BJ's Wholesale Club Announces Second Quarter Results.Announces Additional $200 Million Share Repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. Authorization Updates 2008 Earnings Guidance NATICK, Mass. -- BJ's Wholesale Club BJ's Wholesale Club, Inc. NYSE: BJ is a membership-only warehouse club chain operating in the East Coast of the United States, as well as in the state of Ohio. History , Inc. (NYSE NYSE See: New York Stock Exchange : BJ) today reported net income for the second quarter of 2008 of $36.5 million, or $.61 per diluted share. Results for the second quarter of 2008 included income of $2.0 million post-tax, or $.03 per diluted share, related to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. state income tax audit settlements. For the second quarter of 2007, net income was $36.3 million, or $.55 per diluted share. Results for the second quarter of 2007 included income of $2.4 million post-tax, or $.04 per diluted share, related to the disposition of a lease for one of the two ProFoods Restaurant Supply locations closed by the Company in January 2007, as well as income of $3.6 million post-tax, or $.05 per diluted share, from favorable state income tax audit settlements. For the first half of 2008, net income was $53.7 million, or $.90 per diluted share. These results included post-tax income of $2.0 million, or $.03 per diluted share, for the favorable state income tax audit settlements in the second quarter. For the first half of 2007, net income was $49.9 million, or $.76 per diluted share. These results included post-tax income of $5.9 million, or $.09 per diluted share, in the second quarter due primarily to the favorable state income tax audit settlements and the settlement of the ProFoods lease noted in the second paragraph above; and post-tax income of $0.6 million, or $.01 per diluted share, from the sale of pharmacy related assets during the first quarter of 2007. Total sales for the second quarter of 2008 increased by 17.9% to $2.65 billion compared with $2.25 billion for the second quarter of 2007. Comparable club sales increased by 15.5% for the second quarter of 2008, including a contribution from sales of gasoline of 8.1%. The Company also announced today that its board of directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: an additional $200 million for share repurchases. During the second quarter, the Company purchased approximately 1.4 million shares of BJ's common stock at an average cost of $37.45 per share, or approximately $54 million in the aggregate. During the 26-week period ended August 2, 2008, the Company purchased approximately 2.4 million shares of BJ's common stock at an average cost of $35.30 per share, or approximately $83 million. Including the $200 million authorization announced today, the Company has approximately $291 million available for share repurchases. In addition, the Company is raising its earnings guidance for fiscal 2008 to a range of $2.10 to $2.20 per diluted share. Previous guidance was in the range of $2.04 to $2.14 per diluted share. 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 2008. To access the webcast, visit www.bjsinvestor.com/medialist.cfm to hear the call live, or to listen to an archive of the call, which will be available for approximately ninety days. About BJ's Wholesale Club BJ's introduced the wholesale club concept to New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. in 1984, and has since expanded to become a leading warehouse chain in the eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company currently operates 178 BJ's Wholesale Clubs in 16 states. BJ's press releases and filings with the SEC are available on the Internet at www.bjsinvestor.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Statements contained in this press release, including earnings guidance, that are not purely historical are forward-looking statements for purposes of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions under The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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, state and local regulation in the Company's markets, and competitive conditions and other factors discussed in the Company's Annual Report on SEC Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended February 2, 2008. 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 dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any obligation to do so, even if our estimates change. BJ-E [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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