Ollie’s Bargain Outlet Holdings, Inc. Reports First Quarter Fiscal 2021 Financial Results
Ollie’s Bargain Outlet Holdings reported impressive first quarter results for fiscal 2021, with net sales rising 29.5% to $452.5 million and comparable store sales up 18.8%. Diluted EPS increased 64.7% to $0.84, while adjusted diluted EPS saw a 63.3% rise to $0.80. Operating income surged 65.7% to $71.2 million with an operating margin of 15.7%. The company opened 11 new stores, bringing the total to 397. Despite the strong performance, Ollie’s is cautious about the ongoing pandemic and has not provided guidance for fiscal 2021.
- Total net sales increased 29.5% to $452.5 million.
- Comparable store sales increased 18.8%.
- Diluted EPS rose 64.7% to $0.84.
- Operating income increased 65.7% to $71.2 million.
- Adjusted EBITDA increased 59.2% to $79.2 million.
- The company has not provided guidance for fiscal 2021 due to uncertainties surrounding the pandemic.
Total Net Sales Increase
Comparable Store Sales Increase
Diluted EPS Increases
Adjusted Diluted EPS Increases
HARRISBURG, Pa., May 27, 2021 (GLOBE NEWSWIRE) -- Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) (the “Company”) today reported financial results for the first quarter ended May 1, 2021.
First Quarter Summary:
- Total net sales increased
29.5% to$452.5 million . - Comparable store sales increased
18.8% . - The Company opened 11 new stores, including two relocations, ending the quarter with 397 stores in 25 states, a year-over-year increase in store count of
10.3% . - Operating income increased
65.7% to$71.2 million and operating margin increased 340 basis points to15.7% . - Net income increased
65.1% to$55.2 million and net income per diluted share increased64.7% to$0.84 . - Adjusted net income(1) increased
64.9% to$53.1 million and adjusted net income per diluted share(1) increased63.3% to$0.80 . - Adjusted EBITDA(1) increased
59.2% to$79.2 million and adjusted EBITDA margin(1) increased 330 basis points to17.5% .
John Swygert, President and Chief Executive Officer, stated, “We are extremely pleased to have delivered strong first quarter results on the heels of an incredible 2020. Our performance reflects the power of our business model as we continue to deliver great deals to our customers. We had strong earnings flow-through as the nearly
“After the onset of COVID last year, our stores remained open to serve our customers and we experienced record sales and profits, delivering comparable stores sales growth of
(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 GAAP to these non-GAAP measures.
Fiscal 2021 Guidance
The Company continues to monitor the impact of the COVID-19 pandemic on the broader economy and, more specifically, its associates, customers, business partners and supply chain. Given the vast uncertainties regarding the pace of economic recovery and consumer demand amidst the ongoing pandemic, the Company is continuing its practice of not providing guidance for fiscal 2021.
First Quarter Results
Net sales increased
Gross profit increased
Selling, general and administrative expenses increased
Pre-opening expenses related to new stores decreased to
Operating income increased
Net income increased
Adjusted EBITDA(1) increased
Balance Sheet and Cash Flow Highlights
The Company's cash and cash equivalents balance as of the end of the first quarter of fiscal 2021 was
Inventories as of the end of the first quarter of fiscal 2021 increased
Capital expenditures in the first quarter of fiscal 2021 totaled
During the first quarter of fiscal 2021, the Company invested
Conference Call Information
A conference call to discuss first quarter fiscal 2021 financial results is scheduled for today, May 27, 2021, at 4:30 p.m. Eastern Time. Investors and analysts can participate on the conference call by dialing (800) 219-7052 or (574) 990-1029 and using conference ID #1992296. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the investor relations section on the Company’s website at http://investors.ollies.us/. The replay of the conference call webcast will be available at the investor relations website for one year.
About Ollie’s
We are a highly differentiated and fast growing, extreme value retailer of brand name merchandise at drastically reduced prices. We are known for our assortment of merchandise offered as Good Stuff Cheap®. We offer name brand products, Real Brands! Real Bargains!®, in every department, including housewares, food, books and stationery, bed and bath, floor coverings, toys, health and beauty aids and other categories. We currently operate 405 stores in 28 states throughout half of the United States. For more information, visit www.ollies.us.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections, the outlook for the Company’s future business, prospects, financial performance, including our fiscal 2021 business outlook or financial guidance, and industry outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, including, but not limited to, legislation, national trade policy, and the following: our failure to adequately procure and manage our inventory or anticipate consumer demand; changes in consumer confidence and spending; risks associated with intense competition; our failure to open new profitable stores, or successfully enter new markets, on a timely basis or at all; the risks associated with doing business with international manufacturers and suppliers including, but not limited to, potential increases in tariffs on imported goods; outbreak of viruses or widespread illness, including the continued impact of COVID-19 and continuing or renewed regulatory responses thereto; our inability to operate our stores due to civil unrest and related protests or disturbances; our failure to properly hire and to retain key personnel and other qualified personnel; risks associated with the timely and effective deployment, protection and defense of computer networks and other electronic systems, including email; our inability to obtain favorable lease terms for our properties; the failure to timely acquire, develop and open, the loss of, or disruption or interruption in the operations of, our centralized distribution centers; fluctuations in comparable store sales and results of operations, including on a quarterly basis; risks associated with our lack of operations in the growing online retail marketplace; risks associated with litigation, the expense of defense, and potential for adverse outcomes; our inability to successfully develop or implement our marketing, advertising and promotional efforts; the seasonal nature of our business; risks associated with natural disasters, whether or not caused by climate change; changes in government regulations, procedures and requirements; and our ability to service indebtedness and to comply with our financial covenants together with each of the other factors set forth under the heading “Risk Factors” in our filings with the United States Securities and Exchange Commission (“SEC”). Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Ollie’s undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and SEC filings
Investor Contact:
Jean Fontana
ICR
646-277-1214
Jean.Fontana@icrinc.com
Media Contact:
Tom Kuypers
Senior Vice President – Marketing & Advertising
717-657-2300
tkuypers@ollies.us
Ollie’s Bargain Outlet Holdings, Inc.
Condensed Consolidated Statements of Income
(In thousands except for per share amounts)
(Unaudited)
| Thirteen weeks ended | ||||||||
| May 1, | May 2, | |||||||
| 2021 | 2020 | |||||||
| Condensed consolidated statements of income data: | ||||||||
| Net sales | $ | 452,492 | $ | 349,363 | ||||
| Cost of sales | 269,882 | 208,997 | ||||||
| Gross profit | 182,610 | 140,366 | ||||||
| Selling, general and administrative expenses | 104,370 | 89,720 | ||||||
| Depreciation and amortization expenses | 4,484 | 3,944 | ||||||
| Pre-opening expenses | 2,535 | 3,722 | ||||||
| Operating income | 71,221 | 42,980 | ||||||
| Interest income, net | (25 | ) | (83 | ) | ||||
| Income before income taxes | 71,246 | 43,063 | ||||||
| Income tax expense | 16,026 | 9,607 | ||||||
| Net income | $ | 55,220 | $ | 33,456 | ||||
| Earnings per common share: | ||||||||
| Basic | $ | 0.84 | $ | 0.53 | ||||
| Diluted | $ | 0.84 | $ | 0.51 | ||||
| Weighted average common shares outstanding: | ||||||||
| Basic | 65,503 | 63,061 | ||||||
| Diluted | 66,119 | 65,242 | ||||||
| Percentage of net sales (1): | ||||||||
| Net sales | 100.0 | % | 100.0 | % | ||||
| Cost of sales | 59.6 | 59.8 | ||||||
| Gross profit | 40.4 | 40.2 | ||||||
| Selling, general and administrative expenses | 23.1 | 25.7 | ||||||
| Depreciation and amortization expenses | 1.0 | 1.1 | ||||||
| Pre-opening expenses | 0.6 | 1.1 | ||||||
| Operating income | 15.7 | 12.3 | ||||||
| Interest income, net | — | — | ||||||
| Income before income taxes | 15.7 | 12.3 | ||||||
| Income tax expense | 3.5 | 2.7 | ||||||
| Net income | 12.2 | % | 9.6 | % | ||||
| (1) Components may not add to totals due to rounding. | ||||||||
Ollie’s Bargain Outlet Holdings, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
| May 1, | May 2, | |||||||
| Assets | 2021 | 2020 | ||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 472,167 | $ | 119,351 | ||||
| Inventories | 355,193 | 343,755 | ||||||
| Accounts receivable | 363 | 4,146 | ||||||
| Prepaid expenses and other assets | 5,526 | 5,184 | ||||||
| Total current assets | 833,249 | 472,436 | ||||||
| Property and equipment, net | 142,354 | 135,214 | ||||||
| Operating lease right-of-use assets | 390,111 | 357,553 | ||||||
| Goodwill | 444,850 | 444,850 | ||||||
| Trade name | 230,559 | 230,559 | ||||||
| Other assets | 2,368 | 2,499 | ||||||
| Total assets | $ | 2,043,491 | $ | 1,643,111 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 327 | $ | 300 | ||||
| Accounts payable | 90,378 | 56,642 | ||||||
| Income taxes payable | 26,051 | 13,811 | ||||||
| Current portion of operating lease liabilities | 61,589 | 61,002 | ||||||
| Accrued expenses and other | 76,675 | 58,666 | ||||||
| Total current liabilities | 255,020 | 190,421 | ||||||
| Revolving credit facility | - | - | ||||||
| Long-term debt | 610 | 576 | ||||||
| Deferred income taxes | 65,817 | 59,194 | ||||||
| Long-term operating lease liabilities | 335,398 | 298,736 | ||||||
| Other long-term liabilities | 4 | 5 | ||||||
| Total liabilities | 656,849 | 548,932 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 66 | 64 | ||||||
| Additional paid-in capital | 655,069 | 617,188 | ||||||
| Retained earnings | 781,487 | 517,027 | ||||||
| Treasury - common stock | (49,980 | ) | (40,100 | ) | ||||
| Total stockholders’ equity | 1,386,642 | 1,094,179 | ||||||
| Total liabilities and stockholders’ equity | $ | 2,043,491 | $ | 1,643,111 | ||||
Ollie’s Bargain Outlet Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Thirteen weeks ended | ||||||||
| May 1, | May 2, | |||||||
| 2021 | 2020 | |||||||
| Net cash provided by operating activities | $ | 40,123 | $ | 41,370 | ||||
| Net cash used in investing activities | (9,412 | ) | (12,374 | ) | ||||
| Net cash (used in) provided by financing activities | (5,670 | ) | 405 | |||||
| Net increase in cash and cash equivalents | 25,041 | 29,401 | ||||||
| Cash and cash equivalents at the beginning of the period | 447,126 | 89,950 | ||||||
| Cash and cash equivalents at the end of the period | $ | 472,167 | $ | 119,351 | ||||
Ollie’s Bargain Outlet Holdings, Inc.
Supplemental Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(Dollars in thousands)
(Unaudited)
The Company reports its financial results in accordance with GAAP. We have included the non-GAAP measures of EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted share in this press release as these are key measures used by our management and our board of directors to evaluate our operating performance and the effectiveness of our business strategies, make budgeting decisions, and evaluate compensation decisions. Management believes it is useful to investors and analysts to evaluate these non-GAAP measures on the same basis as management uses to evaluate the Company’s operating results. We believe that excluding items that may not be indicative of, or are unrelated to, our core operating results, and that may vary in frequency or magnitude from net income and net income per diluted share, enhances the comparability of our results and provides a better baseline for analyzing trends in our business.
The tables below reconcile the most directly comparable GAAP measure to non-GAAP financial measures: net income to adjusted net income, net income per diluted share to adjusted net income per diluted share, and net income to EBITDA and adjusted EBITDA.
Adjusted net income and adjusted net income per diluted share exclude excess tax benefits related to stock-based compensation, which may not occur with the same frequency or magnitude in future periods. We define EBITDA as net income before net interest income or expense, depreciation and amortization expenses and income taxes. Adjusted EBITDA represents EBITDA as further adjusted for non-cash stock-based compensation expense.
Non-GAAP financial measures should be viewed as supplementing, and not as an alternative to or substitute for, the Company’s financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the Company's financial position, results of operations and cash flows and should therefore be considered in assessing the Company's actual financial condition and performance. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies.
Ollie’s Bargain Outlet Holdings, Inc.
Supplemental Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands except for per share amounts)
(Unaudited)
Reconciliation of GAAP net income to adjusted net income
| Thirteen weeks ended | ||||||||
| May 1, | May 2, | |||||||
| 2021 | 2020 | |||||||
| Net income | $ | 55,220 | $ | 33,456 | ||||
| Excess tax benefits related to stock-based compensation(1) | (2,095 | ) | (1,247 | ) | ||||
| Adjusted net income | $ | 53,125 | $ | 32,209 | ||||
(1) Amount represents the impact from the recognition of excess tax benefits pursuant to Accounting Standards Update 2016-09, Stock Compensation.
Reconciliation of GAAP net income per diluted share to adjusted net income per diluted share
| Thirteen weeks ended | ||||||||
| May 1, | May 2, | |||||||
| 2021 | 2020 | |||||||
| Net income per diluted share | $ | 0.84 | $ | 0.51 | ||||
| Adjustments as noted above, per diluted share: | ||||||||
| Excess tax benefits related to stock-based compensation | (0.03 | ) | (0.02 | ) | ||||
| Adjusted net income per diluted share(1) | $ | 0.80 | $ | 0.49 | ||||
| Diluted weighted-average common shares outstanding | 66,119 | 65,242 | ||||||
| (1)Totals may not foot due to rounding. | ||||||||
Ollie’s Bargain Outlet Holdings, Inc.
Supplemental Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(Dollars in thousands)
(Unaudited)
Reconciliation of GAAP net income to EBITDA and adjusted EBITDA
| Thirteen weeks ended | ||||||||
| May 1, | May 2, | |||||||
| 2021 | 2020 | |||||||
| Net income | $ | 55,220 | $ | 33,456 | ||||
| Interest income, net | (25 | ) | (83 | ) | ||||
| Depreciation and amortization expenses | 5,918 | 5,410 | ||||||
| Income tax expense | 16,026 | 9,607 | ||||||
| EBITDA | 77,139 | 48,390 | ||||||
| Non-cash stock-based compensation expense | 2,020 | 1,319 | ||||||
| Adjusted EBITDA | $ | 79,159 | $ | 49,709 | ||||
Key Statistics
| Thirteen weeks ended | ||||||||
| May 1, | May 2, | |||||||
| 2021 | 2020 | |||||||
| Number of stores open at beginning of period | 388 | 345 | ||||||
| Number of new stores | 11 | 17 | ||||||
| Number of closed stores | (2 | ) | (2 | ) | ||||
| Number of stores open at end of period | 397 | 360 | ||||||
| Average net sales per store (1) | $ | 1,150 | $ | 986 | ||||
| Comparable stores sales change | (3.3)% | |||||||
| Comparable store count – end of period | 341 | 301 | ||||||
(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.
FAQ
What were Ollie’s sales figures for the first quarter of fiscal 2021?
How much did Ollie’s diluted EPS increase in the first quarter of fiscal 2021?
What factors contributed to Ollie’s strong financial performance in Q1 2021?
Did Ollie’s provide guidance for fiscal 2021?
How many new stores did Ollie’s open in the first quarter of fiscal 2021?
