Exhibit 99.2
BJ’s Wholesale Club, Inc.
Supplemental Information as of January 30, 2010
The following supplemental information is provided by the Company with respect to the results reported for the fourth quarter and full year ended January 30, 2010, as well as earnings guidance for the year ending January 29, 2011 (“fiscal 2010”).
Comparative Club Sales by Major Market
Comparative club sales by major market, including the impact from sales of gasoline were as follows:
| | | | | | | | | | | | | | | | | | |
| | | Thirteen Weeks Ended January 30, 2010 | | | Fifty-Two Weeks Ended January 30, 2010 | |
| | | Comparable
Club Sales | | | Impact of
Gasoline Sales | | | Merchandise
Comparable
Club Sales | | | Comparable
Club Sales | | | Impact of
Gasoline Sales | | | Merchandise
Comparable
Club Sales | |
New England | | 5.1 | % | | 2.2 | % | | 2.9 | % | | (1.4 | )% | | (5.6 | )% | | 4.2 | % |
Upstate New York | | 5.3 | % | | 3.5 | % | | 1.8 | % | | (6.4 | )% | | (9.6 | )% | | 3.2 | % |
Metro New York | | 3.5 | % | | 0.7 | % | | 2.8 | % | | 4.2 | % | | (1.0 | )% | | 5.2 | % |
Mid Atlantic | | 2.2 | % | | 2.3 | % | | (0.1 | )% | | (3.4 | )% | | (5.6 | )% | | 2.2 | % |
Southeast | | 6.3 | % | | 3.7 | % | | 2.6 | % | | (5.7 | )% | | (9.5 | )% | | 3.8 | % |
| | | | | | | | | | | | | | | | | | |
Total | | 4.6 | % | | 2.3 | % | | 2.3 | % | | (1.9 | )% | | (5.9 | )% | | 4.0 | % |
| | | | | | | | | | | | | | | | | | |
Selected Metrics
Excluding sales of gasoline, on a comparable club basis, customer count and average transaction amount increased (decreased) from the prior year by approximately:
| | | | | | |
| | | Customer
Count | | | Average
Transaction
Amount | |
Thirteen Weeks Ended January 30, 2010 | | 4 | % | | (2 | )% |
Fifty-Two Weeks Ended January 30, 2010 | | 5 | % | | (1 | )% |
Fourth Quarter Individual Department Performance
Stronger performing departments compared to last year’s fourth quarter included breakfast foods, candy, cigarettes, computers, frozen, health & beauty aids, household chemicals, housewares, juices, paper products, produce, residential furniture, salty snacks and small appliances. Weaker performing departments compared to last year’s fourth quarter included automotive and tools, jewelry, pre-recorded video, sporting goods, televisions, toys and trash bags.
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GAAP to Non-GAAP Reconciliation
The following is a reconciliation of net income and diluted earnings per share, as reported on a GAAP basis, to the non-GAAP normalized net income and diluted earnings per share referenced in our earnings call, for the thirteen weeks and fifty-two weeks ended January 30, 2010 and January 31, 2009:
| | | | | | | | | | | | | | | | |
| | | Thirteen Weeks Ended | | | Fifty-Two Weeks Ended | |
| (Dollars in Thousands) | | January 30,
2010 | | | January 31,
2009 | | | January 30,
2010 | | | January 31,
2009 | |
GAAP net income | | $ | 55,065 | | | $ | 52,659 | | | $ | 132,136 | | | $ | 134,583 | |
Charge for wage and hour litigation settlement | | | — | | | | — | | | | 6,938 | | | | — | |
MasterCard® and Visa® class action settlement | | | (1,789 | ) | | | — | | | | (1,789 | ) | | | — | |
Income related to reserve for credit card claims | | | (1,724 | ) | | | — | | | | (1,724 | ) | | | — | |
Income related to tax audit settlements | | | — | | | | (1,326 | ) | | | — | | | | (3,333 | ) |
Expense related to Greenville club closure | | | — | | | | — | | | | — | | | | 504 | |
| | | | | | | | | | | | | | | | |
Net income excluding unusual items | | $ | 51,552 | | | $ | 51,333 | | | $ | 135,561 | | | $ | 131,754 | |
Gasoline income above plan | | | — | | | | — | | | | — | | | | (9,997 | ) |
Unplanned severance costs and sales tax audit adjustment | | | — | | | | — | | | | — | | | | 2,614 | |
Higher than planned bonus accruals triggered by gasoline income | | | — | | | | — | | | | — | | | | 1,627 | |
| | | | | | | | | | | | | | | | |
Total unusual items | | | — | | | | — | | | | — | | | | (5,756 | ) |
| | | | | | | | | | | | | | | | |
Non-GAAP normalized net income | | $ | 51,552 | | | $ | 51,333 | | | $ | 135,561 | | | $ | 125,998 | |
| | | | | | | | | | | | | | | | |
| | |
| | | Thirteen Weeks Ended | | | Fifty-Two Weeks Ended | |
| | | January 30,
2010 | | | January 31,
2009 | | | January 30,
2010 | | | January 31,
2009 | |
GAAP diluted earnings per common share | | $ | 1.01 | | | $ | 0.91 | | | $ | 2.42 | | | $ | 2.28 | |
Charge for wage and hour litigation settlement | | | — | | | | — | | | | 0.13 | | | | — | |
MasterCard® and Visa® class action settlement | | | (0.03 | ) | | | — | | | | (0.03 | ) | | | — | |
Income related to reserve for credit card claims | | | (0.03 | ) | | | — | | | | (0.03 | ) | | | — | |
Income related to tax audit settlements | | | — | | | | (0.02 | ) | | | — | | | | (0.06 | ) |
Expense related to Greenville club closure | | | — | | | | — | | | | — | | | | 0.01 | |
| | | | | | | | | | | | | | | | |
Diluted earnings per common share excluding unusual items | | $ | 0.95 | | | $ | 0.89 | | | $ | 2.48 | | | $ | 2.23 | |
Gasoline income above plan | | | — | | | | — | | | | — | | | | (0.17 | ) |
Unplanned severance costs and sales tax audit adjustment | | | — | | | | — | | | | — | | | | 0.04 | |
Higher than planned bonus accruals triggered by gasoline income | | | — | | | | — | | | | — | | | | 0.03 | |
| | | | | | | | | | | | | | | | |
Total unusual items | | | — | | | | — | | | | — | | | | (0.10 | ) |
| | | | | | | | | | | | | | | | |
Non-GAAP normalized diluted earnings per common share | | $ | 0.95 | | | $ | 0.89 | | | $ | 2.48 | | | $ | 2.14 | |
| | | | | | | | | | | | | | | | |
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GAAP to Non-GAAP Earnings Guidance Reconciliation
The following is a reconciliation of net income and diluted earnings per share guidance, as reported on a GAAP basis, to the adjusted non-GAAP net income and diluted earnings per share guidance referenced in our earnings call, for the thirteen weeks ending May 1, 2010 and fifty-two weeks ending January 29, 2011, as well as actual results for last year’s comparable periods:
| | | | | | | | | | | |
| | | Thirteen Weeks | | Fifty-Two Weeks | |
| (Dollars in Thousands) | | Ending
May 1,
2010 | | Ended
May 2,
2009 | | Ending
January 29,
2011 | | Ended
January 30,
2010 | |
GAAP net income | | $21,300 - $23,700 | | $ | 24,335 | | $133,100 - $138,100 | | $ | 132,136 | |
Charge for wage and hour litigation settlement | | — | | | — | | — | | | 6,938 | |
MasterCard® and Visa® class action settlement | | — | | | — | | — | | | (1,789 | ) |
Income related to reserve for credit card claims | | — | | | — | | — | | | (1,724 | ) |
| | | | | | | | | | | |
Adjusted non-GAAP earnings | | $21,300 - $23,700 | | $ | 24,335 | | $133,100 - $138,100 | | $ | 135,561 | |
| | | | | | | | | | | |
| | |
| | | Thirteen Weeks | | Fifty-Two Weeks | |
| | | Ending
May 1,
2010 | | Ended
May 2,
2009 | | Ending
January 29,
2011 | | Ended
January 30,
2010 | |
GAAP diluted earnings per common share | | $0.40 -$0.45 | | $ | 0.45 | | $2.54 - $2.64 | | $ | 2.42 | |
Charge for wage and hour litigation settlement | | — | | | — | | — | | | 0.13 | |
MasterCard® and Visa® class action settlement | | — | | | — | | — | | | (0.03 | ) |
Income related to reserve for credit card claims | | — | | | — | | — | | | (0.03 | ) |
| | | | | | | | | | | |
Adjusted non-GAAP earnings per common share | | $0.40 - $0.45 | | $ | 0.45 | | $2.54 - $2.64 | | $ | 2.48 | |
| | | | | | | | | | | |
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Operating Income to Non-GAAP Normalized Operating Income plus Depreciation Expense plus Stock Incentive Expense Reconciliation
The following is a reconciliation of operating income, as reported on a GAAP basis, to non-GAAP normalized operating income plus depreciation plus stock incentive expense referenced in our earnings call, for the fifty-two weeks ended January 30, 2010 and January 31, 2009, as well as guidance on the same basis for the fifty-two weeks ending January 29, 2011:
| | | | | | | | | | |
| | | Fifty-Two Weeks | |
| (Dollars in Thousands) | | Ending
January 29,
2011 | | Ended
January 30,
2010 | | | Ended
January 31,
2009 | |
GAAP operating income | | $227,000 - $235,000 | | $ | 223,787 | | | $ | 220,927 | |
Charge for wage and hour litigation settlement | | — | | | 11,700 | | | | — | |
MasterCard® and Visa® class action settlement | | — | | | (3,011 | ) | | | — | |
Income related to reserve for credit card claims | | — | | | (2,902 | ) | | | — | |
| | | | | | | | | | |
Operating income excluding unusual items | | $227,000 - $235,000 | | $ | 229,574 | | | $ | 220,927 | |
Gasoline income above plan | | — | | | — | | | | (16,858 | ) |
Unplanned severance costs and sales tax audit adjustment | | — | | | — | | | | 4,408 | |
Higher than planned bonus accruals triggered by gasoline income | | — | | | — | | | | 2,744 | |
| | | | | | | | | | |
Total unusual items | | — | | | — | | | | (9,706 | ) |
| | | | | | | | | | |
Non-GAAP normalized operating income | | $227,000 - $235,000 | | $ | 229,574 | | | $ | 211,221 | |
Depreciation expense | | $130,000 - $136,000 | | | 112,777 | | | | 107,608 | |
Stock incentive expense | | $20,500 - $21,000 | | | 22,011 | | | | 19,398 | |
| | | | | | | | | | |
Non-GAAP normalized operating income plus depreciation expense plus stock incentive expense | | $380,000 - $390,000 | | $ | 364,362 | | | $ | 338,227 | |
| | | | | | | | | | |
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Earnings Guidance
The following chart presents the detailed elements of our sales and earnings guidance for Fiscal 2010:
| | | | |
| | | 1st Quarter | | Full Year |
Net sales increase | | 12.6% to 14.6% | | 8.6% to 12.6% |
Comparable club sales increase | | 6.5% to 8.5% | | 4.0% to 6.0% |
Impact of gasoline sales on comparable club sales | | 3.0% to 4.0% | | 0.5% to 2.5% |
Merchandise comparable club sales increase | | 3.0% to 5.0% | | 2.5% to 4.5% |
Membership fee growth | | 4.5% to 5.5% | | 4.5% to 5.5% |
Other revenues growth | | 11.0% to 13.0% | | 9.5% to 11.5% |
Cost of sales as a percent of net sales increase | | 0.32% to 0.42% | | 0.00% to 0.20% |
Merchandise margin rate increase (decrease) | | (0.05)% to (0.15)% | | 0.15% to 0.25% |
SG&A expense as a percent of net sales increase (decrease) | | (0.12)% to (0.28)% | | 0.05% to (0.15)% |
SG&A expense growth | | 10.0% to 12.0% | | 5.0% to 15.0% |
Preopening expense (in millions) | | $2.0 to $2.5 | | $7.0 to $9.0 |
Interest expense (in millions) | | $0.3 to $0.9 | | $2.0 to $3.0 |
Income Tax Rate | | 40.6% | | 40.6% |
Forward-Looking Statements
This exhibit contains forward-looking statements as defined by The Private Securities Litigation Reform Act of 1995, including earnings guidance. Actual results may differ materially from those indicated by these forward-looking statements. Factors that may cause or contribute to such differences include, without limitation, levels of gasoline profitability, levels of customer demand, economic and weather conditions, the rate of deflation, federal, state and local regulation in the Company’s markets, federal budgetary and tax policy, litigation, competitive conditions and other factors discussed in the Company’s Annual Report on SEC Form 10-K for the fiscal year ended January 31, 2009. Any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.
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