PR Newswire
WESTBOROUGH, Mass., Aug. 28, 2018
WESTBOROUGH, Mass., Aug. 28, 2018 /PRNewswire/ -- BJ's Wholesale Club Holdings, Inc. (NYSE: BJ) today announced its financial results for the thirteen and twenty-six weeks ended August 4, 2018.
"We are pleased with our second quarter results, which exceeded our expectations," said Christopher J. Baldwin, Chairman and Chief Executive Officer, BJ's Wholesale Club. "We're still in the very early stages of our transformation. Our progress is accelerating as we work to attract and retain members, get them shopping and make it more convenient to shop at BJ's. As a result of our performance, we have increased our expectations for the full-year."
For the Second Quarter (Thirteen Weeks) Ended August 4, 2018:
For the Twenty-Six Weeks Ended August 4, 2018:
Recent Developments
Fiscal 2018 Outlook
For full fiscal 2018, the Company:
Conference Call Details
A conference call to discuss the second quarter fiscal 2018 financial results is scheduled for today, August 28, 2018, 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 5167329. The replay will be available until September 4, 2018.
About BJ's Wholesale Club Holdings, Inc.
Headquartered in Westborough, Massachusetts, BJ's Wholesale Club Holdings, Inc. and its wholly owned subsidiaries, is a leading operator of membership warehouse clubs in the Eastern United States. The company currently operates 215 clubs and 135 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 transformation; our strategic priorities; our anticipated fiscal 2018 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, development, ownership or use of real estate; our capital spending; actions of vendors; 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); changes in our product mix or in our revenues from gasoline sales; 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 caption "Risk Factors" in our final prospectus under Rule 424(b) filed with the U.S. Securities and Exchange Commission ("SEC") on June 28, 2018 in connection with our IPO, 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 U.S. 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 share amounts) | ||||||||||||||||
(Unaudited) |
||||||||||||||||
Thirteen Weeks Ended |
Twenty-Six Weeks Ended | |||||||||||||||
August 4, 2018 |
July 29, 2017 |
August 4, 2018 |
July 29, 2017 | |||||||||||||
Net sales |
$ 3,236,664 |
$ 3,103,335 |
$ 6,230,406 |
$ 5,986,633 | ||||||||||||
Membership fee income |
70,441 |
64,192 |
138,396 |
127,722 | ||||||||||||
Total revenues |
3,307,105 |
3,167,527 |
6,368,802 |
6,114,355 | ||||||||||||
Cost of sales |
2,718,602 |
2,614,187 |
5,228,940 |
5,055,493 | ||||||||||||
Selling, general and administrative expenses |
549,188 |
477,333 |
1,034,760 |
1,009,832 | ||||||||||||
Preopening expense |
641 |
1,226 |
1,858 |
2,033 | ||||||||||||
Operating income |
38,674 |
74,781 |
103,244 |
46,997 | ||||||||||||
Interest expense, net |
59,555 |
43,820 |
104,758 |
107,890 | ||||||||||||
Income (loss) from continuing operations before income taxes |
(20,881) |
30,961 |
(1,514) |
(60,893) | ||||||||||||
Provision (benefit) for income taxes |
(15,391) |
11,146 |
(10,325) |
(21,921) | ||||||||||||
Income (loss) from continuing operations |
(5,490) |
19,815 |
8,811 |
(38,972) | ||||||||||||
Loss from discontinued operations, net of income taxes |
(124) |
(103) |
(288) |
(210) | ||||||||||||
Net income (loss) |
$ (5,614) |
$ 19,712 |
$ 8,523 |
$ (39,182) | ||||||||||||
Income (loss) per share attributable to common stockholders - basic: | ||||||||||||||||
Income (loss) from continuing operations |
$ (0.05) |
$ 0.22 |
$ 0.09 |
$ (0.44) | ||||||||||||
Loss from discontinued operations |
- |
- |
- |
- | ||||||||||||
Net income (loss) |
$ (0.05) |
$ 0.22 |
$ 0.09 |
$ (0.44) | ||||||||||||
Income (loss) per share attributable to common stockholders - diluted: | ||||||||||||||||
Income (loss) from continuing operations |
$ (0.05) |
$ 0.22 |
$ 0.09 |
$ (0.44) | ||||||||||||
Loss from discontinued operations |
- |
- |
- |
- | ||||||||||||
Net income (loss) |
$ (0.05) |
$ 0.22 |
$ 0.09 |
$ (0.44) | ||||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic |
106,915 |
88,443 |
97,734 |
88,324 | ||||||||||||
Diluted |
106,915 |
91,746 |
102,732 |
88,324 |
BJ'S WHOLESALE CLUB HOLDINGS, INC. | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||
August 4, 2018 |
February 3, 2018 | ||||||||||||||||||||||||
ASSETS |
|||||||||||||||||||||||||
Current assets: |
|||||||||||||||||||||||||
Cash and cash equivalents |
$ 31,305 |
$ 34,954 | |||||||||||||||||||||||
Accounts receivable, net |
165,347 |
190,756 | |||||||||||||||||||||||
Merchandise inventories |
1,005,045 |
1,019,138 | |||||||||||||||||||||||
Prepaid expenses and other current assets |
69,116 |
81,972 | |||||||||||||||||||||||
Prepaid federal and state income taxes |
31,679 |
9,784 | |||||||||||||||||||||||
Assets held for sale |
6,550 |
- | |||||||||||||||||||||||
Total current assets |
1,309,042 |
1,336,604 | |||||||||||||||||||||||
Total property and equipment, net |
747,681 |
758,750 | |||||||||||||||||||||||
Goodwill |
924,134 |
924,134 | |||||||||||||||||||||||
Intangibles, net |
212,561 |
224,876 | |||||||||||||||||||||||
Other assets |
27,438 |
29,492 | |||||||||||||||||||||||
Total assets |
$ 3,220,856 |
$ 3,273,856 | |||||||||||||||||||||||
LIABILITIES |
|||||||||||||||||||||||||
Current liabilities: |
|||||||||||||||||||||||||
Current portion of long-term debt |
$ 62,250 |
$ 219,750 | |||||||||||||||||||||||
Accounts payable |
783,108 |
751,948 | |||||||||||||||||||||||
Accrued expenses and other current liabilities |
473,500 |
495,767 | |||||||||||||||||||||||
Closed store obligations due within one year |
2,122 |
2,122 | |||||||||||||||||||||||
Total current liabilities |
1,320,980 |
1,469,587 | |||||||||||||||||||||||
Long-term debt |
1,894,071 |
2,492,660 | |||||||||||||||||||||||
Noncurrent closed store obligations |
5,818 |
6,561 | |||||||||||||||||||||||
Deferred income taxes |
52,988 |
57,074 | |||||||||||||||||||||||
Other noncurrent liabilities |
264,872 |
267,393 | |||||||||||||||||||||||
Contingently redeemable common stock |
- |
10,438 | |||||||||||||||||||||||
STOCKHOLDERS' DEFICIT |
|||||||||||||||||||||||||
Common Stock |
1,362 |
871 | |||||||||||||||||||||||
Additional paid-in capital |
731,324 |
2,883 | |||||||||||||||||||||||
Accumulated deficit |
(1,033,851) |
(1,036,012) | |||||||||||||||||||||||
Accumulated other comprehensive income |
2,401 |
2,401 | |||||||||||||||||||||||
Treasury stock, at cost |
(19,109) |
- | |||||||||||||||||||||||
Total stockholders' deficit |
(317,873) |
(1,029,857) | |||||||||||||||||||||||
Total liabilities and stockholders' deficit |
$ 3,220,856 |
$ 3,273,856 |
BJ'S WHOLESALE CLUB HOLDINGS, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Amounts in thousands) |
||||||||
(Unaudited) |
||||||||
Twenty-Six Weeks Ended | ||||||||
August 4, 2018 |
July 29, 2017 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net income (loss) |
$ 8,523 |
$ (39,182) | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Charges for discontinued operations |
399 |
357 | ||||||
Depreciation and amortization |
82,498 |
82,288 | ||||||
Amortization of debt issuance costs and accretion of original |
||||||||
issues discount |
3,911 |
4,125 | ||||||
Debt refinancing and extinguishment charges |
19,159 |
13,562 | ||||||
Impairment charges for assets held for sale |
3,000 |
- | ||||||
Other non-cash items, net |
10,560 |
(753) | ||||||
Stock-based compensation expense |
52,126 |
5,740 | ||||||
Deferred income tax provision |
(1,551) |
(10,230) | ||||||
Increase (decrease) in cash due to changes in: |
||||||||
Accounts receivable |
25,409 |
188 | ||||||
Merchandise inventories |
14,093 |
791 | ||||||
Prepaid expenses |
12,856 |
4,290 | ||||||
Other assets |
1,005 |
381 | ||||||
Accounts payable |
37,524 |
39,592 | ||||||
Accrued expenses |
(31,899) |
(31,304) | ||||||
Accrued income taxes |
(31,663) |
(18,761) | ||||||
Closed store obligations |
(1,142) |
(923) | ||||||
Other noncurrent liabilities |
(1,589) |
3,809 | ||||||
Net cash provided by operating activities |
203,219 |
53,970 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Additions to property and equipment, net of disposals |
(75,666) |
(46,253) | ||||||
Net cash used in investing activities |
(75,666) |
(46,253) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Proceeds from long term debt |
- |
547,544 | ||||||
Principal payments on long term debt |
(22,829) |
(4,812) | ||||||
Extinguishment of Second Lien Term Loan |
(631,283) |
- | ||||||
Proceeds from ABL facility |
670,000 |
956,000 | ||||||
Payments on ABL facility |
(794,000) |
(744,000) | ||||||
Debt issuance costs paid |
- |
(27,006) | ||||||
Dividends paid |
- |
(735,580) | ||||||
Capital lease and financing obligations payments |
(349) |
(322) | ||||||
Net cash received (paid) from stock option exercises |
(19,481) |
811 | ||||||
Acquisition of treasury stock |
(19,149) |
- | ||||||
Proceeds from stock issuance |
685,889 |
- | ||||||
Other financing activities |
- |
500 | ||||||
Net cash used in financing activities |
(131,202) |
(6,865) | ||||||
Net (decrease) increase in cash and cash equivalents |
(3,649) |
852 | ||||||
Cash and cash equivalents at beginning of period |
34,954 |
31,964 | ||||||
Cash and cash equivalents at end of period |
$ 31,305 |
$ 32,816 |
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 (loss) as net income (loss) attributable to common stockholders adjusted for: stock-based compensation related to the Company's IPO; IPO-related costs; management fees; charges incurred in the dividend recapitalization; compensatory dividend; club asset impairment; charges related to extinguishing the second lien term loan; 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 (loss).
We define adjusted net income per diluted share as adjusted net income divided by the diluted shares outstanding on the last day of the latest period presented.
We define adjusted EBITDA as income (loss) from continuing operations before interest expense, net, provision (benefit) for income taxes and depreciation and amortization, adjusted for the impact of certain other items, including: compensatory payments related to stock options; stock-based compensation expense; preopening expenses; management fees; noncash rent; strategic consulting expenses, severance; IPO-related 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 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 (Loss) to Adjusted Net Income and Adjusted Net Income Per Diluted Share | ||||||||
(Amounts in thousands, except share amounts) |
||||||||
(Unaudited) |
||||||||
Thirteen Weeks Ended |
Twenty-Six Weeks Ended | |||||||
August 4, 2018 |
July 29, 2017 |
August 4, 2018 |
July 29, 2017 | |||||
Net income (loss) |
$ (5,614) |
$ 19,712 |
$ 8,523 |
$ (39,182) | ||||
Adjustments: |
||||||||
Stock-based compensation related to IPO (a) |
48,927 |
- |
48,927 |
- | ||||
IPO-related costs (b) |
761 |
- |
761 |
- | ||||
Management fees (c) |
1,333 |
2,017 |
3,333 |
4,068 | ||||
Charges incurred in the 2017 dividend recapitalization (d) |
- |
- |
- |
22,110 | ||||
Compensatory payments related to options (e) |
- |
2,126 |
- |
73,700 | ||||
Club asset impairment (f) |
- |
- |
3,000 |
- | ||||
Charges related to extinguishing Second Lien Term Loan (g) |
19,159 |
- |
19,159 |
- | ||||
Interest and amortization on Second Lien Term Loan (h) |
9,453 |
13,938 |
24,341 |
27,607 | ||||
Windfall tax benefit from stock exercises (i) |
(9,264) |
- |
(9,767) |
- | ||||
Tax impact of adjustments to net income (loss) (j) |
(21,453) |
(7,258) |
(26,862) |
(50,238) | ||||
Adjusted net income |
$ 43,302 |
$ 30,535 |
$ 71,415 |
$ 38,065 | ||||
Weighted average fully diluted shares outstanding |
106,915 |
91,746 |
102,732 |
88,324 | ||||
Fully diluted shares outstanding at August 4, 2018 |
139,156 |
139,156 |
139,156 |
139,156 | ||||
Adjusted net income per diluted share (k) |
$ 0.31 |
$ 0.22 |
$ 0.51 |
$ 0.27 | ||||
(a) Represents stock-based compensation expense for certain restricted stock and stock option awards issued in connection with our IPO. | ||||||||
(b) Represents one-time costs related to our IPO. | ||||||||
(c) Represents management fees paid to our sponsors (or advisory affiliates thereof) in accordance with our management services agreement, which | ||||||||
(d) Represents the write-off of certain deferred financing charges and other amounts in connection with the 2017 dividend recapitalization. | ||||||||
(e) Represents payments to holders of our stock options made pursuant to antidilutive provisions in connection with dividends paid to our shareholders. | ||||||||
(f) Represents the impairment charge related to a club that was relocated during 2018. | ||||||||
(g) Represents the write-off of certain deferred financing charges and a prepayment penalty associated with the payoff of our second lien term loan. | ||||||||
(h) Represents the historical interest expense associated with the second lien term loan that was paid in full with proceeds from our IPO. | ||||||||
(i) Represents the windfall tax benefit to the Company due to the exercise of certain stock options by former employees of the Company. | ||||||||
(j) Represents the tax effect of the above adjustments at an effective tax rate of approximately 27%, as applicable. | ||||||||
(k) Adjusted net income per diluted share is measured using the fully diluted shares outstanding at August 4, 2018 of 139.2 million shares for all periods |
BJ'S WHOLESALE CLUB HOLDINGS, INC. |
||||||
RECONCILIATION OF ADJUSTED EBITDA |
||||||
(Amounts in thousands) |
||||||
(Unaudited) |
||||||
Thirteen Weeks Ended |
Twenty-Six Weeks Ended | |||||
August 4, 2018 |
July 29, 2017 |
August 4, 2018 |
July 29, 2017 | |||
Income (loss) from continuing operations |
(5,490) |
$ 19,815 |
$ 8,811 |
$ (38,972) | ||
Interest expense, net |
59,555 |
43,820 |
104,758 |
107,890 | ||
Provision (benefit) for income taxes |
(15,391) |
11,146 |
(10,325) |
(21,921) | ||
Depreciation and amortization |
41,076 |
41,217 |
82,498 |
82,288 | ||
Compensatory payments related to options (a) |
- |
2,126 |
- |
73,700 | ||
Stock-based compensation expense (b) |
52,395 |
2,078 |
53,365 |
5,740 | ||
Preopening expenses (c) |
641 |
1,226 |
1,858 |
2,033 | ||
Management fees (d) |
1,333 |
2,017 |
3,333 |
4,068 | ||
Noncash rent (e) |
1,218 |
1,500 |
2,441 |
2,997 | ||
Strategic consulting (f) |
6,299 |
10,832 |
13,248 |
16,953 | ||
Severance (g) |
960 |
- |
960 |
- | ||
IPO-related costs (h) |
761 |
- |
761 |
- | ||
Other adjustments (i) |
(321) |
(36) |
2,884 |
(351) | ||
Adjusted EBITDA |
$ 143,036 |
$ 135,741 |
$ 264,592 |
$ 234,425 | ||
(a) Represents payments to holders of our stock options made pursuant to antidilutive provisions in connection with dividends paid to our | ||||||
(b) Represents stock-based compensation expense. Amount includes $47.7 million in expense related to certain restricted stock and stock | ||||||
(c) Represents direct incremental costs of opening or relocating a facility that are charged to operations as incurred. | ||||||
(d) Represents management fees paid to our sponsors (or advisory affiliates thereof) in accordance with our management services | ||||||
(e) Consists of an adjustment to remove the non-cash portion of rent expense, which has been recorded on a straight-line basis in | ||||||
(f) Represents fees paid to external consultants for strategic initiatives of limited duration. | ||||||
(g) Represents termination costs to a former executive. | ||||||
(h) Represents one-time costs related to our IPO. | ||||||
(i) Other non-cash items, including amortization of a deferred gain from sale lease back transactions in 2013, non-cash accretion on asset |
BJ'S WHOLESALE CLUB HOLDINGS, INC. |
|||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
|||||||
Fiscal Year 2018 Outlook for Adjusted Net Income and Adjusted Net Income per Diluted Share | |||||||
(Amounts in millions, except per share amounts) |
|||||||
(Unaudited) |
|||||||
Fiscal Year 2018 Outlook | |||||||
Low End |
High End | ||||||
Net income |
$ 101 |
$ 111 | |||||
Adjustments: |
|||||||
Stock-based compensation related to IPO (a) |
49 |
49 | |||||
IPO-related costs (b) |
1 |
1 | |||||
Management fees (c) |
3 |
3 | |||||
Club asset impairment (d) |
3 |
3 | |||||
Charges related to extinguishing Second Lien Term Loan (e) |
19 |
19 | |||||
Interest and amortization on Second Lien Term Loan (f) |
24 |
24 | |||||
Windfall tax benefit from stock exercises (g) |
(10) |
(10) | |||||
Tax impact of adjustments to net income (h) |
(27) |
(27) | |||||
Adjusted net income |
$ 163 |
$ 173 | |||||
Fully diluted shares outstanding at August 4, 2018 |
139 |
139 | |||||
Adjusted net income per diluted share (i) |
$ 1.17 |
$ 1.24 | |||||
(a) Represents stock-based compensation expense for certain restricted stock and stock option awards issued | |||||||
(b) Represents one-time costs related to our IPO. | |||||||
(c) Represents management fees paid to our sponsors (or advisory affiliates thereof) in accordance with our | |||||||
(d) Represents the impairment charge related to a club that was relocated during 2018. | |||||||
(e) Represents the write-off of certain deferred financing charges and a prepayment penalty associated with | |||||||
(f) Represents the historical interest expense associated with the second lien term loan that was paid in full | |||||||
(g) Represents the windfall tax benefit to the Company due to the exercise of certain stock options by former | |||||||
(h) Represents the tax effect of the above adjustments at an effective tax rate of approximately 27%, as | |||||||
(i) Adjusted net income per diluted share is measured using the fully diluted shares outstanding at August 4, |
BJ'S WHOLESALE CLUB HOLDINGS, INC. |
|||
Reconciliation of GAAP to Non-GAAP Financial Measures |
|||
Fiscal Year 2018 Outlook for Adjusted EBITDA |
|||
(Amounts in millions) |
|||
(Unaudited) |
|||
Fiscal Year 2018 Outlook | |||
Low End |
High End | ||
Income from continuing operations |
$ 102 |
$ 112 | |
Interest expense, net |
162 |
162 | |
Provision for income taxes |
31 |
31 | |
Depreciation and amortization |
163 |
163 | |
Compensatory payments related to options (a) |
2 |
2 | |
Stock-based compensation expense (b) |
56 |
56 | |
Preopening expenses (c) |
3 |
3 | |
Management fees (d) |
3 |
3 | |
Noncash rent (e) |
5 |
5 | |
Strategic consulting (f) |
24 |
24 | |
Severance (g) |
1 |
1 | |
IPO-related costs (h) |
1 |
1 | |
Other adjustments (i) |
(0) |
(0) | |
Adjusted EBITDA |
$ 553 |
$ 563 | |
(a) Represents payments to holders of our stock options made pursuant to antidilutive provisions in | |||
(b) Represents non-cash-based compensation expense. Amount includes $47.7 million in expense related to | |||
(c) Represents direct incremental costs of opening or relocating a facility that are charged to operations as | |||
(d) Represents management fees paid to our sponsors (or advisory affiliates thereof) in accordance with our | |||
(e) Consists of an adjustment to remove the non-cash portion of rent expense, which has been recorded on a | |||
(f) Represents fees paid to external consultants for strategic initiatives of limited duration. | |||
(g) Represents termination costs to a former executive. | |||
(h) Represents one-time costs related to our IPO. | |||
(i) Other non-cash items, including amortization of a deferred gain from sale lease back transactions in 2013, |
View original content with multimedia:http://www.prnewswire.com/news-releases/bjs-wholesale-club-holdings-inc-announces-second-quarter-fiscal-2018-results-300702945.html
SOURCE BJ's Wholesale Club Holdings, Inc.
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