Ollie’s Bargain Outlet Holdings, Inc.
|
(Exact name of registrant as specified in its charter)
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Delaware
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(State or other jurisdiction of incorporation)
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001-37501
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80-0848819
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(Commission File Number)
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(IRS Employer Identification No.)
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6295 Allentown Boulevard
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||
Suite 1
|
||
Harrisburg, Pennsylvania
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17112
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(Address of principal executive offices)
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(Zip Code)
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☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 |
Results of Operations and Financial Condition.
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Item 7.01 |
Regulation FD Disclosure
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Item 9.01 |
Financial Statements and Exhibits.
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(d)
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Exhibits. The following exhibits are filed with this report:
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Exhibit No.
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Description
|
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99.1
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Press Release issued on March 28, 2017 of Ollie’s Bargain Outlet Holdings, Inc.
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OLLIE’S BARGAIN OUTLET HOLDINGS, INC.
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|||
By:
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/s/ John Swygert
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||
Name:
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John Swygert | ||
Title:
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Executive Vice President and Chief Financial Officer |
Exhibit No.
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Description
|
|
Press Release issued on March 28, 2017 of Ollie’s Bargain Outlet Holdings, Inc.
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· |
Total net sales increased 16.4% to $283.4 million;
|
· |
Comparable store sales increased 2.0%;
|
· |
The Company opened two new stores and ended the year with a total of 234 stores in 19 states, an increase of 15.3% year over year;
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· |
Operating income increased 21.8% to $40.6 million;
|
· |
Net income increased 52.0% to $24.4 million and net income per diluted share increased 50.0% to $0.39;
|
· |
Adjusted net income(1) increased 30.1% to $24.4 million and adjusted net income per diluted share(1) increased 25.8% to $0.39; and
|
· |
Adjusted EBITDA(1) increased 21.6% to $45.2 million.
|
· |
Total net sales increased 16.8% to $890.3 million;
|
· |
Comparable store sales increased 3.2%;
|
· |
Operating income increased 28.4% to $102.2 million;
|
· |
Net income increased 66.8% to $59.8 million and net income per diluted share increased 50.0% to $0.96;
|
· |
Adjusted net income(1) increased 51.2% to $60.8 million and adjusted net income per diluted share(1) increased 34.7% to $0.97; and
|
· |
Adjusted EBITDA(1) increased 28.8% to $121.1 million.
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(1) |
Adjusted net income, adjusted net income per diluted share and adjusted EBITDA are not measures recognized under generally accepted accounting principles (“GAAP”). Please see the reconciliation of GAAP to non-GAAP tables included later in this release.
|
(1) |
Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA are not measures recognized under GAAP. Please see the reconciliation of GAAP to non-GAAP tables included later in this release.
|
· |
Total net sales of $1,025 million to $1,035 million;
|
· |
Comparable store sales growth of 1.0% to 2.0%;
|
· |
The opening of 33 to 35 new stores and no planned closures;
|
· |
Operating income of $121.5 million to $124.0 million;
|
· |
Net income of $73.0 million to $74.5 million;
|
· |
Net income per diluted share of $1.12 to $1.15;
|
· |
Estimated weighted diluted average shares outstanding of 64.7 million; and
|
· |
Capital expenditures of $18 million to $20 million.
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Thirteen weeks ended
|
Fiscal year ended
|
|||||||||||||||
January 28,
2017
|
January 30,
2016
|
January 28,
2017
|
January 30,
2016
|
|||||||||||||
Net sales
|
$
|
283,355
|
$
|
243,402
|
$
|
890,315
|
$
|
762,370
|
||||||||
Cost of sales
|
169,963
|
144,563
|
529,904
|
459,506
|
||||||||||||
Gross profit
|
113,392
|
98,839
|
360,411
|
302,864
|
||||||||||||
Selling, general and administrative expenses
|
69,823
|
62,541
|
242,891
|
209,783
|
||||||||||||
Depreciation and amortization expenses
|
2,255
|
1,907
|
8,443
|
7,172
|
||||||||||||
Pre-opening expenses
|
731
|
1,085
|
6,883
|
6,337
|
||||||||||||
Operating income
|
40,583
|
33,306
|
102,194
|
79,572
|
||||||||||||
Interest expense, net
|
1,395
|
3,130
|
5,935
|
15,416
|
||||||||||||
Loss on extinguishment of debt
|
-
|
4,359
|
-
|
6,710
|
||||||||||||
Income before income taxes
|
39,188
|
25,817
|
96,259
|
57,446
|
||||||||||||
Income tax expense
|
14,768
|
9,753
|
36,495
|
21,607
|
||||||||||||
Net income
|
$
|
24,420
|
$
|
16,064
|
$
|
59,764
|
$
|
35,839
|
||||||||
Earnings per common share:
|
||||||||||||||||
Basic
|
$
|
0.40
|
$
|
0.27
|
$
|
0.99
|
$
|
0.67
|
||||||||
Diluted
|
$
|
0.39
|
$
|
0.26
|
$
|
0.96
|
$
|
0.64
|
||||||||
Weighted average common shares outstanding:
|
||||||||||||||||
Basic
|
60,623
|
58,562
|
60,160
|
53,835
|
||||||||||||
Diluted
|
62,918
|
60,843
|
62,415
|
55,796
|
||||||||||||
Percentage of net sales (1):
|
||||||||||||||||
Net sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||||||
Cost of sales
|
60.0
|
59.4
|
59.5
|
60.3
|
||||||||||||
Gross profit
|
40.0
|
40.6
|
40.5
|
39.7
|
||||||||||||
Selling, general and administrative expenses
|
24.6
|
25.7
|
27.3
|
27.5
|
||||||||||||
Depreciation and amortization expenses
|
0.8
|
0.8
|
0.9
|
0.9
|
||||||||||||
Pre-opening expenses
|
0.3
|
0.4
|
0.8
|
0.8
|
||||||||||||
Operating income
|
14.3
|
13.7
|
11.5
|
10.4
|
||||||||||||
Interest expense, net
|
0.5
|
1.3
|
0.7
|
2.0
|
||||||||||||
Loss on extinguishment of debt
|
—
|
1.8
|
—
|
0.9
|
||||||||||||
Income before income taxes
|
13.8
|
10.6
|
10.8
|
7.5
|
||||||||||||
Income tax expense
|
5.2
|
4.0
|
4.1
|
2.8
|
||||||||||||
Net income
|
8.6
|
%
|
6.6
|
%
|
6.7
|
%
|
4.7
|
%
|
(1) |
Components may not add to totals due to rounding.
|
Assets
|
January 28,
2017
|
January 30,
2016
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
98,683
|
$
|
30,259
|
||||
Inventories
|
210,107
|
190,608
|
||||||
Accounts receivable
|
301
|
183
|
||||||
Prepaid expenses and other assets
|
3,739
|
2,756
|
||||||
Total current assets
|
312,830
|
223,806
|
||||||
Property and equipment, net
|
46,333
|
39,292
|
||||||
Goodwill
|
444,850
|
444,850
|
||||||
Trade name and other intangible assets, net
|
232,977
|
233,354
|
||||||
Other assets
|
2,385
|
2,520
|
||||||
Total assets
|
$
|
1,039,375
|
$
|
943,822
|
||||
Liabilities and Stockholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
5,077
|
$
|
5,018
|
||||
Accounts payable
|
50,448
|
52,075
|
||||||
Income taxes payable
|
4,548
|
4,102
|
||||||
Accrued expenses
|
44,748
|
35,573
|
||||||
Total current liabilities
|
104,821
|
96,768
|
||||||
Revolving credit facility
|
-
|
-
|
||||||
Long-term debt
|
188,923
|
193,433
|
||||||
Deferred income taxes
|
89,224
|
87,171
|
||||||
Other long-term liabilities
|
5,146
|
4,501
|
||||||
Total liabilities
|
388,114
|
381,873
|
||||||
Stockholders’ equity:
|
||||||||
Common stock
|
61
|
59
|
||||||
Additional paid-in capital
|
565,861
|
536,315
|
||||||
Retained earnings
|
85,425
|
25,661
|
||||||
Treasury - common stock
|
(86
|
)
|
(86
|
)
|
||||
Total stockholders’ equity
|
651,261
|
561,949
|
||||||
Total liabilities and stockholders’ equity
|
$
|
1,039,375
|
$
|
943,822
|
Thirteen weeks ended
|
Fiscal year ended
|
|||||||||||||||
January 28,
2017
|
January 30,
2016
|
January 28,
2017
|
January 30,
2016
|
|||||||||||||
Net cash provided by operating activities
|
$
|
62,927
|
$
|
61,231
|
$
|
67,088
|
$
|
45,848
|
||||||||
Net cash used in investing activities
|
(2,205
|
)
|
(3,443
|
)
|
(16,423
|
)
|
(14,337
|
)
|
||||||||
Net cash provided by (used in) financing activities
|
2,000
|
(31,489
|
)
|
17,759
|
(23,204
|
)
|
||||||||||
Net increase in cash and cash equivalents
|
62,722
|
26,299
|
68,424
|
8,307
|
||||||||||||
Cash and cash equivalents at the beginning of the period
|
35,961
|
3,960
|
30,259
|
21,952
|
||||||||||||
Cash and cash equivalents at the end of the period
|
$
|
98,683
|
$
|
30,259
|
$
|
98,683
|
$
|
30,259
|
Thirteen weeks ended
|
Fiscal year ended
|
|||||||||||||||
January 28,
2017
|
January 30,
2016
|
January 28,
2017
|
January 30,
2016
|
|||||||||||||
Operating income
|
$
|
40,583
|
$
|
33,306
|
$
|
102,194
|
$
|
79,572
|
||||||||
Transaction related expenses
|
-
|
-
|
1,736
|
322
|
||||||||||||
Debt financing expenses
|
-
|
89
|
-
|
89
|
||||||||||||
Adjusted operating income
|
$
|
40,583
|
$
|
33,395
|
$
|
103,930
|
$
|
79,983
|
Thirteen weeks ended
|
Fiscal year ended
|
|||||||||||||||
January 28,
2017
|
January 30,
2016
|
January 28,
2017
|
January 30,
2016
|
|||||||||||||
Net income
|
$
|
24,420
|
$
|
16,064
|
$
|
59,764
|
$
|
35,839
|
||||||||
Transaction related expenses
|
-
|
-
|
1,736
|
322
|
||||||||||||
Loss on extinguishment of debt
|
-
|
4,359
|
-
|
6,710
|
||||||||||||
Adjustment to provision for income taxes (1)
|
-
|
(1,646
|
)
|
(672
|
)
|
(2,632
|
)
|
|||||||||
Adjusted net income
|
$
|
24,420
|
$
|
18,777
|
$
|
60,828
|
$
|
40,239
|
(1) |
The effective tax rate used for the adjustment to provision for income taxes was the effective tax rate in the quarter the related costs were incurred, which was 37.8% for the thirteen weeks ended January 30, 2016, and 38.7% and 37.4% for the fiscal years ended January 28, 2017 and January 30, 2016, respectively. The adjustment to the provision for income taxes includes the tax effect for the transaction related expenses and loss on extinguishment of debt.
|
Thirteen weeks ended
|
Fiscal year ended
|
|||||||||||||||
January 28,
2017
|
January 30,
2016
|
January 28,
2017
|
January 30,
2016
|
|||||||||||||
Net income per share, diluted
|
$
|
0.39
|
$
|
0.26
|
$
|
0.96
|
$
|
0.64
|
||||||||
Adjustments
|
-
|
0.05
|
0.02
|
0.08
|
||||||||||||
Adjusted net income per share, diluted (1)
|
$
|
0.39
|
$
|
0.32
|
$
|
0.97
|
$
|
0.72
|
||||||||
Weighted-average common shares outstanding, diluted
|
62,918
|
60,843
|
62,415
|
55,796
|
(1) |
Totals may not foot due to rounding.
|
Thirteen weeks ended
|
Fiscal year ended
|
|||||||||||||||
January 28,
2017
|
January 30,
2016
|
January 28,
2017
|
January 30,
2016
|
|||||||||||||
Net income
|
$
|
24,420
|
$
|
16,064
|
$
|
59,764
|
$
|
35,839
|
||||||||
Interest expense, net
|
1,395
|
3,130
|
5,935
|
15,416
|
||||||||||||
Loss on extinguishment of debt
|
-
|
4,359
|
-
|
6,710
|
||||||||||||
Depreciation and amortization expenses
|
2,898
|
2,440
|
10,668
|
9,342
|
||||||||||||
Income tax expense
|
14,768
|
9,753
|
36,495
|
21,607
|
||||||||||||
EBITDA
|
43,481
|
35,746
|
112,862
|
88,914
|
||||||||||||
Non-cash stock based compensation expense
|
1,706
|
1,368
|
6,685
|
5,035
|
||||||||||||
Non-cash purchase accounting items
|
(22
|
)
|
(52
|
)
|
(134
|
)
|
(284
|
)
|
||||||||
Transaction related expenses
|
-
|
-
|
1,736
|
322
|
||||||||||||
Debt financing expenses
|
-
|
89
|
-
|
89
|
||||||||||||
Adjusted EBITDA
|
$
|
45,165
|
$
|
37,151
|
$
|
121,149
|
$
|
94,076
|
Thirteen weeks ended
|
Fiscal year ended
|
|||||||||||||||
January 28,
2017
|
January 30,
2016
|
January 28,
2017
|
January 30,
2016
|
|||||||||||||
Number of stores - Beginning of period
|
232
|
200
|
203
|
176
|
||||||||||||
New stores
|
2
|
3
|
31
|
28
|
||||||||||||
Closed stores
|
-
|
-
|
-
|
(1
|
)
|
|||||||||||
Number of stores - End of period
|
234
|
203
|
234
|
203
|
||||||||||||
Average net sales per store (in thousands) (1)
|
$
|
1,211
|
$
|
1,205
|
$
|
4,050
|
$
|
4,007
|
||||||||
Comparable stores sales change
|
2.0
|
%
|
5.0
|
%
|
3.2
|
%
|
6.0
|
%
|
||||||||
Comparable store count – end of period
|
194
|
169
|
194
|
169
|
(1) |
Average net sales per store represents the weighted average of total net sales divided by the number of stores open, in each case at the end of each week in a fiscal year or fiscal quarter.
|