IRVINE, Calif.--(BUSINESS WIRE)--
Highlights for the quarter ended September 24, 2016, were as follows:
-
Net sales increased 3.3% to $134.0 million.
-
Consolidated same store sales increased 1.8%.
-
Net income was $0.5 million, or $0.02 per diluted share, compared to a
net loss of $3.3 million, or $0.13 per diluted share (and compared to
adjusted net income of $1.2 million, or $0.04 per diluted share) in
the prior-year period.
-
The Company opened two new stores.
Jim Conroy, Chief Executive Officer, commented, “I am pleased with our
financial performance during the second quarter, in which we grew net
sales, achieved positive same store sales and reported diluted earnings
per share of $0.02, which met our expectations for the quarter. We
believe our positive same store sales reflect the strength of the Boot
Barn brand as well as the strategies we put in place to mitigate
external pressures in oil and commodity driven markets. While this
pressure has not abated, and consumer retail trends remain variable, we
are optimistic about the second half of the year. Our new merchandise
categories and product offerings are resonating well with our customers
and we believe we have appropriately invested in the right level and
composition of inventory. We remain committed to prudently investing in
our business as we continue to grow our leading market share of the
western and work wear markets across our channels.”
Operating Results for the Second Quarter Ended September 24, 2016
-
Net sales increased 3.3% to $134.0 million from $129.7 million in the
prior-year period. Net sales increased due to 13 new stores opened
over the past twelve months and a 1.8% increase in same store sales.
Sales growth was partially offset by the planned closure of eight
stores over the last 15 months, including six low-volume Sheplers
stores that were closed consistent with original expectations.
-
Gross profit increased 1.6% to $36.4 million, or 27.2% of net sales,
compared to gross profit of $35.9 million, or 27.7% of net sales, in
the prior-year period. Excluding the amortization of inventory fair
value adjustment, acquisition-related integration costs, and contract
termination costs, adjusted gross profit in the prior-year period was
$38.4 million or 29.6% of net sales. The decline in gross profit rate
compared to the prior year’s adjusted gross profit rate resulted
primarily from increases in store occupancy costs associated with the
13 new stores opened during the last 12 months and additional
depreciation expense from the rebranded Sheplers stores that was not
included in the prior-year period. Also contributing to the decline in
gross profit rate was an 80 basis point decline in the merchandise
margin rate, resulting from higher loyalty rewards redemption, shrink
and aged inventory provision.
-
Income from operations increased $4.8 million to $4.4 million,
compared to a loss from operations of $0.4 million in the prior-year
period. Excluding the amortization of inventory fair value adjustment,
acquisition-related integration costs, and loss on disposal of assets
and contract termination costs, adjusted income from operations in the
prior-year period was $5.8 million.
-
The Company opened two new stores and ended the quarter with 212
stores in 29 states.
-
Interest expense decreased $1.3 million to $3.7 million from $5.0
million in the prior-year period. Excluding a $1.4 million write-off
of debt issuance costs associated with the refinancing of debt,
adjusted interest expense was $3.6 million in the prior-year period.
-
Net income was $0.5 million, or $0.02 per diluted share, compared to a
net loss of $3.3 million or $0.13 per diluted share in the prior-year
period. Excluding the amortization of inventory fair value adjustment,
acquisition-related integration costs, loss on disposal of assets and
contract termination costs, and write-off of debt issuance costs
associated with the refinancing of debt, adjusted net income in the
second quarter of the prior year was $1.2 million, or $0.04 per
diluted share.
Operating Results for the Six Months Ended September 24, 2016
-
Net sales increased 18.5% to $267.4 million from $225.7 million in the
prior-year period. Net sales increased due to six months of sales
contributions from Sheplers (compared to three months in the
prior-year period), the opening of 13 new stores between the beginning
of the third quarter of fiscal 2016 and the end of the second quarter
of fiscal 2017 and a 1.1% increase in consolidated same store sales.
Sales growth was partially offset by the planned closure of eight
stores over the last 15 months, including six low-volume Sheplers
stores that were closed consistent with original expectations.
-
Gross profit increased 15.8% to $77.2 million, or 28.9% of net sales,
compared to gross profit of $66.7 million, or 29.5% of net sales, in
the prior-year period. Excluding the amortization of inventory fair
value adjustment, acquisition-related integration costs, and contract
termination costs, adjusted gross profit in the prior-year period was
$69.2 million or 30.6% of net sales. The decline in gross profit rate
compared to the prior year’s adjusted gross profit rate was primarily
driven by the addition of six months of historically lower-margin
Sheplers sales (compared to three months in the prior-year period).
-
Income from operations increased $4.5 million to $8.9 million,
compared to $4.4 million in the prior-year period. Excluding the
amortization of inventory fair value adjustment, acquisition-related
expenses and integration costs, and loss on disposal of assets and
contract termination costs, adjusted income from operations in the
prior-year period was $11.5 million. The decrease in income from
operations compared to the prior year’s adjusted income from
operations was driven primarily by additional expenses associated with
Sheplers and higher expenses associated with new stores opened.
-
The Company opened four new stores and ended the period with 212
stores in 29 states.
-
Net income was $1.1 million, or $0.04 per diluted share, compared to a
net loss of $1.1 million or $0.04 per diluted share in the prior-year
period. Excluding the amortization of inventory fair value adjustment,
acquisition-related expenses and integration costs, loss on disposal
of assets and contract termination costs, and write-off of debt
issuance costs associated with the refinancing of debt, adjusted net
income in the prior-year period was $4.2 million or $0.16 per diluted
share.
A reconciliation of adjusted gross profit, adjusted income from
operations, adjusted net income and 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. Adjusted measures are not presented for the quarter and
six months ended September 24, 2016 as there were no adjustments. See
also "Non-GAAP Financial Measures."
Balance Sheet Highlights as of September 24, 2016
-
Cash: $11.1 million
-
Inventories: Average inventory per store was flat compared to
September 26, 2015
-
Total debt: $250.1 million
-
Line of credit: $57.0 million outstanding on revolving credit facility
Fiscal Year 2017 Outlook
The Company is updating its guidance for the fiscal year ending April 1,
2017 and now expects:
-
To open 15 new stores, including four opened in the first two quarters.
-
Slightly positive consolidated same store sales.
-
Income from operations between $43.7 million and $46.8 million.
-
Net income of $17.7 million to $19.6 million.
-
Net income per diluted share of $0.66 to $0.73 based on 26.9 million
weighted average diluted shares outstanding, which includes $0.03 per
diluted share attributed to the 53rd week.
For the fiscal third quarter ending December 24, 2016 the Company
expects:
-
Slightly positive consolidated same store sales.
-
Net income per diluted share of $0.38 to $0.43 based on 27.0 million
weighted average diluted shares outstanding.
Conference Call Information
A conference call to discuss the financial results for the second
quarter of fiscal year 2017 is scheduled for today, October 26, 2016, at
4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in
participating in the call are invited to dial (866) 393-4306. 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 until November 28, 2016, by dialing (855) 859-2056 (domestic)
or (404) 537-3406 (international) and entering the conference
identification number: 98295878. 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
work and lifestyle brands. Boot Barn now operates 214 stores in 29
states, in addition to an e-commerce channel www.bootbarn.com.
The Company also operates www.sheplers.com,
the nation’s leading pure play online western and work retailer.
Sheplers has been part of the western, outdoor, and work lifestyle for
over 100 years. 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, adjusted net income and adjusted net income per diluted
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 from operations, actual net income and
actual earnings per diluted 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 from
operations, adjusted net income to net income, and adjusted net income
per diluted share to net income per diluted share. In addition, see the
table at the end of this press release for a presentation of EBITDA, as
defined in our debt agreements, and a reconciliation of such Debt
Covenant EBITDA to net income (loss).
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. Forward-looking statements refer to our current expectations
and projections relating to, by way of example and without limitation,
our financial condition, liquidity, profitability, results of
operations, margins, plans, objectives, strategies, future performance,
business and industry. You can identify forward-looking statements by
the fact that they do not relate strictly to historical or current
facts. These statements may include words such as "anticipate",
"estimate", "expect", "project", "plan“, "intend", "believe", “may”,
“might”, “will”, “could”, “should”, “can have”, “likely”, “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: decreases in consumer spending due to declines in
consumer confidence, local economic conditions or changes in consumer
preferences and the Company’s ability to effectively execute on its
growth strategy; the failure to realize the anticipated synergies from
the Sheplers acquisition and other risks of integration, 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 24,
|
|
March 26,
|
|
|
|
|
|
2016
|
|
2016
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
11,063
|
|
$
|
|
|
|
|
|
7,195
|
|
|
Accounts receivable, net
|
|
|
|
4,570
|
|
|
|
|
|
|
|
|
4,131
|
|
|
Inventories
|
|
|
|
190,760
|
|
|
|
|
|
|
|
|
176,335
|
|
|
Prepaid expenses and other current assets
|
|
|
|
16,589
|
|
|
|
|
|
|
|
|
15,558
|
|
|
Total current assets
|
|
|
|
222,982
|
|
|
|
|
|
|
|
|
203,219
|
|
|
Property and equipment, net
|
|
|
|
81,116
|
|
|
|
|
|
|
|
|
76,076
|
|
|
Goodwill
|
|
|
|
193,095
|
|
|
|
|
|
|
|
|
193,095
|
|
|
Intangible assets, net
|
|
|
|
63,761
|
|
|
|
|
|
|
|
|
64,861
|
|
|
Other assets
|
|
|
|
947
|
|
|
|
|
|
|
|
|
2,075
|
|
|
Total assets
|
|
|
$
|
561,901
|
|
$
|
|
|
|
|
|
539,326
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Line of credit
|
|
|
$
|
56,983
|
|
$
|
|
|
|
|
|
48,815
|
|
|
Accounts payable
|
|
|
|
76,109
|
|
|
|
|
|
|
|
|
66,553
|
|
|
Accrued expenses and other current liabilities
|
|
|
|
34,933
|
|
|
|
|
|
|
|
|
35,896
|
|
|
Current portion of notes payable, net of unamortized debt issuance
costs
|
|
|
|
1,040
|
|
|
|
|
|
|
|
|
1,035
|
|
|
Total current liabilities
|
|
|
|
169,065
|
|
|
|
|
|
|
|
|
152,299
|
|
|
Deferred taxes
|
|
|
|
11,803
|
|
|
|
|
|
|
|
|
12,255
|
|
|
Long-term portion of notes payable, net of unamortized debt issuance
costs
|
|
|
|
192,049
|
|
|
|
|
|
|
|
|
192,579
|
|
|
Capital lease obligation
|
|
|
|
8,064
|
|
|
|
|
|
|
|
|
8,272
|
|
|
Other liabilities
|
|
|
|
16,125
|
|
|
|
|
|
|
|
|
12,431
|
|
|
Total liabilities
|
|
|
|
397,106
|
|
|
|
|
|
|
|
|
377,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $0.0001 par value; September 24, 2016 - 100,000
shares
authorized, 26,497 shares issued; March 26, 2016 -
100,000 shares authorized,
26,354 shares issued
|
|
|
|
3
|
|
|
|
|
|
|
|
|
3
|
|
|
Preferred stock, $0.0001 par value; 10,000 shares authorized, no
shares issued or outstanding
|
|
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
|
Additional paid-in capital
|
|
|
|
140,121
|
|
|
|
|
|
|
|
|
137,893
|
|
|
Retained earnings
|
|
|
|
24,697
|
|
|
|
|
|
|
|
|
23,594
|
|
|
Less: Common stock held in treasury, at cost, 10 and 4 shares at
September 24,
2016 and March 26, 2016, respectively
|
|
|
|
(26)
|
|
|
|
|
|
|
|
|
—
|
|
|
Total stockholders’ equity
|
|
|
|
164,795
|
|
|
|
|
|
|
|
|
161,490
|
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
561,901
|
|
$
|
|
|
|
|
|
539,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boot Barn Holdings, Inc.
Consolidated Statements of
Operations
(In thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
|
|
|
|
September 24,
|
|
September 26,
|
|
September 24,
|
|
September 26,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net sales
|
|
|
$
|
133,969
|
|
$
|
129,712
|
|
$
|
267,382
|
|
$
|
225,712
|
|
Cost of goods sold
|
|
|
|
97,523
|
|
|
94,064
|
|
|
190,187
|
|
|
159,285
|
|
Amortization of inventory fair value adjustment
|
|
|
|
—
|
|
|
(225)
|
|
|
—
|
|
|
(225)
|
|
Total cost of goods sold
|
|
|
|
97,523
|
|
|
93,839
|
|
|
190,187
|
|
|
159,060
|
|
Gross profit
|
|
|
|
36,446
|
|
|
35,873
|
|
|
77,195
|
|
|
66,652
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
32,003
|
|
|
36,284
|
|
|
68,302
|
|
|
61,337
|
|
Acquisition-related expenses
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
891
|
|
Total operating expenses
|
|
|
|
32,003
|
|
|
36,284
|
|
|
68,302
|
|
|
62,228
|
|
Income/(loss) from operations
|
|
|
|
4,443
|
|
|
(411)
|
|
|
8,893
|
|
|
4,424
|
|
Interest expense, net
|
|
|
|
3,651
|
|
|
5,003
|
|
|
7,211
|
|
|
5,794
|
|
Income/(loss) before income taxes
|
|
|
|
792
|
|
|
(5,414)
|
|
|
1,682
|
|
|
(1,370)
|
|
Income tax expense/(benefit)
|
|
|
|
313
|
|
|
(2,071)
|
|
|
579
|
|
|
(298)
|
|
Net income/(loss)
|
|
|
$
|
479
|
|
$
|
(3,343)
|
|
$
|
1,103
|
|
$
|
(1,072)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares
|
|
|
$
|
0.02
|
|
$
|
(0.13)
|
|
$
|
0.04
|
|
$
|
(0.04)
|
|
Diluted shares
|
|
|
$
|
0.02
|
|
$
|
(0.13)
|
|
$
|
0.04
|
|
$
|
(0.04)
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares
|
|
|
|
26,427
|
|
|
26,159
|
|
|
26,400
|
|
|
26,012
|
|
Diluted shares
|
|
|
|
26,897
|
|
|
26,159
|
|
|
26,736
|
|
|
26,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boot Barn Holdings, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
Twenty-Six Weeks Ended
|
|
|
|
|
September 24,
|
|
September 26,
|
|
|
|
|
2016
|
|
2015
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
Net income /(loss)
|
|
|
$
|
1,103
|
|
$
|
(1,072)
|
|
Adjustments to reconcile net income/(loss) to net cash provided
by/(used in) operating activities:
|
|
|
|
|
Depreciation
|
|
|
|
6,996
|
|
|
4,711
|
|
Stock-based compensation
|
|
|
|
1,506
|
|
|
1,382
|
|
Excess tax benefit
|
|
|
|
—
|
|
|
(3,574)
|
|
Amortization of intangible assets
|
|
|
|
1,100
|
|
|
1,218
|
|
Amortization and write-off of debt issuance fees and debt discount
|
|
|
|
563
|
|
|
1,709
|
|
Loss on disposal of property and equipment
|
|
|
|
126
|
|
|
234
|
|
Accretion of above market leases
|
|
|
|
(24)
|
|
|
37
|
|
Deferred taxes
|
|
|
|
140
|
|
|
(1,601)
|
|
Amortization of inventory fair value adjustment
|
|
|
|
—
|
|
|
(225)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
(439)
|
|
|
1,165
|
|
Inventories
|
|
|
|
(14,425)
|
|
|
(18,004)
|
|
Prepaid expenses and other current assets
|
|
|
|
(1,728)
|
|
|
1,599
|
|
Other assets
|
|
|
|
1,128
|
|
|
(1,610)
|
|
Accounts payable
|
|
|
|
7,875
|
|
|
2,811
|
|
Accrued expenses and other current liabilities
|
|
|
|
(963)
|
|
|
4,450
|
|
Other liabilities
|
|
|
|
3,718
|
|
|
2,388
|
|
Net cash provided by/(used in) operating activities
|
|
|
$
|
6,676
|
|
$
|
(4,382)
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
$
|
(10,481)
|
|
$
|
(19,695)
|
|
Acquisition of business, net of cash acquired
|
|
|
|
—
|
|
|
(146,541)
|
|
Net cash used in investing activities
|
|
|
$
|
(10,481)
|
|
$
|
(166,236)
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
Line of credit - net
|
|
|
$
|
8,168
|
|
$
|
52,818
|
|
Proceeds from loan borrowings
|
|
|
|
—
|
|
|
200,938
|
|
Repayments on debt and capital lease obligations
|
|
|
|
(1,208)
|
|
|
(76,639)
|
|
Debt issuance fees
|
|
|
|
—
|
|
|
(6,487)
|
|
Tax withholding for net share settlement
|
|
|
|
(26)
|
|
|
—
|
|
Excess tax benefit from stock options
|
|
|
|
—
|
|
|
3,574
|
|
Proceeds from the exercise of stock options
|
|
|
|
739
|
|
|
2,424
|
|
Net cash provided by financing activities
|
|
|
$
|
7,673
|
|
$
|
176,628
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
3,868
|
|
|
6,010
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
7,195
|
|
|
1,448
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
11,063
|
|
$
|
7,458
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid for income taxes
|
|
|
$
|
1,182
|
|
$
|
2,827
|
|
Cash paid for interest
|
|
|
$
|
6,697
|
|
$
|
3,957
|
|
Supplemental disclosure of non-cash activities:
|
|
|
|
|
|
|
|
|
Unpaid purchases of property and equipment
|
|
|
$
|
3,712
|
|
$
|
51
|
|
|
|
|
|
|
|
|
|
|
|
|
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, adjusted net income, and
adjusted diluted earnings per share, with the most directly comparable
GAAP financial measures of gross profit, income from operations, net
income, and diluted earnings per share.
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
Twenty-Six Weeks Ended
|
|
|
|
|
September 24,
|
|
September 26,
|
|
September 24,
|
|
September 26,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Reconciliation of GAAP gross profit to adjusted gross profit
|
|
|
|
|
Gross profit, as reported
|
|
|
$
|
36,446
|
|
$
|
35,873
|
|
|
$
|
77,195
|
|
$
|
66,652
|
|
|
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
|
|
|
$
|
36,446
|
|
$
|
38,382
|
|
|
$
|
77,195
|
|
$
|
69,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP income/(loss) from operations to adjusted
income from operations
|
|
|
|
|
Income/(loss) from operations, as reported
|
|
|
$
|
4,443
|
|
$
|
(411
|
)
|
|
$
|
8,893
|
|
$
|
4,424
|
|
|
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
|
|
|
|
—
|
|
|
1,053
|
|
|
Adjusted income from operations
|
|
|
$
|
4,443
|
|
$
|
5,785
|
|
|
$
|
8,893
|
|
$
|
11,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income/(loss) to adjusted net income
|
|
|
|
|
Net income/(loss), as reported
|
|
|
$
|
479
|
|
$
|
(3,343
|
)
|
|
$
|
1,103
|
|
$
|
(1,072
|
)
|
|
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
|
|
|
|
—
|
|
|
1,053
|
|
|
Write-off of debt discount (e)
|
|
|
|
—
|
|
|
1,355
|
|
|
|
—
|
|
|
1,355
|
|
|
Benefit for income taxes, as reported
|
|
|
|
—
|
|
|
(2,071
|
)
|
|
|
—
|
|
|
(298
|
)
|
|
Adjusted benefit for income taxes
|
|
|
|
—
|
|
|
(930
|
)
|
|
|
—
|
|
|
(2,871
|
)
|
|
Adjusted net income
|
|
|
$
|
479
|
|
$
|
1,207
|
|
|
$
|
1,103
|
|
$
|
4,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of adjusted net income per diluted share to net
income/(loss) per diluted share
|
|
|
|
|
Net income per share, diluted:
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) per share, as reported
|
|
|
$
|
0.02
|
|
$
|
(0.13
|
)
|
|
$
|
0.04
|
|
$
|
(0.04
|
)
|
|
Adjustments
|
|
|
|
—
|
|
|
0.17
|
|
|
|
—
|
|
|
0.20
|
|
|
Adjusted net income per share, diluted
|
|
|
$
|
0.02
|
|
$
|
0.04
|
|
|
$
|
0.04
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
|
|
26,897
|
|
|
27,110
|
|
|
|
26,736
|
|
|
27,042
|
|
|
(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)
|
|
Represents the write off of debt discounts and debt issuance costs
associated with the previously extinguished Wells Fargo Credit
Facility.
|
|
|
|
|
|
|
|
Boot Barn Holdings, Inc.
Store Count
|
|
|
|
|
|
|
Fiscal Year Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
|
|
|
March 28,
|
|
June 27,
|
|
September 26,
|
|
December 26,
|
|
March 26,
|
|
June 25,
|
|
September 24,
|
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
Store Count (BOP)
|
|
|
152
|
|
169
|
|
176
|
|
201
|
|
206
|
|
208
|
|
210
|
|
Opened/Acquired
|
|
|
18
|
|
7
|
|
31
|
|
5
|
|
4
|
|
2
|
|
2
|
|
Closed Boot Barn Stores
|
|
|
(1)
|
|
—
|
|
(1)
|
|
—
|
|
(1)
|
|
—
|
|
—
|
|
Closed Sheplers Stores
|
|
|
—
|
|
—
|
|
(5)
|
|
—
|
|
(1)
|
|
—
|
|
—
|
|
Store Count (EOP)
|
|
|
169
|
|
176
|
|
201
|
|
206
|
|
208
|
|
210
|
|
212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt Covenant EBITDA Reconciliation
(Unaudited)
|
|
|
|
|
|
|
(Thirteen Weeks Ended)
|
|
|
|
|
September 24,
2016
|
|
June 25,
2016
|
|
March 26,
2016
|
|
December 26,
2015
|
|
September 26,
2015
|
|
Boot Barn's Net income/(loss)
|
|
|
$
|
479
|
|
$
|
624
|
|
$
|
1,012
|
|
|
$
|
9,928
|
|
|
$
|
(3,343
|
)
|
|
Income tax expense/(benefit)
|
|
|
|
313
|
|
|
266
|
|
|
1,029
|
|
|
|
6,712
|
|
|
|
(2,071
|
)
|
|
Interest expense, net
|
|
|
|
3,651
|
|
|
3,560
|
|
|
3,576
|
|
|
|
3,553
|
|
|
|
5,003
|
|
|
Depreciation and intangible asset amortization
|
|
|
|
4,017
|
|
|
4,079
|
|
|
4,494
|
|
|
|
3,593
|
|
|
|
3,292
|
|
|
Boot Barn's EBITDA
|
|
|
$
|
8,460
|
|
$
|
8,529
|
|
$
|
10,111
|
|
|
$
|
23,786
|
|
|
$
|
2,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based compensation (a)
|
|
|
$
|
750
|
|
$
|
756
|
|
$
|
737
|
|
|
$
|
761
|
|
|
$
|
730
|
|
|
Non-cash accrual for future award redemptions (b)
|
|
|
|
133
|
|
|
42
|
|
|
(797
|
)
|
|
|
961
|
|
|
|
88
|
|
|
Acquisition-related integration costs (c)
|
|
|
|
-
|
|
|
-
|
|
|
1,817
|
|
|
|
3,153
|
|
|
|
5,368
|
|
|
Amortization of inventory fair value adjustment (d)
|
|
|
|
-
|
|
|
-
|
|
|
(47
|
)
|
|
|
(228
|
)
|
|
|
(225
|
)
|
|
Loss on disposal of assets and contract termination costs (e)
|
|
|
|
126
|
|
|
59
|
|
|
267
|
|
|
|
53
|
|
|
|
1,042
|
|
|
Secondary offering costs (f)
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
317
|
|
|
|
-
|
|
|
Boot Barn's Adjusted EBITDA
|
|
|
$
|
9,469
|
|
$
|
9,386
|
|
$
|
12,088
|
|
|
$
|
28,803
|
|
|
$
|
9,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional adjustments1
|
|
|
|
891
|
|
|
1,345
|
|
|
959
|
|
|
|
655
|
|
|
|
718
|
|
|
Consolidated EBITDA per Loan Agreements
|
|
|
$
|
10,360
|
|
$
|
10,731
|
|
$
|
13,047
|
|
|
$
|
29,458
|
|
|
$
|
10,602
|
|
|
______________
|
|
1
|
|
Adjustments to Boot Barn's Adjusted EBITDA as stipulated in the
2015 Golub Term Loan and June 2015 Wells Fargo Revolver include
pre-opening costs, franchise and state taxes, and other
miscellaneous adjustments.
|
|
|
|
|
|
(a)
|
|
Represents non-cash compensation expenses related to stock options,
restricted stock awards and restricted stock units granted to
certain of our employees and directors.
|
|
(b)
|
|
Represents the non-cash accrual for future award redemptions in
connection with our customer loyalty program.
|
|
(c)
|
|
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.
|
|
(d)
|
|
Represents the amortization of purchase-accounting adjustments
that decreased the value of inventory acquired to its fair value.
|
|
(e)
|
|
Represents loss on disposal of assets and contract termination
costs from store closures and unused office and warehouse space.
|
|
(f)
|
|
Represents professional fees and expenses incurred in connection
with a Form S-1 Registration Statement filing in July 2015 and
withdrawn in November 2015.
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161026006615/en/
Source: Boot Barn Holdings, Inc.