23:39:53 EST Fri 13 Dec 2024
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save

Big Lots Reports Q4 and Full Year 2023 Results

2024-03-07 07:00 ET - News Release

Q4 2023 comparable sales, gross margin rate, expenses, and inventory in line with guidance

Q4 GAAP operating loss of $24 million; adjusted operating profit of $1 million; first quarter of positive adjusted operating profit since Q4 2021

Q4 GAAP EPS loss of $1.05; adjusted EPS loss of $0.28

Expect quarterly year-over-year gross margin improvements to continue through 2024 with a path to positive comparable sales

Achieved nearly 60% bargain penetration in Q4, well exceeding our initial goal of 33%; expect to grow to 75% penetration in 2024

Project Springboard on track to deliver a high proportion of the $200 million+ benefit in 2024

For the Q4 Results Presentation, Please Visit: https://www.biglots.com/corporate/investors

COLUMBUS, Ohio, March 7, 2024 /PRNewswire/ -- Big Lots, Inc. (NYSE: BIG) today reported a net loss of $30.7 million, or $1.05 per share, for the fourth quarter of fiscal 2023 ended February 3, 2024. This result includes a net after-tax loss of $22.4 million, or $0.77 per share, associated with distribution center closure costs, impairment charges, and fees related to Project Springboard, offset in part by gains on the sale of real estate and an income tax benefit related to the valuation allowance recorded earlier in 2023. Excluding this loss, the adjusted net loss in the fourth quarter of 2023 was $8.3 million, or $0.28 per share (see non-GAAP table included later in this release). The adjusted net loss for the fourth quarter of fiscal 2022 was $8.1 million, or $0.28 per share.

Net sales for the fourth quarter of fiscal 2023 totaled $1.432 billion, a 7.2% decrease compared to $1.543 billion for the same period last year. The decline to last year was driven by a comparable sales decrease of 8.6%. The net impact of the benefit of the 53rd week, offset by a net decrease in store count, contributed approximately 140 basis points of sales growth compared to the fourth quarter of 2022.

Commenting on today's results announcement, Bruce Thorn, President and CEO of Big Lots stated, "I'm pleased to report another quarter of sequential improvement in comps and gross margin rate, while continuing to take out costs.  For the third quarter in a row, we did what we said we would do, and despite a challenging macroeconomic environment and well documented weather challenges in January, we finished the year in a much better place than where we started.  That said, there's a lot of work to do in 2024, and we are moving aggressively to accelerate our transformation, return to positive comparable sales, and continue to improve our gross margin rate over the course of the year."

"For Q4, as we announced on February 12, we delivered on our guidance for comparable sales, gross margin rate, operating expenses, and inventory.  We believe progress on the five key actions that underlie our strategy, which are to own bargains, communicate unmistakable value, increase store relevance, win customers for life with our omnichannel efforts, and drive productivity, enabled us to deliver adjusted operating profit growth in Q4, marking the first quarter of adjusted operating profit in two years."

"We expect quarterly year over year gross margin improvements to continue in 2024, and see a path to positive comparable sales as the year progresses.  Further, we expect to realize most of the $200 million+ of bottom-line opportunities through Project Springboard. We also expect to significantly grow our bargains penetration to 75% of our sales, and within that, have an expanded assortment of extreme bargains.  These extreme bargains create a more exciting treasure hunt experience, which will keep our customers coming back to our stores and help drive comparable sales growth. By leaning in further on our heritage of providing unmistakable value to consumers, we will solidify our position as America's Discount Home Store."

"Our efforts to aggressively manage costs, inventory, and capital expenditures, as well as monetize owned assets, have enabled us to maintain liquidity through a challenging period. We took out over $140 million of SG&A during the year, cut capex by almost 60% year over year, reduced inventory by nearly $200 million, and monetized assets worth over $300 million. Our net liquidity at the end of the fourth quarter was $254 million, and we generated significant free cash flow in the fourth quarter, enabling us to reduce our ABL balance. As we look into 2024, we continue to evaluate additional financing options as a normal part of prudently managing our business. While near-term conditions may remain challenging, we look forward to returning the company to health and prosperity, and believe we are taking the right actions to do that."

"Overall, our five key actions are gaining momentum and have enabled us to again sequentially improve results in the fourth quarter.  We are excited to return to comp sales growth as 2024 progresses, driven by continued progress on these key actions, and to significantly improve our gross margin in every quarter versus last year."

A summary of adjustments to loss per diluted share is included in the table below.


Q4 2023

 

Earnings (loss) per diluted share – as reported

($1.05)



Adjustment to exclude net loss associated with
distribution center closure costs, fees related to
Project Springboard,(1), and asset impairment
charges, offset in part by gains on the sale of real
estate and an adjustment to the valuation allowance
on deferred tax assets 

$0.77



Earnings (loss) per diluted share – adjusted basis

($0.28)



(1)     Non-GAAP detailed reconciliation provided in statement below


Inventory and Cash Management
Inventory ended the fourth quarter of fiscal 2023 at $953.3 million compared to $1.148 billion at the end of the fourth quarter last year, with the 17.0% decrease driven by lower on-hand units and in-transit inventory.

The company ended the fourth quarter of fiscal 2023 with $46.4 million of Cash and Cash Equivalents and $406.3 million of Long-term Debt under its $900 million asset-based lending facility, compared to $44.7 million of Cash and Cash Equivalents and $301.4 million of Long-term Debt as of the end of the fourth quarter of fiscal 2022. During the fourth quarter, the company paid down $127 million of Long-term Debt on a net basis.

Share Repurchases
The company did not execute any share repurchases during the quarter. The company has $159 million remaining under its December 2021$250 million authorization.

Guidance
For the first quarter of fiscal 2024, the company expects comp sales to improve relative to the fourth quarter and be in the mid-single-digit negative range, as key actions to improve the business continue to gain traction. With regard to gross margin rate, the company expects the rate to improve significantly versus the prior year, up between 200-250 basis points, driven by reduced markdown activity, lower freight costs, and cost reduction and productivity initiatives. The company expects adjusted SG&A dollars to be down by a low-single digit percentage versus 2023, including the impact of additional expense from the recently completed sale and leaseback. The company does not expect to recognize any tax benefit in the first quarter as management expects to remain in a three-year cumulative loss position, which requires the company to record valuation allowances against deferred tax assets, including those related to net operating losses. The company is not providing EPS guidance at this point, but does expect its Q1 adjusted operating loss to be lower than last year. The company expects a share count of approximately 29.4 million for the first quarter.   

Conference Call/Webcast
The company will host a conference call today at 8:00 a.m. ET to discuss the financial results for the fourth quarter of fiscal 2023. A live webcast of the call will be available through the Investor Relations section of its website at http://www.biglots.com/corporate/investors/ or by phone by dialing 877.407.3088 (Toll Free) or 201.389.0927 (Toll). An archive will be available on the Investor Relations section of the company's website at http://www.biglots.com/corporate/investors/ through midnight Thursday, March 21, 2024. In addition, a replay of the call will be available through March 21 by dialing 877.660.6853 (Toll Free) or 201.612.7415 (Toll) and enter the Replay Conference ID: 13744496.

About Big Lots
Headquartered in Columbus, Ohio, Big Lots, Inc. (NYSE: BIG) is America's Discount Home Store, operating more than 1,300 stores in 48 states, as well as an ecommerce store with expanded fulfillment and delivery capabilities. The Company's mission is to help customers "Live Big and Save Lots" by offering bargains to brag about on everything for their home, including furniture, décor, pantry essentials, kitchenware, pet supplies, and more. For more information about the company or to find the store nearest you, visit biglots.com.

Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and such statements are intended to qualify for the protection of the safe harbor provided by the Act. The words "anticipate," "estimate," "continue," "could," "approximate," "expect," "objective," "goal," "project," "intend," "plan," "believe," "will," "should," "may," "target," "forecast," "guidance," "outlook" and similar expressions generally identify forward-looking statements. Similarly, descriptions of our objectives, strategies, plans, goals or targets are also forward-looking statements. Forward-looking statements relate to the expectations of management as to future occurrences and trends, including statements expressing optimism or pessimism about future operating results or events and projected sales, earnings, capital expenditures and business strategy. Forward-looking statements are based upon a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Forward-looking statements are and will be based upon management's then-current views and assumptions regarding future events and operating performance and are applicable only as of the dates of such statements. Although we believe the expectations expressed in forward-looking statements are based on reasonable assumptions within the bounds of our knowledge, forward-looking statements, by their nature, involve risks, uncertainties and other factors, any one or a combination of which could materially affect business, financial condition, results of operations or liquidity.

Forward-looking statements that we make herein and in other reports and releases are not guarantees of future performance and actual results may differ materially from those discussed in such forward-looking statements as a result of various factors, including, but not limited to, the current economic and credit conditions, inflation, the cost of goods, our inability to successfully execute strategic initiatives, competitive pressures, economic pressures on our customers and us, the availability of brand name closeout merchandise, trade restrictions, freight costs, the risks discussed in the Risk Factors section of our most recent Annual Report on Form 10-K, and other factors discussed from time to time in other filings with the SEC, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. This release should be read in conjunction with such filings, and you should consider all of these risks, uncertainties and other factors carefully in evaluating forward-looking statements.

You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and SEC filings.

BIG LOTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)












FEBRUARY 3


JANUARY 28






2024


2023






(Unaudited)


(Unaudited)












ASSETS















Current assets:








Cash and cash equivalents


$46,411


$44,730




Inventories


953,302


1,147,949




Other current assets


86,310


92,635




   Total current assets


1,086,023


1,285,314











Operating lease right-of-use assets


1,637,845


1,619,756











Property and equipment - net


563,185


691,111











Deferred income taxes


0


56,301



Other assets


38,256


38,449






$3,325,309


$3,690,931




















LIABILITIES AND SHAREHOLDERS' EQUITY     















Current liabilities:








Accounts payable


$320,682


$421,680




Current operating lease liabilities


242,384


252,320




Property, payroll and other taxes


72,517


71,274




Accrued operating expenses


116,900


111,752




Insurance reserves


33,458


35,871




Accrued salaries and wages


43,182


26,112




Income taxes payable


1,896


845




   Total current liabilities


831,019


919,854











Long-term debt


406,271


301,400











Noncurrent operating lease liabilities


1,616,634


1,514,009



Deferred income taxes


459


0



Insurance reserves


57,384


58,613



Unrecognized tax benefits


5,223


8,091



Other liabilities


123,824


125,057











Shareholders' equity


284,495


763,907






$3,325,309


$3,690,931



 

BIG LOTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)












14 WEEKS ENDED


13 WEEKS ENDED




FEBRUARY 3, 2024


JANUARY 28, 2023





%



%




(Unaudited)


(Recast)

















Net sales


$1,432,484

100.0


$1,543,113

100.0










Gross margin


544,443

38.0


560,901

36.3










Selling and administrative expenses


535,249

37.4


544,486

35.3










Depreciation expense


33,518

2.3


43,051

2.8










Gain on sale of real estate


(551)

(0.0)


(18,581)

(1.2)









Operating loss


(23,773)

(1.7)


(8,055)

(0.5)










Interest expense


(10,842)

(0.8)


(7,370)

(0.5)










Other income (expense)


2

0.0


4

0.0









Loss before income taxes


(34,613)

(2.4)


(15,421)

(1.0)










Income tax benefit


(3,904)

(0.3)


(2,958)

(0.2)









Net loss


($30,709)

(2.1)


($12,463)

(0.8)

















Earnings (loss) per common share
















Basic


($1.05)



($0.43)











Diluted


($1.05)



($0.43)


















Weighted average common shares outstanding
















Basic


29,217



28,957











Dilutive effect of share-based awards


-



-











Diluted


29,217



28,957










Cash dividends declared per common share


$0.00



$0.30


 

BIG LOTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)












53 WEEKS ENDED


52 WEEKS ENDED




FEBRUARY 3, 2024


JANUARY 28, 2023





%



%




(Unaudited)


(Recast)

















Net sales


$4,722,099

100.0


$5,468,329

100.0










Gross margin


1,686,611

35.7


1,913,503

35.0










Selling and administrative expenses


2,141,927

45.4


2,040,334

37.3










Depreciation expense


144,504

3.1


154,859

2.8










Gain on sale of real estate


(212,463)

(4.5)


(20,190)

(0.4)









Operating loss


(387,357)

(8.2)


(261,500)

(4.8)










Interest expense


(44,758)

(0.9)


(20,280)

(0.4)










Other income (expense)


7

0.0


1,363

0.0









Loss before income taxes


(432,108)

(9.2)


(280,417)

(5.1)










Income tax expense (benefit)


49,768

1.1


(69,709)

(1.3)









Net loss


($481,876)

(10.2)


($210,708)

(3.9)

















Earnings (loss) per common share
















Basic


($16.53)



($7.30)











Diluted


($16.53)



($7.30)


















Weighted average common shares outstanding
















Basic


29,155



28,860











Dilutive effect of share-based awards


-



-











Diluted


29,155



28,860










Cash dividends declared per common share


$0.30



$1.20


 

BIG LOTS, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(In thousands)












14 WEEKS ENDED


13 WEEKS ENDED






FEBRUARY 3, 2024


JANUARY 28, 2023






 (Unaudited)


 (Unaudited)




  Net cash provided by operating activities


$147,172


$134,753












  Net cash (used in) provided by investing activities


(14,812)


15,911












  Net cash used in financing activities


(132,543)


(168,072)











Decrease in cash and cash equivalents


(183)


(17,408)




Cash and cash equivalents:








  Beginning of period


46,594


62,138




  End of period


$46,411


$44,730



 

BIG LOTS, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(In thousands)












53 WEEKS ENDED


52 WEEKS ENDED






FEBRUARY 3, 2024


JANUARY 28, 2023






 (Unaudited)


 (Unaudited)




  Net cash used in operating activities


($251,960)


($144,286)












  Net cash provided by (used in) investing activities


279,511


(108,940)












  Net cash (used in) provided by financing activities


(25,870)


244,234











Increase (decrease) in cash and cash equivalents


1,681


(8,992)




Cash and cash equivalents:








  Beginning of period


44,730


53,722




  End of period


$46,411


$44,730



 

BIG LOTS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)

The following tables reconcile: selling and administrative expenses, selling and administrative expense rate, depreciation expense, depreciation expense rate, gain on sale of real estate, gain on sale of real estate rate, operating profit (loss), operating profit (loss) rate, income tax expense (benefit), effective income tax rate, net loss, and diluted earnings (loss) per share for the fourth quarter of 2023, the full year 2023, the fourth quarter of 2022, and the full year 2022 (GAAP financial measures) to adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted depreciation expense, adjusted depreciation expense rate, adjusted gain on sale of real estate, adjusted gain on sale of real estate rate, adjusted operating profit (loss), adjusted operating profit (loss) rate, adjusted income tax expense (benefit), adjusted effective income tax rate, adjusted net loss, and adjusted diluted earnings (loss) per share (non-GAAP financial measures). 

Fourth Quarter of 2023 - Fourteen weeks ended February 3, 2024






























 As Reported


 Adjustment to
exclude forward
distribution
center ("FDC")
contract
termination costs
and related
expenses


 Adjustment
to exclude
store asset
impairment
charges


 Adjustment to
exclude
gain on sale
of real estate
and related
expenses


 Adjustment to
exclude fees
related to a
cost reduction
and
productivity
initiative


 Adjustment
to exclude
initial
valuation
allowance on
deferred tax
assets


 As Adjusted
(non-GAAP)

 Selling and administrative expenses

$      535,249


$                (2,168)


$   (11,724)


$                -


$        (11,495)


$                 -


$     509,862

 Selling and administrative expense rate

37.4 %


(0.2 %)


(0.8 %)


-


(0.8 %)


-


35.6 %

 Gain on sale of real estate


(551)


-


-


551


-


-


-

 Gain on sale of real estate rate

(0.0 %)


-


-


0.0 %


-


-


-

 Operating (loss) profit 


(23,773)


2,168


11,724


(551)


11,495


-


1,063

 Operating (loss) profit rate


(1.7 %)


0.2 %


0.8 %


(0.0 %)


0.8 %


-


0.1 %

  Income tax benefit (1)



(3,904)


-


-


563


-


1,846


(1,495)

 Effective income tax rate


11.3 %


-


-


0.9 %


-


3.1 %


15.3 %

 Net loss



(30,709)


2,168


11,724


(1,114)


11,495


(1,846)


(8,282)

 Diluted earnings (loss) per share 

$           (1.05)


$                    0.07


$         0.40


$          (0.04)


$               0.39


$           (0.06)


$          (0.28)

















 (1) The income tax impact of each adjustment was determined prior to consideration of the valuation allowance on deferred tax assets recorded in the second quarter of 2023, and subsequently adjusted in the fourth quarter of 2023. 

The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted gain on sale of real estate, adjusted gain on sale of real estate rate, adjusted operating (loss) profit, adjusted operating (loss) profit rate, adjusted income tax benefit, adjusted effective income tax rate, adjusted net loss, and adjusted diluted earnings (loss) per share are "non-GAAP financial measures" as that term is defined by Rule 101 of Regulation G (17 CFR Part 244) and Item 10 of Regulation S-K (17 CFR Part 229). These non-GAAP financial measures exclude from the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP") FDC contract termination costs and related expenses of $2,168, store asset impairment charges of $11,724, a gain on sale of real estate and related expenses of $551 ($1,114, net of tax), fees related to a cost reduction and productivity initiative which we refer to as "Project Springboard" of $11,495, and an adjustment to our valuation allowance of which a portion was attributable to the initial valuation allowance on deferred tax assets recorded in the second quarter of 2023 of $1,846

Full Year 2023 - Fifty-three weeks ended February 3, 2024




































 As Reported


 Adjustment
to exclude
synthetic
lease exit
costs and
related
expenses


 Adjustment to
exclude forward
distribution
center ("FDC")
contract
termination
costs and related
expenses


 Adjustment
to exclude
store asset
impairment
charges


 Adjustment
to exclude
gain on sale
of real
estate and
related
expenses


 Adjustment
to exclude
fees related
to a cost
reduction
and
productivity
initiative


 Adjustment
to exclude
initial
valuation
allowance
on deferred
tax assets


 As
Adjusted
(non-GAAP)

 Selling and administrative expenses

$     2,141,927


$     (53,610)


$             (15,537)


$ (148,595)


$                -


$     (31,359)


$                -


$1,892,826

 Selling and administrative expense rate

45.4 %


(1.1 %)


(0.3 %)


(3.1 %)


-


(0.7 %)


-


40.1 %

 Depreciation expense


144,504


-


(8,030)


-


-


-


-


136,474

 Depreciation expense rate


3.1 %


-


(0.2 %)


-


-


-


-


2.9 %

 Gain on sale of real estate


(212,463)


-


-


-


212,463


-


-


-

 Gain on sale of real estate rate

(4.5 %)


-


-


-


4.5 %


-


-


-

 Operating loss


(387,357)


53,610


23,567


148,595


(212,463)


31,359


-


(342,689)

 Operating loss rate


(8.2 %)


1.1 %


0.5 %


3.1 %


(4.5 %)


0.7 %


-


(7.3 %)

 Income tax expense (benefit)

49,768


13,830


4,810


20,210


(2,019)


1,272


(146,004)


(58,133)

 Effective income tax rate (1)


(11.5 %)


(3.4 %)


(1.2 %)


(5.0 %)


0.5 %


(0.3 %)


35.9 %


15.0 %

 Net loss



(481,876)


39,780


18,757


128,385


(210,444)


30,087


146,004


(329,307)

 Diluted earnings (loss) per share 

$           (16.53)


$           1.36


$                   0.64


$         4.40


$         (7.22)


$           1.03


$           5.01


$      (11.30)



















 (1) The income tax impact of each adjustment was determined prior to consideration of the valuation allowance on deferred tax assets recorded in the second quarter of 2023, and subsequently adjusted in the fourth quarter of 2023. 

The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted depreciation expense, adjusted depreciation expense rate, adjusted gain on sale of real estate, adjusted gain on sale of real estate rate, adjusted operating loss, adjusted operating loss rate, adjusted income tax expense (benefit), adjusted effective income tax rate, adjusted net loss, and adjusted diluted earnings (loss) per share are "non-GAAP financial measures" as that term is defined by Rule 101 of Regulation G (17 CFR Part 244) and Item 10 of Regulation S-K (17 CFR Part 229). These non-GAAP financial measures exclude from the most directly comparable financial measures calculated and presented in accordance with GAAP synthetic lease exit costs and related expenses of $53,610 ($39,780, net of tax), FDC contract termination costs and related expenses of $23,567 ($18,757, net of tax), store asset impairment charges net of liability extinguishment for terminated leases of previously impaired stores of $148,595 ($128,385, net of tax), a gain on sale of real estate and related expenses of $212,463 ($210,444, net of tax), fees related to a cost reduction and productivity initiative which we refer to as "Project Springboard" of $31,359 ($30,087, net of tax), and an initial valuation allowance on deferred tax assets of $146,004 recorded in the second quarter of 2023, and subsequently adjusted in the fourth quarter of 2023. 

Fourth Quarter of 2022 - Thirteen weeks ended January 28, 2023


















 As Reported


 Adjustment to
exclude store asset
impairment


 Adjustment to
exclude gain on
sale of real estate
and related
expenses


 As Adjusted
(non-GAAP)

 Selling and administrative expenses

$             544,486


$                  (22,568)


$                             -


$             521,918

 Selling and administrative expense rate

35.3 %


(1.5 %)


-


33.8 %

 Depreciation expense


43,051


-


(1,734)


41,317

 Depreciation expense rate


2.8 %


-


(0.1 %)


2.7 %

 Gain on sale of real estate


(18,581)


-


18,581


-

 Gain on sale of real estate rate

(1.2 %)


-


1.2 %


-

 Operating loss


(8,055)


22,568


(16,847)


(2,334)

 Operating loss rate


(0.5 %)


1.5 %


(1.1 %)


(0.2 %)

 Income tax benefit


(2,958)


5,408


(4,040)


(1,590)

 Effective income tax rate


19.2 %


(1.6 %)


(1.2 %)


16.4 %

 Net loss



(12,463)


17,160


(12,807)


(8,110)

 Diluted earnings (loss) per share 

$                  (0.43)


$                         0.59


$                       (0.44)


$                  (0.28)

The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted depreciation expense, adjusted depreciation expense rate, adjusted gain on sale of real estate, adjusted gain on sale of real estate rate, adjusted operating loss, adjusted operating loss rate, adjusted income tax benefit, adjusted effective income tax rate, adjusted net loss, and adjusted diluted earnings (loss) per share are "non-GAAP financial measures" as that term is defined by Rule 101 of Regulation G (17 CFR Part 244) and Item 10 of Regulation S-K (17 CFR Part 229). These non-GAAP financial measures exclude from the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP") store asset impairment charges of $22,568 ($17,160, net of tax) and a gain on sale of real estate and related expenses of $16,847 ($12,807, net of tax). The depreciation expense included within the adjustment to exclude gain on sale of real estate and related expenses is the accelerated depreciation associated with the disposal of fixtures and equipment at each of the store locations included in the sale.

Full Year 2022 - Fifty-two weeks ended January 28, 2023




















 As Reported


 Adjustment to
exclude store asset
impairment


 Adjustment to
exclude gain on
sale of real estate
and related
expenses


 As Adjusted
(non-GAAP)

 Selling and administrative expenses

$          2,040,334


$                  (68,396)


$                             -


$          1,971,938

 Selling and administrative expense rate

37.3 %


(1.3 %)


-


36.1 %

 Depreciation expense


154,859


-


(1,734)


153,125

 Depreciation expense rate


2.8 %


-


(0.0 %)


2.8 %

 Gain on sale of real estate


(20,190)


-


18,581


(1,609)

 Gain on sale of real estate rate

(0.4 %)


-


0.3 %


(0.0 %)

 Operating loss


(261,500)


68,396


(16,847)


(209,951)

 Operating loss rate


(4.8 %)


1.3 %


(0.3 %)


(3.8 %)

 Income tax benefit


(69,709)


16,739


(4,040)


(57,010)

 Effective income tax rate


24.9 %


0.0 %


0.0 %


24.9 %

 Net loss



(210,708)


51,657


(12,807)


(171,858)

 Diluted earnings (loss) per share 

$                  (7.30)


$                         1.79


$                       (0.44)


$                  (5.96)

The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted depreciation expense, adjusted depreciation expense rate, adjusted gain on sale of real estate, adjusted gain on sale of real estate rate, adjusted operating loss, adjusted operating loss rate, adjusted income tax benefit, adjusted effective income tax rate, adjusted net loss, and adjusted diluted earnings (loss) per share are "non-GAAP financial measures" as that term is defined by Rule 101 of Regulation G (17 CFR Part 244) and Item 10 of Regulation S-K (17 CFR Part 229). These non-GAAP financial measures exclude from the most directly comparable financial measures calculated and presented in accordance with GAAP store asset impairment charges of $68,396 ($51,657, net of tax) and a gain on sale of real estate and related expenses of $16,847 ($12,807, net of tax). The depreciation expense included within the adjustment to exclude gain on sale of real estate and related expenses is the accelerated depreciation associated with the disposal of fixtures and equipment at each of the store locations included in the sale. 

Our management believes that the disclosure of these non-GAAP financial measures provides useful information to investors because the non-GAAP financial measures present an alternative and more relevant method for measuring our operating performance, excluding special items included in the most directly comparable GAAP financial measures, that management believes is more indicative of our on-going operating results and financial condition. Our management uses these non-GAAP financial measures, along with the most directly comparable GAAP financial measures, in evaluating our operating performance.

Headquartered in Columbus, Ohio, Big Lots, Inc. (NYSE: BIG) is America's Discount Home Store, operating more than 1,300 stores in 48 states, as well as an ecommerce store with expanded fulfillment and delivery capabilities. (PRNewsfoto/Big Lots)

 

© 2024 Canjex Publishing Ltd. All rights reserved.