Five Year Financial Summary
| (Dollars in thousands, except per share amounts) |
2008 |
2007 |
2006 |
2005 |
2004 |
| NET SALES |
$9,802,237 |
$8,791,618 |
$8,280,379 |
$7,725,414 |
$7,193,912 |
| MEMEBERSHIP FEES |
177,530 |
175,782 |
161,747 |
149,538 |
138,986 |
| OTHER REVENUE |
47,599 |
47,065 |
54,496 |
57,976 |
57,703 |
| TOTAL REVENUES |
10,027,366 |
9,014,465 |
8,496,622 |
7,932,928 |
7,390,601 |
| |
| COGS INCLUDING BUYING AND OCCUPANCY |
9,003,978 |
8,090,581 |
7,601,282 |
7,063,663 |
6,590,284 |
| SG&A EXPENSE |
798,725 |
724,077 |
739,702 |
643,236 |
595,837 |
| PROVISION FOR CREDIT CARD CLAIMS |
— |
— |
2,000 |
4,000 |
7,000 |
| PREOPENING EXPENSE |
3,736 |
4,555 |
9,524 |
7,601 |
13,199 |
| OPERATING INCOME |
220,927 |
195,252 |
144,114 |
214,428 |
184,281 |
| INTEREST INCOME, NET |
764 |
3,742 |
2,638 |
2,742 |
803 |
| GAIN ON CONTINGENT LEASE OBLIGATIONS |
— |
— |
3,119 |
4,494 |
9,424 |
| INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
221,691 |
198,994 |
149,871 |
221,664 |
194,508 |
| PROVISION FOR INCOME TAXES |
85,871 |
77,613 |
57,081 |
86,407 |
74,836 |
| INCOME FROM CONTINUING OPERATIONS |
135,820 |
121,381 |
92,790 |
135,257 |
119,672 |
| GAIN (LOSS) FROM DISCONTINUED OPERATIONS |
(1,237) |
1,480 |
(20,774) |
(6,724) |
(5,271) |
| NET INCOME |
134,583 |
122,861 |
72,016 |
128,533 |
114,401 |
| DILUTED EARNINGS PER SHARE: |
| INCOME FROM CONTINUING OPERATIONS |
2.30 |
1.88 |
1.40 |
1.97 |
1.71 |
| DISCONTINUED OPERATIONS |
(0.02) |
0.02 |
(0.32) |
(0.10) |
(0.08) |
| NET INCOME |
2.28 |
1.90 |
1.08 |
1.87 |
1.63 |
| % CHANGE |
| TOTAL NET SALES |
11.50% |
6.17% |
7.18% |
7.39% |
10.10% |
| COMP CLUB SALES |
9.40% |
3.70% |
1.20% |
3.60% |
6.00% |
| OPERATING INCOME |
13.15% |
35.48% |
-32.79% |
16.36% |
12.52% |
| |
| EPS:INCOME FROM CONTINUING OPERATIONS |
22.34% |
34.29% |
-28.93% |
15.20% |
14.00% |
| EPS:NET INCOME |
20.00% |
75.93% |
-42.25% |
14.72% |
10.88% |
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| SELECTED RATIOS (% OF NET SALES) |
| MEMBERSHIP FEES |
1.81% |
2.00% |
1.84% |
1.70% |
1.58% |
| OTHER REVENUE |
0.49% |
0.54% |
0.62% |
0.66% |
0.66% |
| MERCHANDISE COST |
91.86% |
92.03% |
91.80% |
91.43% |
91.61% |
| MERCHANDISE GROSS MARGIN |
8.14% |
7.97% |
8.20% |
8.57% |
8.39% |
| SG&A EXPENSE |
8.15% |
8.24% |
8.93% |
8.33% |
8.28% |
| PREOPENING EXPENSE |
0.04% |
0.05% |
0.12% |
0.10% |
0.18% |
| OPERATING INCOME |
2.25% |
2.22% |
1.74% |
2.78% |
2.56% |
| INCOME FROM CONTINUING OPERATIONS |
2.26% |
2.26% |
1.81% |
2.87% |
2.70% |
| NET INCOME |
1.37% |
1.40% |
0.87% |
1.66% |
1.59% |
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| BALANCE SHEET STATISTICS AND RATIOS |
| WORKING CAPITAL |
167,776 |
198,905 |
203,000 |
257,503 |
208,852 |
| ACCOUNTS PAYABLE/INVENTORY |
67.87% |
71.00% |
65.86% |
68.49% |
70.20% |
| TOTAL ASSETS |
2,021,436 |
2,046,519 |
1,993,014 |
1,989,849 |
1,891,514 |
| LONG TERM DEBT INCLUDING CAPITAL LEASES |
1,148 |
1,715 |
2,243 |
2,737 |
3,196 |
| SHAREHOLDERS' EQUITY |
984,804 |
980,492 |
1,019,887 |
1,015,979 |
939,167 |
| RETURN ON INVESTED CAPITAL |
15.70% |
15.00% |
14.90% |
15.60% |
16.30% |
| DEBT/TOTAL CAPITALIZATION, INCLUDING CAPITAL LEASES |
0.17% |
0.23% |
0.27% |
0.31% |
0.39% |
| CURRENT RATIO |
1.18 |
1.21 |
1.23 |
1.30 |
1.25 |
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| CASH FLOW INFORMATION |
| DEPRECIATION |
107,609 |
106,403 |
105,253 |
103,807 |
98,900 |
| CASH FLOW FROM OPERATIONS |
223,941 |
304,811 |
172,889 |
192,464 |
237,229 |
| CAPITAL SPENDING |
138.0 |
89.9 |
190.8 |
123.1 |
133.3 |
During 2008, the Company recorded post-tax expense of $0.5 million, or $.01 per diluted share, to increase its reserve for closed clubs. Also in 2008, the Company recorded post-tax income of $3.3 million, or $.06 per diluted share, as a result of favorable state income tax audit settlements.
Results in 2007 included post-tax income of $3.6 million or $.05 per diluted share, as a result of favorable state income tax audit settlements; $2.4 million, or $.04 per diluted share, as a result of settling the lease for one of the two ProFoods clubs, which the Company closed in January 2007; and $0.6 million, or $.01 per diluted share, in connection with completing the closing of BJ's pharmacies in the first quarter. Results in 2007 also included post-tax expenses of $11.3 million, or $.17 per diluted share, for stock-based compensation.
In the first quarter ended May 5, 2007, the Company implemented FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109" (FIN 48). The implementation of FIN 48 required the Company to record a charge to stockholders' equity of $6.2 million.
Results in 2006 included post-tax expense of $10.9 million, or $.16 per diluted share, to record stock-based compensation; $15.2 million, or $.23 per diluted share for costs associated with the closing of ProFoods; post-tax expenses of $5.2 million, or $.08 per diluted share, for long lived asset impairment; post-tax losses of $4.3 million, or $.06 per diluted share, for the closing of the Company's in-club pharmacies; losses of $2.9 million, or $.04 per diluted share, for severance pay and other corporate restructuring costs; and post-tax losses of $1.2 million, or $.02 per diluted share, to increase the Company's reserve for credit card claims. Results also included post-tax gains of $4.0 million, or $.06 per diluted share, resulting from a 53rd week of sales and gains of $2.1 million, or $.03 per diluted share, from House2Home bankruptcy recoveries.
Results in 2005 included post-tax gains of $3.1 million, or $.04 per diluted share, from House2Home bankruptcy recoveries and from the reduction in the Company's House2Home contingent lease obligations, and post-tax gains of $1.9 million, or $.03 per diluted share, in connection with a settlement reached in the Visa®/Mastercard® antitrust litigation. Results in 2005 also included post-tax losses of $2.4 million, or $.03 per diluted share, to increase the Company's reserve for credit card claims.
The results for 2004 include post-tax gains of $6.1 million, or $.09 per diluted share, to record House2Home bankruptcy recoveries and reductions in the Company's House2Home contingent lease obligations; a post-tax loss of $4.2 million, or $.06 per diluted share, to establish a reserve for credit card claims; a post-tax loss of $4.3 million, or $.06 per diluted share, to record lease accounting corrections; and a post-tax loss of $1.7 million, or $.02 per diluted share, to increase closed club reserves.
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| |
2008 |
2007 |
2006 |
2005 |
2004 |
| # OF CLUBS |
180 |
177 |
172 |
163 |
155 |
| LARGE |
161 |
158 |
153 |
144 |
137 |
| SMALL |
19 |
19 |
19 |
19 |
18 |
| # OF SQUARE FEET (MILLIONS) |
19.5 |
19.2 |
18.6 |
17.5 |
16.6 |
| LARGE |
18.2 |
17.8 |
17.2 |
16.2 |
15.4 |
| SMALL |
1.3 |
1.3 |
1.3 |
1.3 |
1.3 |
| COMP SALES/AVG. CLUB (000) |
| LARGE |
58,043 |
53,811 |
53,353 |
52,163 |
51,416 |
| SMALL |
34,388 |
31,586 |
29,847 |
28,614 |
25,754 |
| COMP SALES/AVG. SQ. FT. (000) |
510 |
477 |
471 |
461 |
454 |
| AVG. CLUB AGE |
10.5 |
9.8 |
9.5 |
8.9 |
8.3 |
| AVG. RENT/SQ. FT. |
10.69 |
10.43 |
10.10 |
9.90 |
9.64 |
| TOTAL NET SALES/EMPLOYEE (000) |
499 |
456 |
430 |
430 |
423 |
| AVG. CLUB INVENTORY (000) |
4,775 |
4,957 |
4,947 |
4,929 |
4,839 |
| SALES TO INVENTORY RATIO |
11.4 |
10.0 |
9.7 |
9.5 |
9.5 |
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