Ollie’s Bargain Outlet Holdings, Inc. |
(Exact name of registrant as specified in its charter) |
Delaware |
(State or other jurisdiction of incorporation) |
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
Suite 1
Harrisburg, Pennsylvania
(Address of principal executive offices)
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17112
(Zip Code)
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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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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☐
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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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Exhibit No.
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Description
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99.1
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Press Release issued on December 4, 2018 of Ollie’s Bargain Outlet Holdings, Inc.
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OLLIE’S BARGAIN OUTLET HOLDINGS, INC. | ||
By:
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/s/ Jay Stasz
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Name: Jay Stasz
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||
Title: Senior Vice President and
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||
Chief Financial Officer
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Exhibit No.
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Description
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Press Release issued on December 4, 2018 of Ollie’s Bargain Outlet Holdings, Inc.
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· |
Total net sales increased 19.1% to $283.6 million.
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· |
Comparable store sales increased 4.6% on top of a 2.1% increase in the third quarter last year.
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· |
Store count increased 12.1% year-over-year with the opening of 17 stores, including one relocation, totaling 297 stores in 23 states at period-end.
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· |
Operating income increased 21.0% to $29.3 million and operating margin increased 10 basis points to 10.3%.
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· |
Net income increased 31.6% to $24.8 million and net income per diluted share increased 31.0% to $0.38.
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· |
Adjusted net income(1) increased
47.1% to $20.9 million and adjusted net income per diluted share(1) increased 45.5% to $0.32.
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·
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Adjusted EBITDA(1) increased 18.9% to $34.7 million.
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(1) |
As used throughout this release, adjusted net income, adjusted net income per diluted share, EBITDA and adjusted EBITDA are not measures recognized under U.S. generally
accepted accounting principles (“GAAP”). Please see the accompanying financial tables which reconcile these non-GAAP measures to GAAP.
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· |
Total net sales of $1.226 billion to $1.231 billion;
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· |
Comparable store sales growth of 3.0% to 3.5%;
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· |
The opening of 37 new stores, including the relocation of one store, and two closures;
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· |
Operating income of $155.0 million to $157.0 million;
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· |
Adjusted net income(2) of $115.0 million to $117.0 million and adjusted net income per diluted share(2) of $1.74 to $1.77, both of which exclude
excess tax benefits related to stock-based compensation and the after-tax loss on extinguishment of debt;
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· |
An effective tax rate of 26.0%, which excludes excess tax benefits related to stock-based compensation;
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· |
Diluted weighted average shares outstanding of 66.0 million; and
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· |
Capital expenditures of $75.0 million to $80.0 million, largely reflecting the purchase of the former Toys “R” Us properties and land for the Company’s new distribution
center.
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(2)
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The guidance ranges as provided for adjusted net income and adjusted net income per diluted share exclude the after-tax loss on extinguishment of
debt and excess tax benefits related to stock-based compensation reported for the 39-weeks ended November 3, 2018 as well as any future related estimates as the Company cannot predict such estimates without unreasonable effort.
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Thirteen weeks ended
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Thirty-nine weeks ended
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|||||||||||||||
November 3,
2018
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October 28,
2017
|
November 3,
2018
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October 28,
2017
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|||||||||||||
Condensed consolidated
statements of income data:
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||||||||||||||||
Net sales
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$
|
283,606
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$
|
238,116
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$
|
847,443
|
$
|
720,363
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||||||||
Cost of sales
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168,184
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140,127
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506,521
|
429,213
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||||||||||||
Gross profit
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115,422
|
97,989
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340,922
|
291,150
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||||||||||||
Selling, general and administrative expenses
|
78,440
|
68,124
|
223,794
|
195,633
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||||||||||||
Depreciation and amortization expenses
|
2,914
|
2,503
|
8,531
|
7,150
|
||||||||||||
Pre-opening expenses
|
4,779
|
3,152
|
8,460
|
7,005
|
||||||||||||
Operating income
|
29,289
|
24,210
|
100,137
|
81,362
|
||||||||||||
Interest expense, net
|
372
|
1,143
|
1,188
|
3,601
|
||||||||||||
Loss on extinguishment of debt
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-
|
-
|
100
|
397
|
||||||||||||
Income before income taxes
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28,917
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23,067
|
98,849
|
77,364
|
||||||||||||
Income tax expense
|
4,100
|
4,205
|
13,730
|
19,824
|
||||||||||||
Net income
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$
|
24,817
|
$
|
18,862
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$
|
85,119
|
$
|
57,540
|
||||||||
Earnings per common share:
|
||||||||||||||||
Basic
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$
|
0.40
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$
|
0.31
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$
|
1.36
|
$
|
0.94
|
||||||||
Diluted
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$
|
0.38
|
$
|
0.29
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$
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1.29
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$
|
0.89
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||||||||
Weighted average common shares outstanding:
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||||||||||||||||
Basic
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62,747
|
61,488
|
62,452
|
61,187
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||||||||||||
Diluted
|
66,095
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65,102
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65,861
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64,794
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||||||||||||
Percentage of net sales (1):
|
||||||||||||||||
Net sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||||||
Cost of sales
|
59.3
|
58.8
|
59.8
|
59.6
|
||||||||||||
Gross profit
|
40.7
|
41.2
|
40.2
|
40.4
|
||||||||||||
Selling, general and administrative expenses
|
27.7
|
28.6
|
26.4
|
27.2
|
||||||||||||
Depreciation and amortization expenses
|
1.0
|
1.1
|
1.0
|
1.0
|
||||||||||||
Pre-opening expenses
|
1.7
|
1.3
|
1.0
|
1.0
|
||||||||||||
Operating income
|
10.3
|
10.2
|
11.8
|
11.3
|
||||||||||||
Interest expense, net
|
0.1
|
0.5
|
0.1
|
0.5
|
||||||||||||
Loss on extinguishment of debt
|
—
|
—
|
0.0
|
0.1
|
||||||||||||
Income before income taxes
|
10.2
|
9.7
|
11.7
|
10.7
|
||||||||||||
Income tax expense
|
1.4
|
1.8
|
1.6
|
2.8
|
||||||||||||
Net income
|
8.8
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%
|
7.9
|
%
|
10.0
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%
|
8.0
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%
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Assets
|
November 3,
2018
|
October 28,
2017
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
736
|
$
|
42,164
|
||||
Inventories
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332,325
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284,331
|
||||||
Accounts receivable
|
2,401
|
990
|
||||||
Prepaid expenses and other assets
|
9,063
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3,882
|
||||||
Total current assets
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344,525
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331,367
|
||||||
Property and equipment, net
|
107,766
|
53,632
|
||||||
Goodwill
|
444,850
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444,850
|
||||||
Trade name and other intangible assets, net
|
232,388
|
232,723
|
||||||
Other assets
|
1,923
|
2,256
|
||||||
Total assets
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$
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1,131,452
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$
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1,064,828
|
||||
Liabilities and Stockholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
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$
|
10,186
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$
|
8,882
|
||||
Accounts payable
|
101,281
|
70,618
|
||||||
Income taxes payable
|
-
|
5,731
|
||||||
Accrued expenses and other
|
58,047
|
45,691
|
||||||
Total current liabilities
|
169,514
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130,922
|
||||||
Revolving credit facility
|
-
|
-
|
||||||
Long-term debt
|
9,042
|
117,120
|
||||||
Deferred income taxes
|
56,551
|
88,011
|
||||||
Other long-term liabilities
|
7,535
|
6,943
|
||||||
Total liabilities
|
242,642
|
342,996
|
||||||
Stockholders’ equity:
|
||||||||
Common stock
|
63
|
62
|
||||||
Additional paid-in capital
|
596,286
|
578,891
|
||||||
Retained earnings
|
292,547
|
142,965
|
||||||
Treasury - common stock
|
(86
|
)
|
(86
|
)
|
||||
Total stockholders’ equity
|
888,810
|
721,832
|
||||||
Total liabilities and stockholders’ equity
|
$
|
1,131,452
|
$
|
1,064,828
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Thirteen weeks ended
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Thirty-nine weeks ended
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|||||||||||||||
November 3,
2018
|
October 28,
2017
|
November 3,
2018
|
October 28,
2017
|
|||||||||||||
Net cash provided by operating activities
|
$
|
24,381
|
$
|
23,068
|
$
|
46,910
|
$
|
20,384
|
||||||||
Net cash used in investing activities
|
(52,452
|
)
|
(6,469
|
)
|
(62,650
|
)
|
(15,119
|
)
|
||||||||
Net cash provided by (used in) financing activities
|
(608
|
)
|
745
|
(22,758
|
)
|
(61,784
|
)
|
|||||||||
Net increase (decrease) in cash and cash equivalents
|
(28,679
|
)
|
17,344
|
(38,498
|
)
|
(56,519
|
)
|
|||||||||
Cash and cash equivalents at the beginning of the period
|
29,415
|
24,820
|
39,234
|
98,683
|
||||||||||||
Cash and cash equivalents at the end of the period
|
$
|
736
|
$
|
42,164
|
$
|
736
|
$
|
42,164
|
Thirteen weeks ended
|
Thirty-nine weeks ended
|
|||||||||||||||
November 3,
2018
|
October 28,
2017
|
November 3,
2018
|
October 28,
2017
|
|||||||||||||
Net income
|
$
|
24,817
|
$
|
18,862
|
$
|
85,119
|
$
|
57,540
|
||||||||
Loss on extinguishment of debt
|
-
|
-
|
100
|
397
|
||||||||||||
Adjustment to provision for income taxes (1)
|
-
|
-
|
(25
|
)
|
(153
|
)
|
||||||||||
Excess tax benefits related to stock-based compensation (2)
|
(3,924
|
)
|
(4,659
|
)
|
(11,652
|
)
|
(9,783
|
)
|
||||||||
Adjusted net income
|
$
|
20,893
|
$
|
14,203
|
$
|
73,542
|
$
|
48,001
|
(1) |
The effective tax rate used for the adjustment to the provision for income taxes was the normalized effective tax rate in the quarter in which the related costs (loss on
extinguishment of debt) were incurred.
|
(2) |
Amount represents the impact from the recognition of excess tax benefits pursuant to Accounting Standards Update 2016-09, Stock Compensation.
|
Thirteen weeks ended
|
Thirty-nine weeks ended
|
|||||||||||||||
November 3,
2018
|
October 28,
2017
|
November 3,
2018
|
October 28,
2017
|
|||||||||||||
Net income per diluted share
|
$
|
0.38
|
$
|
0.29
|
$
|
1.29
|
$
|
0.89
|
||||||||
Adjustments as noted above, per dilutive share:
|
||||||||||||||||
Loss on extinguishment of debt, net of taxes
|
-
|
-
|
0.00
|
0.00
|
||||||||||||
Excess tax benefits related to stock-based compensation
|
(0.06
|
)
|
(0.07
|
)
|
(0.18
|
)
|
(0.15
|
)
|
||||||||
Adjusted net income per diluted share (1)
|
$
|
0.32
|
$
|
0.22
|
$
|
1.12
|
$
|
0.74
|
||||||||
Diluted weighted-average common shares outstanding
|
66,095
|
65,102
|
65,861
|
64,794
|
Thirteen weeks ended
|
Thirty-nine weeks ended
|
|||||||||||||||
November 3,
2018
|
October 28,
2017
|
November 3,
2018
|
October 28,
2017
|
|||||||||||||
Net income
|
$
|
24,817
|
$
|
18,862
|
$
|
85,119
|
$
|
57,540
|
||||||||
Interest expense, net
|
372
|
1,143
|
1,188
|
3,601
|
||||||||||||
Loss on extinguishment of debt
|
-
|
-
|
100
|
397
|
||||||||||||
Depreciation and amortization expenses
|
3,568
|
3,123
|
10,458
|
8,961
|
||||||||||||
Income tax expense
|
4,100
|
4,205
|
13,730
|
19,824
|
||||||||||||
EBITDA
|
32,857
|
27,333
|
110,595
|
90,323
|
||||||||||||
Non-cash stock-based compensation expense
|
1,882
|
1,893
|
5,392
|
5,932
|
||||||||||||
Non-cash purchase accounting items
|
-
|
(17
|
)
|
(1
|
)
|
(59
|
)
|
|||||||||
Adjusted EBITDA
|
$
|
34,739
|
$
|
29,209
|
$
|
115,986
|
$
|
96,196
|
Thirteen weeks ended
|
Thirty-nine weeks ended
|
|||||||||||||||
November 3,
|
October 28,
|
November 3,
|
October 28,
|
|||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Number of stores open at beginning of period
|
282
|
250
|
268
|
234
|
||||||||||||
Number of new stores
|
17
|
15
|
31
|
31
|
||||||||||||
Number of closed stores
|
(2
|
)
|
-
|
(2
|
)
|
-
|
||||||||||
Number of stores open at end of period
|
297
|
265
|
297
|
265
|
||||||||||||
Average net sales per store (1)
|
$
|
984
|
$
|
923
|
$
|
3,027
|
$
|
2,917
|
||||||||
Comparable stores sales change
|
4.6
|
%
|
2.1
|
%
|
3.6
|
%
|
2.8
|
%
|
||||||||
Comparable store count – end of period
|
248
|
215
|
248
|
215
|
(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.
|