BJ's Wholesale Club Reports First Quarter EPS of $.32.Business Editors NATICK Natick (nā`tĭk), town (1990 pop. 30,510), Middlesex co., E Mass., a residential and industrial suburb of Boston, on Lake Cochituate; founded as a Native American village by John Eliot 1651, settled by colonial Americans 1718, inc. 1781. , Mass.--(BUSINESS WIRE)--May 21, 2002 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 of $23.1 million for its first quarter ended May 4, 2002 versus $23.0 million recorded in the first quarter of 2001. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of rose 3.2% to $.32 from $.31 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the first quarter of 2001. First quarter results include preopening expenses of $3.3 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , an increase of $3 million over last year's first quarter, due to the earlier timing of this year's new club openings. Results for the first quarter also include a non-operating interest accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the charge of $1.4 million pre- pre- word element [L.], before (in time or space). pre- pref. 1. Earlier; before; prior to: prenatal. 2. tax ($0.9 million post tax, or $.01 per diluted share), related to BJ's liability for House2Home leases (see note to condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. financial statements attached). Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter rose 11.1% to $1.260 billion from $1.134 billion recorded in 2001. Comparable club sales for the quarter increased by 4.0%. Jack Nugent Nugent may refer to one of the following:
Noun 1. mid-February - the middle part of February period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue and mid-April Noun 1. mid-April - the middle part of April period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" Apr, April - the month following March and preceding May . However, these gains were partially offset by unseasonably cool and wet weather during the second half of April." The company also announced that it repurchased 453,000 shares of stock during the first quarter at an average cost of $43.18 per share, or a total of $19.6 million. Conference Call on First Quarter Financial Results As previously announced, BJ's management will hold a conference call to discuss financial results for the first quarter ended May 4, 2002. The call is scheduled to begin at 8:30 a.m. Eastern Time, today, May 21, 2002. The conference call will be broadcast live on BJ's web site; it will be directly available as follows: www.bjsinvestor.com/medialist.cfm. Replays will be available at the same web address through May 28, 2002. BJ's press releases and filings with the Securities and Exchange Commission are available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.bjs.com. 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. . At the end of the first quarter, BJ's operated 134 clubs and 57 gas stations compared with 118 clubs and 36 gas stations a year ago.
BJ's Wholesale Club, Inc. and Consolidated Subsidiaries
STATEMENTS OF INCOME (Unaudited)
(Dollars in Thousands Except Per Share Amounts)
Thirteen Weeks Ended
May 4, May 5,
2002 2001
Net sales $ 1,260,108 $ 1,134,172
Membership fees and other 31,697 27,861
Total revenues 1,291,805 1,162,033
Cost of sales, including buying
and occupancy costs 1,158,156 1,041,161
Selling, general and administrative
expenses 91,859 84,680
Preopening expenses 3,298 278
Operating income 38,492 35,914
Interest income, net 251 1,424
Loss on contingent lease
obligations (see Note 1) (1,417) --
Income before income taxes 37,326 37,338
Provision for income taxes 14,272 14,375
Net income $ 23,054 $ 22,963
Net income per common share:
Basic $ 0.32 $ 0.32
Diluted $ 0.32 $ 0.31
Number of common shares for earnings
per share computations:
Basic 71,347,192 72,623,411
Diluted 72,525,150 74,283,486
Clubs in operation - end of period 134 118
CONDENSED BALANCE SHEETS (Unaudited)
(Dollars in Thousands)
May 4, May 5,
2002 2001
ASSETS
Current assets:
Cash and cash equivalents $ 40,132 $ 87,327
Accounts receivable 49,250 47,443
Merchandise inventories 607,601 518,216
Current deferred income taxes 28,239 7,814
Prepaid expenses 16,607 15,542
Total current assets 741,829 676,342
Property, net of depreciation 649,149 539,989
Property under capital leases,
net of amortization 830 996
Deferred income taxes 9,593 --
Other assets 21,402 19,765
TOTAL ASSETS $1,422,803 $1,237,092
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 396,279 $ 342,459
Contingent lease obligations
(see Note 1) 45,400 --
Accrued expenses and other
current liabilities 181,099 153,606
Total current liabilities 622,778 496,065
Long-term obligations under capital leases 1,485 1,769
Noncurrent contingent lease
obligations (see Note 1) 57,445 --
Other noncurrent liabilities 49,202 42,681
Deferred income taxes -- 7,799
Stockholders' equity 691,893 688,778
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,422,803 $1,237,092
BJ's Wholesale Club, Inc. and Consolidated Subsidiaries
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in Thousands)
Thirteen Weeks Ended
May 4, May 5,
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 23,054 $ 22,963
Loss on contingent lease
obligations (see Note 1) 1,417 --
Depreciation and amortization 17,253 14,775
Deferred income taxes 1,965 (233)
Increase in merchandise inventories,
net of accounts payable (32,433) (15,532)
Other 2,788 (5,179)
Net cash provided by operating activities 14,044 16,794
CASH FLOWS FROM INVESTING ACTIVITIES
Property additions (42,473) (41,266)
Property disposals 53 --
Net cash used in investing activities (42,420) (41,266)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury stock (19,560) (15,669)
Proceeds from sale and issuance of
common stock 969 7,130
Other (59) (54)
Net cash used in financing activities (18,650) (8,593)
Net decrease in cash and cash equivalents $(47,026) $(33,065)
NOTE TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. In the fiscal quarter ended May 4, 2002, the Company recorded a
pre-tax accretion charge of $1.4 million ($.9 million after tax,
or $.01 per diluted share) associated with its obligations for
House2Home, Inc. leases. Both BJ's and House2Home (formerly
HomeBase, Inc.) were part of Waban Inc. prior to 1997 and were
part of The TJX Companies, Inc. ("TJX") prior to 1989. In
connection with the spin-off of Waban from TJX in 1989, Waban
agreed to indemnify TJX against any liabilities TJX might incur
with respect to these leases. Pursuant to a subsequent agreement,
BJ's agreed to indemnify TJX for 100% of House2Home's lease
liabilities guaranteed by TJX through January 31, 2003 and for 50%
of any such liabilities thereafter. House2Home filed for
bankruptcy under Chapter 11 of the United States Bankruptcy Code
on November 7, 2001. For additional information, refer to BJ's
filing on Form 10-K for the fiscal year ended February 2, 2002.
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