EX-99.2 3 dex992.htm SUPPLEMENTAL INFORMATION Supplemental Information

Exhibit 99.2

BJ’s Wholesale Club, Inc.

Supplemental Information as of January 30, 2010

The following supplemental information is provided by the Company with respect to the results reported for the fourth quarter and full year ended January 30, 2010, as well as earnings guidance for the year ending January 29, 2011 (“fiscal 2010”).

Comparative Club Sales by Major Market

Comparative club sales by major market, including the impact from sales of gasoline were as follows:

 

     Thirteen Weeks Ended January 30, 2010     Fifty-Two Weeks Ended January 30, 2010  
     Comparable
Club Sales
    Impact of
Gasoline Sales
    Merchandise
Comparable
Club Sales
    Comparable
Club Sales
    Impact of
Gasoline Sales
    Merchandise
Comparable
Club Sales
 

New England

   5.1   2.2   2.9   (1.4 )%    (5.6 )%    4.2

Upstate New York

   5.3   3.5   1.8   (6.4 )%    (9.6 )%    3.2

Metro New York

   3.5   0.7   2.8   4.2   (1.0 )%    5.2

Mid Atlantic

   2.2   2.3   (0.1 )%    (3.4 )%    (5.6 )%    2.2

Southeast

   6.3   3.7   2.6   (5.7 )%    (9.5 )%    3.8
                                    

Total

   4.6   2.3   2.3   (1.9 )%    (5.9 )%    4.0
                                    

Selected Metrics

Excluding sales of gasoline, on a comparable club basis, customer count and average transaction amount increased (decreased) from the prior year by approximately:

 

     Customer
Count
    Average
Transaction
Amount
 

Thirteen Weeks Ended January 30, 2010

   4   (2 )% 

Fifty-Two Weeks Ended January 30, 2010

   5   (1 )% 

Fourth Quarter Individual Department Performance

Stronger performing departments compared to last year’s fourth quarter included breakfast foods, candy, cigarettes, computers, frozen, health & beauty aids, household chemicals, housewares, juices, paper products, produce, residential furniture, salty snacks and small appliances. Weaker performing departments compared to last year’s fourth quarter included automotive and tools, jewelry, pre-recorded video, sporting goods, televisions, toys and trash bags.

 

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GAAP to Non-GAAP Reconciliation

The following is a reconciliation of net income and diluted earnings per share, as reported on a GAAP basis, to the non-GAAP normalized net income and diluted earnings per share referenced in our earnings call, for the thirteen weeks and fifty-two weeks ended January 30, 2010 and January 31, 2009:

 

     Thirteen Weeks Ended     Fifty-Two Weeks Ended  
(Dollars in Thousands)    January 30,
2010
    January 31,
2009
    January 30,
2010
    January 31,
2009
 

GAAP net income

   $ 55,065      $ 52,659      $ 132,136      $ 134,583   

Charge for wage and hour litigation settlement

     —          —          6,938        —     

MasterCard® and Visa® class action settlement

     (1,789     —          (1,789     —     

Income related to reserve for credit card claims

     (1,724     —          (1,724     —     

Income related to tax audit settlements

     —          (1,326     —          (3,333

Expense related to Greenville club closure

     —          —          —          504   
                                

Net income excluding unusual items

   $ 51,552      $ 51,333      $ 135,561      $ 131,754   

Gasoline income above plan

     —          —          —          (9,997

Unplanned severance costs and sales tax audit adjustment

     —          —          —          2,614   

Higher than planned bonus accruals triggered by gasoline income

     —          —          —          1,627   
                                

Total unusual items

     —          —          —          (5,756
                                

Non-GAAP normalized net income

   $ 51,552      $ 51,333      $ 135,561      $ 125,998   
                                
     Thirteen Weeks Ended     Fifty-Two Weeks Ended  
     January 30,
2010
    January 31,
2009
    January 30,
2010
    January 31,
2009
 

GAAP diluted earnings per common share

   $ 1.01      $ 0.91      $ 2.42      $ 2.28   

Charge for wage and hour litigation settlement

     —          —          0.13        —     

MasterCard® and Visa® class action settlement

     (0.03     —          (0.03     —     

Income related to reserve for credit card claims

     (0.03     —          (0.03     —     

Income related to tax audit settlements

     —          (0.02     —          (0.06

Expense related to Greenville club closure

     —          —          —          0.01   
                                

Diluted earnings per common share excluding unusual items

   $ 0.95      $ 0.89      $ 2.48      $ 2.23   

Gasoline income above plan

     —          —          —          (0.17

Unplanned severance costs and sales tax audit adjustment

     —          —          —          0.04   

Higher than planned bonus accruals triggered by gasoline income

     —          —          —          0.03   
                                

Total unusual items

     —          —          —          (0.10
                                

Non-GAAP normalized diluted earnings per common share

   $ 0.95      $ 0.89      $ 2.48      $ 2.14   
                                

 

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GAAP to Non-GAAP Earnings Guidance Reconciliation

The following is a reconciliation of net income and diluted earnings per share guidance, as reported on a GAAP basis, to the adjusted non-GAAP net income and diluted earnings per share guidance referenced in our earnings call, for the thirteen weeks ending May 1, 2010 and fifty-two weeks ending January 29, 2011, as well as actual results for last year’s comparable periods:

 

     Thirteen Weeks    Fifty-Two Weeks  
(Dollars in Thousands)    Ending
May 1,
2010
   Ended
May 2,
2009
   Ending
January 29,
2011
   Ended
January 30,
2010
 

GAAP net income

   $21,300 - $23,700    $ 24,335    $133,100 - $138,100    $ 132,136   

Charge for wage and hour litigation settlement

   —        —      —        6,938   

MasterCard® and Visa® class action settlement

   —        —      —        (1,789

Income related to reserve for credit card claims

   —        —      —        (1,724
                         

Adjusted non-GAAP earnings

   $21,300 - $23,700    $ 24,335    $133,100 - $138,100    $ 135,561   
                         
     Thirteen Weeks    Fifty-Two Weeks  
     Ending
May 1,
2010
   Ended
May 2,
2009
   Ending
January 29,
2011
   Ended
January 30,
2010
 

GAAP diluted earnings per common share

   $0.40 -$0.45    $ 0.45    $2.54 - $2.64    $ 2.42   

Charge for wage and hour litigation settlement

   —        —      —        0.13   

MasterCard® and Visa® class action settlement

   —        —      —        (0.03

Income related to reserve for credit card claims

   —        —      —        (0.03
                         

Adjusted non-GAAP earnings per common share

   $0.40 - $0.45    $ 0.45    $2.54 - $2.64    $ 2.48   
                         

 

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Operating Income to Non-GAAP Normalized Operating Income plus Depreciation Expense plus Stock Incentive Expense Reconciliation

The following is a reconciliation of operating income, as reported on a GAAP basis, to non-GAAP normalized operating income plus depreciation plus stock incentive expense referenced in our earnings call, for the fifty-two weeks ended January 30, 2010 and January 31, 2009, as well as guidance on the same basis for the fifty-two weeks ending January 29, 2011:

 

     Fifty-Two Weeks  
(Dollars in Thousands)    Ending
January 29,
2011
   Ended
January 30,
2010
    Ended
January 31,
2009
 

GAAP operating income

   $227,000 - $235,000    $ 223,787      $ 220,927   

Charge for wage and hour litigation settlement

   —        11,700        —     

MasterCard® and Visa® class action settlement

   —        (3,011     —     

Income related to reserve for credit card claims

   —        (2,902     —     
                     

Operating income excluding unusual items

   $227,000 - $235,000    $ 229,574      $ 220,927   

Gasoline income above plan

   —        —          (16,858

Unplanned severance costs and sales tax audit adjustment

   —        —          4,408   

Higher than planned bonus accruals triggered by gasoline income

   —        —          2,744   
                     

Total unusual items

   —        —          (9,706
                     

Non-GAAP normalized operating income

   $227,000 - $235,000    $ 229,574      $ 211,221   

Depreciation expense

   $130,000 - $136,000      112,777        107,608   

Stock incentive expense

   $20,500 - $21,000      22,011        19,398   
                     

Non-GAAP normalized operating income plus depreciation expense plus stock incentive expense

   $380,000 - $390,000    $ 364,362      $ 338,227   
                     

 

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Earnings Guidance

The following chart presents the detailed elements of our sales and earnings guidance for Fiscal 2010:

 

     1st Quarter    Full Year

Net sales increase

   12.6% to 14.6%    8.6% to 12.6%

Comparable club sales increase

   6.5% to 8.5%    4.0% to 6.0%

Impact of gasoline sales on comparable club sales

   3.0% to 4.0%    0.5% to 2.5%

Merchandise comparable club sales increase

   3.0% to 5.0%    2.5% to 4.5%

Membership fee growth

   4.5% to 5.5%    4.5% to 5.5%

Other revenues growth

   11.0% to 13.0%    9.5% to 11.5%

Cost of sales as a percent of net sales increase

   0.32% to 0.42%    0.00% to 0.20%

Merchandise margin rate increase (decrease)

   (0.05)% to (0.15)%    0.15% to 0.25%

SG&A expense as a percent of net sales increase (decrease)

   (0.12)% to (0.28)%    0.05% to (0.15)%

SG&A expense growth

   10.0% to 12.0%    5.0% to 15.0%

Preopening expense (in millions)

   $2.0 to $2.5    $7.0 to $9.0

Interest expense (in millions)

   $0.3 to $0.9    $2.0 to $3.0

Income Tax Rate

   40.6%    40.6%

Forward-Looking Statements

This exhibit contains forward-looking statements as defined by The Private Securities Litigation Reform Act of 1995, including earnings guidance. 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, the rate of deflation, 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.

 

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