EX-99.1 2 dex991.htm PRESS RELEASE Press release

Exhibit 99.1

 

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FOR IMMEDIATE RELEASE    Contact: Cathy Maloney
   VP Investor Relations
   508-651-6650
   cmaloney@bjs.com

BJ’S WHOLESALE CLUB ANNOUNCES SECOND QUARTER RESULTS

Updates 2009 Guidance

NATICK, MA — August 19, 2009 — BJ’s Wholesale Club, Inc. (NYSE: BJ) today reported net income for the second quarter ended August 1, 2009 of $35.1 million, or $0.64 per diluted share. For the second quarter of 2008, the Company reported net income of $36.5 million, or $0.61 per diluted share. Results for the second quarter of 2008 included income of $2.0 million post-tax, or $0.03 per diluted share, related to favorable state income tax audit settlements.

For the first half of 2009, net income was $59.4 million, or $1.09 per diluted share. For the first half of 2008, net income was $53.7 million, or $0.90 per diluted share. Results for the first half of 2008 included post-tax income of $2.0 million, or $0.03 per diluted share, related to favorable state income tax audit settlements.

Total sales for the second quarter ended August 1, 2009, decreased by 5.2% to $2.5 billion, and comparable club sales decreased by 7.7%, including a negative impact from sales of gasoline of 10.6%. Excluding the impact of gasoline, merchandise comparable club sales for the second quarter of 2009 increased by 2.9%. For the second quarter of 2008, the Company reported a comparable club sales increase of 15.5%, including a contribution from sales of gasoline of 8.1%. Excluding the impact of gasoline, merchandise comparable club sales for the second quarter of 2008 increased by 7.4%.

Company Updates Guidance for the Full Year

The Company today also updated sales and earnings guidance. For the year ending January 30, 2010, the Company now expects to report an increase in net sales of 0.5% to 1.5% and a decrease in comparable club sales of 1% to 3%, including a negative impact from gasoline sales of 6% to 8%. Merchandise comparable club sales excluding gasoline are expected to increase 4% to 6%. Previous sales guidance, provided during the Company’s first quarter conference call on May 20, 2009, was for an increase in net sales of 0.6% to 2.6%, and a decrease in comparable club sales of 2.5% to 0.5%, including a negative impact from gasoline sales of 6.5% to 8.5%. Merchandise comparable club sales excluding gasoline were expected to increase 5% to 7%.

For the full year ending January 30, 2010, the Company now expects to report net income in the range of $134 to $140 million, and diluted earnings per share in the range of $2.46 to $2.56. Previous guidance, also provided during the Company’s first quarter conference call on May 20, 2009, was for net income in the range of $132.7 million to $138.2 million, and diluted earnings per share in the range of $2.44 to $2.54.

Conference Call Information for Second Quarter Financial Results

As previously announced, at 8:30 a.m. Eastern Time today, BJ’s management plans to hold a conference call to review second quarter results and to discuss its outlook for the remainder of 2009. To access the webcast, visit http://www.bjsinvestor.com/events.cfm to hear the call live, or to listen to an archive of the call, which will be available for approximately 90 days.

About BJ’s Wholesale Club

BJ’s introduced the wholesale club concept to New England in 1984, and has since expanded to become a leading warehouse chain in the eastern United States. The Company currently operates 184 BJ’s Wholesale Clubs in 15 states. BJ’s press releases and filings with the SEC are available on the Internet at www.bjsinvestor.com.

Forward-Looking Statements

Statements contained in this press release, including earnings guidance, that are not purely historical are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements. Factors that may cause or contribute to such differences include, without limitation, levels of gasoline profitability, levels of customer demand, economic and weather conditions, federal, state and local regulation in the Company’s markets, federal budgetary and tax policy, litigation, competitive conditions and other factors discussed in the Company’s Annual Report on SEC Form 10-K for the fiscal year ended January 31, 2009. Any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.

– See Attached Financial Tables –

BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries

STATEMENTS OF INCOME (Unaudited)

(Dollars in Thousands Except Per Share Amounts)

 

     Thirteen Weeks Ended     Twenty-Six Weeks Ended  
     August 1,
2009		     August 2,
2008		     August 1,
2009		     August 2,
2008		  

Net sales

    $ 2,507,010      $ 2,644,380      $ 4,765,608      $ 4,897,508   

Membership fees

      45,255        44,348        89,642        88,362   

Other revenues

      13,869        13,952        24,855        24,566   
                                

Total revenues

      2,566,134        2,702,680        4,880,105        5,010,436   
                                

Cost of sales, including buying and occupancy costs

      2,287,388        2,443,218        4,353,405        4,533,391   

Selling, general and administrative expenses

      215,675        201,401        420,807        389,323   

Preopening expenses

      3,793        129        5,362        661   
                                

Operating income

      59,278        57,932        100,531        87,061   

Interest income (expense), net

      (116 )      484        (251 )      605   
                                

Income from continuing operations before income taxes

      59,162        58,416        100,280        87,666   

Provision for income taxes

      23,991        21,769        40,685        33,674   
                                

Income from continuing operations

      35,171        36,647        59,595        53,992   

Loss from discontinued operations, net of income taxes

      (106 )      (156 )      (194 )      (312 ) 
                                

Net income

    $ 35,065      $ 36,491      $ 59,401      $ 53,680   
                                

Basic earnings per common share:

         

Income from continuing operations

    $ 0.66      $ 0.62      $ 1.11      $ 0.92   

Loss from discontinued operations

      (0.01 )      —          —          (0.01 ) 
                                

Net income

    $ 0.65      $ 0.62      $ 1.11      $ 0.91   
                                

Diluted earnings per common share:

         

Income from continuing operations

    $ 0.64      $ 0.61      $ 1.09      $ 0.90   

Loss from discontinued operations

      —          —          —          —     
                                

Net income

    $ 0.64      $ 0.61      $ 1.09      $ 0.90   
                                

Number of common shares for earnings per share computations:

         

Basic

      53,608,984        58,818,828        53,590,792        58,769,313   

Diluted

      54,577,519        59,809,560        54,551,503        59,750,522   

BJ’s clubs in operation - end of period

      183        178       

BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries

CONDENSED BALANCE SHEETS (Unaudited)

(Dollars in Thousands)

 

     August 1,
2009		    August 2,
2008

ASSETS

      

Current assets:

      

Cash and cash equivalents

    $ 37,006    $ 116,450

Accounts receivable

      115,607      115,719

Merchandise inventories

      889,828      833,488

Current deferred income taxes

      13,192      28,254

Prepaid expenses

      28,018      27,105
             

Total current assets

      1,083,651      1,121,016

Property, net of depreciation

      927,374      868,189

Deferred income taxes

      6,404      3,495

Other assets

      23,685      22,741
             

TOTAL ASSETS

    $ 2,041,114    $ 2,015,441
             

LIABILITIES AND STOCKHOLDERS’ EQUITY

      

Current liabilities:

      

Current installments of long-term debt

    $ 587    $ 547

Accounts payable

      626,865      608,855

Closed store lease obligations

      1,748      1,948

Accrued expenses and other current liabilities

      287,012      295,022
             

Total current liabilities

      916,212      906,372

Long-term debt, less portion due within one year

      849      1,436

Noncurrent closed store lease obligations

      8,852      9,655

Other noncurrent liabilities

      108,336      112,436

Stockholders’ equity

      1,006,865      985,542
             

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

    $ 2,041,114    $ 2,015,441
             

BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

(Dollars in Thousands)

 

     Twenty-Six Weeks Ended  
     August 1,
2009		     August 2,
2008		  

CASH FLOWS FROM OPERATING ACTIVITIES

     

Net income

    $ 59,401      $ 53,680   

Provision for club closing costs

      135        146   

Depreciation and amortization

      54,541        53,047   

Share-based compensation expense

      10,583        9,511   

Deferred income taxes

      2,373        (1,088 ) 

Decrease in merchandise inventories, net of accounts payable

      7,447        38,930   

Decrease in closed store lease obligations

      (815 )      (844 ) 

Other

      1,802        (21,988 ) 
                

Net cash provided by operating activities

      135,467        131,394   
                

CASH FLOWS FROM INVESTING ACTIVITIES

     

Property additions

      (87,486 )      (49,060 ) 

Property disposals

      —          124   

Purchase of marketable securities

      (436 )      (245 ) 

Sale of marketable securities

      31        349   
                

Net cash used in investing activities

      (87,891 )      (48,832 ) 
                

CASH FLOWS FROM FINANCING ACTIVITIES

     

Excess tax benefit from exercise of stock options

      988        3,068   

Borrowing of short-term debt

      —          —     

Purchase of treasury stock

      (70,391 )      (87,307 ) 

Proceeds from issuance of common stock

      7,955        21,074   

Dividends paid

      —          —     

Repayment of long-term debt

      (279 )      (261 ) 
                

Net cash used in financing activities

      (61,727 )      (63,426 ) 
                

Net increase (decrease) in cash and cash equivalents

    $ (14,151 )    $ 19,136   
                

NOTE TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

 

1. In last year’s second quarter, the Company recorded post-tax income of $2.0 million, or $.03 per diluted share, as a result of favorable state income tax audit settlements.