UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report: March 23, 2022
(Date of earliest event reported)
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(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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(717 ) 657-2300
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
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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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Securities registered pursuant to Section 12(b) of the Act:
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Title of Each Class
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Trading Symbol
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR
230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐.
| Item 2.02 |
Results of Operations and Financial Condition.
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On March 23, 2022, Ollie’s Bargain Outlet Holdings, Inc. (the “Company”) issued a press release announcing its financial results for the
fourth quarter and fiscal year ended January 29, 2022. A copy of the press release is furnished as Exhibit 99.1 to this current report and is incorporated by reference herein.
The information furnished on this Form 8-K, including the exhibit attached, shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the
Exchange Act, regardless of any general incorporation language in such filing.
| Item 9.01 |
Financial Statements and Exhibits.
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(d) 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 23, 2022 of Ollie’s Bargain Outlet Holdings, Inc.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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OLLIE’S BARGAIN OUTLET HOLDINGS, INC.
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By:
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/s/ Jay Stasz
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Name:
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Jay Stasz
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Title:
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Senior Vice President and
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Chief Financial Officer
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Date: March 23, 2022
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EXHIBIT INDEX
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Exhibit No.
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Description
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Press Release issued on March 23, 2022 of Ollie’s Bargain Outlet Holdings, Inc.
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Exhibit 99.1
Ollie’s Bargain Outlet Holdings, Inc. Reports
Fourth Quarter and Fiscal 2021 Financial Results
~ Company Exceeds EPS Expectations ~
~ Initiates Fiscal 2022 Guidance ~
HARRISBURG, PA – March 23, 2022 – Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) (the “Company”) today reported financial results for the fourth quarter and full-year fiscal 2021.
Fourth Quarter Summary:
| • |
Total net sales decreased 2.8% to $501.1 million.
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| • |
Comparable store sales decreased 10.5% from the prior year increase of 8.8%. Comparable store sales decreased 2.0% compared with the fourth quarter of fiscal 2019.
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The Company opened five new stores, ending the quarter with 431 stores in 29 states, a year-over-year increase in store count of 11.1%.
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Operating income decreased 32.2% to $57.5 million. Adjusted operating income(1) decreased 32.1% to $57.3 million and adjusted operating margin(1) decreased 500 basis points to 11.4%.
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Net income totaled $44.7 million, or $0.71 per diluted share, as compared with net income of $64.7 million, or $0.98 per diluted share, in the prior year.
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Adjusted net income(1) was $43.9 million, or $0.69 per diluted share, as compared with prior year adjusted net income of $63.8 million, or $0.97 per diluted share.
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Adjusted EBITDA(1) decreased 28.2% to $66.1 million and adjusted EBITDA margin(1) decreased 470 basis points to 13.2%.
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“During the fourth quarter we exceeded our earnings expectations. We navigated numerous headwinds including unprecedented inflation in merchandise and transportation
costs, shipping delays of imported product, and backlogs at our distribution centers. We accomplished this by controlling what we could by leveraging our vast network of vendor partners, improving efficiencies in our distribution centers, and keeping
a tight control on expenses. We continued to execute our retail expansion strategy and deliver great deals to our customers during these challenging times,” said John Swygert, President and Chief Executive Officer.
Mr. Swygert continued, “Looking ahead, we are excited to celebrate our 40th anniversary and have several special events planned to recognize this milestone. We are
also pleased to announce that for the first time in our Company’s history, we are launching a store remodel program, which we expect will improve our customers’ shopping experience and drive higher sales. We remain highly confident in our business
model and expect to see trends improve as we move through the second half of the year, positioning us to return to our long-term algorithm.”
Fiscal Year Summary:
| • |
Total net sales decreased 3.1% to $1.753 billion.
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Comparable store sales decreased 11.1% from the prior year increase of 15.6%. Comparable store sales increased 3.6% compared with fiscal 2019.
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The Company opened 46 new stores in fiscal 2021.
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Operating income decreased 26.3% to $204.6 million. Adjusted operating income(1) decreased 26.4% to $204.2 million and adjusted operating margin(1) decreased 370 basis points to 11.6%.
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Net income totaled $157.5 million, or $2.43 per diluted share, as compared with net income of $242.7 million, or $3.68 per diluted share, in the prior year.
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Adjusted net income(1) was $152.9 million, or $2.36 per diluted share, as compared with prior year adjusted net income of $208.0 million, or $3.16 per diluted share.
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Adjusted EBITDA(1) decreased 22.6% to $237.3 million and adjusted EBITDA margin(1) decreased 340 basis points to 13.5%.
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| (1) |
As used throughout this release, adjusted operating income, adjusted operating margin, adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA and adjusted EBITDA margin are not measures recognized under U.S.
generally accepted accounting principles (“GAAP”). Please see the accompanying financial tables which reconcile GAAP to these non-GAAP measures.
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Fourth Quarter Results
Net sales in the fourth quarter of fiscal 2021 totaled $501.1 million, a 2.8% decrease compared with net sales of $515.8 million in the fourth quarter of fiscal 2020.
The decrease in net sales was primarily due to a comparable store sales decrease of 10.5% as compared with record sales in the fourth quarter of fiscal 2020, partially offset by new store unit growth. Late deliveries of key seasonal product
combined with early holiday shopping impacted sales.
Gross profit decreased 10.6% to $183.0 million in the fourth quarter of fiscal 2021 from $204.7 million in the fourth quarter of fiscal 2020. Gross margin decreased
320 basis points to 36.5% in the fourth quarter of fiscal 2021 from 39.7% in the fourth quarter of fiscal 2020. The decrease in gross margin in the fourth quarter of fiscal 2021 is primarily due to increased supply chain costs, the result of higher
import and trucking costs and, to a lesser extent, higher wage rates in the Company’s distribution centers, partially offset by an increased merchandise margin.
Selling, general and administrative expenses, exclusive of $0.1 million and $0.2 million of gains from insurance settlements in the fourth quarters of fiscal 2021 and
fiscal 2020, respectively, increased 4.1% to $119.2 million in the fourth quarter of fiscal 2021 from $114.4 million in the fourth quarter of fiscal 2020. This increase was primarily driven by higher selling expenses associated with 43 net
additional stores and higher wage rates in select markets. As a percentage of net sales, selling, general and administrative expenses, exclusive of the insurance settlement gains, increased 160 basis points to 23.8% in the fourth quarter of
fiscal 2021 from 22.2% in the fourth quarter of fiscal 2020. The increase was primarily due to deleveraging as a result of the decrease in sales.
Operating income totaled $57.5 million in the fourth quarter of fiscal 2021, a 32.2% decrease from operating income of $84.7 million in the fourth quarter of fiscal
2020. Excluding the gains from the insurance settlements, adjusted operating income(1) decreased 32.1% to $57.3 million in the fourth quarter of fiscal 2021 from $84.5 million in the fourth quarter of fiscal 2020. Adjusted operating
margin(1) decreased 500 basis points to 11.4% in the fourth quarter of fiscal 2021 from 16.4% in the fourth quarter of fiscal 2020 primarily due to the decrease in gross margin and the deleveraging of selling, general and
administrative expenses as a result of the decrease in sales.
Net income decreased 30.8% to $44.7 million, or $0.71 per diluted share, in the fourth quarter of fiscal 2021 compared with net income of $64.7 million, or $0.98 per
diluted share, in the fourth quarter of fiscal 2020. Diluted earnings per share in each of the fourth quarters of fiscal 2021 and fiscal 2020 included a benefit of $0.01 due to excess tax benefits related to stock-based compensation. Adjusted
net income(1), which excludes these benefits and the after-tax gains from the insurance settlements, decreased 31.2% to $43.9 million, or $0.69 per diluted share, in the fourth quarter of fiscal 2021 from $63.8 million, or $0.97 per
diluted share, in the fourth quarter of fiscal 2020.
Adjusted EBITDA(1) totaled $66.1 million in the fourth quarter of fiscal 2021, decreasing 28.2% from $92.1 million in the fourth quarter of fiscal
2020. Adjusted EBITDA margin(1) decreased 470 basis points to 13.2% in the fourth quarter of fiscal 2021 from 17.9% in the fourth quarter of fiscal 2020. Adjusted EBITDA excludes non-cash stock-based compensation expense and the
gains from the insurance settlements.
Fiscal 2021 Results
Net sales totaled $1.753 billion in fiscal 2021, a decrease of 3.1% compared with net sales of $1.809 billion in fiscal 2020. The decrease in net sales was the
result of a comparable store sales decrease of 11.1% as compared with the record sales in fiscal 2020, partially offset by new store unit growth.
Gross profit decreased 5.8% to $681.2 million in fiscal 2021 from $723.4 million in fiscal 2020. Gross margin decreased 110 basis points to 38.9% in fiscal 2021
from 40.0% in fiscal 2020. The decrease in gross margin in fiscal 2021 is due to increased supply chain costs, primarily the result of higher import and trucking costs and, to a lesser extent, higher wage rates in the Company's distribution
centers, partially offset by improvement in the merchandise margin.
Adjusted operating income(1), which excludes gains from insurance settlements of $0.4 million and $0.2 million in fiscal 2021 and fiscal 2020,
respectively, decreased 26.4% to $204.2 million in fiscal 2021 compared with $277.3 million in fiscal 2020. Adjusted operating margin(1) decreased 370 basis points to 11.6% in fiscal 2021 from 15.3% in fiscal 2020 primarily as a result
of the decrease in gross margin and the deleveraging of expense components due to the decrease in sales.
Net income decreased 35.1% to $157.5 million, or $2.43 per diluted share, in fiscal 2021 from $242.7 million, or $3.68 per diluted share, in fiscal 2020. Diluted
earnings per share in fiscal 2021 and fiscal 2020 included a benefit of $0.06 and $0.52, respectively, due to excess tax benefits related to stock-based compensation. Adjusted net income(1), which excludes these benefits and the
after-tax gains from the insurance settlements, decreased 26.5% to $152.9 million, or $2.36 per diluted share, in fiscal 2021 from $208.0 million, or $3.16 per diluted share, in fiscal 2020.
Adjusted EBITDA (1) totaled $237.3 million in fiscal 2021, a 22.6% decrease from $306.5 million in fiscal 2020. Adjusted EBITDA margin(1)
decreased 340 basis points to 13.5% in fiscal 2021 from 16.9% in fiscal 2020.
Balance Sheet and Cash Flow Highlights
The Company's cash and cash equivalents balance as of the end of fiscal 2021 was $247.0 million compared with $447.1 million as of the end of fiscal 2020. The Company
had no borrowings outstanding under its $100 million revolving credit facility and $84.7 million of availability under the facility as of the end of fiscal 2021. The Company ended the period with total borrowings, consisting solely of finance lease
obligations, of $1.1 million.
During the fourth quarter of fiscal 2021, the Company invested $20.0 million of cash to repurchase 434,474 shares of its common stock, resulting in $220.0 million
invested in fiscal 2021.
Inventories as of the end of fiscal 2021 increased 32.1% to $467.3 million compared with $353.7 million as of the end of fiscal 2020, with almost half of the variance
attributable to increased supply chain costs and the remainder driven by the increased number of stores and the timing of merchandise receipts. In addition, inventories as of the end of fiscal 2020 were reduced due to heightened levels of sales
productivity throughout the fourth quarter last year.
Capital expenditures in fiscal 2021, primarily for new and existing stores, totaled $35.0 million compared with $30.5 million in fiscal 2020.
Fiscal 2022 Outlook
The Company estimates the following:
For full-year fiscal 2022:
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Total net sales of $1.908 billion to $1.926 billion;
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Comparable store sales ranging from flat to an increase of 1.0%;
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The opening of 46 to 48 new stores, including two relocations;
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Gross margin of approximately 37.2%;
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Operating income of $182.0 million to $187.0 million;
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Adjusted net income(2) of $136.0 million to $140.0 million and adjusted net income per diluted share(2) of $2.15 to $2.22, both of which exclude excess tax benefits related to stock-based compensation;
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An effective tax rate of 25.4%, which excludes excess tax benefits related to stock-based compensation;
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Diluted weighted average shares outstanding of 63.0 million; and
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Capital expenditures of $53 million to $58 million, primarily for new stores, the expansion of the Company’s York, PA
distribution center, store-level initiatives, and IT projects.
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For the first quarter of fiscal 2022:
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Total sales of $417.0 million to $422.0 million;
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Comparable store sales ranging from down 15.0% to down 14.0% as we lap stimulus from the same period last year;
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Gross margin of approximately 35.8%;
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Operating income of $26.5 million to $28.0 million; and
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Adjusted net income(2) of $20.0 million to $21.0 million and adjusted net income per diluted share(2) of $0.31 to $0.33, both of which exclude excess tax benefits related to stock-based compensation.
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| (2) |
The guidance ranges as provided for adjusted net income and adjusted net income per diluted share exclude the excess tax benefits related to stock-based compensation as the Company cannot predict such estimates without unreasonable
effort.
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Conference Call Information
A conference call to discuss fourth quarter and full-year fiscal 2021 financial results is scheduled for today, March 23, 2022, at 4:30 p.m. Eastern Time. Investors
and analysts can participate on the conference call by dialing (800) 219-7052 or (574) 990-1029 and using conference ID #6560876. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the investor
relations section on the Company’s website at http://investors.ollies.us/. The replay of the conference call webcast will be available at the investor relations website for one year.
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 436 stores in 29 states throughout half of the United States. For more information, visit www.ollies.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements
can be identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods, or by the inclusion
of forecasts or projections, the outlook for the Company’s future business, prospects, financial performance, including our fiscal 2022 business outlook or financial guidance, and industry outlook. Forward-looking statements are based on our
current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in
the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, including, but not limited to, legislation, national trade policy, and the following: our failure
to adequately procure and manage our inventory or anticipate consumer demand; changes in consumer confidence and spending; risks associated with our status as a “brick and mortar” only retailer; risks associated with intense competition; our
failure to open new profitable stores, or successfully enter new markets, on a timely basis or at all; the risks associated with doing business with international manufacturers and suppliers including, but not limited to, transportation and
shipping challenges, and potential increases in tariffs on imported goods; outbreak of viruses or widespread illness, including the continued impact of COVID-19 and continuing or renewed regulatory responses thereto; risks associated with
heightened geopolitical instability due to the Russia/Ukraine conflict; our inability to operate our stores due to civil unrest and related protests or disturbances; our failure to properly hire and to retain key personnel and other qualified
personnel; our inability to obtain favorable lease terms for our properties; the failure to timely acquire, develop and open, the loss of, or disruption or interruption in the operations of, our centralized distribution centers; fluctuations in
comparable store sales and results of operations, including on a quarterly basis; risks associated with our lack of operations in the growing online retail marketplace; risks associated with litigation, the expense of defense, and potential for
adverse outcomes; our inability to successfully develop or implement our marketing, advertising and promotional efforts; the seasonal nature of our business; risks associated with the timely and effective deployment, protection, and defense of
computer networks and other electronic systems, including e-mail; changes in government regulations, procedures and requirements; risks associated with natural disasters, whether or not caused by climate change; and our ability to service
indebtedness and to comply with our financial covenants together with each of the other factors set forth under the heading “Risk Factors” in our filings with the United States Securities and Exchange Commission (“SEC”). Any forward-looking
statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them.
Ollie’s undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. You are advised, however, to consult any
further disclosures we make on related subjects in our public announcements and SEC filings.
Investor Contact:
Jean Fontana
ICR
646-277-1214
Jean.Fontana@icrinc.com
Media Contact:
Tom Kuypers
Senior Vice President – Marketing & Advertising
717-657-2300
tkuypers@ollies.us
Ollie’s Bargain Outlet Holdings, Inc.
Condensed Consolidated Statements of Income
(In thousands except for per share amounts)
(Unaudited)
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13 Weeks
Ended
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13 Weeks
Ended
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52 Weeks
Ended
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52 Weeks
Ended
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|||||||||||||
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January 29,
2022
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January 30,
2021
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January 29,
2022
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January 30,
2021
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|||||||||||||
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Net sales
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$
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501,135
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$
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515,763
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$
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1,752,995
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$
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1,808,821
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Cost of sales
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318,094
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311,106
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1,071,749
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1,085,455
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Gross profit
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183,041
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204,657
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681,246
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723,366
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Selling, general and administrative expenses
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119,078
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114,190
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447,615
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418,889
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Depreciation and amortization expenses
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5,255
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4,409
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19,364
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16,705
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Pre-opening expenses
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1,256
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1,349
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9,675
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10,272
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Operating income
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57,452
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84,709
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204,592
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277,500
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Interest expense (income), net
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98
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(76
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)
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209
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(278
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)
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Income before income taxes
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57,354
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84,785
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204,383
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277,778
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Income tax expense
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12,627
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20,125
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46,928
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35,082
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Net income
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$
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44,727
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$
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64,660
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$
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157,455
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$
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242,696
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Earnings per common share:
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Basic
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$
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0.71
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$
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0.99
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$
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2.44
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$
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3.75
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Diluted
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$
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0.71
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$
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0.98
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$
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2.43
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$
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3.68
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Weighted average common shares outstanding:
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||||||||||||||||
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Basic
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63,059
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65,426
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64,447
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64,748
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||||||||||||
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Diluted
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63,270
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66,096
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64,878
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65,873
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||||||||||||
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Percentage of net sales(1)
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||||||||||||||||
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Net sales
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100.0
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%
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100.0
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%
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100.0
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%
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100.0
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%
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||||||||
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Cost of sales
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63.5
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60.3
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61.1
|
60.0
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||||||||||||
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Gross profit
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36.5
|
39.7
|
38.9
|
40.0
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||||||||||||
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Selling, general and administrative expenses
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23.8
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22.1
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25.5
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23.2
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||||||||||||
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Depreciation and amortization expenses
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1.0
|
0.9
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1.1
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0.9
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||||||||||||
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Pre-opening expenses
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0.3
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0.3
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0.6
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0.6
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||||||||||||
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Operating income
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11.5
|
16.4
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11.7
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15.3
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||||||||||||
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Interest expense (income), net
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-
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-
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-
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-
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||||||||||||
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Income before income taxes
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11.4
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16.4
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11.7
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15.4
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||||||||||||
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Income tax expense
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2.5
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3.9
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2.7
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1.9
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||||||||||||
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Net income
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8.9
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%
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12.5
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%
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9.0
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%
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13.4
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%
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||||||||
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(1)
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Components may not add to totals due to rounding.
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Ollie’s Bargain Outlet Holdings, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
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Assets
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January 29,
2022
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January 30,
2021
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||||||
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Current assets:
|
||||||||
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Cash and cash equivalents
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$
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246,977
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$
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447,126
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||||
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Inventories
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467,306
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353,704
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||||||
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Accounts receivable
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1,372
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621
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||||||
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Prepaid expenses and other assets
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11,173
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7,316
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||||||
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Total current assets
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726,828
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808,767
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||||||
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Property and equipment, net
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147,164
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138,712
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Operating lease right-of-use assets
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420,568
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380,546
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Goodwill
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444,850
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444,850
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||||||
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Trade name
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230,559
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230,559
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||||||
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Other assets
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2,203
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2,421
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||||||
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Total assets
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$
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1,972,172
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$
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2,005,855
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||||
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Liabilities and Stockholders’ Equity
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||||||||
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Current liabilities:
|
||||||||
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Current portion of long-term debt
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$
|
332
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$
|
328
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||||
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Accounts payable
|
106,599
|
117,217
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||||||
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Income taxes payable
|
2,556
|
10,960
|
||||||
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Current portion of operating lease liabilities
|
75,535
|
64,732
|
||||||
|
Accrued expenses and other
|
78,246
|
90,559
|
||||||
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Total current liabilities
|
263,268
|
283,796
|
||||||
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Revolving credit facility
|
-
|
-
|
||||||
|
Long-term debt
|
719
|
656
|
||||||
|
Deferred income taxes
|
66,179
|
65,064
|
||||||
|
Long-term operating lease liabilities
|
354,293
|
321,454
|
||||||
|
Other long-term liabilities
|
3
|
4
|
||||||
|
Total liabilities
|
684,462
|
670,974
|
||||||
|
Stockholders’ equity:
|
||||||||
|
Common stock
|
67
|
66
|
||||||
|
Additional paid-in capital
|
664,293
|
648,949
|
||||||
|
Retained earnings
|
883,722
|
726,267
|
||||||
|
Treasury - common stock
|
(260,372
|
)
|
(40,401
|
)
|
||||
|
Total stockholders’ equity
|
1,287,710
|
1,334,881
|
||||||
|
Total liabilities and stockholders’ equity
|
$
|
1,972,172
|
$
|
2,005,855
|
||||
Ollie’s Bargain Outlet Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
|
13 Weeks
Ended
|
13 Weeks
Ended
|
52 Weeks
Ended
|
52 Weeks
Ended
|
|||||||||||||
|
January29,
2022
|
January30,
2021
|
January29,
2022
|
January30,
2021
|
|||||||||||||
|
Net cash provided by operating activities
|
$
|
42,342
|
$
|
125,340
|
$
|
45,033
|
$
|
361,254
|
||||||||
|
Net cash used in investing activities
|
(5,317
|
)
|
(4,617
|
)
|
(31,830
|
)
|
(30,448
|
)
|
||||||||
|
Net cash (used in) provided by financing activities
|
(19,774
|
)
|
878
|
(213,352
|
)
|
26,370
|
||||||||||
|
Net increase (decrease) in cash and cash equivalents
|
17,251
|
121,601
|
(200,149
|
)
|
357,176
|
|||||||||||
|
Cash and cash equivalents at the beginning of the period
|
229,726
|
325,525
|
447,126
|
89,950
|
||||||||||||
|
Cash and cash equivalents at the end of the period
|
$
|
246,977
|
$
|
447,126
|
$
|
246,977
|
$
|
447,126
|
||||||||
Ollie’s Bargain Outlet Holdings, Inc.
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 adjusted operating income, adjusted operating
margin, 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: operating income to adjusted operating
income, 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 operating income excludes gains associated with insurance settlements. Adjusted net income and adjusted net income per diluted share exclude the
after-tax gain from the insurance settlements and 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 as well as the aforementioned gains from insurance settlements.
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.
Reconciliation of GAAP operating income to adjusted operating income
|
13 Weeks
Ended
|
13 Weeks
Ended
|
52 Weeks
Ended
|
52 Weeks
Ended
|
|||||||||||||
|
January 29,
2022
|
January 30,
2021
|
January 29,
2022
|
January 30,
2021
|
|||||||||||||
|
Operating income
|
$
|
57,452
|
$
|
84,709
|
$
|
204,592
|
$
|
277,500
|
||||||||
|
Gain from insurance settlements
|
(104
|
)
|
(247
|
)
|
(416
|
)
|
(247
|
)
|
||||||||
|
Adjusted operating income
|
$
|
57,348
|
$
|
84,462
|
$
|
204,176
|
$
|
277,253
|
||||||||
Ollie’s Bargain Outlet Holdings, Inc.
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
|
13 Weeks
Ended
|
13 Weeks
Ended
|
52 Weeks
Ended
|
52 Weeks
Ended
|
|||||||||||||
|
January29,
2022
|
January30,
2021
|
January29,
2022
|
January30,
2021
|
|||||||||||||
|
Net income
|
$
|
44,727
|
$
|
64,660
|
$
|
157,455
|
$
|
242,696
|
||||||||
|
Gain from insurance settlements
|
(104
|
)
|
(247
|
)
|
(416
|
)
|
(247
|
)
|
||||||||
|
Adjustment to provision for income taxes (1)
|
26
|
62
|
106
|
62
|
||||||||||||
|
Excess tax benefits related to stock-based compensation (2)
|
(795
|
)
|
(691
|
)
|
(4,209
|
)
|
(34,469
|
)
|
||||||||
|
Adjusted net income
|
$
|
43,854
|
$
|
63,784
|
$
|
152,936
|
$
|
208,042
|
||||||||
| (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 (gains from insurance settlements) were incurred.
|
| (2) |
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
|
13 Weeks
Ended
|
13 Weeks
Ended
|
52 Weeks
Ended
|
52 Weeks
Ended
|
|||||||||||||
|
January29,
2022
|
January30,
2021
|
January29,
2022
|
January30,
2021
|
|||||||||||||
|
Net income per diluted share
|
$
|
0.71
|
$
|
0.98
|
$
|
2.43
|
$
|
3.68
|
||||||||
|
Adjustments as noted above, per dilutive share:
|
||||||||||||||||
|
Gain from insurance settlements, net of taxes
|
-
|
-
|
-
|
-
|
||||||||||||
|
Excess tax benefits related to stock-based compensation
|
(0.01
|
)
|
(0.01
|
)
|
(0.06
|
)
|
(0.52
|
)
|
||||||||
|
Adjusted net income per diluted share (1)
|
$
|
0.69
|
$
|
0.97
|
$
|
2.36
|
$
|
3.16
|
||||||||
|
Diluted weighted-average common shares outstanding
|
63,270
|
66,096
|
64,878
|
65,873
|
||||||||||||
|
(1)
|
Components may not add to totals due to rounding.
|
Ollie’s Bargain Outlet Holdings, Inc.
Supplemental Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(Dollars in thousands)
(Unaudited)
Reconciliation of GAAP net income to EBITDA and adjusted EBITDA
|
13 Weeks
Ended
|
13 Weeks
Ended
|
52 Weeks
Ended
|
52 Weeks
Ended
|
|||||||||||||
|
January 29,
2022
|
January 30,
2021
|
January 29,
2022
|
January 30,
2021
|
|||||||||||||
|
Net income
|
$
|
44,727
|
$
|
64,660
|
$
|
157,455
|
$
|
242,696
|
||||||||
|
Interest expense (income), net
|
98
|
(76
|
)
|
209
|
(278
|
)
|
||||||||||
|
Depreciation and amortization expenses
|
6,704
|
5,899
|
25,114
|
22,746
|
||||||||||||
|
Income tax expense
|
12,627
|
20,125
|
46,928
|
35,082
|
||||||||||||
|
EBITDA
|
64,156
|
90,608
|
229,706
|
300,246
|
||||||||||||
|
Gain from insurance settlements
|
(104
|
)
|
(247
|
)
|
(416
|
)
|
(247
|
)
|
||||||||
|
Non-cash stock-based compensation expense
|
2,083
|
1,746
|
8,042
|
6,501
|
||||||||||||
|
Adjusted EBITDA
|
$
|
66,135
|
$
|
92,107
|
$
|
237,332
|
$
|
306,500
|
||||||||
Key Statistics
|
13 Weeks
Ended
|
13 Weeks
Ended
|
52 Weeks
Ended
|
52 Weeks
Ended
|
|||||||||||||
|
January 29,
2022
|
January 30,
2021
|
January 29,
2022
|
January 30,
2021
|
|||||||||||||
|
Number of stores open at beginning of period
|
426
|
385
|
388
|
345
|
||||||||||||
|
Number of new stores
|
5
|
4
|
46
|
46
|
||||||||||||
|
Number of closed stores
|
-
|
(1
|
)
|
(3
|
)
|
(4
|
)
|
|||||||||
|
Number of stores re-opened
|
-
|
-
|
-
|
1
|
||||||||||||
|
Number of stores open at end of period
|
431
|
388
|
431
|
388
|
||||||||||||
|
Average net sales per store (in thousands) (1)
|
$
|
1,165
|
$
|
1,321
|
$
|
4,254
|
$
|
4,866
|
||||||||
|
Comparable stores sales change
|
(10.5
|
)%
|
8.8
|
%
|
(11.1
|
)%
|
15.6
|
%
|
||||||||
|
Comparable store count – end of period
|
376
|
339
|
376
|
339
|
||||||||||||
| (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.
|