Maintains Outlook for Fiscal 2019
-
Net sales for the quarter increased 2.5% to $3.1 billion, compared to
the first fiscal quarter in the prior year
-
Comparable club sales excluding gasoline sales increased 1.9% for the
fiscal quarter
-
Income from continuing operations of $36.1 million for the fiscal
quarter, compared with $14.3 million in the comparable prior year
period.
-
First quarter adjusted EBITDA of $124.1 million reflecting a 2.1%
increase over the first quarter of fiscal 2018.
-
Net income of $35.8 million, or $0.25 per diluted share, and adjusted
net income of $36.7 million, or $0.26 per diluted share for the quarter
-
Maintains outlook for fiscal 2019
WESTBOROUGH, Mass.--(BUSINESS WIRE)--
BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) (the "Company") today
announced its financial results for the thirteen weeks ended May 4, 2019.
“We are pleased with our solid start to the year,” said Christopher J.
Baldwin, Chairman and Chief Executive Officer, BJ’s Wholesale Club. "We
delivered merchandise comparable sales of 1.9%, improved margins and
continued to grow earnings by executing against our strategic
priorities. Looking forward, we continue to see momentum across our
business and are encouraged by the opportunities ahead of us, as we
continue to transform BJ's Wholesale Club."
“In addition, Robert Steele has been appointed to serve as BJ’s Lead
Independent Director,” said Baldwin. “His extensive experience and
knowledge of our industry and business will be invaluable to our
company.”
Key Measures for the Thirteen Weeks Ended (Q1 FY 2019) May 4, 2019:
BJ'S WHOLESALE CLUB HOLDINGS, INC.
|
|
|
(Amounts in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
May 4, 2019
|
|
13 Weeks Ended
May 5, 2018
|
|
%
Growth
|
Net sales
|
|
$
|
3,069,763
|
|
|
$
|
2,993,742
|
|
|
2.5
|
%
|
Membership fee income
|
|
73,373
|
|
|
67,955
|
|
|
8.0
|
%
|
Total revenues
|
|
3,143,136
|
|
|
3,061,697
|
|
|
2.7
|
%
|
|
|
|
|
|
|
|
Operating income
|
|
70,682
|
|
|
64,570
|
|
|
9.5
|
%
|
Income from continuing operations
|
|
36,085
|
|
|
14,301
|
|
|
152.3
|
%
|
Adjusted EBITDA (a) |
|
124,076
|
|
|
121,557
|
|
|
2.1
|
%
|
Net income
|
|
35,798
|
|
|
14,137
|
|
|
153.2
|
%
|
EPS (b) |
|
0.25
|
|
|
0.15
|
|
|
66.7
|
%
|
Adjusted net income (a) |
|
36,678
|
|
|
28,113
|
|
|
30.5
|
%
|
Adjusted EPS (a) |
|
0.26
|
|
|
0.20
|
|
|
30.0
|
%
|
Basic weighted average shares outstanding
|
|
136,810
|
|
|
88,553
|
|
|
54.5
|
%
|
Diluted weighted average shares outstanding
|
|
140,463
|
|
|
93,292
|
|
|
50.6
|
%
|
|
|
|
|
|
|
|
|
|
|
a) See “Note Regarding Non-GAAP Financial Information”
b) EPS represents earnings per diluted share
Additional Highlights:
-
Comparable club sales for the first quarter of fiscal 2019 increased
2.0% compared to the first quarter of fiscal 2018. Excluding the
impact of gasoline sales, merchandise comparable sales increased 1.9%.
-
Gross profit increased to $574.2 million in the first quarter of
fiscal 2019 from $551.4 million in the first quarter of fiscal 2018.
Excluding the impact of gasoline sales and membership fee income,
merchandise gross margin rate increased by approximately 30 basis
points over the first quarter of fiscal 2018. The improvement was
primarily driven by continued progress in our category profitability
improvement program.
-
Selling, general and administrative expenses ("SG&A") increased to
$501.2 million in the first quarter of fiscal 2019 compared to $485.6
million in the first quarter of fiscal 2018. SG&A, excluding charges
associated with the registered offering by selling stockholders (the
"offering costs"), club asset impairment charges and management fees,
was $500.0 million in the first quarter of fiscal 2019 compared to
$480.6 million in the first quarter of fiscal 2018. The increase in
SG&A reflects continued investments to drive the Company’s strategic
priorities.
-
Operating income increased to $70.7 million, or 2.2% of total revenue
in the first quarter of fiscal 2019 compared to $64.6 million, or 2.1%
of total revenues, in the first quarter of fiscal 2018. Excluding the
offering costs, club asset impairment charges and management fees,
operating income was $71.9 million, or 2.3% of total revenues, in the
first quarter of fiscal 2019 compared to $69.6 million, or 2.3% of
total revenues in the first quarter of fiscal 2018.
-
Interest expense, net, decreased to $27.8 million in the first quarter
of fiscal 2019 compared to $45.2 million in the first quarter of
fiscal 2018. Excluding the interest and amortization associated with
our second lien term loan facility prior to its extinguishment,
interest expense would have been $30.3 million in the first quarter of
fiscal 2018. The decline in interest expense reflects our pay down of
debt and the benefit of repricing our first lien term loan and asset
based loan facilities in the third quarter of fiscal 2018.
-
Income tax expense was $6.8 million in the first quarter of fiscal
2019 compared to $5.1 million in the first quarter of fiscal 2018. The
first quarter of fiscal 2019 included a benefit of $4.9 million from
windfall tax benefits related to exercised stock options.
Fiscal Year (FY) 2019 Outlook
Outlook
|
|
Outlook
|
FY Ending February 1, 2020
(a)
|
|
FY 2019
|
|
|
|
Net sales
|
|
$12.9 - $13.2
|
Merchandise Comparable Store Sales (b) |
|
1.5% - 2.5%
|
Income from Continuing Operations
|
|
$200 - $212
|
Adjusted EBITDA
|
|
$590 - $600
|
Interest expense
|
|
$105- $110
|
Tax Rate(c) |
|
Approx. 25%
|
Net income
|
|
$200 - $212
|
EPS (d) |
|
$1.42 - $1.50
|
Capital Expenditures
|
|
Approx. $200
|
|
|
|
a) Amounts in millions, except for per share amounts. Net sales is in
billions. Outlook reflects the immaterial impact of adopting the new
lease accounting standard.
b) Merchandise comparable store sales excludes gasoline.
c) Tax rate reflects statutory rate of 28.0% offset by estimated future
windfall stock benefits.
d) Based on estimated diluted weighted average shares outstanding of
approximately 141 million.
Conference Call Details
A conference call to discuss the first quarter fiscal 2019 financial
results is scheduled for today, May 23, 2019, at 8:30 a.m. Eastern Time.
Investors and analysts interested in participating in the call are
invited to dial 877-274-0290 (international callers please dial
647-689-5405) approximately 10 minutes prior to the start of the call. A
live audio webcast of the conference call will be available online at https://investors.bjs.com.
A recorded replay of the conference call will be available within two
hours of the conclusion of the call and can be accessed both online at https://investors.bjs.com
and by dialing 416-621-4642 and entering the access code 9258035. The
recorded replay will be available until June 06, 2019 and an online
archive of the webcast will be available for one year.
About BJ’s Wholesale Club Holdings, Inc.
Headquartered in Westborough, Massachusetts, BJ's Wholesale Club
Holdings, Inc. is a leading operator of membership warehouse clubs in
the Eastern United States. The company currently operates 217 clubs and
138 BJ's Gas® locations in 16 states.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. All
statements contained in this press release that do not relate to matters
of historical fact should be considered forward-looking statements,
including, without limitation, statements regarding our strategic
priorities; our anticipated fiscal 2019 outlook; and our future
progress, as well as statements that include the words “expect,”
“intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,”
“should,” “anticipate” and similar statements of a future or
forward-looking nature. These forward-looking statements are based on
management’s current expectations. These statements are neither promises
nor guarantees, but involve known and unknown risks, uncertainties and
other important factors that may cause actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
statements, including, but not limited to: uncertainties in the
financial markets, consumer and small business spending patterns and
debt levels; our dependence on having a large and loyal membership;
domestic and international economic conditions, including exchange
rates; our ability to procure the merchandise we sell at the best
possible prices; the effects of competition and regulation; our
dependence on vendors to supply us with quality merchandise at the right
time and at the right price; breaches of security or privacy of member
or business information; conditions affecting the acquisition and
development; our ability to attract and retain a qualified management
team and other team members; costs associated with employees (generally
including health care costs), energy and certain commodities,
geopolitical conditions (including tariffs); disruptions in merchandise
distribution; our ability to identify and respond effectively to
consumer trends; the effects of payment related risks, including risks
to the security of payment card information; changes in laws related to,
or the governments administration of the Supplemental Nutrition
Assistance Program or its electronic benefit transfer systems; union
attempts to organize our team members; failure or disruption of our
primary and back-up systems; our ability to attract and retain a
qualified management team and other team members; fluctuation of our
comparable club sales and quarterly operating results; changes in our
product mix or in our revenues from gasoline sales; the effects of
product recalls; our failure to successfully maintain a relevant
omnichannel experience for our members; risks related to our growth
strategy to open new clubs; risks related to our e-commerce business;
and other important factors discussed under the captions “Item 1A. Risk
Factors” and “Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in our Form 10K filed with the
United States Securities and Exchange Commission (“SEC”) on March 25,
2019, as such factors may be updated from time to time in our other
filings with the SEC, which are accessible on the SEC’s website at www.sec.gov.
These and other important factors could cause actual results to differ
materially from those indicated by the forward-looking statements made
in this press release. Any such forward-looking statements represent
management’s estimates as of the date of this press release. While we
may elect to update such forward-looking statements at some point in the
future, unless required by law, we disclaim any obligation to do so,
even if subsequent events cause our views to change. Thus, one should
not assume that our silence over time means that actual events are
bearing out as expressed or implied in such forward-looking statements.
These forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date of this
press release.
Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized under
United States generally accepted accounting principles (“GAAP”). Please
see “Note Regarding Non-GAAP Financial Information" and “Reconciliation
of GAAP to Non-GAAP Financial Information” below for additional
information and a reconciliation of the non-GAAP financial measures to
the most comparable GAAP financial measures.
|
|
|
|
|
BJ'S WHOLESALE CLUB HOLDINGS, INC.
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
(Amounts in thousands, except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
13 Weeks Ended
May 4, 2019
|
|
13 Weeks Ended
May 5, 2018
|
Net sales
|
|
$
|
3,069,763
|
|
|
$
|
2,993,742
|
|
Membership fee income
|
|
73,373
|
|
|
67,955
|
|
Total revenues
|
|
3,143,136
|
|
|
3,061,697
|
|
Cost of sales
|
|
2,568,977
|
|
|
2,510,338
|
|
Selling, general and administrative expenses
|
|
501,181
|
|
|
485,572
|
|
Preopening expense
|
|
2,296
|
|
|
1,217
|
|
Operating income
|
|
70,682
|
|
|
64,570
|
|
Interest expense, net
|
|
27,789
|
|
|
45,203
|
|
Income from continuing operations before income taxes
|
|
42,893
|
|
|
19,367
|
|
Provision for income taxes
|
|
6,808
|
|
|
5,066
|
|
Income from continuing operations
|
|
36,085
|
|
|
14,301
|
|
Loss from discontinued operations, net of income taxes
|
|
(287
|
)
|
|
(164
|
)
|
Net income
|
|
$
|
35,798
|
|
|
$
|
14,137
|
|
Income per share attributable to common stockholders - basic:
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.26
|
|
|
$
|
0.16
|
|
Loss from discontinued operations
|
|
—
|
|
|
—
|
|
Net income
|
|
$
|
0.26
|
|
|
$
|
0.16
|
|
Income per share attributable to common stockholders - diluted:
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.26
|
|
|
$
|
0.15
|
|
Loss from discontinued operations
|
|
(0.01
|
)
|
|
—
|
|
Net income
|
|
$
|
0.25
|
|
|
$
|
0.15
|
|
Weighted average number of shares outstanding:
|
|
|
|
|
Basic
|
|
136,810
|
|
|
88,553
|
|
Diluted
|
|
140,463
|
|
|
93,292
|
|
|
|
|
|
|
BJ'S WHOLESALE CLUB HOLDINGS, INC.
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
(Amounts in thousands)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
13 Weeks Ended
May 4, 2019
|
|
13 Weeks Ended
May 5, 2018
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
29,877
|
|
|
$
|
30,471
|
|
|
Accounts receivable, net
|
|
180,379
|
|
|
168,719
|
|
|
Merchandise inventories
|
|
1,085,565
|
|
|
1,055,234
|
|
|
Prepaid expense and other current assets
|
|
47,403
|
|
|
83,041
|
|
|
|
Total current assets
|
|
1,343,224
|
|
|
1,337,465
|
|
|
|
|
|
|
|
|
Operating lease right-of-use assets, net
|
|
2,039,878
|
|
|
—
|
|
Property and equipment, net
|
|
728,762
|
|
|
749,670
|
|
Goodwill
|
|
924,134
|
|
|
924,134
|
|
Intangibles, net
|
|
157,103
|
|
|
218,645
|
|
Other assets
|
|
17,760
|
|
|
31,352
|
|
|
|
Total assets
|
|
$
|
5,210,861
|
|
|
$
|
3,261,266
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
246,377
|
|
|
$
|
179,250
|
|
|
Current portion of operating lease liabilities
|
|
120,538
|
|
|
—
|
|
|
Accounts payable
|
|
820,489
|
|
|
799,524
|
|
|
Accrued expenses and other current liabilities
|
|
485,168
|
|
|
461,201
|
|
|
|
Total current liabilities
|
|
1,672,572
|
|
|
1,439,975
|
|
|
|
|
|
|
|
|
Long-term lease liabilities
|
|
1,952,173
|
|
|
—
|
|
Long-term debt
|
|
1,543,537
|
|
|
2,507,960
|
|
Deferred income taxes
|
|
44,934
|
|
|
52,531
|
|
Other noncurrent liabilities
|
|
145,954
|
|
|
272,203
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' DEFICIT
|
|
(148,309
|
)
|
|
(1,011,403
|
)
|
|
|
Total liabilities and stockholders' deficit
|
|
$
|
5,210,861
|
|
|
$
|
3,261,266
|
|
|
|
|
BJ'S WHOLESALE CLUB HOLDINGS, INC.
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
(Amounts in thousands)
|
|
|
(Unaudited)
|
|
|
|
|
13 Weeks Ended
May 4, 2019
|
|
13 Weeks Ended
May 5, 2018
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
Net income
|
|
$
|
35,798
|
|
|
$
|
14,137
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
38,670
|
|
|
41,422
|
|
Amortization of debt issuance costs and accretion of original issue
discount
|
|
1,323
|
|
|
2,116
|
|
Impairment charge for asset held for sale
|
|
—
|
|
|
3,000
|
|
Other non-cash items, net
|
|
289
|
|
|
1,292
|
|
Stock-based compensation expense
|
|
3,844
|
|
|
970
|
|
Deferred income tax provision (benefit)
|
|
4,501
|
|
|
(2,007
|
)
|
Increase (decrease) in cash due to changes in:
|
|
|
|
|
Accounts receivable
|
|
13,921
|
|
|
22,037
|
|
Merchandise inventories
|
|
(33,259
|
)
|
|
(36,096
|
)
|
Accounts payable
|
|
(516
|
)
|
|
25,522
|
|
Accrued expenses
|
|
(42,742
|
)
|
|
(12,945
|
)
|
Other operating assets and liabilities, net
|
|
23,107
|
|
|
5,909
|
|
Net cash provided by operating activities
|
|
44,936
|
|
|
65,357
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
Additions to property and equipment, net of disposals
|
|
(36,534
|
)
|
|
(42,145
|
)
|
Net cash used in investing activities
|
|
(36,534
|
)
|
|
(42,145
|
)
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
Payments on long term debt
|
|
(3,844
|
)
|
|
(19,793
|
)
|
Net payments on ABL Facility
|
|
(8,000
|
)
|
|
(7,000
|
)
|
Net cash received from stock option exercises
|
|
6,320
|
|
|
582
|
|
Other financing activities
|
|
(147
|
)
|
|
(1,484
|
)
|
Net cash used in financing activities
|
|
(5,671
|
)
|
|
(27,695
|
)
|
Net decrease in cash and cash equivalents
|
|
2,731
|
|
|
(4,483
|
)
|
Cash and cash equivalents at beginning of period
|
|
27,146
|
|
|
34,954
|
|
Cash and cash equivalents at end of period
|
|
$
|
29,877
|
|
|
$
|
30,471
|
|
Note Regarding Non-GAAP Financial Information
This press release includes financial measures that are not calculated
in accordance with GAAP, including adjusted net income, adjusted net
income per diluted share, and adjusted EBITDA.
We define adjusted net income as net income attributable to common
stockholders adjusted for: offering costs; management fees; club asset
impairment; interest and amortization on the second lien term loan; the
windfall tax benefit from stock exercises; and the tax impact of the
foregoing adjustments on net income.
We define adjusted net income per diluted share as adjusted net income
divided by the weighted average diluted shares outstanding for the
thirteen weeks ended on the last day of the latest period presented.
We define adjusted EBITDA as income from continuing operations before
interest expense, net, provision for income taxes and depreciation and
amortization, adjusted for the impact of certain other items, including:
stock-based compensation expense; preopening expenses; management fees;
non-cash rent; strategic consulting; offering costs; and other
adjustments.
We present adjusted net income, adjusted net income per diluted share
and adjusted EBITDA, which are not recognized financial measures under
GAAP, because we believe it assists investors and analysts in comparing
our operating performance across reporting periods on a consistent basis
by excluding items that we do not believe are indicative of our core
operating performance.
Management believes that adjusted net income, adjusted net income per
diluted share and adjusted EBITDA are helpful in highlighting trends in
our core operating performance compared to other measures, which can
differ significantly depending on long-term strategic decisions
regarding capital structure, the tax jurisdictions in which companies
operate and capital investments. We use adjusted net income, adjusted
net income per diluted share and adjusted EBITDA to supplement GAAP
measures of performance in the evaluation of the effectiveness of our
business strategies; to make budgeting decisions; and to compare our
performance against that of other peer companies using similar measures.
We also use adjusted EBITDA in connection with establishing
discretionary annual incentive compensation.
You are encouraged to evaluate these adjustments and the reasons we
consider them appropriate for supplemental analysis. In evaluating
adjusted net income, adjusted net income per diluted share and adjusted
EBITDA, you should be aware that in the future we may incur expenses
that are the same as or like some of the adjustments in our presentation
of these metrics. Our presentation of adjusted net income, adjusted net
income per diluted share and adjusted EBITDA should not be considered as
alternatives to any other performance measure derived in accordance with
GAAP and they should not be construed as an inference that the Company’s
future results will be unaffected by unusual or non-recurring items.
There can be no assurance that we will not modify the presentation of
adjusted net income, adjusted net income per diluted share, or adjusted
EBITDA in the future, and any such modification may be material. In
addition, adjusted net income, adjusted net income per diluted share, or
adjusted EBITDA may not be comparable to similarly titled measures used
by other companies in our industry or across different industries.
Additionally, adjusted net income, adjusted net income per diluted share
and adjusted EBITDA have limitations as analytical tools, and you should
not consider them in isolation or as a substitute for analysis of our
results as reported under GAAP.
Reconciliation of GAAP to Non-GAAP Financial Information
BJ'S WHOLESALE CLUB HOLDINGS, INC.
|
|
|
Reconciliation of net income to adjusted net income and adjusted
net income per diluted share
|
|
|
(Amounts in thousands, except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
13 Weeks Ended
May 4, 2019
|
|
13 Weeks Ended
May 5, 2018
|
Net income as reported
|
|
$
|
35,798
|
|
|
$
|
14,137
|
|
Adjustments:
|
|
|
|
|
Offering costs (a) |
|
1,222
|
|
|
—
|
|
Management fees (b) |
|
—
|
|
|
2,000
|
|
Club asset impairment (c) |
|
—
|
|
|
3,000
|
|
Interest and amortization on Second Lien Term Loan (d) |
|
—
|
|
|
14,888
|
|
Windfall tax benefit from stock exercises (e) |
|
—
|
|
|
(503
|
)
|
Tax impact of adjustments to net income (f) |
|
(342
|
)
|
|
(5,409
|
)
|
Adjusted net income
|
|
$
|
36,678
|
|
|
$
|
28,113
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
140,463
|
|
|
93,292
|
|
Weighted average diluted shares outstanding for the 13 weeks ended
May 4, 2019
|
|
140,463
|
|
|
140,463
|
|
Adjusted net income per diluted share (g) |
|
$
|
0.26
|
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
(a) Represents costs related to equity offerings as our sponsors exit.
(b) Represents management fees paid to our sponsors (or advisory
affiliates thereof) in accordance with our management services
agreement, which terminated upon closing of the IPO.
(c) Represents the impairment charges related to a club relocated in
2018.
(d) Represents the historical interest expense associated with the
second lien term loan that was paid in full with proceeds from our IPO.
(e) Represents the windfall tax benefit to the Company due to the
exercise of stock options by former employees of the Company.
(f) Represents the tax effect of the above adjustments at a statutory
tax rate of 28%, as applicable.
(g) Adjusted net income per diluted share is measured using the weighted
average diluted shares outstanding of 140.5 million shares for the
thirteen weeks ended May 4, 2019 for both periods presented.
|
|
|
|
|
BJ'S WHOLESALE CLUB HOLDINGS, INC.
|
|
|
RECONCILIATION OF ADJUSTED EBITDA
|
|
|
(Amounts in thousands)
|
|
|
(Unaudited)
|
|
|
|
|
13 Weeks Ended
|
|
13 Weeks Ended
|
|
|
May 4, 2019
|
|
May 5, 2018
|
Income from continuing operations
|
|
$
|
36,085
|
|
|
$
|
14,301
|
Interest expense, net
|
|
27,789
|
|
|
45,203
|
Provision for income taxes
|
|
6,808
|
|
|
5,066
|
Depreciation and amortization
|
|
38,670
|
|
|
41,422
|
Stock-based compensation expense (a) |
|
3,844
|
|
|
970
|
Preopening expenses (b) |
|
2,296
|
|
|
1,217
|
Management fees (c) |
|
—
|
|
|
2,000
|
Non-cash rent (d) |
|
754
|
|
|
1,223
|
Strategic consulting (e) |
|
6,739
|
|
|
6,949
|
Offering costs (f) |
|
1,222
|
|
|
—
|
Other adjustments (g) |
|
(131
|
)
|
|
3,206
|
Adjusted EBITDA
|
|
$
|
124,076
|
|
|
$
|
121,557
|
|
|
|
|
|
|
|
|
(a) Represents total stock-based compensation expense.
(b) Represents direct incremental costs of opening or relocating a
facility that are charged to operations as incurred.
(c) Represents management fees paid to our sponsors (or advisory
affiliates thereof) in accordance with our management services
agreement, which terminated upon closing of the IPO.
(d) Consists of an adjustment to remove the non-cash portion of rent
expense.
(e) Represents fees paid to external consultants for strategic
initiatives of limited duration.
(f) Represents costs related to equity offerings as our sponsors exit.
(g) Other non-cash items, including non-cash accretion on asset
retirement obligations and obligations associated with our
post-retirement medical plan. Fiscal year 2018 also includes
amortization of a deferred gain from sale leaseback transactions in
2013, and impairment charges related to a club that was relocated in
2018.
|
|
|
BJ'S WHOLESALE CLUB HOLDINGS, INC.
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Measures
|
|
|
Fiscal Year 2019 Outlook for Adjusted EBITDA
|
|
|
(Amounts in millions)
|
|
|
(Unaudited)
|
|
|
|
|
Fiscal Year 2019 Outlook
|
|
|
Low End
|
|
High End
|
Income from continuing operations
|
|
$
|
200
|
|
|
$
|
212
|
Interest expense, net
|
|
110
|
|
|
105
|
Provision for income taxes
|
|
67
|
|
|
70
|
Depreciation and amortization
|
|
165
|
|
|
165
|
Stock-based compensation
|
|
20
|
|
|
20
|
Preopening expenses (a) |
|
12
|
|
|
12
|
Non-cash rent (b) |
|
4
|
|
|
4
|
Strategic consulting (c) |
|
12
|
|
|
12
|
Adjusted EBITDA
|
|
$
|
590
|
|
|
$
|
600
|
|
|
|
|
|
|
|
|
(a) Represents direct incremental costs of opening or relocating a
facility that are charged to operations as incurred.
(b) Consists of an adjustment to remove the non-cash portion of rent
expense.
(c) Represents fees paid to external consultants for strategic
initiatives of limited duration.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190523005172/en/
Investor Contact:
Faten Freiha, BJ's Wholesale Club
(774)
512-6320
ffreiha@bjs.com
Media Contact:
Kirk Saville, BJ’s Wholesale Club
(774)
512-7425
ksaville@bjs.com
Source: BJ’s Wholesale Club Holdings, Inc.