BJ
$39.07
Bj's Wholesale Club Holdings
($1.38)
(3.41%)
Earnings Details
2nd Quarter July 2020
Thursday, August 20, 2020 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 2020 earnings of $0.77 per share on revenue of $4.0 billion. The consensus earnings estimate was $0.60 per share on revenue of $3.6 billion. The Earnings Whisper number was $0.60 per share. Revenue grew 18.2% on a year-over-year basis.

Results
Reported Earnings
$0.77
Earnings Whisper
$0.60
Consensus Estimate
$0.60
Reported Revenue
$3.95 Bil
Revenue Estimate
$3.64 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

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

  • Comparable club sales, excluding gasoline sales, increased by 24.2%, including digitally enabled sales growth of over 300% for the second quarter of fiscal 2020.
  • Income from continuing operations increased by 96.5% year-over-year to $106.7 million, for the second quarter of fiscal 2020.
  • Adjusted EBITDA increased by 41.6% year-over-year to $216.9 million, for the second quarter of fiscal 2020.
  • Earnings per diluted share of $0.76, reflects a 94.9% year-over-year growth.
  • Adjusted earnings per diluted share of $0.77, reflects 97.4% year-over-year growth.
  • Net cash provided by operating activities was $733.7 million and free cash flow was $654.8 million, for the first half of fiscal 2020.
  • Company recognizes dedication of BJ's team members and invests $31.4 million and $82.7 million in wages and bonuses, quarter to date and year to date, respectively.

 

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 August 1, 2020.

“We continue to be extremely grateful for the dedication of our team members, who have exemplified our core values and continue to serve our members and communities during these difficult times” said Lee Delaney, President and Chief Executive Officer, BJ’s Wholesale Club. "We delivered another remarkable quarter with strong comp growth and record profitability. Our business has been transformed and strengthened in the last six months by every measure. We are extremely well positioned to continue to win as we invest in digital capabilities, membership, assortment, marketing and geographic expansion to further accelerate this transformation."

Key Measures for the Thirteen Weeks Ended August 1, 2020 (Second Quarter of Fiscal 2020) and for the Twenty-Six Weeks Ended August 1, 2020 (First Half of Fiscal 2020):

BJ'S WHOLESALE CLUB HOLDINGS, INC.

 

 

 

 

 

 

 

 

(Amounts in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

 

13 Weeks Ended

 

 

 

26 Weeks Ended

 

26 Weeks Ended

 

 

 

 

August 1, 2020

 

August 3, 2019

 

% Growth

 

August 1, 2020

 

August 3, 2019

 

% Growth

Net sales

 

$

3,871,640

 

 

$

3,271,145

 

 

18.4

%

 

$

7,589,680

 

 

$

6,340,908

 

 

19.7

%

Membership fee income

 

82,490

 

 

74,697

 

 

10.4

%

 

162,055

 

 

148,070

 

 

9.4

%

Total revenues

 

3,954,130

 

 

3,345,842

 

 

18.2

%

 

7,751,735

 

 

6,488,978

 

 

19.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

163,595

 

 

98,741

 

 

65.7

%

 

307,345

 

 

169,423

 

 

81.4

%

Income from continuing operations

 

106,668

 

 

54,293

 

 

96.5

%

 

202,410

 

 

90,378

 

 

124.0

%

Adjusted EBITDA (a)

 

216,850

 

 

153,187

 

 

41.6

%

 

410,765

 

 

277,263

 

 

48.1

%

Net income

 

106,618

 

 

54,523

 

 

95.5

%

 

202,352

 

 

90,321

 

 

124.0

%

EPS (b)

 

0.76

 

 

0.39

 

 

94.9

%

 

1.46

 

 

0.65

 

 

124.6

%

Adjusted net income(a)

 

107,542

 

 

55,050

 

 

95.4

%

 

203,276

 

 

91,728

 

 

121.6

%

Adjusted EPS (a)

 

0.77

 

 

0.39

 

 

97.4

%

 

1.46

 

 

0.66

 

 

121.2

%

Basic weighted average shares outstanding

 

136,706

 

 

136,571

 

 

0.1

%

 

136,398

 

 

136,690

 

 

(0.2

)%

Diluted weighted average shares outstanding

 

139,522

 

 

139,516

 

 

%

 

138,975

 

 

139,989

 

 

(0.7

)%

  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 2020 increased 17.2%, compared to the second quarter of fiscal 2019. Comparable club sales, excluding the impact of gasoline sales, for the second quarter of fiscal 2020 increased 24.2% compared to the second quarter of fiscal 2019. Comparable club sales for the first half of fiscal 2020 increased 18.5%, compared to the first half of fiscal 2019. Comparable club sales, excluding the impact of gasoline sales, for the first half of fiscal 2020 increased 25.6% compared to the first half of fiscal 2019.
  • Gross profit increased to $756.4 million in the second quarter of fiscal 2020 from $612.8 million in the second quarter of fiscal 2019. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, remained flat over the second quarter of fiscal 2019. Continued execution of our category profitability improvement and improved sales performance in our general merchandise business was offset by cost inflation of certain commodities, most notably beef and distribution costs associated with the coronavirus pandemic. Gross profit increased to $1,493.1 million in the first half of fiscal 2020 from $1,186.9 million in the first half of fiscal 2019. Merchandise gross margin rate, which excludes gasoline sales and membership fee income, decreased by approximately 20 basis points over the first half of fiscal 2019. While merchandise margins benefited from strong sales performance and continued execution of our category profitability improvement initiatives, these drivers were offset by distribution costs associated with the coronavirus pandemic, the decline in our higher-margin apparel business and temporary shut-down of our higher-margin services business in the first quarter of fiscal 2020.
  • Selling, general and administrative expenses ("SG&A") increased to $590.8 million in the second quarter of fiscal 2020, compared to $511.9 million in the second quarter of fiscal 2019. SG&A in the second quarter of fiscal 2019 included charges related to offering costs of $0.7 million. 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 increased to $1,181.2 million in the first half of fiscal 2020, compared to $1,013.1 million in the first half of fiscal 2019. SG&A in the first half of fiscal 2019 included charges related to our initial public offering and the registered offerings by selling stockholders of $1.9 million.
  • Operating income increased to $163.6 million, or 4.1% of total revenues in the second quarter of fiscal 2020, compared to $98.7 million, or 3.0% of total revenues in the second quarter of fiscal 2019. Operating income in the second quarter of fiscal 2019 included offering costs of $0.7 million. Operating income increased to $307.3 million, or 4.0% of total revenues in the first half of fiscal 2020, compared to $169.4 million, or 2.6% of total revenues in the first half of fiscal 2019. Operating income in the first half of fiscal 2019 included charges related to offering costs of $1.9 million.
  • Interest expense, net, decreased to $20.7 million in the second quarter of fiscal 2020, compared to $26.8 million in the second quarter of fiscal 2019. Interest expense in the second quarter of fiscal 2020 included $1.3 million write-off of deferred fees and the original issue discount associated with the July 2020 partial payoff of our first lien term loan facility (the "First Lien Term Loan"). Interest expense, net, decreased to $42.6 million in the first half of fiscal 2020, compared to $54.6 million in the first half of fiscal 2019. The decrease in interest expense was driven by continued de-levering.
  • Income tax expense was $36.2 million in the second quarter of fiscal 2020, compared to income tax expense of $17.7 million in the second quarter of fiscal 2019. The second quarter of fiscal 2020 included a benefit of $2.6 million from excess tax benefits related to stock-based compensation compared to $1.7 million in the second quarter of fiscal 2019. Income tax expense was $62.4 million in the first half of fiscal 2020, compared to income tax expense of $24.5 million in the first half of fiscal 2019.
  • Under our share repurchase program, we repurchased 924,282 shares of common stock, totaling $34.1 million in the second quarter of fiscal 2020. In the first half of fiscal 2020, we repurchased 1,099,282 shares of common stock, totaling $38.1 million, under such program.

Conference Call Details

A conference call to discuss the second quarter fiscal 2020 financial results is scheduled for today, August 20, 2020, 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 9769849. 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 9769849. The recorded replay will be available until August 27, 2020 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 219 clubs and 148 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

 

26 Weeks Ended

 

26 Weeks Ended

 

 

August 1, 2020

 

August 3, 2019

 

August 1, 2020

 

August 3, 2019

Net sales

 

$

3,871,640

 

 

$

3,271,145

 

 

$

7,589,680

 

 

$

6,340,908

 

Membership fee income

 

82,490

 

 

74,697

 

 

162,055

 

 

148,070

 

Total revenues

 

3,954,130

 

 

3,345,842

 

 

7,751,735

 

 

6,488,978

 

Cost of sales

 

3,197,752

 

 

2,733,085

 

 

6,258,645

 

 

5,302,062

 

Selling, general and administrative expenses

 

590,814

 

 

511,889

 

 

1,181,175

 

 

1,013,070

 

Pre-opening expense

 

1,969

 

 

2,127

 

 

4,570

 

 

4,423

 

Operating income

 

163,595

 

 

98,741

 

 

307,345

 

 

169,423

 

Interest expense, net

 

20,741

 

 

26,783

 

 

42,585

 

 

54,572

 

Income from continuing operations before income taxes

 

142,854

 

 

71,958

 

 

264,760

 

 

114,851

 

Provision for income taxes

 

36,186

 

 

17,665

 

 

62,350

 

 

24,473

 

Income from continuing operations

 

106,668

 

 

54,293

 

 

202,410

 

 

90,378

 

Income (loss) from discontinued operations, net of income taxes

 

(50

)

 

230

 

 

(58

)

 

(57

)

Net income

 

$

106,618

 

 

$

54,523

 

 

$

202,352

 

 

$

90,321

 

Income per share attributable to common stockholders - basic:

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.78

 

 

$

0.40

 

 

$

1.48

 

 

$

0.66

 

Loss from discontinued operations

 

 

 

 

 

 

 

 

Net income

 

$

0.78

 

 

$

0.40

 

 

$

1.48

 

 

$

0.66

 

Income per share attributable to common stockholders - diluted:

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.76

 

 

$

0.39

 

 

$

1.46

 

 

$

0.65

 

Loss from discontinued operations

 

 

 

 

 

 

 

 

Net income

 

$

0.76

 

 

$

0.39

 

 

$

1.46

 

 

$

0.65

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

136,706

 

 

136,571

 

 

136,398

 

 

136,690

 

Diluted

 

139,522

 

 

139,516

 

 

138,975

 

 

139,989

 

 

BJ'S WHOLESALE CLUB HOLDINGS, INC.

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

(Amounts in thousands)

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August 1, 2020

 

August 3, 2019

ASSETS

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

168,811

 

 

$

29,092

 

 

Accounts receivable, net

 

170,595

 

 

162,278

 

 

Merchandise inventories

 

1,005,274

 

 

1,026,541

 

 

Prepaid expense and other current assets

 

64,074

 

 

47,353

 

 

 

Total current assets

 

1,408,754

 

 

1,265,264

 

 

 

 

 

 

 

 

Operating lease right-of-use assets, net

 

2,043,713

 

 

2,040,834

 

Property and equipment, net

 

755,678

 

 

750,716

 

Goodwill

 

924,134

 

 

924,134

 

Intangibles, net

 

141,054

 

 

153,730

 

Other assets

 

20,687

 

 

17,409

 

 

 

Total assets

 

$

5,294,020

 

 

$

5,152,087

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of long-term debt

 

$

 

 

$

195,377

 

 

Current portion of operating lease liabilities

 

128,010

 

 

118,035

 

 

Accounts payable

 

1,004,725

 

 

798,504

 

 

Accrued expenses and other current liabilities

 

631,500

 

 

499,149

 

 

 

Total current liabilities

 

1,764,235

 

 

1,611,065

 

 

 

 

 

 

 

 

Long-term lease liabilities

 

1,971,634

 

 

1,957,934

 

Long-term debt

 

1,202,209

 

 

1,540,602

 

Deferred income taxes

 

43,111

 

 

46,508

 

Other noncurrent liabilities

 

193,730

 

 

160,564

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY (DEFICIT)

 

119,101

 

 

(164,586

)

 

 

Total liabilities and stockholders' equity (deficit)

 

$

5,294,020

 

 

$

5,152,087

 

 

BJ'S WHOLESALE CLUB HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

 

 

26 Weeks Ended
August 1,
2020

 

26 Weeks Ended
August 3,
2019

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

Net income

 

$

202,352

 

 

$

90,321

 

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

 

 

 

 

Depreciation and amortization

 

82,171

 

 

77,671

 

Amortization of debt issuance costs and accretion of original issue discount

 

2,363

 

 

2,646

 

Debt extinguishment charges

 

1,283

 

 

 

Stock-based compensation expense

 

14,578

 

 

8,796

 

Deferred income tax provision

 

438

 

 

10,563

 

Other non cash items, net

 

4,175

 

 

2,733

 

Increase (decrease) in cash due to changes in:

 

 

 

 

Accounts receivable

 

35,758

 

 

32,022

 

Merchandise inventories

 

76,228

 

 

25,765

 

Accounts payable

 

218,313

 

 

(18,376

)

Accrued expenses

 

70,971

 

 

(37,618

)

Other operating assets and liabilities, net

 

25,062

 

 

20,601

 

Net cash provided by operating activities

 

733,692

 

 

215,124

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

Additions to property and equipment, net of disposals

 

(82,962

)

 

(88,298

)

Proceeds from sale leaseback transaction

 

4,061

 

 

 

Net cash used in investing activities

 

(78,901

)

 

(88,298

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

Payments on long term debt

 

(3,297

)

 

(7,689

)

Paydown of First Lien Term Loan

 

(150,000

)

 

 

Net Payments on ABL Facility

 

(328,000

)

 

(59,000

)

Net cash received from stock option exercises

 

9,005

 

 

8,618

 

Net cash received from Employee Stock Purchase Program (ESPP)

 

1,107

 

 

726

 

Acquisition of treasury stock

 

(44,533

)

 

(67,237

)

Other financing activities

 

(466

)

 

(298

)

Net cash used in financing activities

 

(516,184

)

 

(124,880

)

Net increase in cash and cash equivalents

 

138,607

 

 

1,946

 

Cash and cash equivalents at beginning of period

 

30,204

 

 

27,146

 

Cash and cash equivalents at end of period

 

$

168,811

 

 

$

29,092

 

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 and net debt and net debt to LTM adjusted EBITDA.

We define adjusted net income as net income attributable to common stockholders adjusted for: stock-based compensation related to the IPO; offering costs; management fees; club closing and impairment charges; reduction in force severance; gain on sale leaseback transactions; charges related to debt restructurings and retirements; 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; 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 transaction.

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

 

26 Weeks Ended

 

26 Weeks Ended

 

August 1, 2020

 

August 3, 2019

 

August 1, 2020

 

August 3, 2019

Net income as reported

$

106,618

 

 

$

54,523

 

 

$

202,352

 

 

$

90,321

 

Adjustments:

 

 

 

 

 

 

 

Offering costs (a)

 

 

706

 

 

 

 

1,928

 

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

1,283

 

 

 

 

1,283

 

 

 

Tax impact of adjustments to net income (c)

(359

)

 

(179

)

 

(359

)

 

(521

)

Adjusted net income

$

107,542

 

 

$

55,050

 

 

$

203,276

 

 

$

91,728

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

139,522

 

 

139,516

 

 

138,975

 

 

138,989

 

Adjusted net income per diluted share (d)

$

0.77

 

 

$

0.39

 

 

$

1.46

 

 

$

0.66

 

  1. Represents costs related to registered offerings by selling stockholders.
  2. Represents the write-off of deferred fees and original issue discount associated with the partial paydown of our First Lien Term Loan.
  3. Represents the tax effect of the above adjustments at a statutory tax rate of approximately 28%.
  4. 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

 

26 Weeks Ended

 

26 Weeks Ended

 

 

August 1, 2020

 

August 3, 2019

 

August 1, 2020

 

August 3, 2019

Income from continuing operations

 

$

106,668

 

 

$

54,293

 

 

$

202,410

 

 

$

90,378

 

Interest expense, net

 

20,741

 

 

26,783

 

 

42,585

 

 

54,572

 

Provision for income taxes

 

36,186

 

 

17,665

 

 

62,350

 

 

24,473

 

Depreciation and amortization

 

41,332

 

 

39,001

 

 

82,171

 

 

77,671

 

Stock-based compensation expense (a)

 

9,064

 

 

4,952

 

 

14,578

 

 

8,796

 

Pre-opening expenses (b)

 

1,969

 

 

2,127

 

 

4,570

 

 

4,423

 

Non-cash rent (c)

 

511

 

 

3,019

 

 

2,015

 

 

3,773

 

Strategic consulting (d)

 

 

 

4,610

 

 

 

 

11,349

 

Offering costs (e)

 

 

 

706

 

 

 

 

1,928

 

Other adjustments (f)

 

379

 

 

31

 

 

86

 

 

(100

)

Adjusted EBITDA

 

$

216,850

 

 

$

153,187

 

 

$

410,765

 

 

$

277,263

 

  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 fees paid to external consultants for strategic initiatives of limited duration.
  5. Represents costs related to registered offerings by selling stockholders.
  6. 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

 

26 Weeks Ended

 

26 Weeks Ended

 

 

August 1, 2020

 

August 3, 2019

 

August 1, 2020

 

August 3, 2019

Net cash provided by operating activities

 

$

263,790

 

 

$

170,188

 

 

$

733,692

 

 

$

215,124

 

Less: Additions to property and equipment, net of disposals

 

47,750

 

 

51,764

 

 

82,962

 

 

88,298

 

Plus: Proceeds from sale leaseback transaction

 

4,061

 

 

 

 

4,061

 

 

 

Free cash flow

 

$

220,101

 

 

$

118,424

 

 

$

654,791

 

 

$

126,826

 

 

BJ'S WHOLESALE CLUB HOLDINGS, INC.

 

 

Reconciliation of Net Debt and Net Debt to LTM adjusted EBITDA

 

 

(Amounts in thousands)

 

 

(Unaudited)

 

 

 

 

August 1, 2020

Total debt

 

$

1,202,209

 

Less: Cash and cash equivalents

 

168,811

 

Net Debt

 

$

1,033,398

 

 

 

 

Income from continuing operations

 

299,789

 

Interest expense, net

 

96,243

 

Provision for income taxes

 

94,089

 

Depreciation and amortization

 

161,500

 

Stock-based compensation expense (a)

 

24,578

 

Pre-opening expenses (b)

 

15,299

 

Non-cash rent (c)

 

6,616

 

Reduction in force severance (d)

 

3,994

 

Club closings and impairment charges (e)

 

15,383

 

Other adjustments (f)

 

(2,365

)

Adjusted EBITDA

 

$

715,126

 

 

 

 

Net debt to LTM adjusted EBITDA

 

1.4

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 a reduction in workforce announced in January 2020.
  5. 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.
  6. Other non-cash items, including a gain from the sale leaseback of one of our new Michigan locations, non-cash accretion on asset retirement obligations, termination costs to former executives and obligations associated with our post-retirement medical plan.

 

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

Media Contact:
Kristy Houston, BJ’s Wholesale Club
(774) 512-5086
khouston@bjs.com

Source: BJ’s Wholesale Club Holdings, Inc.