Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) (the
“Company”) today reported financial results for the quarter ended
April 29, 2023.
First Quarter Summary:
- Total net sales
increased 12.9% to $459.2 million.
- Comparable store
sales increased 4.5% from the prior year decrease of
17.3%.
- The Company opened
9 new stores and closed one store, ending the quarter with 476
stores in 29 states, a year-over-year increase in store count of
8.4%.
- Operating income
increased 124.8% to $38.5 million and operating margin increased
420 basis points to 8.4%.
- Net income
increased 147.4% to $31.0 million or $0.50 per diluted share, as
compared with net income of $12.5 million, or $0.20 per diluted
share, in the prior year.
- Adjusted net
income(1) increased 140.9% to $30.8 million, or $0.49 per diluted
share, as compared with prior year adjusted net income of $12.8
million, or $0.20 per diluted share.
- Adjusted EBITDA(1)
increased 88.5% to $49.5 million and adjusted EBITDA margin(1)
increased 430 basis points to 10.8%.
(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 U.S. generally accepted accounting principles
(“GAAP”). Please see the accompanying financial tables which
reconcile our comparable GAAP measures to these non-GAAP
measures.
“We are pleased with our first quarter
performance, which exceeded our expectations and was driven by
strong comparable store sales, new store productivity, and margin
expansion. Customers are responding to our compelling deals,
resulting in accelerating transaction trends and we are encouraged
to see our product offerings appealing to a wider customer base
that includes more higher income and younger-age shoppers,” said
John Swygert, President and Chief Executive Officer. “Our deal flow
remains robust, and we believe that we are well positioned in the
current environment as consumers are increasingly looking for
value. As a result of our strong first quarter performance and
continued momentum in the business, we are raising our outlook for
fiscal year 2023.”
First Quarter Results
Net sales increased 12.9% to $459.2 million in
the first quarter of fiscal 2023 as compared with net sales of
$406.7 million in the first quarter of fiscal 2022. The increase in
net sales was the result of new store unit growth in addition to a
comparable store sales increase of 4.5%.
Gross profit increased 26.4% to $178.6 million
in the first quarter of fiscal 2023 from $141.3 million in the
first quarter of fiscal 2022. Gross margin increased 410 basis
points to 38.9% in the first quarter of fiscal 2023 from 34.8% in
the first quarter of fiscal 2022. The increase in gross margin was
primarily due to favorable supply chain costs, partially offset by
lower merchandise margin related to shrink and a higher mix of
consumables.
Selling, general, and administrative expenses
increased 12.0% to $130.3 million in the first quarter of fiscal
2023 from $116.3 million in the first quarter of fiscal 2022. The
increase was primarily driven by higher selling expenses related to
new store openings and incentive compensation. As a percentage of
net sales, SG&A decreased to 28.4% in the first quarter of
fiscal 2023 compared to 28.6% in the first quarter of fiscal 2022
primarily the result of leverage of fixed expenses on the increase
in comparable store sales partially offset by higher incentive
compensation.
Pre-opening expenses for new stores increased to $3.3 million in
the first quarter of fiscal 2023 from $2.7 million in the first
quarter of fiscal 2022 primarily driven by incremental investments
in our store remodel program, partially offset by timing of new
stores.
Operating income increased 124.8% to $38.5
million in the first quarter of fiscal 2023 from $17.1 million in
the first quarter of fiscal 2022. Operating margin
increased 420 basis points to 8.4% in the first quarter of fiscal
2023 from 4.2% in the first quarter of fiscal
2022.
Net income increased 147.4% to $31.0 million, or
$0.50 per diluted share, in the first quarter of fiscal 2023
compared with net income of $12.5 million, or $0.20 per diluted
share, in the first quarter of fiscal 2022. Adjusted net income(1)
increased 140.9% to $30.8 million, or $0.49 per diluted share, in
the first quarter of fiscal 2023 from $12.8 million, or $0.20 per
diluted share, in the first quarter of fiscal 2022.
Adjusted EBITDA(1) increased 88.5% to $49.5
million in the first quarter of fiscal 2023 from $26.2 million in
the first quarter of fiscal 2022. Adjusted EBITDA margin(1)
increased 430 basis points to 10.8% in the first quarter of fiscal
2023 from 6.5% in the first quarter of fiscal 2022. Adjusted EBITDA
excludes non-cash stock-based compensation expense.
Balance Sheet and Cash Flow
Highlights
The Company's cash and cash equivalents and
short-term investments were $275.5 million as of the end of the
first quarter of fiscal 2023 compared with cash and cash
equivalents of $205.5 million as of the end of the end of the first
quarter of fiscal 2022. The Company had no borrowings outstanding
under its $100 million revolving credit facility and $91.6 million
of availability under the facility as of the end of the first
quarter of fiscal 2023. The Company ended the period with total
borrowings, consisting solely of finance lease obligations, of $1.5
million as of the end of the first quarter of fiscal 2023.
During the first quarter of fiscal 2023, the
Company invested $12.3 million of cash to repurchase 215,522 shares
of its common stock. As of the end of the first quarter, the
Company had $125.9 million of remaining capacity under its current
share repurchase program.
Inventories as of the end of the first quarter
of fiscal 2023 decreased 3.7% to $498.0 million compared with
$517.0 million as of the end of the first quarter of fiscal 2022,
driven by the impact of lower freight costs and a normalization of
lead times on our in-transit inventory, partially offset by new
store growth.
Capital expenditures were $19.0 million in the
first quarter of fiscal 2023, primarily related to the development
of new stores, the remodeling of existing stores, the expansion of
the Company’s distribution center in York, PA, and the development
of the Company’s new distribution center in Princeton, IL.
Fiscal 2023
Outlook
The Company is raising its sales and earnings
outlook for the 53-week fiscal year ending February 3, 2024. A
comparison of new and previous outlook figures is contained in the
table below:
|
New |
Previous |
New store openings, net |
44 |
44 |
Net sales |
$2.052 to $2.067 billion |
$2.036 to $2.058 billion |
Comparable store sales
increase |
2.0% to 2.8% |
1.0% to 2.0% |
Gross margin |
39.1% to 39.3% |
39.1% to 39.3% |
Operating income |
$207 to 215 million |
$205 to $213 million |
Adjusted net income(1)(2) |
$160 to $165 million |
$156 to $163 million |
Adjusted net income per
diluted share(1)(2) |
$2.56 to $2.65 |
$2.49 to $2.58 |
Annual effective tax rate
(excludes excess tax benefits related to stock-based
compensation) |
25.3% |
25.0% |
Diluted weighted average
shares outstanding |
63 million |
63 million |
Capital expenditures |
$125 million |
$125 million |
(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.
Conference Call Information
A conference call to discuss first quarter
fiscal 2023 financial results is scheduled for today, June 7, 2023,
at 8:30 a.m. Eastern Time. To access the live conference call,
please pre-register here. Registrants will receive a confirmation
with dial-in instructions. 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/. A replay of the conference call
webcast will be available at the investor relations website for one
year.
About
Ollie’s
We are America’s largest retailer of Closeout
merchandise and excess inventory, offering Real Brands and Real
Bargain prices®! We offer extreme value on brand name products in a
variety of departments, including housewares, food, books and
stationery, bed and bath, floor coverings, toys, health and beauty
aids, and more. We currently operate 479 stores in 29 states and
growing! For more information, visit www.ollies.us
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 2023
business outlook or financial guidance, and industry outlook.
Forward-looking statements are based on our current expectations
and assumptions regarding our business, capital market conditions,
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, supply chain challenges, legislation, national trade
policy, and the following: our failure to adequately procure and
manage our inventory, anticipate consumer demand or achieve
favorable product margins; 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; fluctuations in comparable
store sales and results of operations, including on a quarterly
basis; factors such as inflation, cost increases and energy prices;
the risks associated with doing business with international
manufacturers and suppliers including, but not limited to,
potential increases in tariffs on imported goods; 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; changes in market levels
of wages; risks associated with cybersecurity events and the timely
and effective deployment, protection and defense of computer
networks and other electronic systems, including email; 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; 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 natural disasters, whether
or not caused by climate change; outbreak of viruses, global health
epidemics, pandemics, or widespread illness, including the
continued impact of COVID-19 and continuing or renewed regulatory
responses thereto; changes in government regulations, procedures
and requirements; 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: John
RouleauICRJohn.Rouleau@icrinc.com
Media Contact:Tom KuypersSenior Vice President
– Marketing & Advertising717-657-2300
tkuypers@ollies.us
Ollie’s
Bargain Outlet Holdings, Inc. |
Condensed
Consolidated Statements of Income |
(In
thousands, except per share amounts) |
(Unaudited) |
|
|
|
|
|
|
|
Thirteen weeks ended |
|
|
April
29, |
|
April
30, |
Condensed consolidated statements of income
data: |
|
|
2023 |
|
|
|
2022 |
|
Net
sales |
|
$ |
459,154 |
|
|
$ |
406,666 |
|
Cost of
sales |
|
|
280,583 |
|
|
|
265,341 |
|
Gross
profit |
|
|
178,571 |
|
|
|
141,325 |
|
Selling,
general, and administrative expenses |
|
|
130,268 |
|
|
|
116,273 |
|
Depreciation
and amortization expenses |
|
|
6,483 |
|
|
|
5,247 |
|
Pre-opening
expenses |
|
|
3,281 |
|
|
|
2,660 |
|
Operating income |
|
|
38,539 |
|
|
|
17,145 |
|
Interest
(income) expense, net |
|
|
(2,675 |
) |
|
|
109 |
|
Income before income taxes |
|
|
41,214 |
|
|
|
17,036 |
|
Income tax
expense |
|
|
10,234 |
|
|
|
4,513 |
|
Net income |
|
$ |
30,980 |
|
|
$ |
12,523 |
|
Earnings per
common share: |
|
|
|
|
Basic |
|
$ |
0.50 |
|
|
$ |
0.20 |
|
Diluted |
|
$ |
0.50 |
|
|
$ |
0.20 |
|
Weighted
average common shares outstanding: |
|
|
|
|
Basic |
|
|
61,970 |
|
|
|
62,869 |
|
Diluted |
|
|
62,207 |
|
|
|
63,011 |
|
Percentage of net sales (1): |
|
|
|
|
Net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
Cost of
sales |
|
|
61.1 |
|
|
|
65.2 |
|
Gross profit |
|
|
38.9 |
|
|
|
34.8 |
|
Selling,
general and administrative expenses |
|
|
28.4 |
|
|
|
28.6 |
|
Depreciation
and amortization expenses |
|
|
1.4 |
|
|
|
1.3 |
|
Pre-opening
expenses |
|
|
0.7 |
|
|
|
0.7 |
|
Operating income |
|
|
8.4 |
|
|
|
4.2 |
|
Interest
(income) expense, net |
|
|
(0.6 |
) |
|
|
— |
|
Income before income taxes |
|
|
9.0 |
|
|
|
4.2 |
|
Income tax
expense |
|
|
2.2 |
|
|
|
1.1 |
|
Net income |
|
|
6.7 |
% |
|
|
3.1 |
% |
|
(1) Components may not add to totals due to rounding. |
Ollie’s
Bargain Outlet Holdings, Inc. |
Condensed
Consolidated Balance Sheets |
(In
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
April
29, |
|
April
30, |
Assets |
|
|
2023 |
|
|
|
2022 |
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
134,959 |
|
|
$ |
205,463 |
|
Short-term investments |
|
|
140,530 |
|
|
|
- |
|
Accounts receivable |
|
|
985 |
|
|
|
1,054 |
|
Inventories |
|
|
497,988 |
|
|
|
517,033 |
|
Prepaid expenses and other current assets |
|
|
8,806 |
|
|
|
7,806 |
|
Total current assets |
|
|
783,268 |
|
|
|
731,356 |
|
Property and
equipment, net |
|
|
187,030 |
|
|
|
149,765 |
|
Operating
lease right-of-use assets |
|
|
443,153 |
|
|
|
431,102 |
|
Goodwill |
|
|
444,850 |
|
|
|
444,850 |
|
Trade
name |
|
|
230,559 |
|
|
|
230,559 |
|
Other
assets |
|
|
2,178 |
|
|
|
2,198 |
|
Total assets |
|
$ |
2,091,038 |
|
|
$ |
1,989,830 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Current portion of long-term debt |
|
$ |
519 |
|
|
$ |
350 |
|
Accounts payable |
|
|
99,554 |
|
|
|
101,109 |
|
Income taxes payable |
|
|
12,476 |
|
|
|
6,769 |
|
Current portion of operating lease liabilities |
|
|
89,528 |
|
|
|
78,427 |
|
Accrued expenses and other current liabilities |
|
|
76,136 |
|
|
|
71,499 |
|
Total current liabilities |
|
|
278,213 |
|
|
|
258,154 |
|
Revolving
credit facility |
|
|
- |
|
|
|
- |
|
Long-term
debt |
|
|
946 |
|
|
|
761 |
|
Deferred
income taxes |
|
|
71,132 |
|
|
|
66,390 |
|
Long-term
portion of operating lease liabilities |
|
|
356,791 |
|
|
|
362,088 |
|
Other
long-term liabilities |
|
|
- |
|
|
|
2 |
|
Total liabilities |
|
|
707,082 |
|
|
|
687,395 |
|
Stockholders’ equity: |
|
|
|
|
Common stock |
|
|
67 |
|
|
|
67 |
|
Additional paid-in capital |
|
|
680,881 |
|
|
|
666,495 |
|
Retained earnings |
|
|
1,017,492 |
|
|
|
896,245 |
|
Treasury - common stock |
|
|
(314,484 |
) |
|
|
(260,372 |
) |
Total stockholders’ equity |
|
|
1,383,956 |
|
|
|
1,302,435 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,091,038 |
|
|
$ |
1,989,830 |
|
Ollie’s
Bargain Outlet Holdings, Inc. |
Condensed
Consolidated Statements of Cash Flows |
(In
thousands) |
(Unaudited) |
|
|
|
Thirteen weeks ended |
|
|
April
29, |
|
April
30, |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash
provided by (used in) operating activities |
|
$ |
35,872 |
|
|
$ |
(31,516 |
) |
Net cash
used in investing activities |
|
|
(99,311 |
) |
|
|
(9,617 |
) |
Net cash
used in financing activities |
|
|
(12,198 |
) |
|
|
(381 |
) |
Net decrease in cash and cash equivalents |
|
|
(75,637 |
) |
|
|
(41,514 |
) |
Cash and cash equivalents, beginning of the period |
|
|
210,596 |
|
|
|
246,977 |
|
Cash and cash equivalents, end of the period |
|
$ |
134,959 |
|
|
$ |
205,463 |
|
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
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 and
gains on 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.
Ollie’s
Bargain Outlet Holdings, Inc.Supplemental
InformationReconciliation 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 |
|
|
April
29, |
|
April
30, |
|
|
|
2023 |
|
|
2022 |
Net income |
|
$ |
30,980 |
|
|
$ |
12,523 |
Excess tax
(benefit) expense related to stock-based compensation(1) |
|
|
(228 |
) |
|
|
242 |
Adjusted net
income |
|
$ |
30,752 |
|
|
$ |
12,765 |
|
|
|
|
|
(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 |
|
|
|
April
29, |
|
April
30, |
|
|
|
2023 |
|
2022 |
|
Net income per diluted share |
$ |
0.50 |
|
$ |
0.20 |
|
Adjustments as noted above, per diluted share: |
|
|
|
|
|
Excess tax expense (benefit) related to stock-based
compensation |
|
- |
|
|
- |
|
Adjusted net income per diluted share(1) |
$ |
0.49 |
|
$ |
0.20 |
|
|
|
|
|
|
|
Diluted weighted-average common shares outstanding |
|
62,207 |
|
|
63,011 |
|
|
|
|
|
|
|
(1) Components may not add to totals due to rounding. |
|
|
|
|
Ollie’s Bargain Outlet Holdings,
Inc.Supplemental
InformationReconciliation of GAAP to Non-GAAP
Financial Measures (Dollars in thousands)
(Unaudited) |
|
Reconciliation of GAAP net income to EBITDA and adjusted
EBITDA |
|
|
Thirteen weeks ended |
|
|
|
April 29, |
|
April 30, |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
(in thousands) |
Net income |
|
$ |
30,980 |
|
|
$ |
12,523 |
|
Interest (income) expense,
net |
|
|
(2,675 |
) |
|
|
109 |
|
Depreciation and amortization
expenses (1) |
|
|
8,074 |
|
|
|
6,708 |
|
Income tax expense |
|
|
10,234 |
|
|
|
4,513 |
|
EBITDA |
|
|
46,613 |
|
|
|
23,853 |
|
Non-cash stock-based
compensation expense |
|
|
2,863 |
|
|
|
2,388 |
|
Adjusted EBITDA |
|
$ |
49,476 |
|
|
$ |
26,241 |
|
Key Statistics |
|
|
|
|
|
|
Thirteen weeks ended |
|
|
April 29, |
|
April 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
Number of stores open at beginning of period |
|
|
468 |
|
|
|
431 |
|
Number of new stores |
|
|
9 |
|
|
|
9 |
|
Number of closed stores |
|
|
(1 |
) |
|
|
(1 |
) |
Number of stores open at end of period |
|
|
476 |
|
|
|
439 |
|
|
|
|
|
|
Average net sales per store (1) |
|
$ |
970 |
|
|
$ |
935 |
|
Comparable stores sales change |
|
|
4.5 |
% |
|
|
(17.3 |
)% |
Comparable store count – end of period |
|
|
427 |
|
|
|
384 |
|
|
|
|
|
|
(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. |
Ollies Bargain Outlet (NASDAQ:OLLI)
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부터 4월(4) 2024 으로 5월(5) 2024
Ollies Bargain Outlet (NASDAQ:OLLI)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024