Ollie’s Bargain Outlet Holdings, Inc. Reports First Quarter Fiscal 2021 Financial Results
Total Net Sales Increase 29.5%
Comparable Store Sales Increase 18.8%
Diluted EPS Increases 64.7% to
Adjusted Diluted EPS Increases 63.3% to
First Quarter Summary:
- Total net sales increased 29.5% to
$452.5 million . - Comparable store sales increased 18.8%.
- The Company opened 11 new stores, including two relocations, ending the quarter with 397 stores in 25 states, a year-over-year increase in store count of 10.3%.
- Operating income increased 65.7% to
$71.2 million and operating margin increased 340 basis points to 15.7%. - Net income increased 65.1% to
$55.2 million and net income per diluted share increased 64.7% to$0.84 . - Adjusted net income(1) increased 64.9% to
$53.1 million and adjusted net income per diluted share(1) increased 63.3% to$0.80 . - Adjusted EBITDA(1) increased 59.2% to
$79.2 million and adjusted EBITDA margin(1) increased 330 basis points to 17.5%.
“After the onset of COVID last year, our stores remained open to serve our customers and we experienced record sales and profits, delivering comparable stores sales growth of 43% in the second quarter of 2020. Our current quarter-to-date comparable store sales are tracking ahead of our expectations and we are very excited about the momentum in our business. Following May, which had by far the highest monthly comparable sales increase of the prior-year second quarter, comparisons to last year ease, furthering our confidence. Our deal flow remains as robust as ever, and we are well-positioned to capture opportunities in the marketplace as we leverage our industry expertise and strong liquidity position. Based on our proven business model, our strong financial position, and the opportunities in front of us, we are bullish on our ability to deliver profitable growth as we expand our store base and execute our long-term growth algorithm into the future,”
(1) As used throughout this release, adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA and adjusted EBITDA margin are not measures recognized under
Fiscal 2021 Guidance
The Company continues to monitor the impact of the COVID-19 pandemic on the broader economy and, more specifically, its associates, customers, business partners and supply chain. Given the vast uncertainties regarding the pace of economic recovery and consumer demand amidst the ongoing pandemic, the Company is continuing its practice of not providing guidance for fiscal 2021.
First Quarter Results
Net sales increased 29.5% to
Gross profit increased 30.1% to
Selling, general and administrative expenses increased 16.3% to
Pre-opening expenses related to new stores decreased to
Operating income increased 65.7% to
Net income increased 65.1% to
Adjusted EBITDA(1) increased 59.2% to
Balance Sheet and Cash Flow Highlights
The Company's cash and cash equivalents balance as of the end of the first quarter of fiscal 2021 was
Inventories as of the end of the first quarter of fiscal 2021 increased 3.3% to
Capital expenditures in the first quarter of fiscal 2021 totaled
During the first quarter of fiscal 2021, the Company invested
Conference Call Information
A conference call to discuss first quarter fiscal 2021 financial results is scheduled for today,
About Ollie’s
We are a highly differentiated and fast growing, extreme value retailer of brand name merchandise at drastically reduced prices. We are known for our assortment of merchandise offered as Good Stuff Cheap®. We offer name brand products, Real Brands! Real Bargains!®, in every department, including housewares, food, books and stationery, bed and bath, floor coverings, toys, health and beauty aids and other categories. We currently operate 405 stores in 28 states throughout half of
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the
Investor Contact:
ICR
646-277-1214
Jean.Fontana@icrinc.com
Media Contact:
Senior Vice President – Marketing & Advertising
717-657-2300
tkuypers@ollies.us
Ollie’s
Condensed Consolidated Statements of Income
(In thousands except for per share amounts)
(Unaudited)
Thirteen weeks ended | ||||||||
2021 | 2020 | |||||||
Condensed consolidated statements of income data: | ||||||||
Net sales | $ | 452,492 | $ | 349,363 | ||||
Cost of sales | 269,882 | 208,997 | ||||||
Gross profit | 182,610 | 140,366 | ||||||
Selling, general and administrative expenses | 104,370 | 89,720 | ||||||
Depreciation and amortization expenses | 4,484 | 3,944 | ||||||
Pre-opening expenses | 2,535 | 3,722 | ||||||
Operating income | 71,221 | 42,980 | ||||||
Interest income, net | (25 | ) | (83 | ) | ||||
Income before income taxes | 71,246 | 43,063 | ||||||
Income tax expense | 16,026 | 9,607 | ||||||
Net income | $ | 55,220 | $ | 33,456 | ||||
Earnings per common share: | ||||||||
Basic | $ | 0.84 | $ | 0.53 | ||||
Diluted | $ | 0.84 | $ | 0.51 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 65,503 | 63,061 | ||||||
Diluted | 66,119 | 65,242 | ||||||
Percentage of net sales (1): | ||||||||
Net sales | 100.0 | % | 100.0 | % | ||||
Cost of sales | 59.6 | 59.8 | ||||||
Gross profit | 40.4 | 40.2 | ||||||
Selling, general and administrative expenses | 23.1 | 25.7 | ||||||
Depreciation and amortization expenses | 1.0 | 1.1 | ||||||
Pre-opening expenses | 0.6 | 1.1 | ||||||
Operating income | 15.7 | 12.3 | ||||||
Interest income, net | — | — | ||||||
Income before income taxes | 15.7 | 12.3 | ||||||
Income tax expense | 3.5 | 2.7 | ||||||
Net income | 12.2 | % | 9.6 | % | ||||
(1) Components may not add to totals due to rounding. |
Ollie’s
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
Assets | 2021 | 2020 | ||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 472,167 | $ | 119,351 | ||||
Inventories | 355,193 | 343,755 | ||||||
Accounts receivable | 363 | 4,146 | ||||||
Prepaid expenses and other assets | 5,526 | 5,184 | ||||||
Total current assets | 833,249 | 472,436 | ||||||
Property and equipment, net | 142,354 | 135,214 | ||||||
Operating lease right-of-use assets | 390,111 | 357,553 | ||||||
444,850 | 444,850 | |||||||
Trade name | 230,559 | 230,559 | ||||||
Other assets | 2,368 | 2,499 | ||||||
Total assets | $ | 2,043,491 | $ | 1,643,111 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 327 | $ | 300 | ||||
Accounts payable | 90,378 | 56,642 | ||||||
Income taxes payable | 26,051 | 13,811 | ||||||
Current portion of operating lease liabilities | 61,589 | 61,002 | ||||||
Accrued expenses and other | 76,675 | 58,666 | ||||||
Total current liabilities | 255,020 | 190,421 | ||||||
Revolving credit facility | - | - | ||||||
Long-term debt | 610 | 576 | ||||||
Deferred income taxes | 65,817 | 59,194 | ||||||
Long-term operating lease liabilities | 335,398 | 298,736 | ||||||
Other long-term liabilities | 4 | 5 | ||||||
Total liabilities | 656,849 | 548,932 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 66 | 64 | ||||||
Additional paid-in capital | 655,069 | 617,188 | ||||||
Retained earnings | 781,487 | 517,027 | ||||||
(49,980 | ) | (40,100 | ) | |||||
Total stockholders’ equity | 1,386,642 | 1,094,179 | ||||||
Total liabilities and stockholders’ equity | $ | 2,043,491 | $ | 1,643,111 | ||||
Ollie’s
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Thirteen weeks ended | ||||||||
2021 | 2020 | |||||||
Net cash provided by operating activities | $ | 40,123 | $ | 41,370 | ||||
Net cash used in investing activities | (9,412 | ) | (12,374 | ) | ||||
Net cash (used in) provided by financing activities | (5,670 | ) | 405 | |||||
Net increase in cash and cash equivalents | 25,041 | 29,401 | ||||||
Cash and cash equivalents at the beginning of the period | 447,126 | 89,950 | ||||||
Cash and cash equivalents at the end of the period | $ | 472,167 | $ | 119,351 | ||||
Ollie’s
Supplemental Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(Dollars in thousands)
(Unaudited)
The Company reports its financial results in accordance with GAAP. We have included the non-GAAP measures of EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted share in this press release as these are key measures used by our management and our board of directors to evaluate our operating performance and the effectiveness of our business strategies, make budgeting decisions, and evaluate compensation decisions. Management believes it is useful to investors and analysts to evaluate these non-GAAP measures on the same basis as management uses to evaluate the Company’s operating results. We believe that excluding items that may not be indicative of, or are unrelated to, our core operating results, and that may vary in frequency or magnitude from net income and net income per diluted share, enhances the comparability of our results and provides a better baseline for analyzing trends in our business.
The tables below reconcile the most directly comparable GAAP measure to non-GAAP financial measures: net income to adjusted net income, net income per diluted share to adjusted net income per diluted share, and net income to EBITDA and adjusted EBITDA.
Adjusted net income and adjusted net income per diluted share exclude excess tax benefits related to stock-based compensation, which may not occur with the same frequency or magnitude in future periods. We define EBITDA as net income before net interest income or expense, depreciation and amortization expenses and income taxes. Adjusted EBITDA represents EBITDA as further adjusted for non-cash stock-based compensation expense.
Non-GAAP financial measures should be viewed as supplementing, and not as an alternative to or substitute for, the Company’s financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the Company's financial position, results of operations and cash flows and should therefore be considered in assessing the Company's actual financial condition and performance. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies.
Ollie’s
Supplemental Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands except for per share amounts)
(Unaudited)
Reconciliation of GAAP net income to adjusted net income
Thirteen weeks ended | ||||||||
2021 | 2020 | |||||||
Net income | $ | 55,220 | $ | 33,456 | ||||
Excess tax benefits related to stock-based compensation(1) | (2,095 | ) | (1,247 | ) | ||||
Adjusted net income | $ | 53,125 | $ | 32,209 | ||||
(1) Amount represents the impact from the recognition of excess tax benefits pursuant to Accounting Standards Update 2016-09, Stock Compensation.
Reconciliation of GAAP net income per diluted share to adjusted net income per diluted share
Thirteen weeks ended | ||||||||
2021 | 2020 | |||||||
Net income per diluted share | $ | 0.84 | $ | 0.51 | ||||
Adjustments as noted above, per diluted share: | ||||||||
Excess tax benefits related to stock-based compensation | (0.03 | ) | (0.02 | ) | ||||
Adjusted net income per diluted share(1) | $ | 0.80 | $ | 0.49 | ||||
Diluted weighted-average common shares outstanding | 66,119 | 65,242 | ||||||
(1)Totals may not foot due to rounding. |
Ollie’s
Supplemental Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(Dollars in thousands)
(Unaudited)
Reconciliation of GAAP net income to EBITDA and adjusted EBITDA
Thirteen weeks ended |
||||||||
2021 | 2020 | |||||||
Net income | $ | 55,220 | $ | 33,456 | ||||
Interest income, net | (25 | ) | (83 | ) | ||||
Depreciation and amortization expenses | 5,918 | 5,410 | ||||||
Income tax expense | 16,026 | 9,607 | ||||||
EBITDA | 77,139 | 48,390 | ||||||
Non-cash stock-based compensation expense | 2,020 | 1,319 | ||||||
Adjusted EBITDA | $ | 79,159 | $ | 49,709 | ||||
Key Statistics
Thirteen weeks ended | ||||||||
2021 | 2020 | |||||||
Number of stores open at beginning of period | 388 | 345 | ||||||
Number of new stores | 11 | 17 | ||||||
Number of closed stores | (2 | ) | (2 | ) | ||||
Number of stores open at end of period | 397 | 360 | ||||||
Average net sales per store (1) | $ | 1,150 | $ | 986 | ||||
Comparable stores sales change | 18.8% | (3.3)% | ||||||
Comparable store count – end of period | 341 | 301 | ||||||
(1) Average net sales per store represents the weighted average of total net weekly sales divided by the number of stores open at the end of each week for the respective periods presented.
Source: Ollie's Bargain Outlet Holdings, Inc.