COLUMBUS, Ohio, May 29, 2015 /PRNewswire/ -- Big Lots, Inc. (NYSE: BIG) today reported income from continuing operations of $32.3 million, or $0.60 per diluted share, for the first quarter of fiscal 2015 ended May 2, 2015. This result compares to our guidance of income in the range of $0.55 to $0.60 per diluted share and to income from continuing operations of $28.6 million, or $0.50 per diluted share, for the first quarter of fiscal 2014. Comparable store sales for stores open at least fifteen months increased 1.6% for the quarter, compared to our guidance of +1% to +2%. Net sales for the first quarter of fiscal 2015 decreased 0.1% to $1,280.5 million, as our comparable store sales increase was offset by a slightly lower store count compared to last year.

Commenting on today's release, David Campisi, Chief Executive Officer and President of Big Lots, stated, "I'm pleased with our first quarter sales results. After a difficult start to the quarter and harsh weather conditions in February, sales trends improved in March and April. Our comps for Q1 were solidly in line with our guidance, and increased for a 5(th) consecutive quarter. Jennifer continues to respond positively to our strategic merchandising changes and improved assortments focused on quality, brands, fashion, and value."

FIRST QUARTER HIGHLIGHTS


    --  Income from continuing operations of $0.60 per diluted share, compared
        to income from continuing operations of $0.50 per diluted share last
        year
    --  Comparable store sales increase of 1.6%


                            Earnings per Share
                            ------------------


                                               Q1 2015       Q1 2014
                                               -------       -------


    Continuing operations                              $0.60           $0.50


    Discontinued operations                                -        ($0.44)

Inventory and Cash Management

Inventory ended the first quarter of fiscal 2015 at $835 million, compared to $835 million for the first quarter of fiscal 2014. Inventory per store increased slightly compared to last year, offset by a lower store count year over year.

We ended the first quarter of fiscal 2015 with $67 million of Cash and Cash Equivalents and $41 million of borrowings under our credit facility compared to $67 million of Cash and Cash Equivalents and $54 million of borrowings under our credit facility as of the end of the first quarter of fiscal 2014. Cash flow generated by our continuing operations (defined as cash provided by operating activities less cash used in investing activities) was focused on returning cash to our shareholders (stock repurchases and dividend payments) and lowering our overall debt levels.

As part of our ongoing focus on capital structure, we have extended our current $700 million five year unsecured credit facility. The strength of our credit profile, operations, balance sheet and cash flow generation enabled us to work collaboratively with our existing banking group to extend the term of our current credit facility by nearly two years. The credit facility now covers a new five year period (expiration May 2020), provides us lower rates and fees, and maintains a similar structure and financial covenants as our previous facility.

Total Cash Returned To Shareholders

As a reminder, on March 4, 2015, our Board of Directors approved a share repurchase program ("2015 Share Repurchase Program") providing for the repurchase of up to $200 million of our common shares. Through the first quarter of fiscal 2015, we invested $35 million to purchase 0.8 million shares, leaving us with approximately $165 million of authorization remaining at the end of the first quarter. Common shares acquired through the 2015 Share Repurchase Program will be available to meet obligations under our equity compensation plans and for general corporate purposes. The combination of this share repurchase activity and our quarterly dividend payment represents approximately $45 million returned to shareholders during the first fiscal quarter of 2015.

As announced in a separate press release earlier today, on May 28, 2015, our Board of Directors declared a quarterly cash dividend of $0.19 per common share. This dividend payment of approximately $10 million is payable on June 26, 2015, to shareholders of record as of the close of business on June 12, 2015.

FISCAL Q2 2015 GUIDANCE


    --  Provides initial Q2 guidance for income from continuing operations of
        $0.31 to $0.35 per diluted share, compared to income from continuing
        operations of $0.31 per diluted share for the same period last year
    --  Provides initial Q2 guidance for comparable store sales increase in the
        range of 2% to 3%.

For the second quarter of fiscal 2015, we estimate income from continuing operations will be in the range of $0.31 to $0.35 per diluted share, compared to income from continuing operations of $0.31 per diluted share for the second quarter of fiscal 2014. This guidance is based on an estimated comparable store sales increase in the 2% to 3% range compared to a 1.7% comparable store sales increase in Q2 of fiscal 2014.

FISCAL 2015 GUIDANCE


    --  Updates guidance for fiscal 2015 income from continuing operations to be
        in the range of $2.80 to $2.90 per diluted share, representing a 14% to
        18% increase compared to fiscal 2014 income from continuing operations
        of $2.46 per diluted share
    --  Affirms guidance for fiscal 2015 comparable store sales in the range of
        a low single digit increase
    --  Affirms guidance for fiscal 2015 cash flow of $175 million

Based on the actual results for the first quarter and the guidance provided for the second quarter, we are updating our guidance for the full year of fiscal 2015. We estimate fiscal 2015 income from continuing operations will be in the range of $2.80 to $2.90 per diluted share compared to prior guidance of $2.75 to $2.90 per diluted share. This compares to income from continuing operations of $2.46 per diluted share for fiscal 2014. This outlook is based on a comparable store sales increase in the low single digit range and total sales approximately flat. We estimate this financial performance will result in cash flow of approximately $175 million.



                       Q2             Full Year
                       ---            ---------


                  2015 Guidance                 2014 2015 Guidance          2014
                  -------------                 ---- -------------          ----


    EPS
     from
     continuing
     operations       $0.31  -  $0.35          $0.31     $2.80  -  $2.90   $2.46


    EPS
     from
     discontinued
     operations    Immaterial                  $0.05  Immaterial         ($0.40)

Conference Call/Webcast

We will host a conference call today at 8:00 a.m. to discuss our financial results for the first quarter and provide commentary on our outlook for fiscal 2015. We invite you to listen to the webcast of the conference call through the Investor Relations section of our website http://www.biglots.com.

If you are unable to join the live webcast, an archive of the call will be available through the Investor Relations section of our website http://www.biglots.com/ after 12:00 noon today and will remain available through midnight on Friday, June 12, 2015. A replay of this call will also be available beginning today at 12:00 noon through June 12 by dialing 1.888.203.1112 (Toll Free USA and Canada) or 1.719.457.0820 (International), and entering Replay Passcode 9903591. All times are Eastern Time.

Headquartered in Columbus, Ohio, Big Lots, Inc. (NYSE: BIG) is a unique, non-traditional, discount retailer operating 1,461 BIG LOTS stores in 48 states with product assortments in the merchandise categories of Food, Consumables, Furniture, Seasonal, Soft Home, Hard Home, and Electronics & Accessories. Our vision is to be recognized for providing an outstanding shopping experience for our customers, valuing and developing our associates, and creating growth for our shareholders. Big Lots supports the communities it serves through the Big Lots Foundation, a charitable organization focused on four areas of need: hunger, housing, healthcare, and education. For more information about the Company, visit www.biglots.com.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements in this release 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 words "anticipate," "estimate," "expect," "objective," "goal," "project," "intend," "plan," "believe," "will," "should," "may," "target," "forecast," "guidance," "outlook" and similar expressions generally identify forward-looking statements. Similarly, descriptions of our objectives, strategies, plans, goals or targets are also forward-looking statements. Forward-looking statements relate to the expectations of management as to future occurrences and trends, including statements expressing optimism or pessimism about future operating results or events and projected sales, earnings, capital expenditures and business strategy. Forward-looking statements are based upon a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Forward-looking statements are and will be based upon management's then-current views and assumptions regarding future events and operating performance, and are applicable only as of the dates of such statements. Although we believe the expectations expressed in forward-looking statements are based on reasonable assumptions within the bounds of our knowledge, forward-looking statements, by their nature, involve risks, uncertainties and other factors, any one or a combination of which could materially affect our business, financial condition, results of operations or liquidity.

Forward-looking statements that we make herein and in other reports and releases are not guarantees of future performance and actual results may differ materially from those discussed in such forward-looking statements as a result of various factors, including, but not limited to, current economic and credit conditions, the cost of goods, our inability to successfully execute strategic initiatives, competitive pressures, economic pressures on our customers and us, the availability of brand name closeout merchandise, trade restrictions, freight costs, the risks discussed in the Risk Factors section of our most recent Annual Report on Form 10-K, and other factors discussed from time to time in our other filings with the SEC, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. This release should be read in conjunction with such filings, and you should consider all of these risks, uncertainties and other factors carefully in evaluating forward-looking statements.

You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and SEC filings.



                                                         BIG LOTS, INC. AND SUBSIDIARIES

                                                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                                                 (In thousands)


                                                                            MAY 2                   MAY 3

                                                                                         2015                     2014
                                                                                      ----                     ----

                                                                      (Unaudited)             (Unaudited)


                                ASSETS


    Current assets:

              Cash and cash equivalents                                              $67,191                  $67,161

              Inventories                                                            835,378                  834,575

              Deferred income taxes                                                   42,026                   71,145

              Other current assets                                                    76,924                   76,212

                 Total current assets                                              1,021,519                1,049,093



    Property and equipment - net                                                  566,939                  557,675


    Deferred income taxes                                                          15,106                   10,667

    Other assets                                                                   45,248                   41,627

                                                                                $1,648,812               $1,659,062
                                                                                ==========               ==========



                 LIABILITIES AND SHAREHOLDERS' EQUITY


    Current liabilities:

              Accounts payable                                                      $368,094                 $347,711

              Property, payroll and other taxes                                       77,177                   79,210

              Accrued operating expenses                                              81,755                   76,677

              Insurance reserves                                                      39,918                   38,100

              Accrued salaries and wages                                              26,443                   27,382

              Income taxes payable                                                    18,926                   21,173

                 Total current liabilities                                           612,313                  590,253



    Long-term obligations under bank credit
     facility                                                                      40,500                   53,600


    Deferred rent                                                                  65,871                   73,670

    Insurance reserves                                                             56,675                   56,402

    Unrecognized tax benefits                                                      17,796                   17,886

    Other liabilities                                                              61,571                   30,709


    Shareholders' equity                                                          794,086                  836,542

                                                                                $1,648,812               $1,659,062
                                                                                ==========               ==========



                                                                                   BIG LOTS, INC. AND SUBSIDIARIES

                                                                           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                                (In thousands, except per share data)


                                                                                                                                                 13 WEEKS ENDED           13 WEEKS ENDED
                                                                                                                                                 --------------           --------------

                                                                                                                                                MAY 2, 2015           MAY 3, 2014

                                                                                                                                                    %                       %
                                                                                                                                                   ---                     ---

                                                                                                                                                (Unaudited)           (Unaudited)



    Net sales                                                                                                                                $1,280,455      100.0     $1,281,271      100.0
                                                                                                                                             ----------      -----     ----------      -----


                                                  Gross margin                                                                                     504,116       39.4        493,556       38.5


                                                  Selling and administrative expenses                                                              420,246       32.8        417,546       32.6


                                                  Depreciation expense                                                                              31,225        2.4         28,825        2.2
                                                                                                                                                               ---                      ---


    Operating profit                                                                                                                             52,645        4.1         47,185        3.7


                                                  Interest expense                                                                                   (496)     (0.0)         (350)     (0.0)


                                                  Other income (expense)                                                                                28        0.0              0        0.0
                                                                                                                                                               ---                      ---


    Income from continuing operations before income taxes                                                                                        52,177        4.1         46,835        3.7


                                                  Income tax expense                                                                                19,869        1.6         18,254        1.4
                                                                                                                                                               ---                      ---


    Income from continuing operations                                                                                                            32,308        2.5         28,581        2.2


                                                  Loss from discontinued operations, net of tax

                                                     benefit of $60 and $8,955, respectively                                                          (95)     (0.0)      (25,233)     (2.0)
                                                                                                                                                               ---                    -----


    Net income                                                                                                                                  $32,213        2.5         $3,348        0.3
                                                                                                                                                =======        ===         ======        ===



    Earnings per common share - basic (a)


                                                  Continuing operations                                                                              $0.61                    $0.50


                                                  Discontinued operations                                                                             0.00                   (0.44)


                                                  Net income                                                                                         $0.61                    $0.06




    Earnings per common share - diluted (a)


                                                  Continuing operations                                                                              $0.60                    $0.50


                                                  Discontinued operations                                                                             0.00                   (0.44)


                                                  Net income                                                                                         $0.60                    $0.06




    Weighted average common shares outstanding


                                                  Basic                                                                                             53,087                   57,010


                                                  Dilutive effect of share-based awards                                                                570                      526


                                                  Diluted                                                                                           53,657                   57,536



    Cash dividends declared per common share                                                                                           $0.19                    $0.00
                                                                                                                                       =====                    =====


    (a)                                            The earnings per share for Continuing Operations, Discontinued Operations and Net
                                                   Income are separately calculated in accordance with accounting pronouncements;
                                                   therefore, the sum of earnings per share for Continuing Operations and Discontinued
                                                   Operations may differ, due to rounding, from the calculated earnings per share of
                                                   Net Income.



                                                                           BIG LOTS, INC. AND SUBSIDIARIES

                                                                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                                   (In thousands)


                                                                                                                   13 WEEKS ENDED           13 WEEKS ENDED
                                                                                                                   --------------           --------------

                                                                                                                     MAY 2, 2015              MAY 3, 2014
                                                                                                                     -----------              -----------

                                                                                                                     (Unaudited)              (Unaudited)

                         Net cash provided by operating activities                                                                  $87,525                  $102,166


                         Net cash used in investing activities                                                                     (28,752)                 (15,484)


                         Net cash used in financing activities                                                                     (43,843)                 (93,408)


                           Impact of foreign currency on cash                                                                             -                    5,258



    Increase (decrease) in cash and cash equivalents                                                                              14,930                   (1,468)

                       Cash and cash equivalents:

                         Beginning of period                                                                                         52,261                    68,629

                         End of period                                                                                              $67,191                   $67,161

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SOURCE Big Lots, Inc.