Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - BJS WHOLESALE CLUB INC | d8k.htm |
Exhibit 99.1
| FOR IMMEDIATE RELEASE | Contact: | Cathy Maloney | ||
| VP Investor Relations | ||||
| 774-512-6650 | ||||
| cmaloney@bjs.com |
BJ’S WHOLESALE CLUB ANNOUNCES SECOND QUARTER EPS OF $0.84
Earnings Exceed Guidance by 10%
WESTBOROUGH, MA — August 17, 2011 — BJ’s Wholesale Club, Inc. (NYSE: BJ) today reported net income for the second quarter ended July 30, 2011 of $45.7 million, or $0.84 per diluted share. These results significantly exceeded the Company’s guidance for net income in the range of $40.5 to $42.5 million and earnings in the range of $0.74 to $0.78 per diluted share. For the second quarter of 2010, the Company reported net income of $35.8 million, or $0.67 per diluted share.
For the first half of 2011, net income was $79.4 million, or $1.47 per diluted share. For the first half of 2010, net income was $61.9 million, or $1.16 per diluted share.
Laura Sen, BJ’s president and chief executive officer, said, “BJ’s outperformance of 10% versus our guidance reflected favorable merchandise margins, higher gas profitability and expense savings that exceeded plan. We are very excited about our positive sales momentum for the second quarter and first half of 2011. It is clear that our members are doing more of their weekly food shopping with us. And I believe that we have tremendous opportunities to further grow our business.”
As previously announced, net sales for the second quarter of 2011 increased by 11.0% to $2.98 billion and comparable club sales increased by 7.8%, including a contribution from sales of gasoline of 4.0%. Excluding the impact of gasoline, merchandise comparable club sales increased by 3.8%.
The Company provided the following additional information regarding comparable club sales for the second quarter (all comparisons are to the comparable, prior year period):
| • | Comparative Club Sales by Geographic Region |
| Thirteen Weeks Ended July 30, 2011 | ||||||||||||
| Comparable Club Sales |
Impact of Gasoline Sales |
Merchandise Comparable Club Sales |
||||||||||
| New England |
7.8 | % | 4.9 | % | 2.9 | % | ||||||
| Upstate New York |
10.9 | % | 6.2 | % | 4.7 | % | ||||||
| Metro New York |
4.8 | % | 1.3 | % | 3.5 | % | ||||||
| Mid Atlantic |
7.2 | % | 3.7 | % | 3.5 | % | ||||||
| Southeast |
11.4 | % | 5.9 | % | 5.5 | % | ||||||
|
|
|
|
|
|
|
|||||||
| Total chain |
7.8 | % | 4.0 | % | 3.8 | % | ||||||
|
|
|
|
|
|
|
|||||||
| • | Competition and cannibalization had an estimated negative impact of approximately 1.6%. |
| • | Excluding the impact of gasoline, member traffic was approximately flat, following a 4% increase in last year’s second quarter. The average transaction amount increased by approximately 3% following a 1% decline in last year’s second quarter. |
-More-
BJ’s Wholesale Club, Inc.
August 17, 2011
Page 2
| • | Sales of food increased by approximately 5% for the second year in a row, driven primarily by an 8% increase in perishable foods. On a two-year stacked basis, comparable club sales of perishable foods increased by approximately 16%. General merchandise sales increased by approximately 1% for the second quarter, following a slight decrease in last year’s second quarter. |
| • | Departments with the strongest comparable club sales increases included beauty care, computer equipment, coffee, cookies, dairy, deli, lawn & garden, meat, prepared foods, produce, salty snacks and summer seasonal. Departments with weaker sales versus last year included books, televisions, toys and video games. |
Other Information
BJ’s management is not conducting a conference call in connection with its Q-2 earnings announcement. As announced on June 29, 2011, BJ’s Wholesale Club has entered into a definitive agreement to be acquired by Leonard Green & Partners and CVC Capital Partners.
About BJ’s Wholesale Club
BJ’s introduced the wholesale club concept to New England in 1984, and has since expanded to become a leading warehouse chain in the eastern United States. The Company currently operates 190 BJ’s Wholesale Clubs in 15 states. BJ’s press releases and filings with the SEC are available on the Internet at www.bjsinvestor.com.
-See Attached Financial Tables -
BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries
STATEMENTS OF INCOME (Unaudited)
(Dollars in Thousands Except Per Share Amounts)
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
| July 30, 2011 |
July 31, 2010 |
July 30, 2011 |
July 31, 2010 |
|||||||||||||
| Net sales |
$ | 2,984,726 | $ | 2,689,005 | $ | 5,753,996 | $ | 5,205,381 | ||||||||
| Membership fees |
51,824 | 47,503 | 102,264 | 93,896 | ||||||||||||
| Other revenues |
11,865 | 11,819 | 21,129 | 20,868 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
3,048,415 | 2,748,327 | 5,877,389 | 5,320,145 | ||||||||||||
| Cost of sales, including buying and occupancy costs |
2,719,533 | 2,450,900 | 5,254,613 | 4,749,055 | ||||||||||||
| Selling, general and administrative expenses |
250,837 | 232,736 | 487,748 | 458,915 | ||||||||||||
| Preopening expenses |
333 | 2,970 | 343 | 4,924 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
77,712 | 61,721 | 134,685 | 107,251 | ||||||||||||
| Interest expense, net |
(388 | ) | (372 | ) | (783 | ) | (599 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from continuing operations before income taxes |
77,324 | 61,349 | 133,902 | 106,652 | ||||||||||||
| Provision for income taxes |
31,043 | 24,710 | 53,416 | 43,149 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from continuing operations |
46,281 | 36,639 | 80,486 | 63,503 | ||||||||||||
| Loss from discontinued operations, net of income taxes |
(568 | ) | (859 | ) | (1,107 | ) | (1,634 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
$ | 45,713 | $ | 35,780 | $ | 79,379 | $ | 61,869 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Basic earnings per common share: |
||||||||||||||||
| Income from continuing operations |
$ | 0.86 | $ | 0.70 | $ | 1.51 | $ | 1.21 | ||||||||
| Loss from discontinued operations |
(0.01 | ) | (0.02 | ) | (0.02 | ) | (0.03 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
$ | 0.85 | $ | 0.68 | $ | 1.49 | $ | 1.18 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted earnings per common share: |
||||||||||||||||
| Income from continuing operations |
$ | 0.85 | $ | 0.68 | $ | 1.49 | $ | 1.19 | ||||||||
| Loss from discontinued operations |
(0.01 | ) | (0.01 | ) | (0.02 | ) | (0.03 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
$ | 0.84 | $ | 0.67 | $ | 1.47 | $ | 1.16 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Number of common shares for earnings per share computations: |
||||||||||||||||
| Basic |
53,482,324 | 52,684,819 | 53,290,934 | 52,334,684 | ||||||||||||
| Diluted |
54,195,680 | 53,673,063 | 54,124,056 | 53,519,954 | ||||||||||||
| BJ’s clubs in operation - end of period |
190 | 189 | ||||||||||||||
BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries
CONDENSED BALANCE SHEETS (Unaudited)
(Dollars in Thousands)
| July 30, 2011 |
July 31, 2010 |
|||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 286,026 | $ | 85,065 | ||||
| Accounts receivable |
148,227 | 132,114 | ||||||
| Merchandise inventories |
969,448 | 924,226 | ||||||
| Current deferred income taxes |
17,169 | 16,902 | ||||||
| Prepaid expenses |
44,354 | 34,660 | ||||||
|
|
|
|
|
|||||
| Total current assets |
1,465,224 | 1,192,967 | ||||||
| Property, net of depreciation |
999,741 | 977,989 | ||||||
| Deferred income taxes |
— | 10,185 | ||||||
| Other assets |
22,914 | 25,363 | ||||||
|
|
|
|
|
|||||
| TOTAL ASSETS |
$ | 2,487,879 | $ | 2,206,504 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Current installments of long-term debt |
$ | 220 | $ | 630 | ||||
| Accounts payable |
709,293 | 660,281 | ||||||
| Closed store obligations |
6,677 | 1,664 | ||||||
| Accrued expenses and other current liabilities |
323,988 | 293,260 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
1,040,178 | 955,835 | ||||||
| Long-term debt, less portion due within one year |
— | 220 | ||||||
| Noncurrent closed store obligations |
28,787 | 7,620 | ||||||
| Deferred income taxes |
23,332 | — | ||||||
| Other noncurrent liabilities |
157,810 | 140,393 | ||||||
| Stockholders’ equity |
1,237,772 | 1,102,436 | ||||||
|
|
|
|
|
|||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ | 2,487,879 | $ | 2,206,504 | ||||
|
|
|
|
|
|||||
BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in Thousands)
| Twenty-Six Weeks Ended | ||||||||
| July 30, 2011 |
July 31, 2010 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
| Net income |
$ | 79,379 | $ | 61,869 | ||||
| Provision for closing and impairment costs |
2,418 | 2,324 | ||||||
| Depreciation and amortization |
66,940 | 61,298 | ||||||
| Stock-based compensation expense |
8,764 | 10,039 | ||||||
| Deferred income taxes |
16,124 | 1,927 | ||||||
| Decrease in merchandise inventories, net of accounts payable |
68,545 | 6,374 | ||||||
| Decrease in closed store obligations |
(13,026 | ) | (956 | ) | ||||
| Other |
14,517 | (40,099 | ) | |||||
|
|
|
|
|
|||||
| Net cash provided by operating activities |
243,661 | 102,776 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
| Property additions |
(63,109 | ) | (76,439 | ) | ||||
| Property disposals |
105 | 43 | ||||||
| Purchase of marketable securities |
— | (898 | ) | |||||
| Sale of marketable securities |
— | 1,159 | ||||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(63,004 | ) | (76,135 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
| Excess tax benefit from stock-based awards |
2,194 | 1,469 | ||||||
| Purchase of treasury stock |
(6,820 | ) | (18,857 | ) | ||||
| Proceeds from stock options exercised |
8,965 | 17,358 | ||||||
| Repayment of long-term debt |
(320 | ) | (298 | ) | ||||
|
|
|
|
|
|||||
| Net cash provided by (used in) financing activities |
4,019 | (328 | ) | |||||
|
|
|
|
|
|||||
| Net increase in cash and cash equivalents |
$ | 184,676 | $ | 26,313 | ||||
|
|
|
|
|
|||||