BJ
$61.21
Bj's Wholesale Club Holdings
$1.47
2.46%
Earnings Details
2nd Quarter July 2021
Thursday, August 19, 2021 6:45:00 AM
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Summary

Bj's Wholesale Club Holdings Beats

Bj's Wholesale Club Holdings (BJ) reported 2nd Quarter July 2021 earnings of $0.82 per share on revenue of $4.2 billion. The consensus earnings estimate was $0.65 per share on revenue of $3.7 billion. The Earnings Whisper number was $0.70 per share. Revenue grew 5.6% on a year-over-year basis.

Results
Reported Earnings
$0.82
Earnings Whisper
$0.70
Consensus Estimate
$0.65
Reported Revenue
$4.18 Bil
Revenue Estimate
$3.74 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

BJ’s Wholesale Club Holdings, Inc. Announces Second Quarter Fiscal 2021 Results

Company Reports Record Second Quarter Profits 

Second Quarter Fiscal 2021 Highlights

  • Membership size and quality continues to improve; first-year renewal rates remain at historic levels.
  • Total comparable sales increased by 4.0%, reflecting two year stacked comp of 21.2%.
  • Comparable club sales, excluding gasoline sales, decreased by 3.4%, reflecting two-year stacked comp of 20.8%.
  • Digitally-enabled sales growth was 4%, reflecting two-year stacked comp growth of 304%. Members continue to aggressively adopt new services such as curbside pickup.
  • Consistent, robust performance across categories and geographies.
  • Earnings per diluted share of $0.80 reflects a 5.3% year-over-year increase.
  • Adjusted earnings per diluted share of $0.82 reflects a 6.5% year-over-year growth.
  • Net cash provided by operating activities was $310.3 million and free cash flow was $239.7 million for the second quarter of fiscal 2021.

WESTBOROUGH, Mass.--(BUSINESS WIRE)--BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) (the "Company") today announced its financial results for the thirteen and twenty-six weeks ended July 31, 2021.

"When I reflect on our impressive performance, it is clear that our progress against our strategic priorities has powered our success. We drove outstanding membership results, expanded our market share and continued to benefit from elevated consumer spending trends," said Bob Eddy, President and Chief Executive Officer, BJ’s Wholesale Club. "I am thankful for our team members’ dedication and excellent execution, which continues to enable our success. We have invested into our team members, the value of our membership, our digital infrastructure and physical footprint to continue to accelerate our growth flywheel. With these investments, we are confident that we are well positioned for long-term success."

Key Measures for the Thirteen Weeks Ended July 31, 2021 (Second Quarter of Fiscal 2021) and for the Twenty-Six Weeks Ended July 31, 2021 (First Half of Fiscal 2021):

BJ'S WHOLESALE CLUB HOLDINGS, INC.

(Amounts in thousands, except per share amounts)

 

 

13 Weeks Ended
July 31, 2021

 

13 Weeks Ended
August 1, 2020

 

% Growth

 

26 Weeks Ended
July 31, 2021

 

26 Weeks Ended
August 1, 2020

 

% Growth

Net sales

$

4,088,402

 

 

$

3,871,640

 

 

5.6

%

 

$

7,870,236

 

 

$

7,589,680

 

 

3.7

%

Membership fee income

88,753

 

 

82,490

 

 

7.6

%

 

175,141

 

 

162,055

 

 

8.1

%

Total revenues

4,177,155

 

 

3,954,130

 

 

5.6

%

 

8,045,377

 

 

7,751,735

 

 

3.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

163,784

 

 

163,595

 

 

0.1

%

 

290,038

 

 

307,345

 

 

(5.6)

%

Income from continuing operations

110,997

 

 

106,668

 

 

4.1

%

 

192,583

 

 

202,410

 

 

(4.9)

%

Adjusted EBITDA (a)

220,140

 

 

216,850

 

 

1.5

%

 

422,549

 

 

410,765

 

 

2.9

%

Net income

110,988

 

 

106,618

 

 

4.1

%

 

192,567

 

 

202,352

 

 

(4.8)

%

EPS (b)

0.80

 

 

0.76

 

 

5.3

%

 

1.39

 

 

1.46

 

 

(4.8)

%

Adjusted net income (a)

113,324

 

 

107,542

 

 

5.4

%

 

213,019

 

 

203,276

 

 

4.8

%

Adjusted EPS (a)

0.82

 

 

0.77

 

 

6.5

%

 

1.54

 

 

1.46

 

 

5.5

%

Basic weighted average shares outstanding

135,521

 

 

136,706

 

 

(0.9)

%

 

135,615

 

 

136,398

 

 

(0.6)

%

Diluted weighted average shares outstanding

138,197

 

 

139,522

 

 

(0.9)

%

 

138,430

 

 

138,975

 

 

(0.4)

%

  1. See “Note Regarding Non-GAAP Financial Information.”
  2. EPS represents earnings per diluted share.

     

Additional Highlights:

  • Comparable club sales for the second quarter of fiscal 2021 increased 4.0% compared to the second quarter of fiscal 2020. Comparable club sales, excluding the impact of gasoline sales, for the second quarter of fiscal 2021 decreased 3.4% compared to the second quarter of fiscal 2020. Comparable club sales for the first half of fiscal 2021 increased 2.2% compared to the first half of fiscal 2020. Comparable club sales, excluding the impact of gasoline sales, for the first half of fiscal 2021 decreased 4.2% compared to the first half of fiscal 2020.
  • Gross profit increased to $763.5 million in the second quarter of fiscal 2021 from $756.4 million in the second quarter of fiscal 2020. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, increased 30 basis points over the second quarter of fiscal 2020. Merchandise margins benefited from improved private label penetration and the mix of our general merchandise sales, partially offset by increased freight costs and price investments in inflationary categories. Gross profit decreased to $1,490.3 million in the first half of fiscal 2021 from $1,493.1 million in the first half of fiscal 2020. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, increased by approximately 50 basis points over the first half of fiscal 2020. Merchandise margins benefited from the mix of our general merchandise sales, improved private label penetration and continued execution of our category profitability improvement initiatives, partially offset by increased freight costs and price investments in inflationary categories.
  • Selling, general and administrative expenses ("SG&A") increased to $598.1 million in the second quarter of fiscal 2021, compared to $590.8 million in the second quarter of fiscal 2020. The increase in SG&A expense in the second quarter of fiscal 2021 was driven by a team member recognition bonus of approximately $8.0 million. SG&A increased to $1,198.0 million in the first half of fiscal 2021 compared to $1,181.2 million in the first half of fiscal 2020. SG&A in the first half of fiscal 2021 included $17.5 million of stock-based compensation expense related to the acceleration of stock awards associated with the passing of Lee Delaney, $2.3 million of severance charges associated with labor reductions that resulted from the realignment of our field operations and $8.0 million associated with a team member recognition bonus.
  • Operating income increased to $163.8 million, or 3.9% of total revenues, in the second quarter of fiscal 2021 compared to $163.6 million, or 4.1% of total revenues, in the second quarter of fiscal 2020. Operating income decreased to $290.0 million, or 3.6% of total revenues, in the first half of fiscal 2021 compared to $307.3 million, or 4.0% of total revenues, in the first half of fiscal 2020.
  • Interest expense, net, decreased to $16.4 million in the second quarter of fiscal 2021 compared to $20.7 million in the second quarter of fiscal 2020. Interest expense in the second quarter of fiscal 2021 included a $3.2 million release of accumulated other comprehensive income related to the July 2021 payment on the Company’s ABL Facility. Interest expense, net, decreased to $35.7 million in the first half of fiscal 2021 compared to $42.6 million in the first half of fiscal 2020. Interest expense in the first half of fiscal 2021 included an $8.0 million release of accumulated other comprehensive income and $0.7 million expense of deferred financing costs associated with the principal prepayment on the Company's First Lien Term Loan and payment on the ABL Facility. The decrease in interest expense was driven by continued de-levering.
  • Income tax expense was $36.4 million in the second quarter of fiscal 2021 compared to income tax expense of $36.2 million in the second quarter of fiscal 2020. The second quarter of fiscal 2021 included a benefit of $3.2 million from excess tax benefits related to stock-based compensation compared to $2.6 million in the second quarter of fiscal 2020. Income tax expense was $61.7 million in the first half of fiscal 2021 compared to income tax expense of $62.4 million in the first half of fiscal 2020. The first half of fiscal 2021 included a benefit of $6.4 million from excess tax benefits related to stock-based compensation compared to $7.1 million in the first half of fiscal 2020.
  • Under our share repurchase program, we repurchased 1,054,116 shares of common stock, totaling $49.6 million in the second quarter of fiscal 2021. In the first half of fiscal 2021, we repurchased 1,369,116 shares of common stock, totaling $63.5 million, under such program.

     

Fiscal 2021 Ending January 29, 2022 Outlook

"Looking ahead, we remain confident our business will continue to thrive and that our solid membership trends, assortment initiatives, enhanced digital capabilities and robust real estate pipeline will drive sustained and strong profitable growth," said Laura Felice, Executive Vice President, Chief Financial Officer, BJ's Wholesale Club. "Given the level of uncertainty associated with the evolution of the pandemic, fiscal 2021 remains difficult to forecast. Our view of the future has improved from last quarter but we will continue to refrain from offering formal detailed guidance."

Conference Call Details

A conference call to discuss the second quarter of fiscal 2021 financial results is scheduled for today, August 19, 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 to reference conference ID 8492204. 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 8492204. The recorded replay will be available until August 27, 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 222 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

July 31, 2021

 

13 Weeks Ended

August 1, 2020

 

26 Weeks Ended

July 31, 2021

 

26 Weeks Ended

August 1, 2020

Net sales

$

4,088,402

 

 

$

3,871,640

 

 

$

7,870,236

 

 

$

7,589,680

 

Membership fee income

88,753

 

 

82,490

 

 

175,141

 

 

162,055

 

Total revenues

4,177,155

 

 

3,954,130

 

 

8,045,377

 

 

7,751,735

 

Cost of sales

3,413,625

 

 

3,197,752

 

 

6,555,122

 

 

6,258,645

 

Selling, general and administrative expenses

598,113

 

 

590,814

 

 

1,198,023

 

 

1,181,175

 

Pre-opening expense

1,633

 

 

1,969

 

 

2,194

 

 

4,570

 

Operating income

163,784

 

 

163,595

 

 

290,038

 

 

307,345

 

Interest expense, net

16,428

 

 

20,741

 

 

35,713

 

 

42,585

 

Income from continuing operations before income taxes

147,356

 

 

142,854

 

 

254,325

 

 

264,760

 

Provision for income taxes

36,359

 

 

36,186

 

 

61,742

 

 

62,350

 

Income from continuing operations

110,997

 

 

106,668

 

 

192,583

 

 

202,410

 

Loss from discontinued operations, net of income taxes

(9)

 

 

(50)

 

 

(16)

 

 

(58)

 

Net income

$

110,988

 

 

$

106,618

 

 

$

192,567

 

 

$

202,352

 

Income per share attributable to common stockholders - basic:

 

 

 

 

 

 

 

Income from continuing operations

$

0.82

 

 

$

0.78

 

 

$

1.42

 

 

$

1.48

 

Loss from discontinued operations

 

 

 

 

 

 

 

Net income

$

0.82

 

 

$

0.78

 

 

$

1.42

 

 

$

1.48

 

Income per share attributable to common stockholders - diluted:

 

 

 

 

 

 

 

Income from continuing operations

$

0.80

 

 

$

0.76

 

 

$

1.39

 

 

$

1.46

 

Loss from discontinued operations

 

 

 

 

 

 

 

Net income

$

0.80

 

 

$

0.76

 

 

$

1.39

 

 

$

1.46

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

Basic

135,521

 

 

136,706

 

 

135,615

 

 

136,398

 

Diluted

138,197

 

 

139,522

 

 

138,430

 

 

138,975

 

BJ'S WHOLESALE CLUB HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except per share amounts)

(Unaudited)

 

 

July 31, 2021

 

August 1, 2020

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

42,414

 

 

$

168,811

 

Accounts receivable, net

169,135

 

 

170,595

 

Merchandise inventories

1,033,555

 

 

1,005,274

 

Prepaid expense and other current assets

46,446

 

 

64,074

 

Total current assets

1,291,550

 

 

1,408,754

 

 

 

 

 

Operating lease right-of-use assets, net

2,138,690

 

 

2,043,713

 

Property and equipment, net

841,521

 

 

755,678

 

Goodwill

924,134

 

 

924,134

 

Intangibles, net

129,881

 

 

141,054

 

Deferred taxes

2,973

 

 

 

Other assets

18,850

 

 

20,687

 

Total assets

$

5,347,599

 

 

$

5,294,020

 

 

 

 

 

LIABILITIES

 

 

 

Current liabilities:

 

 

 

Current portion of operating lease liabilities

134,421

 

 

128,010

 

Accounts payable

1,029,726

 

 

1,004,725

 

Accrued expenses and other current liabilities

675,049

 

 

631,500

 

Total current liabilities

1,839,196

 

 

1,764,235

 

 

 

 

 

Long-term lease liabilities

2,069,148

 

 

1,971,634

 

Long-term debt

747,730

 

 

1,202,209

 

Deferred income taxes

41,635

 

 

43,111

 

Other noncurrent liabilities

161,538

 

 

193,730

 

 

 

 

 

STOCKHOLDERS' EQUITY

488,352

 

 

119,101

 

Total liabilities and stockholders' equity

$

5,347,599

 

 

$

5,294,020

 

BJ'S WHOLESALE CLUB HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands, except per share amounts)

(Unaudited)

 

 

26 Weeks Ended

July 31, 2021

 

26 Weeks Ended

August 1, 2020

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

Net income

$

192,567

 

 

$

202,352

 

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

 

 

 

Depreciation and amortization

89,834

 

 

82,171

 

Amortization of debt issuance costs and accretion of original issue discount

1,724

 

 

2,363

 

Debt extinguishment charges

657

 

 

1,283

 

Stock-based compensation expense

34,634

 

 

14,578

 

Deferred income tax provision (benefit)

(6,260)

 

 

438

 

Changes in operating leases and other non-cash items

3,187

 

 

4,175

 

Increase (decrease) in cash due to changes in:

 

 

 

Accounts receivable

3,584

 

 

35,758

 

Merchandise inventories

172,140

 

 

76,228

 

Accounts payable

41,652

 

 

218,313

 

Accrued expenses

26,049

 

 

70,971

 

Other operating assets and liabilities, net

(455)

 

 

25,062

 

Net cash provided by operating activities

559,313

 

 

733,692

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

Additions to property and equipment, net of disposals and proceeds from sale leaseback transactions

(128,728)

 

 

(78,901)

 

Net cash used in investing activities

(128,728)

 

 

(78,901)

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

Payments on long term debt

(100,000)

 

 

(153,297)

 

Payments on ABL Facility

(260,000)

 

 

(328,000)

 

Net cash received from stock option exercises

4,913

 

 

9,005

 

Net cash received from Employee Stock Purchase Program (ESPP)

1,877

 

 

1,107

 

Acquisition of treasury stock

(79,269)

 

 

(44,533)

 

Proceeds from financing obligations

1,333

 

 

 

Other financing activities

(543)

 

 

(466)

 

Net cash used in financing activities

(431,689)

 

 

(516,184)

 

Net increase (decrease) in cash and cash equivalents

(1,104)

 

 

138,607

 

Cash and cash equivalents at beginning of period

43,518

 

 

30,204

 

Cash and cash equivalents at end of period

$

42,414

 

 

$

168,811

 

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 last twelve months (“LTM”) adjusted EBITDA.

We define adjusted net income as net income attributable to common stockholders adjusted for: stock-based compensation related to acceleration of stock awards; severance charges and expenses related to debt payments; 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; 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 clubs. The amount and timing of pre-opening expenses are dependent on, among other things, the size of new clubs opened and the number of new clubs 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

July 31, 2021

 

13 Weeks Ended

August 1, 2020

 

26 Weeks Ended

July 31, 2021

 

26 Weeks Ended

August 1, 2020

Net income as reported

$

110,988

 

 

$

106,618

 

 

$

192,567

 

 

$

202,352

 

Adjustments:

 

 

 

 

 

 

 

Stock-based compensation related to acceleration of stock awards (a)

 

 

 

 

17,494

 

 

 

Loss on cash flow hedge (b)

3,245

 

 

 

 

7,954

 

 

 

Charges related to debt payments (c)

 

 

1,283

 

 

657

 

 

1,283

 

Severance charges (d)

 

 

 

 

2,300

 

 

 

Tax impact of adjustments to net income (e)

(909)

 

 

(359)

 

 

(7,953)

 

 

(359)

 

Adjusted net income

$

113,324

 

 

$

107,542

 

 

$

213,019

 

 

$

203,276

 

 

 

 

 

 

 

 

 

Weighted-average diluted shares outstanding

138,197

 

 

139,522

 

 

138,430

 

 

138,975

 

Adjusted net income per diluted share (f)

$

0.82

 

 

$

0.77

 

 

$

1.54

 

 

$

1.46

 

  1. Represents accelerated vesting of equity awards, which were related to the passing of Lee Delaney.
  2. 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 payment of debt.
  3. Represents the expensing of fees and deferred fees and original issue discount associated with the partial prepayment of debt.
  4. Represents severance charges associated with labor reductions that resulted from the realignment of our field operations.
  5. Represents the tax effect of the above adjustments at a statutory tax rate of approximately 28%.
  6. 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

July 31, 2021

 

13 Weeks Ended

August 1, 2020

 

26 Weeks Ended

July 31, 2021

 

26 Weeks Ended

August 1, 2020

Income from continuing operations

$

110,997

 

 

$

106,668

 

 

$

192,583

 

 

$

202,410

 

Interest expense, net

16,428

 

 

20,741

 

 

35,713

 

 

42,585

 

Provision for income taxes

36,359

 

 

36,186

 

 

61,742

 

 

62,350

 

Depreciation and amortization

45,448

 

 

41,332

 

 

89,834

 

 

82,171

 

Stock-based compensation expense (a)

7,334

 

 

9,064

 

 

34,634

 

 

14,578

 

Pre-opening expenses (b)

1,633

 

 

1,969

 

 

2,194

 

 

4,570

 

Non-cash rent (c)

1,765

 

 

511

 

 

3,182

 

 

2,015

 

Severance (d)

 

 

 

 

2,300

 

 

 

Other adjustments (e)

176

 

 

379

 

 

367

 

 

86

 

Adjusted EBITDA

$

220,140

 

 

$

216,850

 

 

$

422,549

 

 

$

410,765

 

  1. Represents total stock-based compensation expense.
  2. Represents direct incremental costs of opening or relocating a facility that are charged to operations as incurred.
  3. Consists of an adjustment to remove the non-cash portion of rent expense.
  4. Represents severance charges associated with labor reductions that resulted from the realignment of our field operations.
  5. 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

July 31, 2021

 

13 Weeks Ended

August 1, 2020

 

26 Weeks Ended

July 31, 2021

 

26 Weeks Ended

August 1, 2020

Net cash provided by operating activities

$

310,348

 

 

$

263,790

 

 

$

559,313

 

 

$

733,692

 

Less: Additions to property and equipment, net of disposals

73,118

 

 

47,750

 

 

147,808

 

 

82,962

 

Plus: Proceeds from sale leaseback transactions

2,450

 

 

4,061

 

 

19,080

 

 

4,061

 

Free cash flow

$

239,680

 

 

$

220,101

 

 

$

430,585

 

 

$

654,791

 

BJ'S WHOLESALE CLUB HOLDINGS, INC.

Reconciliation of Net Debt and Net Debt to LTM adjusted EBITDA

(Amounts in thousands)

(Unaudited)

 

 

July 31, 2021

Total debt

$

747,730

 

Less: Cash and cash equivalents

42,414

 

Net Debt

$

705,316

 

 

 

Income from continuing operations

$

411,355

 

Interest expense, net

77,513

 

Provision for income taxes

136,217

 

Depreciation and amortization

175,117

 

Stock-based compensation expense (a)

52,206

 

Preopening expenses (b)

7,433

 

Non-cash rent (c)

6,109

 

Severance (d)

2,300

 

Other adjustments (e)

1,026

 

Adjusted EBITDA

$

869,276

 

 

 

Net debt to LTM adjusted EBITDA

0.8

x

  1. Represents total stock-based compensation expense.
  2. Represents direct incremental costs of opening or relocating a facility that are charged to operations as incurred.
  3. Consists of an adjustment to remove the non-cash portion of rent expense.
  4. Represents severance charges associated with labor reductions that resulted from the realignment of our field operations.
  5. Other non-cash items, including non-cash accretion on asset retirement obligations and obligations associated with our post-retirement medical plan.

 

Investor:
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.