08/29/2024 | Press release | Distributed by Public on 08/29/2024 05:38
|
• |
Total net sales increased 12.4% to $578.4 million.
|
|
• |
Comparable store sales increased 5.8% from the prior year increase of 7.9%.
|
|
• |
The Company opened nine new stores, ending the quarter with 525 stores in 31 states, a year-over-year increase in store count of 8.9%.
|
|
• |
Operating income increased 15.6% to $60.8 million and operating margin increased 30 basis points to 10.5%.
|
|
• |
Net income increased 16.1% to $49.0 million, or $0.79 per diluted share.
|
|
• |
Adjusted net income(1) increased 15.6% to $48.2 million, or $0.78 per diluted share.
|
|
• |
Adjusted EBITDA(1) increased 16.4% to $74.5 million and adjusted EBITDA margin(1) increased 50 basis points to 12.9%.
|
(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.
|
New
|
Previous
|
|||||
New store openings, net(1)
|
48
|
48
|
||||
Net sales
|
$2.276 to $2.291 billion
|
$2.257 to $2.277 billion
|
||||
Comparable store sales increase
|
2.7% to 3.2%
|
1.5% to 2.3%
|
||||
Gross margin
|
40.0
|
%
|
40.0
|
%
|
||
Operating income
|
$252 to 259 million
|
$250 to 258 million
|
||||
Adjusted net income(2)
|
$199 to $203 million
|
$196 to $202 million
|
||||
Adjusted net income per diluted share(2)
|
$3.22 to $3.30
|
$3.18 to $3.28
|
||||
Annual effective tax rate (excludes excess tax benefits related to stock-based compensation)
|
25.0
|
%
|
25.5
|
%
|
||
Diluted weighted average shares outstanding
|
62 million
|
62 million
|
||||
Capital expenditures(3)
|
$104 million
|
$90 million
|
(1) |
Includes 50 planned new store openings and 2 closures where the Company chose not to renew the leases.
|
|
(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.
|
|
(3) |
Includes $14.6 million purchase price for the acquisition of former 99 Cents Only Stores locations and includes build out costs related to such locations.
|
Thirteen weeks ended
|
Twenty-six weeks ended
|
|||||||||||||||
August 3,
|
July 29,
|
August 3,
|
July 29,
|
|||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Condensed consolidated statements of income data:
|
||||||||||||||||
Net sales
|
$
|
578,375
|
$
|
514,509
|
$
|
1,087,193
|
$
|
973,663
|
||||||||
Cost of sales
|
359,344
|
317,825
|
658,804
|
598,408
|
||||||||||||
Gross profit
|
219,031
|
196,684
|
428,389
|
375,255
|
||||||||||||
Selling, general, and administrative expenses
|
145,673
|
134,623
|
288,092
|
264,891
|
||||||||||||
Depreciation and amortization expenses
|
8,004
|
6,655
|
15,720
|
13,138
|
||||||||||||
Pre-opening expenses
|
4,595
|
2,869
|
7,321
|
6,150
|
||||||||||||
Operating income
|
60,759
|
52,537
|
117,256
|
91,076
|
||||||||||||
Interest income, net
|
(3,928
|
)
|
(3,402
|
)
|
(8,229
|
)
|
(6,077
|
)
|
||||||||
Income before income taxes
|
64,687
|
55,939
|
125,485
|
97,153
|
||||||||||||
Income tax expense
|
15,705
|
13,758
|
30,161
|
23,992
|
||||||||||||
Net income
|
$
|
48,982
|
$
|
42,181
|
$
|
95,324
|
$
|
73,161
|
||||||||
Earnings per common share:
|
||||||||||||||||
Basic
|
$
|
0.80
|
$
|
0.68
|
$
|
1.55
|
$
|
1.18
|
||||||||
Diluted
|
$
|
0.79
|
$
|
0.68
|
$
|
1.54
|
$
|
1.18
|
||||||||
Weighted average common shares outstanding:
|
||||||||||||||||
Basic
|
61,313
|
61,768
|
61,347
|
61,869
|
||||||||||||
Diluted
|
61,721
|
62,055
|
61,731
|
62,131
|
||||||||||||
Percentage of net sales (1):
|
||||||||||||||||
Net sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||||||
Cost of sales
|
62.1
|
61.8
|
60.6
|
61.5
|
||||||||||||
Gross profit
|
37.9
|
38.2
|
39.4
|
38.5
|
||||||||||||
Selling, general, and administrative expenses
|
25.2
|
26.2
|
26.5
|
27.2
|
||||||||||||
Depreciation and amortization expenses
|
1.4
|
1.3
|
1.4
|
1.3
|
||||||||||||
Pre-opening expenses
|
0.8
|
0.6
|
0.7
|
0.6
|
||||||||||||
Operating income
|
10.5
|
10.2
|
10.8
|
9.4
|
||||||||||||
Interest income, net
|
(0.7
|
)
|
(0.7
|
)
|
(0.8
|
)
|
(0.6
|
)
|
||||||||
Income before income taxes
|
11.2
|
10.9
|
11.6
|
10.0
|
||||||||||||
Income tax expense
|
2.7
|
2.7
|
2.8
|
2.5
|
||||||||||||
Net income
|
8.5
|
%
|
8.2
|
%
|
8.8
|
%
|
7.5
|
%
|
August 3,
|
July 29,
|
|||||||
Assets
|
2024
|
2023
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
170,600
|
$
|
181,416
|
||||
Short-term investments
|
182,544
|
128,769
|
||||||
Inventories
|
531,286
|
498,331
|
||||||
Accounts receivable
|
1,187
|
2,935
|
||||||
Prepaid expenses and other current assets
|
9,813
|
6,810
|
||||||
Total current assets
|
895,430
|
818,261
|
||||||
Property and equipment, net
|
307,163
|
202,889
|
||||||
Operating lease right-of-use assets
|
494,169
|
455,452
|
||||||
Goodwill
|
444,850
|
444,850
|
||||||
Trade name
|
230,559
|
230,559
|
||||||
Other assets
|
2,122
|
2,145
|
||||||
Total assets
|
$
|
2,374,293
|
$
|
2,154,156
|
||||
Liabilities and Stockholders' Equity
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
589
|
$
|
575
|
||||
Accounts payable
|
129,824
|
121,144
|
||||||
Income taxes payable
|
-
|
3,741
|
||||||
Current portion of operating lease liabilities
|
87,476
|
90,540
|
||||||
Accrued expenses and other current liabilities
|
79,952
|
82,295
|
||||||
Total current liabilities
|
297,841
|
298,295
|
||||||
Revolving credit facility
|
-
|
-
|
||||||
Long-term debt
|
984
|
1,081
|
||||||
Deferred income taxes
|
72,803
|
70,950
|
||||||
Long-term portion of operating lease liabilities
|
411,994
|
368,850
|
||||||
Total liabilities
|
783,622
|
739,176
|
||||||
Stockholders' equity:
|
||||||||
Common stock
|
67
|
67
|
||||||
Additional paid-in capital
|
713,509
|
686,438
|
||||||
Retained earnings
|
1,263,275
|
1,059,673
|
||||||
Treasury - common stock
|
(386,180
|
)
|
(331,198
|
)
|
||||
Total stockholders' equity
|
1,590,671
|
1,414,980
|
||||||
Total liabilities and stockholders' equity
|
$
|
2,374,293
|
$
|
2,154,156
|
Thirteen weeks ended
|
Twenty-six weeks ended
|
|||||||||||||||
August 3,
|
July 29,
|
August 3,
|
July 29,
|
|||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Net cash provided by operating activities
|
$
|
43,875
|
$
|
73,893
|
$
|
84,059
|
$
|
109,765
|
||||||||
Net cash used in investing activities
|
(90,883
|
)
|
(14,247
|
)
|
(159,398
|
)
|
(113,558
|
)
|
||||||||
Net cash used in financing activities
|
5,358
|
(13,189
|
)
|
(20,323
|
)
|
(25,387
|
)
|
|||||||||
Net decrease in cash and cash equivalents
|
(41,650
|
)
|
46,457
|
(95,662
|
)
|
(29,180
|
)
|
|||||||||
Cash and cash equivalents at beginning of period
|
212,250
|
134,959
|
266,262
|
210,596
|
||||||||||||
Cash and cash equivalents at end of period
|
$
|
170,600
|
$
|
181,416
|
$
|
170,600
|
$
|
181,416
|
Thirteen weeks ended
|
Twenty-six weeks ended
|
|||||||||||||||
August 3,
|
July 29,
|
August 3,
|
July 29,
|
|||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Net income
|
$
|
48,982
|
$
|
42,181
|
$
|
95,324
|
$
|
73,161
|
||||||||
Excess tax benefits related to stock-based compensation(1)
|
(756
|
)
|
(481
|
)
|
(1,888
|
)
|
(709
|
)
|
||||||||
Adjusted net income
|
$
|
48,226
|
$
|
41,700
|
$
|
93,436
|
$
|
72,452
|
(1) |
Amount represents the impact from the recognition of excess tax benefits pursuant to Accounting Standards Update 2016-09, Stock Compensation.
|
Thirteen weeks ended
|
Twenty-six weeks ended
|
|||||||||||||||
August 3,
|
July 29,
|
August 3,
|
July 29,
|
|||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Net income per diluted share
|
$
|
0.79
|
$
|
0.68
|
$
|
1.54
|
$
|
1.18
|
||||||||
Adjustments as noted above, per dilutive share:
|
||||||||||||||||
Excess tax benefits related to stock-based compensation(1)
|
(0.01
|
)
|
(0.01
|
)
|
(0.03
|
)
|
(0.01
|
)
|
||||||||
Adjusted net income per diluted share (1)
|
$
|
0.78
|
$
|
0.67
|
$
|
1.51
|
$
|
1.17
|
||||||||
Diluted weighted-average common shares outstanding
|
61,721
|
62,055
|
61,731
|
62,131
|
Thirteen weeks ended
|
Twenty-six weeks ended
|
|||||||||||||||
August 3,
|
July 29,
|
August 3,
|
July 29,
|
|||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Net income
|
$
|
48,982
|
$
|
42,181
|
$
|
95,324
|
$
|
73,161
|
||||||||
Interest income, net
|
(3,928
|
)
|
(3,402
|
)
|
(8,229
|
)
|
(6,077
|
)
|
||||||||
Depreciation and amortization expenses
|
10,039
|
8,292
|
19,824
|
16,366
|
||||||||||||
Income tax expense
|
15,705
|
13,758
|
30,161
|
23,992
|
||||||||||||
EBITDA
|
70,798
|
60,829
|
137,080
|
107,442
|
||||||||||||
Non-cash stock-based compensation expense
|
3,652
|
3,141
|
6,801
|
6,004
|
||||||||||||
Adjusted EBITDA
|
$
|
74,450
|
$
|
63,970
|
$
|
143,881
|
$
|
113,446
|
Thirteen weeks ended
|
Twenty-six weeks ended
|
|||||||||||||||
August 3,
|
July 29,
|
August 3,
|
July 29,
|
|||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Number of stores open at the beginning of period
|
516
|
476
|
512
|
468
|
||||||||||||
Number of new stores
|
9
|
6
|
13
|
15
|
||||||||||||
Number of closed stores
|
-
|
-
|
-
|
(1
|
)
|
|||||||||||
Number of stores open at end of period
|
525
|
482
|
525
|
482
|
||||||||||||
Average net sales per store (1)
|
$
|
1,113
|
$
|
1,074
|
$
|
2,106
|
$
|
2,044
|
||||||||
Comparable stores sales change
|
5.8
|
%
|
7.9
|
%
|
4.5
|
%
|
6.3
|
%
|
||||||||
Comparable store count - end of period
|
475
|
434
|
475
|
434
|
(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.
|