COLUMBUS, Ohio, Aug. 27, 2021 /PRNewswire/ -- Big Lots, Inc.
(NYSE: BIG) today reported net income of $37.7 million, or $1.09 per diluted share, for the second quarter
of fiscal 2021 ended July 31, 2021,
which compares to the company's guidance for the second quarter, as
provided on May 28, 2021, of
$1.00 to $1.15 per diluted share. Net income for the
second quarter of fiscal 2020 was $452.0
million, or $11.29 per diluted
share. This result included a one-time, after-tax benefit of
$341.9 million, or $8.54 per diluted share, associated with the sale
and leaseback transactions that closed during the second quarter of
fiscal 2020. Excluding this benefit, adjusted net income for the
second quarter of 2020 was $110.1
million, or $2.75 per diluted
share (see non-GAAP reconciliation included later in this
release).
Net sales for the second quarter of fiscal 2021 totaled
$1,457 million, a 11.4% decrease
compared to $1,644 million for the
same period last year, and an increase of 16.4% compared to the
second quarter of fiscal 2019. The decline to last year was driven
by a comparable sales decrease of 13.2%, as the company lapped an
historic 31.3% comparable sales increase last year. Net new stores
and relocations contributed approximately 180 basis points of sales
growth. On a two-year basis, comparable sales increased 14.0%.
Commenting on today's announcement, Bruce Thorn, President and CEO of Big Lots
stated, "We have completed another solid quarter that demonstrated
the strength of our Operation North Star strategic initiatives,
with continued focus on our growth drivers – customer growth,
merchandise productivity, ecommerce, and store count growth. We saw
two-year comp sales growth across all merchandise categories other
than Food, with strong double digit two-year growth in Furniture,
Soft Home, Hard Home, and Apparel, Electronics & Other.
Furniture sales remain strong and were up over 30% to 2019, led by
continued acceleration in Broyhill. Also within furniture, we are
very enthusiastic about the expanding offering in our entry-level
price-point Real Living brand, which provides great value for our
existing and new customers. Speaking of new customers, we added
nearly 1.7 million new Rewards customers to the Big Lots family
during the quarter. Meanwhile, The LOT! and Queue Line strategies
are now rolled out to 1,225 stores, and continue to drive a
combined 3% sales lift.
Ecommerce demand grew by 10% in the second quarter compared to
fiscal 2020. This represents over 400% growth to the second quarter
of 2019. Demand generated in the ecommerce channel was driven by
strong sell-through in our lawn & garden assortment. In
addition, we posted another quarter of net store count growth, as
we continue to accelerate on this key growth driver. To enhance our
in-store experience, we have now launched Project Refresh, a
multi-year program to upgrade our approximately 800 stores not
included in our prior Store of the Future program.
Finally, we are thrilled with the continued rollout this quarter
of our "Be A BIGionaire" brand campaign. I'm delighted to share
that the campaign is working very well with around 60% of the
transaction lifts coming from new Bigionaires visiting us for the
first time, while also driving incremental visits from existing
customers.
Our results for the quarter were tempered by continued supply
chain and freight headwinds, as well as other inflationary
pressures. Against this backdrop, we continue to invest in our
future growth. Our first forward distribution center became
operational at the end of the quarter, and the second will begin
operations next week."
Mr. Thorn further remarked, "We know that the supply chain
headwinds will continue into Fall and Holiday, and the situation
remains fluid. But our team is working exceptionally hard to get
through this and make sure that our assortments continue to
surprise our customers and deliver phenomenal value! Our 30,000+
Big Lots associates are committed to our mission of helping our
customers Live Big and Save Lots. I am so proud to be a member of
this team, and I am deeply thankful for their unwavering
commitment."
This earnings release and related financial information are
available at biglots.com/corporate/investors. Also available on the
website is an investor presentation highlighting key themes from
the company's Q2 performance and current outlook.
Inventory and Cash Management
Inventory ended the second quarter of fiscal 2021 at $944 million compared to $714 million for the same period last year with
the 32% increase resulting from the lapping of atypically low
inventory levels at the end of the second quarter of fiscal
2020.
The company ended the second quarter of fiscal 2021 with
$293 million of Cash and Cash
Equivalents and no long-term debt, compared to $899 million of Cash and Cash Equivalents and
$43 million of long-term debt as of
the end of the second quarter of fiscal 2020. During the quarter
the company paid down the remaining $44.3
million principal balance under our 2019 Term Note secured
by equipment at its Apple Valley,
California distribution center.
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 second
quarter of fiscal 2021, the company invested $153 million to repurchase 2.4 million shares at
an average cost of $63.57. Through
the end of the second quarter of fiscal 2021, the company had
utilized $403 million under this
authorization to repurchase approximately 7.3 million shares at an
average cost of $55.18. Share
repurchases completed during the second quarter of 2021 contributed
approximately $0.03 to diluted EPS
for the quarter.
Dividend
As also announced in a separate press release, on August 25, 2021, the Board of Directors declared
a quarterly cash dividend of $0.30 per common share. This dividend payment of
approximately $10 million will be
payable on September 24, 2021, to
shareholders of record as of the close of business on September 10, 2021.
Company Outlook
For the third quarter of fiscal 2021 the company expects to
report a diluted loss per share in the range of $0.10 to $0.20,
based on a mid-single digit comparable sales decline, which equates
to a low-double digit two-year comparable sales increase. The
company expects gross margin to be down approximately 175 basis
points to last year, driven by freight headwinds. The company also
expects these headwinds to adversely affect the fourth quarter with
full year gross margin rate down approximately 100 basis points to
last year. For the full year, the company expects a low single
digit comp decline, which incorporates an adverse sales impact from
supply chain disruption. Taking into account the aforementioned
impacts, the company expects full year earnings in the range of
$5.90 to $6.05. The foregoing guidance does not
incorporate further potential share repurchases in the fiscal
year.
Conference Call/Webcast
The company will host a
conference call today at 8:00 a.m. to
discuss the financial results for the second 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, September 10, 2021. A replay of
this call will also be available beginning today at 12:00 p.m. through September 10 by dialing 877.660.6853 (Toll Free)
or 201.612.7415 (Toll) and entering Replay Conference ID 13722207.
All times are Eastern Time.
About Big Lots, Inc.
Headquartered in Columbus, Ohio, Big Lots, Inc. (NYSE: BIG) is
a neighborhood discount retailer operating 1,422 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. A Fortune 500 company and 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 with the ultimate
bargain and 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.
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
JULY
31
|
|
AUGUST
1
|
|
|
2021
|
|
2020
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$293,322
|
|
$898,560
|
|
Inventories
|
943,776
|
|
713,504
|
|
Other current
assets
|
142,066
|
|
83,956
|
|
Total
current assets
|
1,379,164
|
|
1,696,020
|
|
|
|
|
|
Operating lease
right-of-use assets
|
1,652,631
|
|
1,663,020
|
|
|
|
|
|
Property and
equipment - net
|
737,259
|
|
727,091
|
|
|
|
|
|
Deferred income
taxes
|
18,316
|
|
16,597
|
Other
assets
|
35,355
|
|
66,762
|
|
|
$3,822,725
|
|
$4,169,490
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$390,597
|
|
$379,409
|
|
Current operating
lease liabilities
|
218,930
|
|
206,088
|
|
Property, payroll
and other taxes
|
102,477
|
|
93,829
|
|
Accrued operating
expenses
|
137,874
|
|
137,428
|
|
Insurance
reserves
|
36,033
|
|
35,360
|
|
Accrued salaries
and wages
|
72,306
|
|
44,755
|
|
Income taxes
payable
|
1,396
|
|
179,821
|
|
Total
current liabilities
|
959,613
|
|
1,076,690
|
|
|
|
|
|
Long-term
debt
|
0
|
|
43,074
|
|
|
|
|
|
Noncurrent
operating lease liabilities
|
1,492,148
|
|
1,472,307
|
Deferred income
taxes
|
1,287
|
|
4,639
|
Insurance
reserves
|
58,955
|
|
56,333
|
Unrecognized tax
benefits
|
10,392
|
|
10,442
|
Other
liabilities
|
146,961
|
|
177,845
|
|
|
|
|
|
Shareholders'
equity
|
1,153,369
|
|
1,328,160
|
|
|
$3,822,725
|
|
$4,169,490
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
JULY 31,
2021
|
|
AUGUST 1,
2020
|
|
|
|
%
|
|
|
%
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$1,457,374
|
100.0
|
|
$1,644,197
|
100.0
|
|
|
|
|
|
|
|
|
Gross
margin
|
577,797
|
39.6
|
|
683,564
|
41.6
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
488,658
|
33.5
|
|
504,000
|
30.7
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
35,289
|
2.4
|
|
33,974
|
2.1
|
|
|
|
|
|
|
|
|
Gain on sale of
distribution centers
|
0
|
0.0
|
|
(463,053)
|
(28.2)
|
|
|
|
|
|
|
|
Operating
profit
|
53,850
|
3.7
|
|
608,643
|
37.0
|
|
|
|
|
|
|
|
|
Interest
expense
|
(2,296)
|
(0.2)
|
|
(2,548)
|
(0.2)
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
(133)
|
(0.0)
|
|
1,357
|
0.1
|
|
|
|
|
|
|
|
Income before
income taxes
|
51,421
|
3.5
|
|
607,452
|
36.9
|
|
|
|
|
|
|
|
|
Income tax
expense
|
13,714
|
0.9
|
|
155,480
|
9.5
|
|
|
|
|
|
|
|
Net
income
|
$37,707
|
2.6
|
|
$451,972
|
27.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$1.11
|
|
|
$11.52
|
|
|
|
|
|
|
|
|
|
Diluted
|
$1.09
|
|
|
$11.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
34,004
|
|
|
39,239
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
712
|
|
|
801
|
|
|
|
|
|
|
|
|
|
Diluted
|
34,716
|
|
|
40,040
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$0.30
|
|
|
$0.30
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
26 WEEKS
ENDED
|
|
26 WEEKS
ENDED
|
|
|
JULY 31,
2021
|
|
AUGUST 1,
2020
|
|
|
|
%
|
|
|
%
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$3,082,926
|
100.0
|
|
$3,083,346
|
100.0
|
|
|
|
|
|
|
|
|
Gross
margin
|
1,231,744
|
40.0
|
|
1,254,320
|
40.7
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
986,076
|
32.0
|
|
962,631
|
31.2
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
69,266
|
2.2
|
|
71,664
|
2.3
|
|
|
|
|
|
|
|
|
Gain on sale of
distribution centers
|
0
|
0.0
|
|
(463,053)
|
(15.0)
|
|
|
|
|
|
|
|
Operating
profit
|
176,402
|
5.7
|
|
683,078
|
22.2
|
|
|
|
|
|
|
|
|
Interest
expense
|
(4,864)
|
(0.2)
|
|
(5,870)
|
(0.2)
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
827
|
0.0
|
|
(1,960)
|
(0.1)
|
|
|
|
|
|
|
|
Income before
income taxes
|
172,365
|
5.6
|
|
675,248
|
21.9
|
|
|
|
|
|
|
|
|
Income tax
expense
|
40,095
|
1.3
|
|
173,953
|
5.6
|
|
|
|
|
|
|
|
Net
income
|
$132,270
|
4.3
|
|
$501,295
|
16.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$3.81
|
|
|
$12.79
|
|
|
|
|
|
|
|
|
|
Diluted
|
$3.75
|
|
|
$12.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
34,676
|
|
|
39,184
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
643
|
|
|
419
|
|
|
|
|
|
|
|
|
|
Diluted
|
35,319
|
|
|
39,603
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$0.60
|
|
|
$0.60
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
JULY 31,
2021
|
|
AUGUST 1,
2020
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Net cash
(used in) provided by operating activities
|
($62,135)
|
|
$322,263
|
|
|
|
|
|
|
Net cash
(used in) provided by investing activities
|
(44,916)
|
|
546,499
|
|
|
|
|
|
|
Net cash
used in financing activities
|
(212,956)
|
|
(282,074)
|
|
|
|
|
|
(Decrease)
increase in cash and cash equivalents
|
(320,007)
|
|
586,688
|
|
Cash and cash
equivalents:
|
|
|
|
|
Beginning
of period
|
613,329
|
|
311,872
|
|
End of
period
|
$293,322
|
|
$898,560
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
26 WEEKS
ENDED
|
|
26 WEEKS
ENDED
|
|
|
JULY 31,
2021
|
|
AUGUST 1,
2020
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Net cash
provided by operating activities
|
$142,158
|
|
$468,384
|
|
|
|
|
|
|
Net cash
(used in) provided by investing activities
|
(77,086)
|
|
517,586
|
|
|
|
|
|
|
Net cash
used in financing activities
|
(331,306)
|
|
(140,131)
|
|
|
|
|
|
(Decrease)
increase in cash and cash equivalents
|
(266,234)
|
|
845,839
|
|
Cash and cash
equivalents:
|
|
|
|
|
Beginning
of period
|
559,556
|
|
52,721
|
|
End of
period
|
$293,322
|
|
$898,560
|
BIG LOTS, INC. AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(In thousands, except per share
data)
(Unaudited)
The following tables reconcile: selling and administrative
expenses, selling and administrative expense rate, gain on sale of
distribution centers, gain on sale of distribution centers rate,
operating profit, operating profit rate, income tax expense,
effective income tax rate, net income, and diluted earnings per
share for the second quarter of 2020, the year-to-date 2020, and
the full year 2020 (GAAP financial measures) to adjusted selling
and administrative expenses, adjusted selling and administrative
expense rate, adjusted gain on sale of distribution centers,
adjusted gain on sale of distribution centers 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).
Second
quarter of 2020 - Thirteen weeks ended August 1,
2020
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude gain on
sale of distribution
centers and related
expenses
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
504,000
|
|
$
(3,956)
|
|
$
500,044
|
Selling and
administrative expense rate
|
30.7%
|
|
(0.2%)
|
|
30.4%
|
Gain on sale
of distribution centers
|
(463,053)
|
|
463,053
|
|
-
|
Gain on sale
of distribution centers rate
|
(28.2%)
|
|
28.2%
|
|
-
|
Operating
profit
|
608,643
|
|
(459,097)
|
|
149,546
|
Operating
profit rate
|
37.0%
|
|
(27.9%)
|
|
9.1%
|
Income tax
expense
|
155,480
|
|
(117,194)
|
|
38,286
|
Effective
income tax rate
|
25.6%
|
|
0.2%
|
|
25.8%
|
Net
income
|
451,972
|
|
(341,903)
|
|
110,069
|
Diluted
earnings per share
|
$
11.29
|
|
$
(8.54)
|
|
$
2.75
|
The above adjusted selling and administrative expenses, adjusted
selling and administrative expense rate, adjusted gain on sale of
distribution centers, adjusted gain on sale of distribution centers
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") a gain resulting from the sale of our
Columbus, OH; Durant, OK; Montgomery, AL; and Tremont, PA distribution centers and the
related expenses of $459,097
($341,903, net of tax).
Year-to-date
2020 - Twenty-six weeks ended August 1, 2020
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude gain on
sale of distribution
centers and related
expenses
|
|
As
Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
962,631
|
|
$
(3,956)
|
|
$
958,675
|
Selling and
administrative expense rate
|
31.2%
|
|
(0.1%)
|
|
31.1%
|
Gain on sale
of distribution centers
|
(463,053)
|
|
463,053
|
|
-
|
Gain on sale
of distribution centers rate
|
(15.0%)
|
|
15.0%
|
|
-
|
Operating
profit
|
683,078
|
|
(459,097)
|
|
223,981
|
Operating
profit rate
|
22.2%
|
|
(14.9%)
|
|
7.3%
|
Income tax
expense
|
173,953
|
|
(117,194)
|
|
56,759
|
Effective
income tax rate
|
25.8%
|
|
0.5%
|
|
26.3%
|
Net
income
|
501,295
|
|
(341,903)
|
|
159,392
|
Diluted
earnings per share
|
$
12.66
|
|
$
(8.63)
|
|
$
4.02
|
The above adjusted selling and administrative expenses, adjusted
selling and administrative expense rate, adjusted gain on sale of
distribution centers, adjusted gain on sale of distribution centers
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 a gain resulting from the sale of
our Columbus, OH; Durant, OK; Montgomery, AL; and Tremont, PA distribution centers and the
related expenses of $459,097
($341,903, net of tax).
Full Year
2020 - Fifty-two weeks ended January 30, 2021
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude gain on
sale of distribution
centers and related
expenses
|
|
As Adjusted
(non-GAAP)
|
Selling and
administrative expenses
|
$
2,497,386
|
|
$
(3,956)
|
|
$
2,493,430
|
Selling and
administrative expense rate
|
40.3%
|
|
(0.1%)
|
|
40.2%
|
Gain on sale
of distribution centers
|
(463,053)
|
|
463,053
|
|
-
|
Gain on sale
of distribution centers rate
|
(7.5%)
|
|
7.5%
|
|
-
|
Operating
profit
|
856,548
|
|
(459,097)
|
|
397,451
|
Operating
profit rate
|
13.8%
|
|
(7.4%)
|
|
6.4%
|
Income tax
expense
|
215,415
|
|
(117,194)
|
|
98,221
|
Effective
income tax rate
|
25.5%
|
|
(0.0%)
|
|
25.5%
|
Net
income
|
629,191
|
|
(341,903)
|
|
287,288
|
Diluted
earnings per share
|
$
16.11
|
|
$
(8.75)
|
|
$
7.35
|
The above adjusted selling and administrative expenses, adjusted
selling and administrative expense rate, adjusted gain on sale of
distribution centers, adjusted gain on sale of distribution centers
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 a gain resulting from the sale of
our Columbus, OH; Durant, OK; Montgomery, AL; and Tremont, PA distribution centers and the
related expenses of $459,097
($341,903, 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.