EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

LOGO    News

 

FOR IMMEDIATE RELEASE

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

 

BJ’S WHOLESALE CLUB ANNOUNCES FIRST QUARTER EARNINGS

Updates Full Year 2010 Earnings Guidance to a Range of $2.58 to $2.68

NATICK, MA — May 19, 2010BJ’s Wholesale Club, Inc. (NYSE: BJ) today reported net income for the first quarter of 2010 of $26.1 million, or $0.49 per diluted share. For the first quarter of 2009, the Company reported net income of $24.3 million, or $0.45 per diluted share.

Net sales for the first quarter of 2010 increased by 12.9% to $2.55 billion and comparable club sales increased by 7.8%, including a contribution from sales of gasoline of 3.6%. Excluding the impact of gasoline, merchandise comparable club sales increased by 4.2%. Net sales for the first quarter of 2009 increased by 0.2% to $2.26 billion and comparable club sales decreased by 1.5%, including the negative impact from sales of gasoline of 9.0%. Excluding the impact of gasoline, merchandise comparable club sales increased by 7.5%.

During the first quarter of 2010, the Company repurchased 272,800 shares of BJ’s common stock at an average price of $33.69 per share, for a total expenditure of approximately $9.2 million. As of May 1, 2010, approximately $272.0 million remained available for stock repurchases under existing board authorizations.

Revised Earnings Guidance for Fiscal 2010

The Company today also announced revised earnings guidance. For the year ending January 29, 2011, the Company now expects to report earnings per diluted share in the range of $2.58 to $2.68 and net income in the range of $136.9 million to $141.9 million. Previous guidance was for earnings per diluted share in the range of $2.54 to $2.64 and net income in the range of $133.1 million to $138.1 million.

Conference Call Information for First 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 results for the first quarter of 2010 and to discuss its outlook for the second quarter and full year. To access the webcast, visit www.bjsinvestor.com to hear the call live, or to listen to an archive of the call, which will be available for approximately ninety days following the call.

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 club chain in the eastern United States. The Company currently operates 188 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.

Additional Information

Supplemental financial information, including detailed sales information for the first quarter and earnings guidance for the second quarter and full year, 2010, which has historically been provided during the Company’s first quarter 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.

-More-


BJ’s Wholesale Club

May 19, 2010

Page 2

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, the rate of inflation or deflation, federal, state and local regulation in the Company’s markets, federal budgetary and tax policy, litigation, competitive conditions, progress associated with the implementation of technology initiatives and other factors discussed in the Company’s Annual Report on SEC Form 10-K for the fiscal year ended January 30, 2010. 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  
     May 1, 2010     May 2, 2009  

Net sales

   $ 2,548,961      $ 2,258,598   

Membership fees

     46,982        44,387   

Other revenues

     12,171        10,986   
                

Total revenues

     2,608,114        2,313,971   
                

Cost of sales, including buying and occupancy costs

     2,331,906        2,066,017   

Selling, general and administrative expenses

     229,866        205,132   

Preopening expenses

     1,954        1,569   
                

Operating income

     44,388        41,253   

Interest expense, net

     (227     (135
                

Income from continuing operations before income taxes

     44,161        41,118   

Provision for income taxes

     17,974        16,694   
                

Income from continuing operations

     26,187        24,424   

Loss from discontinued operations, net of income taxes

     (98     (88
                

Net income

   $ 26,089      $ 24,336   
                

Basic earnings per common share:

    

Income from continuing operations

   $ 0.50      $ 0.46   

Loss from discontinued operations

     —          (0.01
                

Net income

   $ 0.50      $ 0.45   
                

Diluted earnings per common share:

    

Income from continuing operations

   $ 0.49      $ 0.45   

Loss from discontinued operations

     —          —     
                

Net income

   $ 0.49      $ 0.45   
                

Number of common shares for earnings per share computations:

    

Basic

     51,984,549        53,572,601   

Diluted

     53,311,957        54,446,255   

BJ’s clubs in operation - end of period

     188        180   


BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries

CONDENSED BALANCE SHEETS (Unaudited)

(Dollars in Thousands)

 

     May 1, 2010    May 2, 2009

ASSETS

     

Current assets:

     

Cash and cash equivalents

   $ 63,647    $ 40,024

Accounts receivable

     131,868      119,238

Merchandise inventories

     932,623      883,442

Current deferred income taxes

     17,577      13,918

Prepaid expenses

     36,569      29,629
             

Total current assets

     1,182,284      1,086,251

Property, net of depreciation

     966,443      918,878

Deferred income taxes

     5,897      7,218

Other assets

     26,084      22,924
             

TOTAL ASSETS

   $ 2,180,708    $ 2,035,271
             

LIABILITIES AND STOCKHOLDERS’ EQUITY

     

Current liabilities:

     

Current installments of long-term debt

   $ 619    $ 577

Short-term debt

     —        35,000

Accounts payable

     685,639      621,141

Closed store lease obligations

     1,725      1,857

Accrued expenses and other current liabilities

     294,670      302,120
             

Total current liabilities

     982,653      960,695

Long-term debt, less portion due within one year

     381      1,000

Noncurrent closed store lease obligations

     7,967      9,164

Other noncurrent liabilities

     124,620      105,886

Stockholders’ equity

     1,065,087      958,526
             

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 2,180,708    $ 2,035,271
             


BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

(Dollars in Thousands)

 

     Thirteen Weeks Ended  
     May 1, 2010     May 2, 2009  

CASH FLOWS FROM OPERATING ACTIVITIES

    

Net income

   $ 26,089      $ 24,336   

(Reversal of) provision for closing and impairment costs

     (72     28   

Depreciation and amortization

     30,088        27,042   

Share-based compensation expense

     5,345        4,850   

Deferred income taxes

     331        833   

Decrease in merchandise inventories, net of accounts payable

     26,373        9,356   

Decrease in closed store lease obligations

     (419     (318

Other

     (40,771     5,050   
                

Net cash provided by operating activities

     46,964        71,177   
                

CASH FLOWS FROM INVESTING ACTIVITIES

    

Property additions

     (38,603     (46,557

Property disposals

     16        —     

Purchase of marketable securities

     (500     (436

Sale of marketable securities

     1,032        31   
                

Net cash used in investing activities

     (38,055     (46,962
                

CASH FLOWS FROM FINANCING ACTIVITIES

    

Excess tax benefit from exercise of stock options

     252        5   

Borrowing of short-term debt

     —          35,000   

Purchase of treasury stock

     (9,190     (70,410

Proceeds from issuance of common stock

     5,072        195   

Repayment of long-term debt

     (148     (138
                

Net cash used in financing activities

     (4,014     (35,348
                

Net increase (decrease) in cash and cash equivalents

   $ 4,895      $ (11,133