Delaware | 001-38559 | 45-2936287 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
25 Research Drive, Westborough, MA | 01581 | |||
(Address of principal executive offices) | (Zip Code) | |||
(774) 512-7400 | ||||
Registrant’s telephone number, including area code | ||||
N/A | ||||
(Former name or former address, if changed since last report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, par value $0.01 | BJ | New York Stock Exchange |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description | |
BJ’S WHOLESALE CLUB HOLDINGS, INC. | |
By: | /s/ Robert W. Eddy |
Name: | Robert W. Eddy |
Title: | Executive Vice President, Chief Financial and Administrative Officer |
• | Net sales increased by 1.5% for the fourth quarter of fiscal 2019 to $3.4 billion and by 1.3% to $12.9 billion for fiscal 2019. |
• | Comparable club sales, excluding gasoline sales, increased by 0.3% for the fourth quarter of fiscal 2019 and 1.3% for fiscal 2019. |
• | Net income was $187.2 million, or $1.35 per diluted share for fiscal 2019, reflecting 29% year-over-year growth. |
• | Adjusted net income was $203.4 million, or $1.46 per diluted share, for fiscal 2019, reflecting 10% year-over-year growth. |
BJ'S WHOLESALE CLUB HOLDINGS, INC. | ||||||||||||||||||||||
(Amounts in thousands, except per share amounts) | ||||||||||||||||||||||
13 Weeks Ended | 13 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | |||||||||||||||||||
February 1, 2020 | February 2, 2019 | % Growth | February 1, 2020 | February 2, 2019 | % Growth | |||||||||||||||||
Net sales | $ | 3,394,761 | $ | 3,343,814 | 1.5 | % | $ | 12,888,556 | $ | 12,724,454 | 1.3 | % | ||||||||||
Membership fee income | 77,564 | 73,068 | 6.2 | % | 302,151 | 282,893 | 6.8 | % | ||||||||||||||
Total revenues | 3,472,325 | 3,416,882 | 1.6 | % | 13,190,707 | 13,007,347 | 1.4 | % | ||||||||||||||
Operating income | 81,844 | 109,882 | (25.5 | )% | 352,199 | 303,453 | 16.1 | % | ||||||||||||||
Income from continuing operations | 42,183 | 63,713 | (33.8 | )% | 187,757 | 127,092 | 47.7 | % | ||||||||||||||
Adjusted EBITDA (a) | 150,217 | 165,369 | (9.2 | )% | 581,624 | 578,426 | 0.6 | % | ||||||||||||||
Net income | 41,763 | 64,307 | (35.1 | )% | 187,176 | 127,261 | 47.1 | % | ||||||||||||||
EPS (b) | 0.30 | 0.46 | (34.8 | )% | 1.35 | 1.05 | 28.6 | % | ||||||||||||||
Adjusted net income(a) | 55,101 | 62,106 | (11.3 | )% | 203,405 | 186,153 | 9.3 | % | ||||||||||||||
Adjusted EPS (a) | 0.40 | 0.44 | (9.1 | )% | 1.46 | 1.33 | 9.8 | % | ||||||||||||||
Basic weighted average shares outstanding | 135,793 | 135,910 | (0.1 | )% | 136,174 | 116,599 | 16.8 | % | ||||||||||||||
Diluted weighted average shares outstanding | 138,266 | 139,708 | (1.0 | )% | 139,109 | 121,135 | 14.8 | % |
(a) | See “Note Regarding Non-GAAP Financial Information” |
(b) | EPS represents earnings per diluted share |
• | In the fourth quarter of fiscal 2019, we launched Project Momentum, a cost reduction program which is expected to generate savings over the next two years, enabling us to invest more aggressively behind growth opportunities. These investments will be disciplined, growth oriented and anchored in the strategic pillars - acquire and retain members; deliver value to keep them engaged; make it more convenient to shop and expand our reach. |
• | Comparable club sales for the fourth quarter of fiscal 2019 increased 0.5%, compared to the fourth quarter of fiscal 2018. Comparable club sales, excluding the impact of gasoline sales increased 0.3% compared to the fourth quarter of fiscal 2018. Comparable club sales for fiscal 2019 increased 0.7%, compared to fiscal 2018. Comparable club sales, excluding the impact of gasoline sales, increased 1.3% compared to fiscal 2018. |
• | Gross profit decreased to $622.2 million in the fourth quarter of fiscal 2019 from $628.9 million in the fourth quarter of fiscal 2018. Gross profit increased to $2,426.8 million in fiscal 2019 from $2,360.9 million in fiscal 2018. Merchandise gross margin rate, which excludes gasoline and membership fee income, increased by approximately 20 basis points over the fourth quarter of fiscal 2018 and by approximately 30 basis points over fiscal 2018. The improvement was primarily driven by continued progress in our category profitability improvement program. |
• | Selling, general and administrative expenses ("SG&A") increased to $536.0 million in the fourth quarter of fiscal 2019, compared to $517.0 million in the fourth quarter of fiscal 2018. SG&A included club closing and impairment charges, gains on sales leaseback transactions, severance costs and offering costs that, in the aggregate and as applicable, increased SG&A by $16.8 million in the fourth quarter of fiscal 2019 and $0.7 million in the fourth quarter of fiscal 2018. In fiscal 2019, SG&A increased to $2,059.4 million, compared to $2,051.3 million in fiscal 2018. SG&A included charges associated with stock-based compensation related to the Company’s initial public offering (“IPO”), offering costs, club closing and impairment charges, management fees, gains on sales leaseback transactions, and severance costs that, in the aggregate and as applicable, increased SG&A by $18.7 million for fiscal 2019 and $60.0 million of fiscal 2018. The increase in SG&A reflects continued investments to drive the Company’s strategic priorities. |
• | Operating income decreased to $81.8 million, or 2.4% of total revenues in the fourth quarter of fiscal 2019, compared to $109.9 million, or 3.2% of total revenues in the fourth quarter of fiscal 2018. Operating income included club closing and impairment charges, gains on sales leaseback transactions, severance costs and offering costs that, in the aggregate and as applicable, reduced operating income by $16.8 million in the fourth quarter of fiscal 2019 and $0.7 million in the fourth quarter of fiscal 2018. Operating income increased to $352.2 million, or 2.7% of total revenues, in fiscal 2019, compared to $303.5 million, or 2.3% of total revenues in fiscal 2018. Operating income included charges associated with stock-based compensation related to our IPO, offering costs, club closing and impairment charges, management fees, gains on sales leaseback transactions, and severance costs that, in the aggregate and as applicable, reduced operating income by $18.7 million for fiscal 2019 and $60.0 million of fiscal 2018. |
• | Interest expense, net, decreased to $26.0 million in the fourth quarter of fiscal 2019, compared to $26.7 million in the fourth quarter of fiscal 2018. During the fourth quarter of fiscal 2019, the Company repriced its first lien term loan facility (the "First Lien Term Loan") and reduced its rate by fifty basis points to LIBOR plus 2.25%. Interest expense in the fourth quarter of fiscal 2019 included $1.8 million of fees and write-off of deferred financing fees associated with the repricing. In fiscal 2019, interest expense, net, decreased to $108.2 million, compared to $164.5 million in fiscal 2018. Interest expense in fiscal 2019 included $3.8 million of fees and write off of deferred fees and original issue discounts associated with partial paydown and repricing of the First Lien Term Loan. Interest expense in fiscal 2018 included $6.2 million in a prepayment penalty and $13.0 million in a write-off of deferred financing costs related to the second lien term loan facility (the "Second Lien Term Loan") that occurred during the second quarter of fiscal 2018 and $6.2 million of expenses associated with the repricing of the First Lien Term Loan and the senior secured asset based revolving credit and term facility (the "ABL Facility") in the third quarter of fiscal 2018. |
• | Income tax expense from continuing operations was $13.7 million in the fourth quarter of fiscal 2019, compared to income tax expense of $19.4 million in the fourth quarter of fiscal 2018. The fourth quarter of fiscal 2019 included a benefit of $0.4 million from windfall tax benefits from stock compensation awards compared to $2.7 million in the fourth quarter of fiscal 2018. Income tax expense was $56.2 million in fiscal 2019, compared to $11.8 million in fiscal 2018. Fiscal 2019 included a benefit of $8.8 million from windfall tax benefits related to stock compensation awards, compared to $20.0 million in fiscal 2018. |
Outlook | ||||||
FY Ending January 30, 2021(a) | FY 2020 | |||||
Net sales | $13.1 - $13.3 | |||||
Merchandise comparable club sales (b) | 1% - 2% | |||||
Income from continuing operations | $214 - $237 | |||||
Adjusted EBITDA | $595 - $625 | |||||
Interest expense | $85-$90 | |||||
Tax rate(c) | 26% - 28% | |||||
Net income | $214 - $237 | |||||
EPS (d) | $1.55 - 1.72 | |||||
Capital expenditures | $200 - $220 |
a) | Amounts in millions, except for per share amounts. Net sales is in billions. |
b) | Merchandise comparable club sales are defined as comparable club sales, excluding the impact of gasoline sales. |
c) | Tax rate reflects statutory rate of 28.0%, offset by permanent items primarily estimated stock windfall benefits. |
d) | Based on estimated diluted weighted average shares outstanding of approximately 138 million. |
BJ'S WHOLESALE CLUB HOLDINGS, INC. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Amounts in thousands, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
13 Weeks Ended | 13 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | |||||||||||||
February 1, 2020 | February 2, 2019 | February 1, 2020 | February 2, 2019 | |||||||||||||
Net sales | $ | 3,394,761 | $ | 3,343,814 | $ | 12,888,556 | $ | 12,724,454 | ||||||||
Membership fee income | 77,564 | 73,068 | 302,151 | 282,893 | ||||||||||||
Total revenues | 3,472,325 | 3,416,882 | 13,190,707 | 13,007,347 | ||||||||||||
Cost of sales | 2,850,106 | 2,787,937 | 10,763,926 | 10,646,452 | ||||||||||||
Selling, general and administrative expenses | 535,950 | 517,010 | 2,059,430 | 2,051,324 | ||||||||||||
Pre-opening expense | 4,425 | 2,053 | 15,152 | 6,118 | ||||||||||||
Operating income | 81,844 | 109,882 | 352,199 | 303,453 | ||||||||||||
Interest expense, net | 25,956 | 26,748 | 108,230 | 164,535 | ||||||||||||
Income from continuing operations before income taxes | 55,888 | 83,134 | 243,969 | 138,918 | ||||||||||||
Provision for income taxes | 13,705 | 19,421 | 56,212 | 11,826 | ||||||||||||
Income from continuing operations | 42,183 | 63,713 | 187,757 | 127,092 | ||||||||||||
Income (loss) from discontinued operations, net of income taxes | (420 | ) | 594 | (581 | ) | 169 | ||||||||||
Net income | $ | 41,763 | $ | 64,307 | $ | 187,176 | $ | 127,261 | ||||||||
Income per share attributable to common stockholders - basic: | ||||||||||||||||
Income from continuing operations | $ | 0.31 | $ | 0.47 | 1.38 | $ | 1.09 | |||||||||
Income (loss) from discontinued operations | — | — | (0.01 | ) | — | |||||||||||
Net income | $ | 0.31 | $ | 0.47 | $ | 1.37 | $ | 1.09 | ||||||||
Income per share attributable to common stockholders - diluted: | ||||||||||||||||
Income from continuing operations | $ | 0.31 | $ | 0.46 | $ | 1.35 | $ | 1.05 | ||||||||
Income (loss) from discontinued operations | (0.01 | ) | — | — | — | |||||||||||
Net income | $ | 0.30 | $ | 0.46 | $ | 1.35 | $ | 1.05 | ||||||||
Weighted average number of shares outstanding: | ||||||||||||||||
Basic | 135,793 | 135,910 | 136,174 | 116,599 | ||||||||||||
Diluted | 138,266 | 139,708 | 139,109 | 121,135 |
BJ'S WHOLESALE CLUB HOLDINGS, INC. | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(Amounts in thousands) | ||||||||||
(Unaudited) | ||||||||||
February 1, 2020 | February 2, 2019 | |||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 30,204 | $ | 27,146 | ||||||
Accounts receivable, net | 206,353 | 194,300 | ||||||||
Merchandise inventories | 1,081,502 | 1,052,306 | ||||||||
Prepaid expenses and other current assets | 41,961 | 63,454 | ||||||||
Total current assets | 1,360,020 | 1,337,206 | ||||||||
Operating lease right-of-use assets, net | 2,060,059 | — | ||||||||
Property and equipment, net | 760,208 | 748,778 | ||||||||
Goodwill | 924,134 | 924,134 | ||||||||
Intangibles, net | 146,985 | 200,870 | ||||||||
Other assets | 18,374 | 28,297 | ||||||||
Total assets | $ | 5,269,780 | $ | 3,239,285 | ||||||
LIABILITIES | ||||||||||
Current liabilities: | ||||||||||
Current portion of long-term debt | $ | 343,377 | $ | 254,377 | ||||||
Current portion of operating lease liabilities | 123,751 | — | ||||||||
Accounts payable | 786,412 | 816,880 | ||||||||
Accrued expenses and other current liabilities | 547,876 | 506,431 | ||||||||
Total current liabilities | 1,801,416 | 1,577,688 | ||||||||
Long-term lease liabilities | 1,986,790 | — | ||||||||
Long-term debt | 1,337,308 | 1,546,471 | ||||||||
Deferred income taxes | 46,200 | 36,937 | ||||||||
Other noncurrent liabilities | 152,410 | 280,273 | ||||||||
STOCKHOLDERS' DEFICIT | (54,344 | ) | (202,084 | ) | ||||||
Total liabilities and stockholders' deficit | $ | 5,269,780 | $ | 3,239,285 |
BJ'S WHOLESALE CLUB HOLDINGS, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Amounts in thousands) | ||||||||
(Unaudited) | ||||||||
52 Weeks Ended February 1, 2020 | 52 Weeks Ended February 2, 2019 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income | $ | 187,176 | $ | 127,261 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 157,000 | 162,223 | ||||||
Amortization of debt issuance costs and accretion of original issue discount | 5,172 | 6,556 | ||||||
Debt extinguishment and refinancing charges | 2,167 | 23,602 | ||||||
Impairment charges | 13,306 | 3,962 | ||||||
Other non-cash items, net | 2,028 | 2,362 | ||||||
Stock-based compensation expense | 18,796 | 57,677 | ||||||
Deferred income tax provision (benefit) | 10,246 | (12,314 | ) | |||||
Increase (decrease) in cash due to changes in: | ||||||||
Accounts receivable | (12,053 | ) | (3,976 | ) | ||||
Merchandise inventories | (29,196 | ) | (33,168 | ) | ||||
Accounts payable | (32,962 | ) | 49,114 | |||||
Accrued expenses | 18,134 | 24,380 | ||||||
Other operating assets and liabilities, net | 15,329 | 19,424 | ||||||
Net cash provided by operating activities | 355,143 | 427,103 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Additions to property and equipment, net of disposals | (196,901 | ) | (145,913 | ) | ||||
Proceeds from sale leaseback transaction | 21,606 | — | ||||||
Net cash used in investing activities | (175,295 | ) | (145,913 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Payments on long term debt | (14,829 | ) | (36,167 | ) | ||||
Paydown of First Lien Term Loan and extinguishment of Second Lien Term Loan | (200,000 | ) | (975,633 | ) | ||||
Net borrowings on ABL Facility | 89,000 | 72,000 | ||||||
Debt issuance costs paid | (21 | ) | (982 | ) | ||||
Dividends paid | (25 | ) | (25 | ) | ||||
Net cash received (paid) from stock option exercises | 11,072 | (14,240 | ) | |||||
Net cash received from Employee Stock Purchase Program (ESPP) | 1,728 | — | ||||||
Acquisition of treasury stock | (67,305 | ) | (19,109 | ) | ||||
Net proceeds from stock issuance | — | 685,889 | ||||||
Proceeds from financing obligations | 4,202 | — | ||||||
Other financing activities | (612 | ) | (731 | ) | ||||
Net cash used in financing activities | (176,790 | ) | (288,998 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 3,058 | (7,808 | ) | |||||
Cash and cash equivalents at beginning of period | 27,146 | 34,954 | ||||||
Cash and cash equivalents at end of period | $ | 30,204 | $ | 27,146 |
BJ'S WHOLESALE CLUB HOLDINGS, INC. | |||||||||||||||
Reconciliation of net income to adjusted net income and adjusted net income per diluted share | |||||||||||||||
(Amounts in thousands, except per share amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
13 Weeks Ended | 13 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | ||||||||||||
February 1, 2020 | February 2, 2019 | February 1, 2020 | February 2, 2019 | ||||||||||||
Net income as reported | $ | 41,763 | $ | 64,307 | $ | 187,176 | $ | 127,261 | |||||||
Adjustments: | |||||||||||||||
Stock-based compensation related to IPO (a) | — | — | — | 48,927 | |||||||||||
Offering costs (b) | — | 660 | 1,928 | 3,803 | |||||||||||
Management fees (c) | — | — | — | 3,333 | |||||||||||
2019 sale leaseback transaction gain(d) | (2,585 | ) | — | (2,585 | ) | — | |||||||||
Club closing and impairment charges (e) | 15,383 | — | 15,383 | 3,962 | |||||||||||
Charges related to extinguishing Second Lien Term Loan (f) | — | — | — | 19,159 | |||||||||||
Interest and amortization on Second Lien Term Loan (g) | — | — | — | 24,341 | |||||||||||
Charges and write-offs related to debt refinancing and 2019 paydown (h) | 1,788 | — | 3,820 | 6,240 | |||||||||||
Windfall tax benefit from stock exercises (i) | — | (2,676 | ) | — | (20,029 | ) | |||||||||
Reduction in force severance (j) | 3,994 | — | 3,994 | — | |||||||||||
Tax impact of adjustments to net income (k) | (5,242 | ) | (185 | ) | (6,311 | ) | (30,844 | ) | |||||||
Adjusted net income | $ | 55,101 | $ | 62,106 | $ | 203,405 | $ | 186,153 | |||||||
Weighted average diluted shares outstanding (l) | 138,266 | 139,708 | 139,109 | 139,708 | |||||||||||
Adjusted net income per diluted share (m) | $ | 0.40 | $ | 0.44 | $ | 1.46 | $ | 1.33 |
(a) | Represents stock-based compensation expense for certain restricted stock and stock option awards issued in connection with our IPO. |
(b) | Represents costs related to our IPO, and the registered offerings by selling stockholders. |
(c) | Represents management fees paid to our sponsors (or advisory affiliates thereof) in accordance with our management services agreement, which terminated upon closing of the IPO. |
(d) | Represents a gain from the sale leaseback of one of our new Michigan locations. |
(e) | 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. In addition, the prior year period includes impairment charges related to a club that was relocated in fiscal 2018. |
(f) | Represents the write-off of certain deferred financing charges and a prepayment penalty associated with the payoff of our Second Lien Term Loan. |
(g) | Represents the historical interest expense associated with the Second Lien Term Loan that was paid in full with proceeds from our IPO. |
(h) | Represents the fees and write-off of deferred fees and original issue discount associated with the partial paydown and 2019 repricing of our First Lien Term Loan and the 2018 repricing of the Company’s First Lien Term Loan and ABL Facility. |
(i) | Represents the windfall tax benefit to the Company due to the exercise of stock options by certain former employees of the Company. |
(j) | Represents severance charges associated with a reduction in workforce announced in January 2020. |
(k) | Represents the tax effect of the above adjustments at an statutory tax rate of approximately 28% for both periods ended February 1, 2020 and February 2, 2019. |
(l) | Weighted average diluted shares outstanding for the 52 Weeks Ended February 2, 2019 period is based on weighted average diluted shares outstanding for the 13 Weeks Ended February 2, 2019. |
(m) | Adjusted net income per diluted share is measured using weighted average diluted shares outstanding. |
BJ'S WHOLESALE CLUB HOLDINGS, INC. | ||||||||||||||||
Reconciliation to Adjusted EBITDA | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
13 Weeks Ended | 13 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | |||||||||||||
February 1, 2020 | February 2, 2019 | February 1, 2020 | February 2, 2019 | |||||||||||||
Income from continuing operations | $ | 42,183 | $ | 63,713 | $ | 187,757 | $ | 127,092 | ||||||||
Interest expense, net | 25,956 | 26,748 | 108,230 | 164,535 | ||||||||||||
Provision for income taxes | 13,705 | 19,421 | 56,212 | 11,826 | ||||||||||||
Depreciation and amortization | 40,080 | 39,789 | 157,000 | 162,223 | ||||||||||||
Stock-based compensation expense (a) | 4,812 | 2,932 | 18,796 | 58,917 | ||||||||||||
Pre-opening expenses (b) | 4,425 | 2,053 | 15,152 | 6,118 | ||||||||||||
Management fees (c) | — | — | — | 3,333 | ||||||||||||
Non-cash rent (d) | 2,043 | 1,273 | 8,374 | 4,864 | ||||||||||||
Strategic consulting (e) | — | 10,917 | 11,349 | 33,486 | ||||||||||||
Reduction in force severance (f) | 3,994 | — | 3,994 | — | ||||||||||||
Offering costs(g) | — | 660 | 1,928 | 3,803 | ||||||||||||
Club closing and Impairment charges (h) | 15,383 | — | 15,383 | 4,237 | ||||||||||||
Other adjustments (i) | (2,364 | ) | (2,137 | ) | (2,551 | ) | (2,008 | ) | ||||||||
Adjusted EBITDA | $ | 150,217 | $ | 165,369 | $ | 581,624 | $ | 578,426 |
(a) | Represents total stock-based compensation expense and includes expense related to certain restricted stock and stock option awards issued in connection with our IPO. |
(b) | Represents direct incremental costs of opening or relocating a facility that are charged to operations as incurred. |
(c) | Represents management fees paid to our sponsors (or advisory affiliates thereof) in accordance with our management services agreement, which terminated upon closing of the IPO. |
(d) | Consists of an adjustment to remove the non-cash portion of rent expense. |
(e) | Represents fees paid to external consultants for strategic initiatives of limited duration. |
(f) | Represents severance charges associated with a reduction in workforce announced in January 2020. |
(g) | Represents costs related to our IPO and the registered offerings by selling stockholders. |
(h) | 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. In addition, the prior year period includes impairment charges related to a club that was relocated in fiscal 2018. |
(i) | 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. Fiscal 2018 also includes amortization of a deferred gain from sale leaseback transactions in 2013. |
BJ'S WHOLESALE CLUB HOLDINGS, INC. | |||||||||||||||||
Reconciliation to Free Cash Flow | |||||||||||||||||
(Amounts in thousands) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
13 Weeks Ended | 13 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended | ||||||||||||||
February 1, 2020 | February 2, 2019 | February 1, 2020 | February 2, 2019 | ||||||||||||||
Net Cash provided by operating activities | $ | 133,621 | $ | 176,210 | $ | 355,143 | $ | 427,103 | |||||||||
Less: Additions to property and equipment, net of disposals | 52,473 | 42,573 | 196,901 | 145,913 | |||||||||||||
Plus: Proceeds from sale leaseback transaction | 21,606 | — | 21,606 | — | |||||||||||||
Free cash flow | $ | 102,754 | $ | 133,637 | $ | 179,848 | — | $ | 281,190 |
BJ'S WHOLESALE CLUB HOLDINGS, INC. | ||||
Reconciliation of Net Debt and Net Debt to LTM adjusted EBITDA | ||||
(Amounts in thousands) | ||||
(Unaudited) | ||||
February 1, 2020 | ||||
Total debt | $ | 1,680,685 | ||
Less: Cash and cash equivalents | 30,204 | |||
Net Debt | $ | 1,650,481 | ||
LTM Adjusted EBITDA | $ | 581,624 | ||
Net debt to LTM adjusted EBITDA | 2.8x |
BJ'S WHOLESALE CLUB HOLDINGS, INC. | ||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||
Fiscal 2020 Outlook for Adjusted EBITDA | ||||||||
(Amounts in millions) | ||||||||
(Unaudited) | ||||||||
Fiscal 2020 Outlook | ||||||||
Low End | High End | |||||||
Income from continuing operations | $ | 214 | $ | 237 | ||||
Interest expense, net | 90 | 85 | ||||||
Provision for income taxes | 80 | 88 | ||||||
Depreciation and amortization | 164 | 168 | ||||||
Stock-based compensation | 24 | 24 | ||||||
Pre-opening expenses (a) | 15 | 15 | ||||||
Non-cash rent (b) | 8 | 8 | ||||||
Adjusted EBITDA | $ | 595 | $ | 625 |
(a) | Represents direct incremental costs of opening or relocating a facility that are charged to operations as incurred. |
(b) | Consists of an adjustment to remove the non-cash portion of rent expense. |