Exhibit 99.1
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 | | News |
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FOR IMMEDIATE RELEASE | | Contact: Cathy Maloney |
| | VP Investor Relations |
| | 508-651-6650 |
| | cmaloney@bjs.com |
BJ’S WHOLESALE CLUB ANNOUNCES FIRST QUARTER EARNINGS
Updates Full Year 2010 Earnings Guidance to a Range of $2.58 to $2.68
NATICK, MA — May 19, 2010 —BJ’s Wholesale Club, Inc. (NYSE: BJ) today reported net income for the first quarter of 2010 of $26.1 million, or $0.49 per diluted share. For the first quarter of 2009, the Company reported net income of $24.3 million, or $0.45 per diluted share.
Net sales for the first quarter of 2010 increased by 12.9% to $2.55 billion and comparable club sales increased by 7.8%, including a contribution from sales of gasoline of 3.6%. Excluding the impact of gasoline, merchandise comparable club sales increased by 4.2%. Net sales for the first quarter of 2009 increased by 0.2% to $2.26 billion and comparable club sales decreased by 1.5%, including the negative impact from sales of gasoline of 9.0%. Excluding the impact of gasoline, merchandise comparable club sales increased by 7.5%.
During the first quarter of 2010, the Company repurchased 272,800 shares of BJ’s common stock at an average price of $33.69 per share, for a total expenditure of approximately $9.2 million. As of May 1, 2010, approximately $272.0 million remained available for stock repurchases under existing board authorizations.
Revised Earnings Guidance for Fiscal 2010
The Company today also announced revised earnings guidance. For the year ending January 29, 2011, the Company now expects to report earnings per diluted share in the range of $2.58 to $2.68 and net income in the range of $136.9 million to $141.9 million. Previous guidance was for earnings per diluted share in the range of $2.54 to $2.64 and net income in the range of $133.1 million to $138.1 million.
Conference Call Information for First 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 results for the first quarter of 2010 and to discuss its outlook for the second quarter and full year. To access the webcast, visit www.bjsinvestor.com to hear the call live, or to listen to an archive of the call, which will be available for approximately ninety days following the call.
About BJ’s Wholesale Club
BJ’s introduced the wholesale club concept to New England in 1984 and has since expanded to become a leading warehouse club chain in the eastern United States. The Company currently operates 188 BJ’s Wholesale Clubs in 15 states. BJ’s press releases and filings with the SEC are available on the Internet atwww.bjsinvestor.com.
Additional Information
Supplemental financial information, including detailed sales information for the first quarter and earnings guidance for the second quarter and full year, 2010, which has historically been provided during the Company’s first quarter conference call, is available on the Form 8-K submitted by the Company today to the SEC. To access this information, visit www.bjsinvestor.com.
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BJ’s Wholesale Club
May 19, 2010
Page 2
Forward-Looking Statements
Statements contained in this press release, including earnings guidance, that are not purely historical are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act 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, the rate of inflation or deflation, federal, state and local regulation in the Company’s markets, federal budgetary and tax policy, litigation, competitive conditions, progress associated with the implementation of technology initiatives and other factors discussed in the Company’s Annual Report on SEC Form 10-K for the fiscal year ended January 30, 2010. 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.
-See Attached Financial Tables -
BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries
STATEMENTS OF INCOME (Unaudited)
(Dollars in Thousands Except Per Share Amounts)
| | | | | | | | |
| | | Thirteen Weeks Ended | |
| | | May 1, 2010 | | | May 2, 2009 | |
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Net sales | | $ | 2,548,961 | | | $ | 2,258,598 | |
Membership fees | | | 46,982 | | | | 44,387 | |
Other revenues | | | 12,171 | | | | 10,986 | |
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Total revenues | | | 2,608,114 | | | | 2,313,971 | |
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Cost of sales, including buying and occupancy costs | | | 2,331,906 | | | | 2,066,017 | |
Selling, general and administrative expenses | | | 229,866 | | | | 205,132 | |
Preopening expenses | | | 1,954 | | | | 1,569 | |
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Operating income | | | 44,388 | | | | 41,253 | |
Interest expense, net | | | (227 | ) | | | (135 | ) |
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Income from continuing operations before income taxes | | | 44,161 | | | | 41,118 | |
Provision for income taxes | | | 17,974 | | | | 16,694 | |
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Income from continuing operations | | | 26,187 | | | | 24,424 | |
Loss from discontinued operations, net of income taxes | | | (98 | ) | | | (88 | ) |
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Net income | | $ | 26,089 | | | $ | 24,336 | |
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Basic earnings per common share: | | | | | | | | |
Income from continuing operations | | $ | 0.50 | | | $ | 0.46 | |
Loss from discontinued operations | | | — | | | | (0.01 | ) |
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Net income | | $ | 0.50 | | | $ | 0.45 | |
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Diluted earnings per common share: | | | | | | | | |
Income from continuing operations | | $ | 0.49 | | | $ | 0.45 | |
Loss from discontinued operations | | | — | | | | — | |
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Net income | | $ | 0.49 | | | $ | 0.45 | |
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Number of common shares for earnings per share computations: | | | | | | | | |
Basic | | | 51,984,549 | | | | 53,572,601 | |
Diluted | | | 53,311,957 | | | | 54,446,255 | |
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BJ’s clubs in operation - end of period | | | 188 | | | | 180 | |
BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries
CONDENSED BALANCE SHEETS (Unaudited)
(Dollars in Thousands)
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| | | May 1, 2010 | | May 2, 2009 |
ASSETS | | | | | | |
Current assets: | | | | | | |
Cash and cash equivalents | | $ | 63,647 | | $ | 40,024 |
Accounts receivable | | | 131,868 | | | 119,238 |
Merchandise inventories | | | 932,623 | | | 883,442 |
Current deferred income taxes | | | 17,577 | | | 13,918 |
Prepaid expenses | | | 36,569 | | | 29,629 |
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Total current assets | | | 1,182,284 | | | 1,086,251 |
Property, net of depreciation | | | 966,443 | | | 918,878 |
Deferred income taxes | | | 5,897 | | | 7,218 |
Other assets | | | 26,084 | | | 22,924 |
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TOTAL ASSETS | | $ | 2,180,708 | | $ | 2,035,271 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
Current liabilities: | | | | | | |
Current installments of long-term debt | | $ | 619 | | $ | 577 |
Short-term debt | | | — | | | 35,000 |
Accounts payable | | | 685,639 | | | 621,141 |
Closed store lease obligations | | | 1,725 | | | 1,857 |
Accrued expenses and other current liabilities | | | 294,670 | | | 302,120 |
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Total current liabilities | | | 982,653 | | | 960,695 |
Long-term debt, less portion due within one year | | | 381 | | | 1,000 |
Noncurrent closed store lease obligations | | | 7,967 | | | 9,164 |
Other noncurrent liabilities | | | 124,620 | | | 105,886 |
Stockholders’ equity | | | 1,065,087 | | | 958,526 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 2,180,708 | | $ | 2,035,271 |
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BJ’s Wholesale Club, Inc. and Consolidated Subsidiaries
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in Thousands)
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| | | Thirteen Weeks Ended | |
| | | May 1, 2010 | | | May 2, 2009 | |
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | |
Net income | | $ | 26,089 | | | $ | 24,336 | |
(Reversal of) provision for closing and impairment costs | | | (72 | ) | | | 28 | |
Depreciation and amortization | | | 30,088 | | | | 27,042 | |
Share-based compensation expense | | | 5,345 | | | | 4,850 | |
Deferred income taxes | | | 331 | | | | 833 | |
Decrease in merchandise inventories, net of accounts payable | | | 26,373 | | | | 9,356 | |
Decrease in closed store lease obligations | | | (419 | ) | | | (318 | ) |
Other | | | (40,771 | ) | | | 5,050 | |
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Net cash provided by operating activities | | | 46,964 | | | | 71,177 | |
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CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | |
Property additions | | | (38,603 | ) | | | (46,557 | ) |
Property disposals | | | 16 | | | | — | |
Purchase of marketable securities | | | (500 | ) | | | (436 | ) |
Sale of marketable securities | | | 1,032 | | | | 31 | |
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Net cash used in investing activities | | | (38,055 | ) | | | (46,962 | ) |
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CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | |
Excess tax benefit from exercise of stock options | | | 252 | | | | 5 | |
Borrowing of short-term debt | | | — | | | | 35,000 | |
Purchase of treasury stock | | | (9,190 | ) | | | (70,410 | ) |
Proceeds from issuance of common stock | | | 5,072 | | | | 195 | |
Repayment of long-term debt | | | (148 | ) | | | (138 | ) |
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Net cash used in financing activities | | | (4,014 | ) | | | (35,348 | ) |
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Net increase (decrease) in cash and cash equivalents | | $ | 4,895 | | | $ | (11,133 | ) |
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