Bj's Wholesale Club Holdings, Inc. · NYSE:BJ
Bj's Wholesale Club — Investor Day (March 2023)
87 slides from Bj's Wholesale Club's investor day presentation, Mar 9, 2023
Slide 1: BJ's Wholesale Club Investor Day
March 9, 2023 BJ’s Wholesale Club Investor Day
Slide 2: Forward-Looking Statements
Forward-Looking Statements: This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward looking statements
Slide 3: Today's agenda
Today’s agenda Time Content 8:30am Management presentations 10:15am Break (15 minutes) 10:30am Q&A 3
Slide 4: 4
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Slide 5: Bob Eddy
Bob Eddy President & Chief Executive Officer
Slide 6: We reported record Q4 results…
We reported record Q4 results… $4.8B +8.7% $101.8M Net sales +13% Comparable club MFI 2 vs. Q4 FY21 sales growth 1 +8% vs. Q4 FY21 90% $271.3M $1.00 3 Tenured 3 Adjusted EBITDA Adjusted EPS renewal rate +19% vs. Q4 FY21 +25% vs. Q4 FY21 1 Excluding the impact of gasoline sales 2 Membership fee incom
Slide 7: … completing a milestone FY22
… completing a milestone FY22 $18.9B +6.5% $396.7M $1.0B $3.92 2 2 Net sales Comparable club MFI Adjusted EBITDA Adjusted EPS +16% vs. FY21 sales growth1 +10% vs. FY21 +18% vs. FY21 +21% vs. FY21 Surpassed $1B for the first time ever! 1 Excluding the impact of gasoline sales 2 Refer to Appendix sect
Slide 8: We have delivered significant growth since 2018
We have delivered significant growth since 2018 FY22 vs. FY18 +49% +40% 90% +79% 1 Net sales MFI Tenured Adjusted EBITDA renewal rate +195% 1 $2B+ 0.8x Adjusted EPS Cumulative Net debt to adjusted 1 free cash flow 1 EBITDA $495M +236% Cumulative share Total stock return repurchases since IPO 2 1 Ref
Slide 9: Our long-term financial targets reflect continued momentum
Our long-term financial targets reflect continued momentum Comparable Total revenues EPS club sales 1 LSD% – MSD% MSD% HSD% – LDD% growth growth growth 1 Excluding the impact of gasoline sales 9
Slide 10: The warehouse club model offers significant structural advantages
The warehouse club model offers significant structural advantages Operate efficiently • Limited SKUs support pallet presentation, driving scale and inventory turns • Requires less labor in club • Efficient distribution • Lower per square foot build-out costs Constantly reinvest into value • ~25% bet
Slide 11: The warehouse club channel is growing and taking share
The warehouse club channel is growing and taking share Accelerated share gains in recent years U.S. warehouse club market size 1 with opportunity for future growth1 ($ in B) U.S. sales growth by channel 2022 share of (2018 – 2022 CAGR) $269 U.S. retail sales + 6% G R CA $236 4.9% $204 11.1% $183 $17
Slide 12: We are a stronger company today, built on our strategic priorities
We are a stronger company today, built on our strategic priorities Strategic Priorities Improve Unbeatable Deliver value Grow member loyalty member experience conveniently our footprint Foundational Drivers World-class team Operational excellence Cost and capital discipline 12
Slide 13: Membership has never been stronger
Membership has never been stronger 6.8M 90% 38% 1 Members Tenured renewal rate Higher-tier penetration +27% vs. FY18 +3pp vs. FY18 +13pp vs. FY18 1 Members with BJ’s Club Plus, BJ’s One, or BJ’s One Plus membership 13
Slide 14: MFI has grown every year for 25 years
MFI has grown every year for 25 years ($ in M) $397 $361 $333 G R +8% $302 CA $283 $255 $259 $242 $243 $247 $229 $210 $191 $173 $175 $180 $159 $139 $150 $118 $124 $106 $79 $90 $56 $66 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 F
Slide 15: Our 1.5M credit card members
Our new co-brand credit card will drive increased value to members, who will reward us with more lifetime value Why we’re excited Best-in-class card program to drive top-of-wallet status Better value prop enhances all BJ’s Perks Plus™ Mastercard® BJ’s One™ Mastercard® higher-tier membership Our 1.5M
Slide 16: We strive to deliver a great member experience grounded in value
We strive to deliver a great member experience grounded in value How members save at BJ’s Illustrative member savings1 Lower prices EDLP savings Fresh food and deli assortment can fulfill weekly Coupons grocery shopping needs Quality Own Brand products ~10x Own Brands Return on Digital app allows fo
Slide 17: Our focus on value has led to greater spend and trips across our member base…
Our focus on value has led to greater spend and trips across our member base… Trips per member by Spend per member by 1 1 income cohort income cohort (YoY change) (YoY change) Low Mid High Low Mid High 6% 6% +130bps 4% 4% YoY improvement in pricing position 2% 2% against competitors in FY22 0% 0% Q1
Slide 18: …leading to market share gains over the past several years
…leading to market share gains over the past several years +69bps +26bps +48bps +47bps Overall Grocery Perishables Sundries 2019 2022 Source: BJ’s custom database; Market share excludes General Merchandise due to variances in comparability 18
Slide 19: The convenience of our digital offerings drives spend
The convenience of our digital offerings drives spend Digital members1 spend nearly 70% more with us annually 2 Digitally-enabled sales in FY22 grew 290% on a 3-yr stack 9% 2% FY18 FY22 Digital penetration %3 1 Members making at least one digitally-enabled purchase (BOPIC/Curbside pickup, same-day d
Slide 20: We have an industry leading footprint on the east coast...
We have an industry leading footprint on the east coast... 237 165 18 Clubs Gas Stations States Leading positions in core Eastern U.S. markets Club Support Center Distribution center 1 BJ’s club location ~3x clubs vs. next largest competitor in New England Note: As of March 9, 2023 1 Refers to core
Slide 21: ...and we are quickly growing our reach
...and we are quickly growing our reach …Today 5 years ago… Opened 9 new clubs in FY22 Opened 1 new club Expect 11-12 new clubs in FY23 Pipeline in early stages Recent openings prove our model works Goal was 1%–2% unit growth Expect to open ~10 new units per year for the foreseeable future Note: FY1
Slide 22: Capital allocation priorities designed to maximize shareholder value
Capital allocation priorities designed to maximize shareholder value Reinvest for Maintain strong Return cash to long-term growth balance sheet shareholders 22
Slide 23: We have built a great leadership team to drive our strategic priorities
We have built a great leadership team to drive our strategic priorities Bob Eddy Laura Felice Paul Cichocki Tim Morningstar Rachael Vegas Jeff Desroches President & Chief Chief Financial Chief Commercial Chief Membership Chief Merchandising Chief Operations Executive Officer Officer Officer Officer
Slide 24: Today, you will hear a compelling growth story
Today, you will hear a compelling growth story Membership is our foundation Driving digital convenience 1 Paul Cichocki, Chief Commercial Officer 4 Monica Schwartz, Chief Digital Officer Improving member loyalty Growing our footprint 2 Tim Morningstar, Chief Membership Officer 5 Bill Werner, EVP Str
Slide 25: Paul Cichocki
Paul Cichocki Chief Commercial Officer
Slide 26: BJ's go-to-market strategy is differentiated
BJ’s go-to-market strategy is differentiated vs. Club vs. Grocery vs. Mass channel Broader assortment ~25% lower prices1 Price below mass channel break-even Smaller pack sizes Treasure hunt Larger pack sizes Smaller club format Services & fuel Convenient locations Full-service deli 26 1 25% savings
Slide 27: We serve Smart Saving Families
We serve Smart Saving Families Savvy and price conscious Saving is a sport Excited about promotions and deals Enjoy brand-name products as “small luxuries” Prefer stocking up Enjoy entertaining family and friends ATTRACT ENGAGE RETAIN 27
Slide 28: Enterprise analytics is the foundation for our key strategic decisions
Enterprise analytics is the foundation for our key strategic decisions Enterprise Analytics Member analytics Pricing & promo Prospect segmentation Category analytics & targeting optimization STRATEGIC DECISIONS Merchandise analytics Member engagement Promotional Personalized optimization offers 28
Slide 29: We measure success through multiple lenses
We measure success through multiple lenses Member ROI Member Digital Member experience engagement lifetime value • ~10x return on annual • Net Promoter Score • Digitally-enabled • 90% retention rate membership fee relative to our revenue • Frequency and basket competitors • Digital shoppers • Member
Slide 30: Strategic priorities from our commercial leaders
Strategic priorities from our commercial leaders Improve Unbeatable member Deliver value Grow our member loyalty experience conveniently footprint • Member value • Our “good-to-great” • Digital experience • Strength of our club proposition journey base • Assortment & value • Digital penetration • Da
Slide 31: Tim Morningstar
Tim Morningstar Chief Membership Officer Improve Unbeatable Deliver value Grow our member member conveniently footprint loyalty experience
Slide 32: Our members are our most important asset
Our members are our most important asset 1 Our growing member base … …is driving record MFI $397M 6.8M % % +9 +6 G R AGR CA C 5.4M $283M FY18 FY22 FY18 FY22 MEMBERSHIP FEE INCREASE INCLUDED IN BASELINE 1 Active primary members 32
Slide 33: Member loyalty and renewal is essential to our success
Member loyalty and renewal is essential to our success Small improvements in loyalty have a large impact 6.8M +1pp ~+175K ~+$4.0B members retention rate members retained revenues1 over over ten years ten years 1 Includes gas sales & MFI 33
Slide 34: Delivering value drives member renewal rate
Delivering value drives member renewal rate Member value Higher-tier penetration1 ~10x return on annual membership fee Higher FY18: 25% FY22: 38% renewal 4 2 Easy renewal Promo engagement FY18: 53% FY22: 79% FY19: 20% FY22: 70% 3 Digital adoption (MAU) FY18: 0.6M FY22: 3.2M 1 Higher-tier members ove
Slide 35: Membership renewal reached unprecedented levels
Membership renewal reached unprecedented levels We reached a record 90% renewal rate Closing the shopper preference1 gap Tenured member renewal rate Dunnhumby Retailer Preference Index 2023 90% 87% 83% 85% #10 out of 63 retailers FY05-FY14 FY15-FY17 FY18 FY22 Average member tenure 100 116 118 127 BJ
Slide 36: We still have major opportunities to continue growing our membership asset
We still have major opportunities to continue growing our membership asset 1 2 3 Invest in member value Leverage data for Reinforce our proposition personalization core brand message 36
Slide 37: We will make BJ's member value proposition irresistible
1 We will make BJ’s member value proposition irresistible Rewards reboot: Brand new benefits Capital One co-brand credit card Club Club+ One One+ Fee $55 $110 $55 $110 curb-sidepickup Free curbside pickup In-club earn 2% 3% 5% Gas discount 5¢/gal 10¢/gal 15¢/gal Out-of-club earn 1.5% 2% Rewards expi
Slide 38: We have perfect data to anticipate our member needs…
2 We have perfect data to anticipate our member needs… Bob Paul Profile Age 50 54 Gender Male Male Interests Music, Movies Gardening Transactions Total spend $38k $8k Last Trip 2/27, Nashua 2/15, Framingham Last Tire Center/Optical Visit - 11/10/2019 Favorites Whipped Cream, Socks, Iced Coke Zero, S
Slide 39: …and deliver personalized messaging across channels
2 …and deliver personalized messaging across channels Reinforce savings Drive Push members Win with message engagement from good-to-great specific cohorts Multi-channel delivery: emails, push notifications, and voice messages are tailored to member preferences 39
Slide 40: Reinforce our core brand message
3 Reinforce our core brand message: Focus on the three reasons members love us 1 ~25% off grocery Fresh Gas 1 25% savings based on a representative basket of manufacturer-branded groceries compared to traditional supermarket competitors. For additional information, refer to our Form 10-K filed with
Slide 41: Bringing it all together
Bringing it all together 1 2 3 Invest in member value Leverage data for Reinforce our proposition personalization core brand message • Growing membership base and MFI • Increased member spend and frequency • Stronger and memorable brand equity 41
Slide 42: Rachael Vegas
Rachael Vegas Chief Merchandising Officer Improve Unbeatable Deliver value Grow our member loyalty member conveniently footprint experience
Slide 43: Building on our momentum: From good to great
Building on our momentum: From good to great We have grown market share from pre-pandemic …but there is still meaningful levels across our business…. opportunity for growth +69bps in Grocery Increase relevance for our members +48bps Deliver even better quality and freshness +47bps in Perishables Cre
Slide 44: Be the first choice for our members
Our merchandising vision Be the first choice for our members by saving them money on their needs and inspiring them with the unexpected Strategic priorities: Assortment & Talent Innovation Own Brands merchandising Deepen talent pool while Drive increased relevance Continuously keep our Increase memb
Slide 45: Investing in talent is foundational to our future growth
Investing in talent is foundational to our future growth Working synergistically to deliver our strategy 66% of leaders 33% of merchants Added experience new in role promoted from other channels Best team in retail Passion and Club channel Operational Organizational Training and creativity expertise
Slide 46: We will build on our strength in Perishables
We will build on our strength in Perishables Fresh and perishables We will make it even better determine the trip through our Fresh 2.0 initiative Faster and more ~35% of sales 1 reliable sourcing Wide selection of fresh Select smaller sizes and produce & meat transparent packaging Compelling displa
Slide 47: Continuing to simplify Grocery and Sundries categories
Continuing to simplify Grocery and Sundries categories Destination for Continued simplification to curate our experience and deliver results delivering value 31% SKU +200bps profit Improved operational reduction2 improvement3 efficiency ~50% of sales 1 Great brands that members love Significant savi
Slide 48: We are transforming our General Merchandise business
We are transforming our General Merchandise business Regaining Our new strategy will begin to come to life this fall our relevance Quality & Newness & On trend exceptional value innovation ~15% of sales 1 Where our members look for innovation The treasure hunt is important 1 FY22 merchandise sales 4
Slide 49: Offering new products and compelling brands to our members
Offering new products and compelling brands to our members Adding and refreshing trend-right brands Over 80% of our toys will be new next across our apparel business holiday with exciting brands and licenses 49
Slide 50: Becoming a destination for newness for our members
Becoming a destination for newness for our members Delivering on our mission to inspire members with the unexpected Grocery Bakery Sundries Appliances 75% of our members consider new items important to their shop 1 1 Source: December 2022 Boone Insights industry survey 50
Slide 51: Own Brands drive differentiated value for BJ's and our members
Own Brands drive differentiated value for BJ’s and our members Own Brands role in driving engagement Value Profitability Loyalty Members who shop these Investing in Own Brands to Recently launched over 1 brands are more valuable increase penetration 120 new Own Brand items 3x annual spend 2 30% 23%
Slide 52: Taking a holistic member-centric approach to Thanksgiving
Taking a holistic member-centric approach to Thanksgiving Member 10x engagement 1 Market share 30bps growth2 Incremental 5x sales 3 Thanksgiving 2021 Thanksgiving 2022 1 Redemption vs. average BJ’s scale program reward 2 YoY market share based on BJ’s custom database during qualification and redempt
Slide 53: We are just getting started to deliver on our vision for our members
We are just getting started to deliver on our vision for our members Talent Assortment & Innovation Own Brands merchandising Growing relevance with our members will drive increases in sales, margin and market share 53
Slide 54: Monica Schwartz
Monica Schwartz Chief Digital Officer Improve Unbeatable Deliver value Grow our member loyalty member conveniently footprint experience
Slide 55: Our goal is to deliver convenience to our members
Our goal is to deliver convenience to our members 1 2 3 Digitally-enabled sales In-club conveniences Targeted messaging and BOPIC1 / retail media program Price scan Curbside pickup In-club coupons Same-day delivery (“SDD”) Deli pre-ordering Ship-to-home, Express Pay, other2 1 Buy online, pick up in
Slide 56: Members who shop digitally are more valuable
Members who shop digitally are more valuable Digitally-engaged …have higher members spend more… …and are growing fast renewal rates… 19% 1.7x p 3p +1 Annual spend2 3pp Higher tenured 1.5x 1.5x member 6% Promo renewal rate Annual trips engagement FY18 FY22 Digitally-engaged shoppers1 Digitally-engage
Slide 57: We grew digitally-enabled sales 6x since FY18
We grew digitally-enabled sales 6x since FY18 1 Digitally-enabled sales are …but our digital offerings facilitate 9% of our merchandise sales today… 34% of our merchandise sales $5.1B $1.4B % In-club sales 05 56% with digital +1 + coupon R GR G $3.7B A CA C $0.2B Digitally-enabled $0.3B sales $1.4B
Slide 58: Key investments in our capabilities have unlocked growth
Key investments in our capabilities have unlocked growth EBT DoorDash Same-Day Select® Personalized BOPIC / Curbside SDD Other digital coupons BOPIC fresh & Substitution Same-day delivery App 3.0 Curbside pickup BOPIC & App 2.0 Digital Sales Promotional Instacart white label Ship-from- parity Same-d
Slide 59: Same-day delivery makes BJ's as convenient as any grocer
Same-day delivery makes BJ’s as convenient as any grocer, at ~25% lower prices1 We elevated our same-day delivery capabilities Routing & In-club + Pick & Pack Fewer cancellations, Optimized delivery Scalable Broader geo More category more substitutions cost and time economics coverage breadth 59 1 2
Slide 60: Our members love our app
Our members love our app Great app! So convenient I Industry-leading app rating never forget my coupons. I can Walmart 4.8 load them to my card right from Sam's 4.8 the app. I always use Jill L. BJs 4.7 the app, especially to Target 4.5 track gas prices. Aldi 4.4 Cynthia A. I am able to Wegmans 4.2
Slide 61: Continue to win by elevating member convenience
Continue to win by elevating member convenience Frictionless digital In-club digital Targeted messages experience conveniences & media Enhanced merchandising Smart planning Personalization • Navigation and bundling • Buy it again • Targeted content and offerings • Shop by brand, diet, fulfillment •
Slide 62: Bill Werner
Bill Werner EVP Strategy and Development Improve Unbeatable Deliver value Grow our member loyalty member conveniently footprint experience
Slide 63: We have an advantaged real estate position built over nearly 40 years
We have an advantaged real estate position built over nearly 40 years 237 clubs supported by BJ’s is the leading club operator seven distribution centers 1 in the northeast Club footprint as of March 2023 Uxbridge, MA Dry DC Club Door Share2 237 Rocky Hill, CT Midwest 15 11% Perishable DC Burlington
Slide 64: Our club performance is strong, growing and profitable
Our club performance is strong, growing and profitable Blue bars denote club-level EBITDA of clubs opened in FY16-FY21 FY22 Club-level EBITDA Note: Club-level EBITDA includes all comp clubs as of January 2023 64
Slide 65: We have opened 23 new clubs since FY18
We have opened 23 new clubs since FY18, ten of which are in new markets Openings since FY18 Ten openings in new markets since FY18 Midwest 2 23 Michigan - 5 Southeast 9 2 Mid-Atlantic 4 9 New England Indianapolis - 1 2 2 5 1 2 7 Columbus - 1 Pittsburgh - 2 1 1 4 1 1 Pensacola - 1 1 2 5 3 2 1 2 FY19
Slide 66: We have continually refined our new club playbook to achieve these results
We have continually refined our new club playbook to achieve these results Improved member acquisition • Robust integrated pre-open campaign • Digital acquisition marketing • Higher-tier/co-brand acquisition Elevated in-club experience • Team member training & GOLD standard certification • Improved
Slide 67: Our new club openings since FY16 are exceeding previous opening performance
Our new club openings since FY16 are exceeding previous opening performance FY16-FY21 club openings vs. FY15 club openings +16pp +60% +12pp Higher-tier membership Merchandise sales Renewal rate 1 penetration end of year 1 end of year 1 Note: FY16-FY21 includes 12 club openings; FY15 includes six clu
Slide 68: We are able to drive incremental growth from in-fill locations in existing markets
We are able to drive incremental growth from in-fill locations in existing markets Metro New York in-fill club After in-fill opening, New members from in-fill pre-existing members1 club 2 shop multiple clubs in trade area shop more in trade area Strong existing member base In-fill club members’ spen
Slide 69: We continue to expand our footprint and to perfect member value delivery
We continue to expand our footprint and to perfect member value delivery 11-12 openings in FY23 Refining how we deliver member value Johnson City, NY Build and remodel clubs for convenience Gas stations Lewis Center, OH Mt. Juliet, TN La Vergne, TN Huntsville, AL N. Jacksonville, FL 69
Slide 70: Our compelling new club model
Our compelling new club model New club unit economics Illustrative club sales ramp Openings per year ~10 Average mature $58M $50-60M merchandise sales Illustrative Leased Owned $40M Build-out cost $6-9M $16-20M Land cost N/A $3-12M Working capital $1M $1M Pre-opening expense $3M $3M Total upfront co
Slide 71: Laura Felice
Laura Felice Chief Financial Officer
Slide 72: Q4 FY22 highlights: We delivered a record fourth quarter
Q4 FY22 highlights: We delivered a record fourth quarter Net sales Comparable club sales MFI 1 ($ in B) growth ($ in M) 3% $4.8 $101.8 +1 8.7% Grocery2 +12% +8% $4.2 General Merchandise $94.3 & Services -5% Q4 FY21 Q4 FY22 Q4 FY22 Q4 FY21 Q4 FY22 3 3 Merchandise gross margin Adjusted EBITDA Adjusted
Slide 73: FY22 lookback
FY22 lookback $18.9B +6.5% $396.7M Net sales +16% Comparable club MFI +10% vs. FY21 sales growth1 vs. FY21 $1.0B $3.92 2 2 Adjusted EBITDA Adjusted EPS +18% vs. FY21 +21% vs. FY21 1 Excluding the impact of gasoline sales 2 Refer to Appendix section 73
Slide 74: FY23 outlook
FY23 outlook Comparable club MFI growth of Merchandise gross EPS approximately Capital expenditures sales1 growth of 5%–6% YoY margins flat YoY of approximately 4%–5% YoY approximately $450M +40bps YoY rd Including 53 week benefit of low-teens cents per share 1Excluding the impact of gasoline sales
Slide 75: We are a stronger company today, built on our strategic priorities
We are a stronger company today, built on our strategic priorities Strategic Priorities Improve Unbeatable Deliver value Grow member loyalty member experience conveniently our footprint Foundational Drivers World-class team Operational excellence Cost and capital discipline 75
Slide 76: Our long-term financial targets reflect continued momentum
Our long-term financial targets reflect continued momentum Comparable Total revenues EPS club sales 1 LSD% – MSD% MSD% HSD% – LDD% growth growth growth 1 Excluding the impact of gasoline sales 76
Slide 77: Building blocks to long-term target: total revenue growth
Building blocks to long-term target: total revenue growth Comparable New clubs Fuel business Membership club sales 1 Focus on member Approximately ten new Stable gas business Continued strength in experience, convenience club openings per year amplified by new member base drives and value openings M
Slide 78: Building blocks to long-term target: EPS growth
Building blocks to long-term target: EPS growth Drivers Considerations Revenue growth impact Advantaged club model allows us to reinvest in Merchandise gross margin the business improvements: • Mix / Own Brands Footprint expansion (30% penetration goal) Investments in team • Supply chain efficiencie
Slide 79: We have allocated our significant cash flows well
We have allocated our significant cash flows well ~$4B Cumulative cash from operations + IPO proceeds (FY18-FY22)1 Maintain strong balance sheet Reinvest for long-term growth Return cash to shareholders ~50% ~40% ~10% • Repaid nearly $2B of debt • Capital expenditures3 • Over $495M of share repurcha
Slide 80: Key investment highlights
Key investment highlights Advantaged Loyal membership Differentiated Accelerated Prudent capital business model in base that is shopping expansion of allocation strategy a favorable market growing in size and experience focused highly profitable maximizes backdrop quality on fresh, value club base s
Slide 81: We will resume shortly
We will resume shortly 81
Slide 82: Q&A
Q&A Bob Eddy Laura Felice Paul Cichocki Tim Morningstar President & Chief Chief Financial Chief Commercial Chief Membership Executive Officer Officer Officer Officer Rachael Vegas Jeff Desroches Bill Werner Monica Schwartz Chief Merchandising Chief Operations EVP Strategy & Chief Digital Officer Off
Slide 83: Appendix
Appendix
Slide 84: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations Adjusted EBITDA (in M) FY17 FY18 FY19 FY20 FY21 FY22 Q4 FY21 Q4 FY22 Income from continuing operations $52 $127 $188 $421 $427 $514 $108 $129 Interest expense, net 197 165 108 84 59 47 12 16 Provision (benefit) for income taxes (28) 12 56 137 131 176 38 47 Depreciati
Slide 85: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations Net debt to LTM adjusted EBITDA (in M) FY17 FY18 FY19 FY20 FY21 FY22 Total debt $2,712 $1,801 $1,681 $1,106 $749 $853 Less: Cash and cash equivalents 35 27 30 44 45 34 Net debt $2,677 $1,774 $1,650 $1,063 $703 $819 LTM adjusted EBITDA $534 $578 $582 $857 $880 $1,038
Slide 86: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations Adjusted EPS (in M, except per share data) FY18 FY19 FY20 FY21 FY22 Q4 FY21 Q4 FY22 Net income as reported $127 $187 $421 $427 $513 $108 $130 Adjustments: Offering costs 4 2 0 0 0 0 0 Stock-based compensation related IPO 49 0 0 0 0 0 0 Management fees 3 0 0 0 0 0 0 S
Slide 87: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations Free cash flow ($ in M) FY18 FY19 FY20 FY21 FY22 Net cash provided by operating activities $427 $355 $869 $832 $788 Less: Additions to property & equipment, net of disposals 146 197 218 324 398 Plus: Proceeds from sale leaseback transactions 0 22 26 19 27 Free cash f
BJ's Wholesale Club Holdings — Investor Day (March 2023) on 6ix