Upcoming AWS Coverage on Ollie's Bargain Outlet Holdings Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 20, 2017 / Active Wall St. announces its post-earnings coverage on Big Lots, Inc. (NYSE: BIG). The Company reported its fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on March 03, 2017. The discount retailer topped earnings estimates for the fifth consecutive quarter. Register with us now for your free membership at:

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One of Big Lots' competitors within the Discount, Variety Stores space, Ollie's Bargain Outlet Holdings, Inc. (NASDAQ: OLLI), is estimated to report earnings on April 05, 2017. AWS will be initiating a research report on Ollie's Bargain Outlet in the coming days.

Today, AWS is promoting its earnings coverage on BIG; touching on OLLI. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the three months ended January 28, 2017, Big Lots' net sales fell 0.3% to $1.58 billion as a result of the comparable store sales increase, which was offset by a lower store count y-o-y. The Company's revenue numbers lagged behind analysts' consensus for sales of $1.59 billion. Big Lots' comparable store sales increased 0.3, the twelfth consecutive quarter of flat or positive results and compared to Big Lots' guidance of flat to an increase of 2%. Big Lots' comparable store sales increased 0.9% for FY16, while net sales increased 0.2% to $5.20 billion.

For Q4 FY16, Big Lots reported income from continuing operations of $90.1 million, or $1.99 per diluted share. This result includes an after tax expense of $14.3 million, or $0.32 per diluted share, associated with legacy pension plans which have been terminated with final pay-outs occurring in the reported quarter. It also includes an after tax benefit of $2.4 million, or $0.05 per diluted share, associated with the gain on sale of real estate. Excluding these items, the Company's adjusted income from continuing operations totaled $102.0 million, or $2.26 per diluted share, for Q4 2016 compared to adjusted income from continuing operations of $99.7 million, or $2.01 per diluted share, in Q4 2015. The results exceeded Big Lots previously announced guidance of adjusted income of $2.18 to $2.23 per diluted share and also market estimates for earnings of $2.23 per share. For FY16, Big Lots reported adjusted income from continuing operations of $167.2 million, or $3.64 per diluted share, a 21% increase compared to FY15 adjusted income from continuing operations of $153.5 million, or $3.01 per diluted share.

Inventory and Cash Management

Big Lots' inventory ended FY16 was $859 million, a 1% increase compared to $850 million for FY15. Inventory levels per store increased 2% compared to last year, which was partially offset by a lower store count year-over-year. The Company ended FY16 with $51 million of cash and cash equivalents and $106 million of borrowings under its credit facility compared to $54 million of cash and cash equivalents and $62 million of borrowings under the Company's credit facility as of the end of FY15. Cash flow of $227 million exceeded previous guidance of $195 million.

Cash Returned To Shareholders

For FY16, Big Lots returned $288 million of cash to shareholders in the form of quarterly dividend payments totaling $38 million and share repurchases totaling $250 million.

On February 28, 2017, Big Lots' Board of Directors approved a share repurchase program providing for the repurchase of up to $150 million of our common shares. The $150 million authorization is expected to be utilized to repurchase shares in the open market and/or in privately negotiated transactions at our discretion, subject to market conditions and other factors. The 2017 Share Repurchase Program begun on March 07, 2017, and will continue until exhausted.

Big Lot announced in a separate press release on February 28, 2017, that its Board of Directors increased the Company's quarterly dividend payment rate approximately 19% by declaring a quarterly cash dividend for Q1 FY17 of $0.25 per common share. This dividend is payable on March 31, 2017, to shareholders of record as of close of business on March 17, 2017.

Fiscal 2017 Guidance

Big Lots is forecasting FY17 income to be in the range of $3.95 to $4.10 per diluted share representing a 9% to 13% increase compared to FY16 adjusted income of $3.64 per diluted share. This guidance is based on a comparable store sales increase in the 1% to 2% range and total sales flat to up slightly. The Company estimates this financial performance will result in cash flow of approximately $180 million to $190 million.

For Q1 FY17, Big Lots estimates income in the range of $0.95 to $1.05 per diluted share representing a 16% to 28% increase compared to last year's adjusted income of $0.82 per diluted share. This guidance assumes comparable store sales in the range of flat to a growth of 2%.

Stock Performance

At the closing bell, on Friday, March 17, 2017, Big Lots' stock marginally climbed 0.06%, ending the trading session at $50.01. A total volume of 1.09 million shares were traded at the end of the day. In the last six months and previous twelve months, shares of the Company have advanced 5.35% and 13.65%, respectively. Moreover, the stock gained 0.12% since the start of the year. The Company's shares are trading at a PE ratio of 15.06 and have a dividend yield of 2.00%.

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SOURCE: Active Wall Street