☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 80-0848819 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
6295 Allentown Boulevard Suite 1 Harrisburg, Pennsylvania | 17112 | |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of each exchange on which registered | ||
Common Stock, $0.001 par value | OLLI | The NASDAQ Stock Market LLC |
Large accelerated filer ☒ | Accelerated filer ☐ | Non-accelerated filer ☐ | Smaller reporting company ☐ | Emerging growth company ☐ |
Page | ||
PART I | ||
Item 1. | ||
Item 1A. | ||
Item 1B. | ||
Item 2. | ||
Item 3. | 36 | |
Item 4. | 36 | |
PART II | ||
Item 5. | 37 | |
Item 6. | 40 | |
Item 7. | 40 | |
Item 7A. | 54 | |
Item 8. | 55 | |
Item 9. | 82 | |
Item 9A. | 82 | |
Item 9B. | 84 | |
Item 9C. | 84 | |
PART III | ||
Item 10. | 84 | |
Item 11. | 84 | |
Item 12. | 84 | |
Item 13. | 84 | |
Item 14. | ||
PART IV | ||
Item 15. | 85 | |
Item 16. |
• | our failure to adequately procure and manage our inventory or anticipate consumer demand; |
Item 1. | Business. |
• | Housewares: cooking utensils, dishes, appliances, plastic containers, cutlery, storage and garbage bags, detergents and cleaning supplies, cookware and glassware, fans and space heaters, candles, frames and giftware; |
• | Bed and bath: household goods including bedding, towels, curtains and associated hardware; |
• | Food: packaged food including coffee, bottled non-carbonated beverages, salty snacks, condiments, sauces, spices, dry pasta, canned goods, cereal and cookies; |
• | Floor coverings: laminate flooring, commercial and residential carpeting, area rugs and floor mats; |
• | Books and stationery: novels, children’s, how-to, business, cooking, inspirational and coffee table books, greeting cards and various office supplies and party goods; |
• | Electronics: air conditioners, home electronics, cellular accessories and as seen on television; |
• | Toys: dolls, action figures, puzzles, educational toys, board games and other related items; |
• | Health and beauty aids: personal care, hair care, oral care, health and wellness, including PPE related to the COVID-19 pandemic, over-the-counter medicine, first aid, sun care, and personal grooming; |
• | Other: hardware, candy, clothing, sporting goods, pet products, luggage, automotive, seasonal, furniture, summer furniture and lawn & garden. |
2020 | 2019 | 2018 | 2021 | 2020 | 2019 | |||||||||||||||||||
Stores open at beginning of year | 345 | 303 | 268 | 388 | 345 | 303 | ||||||||||||||||||
Stores opened | 46 | 42 | 37 | 46 | 46 | 42 | ||||||||||||||||||
Stores closed | (4 | ) | - | (2 | ) | (3 | ) | (4 | ) | - | ||||||||||||||
Stores re-opened | 1 | - | - | - | 1 | - | ||||||||||||||||||
Stores open at end of year | 388 | 345 | 303 | 431 | 388 | 345 |
• | Print and direct mail: During |
• | Television and radio: We selectively utilize creative television and radio advertising campaigns in targeted markets at certain times of the year, particularly during the holiday sales season, to create brand awareness and support new store openings; |
• | Charity and community events: We are dedicated to maintaining a visible presence in the communities in which our stores are located through the sponsorship of charitable organizations such as Feeding America, Toys for Tots, Children’s Miracle Network, Cal Ripken, Sr. Foundation and the Kevin Harvick Foundation. We believe supporting these organizations promotes our brand, underscores our values and builds a sense of community; and |
• | Digital marketing and social media: We maintain an active |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosures |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
2021 | ||||||||
High | Low | |||||||
First Quarter | $ | 98.58 | $ | 80.64 | ||||
Second Quarter | $ | 95.43 | $ | 75.75 | ||||
Third Quarter | $ | 94.68 | $ | 57.86 | ||||
Fourth Quarter | $ | 75.27 | $ | 42.40 |
2020 | ||||||||
High | Low | |||||||
First Quarter | $ | 72.77 | $ | 28.83 | ||||
Second Quarter | $ | 110.17 | $ | 64.55 | ||||
Third Quarter | $ | 112.58 | $ | 83.08 | ||||
Fourth Quarter | $ | 123.52 | $ | 76.74 |
2019 | ||||||||
High | Low | |||||||
First Quarter | $ | 97.98 | $ | 78.10 | ||||
Second Quarter | $ | 103.03 | $ | 80.53 | ||||
Third Quarter | $ | 83.09 | $ | 53.60 | ||||
Fourth Quarter | $ | 70.99 | $ | 52.88 |
1/28/17 | 2/3/18 | 2/2/19 | 2/1/20 | 1/30/21 | 1/29/22 | |||||||||||||||||||
Ollie’s Bargain Outlet Holdings, Inc. | $ | 100.00 | 183.13 | 270.36 | 180.72 | 322.76 | 153.08 | |||||||||||||||||
NASDAQ Composite Total Return Index | $ | 100.00 | 128.66 | 135.26 | 161.67 | 283.88 | 171.84 | |||||||||||||||||
NASDAQ US Benchmark Retail Index | $ | 100.00 | 133.02 | 137.90 | 162.10 | 222.50 | 231.26 |
1/30/16 | 1/28/17 | 2/3/18 | 2/2/19 | 2/1/20 | 1/30/21 | |||||||||||||||||||
Ollie’s Bargain Outlet Holdings, Inc. | $ | 100.00 | 131.32 | 240.49 | 355.03 | 237.32 | 423.85 | |||||||||||||||||
NASDAQ Global Market Composite Index | $ | 100.00 | 119.62 | 153.90 | 161.80 | 193.40 | 339.59 | |||||||||||||||||
NASDAQ US Benchmark Retail Index | $ | 100.00 | 108.64 | 144.51 | 149.81 | 176.10 | 241.72 |
Period | Total number of shares repurchased (1) | Average price paid per share (2) | Total number of shares purchased as part of publicly announced plans or programs (3) | Approximate dollar value of shares that may yet be purchased under the plans or programs (3) | ||||||||||||
November 1, 2020 through November 28, 2020 | — | — | — | $ | 59,986,335 | |||||||||||
November 29, 2020 through January 2, 2021 | 3,885 | 77.45 | 3,885 | $ | 159,685,443 | |||||||||||
January 3, 2021 through January 30, 2021 | — | — | — | $ | 159,685,443 | |||||||||||
Total | 3,885 | 3,885 |
Period | Total number of shares repurchased (1) | Average price paid per share (2) | Total number of shares purchased as part of publicly announced plans or programs (3) | Approximate dollar value of shares that may yet be purchased under the plans or programs (3) | ||||||||||||
October 31, 2021 through November 27, 2021 | — | — | — | $ | 32,562 | |||||||||||
November 28, 2021 through January 1, 2022 | — | — | — | $ | 200,032,562 | |||||||||||
January 2, 2022 through January 29, 2022 | 434,474 | $ | 46.04 | 434,474 | $ | 180,028,248 | ||||||||||
Total | 434,474 | 434,474 |
(1) | Consists of shares repurchased under the publicly announced share repurchase program. |
(2) | Includes commissions for the shares repurchased under the |
(3) | On March 26, 2019, the Board of Directors of the Company authorized the repurchase of up to $100.0 million of shares of the Company’s common stock. This initial tranche expired on March 26, 2021. The Board authorized the repurchase of another $100.0 million of the Company’s common stock on December 15, 2020 and a $100.0 million increase on March 16, 2021, resulting in $200.0 million approved for share repurchases through January 13, 2023. On November 30, 2021, the Board authorized an additional $200.0 million to repurchase stock pursuant to the Company’s share repurchase program, expiring on December 15, 2023. Shares to be repurchased are subject to the same considerations regarding timing and amount of repurchases as the initial authorization. As of January 29, 2022, the Company had approximately $180.0 million remaining under its share repurchase program. For further discussion on the share repurchase program, see “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Liquidity and Capital Resources, Share Repurchase Program.” |
Item 6. |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
2020 | 2019 | |||||||
(dollars in thousands) | ||||||||
Net sales | $ | 1,808,821 | $ | 1,408,199 | ||||
Cost of sales | 1,085,455 | 852,610 | ||||||
Gross profit | 723,366 | 555,589 | ||||||
Selling, general and administrative expenses | 418,889 | 356,060 | ||||||
Depreciation and amortization expenses | 16,705 | 14,582 | ||||||
Pre-opening expenses | 10,272 | 13,092 | ||||||
Operating income | 277,500 | 171,855 | ||||||
Interest income, net | (278 | ) | (878 | ) | ||||
Income before income taxes | 277,778 | 172,733 | ||||||
Income tax expense | 35,082 | 31,603 | ||||||
Net income | $ | 242,696 | $ | 141,130 | ||||
Percentage of net sales(1): | ||||||||
Net sales | 100.0 | % | 100.0 | % | ||||
Cost of sales | 60.0 | 60.5 | ||||||
Gross profit | 40.0 | 39.5 | ||||||
Selling, general and administrative expenses | 23.2 | 25.3 | ||||||
Depreciation and amortization expenses | 0.9 | 1.0 | ||||||
Pre-opening expenses | 0.6 | 0.9 | ||||||
Operating income | 15.3 | 12.2 | ||||||
Interest income, net | (0.0 | ) | (0.1 | ) | ||||
Income before income taxes | 15.4 | 12.3 | ||||||
Income tax expense | 1.9 | 2.2 | ||||||
Net income | 13.4 | % | 10.0 | % | ||||
Select operating data: | ||||||||
Number of new stores | 46 | 42 | ||||||
Number of store closings | (4 | ) | - | |||||
Number of stores re-opened | 1 | - | ||||||
Number of stores open at end of period | 388 | 345 | ||||||
Average net sales per store (2) | $ | 4,866 | $ | 4,234 | ||||
Comparable stores sales change | 15.6 | % | (2.1 | )% |
2021 | 2020 | |||||||
(dollars in thousands) | ||||||||
Net sales | $ | 1,752,995 | $ | 1,808,821 | ||||
Cost of sales | 1,071,749 | 1,085,455 | ||||||
Gross profit | 681,246 | 723,366 | ||||||
Selling, general and administrative expenses | 447,615 | 418,889 | ||||||
Depreciation and amortization expenses | 19,364 | 16,705 | ||||||
Pre-opening expenses | 9,675 | 10,272 | ||||||
Operating income | 204,592 | 277,500 | ||||||
Interest expense (income), net | 209 | (278 | ) | |||||
Income before income taxes | 204,383 | 277,778 | ||||||
Income tax expense | 46,928 | 35,082 | ||||||
Net income | $ | 157,455 | $ | 242,696 | ||||
Percentage of net sales(1): | ||||||||
Net sales | 100.0 | % | 100.0 | % | ||||
Cost of sales | 61.1 | 60.0 | ||||||
Gross profit | 38.9 | 40.0 | ||||||
Selling, general and administrative expenses | 25.5 | 23.2 | ||||||
Depreciation and amortization expenses | 1.1 | 0.9 | ||||||
Pre-opening expenses | 0.6 | 0.6 | ||||||
Operating income | 11.7 | 15.3 | ||||||
Interest expense (income), net | 0.0 | (0.0 | ) | |||||
Income before income taxes | 11.7 | 15.4 | ||||||
Income tax expense | 2.7 | 1.9 | ||||||
Net income | 9.0 | % | 13.4 | % | ||||
Select operating data: | ||||||||
Number of new stores | 46 | 46 | ||||||
Number of store closings | (3 | ) | (4 | ) | ||||
Number of stores re-opened | - | 1 | ||||||
Number of stores open at end of period | 431 | 388 | ||||||
Average net sales per store (2) | $ | 4,254 | $ | 4,866 | ||||
Comparable stores sales change | (11.1 | )% | 15.6 | % |
(1) | Components may not add to totals due to rounding. |
(2) | 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. |
2020 | 2019 | 2021 | 2020 | |||||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||||
Net income | $ | 242,696 | $ | 141,130 | $ | 157,455 | $ | 242,696 | ||||||||
Interest income, net | (278 | ) | (878 | ) | ||||||||||||
Interest expense (income), net | 209 | (278 | ) | |||||||||||||
Depreciation and amortization expenses (1) | 22,746 | 17,853 | 25,114 | 22,746 | ||||||||||||
Income tax expense | 35,082 | 31,603 | 46,928 | 35,082 | ||||||||||||
EBITDA | 300,246 | 189,708 | 229,706 | 300,246 | ||||||||||||
Gains from insurance settlements | (247 | ) | (1,029 | ) | (416 | ) | (247 | ) | ||||||||
Non-cash stock-based compensation expense | 6,501 | 7,302 | 8,042 | 6,501 | ||||||||||||
Adjusted EBITDA | $ | 306,500 | $ | 195,981 | $ | 237,332 | $ | 306,500 |
(1) | Includes depreciation and amortization relating to our distribution centers, which is included within cost of sales on our consolidated statements of income. |
2020 | 2019 | 2021 | 2020 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net cash provided by operating activities | $ | 361,254 | $ | 105,344 | $ | 45,033 | $ | 361,254 | ||||||||
Net cash used in investing activities | (30,448 | ) | (34,124 | ) | (31,830 | ) | (30,448 | ) | ||||||||
Net cash provided by (used in) financing activities | 26,370 | (33,211 | ) | |||||||||||||
Net increase in cash and cash equivalents | $ | 357,176 | $ | 38,009 | ||||||||||||
Net cash (used in) provided by financing activities | (213,352 | ) | 26,370 | |||||||||||||
Net (decrease) increase in cash and cash equivalents | $ | (200,149 | ) | $ | 357,176 |
Less than 1 year | 1-3 Years | 3-5 Years | Thereafter | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Operating leases (1) | $ | 72,396 | $ | 156,105 | $ | 104,303 | $ | 109,572 | $ | 442,376 | ||||||||||
Finance leases | 626 | 895 | 114 | - | 1,635 | |||||||||||||||
Purchase obligations (2) | - | 23,000 | - | - | 23,000 | |||||||||||||||
Total | $ | 73,022 | $ | 180,000 | $ | 104,417 | $ | 109,572 | $ | 467,011 |
Less than 1 year | 1-3 Years | 3-5 Years | Thereafter | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Operating leases (1) | $ | 81,360 | $ | 170,593 | $ | 111,660 | $ | 116,040 | $ | 479,653 | ||||||||||
Finance leases | 607 | 525 | - | - | 1,132 | |||||||||||||||
Purchase obligations (2) | 12,300 | - | - | - | 12,300 | |||||||||||||||
Total | $ | 94,267 | $ | 171,118 | $ | 111,660 | $ | 116,040 | $ | 493,085 |
(1) | Operating lease payments exclude $46.7 million of legally binding minimum lease payments for leases signed, but not yet commenced. |
(2) | Purchase obligations represent $12.3 million associated with a construction agreement for the expansion of our York, PA distribution center (entered into on March 7, 2022). |
Item 7A. | Quantitative and Qualitative Disclosures about Market Risks |
Item 8: | Financial Statements and Supplementary Data. |
Page | |
Report of Independent Registered Public Accounting Firm (KPMG LLP, Philadelphia, PA, Auditor Firm ID 185) | 56 |
Consolidated Financial Statements: | |
Consolidated Statements of Income for the fiscal years ended January | |
58 | |
Consolidated Balance Sheets as of January 29, 2022 and January 30, 2021 | 59 |
Consolidated Statements of Stockholders’ Equity for the fiscal years ended January 29, 2022, January 30, 2021 and February 1, 2020 | 60 |
Consolidated Statements of Cash Flows for the fiscal years ended January 29, 2022, January 30, 2021 and February 1, 2020 | 61 |
62 | |
79 |
Fiscal year ended | Fiscal year ended | |||||||||||||||||||||||
January 30, 2021 | February 1, 2020 | February 2, 2019 | January 29, 2022 | January 30, 2021 | February 1, 2020 | |||||||||||||||||||
Net sales | $ | 1,808,821 | $ | 1,408,199 | $ | 1,241,377 | $ | 1,752,995 | $ | 1,808,821 | $ | 1,408,199 | ||||||||||||
Cost of sales | 1,085,455 | 852,610 | 743,726 | 1,071,749 | 1,085,455 | 852,610 | ||||||||||||||||||
Gross profit | 723,366 | 555,589 | 497,651 | 681,246 | 723,366 | 555,589 | ||||||||||||||||||
Selling, general and administrative expenses | 418,889 | 356,060 | 312,790 | 447,615 | 418,889 | 356,060 | ||||||||||||||||||
Depreciation and amortization expenses | 16,705 | 14,582 | 11,664 | 19,364 | 16,705 | 14,582 | ||||||||||||||||||
Pre-opening expenses | 10,272 | 13,092 | 11,143 | 9,675 | 10,272 | 13,092 | ||||||||||||||||||
Operating income | 277,500 | 171,855 | 162,054 | 204,592 | 277,500 | 171,855 | ||||||||||||||||||
Interest (income) expense, net | (278 | ) | (878 | ) | 1,261 | |||||||||||||||||||
Loss on extinguishment of debt | 0 | 0 | 150 | |||||||||||||||||||||
Interest expense (income), net | 209 | (278 | ) | (878 | ) | |||||||||||||||||||
Income before income taxes | 277,778 | 172,733 | 160,643 | 204,383 | 277,778 | 172,733 | ||||||||||||||||||
Income tax expense | 35,082 | 31,603 | 25,630 | 46,928 | 35,082 | 31,603 | ||||||||||||||||||
Net income | $ | 242,696 | $ | 141,130 | $ | 135,013 | $ | 157,455 | $ | 242,696 | $ | 141,130 | ||||||||||||
Earnings per common share: | ||||||||||||||||||||||||
Basic | $ | 3.75 | $ | 2.23 | $ | 2.16 | $ | 2.44 | $ | 3.75 | $ | 2.23 | ||||||||||||
Diluted | $ | 3.68 | $ | 2.14 | $ | 2.05 | $ | 2.43 | $ | 3.68 | $ | 2.14 | ||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||
Basic | 64,748 | 63,214 | 62,568 | 64,447 | 64,748 | 63,214 | ||||||||||||||||||
Diluted | 65,873 | 65,874 | 65,905 | 64,878 | 65,873 | 65,874 |
January 29, 2022 | January 30, 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 246,977 | $ | 447,126 | ||||
Inventories | 467,306 | 353,704 | ||||||
Accounts receivable | 1,372 | 621 | ||||||
Prepaid expenses and other assets | 11,173 | 7,316 | ||||||
Total current assets | 726,828 | 808,767 | ||||||
Property and equipment, net | 147,164 | 138,712 | ||||||
Operating lease right-of-use assets | 420,568 | 380,546 | ||||||
Goodwill | 444,850 | 444,850 | ||||||
Trade name | 230,559 | 230,559 | ||||||
Other assets | 2,203 | 2,421 | ||||||
Total assets | $ | 1,972,172 | $ | 2,005,855 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 332 | $ | 328 | ||||
Accounts payable | 106,599 | 117,217 | ||||||
Income taxes payable | 2,556 | 10,960 | ||||||
Current portion of operating lease liabilities | 75,535 | 64,732 | ||||||
Accrued expenses and other | 78,246 | 90,559 | ||||||
Total current liabilities | 263,268 | 283,796 | ||||||
Revolving credit facility | 0 | 0 | ||||||
Long-term debt | 719 | 656 | ||||||
Deferred income taxes | 66,179 | 65,064 | ||||||
Long-term operating lease liabilities | 354,293 | 321,454 | ||||||
Other long-term liabilities | 3 | 4 | ||||||
Total liabilities | 684,462 | 670,974 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock - 50,000 shares authorized at $0.001 par value; 0 shares issued | 0 | 0 | ||||||
Common stock - 500,000 shares authorized at $0.001 par value; 66,516 and 66,165 shares issued, respectively | 67 | 66 | ||||||
Additional paid-in capital | 664,293 | 648,949 | ||||||
Retained earnings | 883,722 | 726,267 | ||||||
Treasury - common stock, at cost; 3,816 and 702 shares, respectively | (260,372 | ) | (40,401 | ) | ||||
Total stockholders’ equity | 1,287,710 | 1,334,881 | ||||||
Total liabilities and stockholders’ equity | $ | 1,972,172 | $ | 2,005,855 |
Common stock | Treasury stock | Additional paid-in | Retained | Total stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | capital | earnings | equity | ||||||||||||||||||||||
Balance as of February 2, 2019 | 63,015 | $ | 63 | (9 | ) | $ | (86 | ) | $ | 600,234 | $ | 342,441 | $ | 942,652 | ||||||||||||||
Stock-based compensation expense | - | 0 | - | 0 | 7,302 | 0 | 7,302 | |||||||||||||||||||||
Proceeds from stock options exercised | 653 | 1 | 0 | 0 | 9,086 | 0 | 9,087 | |||||||||||||||||||||
Vesting of restricted stock | 60 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Common shares withheld for taxes | (16 | ) | 0 | 0 | 0 | (1,272 | ) | 0 | (1,272 | ) | ||||||||||||||||||
Shares repurchased | 0 | 0 | (689 | ) | (40,014 | ) | 0 | 0 | (40,014 | ) | ||||||||||||||||||
Net income | - | 0 | - | 0 | 0 | 141,130 | 141,130 | |||||||||||||||||||||
Balance as of February 1, 2020 | 63,712 | 64 | (698 | ) | (40,100 | ) | 615,350 | 483,571 | 1,058,885 | |||||||||||||||||||
Stock-based compensation expense | - | 0 | - | 0 | 6,501 | 0 | 6,501 | |||||||||||||||||||||
Proceeds from stock options exercised | 2,403 | 2 | 0 | 0 | 28,059 | 0 | 28,061 | |||||||||||||||||||||
Vesting of restricted stock | 69 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Common shares withheld for taxes | (19 | ) | 0 | 0 | 0 | (961 | ) | 0 | (961 | ) | ||||||||||||||||||
Shares repurchased | 0 | 0 | (4 | ) | (301 | ) | 0 | 0 | (301 | ) | ||||||||||||||||||
Net income | - | 0 | - | 0 | 0 | 242,696 | 242,696 | |||||||||||||||||||||
Balance as of January 30, 2021 | 66,165 | 66 | (702 | ) | (40,401 | ) | 648,949 | 726,267 | 1,334,881 | |||||||||||||||||||
Stock-based compensation expense | - | 0 | - | 0 | 8,042 | 0 | 8,042 | |||||||||||||||||||||
Proceeds from stock options exercised | 305 | 1 | 0 | 0 | 8,634 | 0 | 8,635 | |||||||||||||||||||||
Vesting of restricted stock | 62 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Common shares withheld for taxes | (16 | ) | 0 | 0 | 0 | (1,332 | ) | 0 | (1,332 | ) | ||||||||||||||||||
Shares repurchased | 0 | 0 | (3,114 | ) | (219,971 | ) | 0 | 0 | (219,971 | ) | ||||||||||||||||||
Net income | - | 0 | - | 0 | 0 | 157,455 | 157,455 | |||||||||||||||||||||
Balance as of January 29, 2022 | 66,516 | $ | 67 | (3,816 | ) | $ | (260,372 | ) | $ | 664,293 | $ | 883,722 | $ | 1,287,710 |
Fiscal year ended | ||||||||||||
January 29, 2022 | January 30, 2021 | February 1, 2020 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 157,455 | $ | 242,696 | $ | 141,130 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization of property and equipment | 24,894 | 22,465 | 17,543 | |||||||||
Amortization of debt issuance costs | 256 | 256 | 296 | |||||||||
Gain on sale of assets | (213 | ) | (2 | ) | (74 | ) | ||||||
Deferred income tax provision | 1,115 | 5,663 | 3,785 | |||||||||
Stock-based compensation expense | 8,042 | 6,501 | 7,302 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Inventories | (113,602 | ) | (18,523 | ) | (38,774 | ) | ||||||
Accounts receivable | (751 | ) | 2,219 | (2,270 | ) | |||||||
Prepaid expenses and other assets | (3,895 | ) | (1,849 | ) | (870 | ) | ||||||
Accounts payable | (11,116 | ) | 55,574 | (15,513 | ) | |||||||
Income taxes payable | (8,404 | ) | 7,054 | (3,487 | ) | |||||||
Accrued expenses and other liabilities | (8,748 | ) | 39,200 | (3,724 | ) | |||||||
Net cash provided by operating activities | 45,033 | 361,254 | 105,344 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of property and equipment | (34,989 | ) | (30,525 | ) | (76,979 | ) | ||||||
Proceeds from sale of property and equipment | 3,159 | 122 | 42,855 | |||||||||
Purchase of intangible asset | 0 | (45 | ) | 0 | ||||||||
Net cash used in investing activities | (31,830 | ) | (30,448 | ) | (34,124 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Repayments on finance leases | (684 | ) | (429 | ) | (460 | ) | ||||||
Payment of debt issuance costs | 0 | 0 | (552 | ) | ||||||||
Proceeds from stock option exercises | 8,635 | 28,061 | 9,087 | |||||||||
Common shares withheld for taxes | (1,332 | ) | (961 | ) | (1,272 | ) | ||||||
Payment for shares repurchased | (219,971 | ) | (301 | ) | (40,014 | ) | ||||||
Net cash (used in) provided by financing activities | (213,352 | ) | 26,370 | (33,211 | ) | |||||||
Net (decrease) increase in cash and cash equivalents | (200,149 | ) | 357,176 | 38,009 | ||||||||
Cash and cash equivalents at the beginning of the year | 447,126 | 89,950 | 51,941 | |||||||||
Cash and cash equivalents at the end of the year | $ | 246,977 | $ | 447,126 | $ | 89,950 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 358 | $ | 324 | $ | 355 | ||||||
Income taxes | $ | 54,690 | $ | 22,047 | $ | 30,857 | ||||||
Non-cash investing activities: | ||||||||||||
Accrued purchases of property and equipment | $ | 3,189 | $ | 2,636 | $ | 4,562 |
January 30, 2021 | February 1, 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 447,126 | $ | 89,950 | ||||
Inventories | 353,704 | 335,181 | ||||||
Accounts receivable | 621 | 2,840 | ||||||
Prepaid expenses and other assets | 7,316 | 5,567 | ||||||
Total current assets | 808,767 | 433,538 | ||||||
Property and equipment, net | 138,712 | 132,084 | ||||||
Operating lease right-of-use assets | 380,546 | 352,684 | ||||||
Goodwill | 444,850 | 444,850 | ||||||
Trade name | 230,559 | 230,559 | ||||||
Other assets | 2,421 | 2,532 | ||||||
Total assets | $ | 2,005,855 | $ | 1,596,247 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt | $ | 328 | $ | 273 | ||||
Accounts payable | 117,217 | 63,223 | ||||||
Income taxes payable | 10,960 | 3,906 | ||||||
Current portion of operating lease liabilities | 64,732 | 53,551 | ||||||
Accrued expenses and other | 90,559 | 56,732 | ||||||
Total current liabilities | 283,796 | 177,685 | ||||||
Revolving credit facility | 0 | 0 | ||||||
Long-term debt | 656 | 527 | ||||||
Deferred income taxes | 65,064 | 59,401 | ||||||
Long-term operating lease liabilities | 321,454 | 299,743 | ||||||
Other long-term liabilities | 4 | 6 | ||||||
Total liabilities | 670,974 | 537,362 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock - 50,000 shares authorized at $0.001 par value; 0 shares issued | 0 | 0 | ||||||
Common stock - 500,000 shares authorized at $0.001 par value; 66,165 and 63,712 shares issued, respectively | 66 | 64 | ||||||
Additional paid-in capital | 648,949 | 615,350 | ||||||
Retained earnings | 726,267 | 483,571 | ||||||
Treasury - common stock, at cost; 702 and 698 shares, respectively | (40,401 | ) | (40,100 | ) | ||||
Total stockholders’ equity | 1,334,881 | 1,058,885 | ||||||
Total liabilities and stockholders’ equity | $ | 2,005,855 | $ | 1,596,247 |
Common stock | Treasury stock | Additional paid-in | Retained | Total stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | capital | earnings | equity | ||||||||||||||||||||||
Balance as of February 3, 2018 | 62,007 | $ | 62 | (9 | ) | $ | (86 | ) | $ | 583,467 | $ | 213,019 | $ | 796,462 | ||||||||||||||
Cumulative effect of adopting ASU 2014-09 (Note 2) | – | 0 | – | 0 | 0 | (5,591 | ) | (5,591 | ) | |||||||||||||||||||
Stock-based compensation expense | – | 0 | – | 0 | 7,291 | 0 | 7,291 | |||||||||||||||||||||
Proceeds from stock options exercised | 968 | 1 | 0 | 0 | 10,178 | 0 | 10,179 | |||||||||||||||||||||
Vesting of restricted stock | 52 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Common shares withheld for taxes | (12 | ) | 0 | 0 | 0 | (702 | ) | 0 | (702 | ) | ||||||||||||||||||
Net income | – | 0 | – | 0 | 0 | 135,013 | 135,013 | |||||||||||||||||||||
Balance as of February 2, 2019 | 63,015 | 63 | (9 | ) | (86 | ) | 600,234 | 342,441 | 942,652 | |||||||||||||||||||
Stock-based compensation expense | – | 0 | – | 0 | 7,302 | 0 | 7,302 | |||||||||||||||||||||
Proceeds from stock options exercised | 653 | 1 | 0 | 0 | 9,086 | 0 | 9,087 | |||||||||||||||||||||
Vesting of restricted stock | 60 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Common shares withheld for taxes | (16 | ) | 0 | 0 | 0 | (1,272 | ) | 0 | (1,272 | ) | ||||||||||||||||||
Shares repurchased | 0 | 0 | (689 | ) | (40,014 | ) | 0 | 0 | (40,014 | ) | ||||||||||||||||||
Net income | – | 0 | – | 0 | 0 | 141,130 | 141,130 | |||||||||||||||||||||
Balance as of February 1, 2020 | 63,712 | 64 | (698 | ) | (40,100 | ) | 615,350 | 483,571 | 1,058,885 | |||||||||||||||||||
Stock-based compensation expense | – | 0 | – | 0 | 6,501 | 0 | 6,501 | |||||||||||||||||||||
Proceeds from stock options exercised | 2,403 | 2 | 0 | 0 | 28,059 | 0 | 28,061 | |||||||||||||||||||||
Vesting of restricted stock | 69 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Common shares withheld for taxes | (19 | ) | 0 | 0 | 0 | (961 | ) | 0 | (961 | ) | ||||||||||||||||||
Shares repurchased | 0 | 0 | (4 | ) | (301 | ) | 0 | 0 | (301 | ) | ||||||||||||||||||
Net income | – | 0 | – | 0 | 0 | 242,696 | 242,696 | |||||||||||||||||||||
Balance as of January 30, 2021 | 66,165 | $ | 66 | (702 | ) | $ | (40,401 | ) | $ | 648,949 | $ | 726,267 | $ | 1,334,881 |
Fiscal year ended | ||||||||||||
January 30, 2021 | February 1, 2020 | February 2, 2019 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 242,696 | $ | 141,130 | $ | 135,013 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization of property and equipment | 22,465 | 17,543 | 14,008 | |||||||||
Amortization of debt issuance costs | 256 | 296 | 482 | |||||||||
Amortization of original issue discount | 0 | 0 | 5 | |||||||||
Loss on extinguishment of debt | 0 | 0 | 150 | |||||||||
Amortization of intangibles | 0 | 0 | 335 | |||||||||
Gain on sale of assets | (2 | ) | (74 | ) | (48 | ) | ||||||
Deferred income tax provision (benefit) | 5,663 | 3,785 | (1,568 | ) | ||||||||
Deferred rent expense | 0 | 0 | 1,590 | |||||||||
Stock-based compensation expense | 6,501 | 7,302 | 7,291 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Inventories | (18,523 | ) | (38,774 | ) | (41,222 | ) | ||||||
Accounts receivable | 2,219 | (2,270 | ) | 701 | ||||||||
Prepaid expenses and other assets | (1,849 | ) | (870 | ) | (4,163 | ) | ||||||
Accounts payable | 55,574 | (15,513 | ) | 3,564 | ||||||||
Income taxes payable | 7,054 | (3,487 | ) | 1,358 | ||||||||
Accrued expenses and other liabilities | 39,200 | (3,724 | ) | 8,583 | ||||||||
Net cash provided by operating activities | 361,254 | 105,344 | 126,079 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of property and equipment | (30,525 | ) | (76,979 | ) | (74,178 | ) | ||||||
Proceeds from sale of property and equipment | 122 | 42,855 | 330 | |||||||||
Purchase of intangible asset | (45 | ) | 0 | 0 | ||||||||
Net cash used in investing activities | (30,448 | ) | (34,124 | ) | (73,848 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Repayments on term loan and finance leases | (429 | ) | (460 | ) | (49,001 | ) | ||||||
Payment of debt issuance costs | 0 | (552 | ) | 0 | ||||||||
Proceeds from stock option exercises | 28,061 | 9,087 | 10,179 | |||||||||
Common shares withheld for taxes | (961 | ) | (1,272 | ) | (702 | ) | ||||||
Payment for shares repurchased | (301 | ) | (40,014 | ) | 0 | |||||||
Net cash provided by (used in) financing activities | 26,370 | (33,211 | ) | (39,524 | ) | |||||||
Net increase in cash and cash equivalents | 357,176 | 38,009 | 12,707 | |||||||||
Cash and cash equivalents at the beginning of the year | 89,950 | 51,941 | 39,234 | |||||||||
Cash and cash equivalents at the end of the year | $ | 447,126 | $ | 89,950 | $ | 51,941 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 324 | $ | 355 | $ | 807 | ||||||
Income taxes | $ | 22,047 | $ | 30,857 | $ | 26,112 | ||||||
Non-cash investing activities: | ||||||||||||
Accrued purchases of property and equipment | $ | 2,636 | $ | 4,562 | $ | 5,735 |
(1) | Organization and Summary of Significant Accounting Policies |
(a) | Description of Business |
(b) | Fiscal Year |
(c) | Principles of Consolidation |
(d) | Use of Estimates |
(e) | Fair Value Disclosures |
(f) | Cash and Cash Equivalents |
(g) | Concentration of Credit Risk |
(h) | Inventories |
(i) | Property and Equipment |
Software | 3 years |
Automobiles | 2 |
Computer equipment | 5 years |
Furniture, fixtures and equipment | |
Buildings | 40 years |
Leasehold improvements | Lesser of lease term or useful life |
(j) | Goodwill/Intangible Assets |
(k) | Impairment of Long-Lived Assets |
(l) | Stock-Based Compensation |
(m) | Cost of Sales |
(n) | Selling, General and Administrative Expenses |
(o) | Advertising Costs |
(p) | Operating Leases |
(q) | Pre-Opening Expenses |
(r) | Debt Issuance Costs |
(s) | Self‑Insurance Liabilities |
(t) | Income Taxes |
(u) | Earnings per Common Share |
Fiscal year ended | Fiscal year ended | |||||||||||||||||||||||
January 30, 2021 | February 1, 2020 | February 2, 2019 | January 29, 2022 | January 30, 2021 | February 1, 2020 | |||||||||||||||||||
Net income | $ | 242,696 | $ | 141,130 | $ | 135,013 | $ | 157,455 | $ | 242,696 | $ | 141,130 | ||||||||||||
Weighted average number of common shares outstanding – Basic | 64,748 | 63,214 | 62,568 | 64,447 | 64,748 | 63,214 | ||||||||||||||||||
Incremental shares from the assumed exercise of outstanding stock options and vesting of restricted stock units | 1,125 | 2,660 | 3,337 | 431 | 1,125 | 2,660 | ||||||||||||||||||
Weighted average number of common shares outstanding – Diluted | 65,873 | 65,874 | 65,905 | 64,878 | 65,873 | 65,874 | ||||||||||||||||||
Earnings per common share – Basic | $ | 3.75 | $ | 2.23 | $ | 2.16 | $ | 2.44 | $ | 3.75 | $ | 2.23 | ||||||||||||
Earnings per common share – Diluted | $ | 3.68 | $ | 2.14 | $ | 2.05 | $ | 2.43 | $ | 3.68 | $ | 2.14 |
(v) | Impact of the Novel Coronavirus (“COVID-19”) |
(2) | Net Sales |
Fiscal year ended | Fiscal year ended | |||||||||||||||||||||||
January 30, 2021 | February 1, 2020 | February 2, 2019 | January 29, 2022 | January 30, 2021 | February 1, 2020 | |||||||||||||||||||
Beginning balance | $ | 8,254 | $ | 9,055 | $ | 8,321 | $ | 8,113 | $ | 8,254 | $ | 9,055 | ||||||||||||
Revenue deferred | 17,813 | 15,720 | 12,180 | 15,290 | 17,813 | 15,720 | ||||||||||||||||||
Revenue recognized | (17,954 | ) | (16,521 | ) | (11,446 | ) | (15,621 | ) | (17,954 | ) | (16,521 | ) | ||||||||||||
Ending balance | $ | 8,113 | $ | 8,254 | $ | 9,055 | $ | 7,782 | $ | 8,113 | $ | 8,254 |
Fiscal year ended | Fiscal year ended | |||||||||||||||||||||||
January 30, 2021 | February 1, 2020 | February 2, 2019 | January 29, 2022 | January 30, 2021 | February 1, 2020 | |||||||||||||||||||
Beginning balance | $ | 1,679 | $ | 1,448 | $ | 1,223 | $ | 1,902 | $ | 1,679 | $ | 1,448 | ||||||||||||
Gift card issuances | 4,906 | 5,178 | 4,561 | 5,433 | 4,906 | 5,178 | ||||||||||||||||||
Gift card redemption and breakage | (4,683 | ) | (4,947 | ) | (4,336 | ) | (5,044 | ) | (4,683 | ) | (4,947 | ) | ||||||||||||
Ending balance | $ | 1,902 | $ | 1,679 | $ | 1,448 | $ | 2,291 | $ | 1,902 | $ | 1,679 |
Fiscal year ended | Fiscal year ended | |||||||||||||||||||||||
January 30, 2021 | February 1, 2020 | February 2, 2019 | January 29, 2022 | January 30, 2021 | February 1, 2020 | |||||||||||||||||||
Beginning balance | $ | 1,060 | $ | 798 | $ | 678 | $ | 1,060 | $ | 1,060 | $ | 798 | ||||||||||||
Provisions | 52,472 | 55,649 | 46,049 | 54,475 | 52,472 | 55,649 | ||||||||||||||||||
Sales returns | (52,472 | ) | (55,387 | ) | (45,929 | ) | (54,434 | ) | (52,472 | ) | (55,387 | ) | ||||||||||||
Ending balance | $ | 1,060 | $ | 1,060 | $ | 798 | $ | 1,101 | $ | 1,060 | $ | 1,060 |
(3) | Property and Equipment |
January 30, 2021 | February 1, 2020 | January 29, 2022 | January 30, 2021 | |||||||||||||
Land | $ | 7,516 | $ | 7,479 | $ | 7,942 | $ | 7,516 | ||||||||
Buildings | 33,658 | 3,154 | 34,608 | 33,658 | ||||||||||||
Furniture, fixtures and equipment | 162,119 | 141,359 | 184,050 | 162,119 | ||||||||||||
Leasehold improvements | 31,937 | 25,019 | 40,858 | 31,937 | ||||||||||||
Automobiles | 2,109 | 1,912 | 2,338 | 2,109 | ||||||||||||
Construction in progress | 0 | 30,447 | ||||||||||||||
237,339 | 209,370 | 269,796 | 237,339 | |||||||||||||
Less: Accumulated depreciation and amortization | (98,627 | ) | (77,286 | ) | (122,632 | ) | (98,627 | ) | ||||||||
$ | 138,712 | $ | 132,084 | $ | 147,164 | $ | 138,712 |
(4) | Commitments and Contingencies |
2021 | $ | 72,396 | ||||||
2022 | 79,118 | $ | 81,360 | |||||
2023 | 76,987 | 94,452 | ||||||
2024 | 59,602 | 76,141 | ||||||
2025 | 44,701 | 60,109 | ||||||
2026 | 51,551 | |||||||
Thereafter | 109,572 | 116,040 | ||||||
Total undiscounted lease payments (1) | 442,376 | 479,653 | ||||||
Less: Imputed interest | (56,190 | ) | (49,825 | ) | ||||
Total lease obligations | 386,186 | 429,828 | ||||||
Less: Current obligations under leases | (64,732 | ) | (75,535 | ) | ||||
Long-term lease obligations | $ | 321,454 | $ | 354,293 |
(1) | Lease obligations exclude $ |
Fiscal Year Ended | ||||||||||||||||||||
Fiscal Year Ended | January 29, 2022 | January 30, 2021 | February 1, 2020 | |||||||||||||||||
January 30, 2021 | February 1, 2020 | |||||||||||||||||||
Cash paid for operating leases | $ | 70,829 | $ | 66,705 | $ | 85,923 | $ | 70,829 | $ | 66,705 | ||||||||||
Operating lease cost | 77,843 | 67,360 | 86,516 | 77,843 | 67,360 | |||||||||||||||
Variable lease cost | 5,494 | 2,421 | 7,848 | 5,494 | 2,421 | |||||||||||||||
Non-cash right-of-use assets obtained in exchange for lease obligations | 63,670 | 91,986 | 59,696 | 63,670 | 91,986 | |||||||||||||||
Weighted-average remaining lease term | 6.7 years | 7.1 years | 6.6 years | 6.7 years | 7.1 years | |||||||||||||||
Weighted-average discount rate | 4.1 | % | 4.5 | % | 3.4 | % | 4.1 | % | 4.5 | % |
(5) | Accrued Expenses |
January 30, 2021 | February 1, 2020 | January 29, 2022 | January 30, 2021 | |||||||||||||
Compensation and benefits | $ | 32,943 | $ | 11,375 | $ | 19,270 | $ | 32,943 | ||||||||
Deferred revenue | 10,015 | 9,933 | 10,073 | 10,015 | ||||||||||||
Insurance | 9,626 | 6,318 | ||||||||||||||
Advertising | 8,531 | 4,325 | ||||||||||||||
Real estate related | 7,234 | 5,753 | ||||||||||||||
Sales and use taxes | 5,968 | 6,487 | ||||||||||||||
Freight | 7,180 | 3,363 | 2,073 | 7,180 | ||||||||||||
Insurance | 6,318 | 4,864 | ||||||||||||||
Sales and use taxes | 6,487 | 4,590 | ||||||||||||||
Real estate related | 5,753 | 4,787 | ||||||||||||||
Advertising | 4,325 | 2,486 | ||||||||||||||
Other | 17,538 | 15,334 | 15,471 | 17,538 | ||||||||||||
$ | 90,559 | $ | 56,732 | $ | 78,246 | $ | 90,559 |
(6) | Debt Obligations and Financing Arrangements |
(7) | Income Taxes |
Fiscal year ended | Fiscal year ended | |||||||||||||||||||||||
January 30, 2021 | February 1, 2020 | February 2, 2019 | January 29, 2022 | January 30, 2021 | February 1, 2020 | |||||||||||||||||||
Current: | ||||||||||||||||||||||||
Federal | $ | 22,045 | $ | 21,737 | $ | 20,804 | $ | 35,657 | $ | 22,045 | $ | 21,737 | ||||||||||||
State | 7,374 | 6,081 | 6,394 | 10,156 | 7,374 | 6,081 | ||||||||||||||||||
29,419 | 27,818 | 27,198 | 45,813 | 29,419 | 27,818 | |||||||||||||||||||
Deferred: | ||||||||||||||||||||||||
Federal | 5,866 | 3,393 | (901 | ) | 802 | 5,866 | 3,393 | |||||||||||||||||
State | (203 | ) | 392 | (667 | ) | 313 | (203 | ) | 392 | |||||||||||||||
5,663 | 3,785 | (1,568 | ) | 1,115 | 5,663 | 3,785 | ||||||||||||||||||
Income tax expense | $ | 35,082 | $ | 31,603 | $ | 25,630 | $ | 46,928 | $ | 35,082 | $ | 31,603 |
Fiscal year ended | Fiscal year ended | |||||||||||||||||||||||
January 30, 2021 | February 1, 2020 | February 2, 2019 | January 29, 2022 | January 30, 2021 | February 1, 2020 | |||||||||||||||||||
Statutory federal rate | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||||||
State taxes, net of federal benefit | 2.0 | 3.0 | 2.8 | 4.1 | 2.0 | 3.0 | ||||||||||||||||||
Impact from tax law changes | 0 | 0 | 0.2 | |||||||||||||||||||||
Excess tax benefits related to stock-based compensation | (10.2 | ) | (5.4 | ) | (7.4 | ) | (1.7 | ) | (10.2 | ) | (5.4 | ) | ||||||||||||
Other | (0.2 | ) | (0.3 | ) | (0.6 | ) | (0.4 | ) | (0.2 | ) | (0.3 | ) | ||||||||||||
12.6 | % | 18.3 | % | 16.0 | % | 23.0 | % | 12.6 | % | 18.3 | % |
January 30, 2021 | February 1, 2020 | January 29, 2022 | January 30, 2021 | |||||||||||||
Deferred tax assets: | ||||||||||||||||
Inventory reserves | $ | 1,032 | $ | 1,015 | $ | 990 | $ | 1,032 | ||||||||
Lease liability | 98,793 | 87,979 | 110,465 | 98,793 | ||||||||||||
Stock-based compensation | 2,833 | 4,622 | 3,446 | 2,833 | ||||||||||||
Deferred revenue | 2,076 | 2,105 | 1,999 | 2,076 | ||||||||||||
Other | 6,169 | 2,593 | 5,450 | 6,169 | ||||||||||||
Total deferred tax assets | 110,903 | 98,314 | 122,350 | 110,903 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Tradename | (58,954 | ) | (58,759 | ) | (59,214 | ) | (58,954 | ) | ||||||||
Depreciation | (19,369 | ) | (11,136 | ) | (21,245 | ) | (19,369 | ) | ||||||||
Operating lease right-of-use assets | (97,644 | ) | (87,820 | ) | (108,070 | ) | (97,644 | ) | ||||||||
Total deferred tax liabilities | (175,967 | ) | (157,715 | ) | (188,529 | ) | (175,967 | ) | ||||||||
Net deferred tax liabilities | $ | (65,064 | ) | $ | (59,401 | ) | $ | (66,179 | ) | $ | (65,064 | ) |
(8) | Equity Incentive Plans |
Number of options | Weighted average exercise price | Weighted average remaining contractual term (years) | Aggregate intrinsic value | Number of options | Weighted average exercise price | Weighted average remaining contractual term (years) | Aggregate intrinsic value | |||||||||||||||||||||||||
Outstanding at February 3, 2018 | 4,458,387 | $ | 11.65 | - | - | |||||||||||||||||||||||||||
Outstanding at February 2, 2019 | 3,746,422 | $ | 15.29 | |||||||||||||||||||||||||||||
Granted | 279,629 | 58.96 | 357,718 | 76.28 | ||||||||||||||||||||||||||||
Forfeited | (23,069 | ) | 42.02 | (222,729 | ) | 51.53 | ||||||||||||||||||||||||||
Exercised | (968,525 | ) | 10.51 | (652,719 | ) | 13.92 | ||||||||||||||||||||||||||
Outstanding at February 2, 2019 | 3,746,422 | 15.29 | ||||||||||||||||||||||||||||||
Outstanding at February 1, 2020 | 3,228,692 | 19.83 | ||||||||||||||||||||||||||||||
Granted | 357,718 | 76.28 | 517,995 | 42.25 | ||||||||||||||||||||||||||||
Forfeited | (222,729 | ) | 51.53 | (99,288 | ) | 51.39 | ||||||||||||||||||||||||||
Exercised | (652,719 | ) | 13.92 | (2,403,164 | ) | 11.68 | ||||||||||||||||||||||||||
Outstanding at February 1, 2020 | 3,228,692 | 19.83 | ||||||||||||||||||||||||||||||
Outstanding at January 30, 2021 | 1,244,235 | 42.39 | ||||||||||||||||||||||||||||||
Granted | 517,995 | 42.25 | 298,990 | 84.48 | ||||||||||||||||||||||||||||
Forfeited | (99,288 | ) | 51.39 | (129,233 | ) | 61.98 | ||||||||||||||||||||||||||
Exercised | (2,403,164 | ) | 11.68 | (304,677 | ) | 28.34 | ||||||||||||||||||||||||||
Outstanding at January 30, 2021 | 1,244,235 | 42.39 | 7.2 | $ | 65,127 | |||||||||||||||||||||||||||
Exercisable at January 30, 2021 | 450,577 | 26.43 | 4.8 | $ | 30,776 | |||||||||||||||||||||||||||
Outstanding at January 29, 2022 | 1,109,315 | 55.30 | 7.3 | $ | 6,059 | |||||||||||||||||||||||||||
Exercisable at January 29, 2022 | 400,996 | 39.94 | 5.5 | $ | 5,082 |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||||
January 30, 2021 | February 1, 2020 | February 2, 2019 | January 29, 2022 | January 30, 2021 | February 1, 2020 | |||||||||||||||||||
Risk-free interest rate | 0.76 | % | 2.30 | % | 2.70 | % | 1.33 | % | 0.76 | % | 2.30 | % | ||||||||||||
Expected dividend yield | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Expected life (years) | 6.25 years | 6.25 years | 6.25 years | 6.25 years | 6.25 years | 6.25 years | ||||||||||||||||||
Expected volatility | 30.52 | % | 26.00 | % | 25.85 | % | 38.39 | % | 30.52 | % | 26.00 | % |
Number of shares | Weighted average grant date fair value | Number of shares | Weighted average grant date fair value | |||||||||||||
Nonvested balance at February 3, 2018 | 207,346 | $ | 26.15 | |||||||||||||
Granted | 64,511 | 58.93 | ||||||||||||||
Forfeited | 0 | 0 | ||||||||||||||
Vested | (51,657 | ) | 26.19 | |||||||||||||
Nonvested balance at February 2, 2019 | 220,200 | 35.75 | 220,200 | $ | 35.75 | |||||||||||
Granted | 77,469 | 75.40 | 77,469 | 75.40 | ||||||||||||
Forfeited | (60,172 | ) | 50.25 | (60,172 | ) | 50.25 | ||||||||||
Vested | (59,951 | ) | 33.82 | (59,951 | ) | 33.82 | ||||||||||
Nonvested balance at February 1, 2020 | 177,546 | 48.78 | 177,546 | 48.78 | ||||||||||||
Granted | 64,771 | 43.30 | 64,771 | 43.30 | ||||||||||||
Forfeited | (24,917 | ) | 51.61 | (24,917 | ) | 51.61 | ||||||||||
Vested | (68,562 | ) | 34.99 | (68,562 | ) | 34.99 | ||||||||||
Nonvested balance at January 30, 2021 | 148,838 | 52.28 | 148,838 | 52.28 | ||||||||||||
Granted | 59,195 | 83.18 | ||||||||||||||
Forfeited | (19,887 | ) | 62.27 | |||||||||||||
Vested | (62,663 | ) | 44.51 | |||||||||||||
Nonvested balance at January 29, 2022 | 125,483 | 69.15 |
(9) | Employee Benefit Plans |
(10) | Common Stock |
(11) | Segment Reporting and Entity-Wide Information |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||||
January 30, 2021 | February 1, 2020 | February 2, 2019 | January 29, 2022 | January 30, 2021 | February 1, 2020 | |||||||||||||||||||
Housewares | 15.7 | % | 15.0 | % | 15.1 | % | 14.9 | % | 15.7 | % | 15.0 | % | ||||||||||||
Bed and bath | 10.9 | 10.5 | 10.1 | 10.7 | 10.9 | 10.5 | ||||||||||||||||||
Food | 10.2 | 10.8 | 11.0 | 10.3 | 10.2 | 10.8 | ||||||||||||||||||
Floor coverings | 8.5 | 8.4 | 7.8 | 8.6 | 8.5 | 8.4 | ||||||||||||||||||
Books and stationery | 7.9 | 7.6 | 8.6 | |||||||||||||||||||||
Electronics | 6.8 | 6.1 | 6.6 | |||||||||||||||||||||
Toys | 6.4 | 6.2 | 6.5 | |||||||||||||||||||||
Health and beauty aids | 7.7 | 5.7 | 5.6 | 5.9 | 7.7 | 5.7 | ||||||||||||||||||
Books and stationery | 7.6 | 8.6 | 9.4 | |||||||||||||||||||||
Toys | 6.2 | 6.5 | 6.8 | |||||||||||||||||||||
Electronics | 6.1 | 6.6 | 6.8 | |||||||||||||||||||||
Other | 27.1 | 27.9 | 27.4 | 28.5 | 27.1 | 27.9 | ||||||||||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
(12) | Quarterly Results of Operations and Seasonality (Unaudited) |
2020 | 2019 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 515,763 | $ | 414,382 | $ | 529,313 | $ | 349,363 | $ | 422,431 | $ | 327,049 | $ | 333,865 | $ | 324,854 | $ | 501,135 | $ | 383,487 | $ | 415,881 | $ | 452,492 | $ | 515,763 | $ | 414,382 | $ | 529,313 | $ | 349,363 | ||||||||||||||||||||||||||||||||
Gross profit | 204,657 | 171,501 | 206,842 | 140,366 | 165,540 | 133,282 | 124,033 | 132,734 | 183,041 | 152,560 | 163,035 | 182,610 | 204,657 | 171,501 | 206,842 | 140,366 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 64,660 | 45,197 | 99,383 | 33,456 | 50,287 | 26,956 | 25,170 | 38,717 | 44,727 | 23,185 | 34,323 | 55,220 | 64,660 | 45,197 | 99,383 | 33,456 | ||||||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per common share | $ | 0.99 | $ | 0.69 | $ | 1.53 | $ | 0.53 | $ | 0.80 | $ | 0.43 | $ | 0.40 | $ | 0.61 | $ | 0.71 | $ | 0.36 | $ | 0.53 | $ | 0.84 | $ | 0.99 | $ | 0.69 | $ | 1.53 | $ | 0.53 | ||||||||||||||||||||||||||||||||
Diluted earnings per common share | $ | 0.98 | $ | 0.68 | $ | 1.50 | $ | 0.51 | $ | 0.77 | $ | 0.41 | $ | 0.38 | $ | 0.59 | $ | 0.71 | $ | 0.36 | $ | 0.52 | $ | 0.84 | $ | 0.98 | $ | 0.68 | $ | 1.50 | $ | 0.51 |
(13) | Transactions with Affiliated and Related Parties |
Subsequent Event |
January 30, 2021 | February 1, 2020 | January 29, 2022 | January 30, 2021 | |||||||||||||
Assets | ||||||||||||||||
Total current assets | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Long-term assets: | ||||||||||||||||
Investment in subsidiaries | 1,334,881 | 1,058,885 | 1,287,710 | 1,334,881 | ||||||||||||
Total assets | $ | 1,334,881 | $ | 1,058,885 | $ | 1,287,710 | $ | 1,334,881 | ||||||||
Liabilities and stockholders’ equity | ||||||||||||||||
Total current liabilities | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Total long-term liabilities | 0 | 0 | 0 | 0 | ||||||||||||
Total liabilities | 0 | 0 | 0 | 0 | ||||||||||||
Stockholders’ equity: | ||||||||||||||||
Common stock | 66 | 64 | 67 | 66 | ||||||||||||
Additional paid-in capital | 648,949 | 615,350 | 664,293 | 648,949 | ||||||||||||
Retained earnings | 726,267 | 483,571 | 883,722 | 726,267 | ||||||||||||
Treasury stock, at cost | (40,401 | ) | (40,100 | ) | (260,372 | ) | (40,401 | ) | ||||||||
Total stockholders’ equity | 1,334,881 | 1,058,885 | 1,287,710 | 1,334,881 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 1,334,881 | $ | 1,058,885 | $ | 1,287,710 | $ | 1,334,881 |
Fiscal year ended | Fiscal year ended | |||||||||||||||||||||||
January 30, 2021 | February 1, 2020 | February 2, 2019 | January 29, 2022 | January 30, 2021 | February 1, 2020 | |||||||||||||||||||
Net sales | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
Cost of sales | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Gross profit | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Depreciation and amortization expenses | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Pre-opening expenses | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Operating income | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Interest expense, net | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Income before income taxes and equity in net income of subsidiaries | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Income tax expense | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Income before equity in net income of subsidiaries | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Net income of subsidiaries | 242,696 | 141,130 | 135,013 | 157,455 | 242,696 | 141,130 | ||||||||||||||||||
Net income | $ | 242,696 | $ | 141,130 | $ | 135,013 | $ | 157,455 | $ | 242,696 | $ | 141,130 |
1. | Basis of presentation |
2. | Guarantees and restrictions |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
/s/ KPMG LLP | |
Philadelphia, Pennsylvania | |
March 25, 2022 |
Item 9B. | Other Information |
Item 9C. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
Item 10. | Directors, Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accountant Fees and Services |
Item 15. | Exhibits and Financial Statement Schedules |
Exhibit no. | Description |
3.1† | Second Amended and Restated Certificate of Incorporation of Ollie’s Bargain Outlet Holdings, Inc. (incorporated by reference to Exhibit 3.1 to the Current Report filed on Form 8-K by the Company on July 21, 2015 (No. 001-37501)). |
3.2† | Second Amended and Restated Bylaws of Ollie’s Bargain Outlet Holdings, Inc. (incorporated by reference to Exhibit 3.2 to the Current Report filed on Form 8-K by the Company on July 21, 2015 (No. 001-37501)). |
3.3† | Third Amended and Restated Certificate of Incorporation of Ollie’s Bargain Outlet Holdings, Inc., as effective June 25, 2019 (incorporate by reference to Exhibit 3.1 to the Current Report filed on Form 8-K by the Company on July 1, 2019 (No. 001-37501)). |
3.4† | Fourth Amended and Restated Bylaws of Ollie’s Bargain Outlet Holdings, Inc., as effective June 25, 2019 (incorporated by reference to Exhibit 3.2 to the Current Report filed on Form 8-K by the Company on July 1, 2019 (No. 001-37501)). |
4.1† | Form of Certificate of Common Stock (incorporated by reference to Exhibit 4.1 to Amendment No. 3 to the Form S-1 Registration Statement filed by the Company on July 8, 2015 (No. 333-204942)). |
Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of | |
1934 (incorporated by reference to Exhibit 4.2 to the Form 10-K filed by the Company on March 24, 2021 (No. 001-37501)). | |
10.1† | Amended and Restated Credit Agreement, dated May 22, 2019, among Bargain Parent, Inc., OBO Ventures, Inc. and certain subsidiaries, as borrowers, Manufacturers and Traders Trust Company, as Administrative Agent, and certain lenders party thereto (incorporated by reference to Exhibit 10.1 to the Current Report filed on Form 8-K by the Company on May 24, 2019 (No. 001-37501)). |
10.2† | Amended and Restated Guarantee and Collateral Agreement, dated May 22, 2019, Bargain Parent, Inc., Ollie’s Holdings, Inc., OBO Ventures, Inc. and certain subsidiaries, in favor of Manufacturers and Trading Trust Company, as Administrative Agent (incorporated by reference to Exhibit 10.2 to the Current Report filed on Form 8-K by the Company on May 24, 2019 (No. 001-37501)). |
10.3† | Form of Director and Officer Indemnification Agreement (incorporated by reference to Exhibit 10.9.1 to Amendment No. 3 to the Form S-1 Registration Statement filed by the Company on July 8, 2015 (No. 333-204942)). |
10.4† | Form of Sponsor Director Indemnification Agreement (incorporated by reference to Exhibit 10.9.2 to Amendment No. 3 to the Form S-1 Registration Statement filed by the Company on July 8, 2015 (No. 333-204942)). |
10.5† | |
Employment Agreement, dated September 28, 2012, by and between Ollie’s Bargain Outlet, Inc. and John W. Swygert, Jr. (incorporated by reference to Exhibit 10.11 to the Form S-1 Registration Statement filed by the Company on June 15, 2015 (No. 333-204942)). |
Employment Agreement, dated May 12, 2014, by and between Ollie’s Bargain Outlet, Inc. and Kevin McLain (incorporated by reference to Exhibit 10.13 to the Form S-1 Registration Statement filed by the Company on June 15, 2015 (No. 333-204942)). |
Exhibit no. | Description |
Employment Agreement, dated November 18, 2015, by and between Ollie’s Bargain Outlet, Inc. and Jay Stasz (incorporated by reference to Exhibit 10.1 to the Quarterly Report filed on Form 10-Q by the Company on December 10, 2015 (No. 001-37501)). | |
10.8† | Employment Agreement, dated May 3, 2021, by and between Ollie’s Bargain Outlet, Inc. and Eric van der Valk (incorporated by reference to Exhibit 10.1 to the Current Report filed on Form 8-K by the Company on May 3, 2021 (No. 001-37501)). |
Employment Agreement, dated October 1, 2021, by and between Ollie’s Bargain Outlet, Inc. and James Comitale (incorporated by reference to Exhibit 10.1 to the Quarterly Report filed on Form 10-Q by the Company on December 7, 2021 (No. 001-37501)). | |
Bargain Holdings Inc. 2012 Equity Incentive Plan (incorporated by reference to Exhibit 10.16 to the Form S-1 Registration Statement filed by the Company on June 15, 2015 (No. 333-204942)). | |
Form of Stock Option Agreement under Bargain Holdings, Inc. 2012 Equity Incentive Plan (incorporated by reference to Exhibit 10.17 to the Form S-1 Registration Statement filed by the Company on June 15, 2015 (No. 333-204942)). | |
Form of Stock Option Agreement under 2015 Equity Incentive Plan (incorporated by reference to Exhibit 10.23 to Amendment No. 2 to the Form S-1 Registration Statement filed by the Company on July 6, 2015 (No. 333- 204942)). | |
Amendment to Employment Agreement, dated July 15, 2015, by and between Ollie’s Bargain Outlet, Inc. and John W. Swygert, Jr (incorporated by reference to Exhibit 10.24 to the Form S-1 Registration Statement filed by the Company on February 8, 2016 (No. 333-209420)). | |
Amendment to Employment Agreement, dated July 15, 2015, by and between Ollie’s Bargain Outlet, Inc. and Kevin McLain (incorporated by reference to Exhibit 10.26 to the Form S-1 Registration Statement filed by the Company on February 8, 2016 (No. 333-209420)). | |
Amendment to Employment Agreement, dated January 5, 2018, by and between Ollie’s Bargain Outlet, Inc. and Jay Stasz (incorporated by reference to Exhibit 10.1 to the Current Report filed on Form 8-K by the Company on January 5, 2018 (No. 001-37501)). | |
Amendment to Employment Agreement, dated January 5, 2018, by and between Ollie’s Bargain Outlet, Inc. and John W. Swygert, Jr. (incorporated by reference to Exhibit 10.2 to the Current Report filed on Form 8-K by the Company on January 5, 2018 (No. 001-37501)). | |
Amendment to Employment Agreement, dated December 10, 2019, by and between Ollie’s Bargain Outlet, Inc. and John W. Swygert, Jr. (incorporated by reference to Exhibit 10.1 to the Current Report filed on Form 8-K by the Company on December 10, 2019 (No. 001-37501)). |
Exhibit no. | Description |
Amendment to Employment Agreement, dated April 11, 2021, by and between Ollie’s Bargain Outlet, Inc. and Kevin McLain (incorporated by reference to Exhibit 10.1 to the Current Report filed on Form 8-K by the Company on April 15, 2021 (No. 001-37501)). | |
Amendment to Employment Agreement, dated April 11, 2021, by and between Ollie’s Bargain Outlet, Inc. and Kenneth Robert Bertram (incorporated by reference to Exhibit 10.2 to the Current Report filed on Form 8-K by the Company on April 15, 2021 (No. 001-37501)). | |
Separation Agreement and General Release, dated August 11, 2021, by and between Ollie’s Bargain Outlet, Inc. and Raymond Daugherty (incorporated by reference to Exhibit 10.1 to the Current Report filed on Form 8-K by the Company on August 12, 2021 (No. 001-37501)). | |
List of subsidiaries | |
Consent of KPMG LLP | |
Power of Attorney (included on the signature pages herein). | |
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS** | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |
101.SCH** | Inline XBRL Taxonomy Extension Schema Document. |
101.CAL** | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF** | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB** | Inline XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE** | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
* | Filed herewith. |
† | Previously filed. |
** | Submitted electronically with this report. |
Item 16. | Form 10-K Summary |
OLLIE’S BARGAIN OUTLET HOLDINGS, INC. | ||
Date: March | By: | /s/ Jay Stasz |
Name: Jay Stasz | ||
Title: Senior Vice President and Chief Financial Officer | ||
(Principal Financial and Accounting Officer) |
Signature | Title | |
/s/ John Swygert | President and Chief Executive Officer | |
John Swygert | (Principal Executive Officer) | |
/s/ Jay Stasz | Senior Vice President | |
Jay Stasz | and Chief Financial Officer | |
(Principal Financial and Accounting Officer) | ||
/s/ Richard Zannino | Director | |
Richard Zannino | ||
/s/ Stephen White | Director | |
Stephen White | ||
/s/ Stanley Fleishman | Director | |
Stanley Fleishman | ||
/s/ Thomas Hendrickson | Director | |
Thomas Hendrickson | ||
/s/ Robert Fisch | Director | |
Robert Fisch | ||
/s/ Alissa Ahlman | Director | |
Alissa Ahlman |