IRVINE, Calif.--(BUSINESS WIRE)--
Boot Barn Holdings, Inc. (NYSE:BOOT) today announced its financial
results for the fiscal quarter ended September 26, 2015.
Highlights for the quarter ended September 26, 2015, were as follows:
-
Net sales increased 50% to $129.7 million;
-
Consolidated same store sales increased 0.1%;
-
Core Boot Barn same store sales, which include bootbarn.com and
exclude Sheplers, increased 1.6%;
-
Pro forma adjusted net income (1) was $1.2 million, or
$0.04 per diluted share (GAAP net loss was $3.3 million, or $0.13 per
share); and
-
Acquired 25 stores and opened 6 new stores.
1) Pro forma adjusted net income is a non-GAAP measure. An explanation
of the computation of this measure and a reconciliation to GAAP net
income is included in the accompanying financial data. See also
"Non-GAAP Financial Measures."
Jim Conroy, Chief Executive Officer, commented, “I am pleased with our
execution in the quarter. We significantly grew our market share through
a combination of the Sheplers acquisition, 25 new stores and growth in
same stores sales. Additionally, despite facing a number of external
headwinds in certain markets, the core Boot Barn business continued to
grow as we achieved our 24th consecutive quarter of positive
same store sales growth. Finally, the integration of the Sheplers
business is on track with the back office systems fully converted and
rebranding expected to be completed before Thanksgiving.”
Operating Results for the Second Quarter Ended September 26, 2015
-
Net sales increased 50% to $129.7 million from $86.4 million in the
second quarter of fiscal 2015. Net sales increased due to
contributions from recently acquired Sheplers, 25 new stores opened
between the beginning of the third quarter of fiscal 2015 and the end
of the second quarter of fiscal 2016, and a 1.6% increase in same
store sales at the core Boot Barn business, excluding Sheplers.
-
The following table illustrates the second quarter same-store sales
results compared to the guidance provided by on August 4, 2015:
|
|
|
|
|
|
|
|
|
Same Store Sales
|
|
|
Second Quarter Boot
Barn Results
|
|
|
Second Quarter Boot Barn
Guidance
|
|
Boot Barn, excluding Sheplers
|
|
|
+1.6%
|
|
|
low to mid-single-digit increase
|
|
Sheplers stores
|
|
|
-2.3%
|
|
|
mid-single-digit decline
|
|
Sheplers e-commerce business
|
|
|
-5.9%
|
|
|
high-single-digit decline
|
|
Sheplers business, including e-commerce
|
|
|
-4.0%
|
|
|
single-digit decline
|
|
Boot Barn consolidated
|
|
|
+0.1%
|
|
|
low-single-digit increase
|
-
Adjusted gross profit was $38.4 million or 29.6% of net sales (on a
GAAP basis, gross profit was $35.9 million or 27.7%) in the second
quarter of fiscal year 2016, an increase of $10.6 million or 38.3%
from gross profit of $27.8 million, or 32.1% of net sales in the
prior-year period. Adjusted gross profit excludes acquisition-related
integration costs, including an adjustment to normalize the impact of
sales of Sheplers’ discontinued inventory, contract termination costs
and the amortization of inventory fair value adjustment. Adjusted
gross profit increased as a result of the addition of the Sheplers
business and the opening of 25 new stores. The decline in gross profit
rate was primarily driven by the addition of the lower margin Sheplers
business and the result of increases in store occupancy costs and
depreciation expense associated with the increase in new store
openings compared to the prior-year period. Merchandise margin rate at
Boot Barn, excluding Sheplers, decreased 50 basis points as a result
of higher freight, shrink and clearance markdowns, partially offset by
an increased markup resulting from higher private brand penetration.
-
Adjusted income from operations was $5.8 million in the second quarter
of fiscal year 2016, an increase of 24.6% compared to $4.6 million in
the prior-year period. Adjusted income/loss from operations excludes
acquisition-related expenses and integration costs, loss on disposal
of assets, contract termination costs and the amortization of
inventory fair value adjustment incurred in the second quarter of
fiscal year 2016. Adjusted income from operations in the second
quarter of fiscal year 2015 has also been adjusted to reflect costs
that the Company estimates would have been incurred had the Company
been a public company during that quarter in addition to $0.9 million
of due diligence costs related to Sheplers. On a GAAP basis, loss from
operations was $0.4 million in the second quarter of fiscal year 2016
and income from operations was $4.4 million in the prior-year period.
-
During the second quarter, the Company acquired 25 Sheplers stores and
closed five of these stores. The Company also opened six Boot Barn
stores and closed one, ending the quarter with 201 stores in 29 states.
-
Pro forma adjusted net income was $1.2 million, or $0.04 per diluted
share compared to $2.0 million or $0.08 per diluted share in the
prior-year period. On a GAAP basis, net loss was $3.3 million, or
$0.13 per share. Net income was $0.9 million or $0.05 per diluted
share in the prior-year period.
Operating Results for the Six Months Ended September 26, 2015
-
Net sales increased 33.7% to $225.7 million from $168.9 million in the
prior-year period. Net sales increased due to contributions from
recently acquired Sheplers, 25 new stores opened between the beginning
of the third quarter of fiscal 2015 and the end of the second quarter
of fiscal 2016 and a 3.6% increase in same store sales at the core
Boot Barn business.
-
Adjusted gross profit was $69.2 million or 30.6% of net sales (on a
GAAP basis, gross profit was $66.7 million or 29.5%) in the first six
months of fiscal year 2016, an increase of $14.5 million, or 26.6%
from gross profit of $54.6 million, or 32.4% of net sales in the
prior-year period. Adjusted gross profit increased as a result of the
addition of the Sheplers business and the opening of 25 new stores.
The decline in gross profit rate was primarily driven by the addition
of the lower margin Sheplers business and the result of increases in
store occupancy costs and depreciation expense associated with the
increase in new store openings compared to the prior-year period.
Merchandise margin rate at Boot Barn, excluding Sheplers, increased 10
basis points.
-
Adjusted income from operations was $11.5 million in the first six
months of fiscal year 2016, an increase of 23.3% compared to $9.3
million in the prior-year period. On a GAAP basis, income from
operations was $4.4 million in the first six months of fiscal year
2016 and $9.8 million in the prior-year period.
-
The Company acquired 25 Sheplers stores, opened 13 Boot Barn stores,
closed five Sheplers and one Boot Barn store, and ended the period
with 201 stores in 29 states.
-
Pro forma adjusted net income was $4.2 million, or $0.16 per diluted
share compared to $3.9 million or $0.15 per diluted share in the
prior-year period. On a GAAP basis, net loss was $1.1 million, or
$0.04 per diluted share, compared to net income of $2.4 million or
$0.05 per diluted share in the prior-year period.
A reconciliation of adjusted gross profit, adjusted income from
operations, pro forma adjusted net income and pro forma adjusted net
income per diluted share, each a non-GAAP financial measure, to their
most directly comparable GAAP financial measures is included in the
accompanying financial data. See also "Non-GAAP Financial Measures."
Balance Sheet Highlights as of September 26, 2015
-
Cash: $7.5 million
-
Total debt: $263.2 million
-
Total liquidity (cash plus availability on $125 million revolving
credit facility): $63.4 million
Fiscal Year 2016 Outlook
For the fiscal year ending March 26, 2016, including Sheplers, the
Company now expects:
-
To open 22 new stores, with 9 expected to open in the second half of
the fiscal year.
-
Consolidated same store sales growth of low single digits.
-
Pro forma adjusted income from operations between $46.5 million and
$48.5 million, compared to the Company’s prior outlook of $49.3
million and $51.5 million.
-
Pro forma adjusted net income of $20.5 million to $21.7 million,
compared to the Company’s prior outlook of $23.2 million to $24.5
million.
-
Pro forma adjusted net income per diluted share of $0.76 to $0.80
based on 27.1 million weighted average diluted shares outstanding,
compared to the Company’s prior outlook of $0.85 to $0.90 per diluted
share.
-
Capital expenditures of approximately $33.0 million, which includes
$13.0 million related to Sheplers.
For the fiscal third quarter ending December 26, 2015, the Company
expects:
-
Same store sales growth for the Boot Barn business, excluding
Sheplers, to be in the flat to low-single digits.
-
Sheplers business to increase mid-single digits for the quarter.
-
Total same store sales growth for Boot Barn, including Sheplers, to be
in the low-single digits.
-
Pro forma adjusted net income per diluted share of $0.47 to $0.49,
based on 27.2 million weighted average diluted shares outstanding.
Our Fiscal 2016 outlook for pro forma adjusted income from operations
and net income excludes merger and integration costs and other
non-recurring expenses, including losses on the disposal of assets and
contract termination costs, acquisition-related expenses,
acquisition-related integration costs, amortization of inventory fair
value adjustment, markdown of discontinued Sheplers inventory, and the
write off of debt discount as part of the June 29, 2015 refinancing. See
the table at the end of this press release that reconciles forecasted
GAAP net income to forecasted pro forma adjusted net income.
Conference Call Information
A conference call to discuss the financial results for the second
quarter of fiscal 2016 is scheduled for today, November 10, 2015, at
4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in
participating in the call are invited to dial (877) 407-4018. The
conference call will also be available to interested parties through a
live webcast at investor.bootbarn.com.
Please visit the website and select the “Events and Presentations” link
at least 15 minutes prior to the start of the call to register and
download any necessary software. A telephone replay of the call will be
available as a replay for 30 days, by dialing (877) 870-5176 (domestic)
or (858) 384-5517 (international) and entering the conference
identification number: 13623470. Please note participants must enter the
conference identification number in order to access the replay.
About Boot Barn
Boot Barn is the nation’s leading lifestyle retailer of western and
work-related footwear, apparel and accessories for men, women and
children. The Company offers its loyal customer base a wide selection of
more than 200 work and lifestyle brands. Boot Barn now operates 205
stores in 29 states, in addition to an e-commerce channel, including
both www.bootbarn.com
and www.sheplers.com.
For more information, call 888-Boot-Barn or visit www.bootbarn.com.
Non-GAAP Financial Measures
The Company presents adjusted gross profit, adjusted income from
operations, pro forma adjusted net income and pro forma adjusted net
income per share to help the Company describe its operating and
financial performance. These financial measures are non-GAAP financial
measures and should not be construed in isolation or as an alternative
to actual gross profit, actual income/(loss) from operations, actual net
income/(loss) and actual diluted earnings/(loss) per share and other
income or cash flow statement data (as presented in the Company’s
consolidated financial statements in accordance with generally accepted
accounting principles in the United States, or GAAP), or as a better
indicator of operating performance or as a measure of liquidity. These
non-GAAP financial measures, as defined by the Company, may not be
comparable to similar non-GAAP financial measures presented by other
companies. The Company’s management believes that these non-GAAP
financial measures provide investors with transparency and help
illustrate financial results by excluding items that may not be
indicative of, or are unrelated to, the Company’s core operating
results, thereby providing a better baseline for analyzing trends in the
underlying business. See the table at the end of this press release for
a reconciliation of adjusted gross profit to gross profit, adjusted
income from operations to income/(loss) from operations, pro forma
adjusted net income to net income/(loss), and pro forma adjusted net
income per share to net income/(loss) per share.
Forward Looking Statements
This press release contains forward-looking statements that are subject
to risks and uncertainties. All statements other than statements of
historical fact included in this press release are forward-looking
statements. You can identify forward-looking statements by the fact that
they generally include words such as "anticipate," "estimate," "expect,"
"project," "plan,“ "intend," "believe," “outlook” and other words and
terms of similar meaning in connection with any discussion of the timing
or nature of future operating or financial performance or other events
but not all forward-looking statements contain these identifying words.
These forward-looking statements are based on assumptions that the
Company’s management has made in light of their industry experience and
on their perceptions of historical trends, current conditions, expected
future developments and other factors they believe are appropriate under
the circumstances. As you consider this press release, you should
understand that these statements are not guarantees of performance or
results. They involve risks, uncertainties (some of which are beyond the
Company’s control) and assumptions. These risks, uncertainties and
assumptions include, but are not limited to, the following: the failure
to realize the anticipated synergies from the Sheplers acquisition and
other risks of integration, declines in consumer spending or changes in
consumer preferences and the Company’s ability to effectively execute on
its growth strategy; to maintain and enhance its strong brand image; to
compete effectively; to maintain good relationships with its key
suppliers; and to improve and expand its exclusive product offerings.
The Company discusses the foregoing risks and other risks in greater
detail under the heading “Risk factors” in the periodic reports filed by
the Company with the Securities and Exchange Commission. Although the
Company believes that these forward-looking statements are based on
reasonable assumptions, you should be aware that many factors could
affect the Company’s actual financial results and cause them to differ
materially from those anticipated in the forward-looking statements.
Because of these factors, the Company cautions that you should not place
undue reliance on any of these forward-looking statements. New risks and
uncertainties arise from time to time, and it is impossible for the
Company to predict those events or how they may affect the Company.
Further, any forward-looking statement speaks only as of the date on
which it is made. Except as required by law, the Company does not intend
to update or revise the forward-looking statements in this press release
after the date of this press release.
|
|
|
Boot Barn Holdings, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
September 26,
|
|
March 28,
|
|
|
|
2015
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
7,458
|
|
$
|
1,448
|
|
Accounts receivable
|
|
|
4,490
|
|
|
3,863
|
|
Inventories
|
|
|
177,977
|
|
|
129,312
|
|
Prepaid expenses and other current assets
|
|
|
17,007
|
|
|
10,656
|
|
Total current assets
|
|
|
206,932
|
|
|
145,279
|
|
Property and equipment, net
|
|
|
64,753
|
|
|
30,054
|
|
Goodwill
|
|
|
191,915
|
|
|
93,097
|
|
Intangible assets, net
|
|
|
66,196
|
|
|
57,131
|
|
Other assets
|
|
|
955
|
|
|
567
|
|
Total assets
|
|
$
|
530,751
|
|
$
|
326,128
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Line of credit
|
|
$
|
69,018
|
|
$
|
16,200
|
|
Accounts payable
|
|
|
60,678
|
|
|
44,636
|
|
Accrued expenses and other current liabilities
|
|
|
35,278
|
|
|
24,061
|
|
Current portion of notes payable
|
|
|
1,048
|
|
|
1,596
|
|
Total current liabilities
|
|
|
166,022
|
|
|
86,493
|
|
Deferred taxes
|
|
|
3,957
|
|
|
21,102
|
|
Long-term portion of notes payable
|
|
|
193,089
|
|
|
72,030
|
|
Capital lease obligation
|
|
|
8,494
|
|
|
15
|
|
Other liabilities
|
|
|
10,459
|
|
|
4,066
|
|
Total liabilities
|
|
|
382,021
|
|
|
183,706
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
Common stock, $0.0001 par value; September 26, 2015 - 100,000
shares
authorized, 26,313 shares issued and outstanding;
March 28, 2015 - 100,000
shares authorized, 25,824 shares
issued and outstanding
|
|
|
3
|
|
|
3
|
|
Preferred stock, $0.0001 par value; 10,000 shares authorized, no
shares
issued or outstanding
|
|
|
—
|
|
|
—
|
|
Additional paid-in capital
|
|
|
136,073
|
|
|
128,693
|
|
Retained earnings
|
|
|
12,654
|
|
|
13,726
|
|
Total stockholders’ equity
|
|
|
148,730
|
|
|
142,422
|
|
Total liabilities and stockholders’ equity
|
|
$
|
530,751
|
|
$
|
326,128
|
|
|
|
|
|
|
|
|
|
|
|
Boot Barn Holdings, Inc.
|
|
|
|
Consolidated Statements of Operations
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
|
|
|
September 26,
|
|
September 27,
|
|
September 26,
|
|
September 27,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Net sales
|
|
$
|
129,712
|
|
|
$
|
86,384
|
|
$
|
225,712
|
|
|
$
|
168,881
|
|
Cost of goods sold
|
|
|
94,064
|
|
|
|
58,631
|
|
|
159,285
|
|
|
|
114,238
|
|
Amortization of inventory fair value adjustment
|
|
|
(225
|
)
|
|
|
—
|
|
|
(225
|
)
|
|
|
—
|
|
Total cost of goods sold
|
|
|
93,839
|
|
|
|
58,631
|
|
|
159,060
|
|
|
|
114,238
|
|
Gross profit
|
|
|
35,873
|
|
|
|
27,753
|
|
|
66,652
|
|
|
|
54,643
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
36,284
|
|
|
|
23,371
|
|
|
61,337
|
|
|
|
44,868
|
|
Acquisition-related expenses
|
|
|
—
|
|
|
|
—
|
|
|
891
|
|
|
|
—
|
|
Total operating expenses
|
|
|
36,284
|
|
|
|
23,371
|
|
|
62,228
|
|
|
|
44,868
|
|
(Loss)/income from operations
|
|
|
(411
|
)
|
|
|
4,382
|
|
|
4,424
|
|
|
|
9,775
|
|
Interest expense, net
|
|
|
5,003
|
|
|
|
2,821
|
|
|
5,794
|
|
|
|
5,578
|
|
Other income, net
|
|
|
—
|
|
|
|
7
|
|
|
—
|
|
|
|
25
|
|
(Loss)/income before income taxes
|
|
|
(5,414
|
)
|
|
|
1,568
|
|
|
(1,370
|
)
|
|
|
4,222
|
|
Income tax (benefit)/expense
|
|
|
(2,071
|
)
|
|
|
624
|
|
|
(298
|
)
|
|
|
1,865
|
|
Net (loss)/income
|
|
|
(3,343
|
)
|
|
|
944
|
|
|
(1,072
|
)
|
|
|
2,357
|
|
Net income attributed to non-controlling interest
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
|
4
|
|
Net (loss)/income attributed to Boot Barn
Holdings, Inc.
|
|
$
|
(3,343
|
)
|
|
$
|
944
|
|
$
|
(1,072
|
)
|
|
$
|
2,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares
|
|
$
|
(0.13
|
)
|
|
$
|
0.05
|
|
$
|
(0.04
|
)
|
|
$
|
0.05
|
|
Diluted shares
|
|
$
|
(0.13
|
)
|
|
$
|
0.05
|
|
$
|
(0.04
|
)
|
|
$
|
0.05
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares
|
|
|
26,159
|
|
|
|
19,929
|
|
|
26,012
|
|
|
|
19,539
|
|
Diluted shares
|
|
|
26,159
|
|
|
|
20,552
|
|
|
26,012
|
|
|
|
20,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boot Barn Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
|
|
|
|
|
|
Twenty-Six Weeks Ended
|
|
|
|
September 26,
|
|
September 27,
|
|
|
|
2015
|
|
2014
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net (loss)/income
|
|
$
|
(1,072
|
)
|
|
$
|
2,357
|
|
|
Adjustments to reconcile net (loss)/income to net cash provided by
operating
activities:
|
|
|
|
Depreciation
|
|
|
4,711
|
|
|
|
2,819
|
|
|
Stock-based compensation
|
|
|
1,382
|
|
|
|
920
|
|
|
Excess tax benefit
|
|
|
(3,574
|
)
|
|
|
—
|
|
|
Amortization of intangible assets
|
|
|
1,218
|
|
|
|
1,313
|
|
|
Amortization and write-off of debt issuance fees and debt discount
|
|
|
1,709
|
|
|
|
371
|
|
|
Loss on disposal of property and equipment
|
|
|
234
|
|
|
|
86
|
|
|
Accretion of above market leases
|
|
|
37
|
|
|
|
(90
|
)
|
|
Deferred taxes
|
|
|
(1,601
|
)
|
|
|
381
|
|
|
Amortization of inventory fair value adjustment
|
|
|
(225
|
)
|
|
|
—
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
1,165
|
|
|
|
352
|
|
|
Inventories
|
|
|
(18,004
|
)
|
|
|
(16,745
|
)
|
|
Prepaid expenses and other current assets
|
|
|
1,599
|
|
|
|
(4,969
|
)
|
|
Other assets
|
|
|
(1,610
|
)
|
|
|
168
|
|
|
Accounts payable
|
|
|
2,811
|
|
|
|
5,992
|
|
|
Accrued expenses and other current liabilities
|
|
|
4,450
|
|
|
|
471
|
|
|
Other liabilities
|
|
|
2,388
|
|
|
|
49
|
|
|
Net cash used in operating activities
|
|
$
|
(4,382
|
)
|
|
$
|
(6,525
|
)
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
$
|
(19,695
|
)
|
|
$
|
(4,597
|
)
|
|
Acquisition of business, net of cash acquired
|
|
|
(146,541
|
)
|
|
|
—
|
|
|
Net cash used in investing activities
|
|
$
|
(166,236
|
)
|
|
$
|
(4,597
|
)
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Line of credit - net
|
|
$
|
52,818
|
|
|
|
23,232
|
|
|
Proceeds from loan borrowings
|
|
|
200,938
|
|
|
|
30,750
|
|
|
Repayments on debt and capital lease obligations
|
|
|
(76,639
|
)
|
|
|
(615
|
)
|
|
Debt issuance fees
|
|
|
(6,487
|
)
|
|
|
(682
|
)
|
|
Excess tax benefits from stock options
|
|
|
3,574
|
|
|
|
—
|
|
|
Proceeds from exercise of stock options
|
|
|
2,424
|
|
|
|
—
|
|
|
Dividends paid
|
|
|
—
|
|
|
|
(41,300
|
)
|
|
Net cash provided by financing activities
|
|
$
|
176,628
|
|
|
$
|
11,385
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
6,010
|
|
|
|
263
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
1,448
|
|
|
|
1,118
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
7,458
|
|
|
$
|
1,381
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
Cash paid for income taxes
|
|
$
|
2,827
|
|
|
$
|
2,152
|
|
|
Cash paid for interest
|
|
$
|
3,957
|
|
|
$
|
4,599
|
|
|
Supplemental disclosure of non-cash activities:
|
|
|
|
|
|
|
|
Unpaid purchases of property and equipment
|
|
$
|
51
|
|
|
$
|
439
|
|
|
Equipment acquired through capital lease
|
|
$
|
—
|
|
|
$
|
36
|
|
|
|
|
|
|
|
|
|
|
|
Boot Barn Holdings, Inc.
Supplemental Information -
Consolidated Statements of Operations
Reconciliation of GAAP
to Non-GAAP Financial Measures
(In thousands, except per share
amounts)
(Unaudited)
The tables below reconcile the non-GAAP financial measures of adjusted
gross profit, adjusted income from operations, pro forma adjusted net
income, and pro forma adjusted diluted earnings per share, to the most
directly comparable GAAP financial measures of gross profit, income from
operations, net income, and diluted income per share. Pro forma adjusted
net income and pro forma adjusted diluted income per share give effect
to the reduction in our interest rate under our credit facility as a
result of, and the repayment of a portion of our term loan with the
proceeds of, our November 2014 initial public offering, as if it had
occurred on March 31, 2014, the first day of our fiscal year 2014.
|
|
|
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
|
|
|
September 26,
2015
|
|
September 27,
2014
|
|
September 26,
2015
|
|
September 27,
2014
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP gross profit to adjusted gross profit
|
|
|
|
|
|
|
|
|
|
Gross profit, as reported
|
|
$
|
35,873
|
|
|
$
|
27,753
|
|
|
$
|
66,652
|
|
|
$
|
54,643
|
|
|
Amortization of inventory fair value adjustment (a)
|
|
|
(225
|
)
|
|
|
—
|
|
|
|
(225
|
)
|
|
|
—
|
|
|
Acquisition-related integration costs (b)
|
|
|
2,331
|
|
|
|
—
|
|
|
|
2,331
|
|
|
|
—
|
|
|
Contract termination costs (c)
|
|
|
403
|
|
|
|
—
|
|
|
|
403
|
|
|
|
—
|
|
|
Adjusted gross profit
|
|
$
|
38,382
|
|
|
$
|
27,753
|
|
|
$
|
69,161
|
|
|
$
|
54,643
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP (loss)/income from operations to adjusted
income
from operations
|
|
|
|
|
|
|
|
|
(Loss)/income from operations, as reported
|
|
$
|
(411
|
)
|
|
$
|
4,382
|
|
|
$
|
4,424
|
|
|
$
|
9,775
|
|
|
Amortization of inventory fair value adjustment (a)
|
|
|
(225
|
)
|
|
|
—
|
|
|
|
(225
|
)
|
|
|
—
|
|
|
Acquisition-related expenses (d)
|
|
|
—
|
|
|
|
—
|
|
|
|
891
|
|
|
|
—
|
|
|
Acquisition-related integration costs (b)
|
|
|
5,368
|
|
|
|
—
|
|
|
|
5,368
|
|
|
|
—
|
|
|
Loss on disposal of assets and contract termination costs (c)
|
|
|
1,053
|
|
|
|
24
|
|
|
|
1,053
|
|
|
|
86
|
|
|
Secondary offering costs (e)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Estimated Public company costs (e)
|
|
|
—
|
|
|
|
(626
|
)
|
|
|
—
|
|
|
|
(1,387
|
)
|
|
Other due diligence expenses (f)
|
|
|
—
|
|
|
|
864
|
|
|
|
—
|
|
|
|
864
|
|
|
Adjusted income from operations
|
|
$
|
5,785
|
|
|
$
|
4,644
|
|
|
$
|
11,511
|
|
|
$
|
9,338
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income attributed to Boot Barn
Holdings,
Inc. to pro forma adjusted net income
attributed to Boot Barn Holdings,
Inc.
|
|
|
|
|
|
|
Net (loss)/income attributed to Boot Barn Holdings, Inc., as reported
|
|
$
|
(3,343
|
)
|
|
$
|
944
|
|
|
$
|
(1,072
|
)
|
|
$
|
2,353
|
|
|
Amortization of inventory fair value adjustment (a)
|
|
|
(225
|
)
|
|
|
—
|
|
|
|
(225
|
)
|
|
|
—
|
|
|
Acquisition-related expenses (d)
|
|
|
—
|
|
|
|
—
|
|
|
|
891
|
|
|
|
—
|
|
|
Acquisition-related integration costs (b)
|
|
|
5,368
|
|
|
|
—
|
|
|
|
5,368
|
|
|
|
—
|
|
|
Loss on disposal of assets and contract termination costs (c)
|
|
|
1,053
|
|
|
|
24
|
|
|
|
1,053
|
|
|
|
86
|
|
|
Estimated Public company costs (e)
|
|
|
—
|
|
|
|
(626
|
)
|
|
|
—
|
|
|
|
(1,387
|
)
|
|
Other due diligence expenses (f)
|
|
|
—
|
|
|
|
864
|
|
|
|
—
|
|
|
|
864
|
|
|
Write-off of debt discount (g)
|
|
|
1,355
|
|
|
|
—
|
|
|
|
1,355
|
|
|
|
—
|
|
|
Interest expense, as reported
|
|
|
—
|
|
|
|
2,821
|
|
|
|
—
|
|
|
|
5,578
|
|
|
Pro forma interest expense (h)
|
|
|
—
|
|
|
|
(1,210
|
)
|
|
|
—
|
|
|
|
(2,420
|
)
|
|
(Benefit)/provision for income taxes, as reported
|
|
|
(2,071
|
)
|
|
|
624
|
|
|
|
(298
|
)
|
|
|
1,865
|
|
|
Pro forma adjusted provision for income taxes (i)
|
|
|
(930
|
)
|
|
|
(1,429
|
)
|
|
|
(2,871
|
)
|
|
|
(3,065
|
)
|
|
Pro forma adjusted net income attributed to Boot Barn Holdings, Inc.
|
|
$
|
1,208
|
|
|
$
|
2,012
|
|
|
$
|
4,201
|
|
|
$
|
3,874
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of proforma adjusted net (loss)/income per
diluted share
to net income per diluted share
|
|
|
|
|
|
|
|
Net (loss)/income per share, diluted:
|
|
|
|
|
|
|
|
|
|
Net loss(income) per share, as reported
|
|
$
|
(0.13
|
)
|
|
$
|
0.05
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.05
|
|
|
Adjustments
|
|
|
0.17
|
|
|
|
0.03
|
|
|
|
0.20
|
|
|
|
0.04
|
|
|
Net income per share paid to vested option holders (j)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.06
|
|
|
Pro forma adjusted net income per share, diluted
|
|
$
|
0.04
|
|
|
$
|
0.08
|
|
|
$
|
0.16
|
|
|
$
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding, as reported
|
|
|
26,159
|
|
|
|
20,552
|
|
|
|
26,012
|
|
|
|
20,121
|
|
|
The effect of dilutive potential common shares due to reporting
adjusted net
income
|
|
|
951
|
|
|
|
—
|
|
|
|
1,030
|
|
|
|
—
|
|
|
Pro forma effect of shares issuances in IPO (k)
|
|
|
—
|
|
|
|
5,750
|
|
|
|
—
|
|
|
|
5,750
|
|
|
Pro forma adjusted diluted weighted average shares
|
|
|
27,110
|
|
|
|
26,302
|
|
|
|
27,042
|
|
|
|
25,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Represents the amortization of purchase-accounting adjustments that
decreased the value of inventory acquired to its fair value.
|
|
(b)
|
|
Represents certain store integration, remerchandising, inventory
obsolescence and corporate consolidation costs incurred in
connection with the integration of Sheplers, which we acquired in
June 2015. Includes an adjustment to normalize the gross margin
impact of sales of discontinued inventory from Sheplers, which was
sold at a discount. The adjustment assumes such inventory was sold
at Sheplers' normalized margin rate.
|
|
(c)
|
|
Represents loss on disposal of assets and contract termination costs
from store closures and unused office and warehouse space.
|
|
(d)
|
|
Includes direct costs and fees related to the acquisition of
Sheplers that was completed on June 29, 2015.
|
|
(e)
|
|
Reflects estimated incremental legal, accounting, insurance and
other compliance costs in the first two quarters of fiscal year 2015
as if the Company had been a public company during such quarter.
Actual public company costs incurred in fiscal 2016 are reflected in
GAAP income.
|
|
(f)
|
|
Represents professional fees and expenses incurred in connection
with a prior due diligence process of Sheplers.
|
|
(g)
|
|
Represents the write off of debt discounts and debt issuance costs
associated with the previously extinguished Wells Fargo Credit
Facility.
|
|
(h)
|
|
The net decrease in interest expense resulting from a reduction in
our LIBOR floor and our pay down of principal balance on our term
loan agreement with Golub Capital from the IPO proceeds, as if it
had occurred on March 31, 2013.
|
|
(i)
|
|
The provision for income taxes uses an effective tax rate of 40.6%
for the twenty-six week period ended September 26, 2015, compared to
the Company's tax rate of 21.8% and applies it to the non-GAAP
income before taxes. The Company's tax rate was impacted by expenses
associated with the acquisition. Excluding these one-time events,
the tax rate would have been 40.6%.
|
|
(j)
|
|
In April 2014, holders of vested stock options received a cash
payment of $1.4 million, which the Company deducted from net income
for purposes of the earnings per share calculation to determine the
net income available to common shareholders. The Company has added
this payment to the net income in order to calculate diluted
earnings per share.
|
|
(k)
|
|
These shares represent shares issued at the time of the IPO and are
shown as if they had been issued on March 31, 2013.
|
|
|
|
|
|
|
|
|
|
FY 2016 Outlook
|
|
(in millions)
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
Reconciliation of forecasted GAAP net income to forecasted pro
forma adjusted net income
|
|
|
|
Net income guidance
|
|
$
|
12.3
|
|
|
$
|
13.5
|
|
|
Loss on disposal of assets and contract termination costs
|
|
|
1.8
|
|
|
|
1.8
|
|
|
Acquisition-related expenses
|
|
|
0.9
|
|
|
|
0.9
|
|
|
Acquisition-related integration and reorganization costs
|
|
|
6.0
|
|
|
|
6.0
|
|
|
Amortization of inventory fair value adjustment
|
|
|
(0.5
|
)
|
|
|
(0.5
|
)
|
|
Markdown of discontinued Sheplers' inventory
|
|
|
4.1
|
|
|
|
4.1
|
|
|
Write off of debt issuance costs
|
|
|
1.4
|
|
|
|
1.4
|
|
|
Provision for income taxes
|
|
|
8.4
|
|
|
|
9.3
|
|
|
Pro forma adjusted provision for income taxes
|
|
|
(13.9
|
)
|
|
|
(14.8
|
)
|
|
Forecasted pro forma adjusted net income attributed to Boot Barn
Holdings, Inc.
|
|
$
|
20.5
|
|
|
$
|
21.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Boot Barn Holdings, Inc.
|
|
|
|
Store Count
|
|
|
|
|
|
Fiscal Year
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
|
March 29
|
|
June 28
|
|
September 27
|
|
December 27
|
|
March 28
|
|
June 27
|
|
September 26
|
|
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2015
|
|
2015
|
|
2015
|
|
Store Count (BOP)
|
|
117
|
|
|
152
|
|
155
|
|
158
|
|
166
|
|
|
169
|
|
176
|
|
|
Opened/Acquired
|
|
39
|
|
|
3
|
|
3
|
|
8
|
|
4
|
|
|
7
|
|
31
|
|
|
Closed Boot Barn Stores
|
|
(4
|
)
|
|
-
|
|
-
|
|
-
|
|
(1
|
)
|
|
-
|
|
(1
|
)
|
|
Closed Sheplers Stores
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
(5
|
)
|
|
Store Count (EOP)
|
|
152
|
|
|
155
|
|
158
|
|
166
|
|
169
|
|
|
176
|
|
201
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151110006866/en/
Source: Boot Barn Holdings, Inc.