Big Lots, Inc. · OTC:BIGGQ
Big Lots — Q3 2022 Earnings Presentation
19 slides from Big Lots's earnings presentation, Dec 5, 2022
Slide 1: Quarterly Results Presentation Third Quarter 2022
Q3 | 2022 | 1 QUARTERLY RESULTS PRESENTATION THIRD QUARTER 2022
Slide 2: Forward-Looking Statements
Q3 | 2022 | 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 word
Slide 3: Third Quarter Results, Outlook, Wrap-Up, Appendix
Q3 | 2022 | 3 THIRD QUARTER RESULTS OUTLOOK WRAP-UP APPENDIX
Slide 4: CEO Comment
Q3 | 2022 | 4 The third quarter marks another quarter in which we met the challenges of a tough environment head on and did what we said we would do. Our sales and gross margin were in line with guidance and, importantly, year-over- year inventories continued to come down materially. We saw favorabi
Slide 5: Big Lots at a Glance
Q3 | 2022 | 5 25% 16% 14% 13% 11% 11% 10% Furniture Food Soft Home Consumables Hard Home Seasonal The Lot, Apparel, Electronics, etc. Chart based on Q3 2022 sales Diversified Category Mix National Store Footprint Industry-leading delivery options, easy checkout, multiple payment types in-store and o
Slide 6: Third Quarter Highlights
Q3 | 2022 | 6 In line With Guidance 19 bps Conversion Rate Increase $1.35B Inventory at the end of Q3 Up 5.3% vs. LY vs. up 22.8% in Q2 YOY -1% Adjusted operating expense1 vs. LY Better than expected vs. Guidance -11.7% Comps 15% eCommerce Order Growth THIRD QUARTER HIGHLIGHTS 1 Adjusted Operating E
Slide 7: Q3 2022 Comp Sales by Category
Q3 | 2022 | 7 Q3 2022 COMP SALES BY CATEGORY Comparable Sales Included Strong Growth in Seasonal Furniture Soft Home Hard Home Consumables The Lot, Apparel, Electronics Food Seasonal Total -26% -15% -12% -5% -4% 1% 7% -12%
Slide 8: Inventory Reduction Efforts on Track
Q3 | 2022 | 8 INVENTORY REDUCTION EFFORTS ON TRACK (1) 2022 Q4 is an estimate 48.5% 22.8% 5.3% -10.7% Q1 Q2 Q3 Q4E 2022 YOY Inventory Growth(1)
Slide 9: Adjusted Q3 2022 Summary Income Statement
Q3 | 2022 | 9 Net Sales Gross Margin Gross Margin Rate Adjusted Operating Expenses(1)(2) Adjusted Operating Expense Rate(2) Adjusted Operating (Loss) Profit(2) Adjusted Operating (Loss) Profit Rate(2) Adjusted Diluted (Loss) Earnings Per Share(2) Diluted Weighted Average Shares ADJUSTED Q3 2022 SUMM
Slide 10: Adjusted Year-to-Date 2022 Summary Income Statement
Q3 | 2022 | 10 Net Sales Gross Margin Gross Margin Rate Adjusted Operating Expenses(1)(2) Adjusted Operating Expense Rate(2) Adjusted Operating (Loss) Profit(2) Adjusted Operating (Loss) Profit Rate(2) Adjusted Diluted (Loss) Earnings Per Share(2) Diluted Weighted Average Shares ADJUSTED YEAR-TO-DAT
Slide 11: Capital Allocation
Q3 | 2022 | 11 $170M Annual CAPEX CAPITAL ALLOCATION $0.30 Quarterly Dividend(1) $900M New ABL Credit Facility vs. $160M previously Approximate 5.9% yield (as of October 29, 2022) Available liquidity of approximately $360M (1)The payment of future dividends will be at the discretion of our Board of
Slide 12: Third Quarter Results, Outlook, Wrap-Up, Appendix
Q3 | 2022 | 12 THIRD QUARTER RESULTS OUTLOOK WRAP-UP APPENDIX
Slide 13: Q4 2022 Outlook
Q3 | 2022 | 13 COMP SALES GROSS MARGIN IMPROVEMENT SG&A COST REDUCTION Down low-double-digits Sequential improvement vs. Q3, but remaining in the mid-30s range; includes markdowns related to accelerated store closures and inventory clean-up efforts ~$70 million in structural savings for the full yea
Slide 14: Key Actions
Q3 | 2022 | 14 KEY ACTIONS • Own bargains and treasures, achieving two-thirds penetration by the end of 2023 • Communicate unmistakable value to customers • Continue to focus on rural and small-town markets where we know we outperform, while taking a prudent near-term approach to store openings • Wi
Slide 15: Third Quarter Results, Outlook, Wrap-Up, Appendix
Q3 | 2022 | 15 THIRD QUARTER RESULTS OUTLOOK WRAP-UP APPENDIX
Slide 16: Q3 Wrap-Up
Q3 | 2022 | 16 Q3 WRAP-UP • Comparable sales decline of 11.7% in Q3, in line with guidance • Q3 adjusted EPS loss of $2.99 due to year-over-year sales decline and continued cost pressures • Comps down in the low-double-digit range in Q4; focused on unlocking additional sales opportunities (i.e. bett
Slide 17: Appendix
Q3 | 2022 | 17 SECOND QUARTER RESULTS OUTLOOK WRAP-UP APPENDIX
Slide 18: Third Quarter 2022 GAAP to Non-GAAP Reconciliation
Q3 | 2022 | 18 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 rate, adjusted
Slide 19: Year to Date 2022 GAAP to Non-GAAP Reconciliation
Q3 | 2022 | 19 YEAR TO DATE 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, adjusted