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BJ’s Wholesale Club Holdings, Inc. Announces Record Fourth Quarter and Fiscal 2020 Results

March 04, 2021
  • Comparable club sales, excluding gasoline sales, increased by 15.9%, including digitally enabled sales growth of 168%, for the fourth quarter of fiscal 2020.
  • Income from continuing operations increased 127.3% year-over-year to $95.9 million, for the fourth quarter of fiscal 2020.
  • Adjusted EBITDA increased 36.1% year-over-year to $204.5 million, for the fourth quarter of fiscal 2020.
  • Earnings per diluted share of $0.69 reflect 130.0% year-over-year growth.
  • Adjusted earnings per diluted share of $0.70 reflects 75.0% year-over-year growth.
  • Net cash provided by operating activities was $ 868.5 million and free cash flow was $ 676.1 million, for fiscal 2020.

 

WESTBOROUGH, Mass.--(BUSINESS WIRE)-- BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) (the "Company") today announced its financial results for the thirteen and fifty-two weeks ended January 30, 2021.

"2020 was a remarkable, transformative and challenging year that structurally changed our business for the better. While the unique circumstances brought on by the pandemic provided tailwinds, our industry-leading results and significant market share gains demonstrate the strength of our execution in these challenging times. We made substantial strategic progress including delivering record membership results, optimizing merchandising, expanding our digital offerings, accelerating our geographic expansion and enhancing our balance sheet," said Lee Delaney, President and Chief Executive Officer, BJ’s Wholesale Club. “As we look ahead, we are confident our business will continue to thrive over the long-term given structural shifts in consumer behavior, the progress we made over the last year and our continued investments.”

Key Measures for the Thirteen Weeks Ended January 30, 2021 (Fourth Quarter of Fiscal 2020) and for the Fifty-Two Weeks Ended January 30, 2021(Fiscal 2020):

 

BJ'S WHOLESALE CLUB HOLDINGS, INC.

(Amounts in thousands, except per share amounts)

 

 

13 Weeks
Ended

 

13 Weeks
Ended

 

 

 

 

 

52 Weeks
Ended

 

52 Weeks
Ended

 

 

 

 

 

 

January 30,
2021

 

February 1,
2020

 

% Growth

 

January 30,
2021

 

February 1,
2020

 

% Growth

Net sales

 

$

3,860,510

 

$

3,394,761

 

13.7

%

 

$

15,096,913

 

$

12,888,556

 

17.1

%

Membership fee income

 

86,103

 

77,564

 

11.0

%

 

333,104

 

302,151

 

10.2

%

Total revenues

 

3,946,613

 

3,472,325

 

13.7

%

 

15,430,017

 

13,190,707

 

17.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

144,692

 

81,844

 

76.8

%

 

642,392

 

352,199

 

82.4

%

Income from continuing operations

 

95,889

 

42,183

 

127.3

%

 

421,182

 

187,757

 

124.3

%

Adjusted EBITDA (a)

 

204,518

 

150,217

 

36.1

%

 

857,492

 

581,624

 

47.4

%

Net income

 

95,882

 

41,763

 

129.6

%

 

421,030

 

187,176

 

124.9

%

EPS (b)

 

0.69

 

0.30

 

130.0

%

 

3.03

 

1.35

 

124.4

%

Adjusted net income (a)

 

97,199

 

55,101

 

76.4

%

 

428,952

 

203,405

 

110.9

%

Adjusted EPS (a)

 

0.70

 

0.40

 

75.0

%

 

3.09

 

1.46

 

111.6

%

Basic weighted average shares outstanding

 

135,636

 

135,793

 

(0.1

)%

 

136,111

 

136,174

 

%

Diluted weighted average shares outstanding

 

138,496

 

138,266

 

0.2

%

 

138,876

 

139,109

 

(0.2

)%

a)

See “Note Regarding Non-GAAP Financial Information.”

b)

EPS represents earnings per diluted share.

Additional Highlights:

  • Comparable club sales for the fourth quarter of fiscal 2020 increased 13.0%, compared to the fourth quarter of fiscal 2019. Comparable club sales, excluding the impact of gasoline sales, for the fourth quarter of fiscal 2020 increased 15.9% compared to the fourth quarter of fiscal 2019. Comparable club sales for fiscal 2020 increased 15.9%, compared to fiscal 2019. Comparable club sales, excluding the impact of gasoline sales, for fiscal 2020 increased 21.3% compared to fiscal 2019.
  • Gross profit increased to $742.6 million in the fourth quarter of fiscal 2020 from $622.2 million in the fourth quarter of fiscal 2019. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, increased approximately 50 basis points over the fourth quarter of fiscal 2019. Continued execution of our category profitability improvement initiative was offset by costs associated with the coronavirus pandemic. Gross profit increased to $2,979.0 million in fiscal 2020 from $2,426.8 million in fiscal 2019. Merchandise gross margin rate increased approximately 10 basis points over fiscal year 2019. While merchandise margins benefited from strong sales performance and continued execution of our category profitability improvement initiatives, these drivers were offset by costs associated with the coronavirus pandemic, cost inflation in certain commodities and the decline in our higher-margin apparel business.
  • Selling, general and administrative expenses ("SG&A") increased to $593.3 million in the fourth quarter of fiscal 2020, compared to $536.0 million in the fourth quarter of fiscal 2019. The year-over-year increase in SG&A expense was primarily driven by costs associated with the coronavirus pandemic, including wage increases, bonuses, safety and protective equipment and other operational costs, such as security. SG&A included charges associated with club closing and impairment charges, gains on sale leaseback transactions, and severance costs that, in the aggregate and as applicable, increased SG&A by $16.8 million for the fourth quarter of fiscal 2019. SG&A increased to $2,326.8 million in fiscal 2020, compared to $2,059.4 million in fiscal 2019. SG&A included charges associated with offering costs, club closing and impairment charges, gains on sale leaseback transactions, and severance costs that, in the aggregate and as applicable, increased SG&A by $18.7 million for fiscal 2019.
  • Operating income increased to $144.7 million, or 3.7% of total revenues in the fourth quarter of fiscal 2020, compared to $81.8 million, or 2.4% of total revenues in the fourth quarter of fiscal 2019. Operating income in the fourth quarter of fiscal 2019 included charges associated with club closing and impairment charges, gains on sales leaseback transactions, and severance costs that, in the aggregate and as applicable, reduced operating income by $16.8 million for the fourth quarter of fiscal 2019. Operating income increased to $642.4 million, or 4.2% of total revenues in fiscal 2020, compared to $352.2 million, or 2.7% of total revenues in fiscal 2019. Operating income in fiscal 2019 included charges associated with offering costs, club closing and impairment charges, gains on sales leaseback transactions, and severance costs that, in the aggregate and as applicable, reduced operating income by $18.7 million for fiscal 2019.
  • Interest expense, net, decreased to $15.9 million in the fourth quarter of fiscal 2020, compared to $26.0 million in the fourth quarter of fiscal 2019. Interest expense in the fourth quarter of fiscal 2020 included $1.8 million write-off of accumulated other comprehensive income associated with the de-designation of one of our swap agreements. During the fourth quarter of fiscal 2019, the Company repriced its first lien term loan facility (the "First Lien Term Loan") and reduced its rate by fifty basis points to LIBOR plus 2.25%. The repricing of the First Lien Term Loan allowed the Company to reduce its rate to LIBOR plus 2.00% upon the achievement of certain debt ratings upgrades, which were achieved in July, 2020. Interest expense in the fourth quarter of fiscal 2019 included $1.8 million of fees and write-off of deferred financing fees associated with the repricing of the First Lien Term Loan. The decrease in interest expense was driven by continued de-levering.
    Interest expense, net, decreased to $84.4 million in fiscal 2020, compared to $108.2 million in fiscal 2019. Interest expense in fiscal 2020 included $4.1 million write-off of deferred fees and the original issue discount associated with the partial paydown of our First Lien Term Loan in July and October 2020 and $6.9 million write-off of accumulated other comprehensive income associated with the de-designation of one of our swap agreements. Interest expense in fiscal 2019 included $3.8 million of fees and write off of deferred fees and original issue discounts associated with the partial paydown and repricing of the First Lien Term Loan.
  • Income tax expense was $32.9 million in the fourth quarter of fiscal 2020, compared to income tax expense of $13.7 million in the fourth quarter of fiscal 2019. The fourth quarter of fiscal 2020 included a benefit of $1.0 million from excess tax benefits related to stock-based compensation compared to $0.4 million in the fourth quarter of fiscal 2019. Income tax expense was $136.8 million in fiscal 2020, compared to income tax expense of $56.2 million in fiscal 2019. Fiscal 2020 included a benefit of $11.4 million from excess tax benefits related to stock-based compensation compared to $8.8 million in fiscal 2019.
  • Under our share repurchase program, we repurchased 0.3 million shares of common stock, totaling $11.6 million in the fourth quarter of fiscal 2020. In fiscal 2020, we repurchased 2.6 million shares of common stock, totaling $99.7 million, under such program.

Fiscal 2021 Ending February 1, 2022 Outlook

"Given the level of uncertainty associated with the evolution of the pandemic, member behavior and government stimulus, fiscal 2021 remains difficult to forecast," said Robert W. Eddy, Chief Administrative and Financial Officer, BJ's Wholesale Club. "As a result, we will continue to refrain from offering formal detailed guidance."

Conference Call Details

A conference call to discuss the fourth quarter of fiscal 2020 financial results is scheduled for today, March 4, 2021, 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 and reference conference ID 1090677. 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 1090677. The recorded replay will be available until March 12, 2021 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 221 clubs and 151 BJ's Gas® locations in 17 states.

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

 

13 Weeks
Ended

 

52 Weeks
Ended

 

52 Weeks
Ended

 

 

January 30,
2021

 

February 1,
2020

 

January 30,
2021

 

February 1,
2020

Net sales

 

$

3,860,510

 

$

3,394,761

 

$

15,096,913

 

$

12,888,556

Membership fee income

 

86,103

 

77,564

 

333,104

 

302,151

Total revenues

 

3,946,613

 

3,472,325

 

15,430,017

 

13,190,707

Cost of sales

 

3,204,019

 

2,850,106

 

12,451,061

 

10,763,926

Selling, general and administrative expenses

 

593,273

 

535,950

 

2,326,755

 

2,059,430

Pre-opening expense

 

4,629

 

4,425

 

9,809

 

15,152

Operating income

 

144,692

 

81,844

 

642,392

 

352,199

Interest expense, net

 

15,918

 

25,956

 

84,385

 

108,230

Income from continuing operations before income taxes

 

128,774

 

55,888

 

558,007

 

243,969

Provision for income taxes

 

32,885

 

13,705

 

136,825

 

56,212

Income from continuing operations

 

95,889

 

42,183

 

421,182

 

187,757

Loss from discontinued operations, net of income taxes

 

(7

)

 

(420

)

 

(152

)

 

(581

)

Net income

 

$

95,882

 

$

41,763

 

$

421,030

 

$

187,176

Income per share attributable to common stockholders - basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.71

 

$

0.31

 

$

3.09

 

$

1.38

Loss from discontinued operations

 

 

 

 

(0.01

)

Net income

 

$

0.71

 

$

0.31

 

$

3.09

 

$

1.37

Income per share attributable to common stockholders - diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.69

 

$

0.31

 

$

3.03

 

$

1.35

Loss from discontinued operations

 

 

(0.01

)

 

 

Net income

 

$

0.69

 

$

0.30

 

$

3.03

 

$

1.35

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

135,636

 

135,793

 

136,111

 

136,174

Diluted

 

138,496

 

138,266

 

138,876

 

139,109

 

BJ'S WHOLESALE CLUB HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

(Unaudited)

 

 

January 30,
2021

 

February 1,
2020

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

43,518

 

$

30,204

Accounts receivable, net

 

172,719

 

206,353

Merchandise inventories

 

1,205,695

 

1,081,502

Prepaid expense and other current assets

 

48,649

 

41,961

Total current assets

 

1,470,581

 

1,360,020

 

 

 

 

 

 

 

 

 

Operating lease right-of-use assets, net

 

2,058,763

 

2,060,059

Property and equipment, net

 

797,789

 

760,208

Goodwill

 

924,134

 

924,134

Intangibles, net

 

135,123

 

146,985

Deferred taxes

 

5,737

 

Other assets

 

19,403

 

18,374

Total assets

 

$

5,411,530

 

$

5,269,780

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

260,000

 

$

343,377

Current portion of operating lease liabilities

 

131,513

 

123,751

Accounts payable

 

988,074

 

786,412

Accrued expenses and other current liabilities

 

651,625

 

547,876

Total current liabilities

 

2,031,212

 

1,801,416

 

 

 

 

 

 

 

 

 

Long-term lease liabilities

 

1,988,840

 

1,986,790

Long-term debt

 

846,175

 

1,337,308

Deferred income taxes

 

45,096

 

46,200

Other noncurrent liabilities

 

180,880

 

152,410

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY (DEFICIT)

 

319,327

 

(54,344

)

Total liabilities and stockholders' equity (deficit)

 

$

5,411,530

 

$

5,269,780

 

BJ'S WHOLESALE CLUB HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

 

 

52 Weeks
Ended

 

52 Weeks
Ended

 

 

January 30,
2021

 

February 1,
2020

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net income

 

$

421,030

 

$

187,176

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

167,454

 

157,000

Amortization of debt issuance costs and accretion of original issue discount

 

4,362

 

5,172

Debt extinguishment charges

 

4,077

 

2,167

Impairment charges

 

 

13,306

Stock-based compensation expense

 

32,150

 

18,796

Deferred income tax provision

 

(9,197

)

 

10,246

Change in operating leases and other non-cash items

 

9,389

 

2,028

Increase (decrease) in cash due to changes in:

 

 

 

 

 

 

 

 

Accounts receivable

 

33,634

 

(12,053

)

Merchandise inventories

 

(124,193

)

 

(29,196

)

Accounts payable

 

201,663

 

(30,468

)

Accrued expenses

 

97,690

 

15,640

Other operating assets and liabilities, net

 

30,487

 

15,329

Net cash provided by operating activities

 

868,546

 

355,143

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Additions to property and equipment, net of disposals

 

(218,333

)

 

(196,901

)

Proceeds from sale leaseback transactions

 

25,893

 

21,606

Net cash used in investing activities

 

(192,440

)

 

(175,295

)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Payments on long term debt

 

(3,297

)

 

(14,829

)

Paydown of First Lien Term Loan

 

(510,000

)

 

(200,000

)

Net (payments) borrowings on ABL Facility

 

(68,000

)

 

89,000

Debt issuance costs paid

 

 

(21

)

Dividends paid

 

(25

)

 

(25

)

Net cash received from stock option exercises

 

17,985

 

11,072

Net cash received from Employee Stock Purchase Program (ESPP)

 

2,676

 

1,728

Acquisition of treasury stock

 

(106,203

)

 

(67,305

)

Proceeds from financing obligations

 

5,056

 

4,202

Other financing activities

 

(984

)

 

(612

)

Net cash used in financing activities

 

(662,792

)

 

(176,790

)

Net increase in cash and cash equivalents

 

13,314

 

3,058

Cash and cash equivalents at beginning of period

 

30,204

 

27,146

Cash and cash equivalents at end of period

 

$

43,518

 

$

30,204

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, adjusted EBITDA, free cash flow, net debt and net debt to LTM adjusted EBITDA.

We define adjusted net income as net income attributable to common stockholders adjusted for: offering costs; club closing and impairment charges; reduction in force severance; gain on sale leaseback transactions; charges related to debt restructurings and retirements; loss on cash flow hedge; 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.

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; pre-opening expenses; non-cash rent; strategic consulting; offering costs; club closing and impairment charges; reduction in force severance and other adjustments.

We define free cash flow as net cash provided by operating activities less additions to property and equipment, net of disposals, plus proceeds from sale leaseback transactions.

We define net debt as total debt outstanding less cash and cash equivalents.

We define net debt to LTM adjusted EBITDA as net debt at the balance sheet date divided by adjusted EBITDA for the trailing twelve-month period.

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 such measures 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. In addition, adjusted EBITDA excludes pre-opening expenses, because we do not believe these expenses are indicative of the underlying operating performance of our stores. The amount and timing of pre-opening expenses are dependent on, among other things, the size of new stores opened and the number of new stores opened during any given period.

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.

We present free cash flow, which is not a recognized financial measure under GAAP, because we use it to report to our Board of Directors and we believe it assists investors and analysts in evaluating our liquidity. Free cash flow should not be considered as an alternative to cash flows from operations as a liquidity measure. We present net debt and net debt to LTM adjusted EBITDA, which are not recognized as financial measures under GAAP, because we use them to report to our Board of Directors and we believe they assist investors and analysts in evaluating our borrowing capacity. Net debt to LTM adjusted EBITDA is a key financial measure that is used by management to assess the borrowing capacity of the Company.

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, adjusted EBITDA and net debt to LTM 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, adjusted EBITDA, free cash flow, net debt and net debt to LTM adjusted EBITDA should not be considered as alternatives to any other 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, adjusted EBITDA or net debt to LTM adjusted EBITDA in the future, and any such modification may be material. In addition, adjusted net income, adjusted net income per diluted share, adjusted EBITDA, free cash flow, net debt and net debt to LTM 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, adjusted EBITDA, free cash flow, net debt and net debt to LTM 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

 

13 Weeks
Ended

 

52 Weeks
Ended

 

52 Weeks
Ended

 

 

January 30,
2021

 

February 1,
2020

 

January 30,
2021

 

February 1,
2020

Net income as reported

 

$

95,882

 

$

41,763

 

$

421,030

 

$

187,176

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Offering costs (a)

 

 

 

 

1,928

Gains on sale leaseback transactions (b)

 

 

(2,585

)

 

 

(2,585

)

Club closing and impairment charges (c)

 

 

15,383

 

 

15,383

Loss on cash flow hedge (d)

 

1,829

 

 

6,926

 

Charges and write-offs related to debt paydown (e)

 

 

1,788

 

4,077

 

3,820

Reduction in force severance (f)

 

 

3,994

 

 

3,994

Tax impact of adjustments to net income (g)

 

(512

)

 

(5,242

)

 

(3,081

)

 

(6,311

)

Adjusted net income

 

$

97,199

 

$

55,101

 

$

428,952

 

$

203,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average diluted shares outstanding

 

138,496

 

138,266

 

138,876

 

139,109

Adjusted net income per diluted share (h)

 

$

0.70

 

$

0.40

 

$

3.09

 

$

1.46

(a)

Represents costs related to registered offerings by selling stockholders.

(b)

Represents a gain from the sale leaseback of one of our new Michigan locations.

(c)

Represents primarily closing costs associated with our clubs in Charlotte, N.C. and Geneva, N.Y., which closed in the fourth quarter of fiscal 2019, and other impairment charges.

(d)

Represents the reclassification into earnings of accumulated other comprehensive income associated with the de-designation of hedge accounting on one of our swap agreements due to the partial paydown of the First Lien Term Loan.

(e)

Represents the fees and write-off of deferred fees and original issue discount associated with the partial paydown and 2019 repricing of our First Lien Term Loan.

(f)

Represents severance charges associated with a reduction in workforce announced in January 2020.

(g)

Represents the tax effect of the above adjustments at a statutory tax rate of approximately 28%.

(h)

Adjusted net income per diluted share is measured using weighted average diluted shares outstanding.

 

BJ'S WHOLESALE CLUB HOLDINGS, INC.

Reconciliation to Adjusted EBITDA

(Amounts in thousands)

(Unaudited)

 

 

13 Weeks
Ended

 

13 Weeks
Ended

 

52 Weeks
Ended

 

52 Weeks
Ended

 

 

January 30,
2021

 

February 1,
2020

 

January 30,
2021

 

February 1,
2020

Income from continuing operations

 

$

95,889

 

$

42,183

 

$

421,182

 

$

187,757

Interest expense, net

 

15,918

 

25,956

 

84,385

 

108,230

Provision for income taxes

 

32,885

 

13,705

 

136,825

 

56,212

Depreciation and amortization

 

43,123

 

40,080

 

167,454

 

157,000

Stock-based compensation expense (a)

 

8,905

 

4,812

 

32,150

 

18,796

Pre-opening expenses (b)

 

4,629

 

4,425

 

9,809

 

15,152

Non-cash rent (c)

 

2,653

 

2,043

 

4,942

 

8,374

Strategic consulting (d)

 

 

 

 

11,349

Reduction in force severance (e)

 

 

3,994

 

 

3,994

Offering costs (f)

 

 

 

 

1,928

Club closing and impairment charges (g)

 

 

15,383

 

 

15,383

Other adjustments (h)

 

516

 

(2,364

)

 

745

 

(2,551

)

Adjusted EBITDA

 

$

204,518

 

$

150,217

 

$

857,492

 

$

581,624

(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)

Consists of an adjustment to remove the non-cash portion of rent expense.

(d)

Represents fees paid to external consultants for strategic initiatives of limited duration.

(e)

Represents severance charges associated with a reduction in workforce announced in January 2020.

(f)

Represents costs related to registered offerings by selling stockholders.

(g)

Represents primarily closing costs associated with our clubs in Charlotte, N.C. and Geneva, N.Y., which closed in the fourth quarter of fiscal 2019, and other impairment charges.

(h)

Other non-cash items, including non-cash accretion on asset retirement obligations and obligations associated with our post-retirement medical plan.

 

BJ'S WHOLESALE CLUB HOLDINGS, INC.

Reconciliation to Free Cash Flow

(Amounts in thousands)

(Unaudited)

 

 

13 Weeks
Ended

 

13 Weeks
Ended

 

52 Weeks
Ended

 

52 Weeks
Ended

 

 

January 30,
2021

 

February 1,
2020

 

January 30,
2021

 

February 1,
2020

Net cash provided by operating activities

 

$

66,574

 

$

133,621

 

$

868,546

 

$

355,143

Less: Additions to property and equipment, net of disposals

 

65,533

 

52,473

 

218,333

 

196,901

Plus: Proceeds from sale leaseback transactions

 

 

21,606

 

25,893

 

21,606

Free cash flow

 

$

1,041

 

$

102,754

 

$

676,106

 

$

179,848

 

BJ'S WHOLESALE CLUB HOLDINGS, INC.

Reconciliation of Net Debt and Net Debt to LTM adjusted EBITDA

(Amounts in thousands)

(Unaudited)

 

 

January 30,
2021

Total debt

 

$

1,106,175

Less: Cash and cash equivalents

 

43,518

Net Debt

 

$

1,062,657

 

 

 

 

 

LTM Adjusted EBITDA

 

$

857,492

 

 

 

 

 

Net debt to LTM adjusted EBITDA

 

1.2x

 

Investors:
Faten Freiha, BJ's Wholesale Club
(774) 512-6320
ffreiha@bjs.com

Media:
Jennie Hardin, BJ’s Wholesale Club
(774) 512-6978
jhardin@bjs.com

Source: BJ’s Wholesale Club Holdings, Inc.

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