IRVINE, Calif.--(BUSINESS WIRE)--
Boot Barn Holdings, Inc. (NYSE:BOOT):
Highlights for the quarter ended December 24, 2016, were as follows:
-
Net sales increased 2.9% to $199.4 million.
-
Consolidated same store sales increased 0.2%.
-
Net income was $10.5 million, or $0.39 per diluted share, compared to
net income of $9.9 million, or $0.37 per diluted share (and compared
to adjusted net income of $12.0 million, or $0.45 per diluted share)
in the prior-year period.
-
The Company opened six new stores.
Jim Conroy, Chief Executive Officer, commented, “I am pleased that we
were able to generate our third consecutive quarter of positive same
store sales growth and achieve our earnings guidance. This performance
is a testament to our diversified business model as we continue to find
opportunities for sales growth despite the ongoing sales pressure in
markets dependent on oil and other commodities. We also continue to
invest in and improve our omni-channel capabilities. In the third
quarter we posted our fifth consecutive quarter of double-digit growth
in e-commerce and rolled out an in store touch-screen shopping tablet
which enables customers to order merchandise from both our e-commerce
warehouse and directly from most of our branded vendors. I am proud of
the team’s efforts as we continue to build a national lifestyle brand
while navigating a complicated retail environment.”
Operating Results for the Third Quarter Ended December 24, 2016
-
Net sales increased 2.9% to $199.4 million from $193.8 million in the
prior-year period. Net sales increased due to 14 new stores opened
over the past twelve months and a 0.2% increase in consolidated same
store sales. Sales growth was partially offset by the planned closure
of one Sheplers store and the closure of one Boot Barn store over the
last 12 months.
-
Gross profit decreased 1.3% to $63.4 million, or 31.8% of net sales,
compared to gross profit of $64.2 million, or 33.1% of net sales, in
the prior-year period. Excluding the amortization of inventory fair
value adjustment and acquisition-related integration costs, adjusted
gross profit in the prior-year period was $65.0 million or 33.5% of
net sales. The decline in gross profit rate compared to the prior year
was driven by a 100 basis point decline in merchandise margin rate,
resulting from more e-commerce sales as a percentage of total sales,
increased freight costs, higher redemption in our annual holiday
bounce back promotion, and higher shrink. Also contributing to the
decline in gross profit rate was a 70 basis point increase in store
occupancy.
-
Income from operations was $20.9 million, compared to income from
operations of $20.2 million 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 SEC filing costs, adjusted income from operations in the
prior-year period was $23.5 million. The decrease in income from
operations compared to the prior-year period’s adjusted income from
operations was driven primarily by a decrease in adjusted gross profit
and an increase in adjusted operating expenses related to increased
sales.
-
The Company opened six new stores, ending the quarter with 219 stores
in 31 states.
-
Interest expense was flat compared to the prior-year period at $3.6
million.
-
Net income was $10.5 million, or $0.39 per diluted share, compared to
net income of $9.9 million or $0.37 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 SEC filing costs, adjusted
net income in the third quarter of the prior year was $12.0 million,
or $0.45 per diluted share.
Operating Results for the Nine Months Ended December 24, 2016
-
Net sales increased 11.3% to $466.8 million from $419.6 million in the
prior-year period. Net sales increased due to nine months of sales
contributions from Sheplers (compared to six months in the prior-year
period), the opening of 14 new stores over the last twelve months and
a 0.7% increase in consolidated same store sales. Sales growth was
partially offset by the planned closure of one Sheplers store and the
closure of one Boot Barn store over the last 12 months.
-
Gross profit increased 7.4% to $140.6 million, or 30.1% of net sales,
compared to gross profit of $130.8 million, or 31.2% 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
$134.1 million or 32.0% of net sales. The decline in gross profit rate
when compared to the prior year’s adjusted gross profit rate was
driven primarily by a decline in merchandise margin rate, resulting
from nine months of historically lower margin Sheplers sales compared
to six months in the prior-year period and more e-commerce sales as a
percentage of total sales. Also contributing to the decline in gross
profit rate was an increase in store occupancy.
-
Income from operations was $29.8 million, compared to $24.6 million 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 SEC
filing costs, adjusted income from operations in the prior-year period
was $35.0 million. The decrease in income from operations compared to
the prior year’s adjusted income from operations was driven primarily
by an increase in adjusted operating expenses related to nine months
of the Sheplers business compared to six months in the prior-year
period and the increase in adjusted operating expenses related to
increased sales.
-
The Company opened ten new stores, ending the period with 219 stores
in 31 states.
-
Net income was $11.6 million, or $0.43 per diluted share, compared to
net income of $8.9 million or $0.33 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, SEC filing costs
and write-off of debt discount, adjusted net income in the prior-year
period was $16.2 million or $0.60 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
nine months ended December 24, 2016 as there were no adjustments. See
also "Non-GAAP Financial Measures."
Balance Sheet Highlights as of December 24, 2016
-
Cash: $31.2 million
-
Inventories: Average inventory per store decreased 3.4% compared to
December 26, 2015
-
Total net debt: $215.8 million, including $23.0 million outstanding on
revolving credit facility
Fiscal Year 2017 Outlook
For the fiscal fourth quarter ending April 1, 2017, the Company expects:
-
To open two new stores.
-
Consolidated same store sales growth of flat to 2.0%.
-
Income from operations between $11.4 million and $12.7 million.
-
Net income of $4.6 million to $5.4 million.
-
Net income per diluted share of $0.17 to $0.20 based on 27.1 million
weighted average diluted shares outstanding, which includes $0.03 per
diluted share attributed to the additional week of the quarter.
The Company is updating its guidance for the fiscal year ending April 1,
2017 and now expects:
-
To open 12 new stores, including two stores in the fourth quarter.
-
Consolidated same store sales growth of approximately 1.0%.
-
Income from operations between $41.0 million and $42.3 million.
-
Net income of $16.1 million to $16.9 million.
-
Net income per diluted share of $0.60 to $0.63 based on 26.9 million
weighted average diluted shares outstanding, which includes $0.03 per
diluted share attributed to the 53rd week.
Conference Call Information
A conference call to discuss the financial results for the third quarter
of fiscal year 2017 is scheduled for today, January 31, 2017, 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 until February 28, 2017, by dialing (844) 512-2921 (domestic)
or (412) 317-6671 (international) and entering the conference
identification number: 13653455. 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. As of the date of this release, Boot Barn
operates 217 stores in 31 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.
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)
|
|
|
|
|
|
|
|
December 24,
|
|
March 26,
|
|
|
2016
|
|
2016
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
31,209
|
|
|
$
|
7,195
|
Accounts receivable, net
|
|
|
6,553
|
|
|
|
4,131
|
Inventories
|
|
|
180,032
|
|
|
|
176,335
|
Prepaid expenses and other current assets
|
|
|
16,733
|
|
|
|
15,558
|
Total current assets
|
|
|
234,527
|
|
|
|
203,219
|
Property and equipment, net
|
|
|
82,353
|
|
|
|
76,076
|
Goodwill
|
|
|
193,095
|
|
|
|
193,095
|
Intangible assets, net
|
|
|
63,246
|
|
|
|
64,861
|
Other assets
|
|
|
925
|
|
|
|
2,075
|
Total assets
|
|
$
|
574,146
|
|
|
$
|
539,326
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Line of credit
|
|
$
|
23,020
|
|
|
$
|
48,815
|
Accounts payable
|
|
|
89,496
|
|
|
|
66,553
|
Accrued expenses and other current liabilities
|
|
|
48,701
|
|
|
|
35,896
|
Current portion of notes payable, net of unamortized debt issuance
costs
|
|
|
1,042
|
|
|
|
1,035
|
Total current liabilities
|
|
|
162,259
|
|
|
|
152,299
|
Deferred taxes
|
|
|
19,067
|
|
|
|
12,255
|
Long-term portion of notes payable, net of unamortized debt issuance
costs
|
|
|
191,783
|
|
|
|
192,579
|
Capital lease obligation
|
|
|
7,941
|
|
|
|
8,272
|
Other liabilities
|
|
|
16,605
|
|
|
|
12,431
|
Total liabilities
|
|
|
397,655
|
|
|
|
377,836
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
Common stock, $0.0001 par value; December 24, 2016 - 100,000 shares authorized,
26,557 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
|
|
|
141,340
|
|
|
|
137,893
|
Retained earnings
|
|
|
35,203
|
|
|
|
23,594
|
Less: Common stock held in treasury, at cost, 12 and 4 shares at
December 24, 2016 and March 26, 2016, respectively
|
|
|
(55
|
)
|
|
|
—
|
Total stockholders’ equity
|
|
|
176,491
|
|
|
|
161,490
|
Total liabilities and stockholders’ equity
|
|
$
|
574,146
|
|
|
$
|
539,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boot Barn Holdings, Inc.
|
Consolidated Statements of Operations
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
Thirty-Nine Weeks Ended
|
|
|
December 24,
|
|
December 26,
|
|
December 24,
|
|
December 26,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net sales
|
|
$
|
199,431
|
|
$
|
193,842
|
|
|
$
|
466,813
|
|
$
|
419,554
|
|
Cost of goods sold
|
|
|
136,068
|
|
|
129,891
|
|
|
|
326,255
|
|
|
289,176
|
|
Amortization of inventory fair value adjustment
|
|
|
—
|
|
|
(228
|
)
|
|
|
—
|
|
|
(453
|
)
|
Total cost of goods sold
|
|
|
136,068
|
|
|
129,663
|
|
|
|
326,255
|
|
|
288,723
|
|
Gross profit
|
|
|
63,363
|
|
|
64,179
|
|
|
|
140,558
|
|
|
130,831
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
42,500
|
|
|
43,986
|
|
|
|
110,803
|
|
|
105,323
|
|
Acquisition-related expenses
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
891
|
|
Total operating expenses
|
|
|
42,500
|
|
|
43,986
|
|
|
|
110,803
|
|
|
106,214
|
|
Income from operations
|
|
|
20,863
|
|
|
20,193
|
|
|
|
29,755
|
|
|
24,617
|
|
Interest expense, net
|
|
|
3,637
|
|
|
3,553
|
|
|
|
10,848
|
|
|
9,347
|
|
Income before income taxes
|
|
|
17,226
|
|
|
16,640
|
|
|
|
18,907
|
|
|
15,270
|
|
Income tax expense
|
|
|
6,719
|
|
|
6,712
|
|
|
|
7,298
|
|
|
6,414
|
|
Net income
|
|
$
|
10,507
|
|
$
|
9,928
|
|
|
$
|
11,609
|
|
$
|
8,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares
|
|
$
|
0.40
|
|
$
|
0.38
|
|
|
$
|
0.44
|
|
$
|
0.34
|
|
Diluted shares
|
|
$
|
0.39
|
|
$
|
0.37
|
|
|
$
|
0.43
|
|
$
|
0.33
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares
|
|
|
26,495
|
|
|
26,326
|
|
|
|
26,432
|
|
|
26,116
|
|
Diluted shares
|
|
|
27,165
|
|
|
26,871
|
|
|
|
26,891
|
|
|
27,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boot Barn Holdings, Inc.
|
Consolidated Statements of Cash Flows
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Thirty-Nine Weeks Ended
|
|
|
December 24,
|
|
December 26,
|
|
|
2016
|
|
2015
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net income
|
|
$
|
11,609
|
|
|
$
|
8,856
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation
|
|
|
10,688
|
|
|
|
7,670
|
|
Stock-based compensation
|
|
|
2,260
|
|
|
|
2,143
|
|
Excess tax benefit
|
|
|
(7
|
)
|
|
|
(3,701
|
)
|
Amortization of intangible assets
|
|
|
1,615
|
|
|
|
1,852
|
|
Amortization and write-off of debt issuance fees and debt discount
|
|
|
843
|
|
|
|
1,991
|
|
Loss on disposal of property and equipment
|
|
|
163
|
|
|
|
237
|
|
Accretion of above market leases
|
|
|
(33
|
)
|
|
|
54
|
|
Deferred taxes
|
|
|
3,256
|
|
|
|
(1,060
|
)
|
Amortization of inventory fair value adjustment
|
|
|
—
|
|
|
|
(453
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
(2,422
|
)
|
|
|
(77
|
)
|
Inventories
|
|
|
(3,697
|
)
|
|
|
(13,859
|
)
|
Prepaid expenses and other current assets
|
|
|
2,256
|
|
|
|
9,057
|
|
Other assets
|
|
|
1,150
|
|
|
|
(1,550
|
)
|
Accounts payable
|
|
|
23,513
|
|
|
|
23,053
|
|
Accrued expenses and other current liabilities
|
|
|
12,762
|
|
|
|
17,068
|
|
Other liabilities
|
|
|
4,207
|
|
|
|
4,387
|
|
Net cash provided by operating activities
|
|
$
|
68,163
|
|
|
$
|
55,668
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
$
|
(17,698
|
)
|
|
$
|
(30,094
|
)
|
Acquisition of business, net of cash acquired
|
|
|
—
|
|
|
|
(146,541
|
)
|
Net cash used in investing activities
|
|
$
|
(17,698
|
)
|
|
$
|
(176,635
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
Borrowings/(payments) on line of credit - net
|
|
$
|
(25,795
|
)
|
|
$
|
13,807
|
|
Proceeds from loan borrowings
|
|
|
—
|
|
|
|
200,938
|
|
Repayments on debt and capital lease obligations
|
|
|
(1,788
|
)
|
|
|
(77,298
|
)
|
Debt issuance fees
|
|
|
—
|
|
|
|
(6,487
|
)
|
Tax withholding payments for net share settlement
|
|
|
(55
|
)
|
|
|
—
|
|
Excess tax benefit from stock options
|
|
|
7
|
|
|
|
3,701
|
|
Proceeds from the exercise of stock options
|
|
|
1,180
|
|
|
|
2,698
|
|
Net cash (used in)/provided by financing activities
|
|
$
|
(26,451
|
)
|
|
$
|
137,359
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
24,014
|
|
|
|
16,392
|
|
Cash and cash equivalents, beginning of period
|
|
|
7,195
|
|
|
|
1,448
|
|
Cash and cash equivalents, end of period
|
|
$
|
31,209
|
|
|
$
|
17,840
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
Cash paid for income taxes
|
|
$
|
1,389
|
|
|
$
|
2,901
|
|
Cash paid for interest
|
|
$
|
10,014
|
|
|
$
|
7,044
|
|
Supplemental disclosure of non-cash activities:
|
|
|
|
|
|
|
Unpaid purchases of property and equipment
|
|
$
|
1,422
|
|
|
$
|
2,416
|
|
|
|
|
|
|
|
|
|
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
|
|
Thirty-Nine Weeks Ended
|
|
|
December 24,
|
|
December 26,
|
|
December 24,
|
|
December 26,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Reconciliation of GAAP gross profit to adjusted gross profit
|
|
|
|
|
Gross profit, as reported
|
|
$
|
63,363
|
|
|
$
|
64,179
|
|
|
|
$
|
140,558
|
|
|
$
|
130,831
|
|
Amortization of inventory fair value adjustment (a)
|
|
|
—
|
|
|
|
(228
|
)
|
|
|
|
—
|
|
|
|
(453
|
)
|
Acquisition-related integration costs (b)
|
|
|
—
|
|
|
|
999
|
|
|
|
|
—
|
|
|
|
3,330
|
|
Contract termination costs (c)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
403
|
|
Adjusted gross profit
|
|
$
|
63,363
|
|
|
$
|
64,950
|
|
|
|
$
|
140,558
|
|
|
$
|
134,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP income from operations to adjusted income
from operations
|
|
|
|
|
Income from operations, as reported
|
|
$
|
20,863
|
|
|
$
|
20,193
|
|
|
|
$
|
29,755
|
|
|
$
|
24,617
|
|
Amortization of inventory fair value adjustment (a)
|
|
|
—
|
|
|
|
(228
|
)
|
|
|
|
—
|
|
|
|
(453
|
)
|
Acquisition-related expenses (d)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
891
|
|
Acquisition-related integration costs (b)
|
|
|
—
|
|
|
|
3,153
|
|
|
|
|
—
|
|
|
|
8,521
|
|
Loss on disposal of assets and contract termination costs (c)
|
|
|
—
|
|
|
|
53
|
|
|
|
|
—
|
|
|
|
1,107
|
|
SEC filing costs (e)
|
|
|
—
|
|
|
|
317
|
|
|
|
|
—
|
|
|
|
317
|
|
Adjusted income from operations
|
|
$
|
20,863
|
|
|
$
|
23,488
|
|
|
|
$
|
29,755
|
|
|
$
|
35,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to adjusted net income
|
|
|
|
|
|
|
|
Net income, as reported
|
|
$
|
10,507
|
|
|
$
|
9,928
|
|
|
|
$
|
11,609
|
|
|
$
|
8,856
|
|
Amortization of inventory fair value adjustment (a)
|
|
|
—
|
|
|
|
(228
|
)
|
|
|
|
—
|
|
|
|
(453
|
)
|
Acquisition-related expenses (d)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
891
|
|
Acquisition-related integration costs (b)
|
|
|
—
|
|
|
|
3,153
|
|
|
|
|
—
|
|
|
|
8,521
|
|
Loss on disposal of assets and contract termination costs (c)
|
|
|
—
|
|
|
|
53
|
|
|
|
|
—
|
|
|
|
1,107
|
|
SEC filing costs (e)
|
|
|
—
|
|
|
|
317
|
|
|
|
|
—
|
|
|
|
317
|
|
Write-off of debt discount (f)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
1,355
|
|
Provision for income taxes, as reported
|
|
|
—
|
|
|
|
6,712
|
|
|
|
|
—
|
|
|
|
6,414
|
|
Adjusted provision for income taxes
|
|
|
—
|
|
|
|
(7,937
|
)
|
|
|
|
—
|
|
|
|
(10,809
|
)
|
Adjusted net income
|
|
$
|
10,507
|
|
|
$
|
11,998
|
|
|
|
$
|
11,609
|
|
|
$
|
16,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of adjusted net income per diluted share to net
income per diluted share
|
|
|
|
|
Net income per share, diluted:
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share, as reported
|
|
$
|
0.39
|
|
|
$
|
0.37
|
|
|
|
$
|
0.43
|
|
|
$
|
0.33
|
|
Adjustments
|
|
|
—
|
|
|
|
0.08
|
|
|
|
|
—
|
|
|
|
0.27
|
|
Adjusted net income per share, diluted
|
|
$
|
0.39
|
|
|
$
|
0.45
|
|
|
|
$
|
0.43
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
|
|
27,165
|
|
|
|
26,871
|
|
|
|
|
26,891
|
|
|
|
27,003
|
|
(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 or written off. 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 professional fees and expenses incurred in connection
with a Form S-1 Registration Statement filed in July 2015 and
withdrawn in November 2015.
|
(f)
|
|
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
|
|
Quarter Ended
|
|
|
March 28,
|
|
June 27,
|
|
September 26,
|
|
December 26,
|
|
March 26,
|
|
June 25,
|
|
September 24,
|
|
December 24,
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
Store Count (BOP)
|
|
152
|
|
169
|
|
176
|
|
201
|
|
206
|
|
208
|
|
210
|
|
212
|
Opened/Acquired
|
|
18
|
|
7
|
|
31
|
|
5
|
|
4
|
|
2
|
|
2
|
|
6
|
Relocated (a)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
Closed Boot Barn Stores
|
|
(1)
|
|
—
|
|
(1)
|
|
—
|
|
(1)
|
|
—
|
|
—
|
|
—
|
Closed Sheplers Stores
|
|
—
|
|
—
|
|
(5)
|
|
—
|
|
(1)
|
|
—
|
|
—
|
|
—
|
Store Count (EOP)
|
|
169
|
|
176
|
|
201
|
|
206
|
|
208
|
|
210
|
|
212
|
|
219
|
(a)
|
|
Represents a store opened during the quarter ended December 24,
2016 that replaces a store located less than a mile away whose
lease expired and was closed in January 2017.
|
|
|
|
|
|
|
|
|
|
|
|
Debt Covenant EBITDA Reconciliation
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Thirteen Weeks Ended)
|
|
|
December 24,
|
|
September 24,
|
|
June 25,
|
|
March 26,
|
|
December 26,
|
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
Boot Barn's Net income
|
|
$
|
10,507
|
|
|
$
|
479
|
|
$
|
624
|
|
$
|
1,012
|
|
|
$
|
9,928
|
|
Income tax expense
|
|
|
6,719
|
|
|
|
313
|
|
|
266
|
|
|
1,029
|
|
|
|
6,712
|
|
Interest expense, net
|
|
|
3,637
|
|
|
|
3,651
|
|
|
3,560
|
|
|
3,576
|
|
|
|
3,553
|
|
Depreciation and intangible asset amortization
|
|
|
4,207
|
|
|
|
4,017
|
|
|
4,079
|
|
|
4,494
|
|
|
|
3,593
|
|
Boot Barn's EBITDA
|
|
$
|
25,070
|
|
|
$
|
8,460
|
|
$
|
8,529
|
|
$
|
10,111
|
|
|
$
|
23,786
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based compensation (a)
|
|
$
|
754
|
|
|
$
|
750
|
|
$
|
756
|
|
$
|
737
|
|
|
$
|
761
|
|
Non-cash accrual for future award redemptions (b)
|
|
|
399
|
|
|
|
133
|
|
|
42
|
|
|
(797
|
)
|
|
|
961
|
|
Acquisition-related integration costs (c)
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
1,817
|
|
|
|
3,153
|
|
Amortization of inventory fair value adjustment (d)
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
(47
|
)
|
|
|
(228
|
)
|
(Gain)/loss on disposal of assets and contract termination costs (e)
|
|
|
(22
|
)
|
|
|
126
|
|
|
59
|
|
|
267
|
|
|
|
53
|
|
SEC filing costs (f)
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
317
|
|
Boot Barn's Adjusted EBITDA
|
|
$
|
26,201
|
|
|
$
|
9,469
|
|
$
|
9,386
|
|
$
|
12,088
|
|
|
$
|
28,803
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional adjustments1
|
|
|
778
|
|
|
|
891
|
|
|
1,345
|
|
|
959
|
|
|
|
655
|
|
Consolidated EBITDA per Loan Agreements
|
|
$
|
26,979
|
|
|
$
|
10,360
|
|
$
|
10,731
|
|
$
|
13,047
|
|
|
$
|
29,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 or written off. 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 (gain)/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 filed in July 2015 and
withdrawn in November 2015.
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170131006290/en/
Source: Boot Barn Holdings, Inc.