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 REPORTS THIRD QUARTER RESULTS

November 18, 2009, Natick, MA — BJ’s Wholesale Club, Inc. (NYSE: BJ) today reported net income of $17.7 million, or $0.32 per diluted share, for the third quarter of 2009. These results included a charge of $11.7 million pre-tax ($6.9 million post-tax), or $0.13 per diluted share, to establish a reserve in connection with the proposed settlement of a legal claim. The settlement, which is subject to court approval, resolves wage and hour job classification claims.

For the third quarter of 2008, the Company reported net income of $28.2 million, or $0.48 per diluted share. These results included post-tax expense of $0.5 million, or $0.01 per diluted share, related to the closing of the Company’s Greenville, South Carolina, club. Results for the third quarter of 2008 also reflected a number of unplanned income and expense items which resulted in a net benefit of approximately $0.10 per diluted share. These items included gasoline income which exceeded plan by approximately $0.17 per share, due primarily to unprecedented market conditions which resulted in unusually strong gasoline sales and profits. Unplanned expenses related to severance costs and an adjustment to the Company’s reserve for state sales tax audits were worth approximately $0.04 per share in total. In addition, expenses for higher than planned bonus accruals, triggered by earnings that were above plan, were worth approximately $0.03 per diluted share.

For the first nine months of 2009, net income was $77.1 million, or $1.41 per diluted share. These results included the third quarter charge, as mentioned above. For the first nine months of 2008, the Company reported net income of $81.9 million, or $1.38 per diluted share. Results for the first nine months of 2008 included the club closing expense and unusual income and expense items from the third quarter, as mentioned above, and income of $0.03 per share related to state income tax audit settlements recorded during the second quarter.

Net sales for the third quarter ended October 31, 2009, increased by 2.0% to $2.45 billion from $2.40 billion. For the first nine months of fiscal 2009, net sales decreased by 1.2% to $7.22 billion from $7.30 billion.

Comparable club sales for the third quarter and nine-month period were as follows:

 

     Three Months
Ended
October 31,		     Nine Months
Ended
October 31,		  
     2009     2009  

Merchandise comparable club sales

    3.9 %    4.7 % 

Impact of gasoline sales

    (6.4 %)    (8.8 %) 
            

Comparable club sales

    (2.5 %)    (4.1 %) 
            

-More-

BJ’s Wholesale Club

November 18, 2009

Page 2

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. As of the end of the third quarter of 2009, the Company operated 184 clubs in 15 states. BJ’s press releases and filings with the SEC are available on the Internet at www.bjs.com.

Conference Calls on Third Quarter and Fiscal Year-End Financial Results

As previously announced, BJ’s management will hold a conference call to discuss the third quarter financial results and management’s outlook for the rest of the year today at 8:30 a.m. Eastern Time. To access the webcast (including financial and other statistical information being presented, as well as reconciliation information with respect to non-GAAP financial measures), visit www.bjsinvestor.com/events.cfm. An archive of the webcast will be available for approximately 90 days following the call.

On Wednesday, March 3, 2010, BJ’s management plans to report the Company’s results for the fourth quarter and fiscal year ending on January 30, 2010.

Additional Information

Supplemental financial information, including detailed sales information for the third quarter and earnings guidance for the fourth quarter and full year, 2009, which historically has been provided during the Company’s third quarter earnings conference call, is available on the Form 8-K, submitted by the Company today to the SEC. To access this information, visit www.bjsinvestor.com/sec.cfm.

-See Financial Tables-

BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries

STATEMENTS OF INCOME (Unaudited)

(Dollars in Thousands Except Per Share Amounts)

 

     Thirteen Weeks Ended     Thirty-Nine Weeks Ended  
     October 31,
2009		     November 1,
2008		     October 31,
2009		     November 1,
2008		  

Net sales

    $ 2,450,435      $ 2,402,644      $ 7,216,043      $ 7,300,152   

Membership fees

      45,949        44,513        135,591        132,875   

Other revenues

      12,674        11,784        37,529        36,350   
                                

Total revenues

      2,509,058        2,458,941        7,389,163        7,469,377   
                                

Cost of sales, including buying and occupancy costs

      2,245,068        2,202,440        6,598,473        6,735,831   

Selling, general and administrative expenses

      231,608        207,472        652,415        596,795   

Preopening expenses

      1,954        1,016        7,316        1,677   
                                

Operating income

      30,428        48,013        130,959        135,074   

Interest income (expense), net

      (125 )      188        (376 )      793   
                                

Income from continuing operations before income taxes

      30,303        48,201        130,583        135,867   

Provision for income taxes

      12,529        19,181        53,214        52,854   
                                

Income from continuing operations

      17,774        29,020        77,369        83,013   

Loss from discontinued operations, net of income taxes

      (104 )      (776 )      (298 )      (1,089 ) 
                                

Net income

    $ 17,670      $ 28,244      $ 77,071      $ 81,924   
                                

Basic earnings per common share:

         

Income from continuing operations

    $ 0.33      $ 0.50      $ 1.44      $ 1.42   

Loss from discontinued operations

      —          (0.01 )      —          (0.02 ) 
                                

Net income

    $ 0.33      $ 0.49      $ 1.44      $ 1.40   
                                

Diluted earnings per common share:

         

Income from continuing operations

    $ 0.32      $ 0.49      $ 1.42      $ 1.40   

Loss from discontinued operations

      —          (0.01 )      (0.01 )      (0.02 ) 
                                

Net income

    $ 0.32      $ 0.48      $ 1.41      $ 1.38   
                                

Number of common shares for earnings per share computations:

         

Basic

      53,756,055        57,786,650        53,645,880        58,441,759   

Diluted

      54,794,276        58,749,554        54,633,062        59,417,655   

BJ’s clubs in operation - end of period

      184        177       

BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries

CONDENSED BALANCE SHEETS (Unaudited)

(Dollars in Thousands)

 

     October 31,
2009		    November 1,
2008

ASSETS

      

Current assets:

      

Cash and cash equivalents

    $ 55,066    $ 52,831

Accounts receivable

      125,644      102,145

Merchandise inventories

      971,868      977,995

Current deferred income taxes

      12,820      29,211

Prepaid expenses

      43,378      29,749
             

Total current assets

      1,208,776      1,191,931

Property, net of depreciation

      949,889      880,886

Deferred income taxes

      5,511      3,894

Other assets

      26,574      22,676
             

TOTAL ASSETS

    $ 2,190,750    $ 2,099,387
             

LIABILITIES AND STOCKHOLDERS’ EQUITY

      

Current liabilities:

      

Current installments of long-term debt

    $ 597    $ 557

Accounts payable

      713,388      666,835

Closed store lease obligations

      1,727      2,639

Accrued expenses and other current liabilities

      318,795      307,442
             

Total current liabilities

      1,034,507      977,473

Long-term debt, less portion due within one year

      696      1,293

Noncurrent closed store lease obligations

      8,575      9,206

Other noncurrent liabilities

      112,103      115,710

Stockholders’ equity

      1,034,869      995,705
             

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

    $ 2,190,750    $ 2,099,387
             

BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

(Dollars in Thousands)

 

     Thirty-Nine Weeks Ended  
     October 31,
2009		     November 1,
2008		  

CASH FLOWS FROM OPERATING ACTIVITIES

     

Net income

    $ 77,071      $ 81,924   

Provision for club closing costs

      274        1,101   

Depreciation and amortization

      83,264        80,193   

Share-based compensation expense

      16,201        14,423   

Deferred income taxes

      3,638        (2,444 ) 

(Increase) decrease in merchandise inventories, net of accounts payable

      12,618        (51,379 ) 

Decrease in closed store lease obligations

      (1,220 )      (1,657 ) 

Other

      781        2,033   
                

Net cash provided by operating activities

      192,627        124,194   
                

CASH FLOWS FROM INVESTING ACTIVITIES

     

Property additions

      (131,181 )      (90,714 ) 

Property disposals

      —          8,605   

Purchase of marketable securities

      (436 )      (245 ) 

Sale of marketable securities

      31        349   
                

Net cash used in investing activities

      (131,586 )      (82,005 ) 
                

CASH FLOWS FROM FINANCING ACTIVITIES

     

Excess tax benefit from exercise of stock options

      1,036        3,276   

Purchase of treasury stock

      (70,391 )      (113,190 ) 

Proceeds from issuance of common stock

      12,645        23,636   

Repayment of long-term debt

      (422 )      (394 ) 
                

Net cash used in financing activities

      (57,132 )      (86,672 ) 
                

Net increase (decrease) in cash and cash equivalents

    $ 3,909      $ (44,483 )