
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MAY
1
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MAY
2
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2021
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2020
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(Unaudited)
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(Unaudited)
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ASSETS
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Current
assets:
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Cash and cash
equivalents
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$613,329
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$311,872
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Inventories
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901,482
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806,559
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Other current
assets
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114,001
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75,978
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Total
current assets
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1,628,812
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1,194,409
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Operating lease
right-of-use assets
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1,631,817
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1,206,133
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Property and
equipment - net
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723,158
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849,857
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Deferred income
taxes
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17,741
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6,161
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Other
assets
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36,008
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65,226
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$4,037,536
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$3,321,786
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LIABILITIES AND
SHAREHOLDERS'
EQUITY
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Current
liabilities:
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Accounts
payable
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$380,942
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$275,461
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Current operating
lease liabilities
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219,367
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207,899
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Property, payroll
and other taxes
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112,532
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96,248
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Accrued operating
expenses
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158,136
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138,212
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Insurance
reserves
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34,803
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35,572
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Accrued salaries
and wages
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73,799
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34,622
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Income taxes
payable
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70,340
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16,903
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Total
current liabilities
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1,049,919
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804,917
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Long-term
debt
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32,063
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436,684
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Noncurrent
operating lease liabilities
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1,466,090
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1,046,711
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Deferred income
taxes
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3,805
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41,171
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Insurance
reserves
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59,379
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56,759
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Unrecognized tax
benefits
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10,601
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10,279
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Other
liabilities
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147,177
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41,332
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Shareholders'
equity
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1,268,502
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883,933
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$4,037,536
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$3,321,786
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BIG LOTS, INC. AND
SUBSIDIARIES
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
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(In thousands,
except per share data)
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13 WEEKS
ENDED
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13 WEEKS
ENDED
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MAY 1,
2021
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MAY 2,
2020
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%
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%
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(Unaudited)
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(Unaudited)
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Net
sales
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$1,625,552
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100.0
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$1,439,149
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100.0
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Gross
margin
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653,947
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40.2
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570,756
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39.7
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Selling and
administrative expenses
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497,418
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30.6
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458,631
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31.9
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Depreciation
expense
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33,977
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2.1
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37,690
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2.6
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Operating
profit
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122,552
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7.5
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74,435
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5.2
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Interest
expense
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(2,568)
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(0.2)
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(3,322)
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(0.2)
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Other income
(expense)
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960
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0.1
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(3,317)
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(0.2)
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Income before
income taxes
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120,944
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7.4
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67,796
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4.7
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Income tax
expense
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26,381
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1.6
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18,473
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1.3
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Net
income
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$94,563
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5.8
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$49,323
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3.4
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Earnings per
common share
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Basic
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$2.68
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$1.26
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Diluted
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$2.62
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$1.26
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Weighted average
common shares outstanding
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Basic
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35,349
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39,129
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Dilutive effect of
share-based awards
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693
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111
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Diluted
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36,042
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39,240
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Cash dividends
declared per common share
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$0.30
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$0.30
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BIG LOTS, INC. AND
SUBSIDIARIES
|
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CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
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(In
thousands)
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13 WEEKS
ENDED
|
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13 WEEKS
ENDED
|
|
|
|
|
|
MAY 1,
2021
|
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MAY 2,
2020
|
|
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(Unaudited)
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(Unaudited)
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Net cash
provided by operating activities
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$204,293
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$146,121
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Net cash
used in investing activities
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(32,170)
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(28,913)
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Net cash
(used in) provided by financing activities
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(118,350)
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141,943
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Increase in cash
and cash equivalents
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53,773
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259,151
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Cash and cash
equivalents:
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Beginning
of period
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559,556
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52,721
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End of
period
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$613,329
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$311,872
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SOURCE Big Lots, Inc.