Big Lots, Inc. · OTC:BIGGQ
Big Lots — Q3 2023 Earnings Presentation
22 slides from Big Lots's earnings presentation, Dec 5, 2023
Slide 1: Quarterly Results Presentation Third Quarter 2023
Q3 | 2023 | 1 QUARTERLY RESULTS PRESENTATION THIRD QUARTER 2023
Slide 2: Forward-Looking Statements
Q3 | 2023 | 2 FORWARD-LOOKING STATEMENTS Certain statements in this presentation are forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and such statements are intended to qualify for the protection of the safe harbor provided by the Act. The wor
Slide 3: Third Quarter Results, Guidance, Wrap-Up, Appendix
Q3 | 2023 | 3 THIRD QUARTER RESULTS GUIDANCE WRAP-UP APPENDIX
Slide 4: Significant progress in turning around our business
Q3 | 2023 | 4 Although the environment remains challenging, we continued to make significant progress in turning around our business. Our key strategic actions are building momentum and we continue to play offense with our efforts to deliver incredible bargains and communicate unmistakable value. As
Slide 5: Big Lots at a Glance
Q3 | 2023 | 5Q3 | 2023 | 5 27% 16% 15% 14% 11% 10% 7% Furniture Food Soft Home Consumables Seasonal The Lot, Apparel, Electronics, etc. Hard Home Chart based on Q3 2023 sales Diversified Category Mix National Store Footprint Industry-leading delivery options, easy checkout, multiple payment types; n
Slide 6: Third Quarter Summary
Q3 | 2023 | 6 Inline with Guidance Ahead of Guidance, Up 240bps vs. LY $1.18B Inventory at the end of Q2 Inline with Guidance, Managed Down Similar to Sales Decline -6.0% Adjusted operating expense1 vs. LY Ahead of Guidance -13.2% Comps 36.4% Gross margin THIRD QUARTER SUMMARY 1 Adjusted Operating E
Slide 7: Q3 2023 Comp Sales by Category
Q3 | 2023 | 7Q3 | 2023 | 7 Q3 2023 COMP SALES BY CATEGORY Sequential Improvements Relative to Q2 in Seasonal and Furniture Furniture Seasonal Hard Home Soft Home The Lot, Apparel, Electronics Food Consumables Total -17% -15% -15% -14% -13% -10% -7% -13%
Slide 8: Inventory Managed Down in Line with Q3 Sales
Q3 | 2023 | 8Q3 | 2023 | 8 INVENTORY MANAGED DOWN IN LINE WITH Q3 SALES 5.3% -7.3% -18.8% -15.2% -12.5% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 YOY Inventory Growth (Decline)
Slide 9: Adjusted Q3 2023 Summary Income Statement
Q3 | 2023 | 9Q3 | 2023 | 9 Net Sales Gross Margin Gross Margin Rate Adjusted Operating Expenses(1)(2) Adjusted Operating Expense Rate(2) Adjusted Operating Loss (2) Adjusted Operating Loss Rate(2) Adjusted Diluted (Loss) Earnings Per Share(2) Diluted Weighted Average Shares ADJUSTED Q3 2023 SUMMARY
Slide 10: Adjusted YTD 2023 Summary Income Statement
Q3 | 2023 | 10Q3 | 2023 | 10 Net Sales Gross Margin Gross Margin Rate Adjusted Operating Expenses(1)(2) Adjusted Operating Expense Rate(2) Adjusted Operating Loss (2) Adjusted Operating Loss Rate(2) Adjusted Diluted (Loss) Earnings Per Share(2) Diluted Weighted Average Shares ADJUSTED YTD 2023 SUMMA
Slide 11: Capital Allocation
Q3 | 2023 | 11 ~$75M FY2023 CAPEX CAPITAL ALLOCATION $306M Asset Monetization $900M ABL Credit Facility vs. initial guidance of ~$100M in March 2023 Net available liquidity of ~$258M* at end of Q3 Gross proceeds relating to sale/leaseback of California DC and 23 owned stores *Net liquidity is define
Slide 12: Third Quarter Results, Guidance, Wrap-Up, Appendix
Q3 | 2023 | 12 THIRD QUARTER RESULTS GUIDANCE WRAP-UP APPENDIX
Slide 13: Q4 2023 Guidance
Q3 | 2023 | 13 COMP SALES GROSS MARGIN IMPROVEMENT SG&A REDUCTION Down high-single-digit range; continued sequential improvement Significant improvement versus last year to approximately 38% Structural SG&A savings of over $100M for FY2023, prior to initial Project Springboard benefits Q4 2023 GUIDA
Slide 14: Five Key Strategic Actions
1. Own bargains 2. Communicate unmistakable value 3. Increase store relevance 4. Win with omnichannel 5. Drive productivity NOW THRU DECEMBER 22, BLACK FRIDAY IS EVERY FRIDAY! Preview all things Black Friday 50 you can start planning your shopping trips today! JEIX/TIRIEME| [B/AIR|G|A\ TN} 502° Less
Slide 15: Project Springboard
Q3 | 2023 | 15 On track to deliver a high proportion of the benefits in 2024 ~40% of savings in other gross margin items Inventory optimization, marketing, pricing & promotions ~20% of savings in SG&A Store & field operations, supply chain, general office $200M+ Bottom-line opportunities ~40% of sav
Slide 16: Third Quarter Results, Guidance, Wrap-Up, Appendix
Q3 | 2023 | 16 THIRD QUARTER RESULTS GUIDANCE WRAP-UP APPENDIX
Slide 17: Q3 Wrap-Up
Q3 | 2023 | 17 Q3 WRAP-UP • Comparable sales decline of 13.2% in Q3, in line with our guidance range; GAAP EPS of $0.16, with adjusted EPS loss of $4.38 due to year-over-year sales decline and continued cost pressures • Successfully reduced inventory in line with sales • Comps to continue to improve
Slide 18: Third Quarter Results, Guidance, Wrap-Up, Appendix
Q3 | 2023 | 18 THIRD QUARTER RESULTS GUIDANCE WRAP-UP APPENDIX
Slide 19: Third Quarter 2023 GAAP to Non-GAAP Reconciliation
Q3 | 2023 | 19Q3 | 2023 | 19 THIRD QUARTER 2023 GAAP TO NON-GAAP RECONCILIATION The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted gain on sale of real estate, adjusted gain on sale of real estate rate, adjusted operating profit (loss),
Slide 20: Third Quarter 2022 GAAP to Non-GAAP Reconciliation
Q3 | 2023 | 20Q3 | 2023 | 20 THIRD QUARTER 2022 GAAP TO NON-GAAP RECONCILIATION The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted operating loss, adjusted operating loss rate, adjusted income tax benefit, adjusted effective income tax
Slide 21: YTD 2023 GAAP to Non-GAAP Reconciliation
Q3 | 2023 | 21Q3 | 2023 | 21 YTD 2023 GAAP TO NON-GAAP RECONCILIATION The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted depreciation expense, adjusted depreciation expense rate, adjusted gain on sale of real estate, adjusted gain on sa
Slide 22: YTD 2022 GAAP to Non-GAAP Reconciliation
Q3 | 2023 | 22Q3 | 2023 | 22 YTD 2022 GAAP TO NON-GAAP RECONCILIATION The above adjusted selling and administrative expenses, adjusted selling and administrative expense rate, adjusted operating loss, adjusted operating loss rate, adjusted income tax benefit, adjusted effective income tax rate, adju