Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) today reported
financial results for the fourth quarter and full year of fiscal
2017 ended February 3, 2018 (“fiscal 2017”), both of which
contained one additional week (“53rd week”) as compared to the
fourth quarter and full year ended January 28, 2017 (“fiscal
2016”).
Fourth Quarter Summary:
- Total net sales increased 25.9% to $356.7 million.
Excluding the impact of the 53rd week, net sales increased
20.0%.
- Net sales in the 53rd week were $16.5 million and contributed
less than $0.01 to diluted earnings per share.
- Comparable store sales increased 4.4% on a 13-week basis.
- The Company opened three stores during the quarter, ending the
year with a total of 268 stores in 20 states, an increase in store
count of 14.5% year over year.
- Operating income increased 34.0% to $54.4 million.
- Net income increased 186.9% to $70.1 million and net income per
diluted share increased 174.4% to $1.07.
- Adjusted net income(1) increased 35.6% to $33.1 million and
adjusted net income per diluted share(1) increased 30.8% to
$0.51.
- Adjusted EBITDA(1) increased 31.0% to $59.2 million.
Fiscal Year Summary:
- Total net sales increased 21.0% to $1.077 billion. Excluding
the impact of the 53rd week, net sales increased 19.1%.
- Comparable store sales increased 3.3% on a 52-week basis.
- Operating income increased 32.8% to $135.8 million.
- Net income increased 113.5% to $127.6 million and net income
per diluted share increased 104.2% to $1.96.
- Adjusted net income(1) increased 33.4% to $81.1 million and
adjusted net income per diluted share(1) increased 28.9% to
$1.25.
- Adjusted EBITDA(1) increased 28.2% to $155.4 million.
(1) As used throughout this release, adjusted
operating income, adjusted net income, adjusted net income per
diluted share, EBITDA and adjusted EBITDA are not measures
recognized under U.S. generally accepted accounting principles
(“GAAP”). Please see the accompanying financial tables which
reconcile these non-GAAP measures to GAAP.
Mark Butler, Chairman, President and Chief
Executive Officer, stated, “We are very pleased with our fourth
quarter and full-year results. The fourth quarter was our 15th
consecutive quarter of positive comparable store sales and we
achieved record top and bottom line results in both the quarter and
fiscal year. Strong deal flow, great new store performance and
tight expense controls continue to be the hallmarks of our business
and we are using our growing scale to gain better access to
merchandise, open stores and leverage expenses. In 2018, we plan to
open 36 to 38 new stores, including our first stores in Arkansas
and Louisiana. We feel very good about our ability to
continue executing against our strategic growth initiatives in 2018
and beyond.”
Fourth Quarter Results
Net sales in the fourth quarter of fiscal 2017
increased 25.9% to $356.7 million from net sales of $283.4 million
in the fourth quarter of fiscal 2016. The increase in net sales was
driven by a 14.5% increase in the number of stores, a 4.4% increase
in comparable store sales and $16.5 million of sales in the 53rd
week. Excluding the 53rd week, sales increased 20.0% year
over year. The Company opened three stores in the fourth
quarter and ended fiscal 2017 with 268 stores, compared to 234
stores at the end of fiscal 2016.
Gross profit increased 23.9% to $140.5 million
in the fourth quarter of fiscal 2017 from $113.4 million in the
fourth quarter of fiscal 2016. Gross margin decreased 60 basis
points to 39.4% in the fourth quarter of fiscal 2017 from 40.0% in
the fourth quarter of fiscal 2016. The decrease in gross margin was
driven by increased supply chain costs as a percentage of net
sales.
Operating income increased 34.0% to $54.4
million in the fourth quarter of fiscal 2017 from $40.6 million in
the fourth quarter of fiscal 2016. Operating margin increased 100
basis points to 15.3% in the fourth quarter of fiscal 2017 from
14.3% in the fourth quarter of fiscal 2016.
Net income increased 186.9% to $70.1 million, or
$1.07 per diluted share, in the fourth quarter of fiscal 2017 from
$24.4 million, or $0.39 per diluted share, in the fourth quarter of
fiscal 2016. Diluted earnings per share in the fourth quarter
of fiscal 2017 included a $0.50 benefit related to the Tax Cuts and
Jobs Act of 2017 (the “2017 Tax Act”) and a $0.07 benefit due to
the accounting change for stock-based compensation. Adjusted
net income (1), which excludes these benefits and the after-tax
loss on extinguishment of debt, increased 35.6% to $33.1 million,
or $0.51 per diluted share, in the fourth quarter of fiscal 2017.
The 53rd week contributed less than $0.01 to diluted earnings per
share.
Adjusted EBITDA(1) increased 31.0% to $59.2
million, or 16.6% of net sales, in the fourth quarter of fiscal
2017 from $45.2 million, or 15.9% of net sales, in the fourth
quarter of fiscal 2016. Adjusted EBITDA excludes non-cash
stock-based compensation expense and non-cash purchase accounting
items.
Fiscal 2017 Results
Net sales in fiscal 2017 increased 21.0% to
$1.077 billion from net sales of $890.3 million in fiscal 2016. The
increase in net sales was driven by a 14.5% increase in store
count, a 3.3% increase in comparable store sales and $16.5 million
of sales in the 53rd week. Excluding the 53rd week, sales increased
19.1% year over year. The Company opened 34 stores during the year
and ended fiscal 2017 with 268 stores.
Gross profit increased 19.8% to $431.6 million
in fiscal 2017 from $360.4 million in fiscal 2016. Gross
margin decreased 40 basis points to 40.1% in the current year from
40.5% in the prior year, the result of decreased merchandise margin
partially offset by reduced supply chain costs as a percentage of
sales.
Operating income increased 32.8% to $135.8
million in fiscal 2017 from $102.2 million in fiscal 2016.
Operating margin increased 110 basis points to 12.6% in fiscal 2017
from 11.5% in fiscal 2016. Excluding $1.7 million of
transaction related expenses incurred in fiscal 2016, adjusted
operating income increased 30.6% or 90 basis points as a percentage
of net sales in fiscal 2017.
Net income increased 113.5% to $127.6 million,
or $1.96 per diluted share, in fiscal 2017, compared to $59.8
million, or $0.96 per diluted share, in fiscal 2016. Diluted
earnings per share in fiscal 2017 included a $0.50 benefit related
to the 2017 Tax Act and a $0.22 benefit due to the accounting
change for stock-based compensation. Adjusted net income (1),
which excludes these benefits and the after-tax loss on
extinguishment of debt in the current year and after-tax
transaction related expenses in the prior year, increased 33.4% to
$81.1 million, or $1.25 per diluted share, in fiscal 2017 from
$60.8 million, or $0.97 per diluted share, in fiscal 2016.
The 53rd week contributed less than $0.01 to diluted earnings
per share.
Adjusted EBITDA (1) increased 28.2% to $155.4
million, or 14.4% of net sales, in fiscal 2017 from $121.1 million,
or 13.6% of net sales, in fiscal 2016. Adjusted EBITDA excludes
non-cash stock-based compensation expense, non-cash purchase
accounting items and transaction related expenses.
Balance Sheet and Cash Flow
Highlights
The Company's cash balance as of the end of
fiscal 2017 was $39.2 million compared to $98.7 million as of the
end of fiscal 2016. The Company had no borrowings under its
$100.0 million revolving credit facility and $96.0 million of
availability under the facility as of the end of fiscal 2017. The
Company paid down $146.3 million in term loan debt during fiscal
2017 and ended the year with total borrowings of $49.2 million
compared to $195.3 million as of the end of fiscal
2016.
Inventory as of the end of fiscal 2017 increased
21.5% to $255.2 million compared to $210.1 million as of the end of
fiscal 2016, primarily due to new store growth and timing of deal
flow.
Capital expenditures in fiscal 2017 totaled
$19.3 million compared to $16.4 million in fiscal 2016.
Fiscal 2018 Outlook
Guidance for the fiscal year ending February 2,
2019 (“fiscal 2018”) reflects a 52-week year versus the 53 weeks in
fiscal 2017. Ollie’s estimates the following for fiscal
2018:
- Total net sales of $1.20 billion to $1.21 billion, an increase
of 13.2% to 14.1% on a 52-week basis;
- Comparable store sales growth of 1.0% to 2.0%;
- The opening of 36 to 38 new stores and no planned
closures;
- Operating income of $149.0 million to $152.0 million;
- Adjusted net income(2) of $109.0 million to $112.0 million,
which excludes income tax benefits due to the accounting change for
stock-based compensation;
- Adjusted net income per diluted share(2) of $1.65 to $1.69,
which excludes income tax benefits due to the accounting change for
stock-based compensation;
- An effective tax rate of 26.0%, lower than prior years due to
the 2017 Tax Act;
- Estimated diluted weighted average shares outstanding of 66.0
million; and
- Capital expenditures of $23.0 million to $25.0 million.
The Company expects to realize a benefit from
the lower effective tax rate in fiscal 2018 of approximately $18
million or $0.27 per diluted share. The Company is planning
to reinvest approximately 20% of the expected benefit in its
associates. This impact is included in the Company’s fiscal
2018 outlook.
(2) The guidance ranges as provided for
adjusted net income and adjusted net income per diluted share
exclude any income tax benefits due to the change in accounting for
stock-based compensation as the Company cannot predict such
estimates without unreasonable effort.
Conference Call Information
A conference call to discuss fiscal 2017 fourth
quarter and full-year financial results is scheduled for today,
April 4, 2018, at 4:30 p.m. Eastern Time. Investors and analysts
can participate on the conference call by dialing (800) 219-7052 or
(574) 990-1029 and using conference ID #3185646. Interested parties
can also listen to a live webcast or replay of the conference call
by logging on to the Investor Relations section on the Company’s
website at http://investors.ollies.us/. The replay of the
conference call webcast will be available at the investor relations
website for one year.
About
Ollie’s
We are a highly differentiated and fast growing,
extreme value retailer of brand name merchandise at drastically
reduced prices. We are known for our assortment of merchandise
offered as Good Stuff Cheap®. We offer name brand products,
Real Brands! Real Bargains!®, in every department, including
housewares, food, books and stationery, bed and bath, floor
coverings, toys, hardware and other categories. We currently
operate 274 store locations in 21 states across the Eastern portion
of the United States. For more information, visit
www.ollies.us.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements can
be identified by words such as “could,” “may,” “might,” “will,”
“likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,”
“estimates,” “expects,” “continues,” “projects” and similar
references to future periods, or by the inclusion of forecasts or
projections, the outlook for the Company’s future business,
prospects, financial performance, including our fiscal 2018
business outlook or financial guidance, and industry outlook.
Forward-looking statements are based on our current expectations
and assumptions regarding our business, the economy and other
future conditions. Because forward-looking statements relate to the
future, by their nature, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, our actual results may differ
materially from those contemplated by the forward-looking
statements. Important factors that could cause actual results to
differ materially from those in the forward-looking statements
include regional, national or global political, economic, business,
competitive, market and regulatory conditions, including recently
enacted tax legislation, and the following: our failure to
adequately procure and manage our inventory or anticipate consumer
demand; changes in consumer confidence and spending; risks
associated with intense competition; our failure to open new
profitable stores, or successfully enter new markets, on a timely
basis or at all; our failure to hire and retain key personnel and
other qualified personnel; our inability to obtain favorable lease
terms for our properties; the loss of, or disruption in the
operations of, our centralized distribution centers; fluctuations
in comparable store sales and results of operations, including on a
quarterly basis; risks associated with our lack of operations in
the growing online retail marketplace; our inability to
successfully implement our marketing, advertising and promotional
efforts; the seasonal nature of our business; risks associated with
the timely and effective deployment and protection of computer
networks and other electronic systems; the risks associated with
doing business with international manufacturers; changes in
government regulations, procedures and requirements; and our
ability to service our indebtedness and to comply with our
financial covenants together with the other factors set forth under
“Risk Factors” in our filings with the United States Securities and
Exchange Commission (“SEC”). Any forward-looking statement made by
us in this press release speaks only as of the date on which it is
made. Factors or events that could cause our actual results to
differ may emerge from time to time, and it is not possible for us
to predict all of them. Ollie’s undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future developments or otherwise,
except as may be required by law. You are advised, however,
to consult any further disclosures we make on related subjects in
our public announcements and SEC filings.
Investor Contact: John
RouleauICR203-682-8200John.Rouleau@icrinc.com
Media Contact:Dan HainesVice President –
Marketing & Advertising717-657-2300dhaines@ollies.us
|
Ollie’s Bargain Outlet Holdings,
Inc.Condensed Consolidated Statements of
Income (In thousands except
for per share
amounts) (Unaudited) |
|
|
|
14 Weeks |
|
13 Weeks |
|
53 Weeks |
|
52 Weeks |
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
|
February 3, |
|
January 28, |
|
February 3, |
|
January 28, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
356,669 |
|
|
$ |
283,355 |
|
|
$ |
1,077,032 |
|
|
$ |
890,315 |
|
Cost of sales |
|
|
216,172 |
|
|
|
169,963 |
|
|
|
645,385 |
|
|
|
529,904 |
|
Gross profit |
|
|
140,497 |
|
|
|
113,392 |
|
|
|
431,647 |
|
|
|
360,411 |
|
Selling, general and
administrative expenses |
|
|
82,541 |
|
|
|
69,823 |
|
|
|
278,174 |
|
|
|
242,891 |
|
Depreciation and
amortization expenses |
|
|
2,667 |
|
|
|
2,255 |
|
|
|
9,817 |
|
|
|
8,443 |
|
Pre-opening
expenses |
|
|
895 |
|
|
|
731 |
|
|
|
7,900 |
|
|
|
6,883 |
|
Operating income |
|
|
54,394 |
|
|
|
40,583 |
|
|
|
135,756 |
|
|
|
102,194 |
|
Interest expense,
net |
|
|
870 |
|
|
|
1,395 |
|
|
|
4,471 |
|
|
|
5,935 |
|
Loss on extinguishment
of debt |
|
|
401 |
|
|
|
- |
|
|
|
798 |
|
|
|
- |
|
Income before income
taxes |
|
|
53,123 |
|
|
|
39,188 |
|
|
|
130,487 |
|
|
|
96,259 |
|
Income tax expense |
|
|
(16,931 |
) |
|
|
14,768 |
|
|
|
2,893 |
|
|
|
36,495 |
|
Net income |
|
$ |
70,054 |
|
|
$ |
24,420 |
|
|
$ |
127,594 |
|
|
$ |
59,764 |
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.13 |
|
|
$ |
0.40 |
|
|
$ |
2.08 |
|
|
$ |
0.99 |
|
Diluted |
|
$ |
1.07 |
|
|
$ |
0.39 |
|
|
$ |
1.96 |
|
|
$ |
0.96 |
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
61,786 |
|
|
|
60,623 |
|
|
|
61,353 |
|
|
|
60,160 |
|
Diluted |
|
|
65,351 |
|
|
|
62,918 |
|
|
|
64,950 |
|
|
|
62,415 |
|
Percentage of
net sales (1): |
|
|
|
|
|
|
|
|
Net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
Cost of sales |
|
|
60.6 |
|
|
|
60.0 |
|
|
|
59.9 |
|
|
|
59.5 |
|
Gross profit |
|
|
39.4 |
|
|
|
40.0 |
|
|
|
40.1 |
|
|
|
40.5 |
|
Selling, general and
administrative expenses |
|
|
23.1 |
|
|
|
24.6 |
|
|
|
25.8 |
|
|
|
27.3 |
|
Depreciation and
amortization expenses |
|
|
0.7 |
|
|
|
0.8 |
|
|
|
0.9 |
|
|
|
0.9 |
|
Pre-opening
expenses |
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.7 |
|
|
|
0.8 |
|
Operating income |
|
|
15.3 |
|
|
|
14.3 |
|
|
|
12.6 |
|
|
|
11.5 |
|
Interest expense,
net |
|
|
0.2 |
|
|
|
0.5 |
|
|
|
0.4 |
|
|
|
0.7 |
|
Loss on extinguishment
of debt |
|
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
Income before income
taxes |
|
|
14.9 |
|
|
|
13.8 |
|
|
|
12.1 |
|
|
|
10.8 |
|
Income tax expense |
|
|
(4.7 |
) |
|
|
5.2 |
|
|
|
0.3 |
|
|
|
4.1 |
|
Net income |
|
|
19.6 |
% |
|
|
8.6 |
% |
|
|
11.8 |
% |
|
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
(1)
Components may not add to totals due to rounding. |
Ollie’s Bargain Outlet Holdings,
Inc. |
Condensed Consolidated Balance
Sheets |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
February 3, |
|
January 28, |
Assets |
|
|
2018 |
|
|
|
2017 |
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
39,234 |
|
|
$ |
98,683 |
|
Inventories |
|
|
255,185 |
|
|
|
210,107 |
|
Accounts
receivable |
|
|
1,271 |
|
|
|
301 |
|
Prepaid
expenses and other assets |
|
|
7,986 |
|
|
|
3,739 |
|
Total
current assets |
|
|
303,676 |
|
|
|
312,830 |
|
Property and equipment,
net |
|
|
54,888 |
|
|
|
46,333 |
|
Goodwill |
|
|
444,850 |
|
|
|
444,850 |
|
Trade name and other
intangible assets, net |
|
|
232,639 |
|
|
|
232,977 |
|
Other assets |
|
|
2,146 |
|
|
|
2,385 |
|
Total
assets |
|
$ |
1,038,199 |
|
|
$ |
1,039,375 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Current
portion of long-term debt |
|
$ |
10,158 |
|
|
$ |
5,077 |
|
Accounts
payable |
|
|
74,206 |
|
|
|
50,448 |
|
Income
taxes payable |
|
|
6,035 |
|
|
|
4,548 |
|
Accrued
expenses |
|
|
46,327 |
|
|
|
44,748 |
|
Total
current liabilities |
|
|
136,726 |
|
|
|
104,821 |
|
Revolving credit
facility |
|
|
- |
|
|
|
- |
|
Long-term debt |
|
|
38,835 |
|
|
|
188,923 |
|
Deferred income
taxes |
|
|
59,073 |
|
|
|
89,224 |
|
Other long-term
liabilities |
|
|
7,103 |
|
|
|
5,146 |
|
Total
liabilities |
|
|
241,737 |
|
|
|
388,114 |
|
Stockholders’
equity: |
|
|
|
|
Common
stock |
|
|
62 |
|
|
|
61 |
|
Additional paid-in capital |
|
|
583,467 |
|
|
|
565,861 |
|
Retained
earnings |
|
|
213,019 |
|
|
|
85,425 |
|
Treasury
- common stock |
|
|
(86 |
) |
|
|
(86 |
) |
Total
stockholders’ equity |
|
|
796,462 |
|
|
|
651,261 |
|
Total
liabilities and stockholders’ equity |
|
$ |
1,038,199 |
|
|
$ |
1,039,375 |
|
|
|
|
|
|
Ollie’s Bargain Outlet Holdings,
Inc.Condensed Consolidated Statements of Cash
Flows (In
thousands) (Unaudited) |
|
|
|
14 Weeks |
|
13 Weeks |
|
53 Weeks |
|
52 Weeks |
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
|
February 3, |
|
January 28, |
|
February 3, |
|
January 28, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Net cash provided by
operating activities |
|
$ |
75,552 |
|
|
$ |
62,927 |
|
|
$ |
95,936 |
|
|
$ |
67,088 |
|
Net cash used in
investing activities |
|
|
(4,038 |
) |
|
|
(2,205 |
) |
|
|
(19,157 |
) |
|
|
(16,423 |
) |
Net cash provided by
(used in) financing activities |
|
|
(74,444 |
) |
|
|
2,000 |
|
|
|
(136,228 |
) |
|
|
17,759 |
|
Net
increase (decrease) in cash and cash equivalents |
|
|
(2,930 |
) |
|
|
62,722 |
|
|
|
(59,449 |
) |
|
|
68,424 |
|
Cash and
cash equivalents at the beginning of the period |
|
|
42,164 |
|
|
|
35,961 |
|
|
|
98,683 |
|
|
|
30,259 |
|
Cash and
cash equivalents at the end of the period |
|
$ |
39,234 |
|
|
$ |
98,683 |
|
|
$ |
39,234 |
|
|
$ |
98,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ollie’s Bargain Outlet Holdings,
Inc. Supplemental
Information Reconciliation of GAAP to
Non-GAAP Financial Measures (Dollars in
thousands) (Unaudited)
The Company reports its financial results in
accordance with U.S. generally accepted accounting principles
("GAAP"). We have included the non-GAAP measures of adjusted
operating income, EBITDA, adjusted EBITDA, adjusted net income and
adjusted net income per diluted share in this press release as
these are key measures used by our management and our board of
directors to evaluate our operating performance and the
effectiveness of our business strategies, make budgeting decisions,
and evaluate compensation decisions. Management believes it
is useful to investors and analysts to evaluate these non-GAAP
measures on the same basis as management uses to evaluate the
Company’s operating results. We believe that excluding items that
may not be indicative of, or are unrelated to, our core operating
results, and that may vary in frequency or magnitude from operating
income, net income and net income per diluted share, enhances the
comparability of our results and provides a better baseline for
analyzing trends in our business.
The tables below reconcile the non-GAAP
financial measures of adjusted operating income to operating
income, adjusted net income to net income, adjusted net income per
diluted share to net income per diluted share, and EBITDA and
adjusted EBITDA to net income, in each case the most directly
comparable GAAP measure.
Adjusted operating income, as defined by us, gives effect to
transaction related expenses, which we believe are unrelated to our
core operating results. Adjusted net income and adjusted net
income per diluted share give effect, net of tax, to transaction
related expenses, loss on extinguishment of debt, and income tax
benefits due to the accounting change for stock-based compensation
and recently enacted federal tax reform, which may not occur with
the same frequency or magnitude in future periods. We define EBITDA
as net income before net interest expense, loss on extinguishment
of debt, depreciation and amortization expenses and income taxes.
Adjusted EBITDA represents EBITDA as further adjusted for non-cash
stock-based compensation expense, non-cash purchase accounting
items, and transaction related expenses, which we do not consider
representative of our ongoing operating performance.
Non-GAAP financial measures should be viewed as
supplementing, and not as an alternative to or substitute for, the
Company’s financial results prepared in accordance with GAAP.
Certain of the items that may be excluded or included in non-GAAP
financial measures may be significant items that could impact the
Company's financial position, results of operations and cash flows
and should therefore be considered in assessing the Company's
actual financial condition and performance. The methods used by the
Company to calculate its non-GAAP financial measures may differ
significantly from methods used by other companies to compute
similar measures. As a result, any non-GAAP financial measures
presented herein may not be comparable to similar measures provided
by other companies.
Ollie’s Bargain Outlet Holdings,
Inc.Supplemental
Information Reconciliation of GAAP to
Non-GAAP Financial Measures (In thousands
except for per share
amounts) (Unaudited)
Reconciliation of GAAP operating income to adjusted
operating income |
|
|
|
|
|
|
|
|
|
|
|
14 Weeks |
|
13 Weeks |
|
53 Weeks |
|
52 Weeks |
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
|
February 3, |
|
January 28, |
|
February 3, |
|
January 28, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
Operating income |
|
$ |
54,394 |
|
$ |
40,583 |
|
$ |
135,756 |
|
$ |
102,194 |
Transaction related
expenses |
|
|
- |
|
|
- |
|
|
- |
|
|
1,736 |
Adjusted operating
income |
|
$ |
54,394 |
|
$ |
40,583 |
|
$ |
135,756 |
|
$ |
103,930 |
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to adjusted net
income |
|
|
|
14 Weeks |
|
13 Weeks |
|
53 Weeks |
|
52 Weeks |
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
|
February 3, |
|
January 28, |
|
February 3, |
|
January 28, |
|
|
|
2018 |
|
|
|
2017 |
|
|
2018 |
|
|
|
2017 |
|
Net income |
|
$ |
70,054 |
|
|
$ |
24,420 |
|
$ |
127,594 |
|
|
$ |
59,764 |
|
Transaction related
expenses |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
1,736 |
|
Loss on extinguishment
of debt |
|
|
401 |
|
|
|
- |
|
|
798 |
|
|
|
- |
|
Adjustment to provision
for income taxes (1) |
|
|
(153 |
) |
|
|
- |
|
|
(306 |
) |
|
|
(672 |
) |
Income tax benefits due
to the 2017 Tax Act (2) |
|
|
(32,557 |
) |
|
|
- |
|
|
(32,557 |
) |
|
|
- |
|
Income tax benefits due
to accounting change for stock-based compensation (3) |
|
|
(4,626 |
) |
|
|
- |
|
|
(14,409 |
) |
|
|
- |
|
Adjusted net
income |
|
$ |
33,119 |
|
|
$ |
24,420 |
|
$ |
81,120 |
|
|
$ |
60,828 |
|
|
|
|
|
|
|
|
|
|
(1) The effective tax rate used for the adjustment to the
provision for income taxes was the normalized effective tax rate in
the quarter in which the related costs were incurred. The
adjustment to the provision for income taxes includes the tax
effect for the transaction related expenses and loss on
extinguishment of debt.
(2) Amount represents benefits related to changes in the
U.S. tax code as a result of the 2017 Tax Act, effective as of
January 1, 2018. The income tax benefit is primarily due to the net
impact of the revaluation of net deferred tax liability balances as
a result of the reduction in the federal corporate tax rate to 21%
from the prior maximum rate of 35%.
(3) Amount represents the impact from the recognition of
excess tax benefits pursuant to Accounting Standards Update (“ASU”)
2016-09, Stock Compensation, which was in effect for the fourteen
and fifty-three weeks ended February 3, 2018.
Ollie’s Bargain Outlet Holdings,
Inc.Supplemental
Information Reconciliation of GAAP to
Non-GAAP Financial Measures (Dollars in
thousands) (Unaudited)
Reconciliation of GAAP net income per diluted share to
adjusted net income per diluted share |
|
|
|
|
14 Weeks |
|
13 Weeks |
|
53 Weeks |
|
52 Weeks |
|
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
|
|
February 3, |
|
January 28, |
|
February 3, |
|
January 28, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
2018 |
|
|
|
2017 |
Net income
per share, diluted |
|
$ |
1.07 |
|
|
$ |
0.39 |
|
$ |
1.96 |
|
|
$ |
0.96 |
Adjustments
as noted above per diluted share: |
|
|
|
|
|
|
|
|
|
Transaction related expenses, net of taxes |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
0.02 |
|
Loss on
extinguishment of debt, net of taxes |
|
|
0.00 |
|
|
|
- |
|
|
0.01 |
|
|
|
- |
|
Income
tax benefits due to the 2017 Tax Act |
|
|
(0.50 |
) |
|
|
- |
|
|
(0.50 |
) |
|
|
- |
|
Income
tax benefits due to accounting change for stock-based
compensation |
|
|
(0.07 |
) |
|
|
- |
|
|
(0.22 |
) |
|
|
- |
Adjusted
net income per share, diluted (1) |
|
$ |
0.51 |
|
|
$ |
0.39 |
|
$ |
1.25 |
|
|
$ |
0.97 |
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding, diluted |
|
|
65,351 |
|
|
|
62,918 |
|
|
64,950 |
|
|
|
62,415 |
|
|
|
|
|
|
|
|
|
|
(1) Totals
may not foot due to rounding |
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to EBITDA and adjusted
EBITDA |
|
|
|
14 Weeks |
|
13 Weeks |
|
53 Weeks |
|
52 Weeks |
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
|
February 3, |
|
January 28, |
|
February 3, |
|
January 28, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Net income |
|
$ |
70,054 |
|
|
$ |
24,420 |
|
|
$ |
127,594 |
|
|
$ |
59,764 |
|
Interest expense,
net |
|
|
870 |
|
|
|
1,395 |
|
|
|
4,471 |
|
|
|
5,935 |
|
Loss on extinguishment
of debt |
|
|
401 |
|
|
|
- |
|
|
|
798 |
|
|
|
- |
|
Depreciation and
amortization expenses |
|
|
3,300 |
|
|
|
2,898 |
|
|
|
12,261 |
|
|
|
10,668 |
|
Income tax expense |
|
|
(16,931 |
) |
|
|
14,768 |
|
|
|
2,893 |
|
|
|
36,495 |
|
EBITDA |
|
|
57,694 |
|
|
|
43,481 |
|
|
|
148,017 |
|
|
|
112,862 |
|
Non-cash stock-based
compensation expense |
|
|
1,481 |
|
|
|
1,706 |
|
|
|
7,413 |
|
|
|
6,685 |
|
Non-cash purchase
accounting items |
|
|
(5 |
) |
|
|
(22 |
) |
|
|
(64 |
) |
|
|
(134 |
) |
Transaction related
expenses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,736 |
|
Adjusted EBITDA |
|
$ |
59,170 |
|
|
$ |
45,165 |
|
|
$ |
155,366 |
|
|
$ |
121,149 |
|
|
|
|
|
|
|
|
|
|
Key
Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14 Weeks |
|
13 Weeks |
|
53 Weeks |
|
52 Weeks |
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
|
|
February 3, |
|
January 28, |
|
February 3, |
|
January 28, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
Number of stores -
Beginning of period |
|
|
265 |
|
|
|
232 |
|
|
|
234 |
|
|
|
203 |
|
New stores |
|
|
3 |
|
|
|
2 |
|
|
|
34 |
|
|
|
31 |
|
Number of stores - End
of period |
|
|
268 |
|
|
|
234 |
|
|
|
268 |
|
|
|
234 |
|
|
|
|
|
|
|
|
|
|
Average net sales per
store (in thousands) (1) |
|
$ |
1,332 |
|
|
$ |
1,211 |
|
|
$ |
4,248 |
|
|
$ |
4,050 |
|
Comparable stores sales
change |
|
|
4.4 |
% |
|
|
2.0 |
% |
|
|
3.3 |
% |
|
|
3.2 |
% |
Comparable store count
– end of period |
|
|
225 |
|
|
|
194 |
|
|
|
225 |
|
|
|
194 |
|
|
|
|
|
|
|
|
|
|
(1) Average net sales per store represents the
weighted average of total net sales divided by the number of stores
open, in each case at the end of each week in a fiscal
quarter.
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