COLUMBUS, Ohio, Dec. 3, 2021 /PRNewswire/ -- Big Lots, Inc.
(NYSE: BIG) today reported a net loss of $4.3 million, or $0.14 per share, for the third quarter of fiscal
2021 ended October 30, 2021, which
compares to the company's guidance for the third quarter, as
provided on August 27, 2021, of a
$0.10 to $0.20 loss per share. Net income for the third
quarter of fiscal 2020 was $29.9
million, or $0.76 per diluted
share.
Net sales for the third quarter of fiscal 2021 totaled
$1,336 million, a 3.1% decrease
compared to $1,378 million for the
same period last year, and an increase of 14.4% compared to the
third quarter of fiscal 2019. The decline to last year was driven
by a comparable sales decrease of 4.7%, as the company lapped a
17.8% comparable sales increase last year. Net new stores and
relocations contributed approximately 160 basis points of sales
growth. On a two-year basis, comparable sales increased 12.3%.
Commenting on today's results announcement, Bruce Thorn, President and CEO of Big Lots
stated, "We are pleased to have delivered the quarter in line with
our guidance, and to have sustained double-digit two-year comps
despite supply chain challenges and the expiration of stimulus
benefits. Our absolute focus coming into Q4 has been to position
ourselves appropriately with inventory and deliver an excellent
Holiday for our customers, and our fourth quarter is off to a
strong start with November comps up 10% on a two-year basis,
including record Thanksgiving and Black Friday week sales. Supply
chain challenges will continue in the near-term, but we are
aggressively managing through them by partnering closely with our
manufacturing and transportation partners, strategically
prioritizing receipts, creating new capacity with our forward
distribution centers and DC by-pass program, and ensuring we are
competitive in recruiting and retaining DC associates. In addition,
we have taken pricing actions and will continue to do so in
response to volatile supply chain costs, while continuing to
deliver great value for our customers.
Looking forward, we expect to post a new record sales year in
2022, and we have ever-increasing confidence that our key growth
drivers under Operation North Star – materially growing merchandise
productivity, accelerating new store growth, and continuing to ramp
up our ecommerce capabilities – represent a huge white space
opportunity for us. In addition, we expect to see gross margin
expansion in 2022 driven by promotional and pricing optimization,
the deployment of new planning capabilities, and favorable mix
effects. As we look towards closing out 2021 and beginning a new
year, we are primed, pumped and laser focused on being the best
destination home discount store."
Commenting on today's share repurchase authorization
announcement, Bruce Thorn added,
"Returning capital to shareholders is a key component of our
long-term value creation model. We are pleased to have this new
repurchase authorization in place, alongside our continuing
quarterly dividend, and that we can deliver capital return while
continuing to invest in our high-return internal growth
strategies."
Inventory and Cash Management
Inventory ended the third quarter of fiscal 2021 at $1,277 million compared to $1,089 million for the same period last year. The
17% increase resulted from the lapping of atypically low inventory
levels at the end of the third quarter of fiscal 2020, planned
inventory builds to support key growth categories, and elevated
inventory costs.
The company ended the third quarter of fiscal 2021 with
$71 million of Cash and Cash
Equivalents and no Long-term Debt, compared to $548 million of Cash and Cash Equivalents and
$39 million of Long-term Debt as of
the end of the third quarter of fiscal 2020.
Share Repurchase Authorization
On December 1, 2021, the company's
Board of Directors authorized a new repurchase of up to
$250 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. Pursuant to the authorization, shares
may be repurchased commencing December 8,
2021, and the authorization is open-ended.
During the third quarter, the company completed the $500 million share repurchase authorized by its
Board of Directors on August 27,
2020, investing the remaining $97
million under the authorization to repurchase 2.0 million
shares at an average cost of $47.43.
In total, the company repurchased approximately 9.3 million shares
at an average cost of $53.49 under
the August 2020 authorization.
Dividend
As also announced in a separate press release, on December 1, 2021, the Board of Directors declared
a quarterly cash dividend of $0.30
per common share. This dividend payment of approximately
$9 million will be payable on
December 29, 2021, to shareholders of
record as of the close of business on December 15, 2021.
Company Outlook
For the fourth quarter of fiscal 2021 the company expects to report
diluted earnings per share in the range of $2.05 to $2.20,
based on a slightly positive comparable sales increase, which
equates to a high single digit two-year comparable sales increase.
The company expects fourth quarter gross margin to be down
approximately 150 basis points to last year, driven by freight
headwinds. For the full year, the company expects a negative low
single digit decrease in comparable sales, equating to a
double-digit positive comparable sales increase on a two year
basis. The company expects a sales benefit of approximately 180
basis points for the fourth quarter as a result of net new store
openings. The impact of freight headwinds for the full year is
expected to result in a 120 basis point decline in full year gross
margin compared to last year. Reflecting the above, the company
expects full year diluted earnings per share in the range of
$5.70 to $5.85. 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 third 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
after 12:00 p.m. today and will
remain available through midnight on Friday,
December 17, 2021. A replay of this call will also be
available beginning today at 12:00
p.m. through December 17 by
dialing 877.660.6853 (Toll Free) or 201.612.7415 (Toll) and
entering Replay Conference ID 13725023. All times are Eastern
Time.
About Big Lots, Inc.
Headquartered in Columbus, Ohio, Big Lots, Inc. (NYSE: BIG) is
a neighborhood discount retailer and a Fortune 500 company,
operating 1,428 stores in 47 states, as well as a best-in-class
ecommerce platform with expanded capabilities via BOPIS, curbside
pickup, Instacart and 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 and the recipient of Home
Textiles Today's 2021 Retail Titan Award, 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 exceptional value to
customers through the ultimate treasure hunt shopping experience,
building a "best places to grow" culture, rewarding shareholders
with consistent growth and top-tier returns, and doing good in
local communities. For more information about the company, visit
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)
|
|
|
|
|
|
|
|
|
|
|
|
OCTOBER
30
|
|
OCTOBER
31
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$70,596
|
|
$547,831
|
|
|
|
Inventories
|
|
1,277,225
|
|
1,089,068
|
|
|
|
Other current
assets
|
|
148,959
|
|
84,814
|
|
|
|
Total
current assets
|
|
1,496,780
|
|
1,721,713
|
|
|
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
|
1,745,291
|
|
1,679,054
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment - net
|
|
738,673
|
|
721,668
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
16,055
|
|
15,428
|
|
|
Other
assets
|
|
35,524
|
|
66,533
|
|
|
|
|
|
$4,032,323
|
|
$4,204,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$605,336
|
|
$569,434
|
|
|
|
Current operating
lease liabilities
|
|
235,473
|
|
215,027
|
|
|
|
Property, payroll
and other taxes
|
|
104,806
|
|
99,399
|
|
|
|
Accrued operating
expenses
|
|
123,304
|
|
142,162
|
|
|
|
Insurance
reserves
|
|
35,616
|
|
34,094
|
|
|
|
Accrued salaries
and wages
|
|
74,648
|
|
40,049
|
|
|
|
Income taxes
payable
|
|
508
|
|
52,813
|
|
|
|
Total
current liabilities
|
|
1,179,691
|
|
1,152,978
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
0
|
|
39,434
|
|
|
|
|
|
|
|
|
|
|
Noncurrent
operating lease liabilities
|
|
1,579,209
|
|
1,491,571
|
|
|
Deferred income
taxes
|
|
8,504
|
|
9,303
|
|
|
Insurance
reserves
|
|
58,330
|
|
55,089
|
|
|
Unrecognized tax
benefits
|
|
10,415
|
|
10,073
|
|
|
Other
liabilities
|
|
146,334
|
|
189,646
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
1,049,840
|
|
1,256,302
|
|
|
|
|
|
$4,032,323
|
|
$4,204,396
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
OCTOBER 30,
2021
|
|
OCTOBER 31,
2020
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$1,335,656
|
100.0
|
|
$1,377,925
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
519,181
|
38.9
|
|
557,893
|
40.5
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
487,378
|
36.5
|
|
482,307
|
35.0
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
35,930
|
2.7
|
|
33,086
|
2.4
|
|
|
|
|
|
|
|
|
Operating (loss)
profit
|
|
(4,127)
|
(0.3)
|
|
42,500
|
3.1
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(2,284)
|
(0.2)
|
|
(2,586)
|
(0.2)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
285
|
0.0
|
|
(484)
|
(0.0)
|
|
|
|
|
|
|
|
|
(Loss) income
before income taxes
|
|
(6,126)
|
(0.5)
|
|
39,430
|
2.9
|
|
|
|
|
|
|
|
|
|
Income tax
(benefit) expense
|
|
(1,796)
|
(0.1)
|
|
9,520
|
0.7
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
($4,330)
|
(0.3)
|
|
$29,910
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
($0.14)
|
|
|
$0.79
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
($0.14)
|
|
|
$0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
31,679
|
|
|
38,054
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
-
|
|
|
1,137
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
31,679
|
|
|
39,191
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
39 WEEKS
ENDED
|
|
39 WEEKS
ENDED
|
|
|
|
OCTOBER 30,
2021
|
|
OCTOBER 31,
2020
|
|
|
|
|
%
|
|
|
%
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$4,418,582
|
100.0
|
|
$4,461,271
|
100.0
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
1,750,925
|
39.6
|
|
1,812,213
|
40.6
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
|
1,473,454
|
33.3
|
|
1,444,938
|
32.4
|
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
105,196
|
2.4
|
|
104,750
|
2.3
|
|
|
|
|
|
|
|
|
|
Gain on sale of
distribution centers
|
|
0
|
0.0
|
|
(463,053)
|
(10.4)
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
172,275
|
3.9
|
|
725,578
|
16.3
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(7,148)
|
(0.2)
|
|
(8,456)
|
(0.2)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
1,112
|
0.0
|
|
(2,444)
|
(0.1)
|
|
|
|
|
|
|
|
|
Income before
income taxes
|
|
166,239
|
3.8
|
|
714,678
|
16.0
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
38,299
|
0.9
|
|
183,473
|
4.1
|
|
|
|
|
|
|
|
|
Net
income
|
|
$127,940
|
2.9
|
|
$531,205
|
11.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$3.80
|
|
|
$13.69
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$3.73
|
|
|
$13.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
33,677
|
|
|
38,807
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of
share-based awards
|
|
617
|
|
|
659
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
34,294
|
|
|
39,466
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
|
$0.90
|
|
|
$0.90
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
13 WEEKS
ENDED
|
|
13 WEEKS
ENDED
|
|
|
|
|
|
OCTOBER 30,
2021
|
|
OCTOBER 31,
2020
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Net cash
used in operating activities
|
|
($66,452)
|
|
($200,974)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
(45,459)
|
|
(32,377)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in financing activities
|
|
(110,815)
|
|
(117,378)
|
|
|
|
|
|
|
|
|
|
|
Decrease in cash
and cash equivalents
|
|
(222,726)
|
|
(350,729)
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
293,322
|
|
898,560
|
|
|
|
End of
period
|
|
$70,596
|
|
$547,831
|
|
|
BIG LOTS, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
39 WEEKS
ENDED
|
|
39 WEEKS
ENDED
|
|
|
|
|
|
OCTOBER 30,
2021
|
|
OCTOBER 31,
2020
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
Net cash
provided by operating activities
|
|
$75,706
|
|
$267,410
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
(used in) provided by investing activities
|
(122,545)
|
|
485,209
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in financing activities
|
|
(442,121)
|
|
(257,509)
|
|
|
|
|
|
|
|
|
|
|
(Decrease)
increase in cash and cash equivalents
|
(488,960)
|
|
495,110
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
Beginning
of period
|
|
559,556
|
|
52,721
|
|
|
|
End of
period
|
|
$70,596
|
|
$547,831
|
|
|
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 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).
Year-to-date
2020 - Thirty-nine weeks ended October 31,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustment
to
exclude gain on
sale of distribution
centers and related
expenses
|
|
As Adjusted
(non-
GAAP)
|
Selling and
administrative expenses
|
$
1,444,938
|
|
$
(3,956)
|
|
$
1,440,982
|
Selling and
administrative expense rate
|
32.4%
|
|
(0.1%)
|
|
32.3%
|
Gain on sale
of distribution centers
|
(463,053)
|
|
463,053
|
|
-
|
Gain on sale
of distribution centers rate
|
(10.4%)
|
|
10.4%
|
|
-
|
Operating
profit
|
|
725,578
|
|
(459,097)
|
|
266,481
|
Operating
profit rate
|
|
16.3%
|
|
(10.3%)
|
|
6.0%
|
Income tax
expense
|
|
183,473
|
|
(117,194)
|
|
66,279
|
Effective
income tax rate
|
25.7%
|
|
0.3%
|
|
25.9%
|
Net
income
|
|
531,205
|
|
(341,903)
|
|
189,302
|
Diluted
earnings per share
|
$
13.46
|
|
$
(8.66)
|
|
$
4.80
|
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).
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.