Ollie's Bargain Outlet (OLLI) - 2020 Q4 - Annual Report

Financial Performance - Net sales for the fiscal year ended February 1, 2020, were $1,408.2 million, an increase of 13.5% from $1,241.4 million in the previous year[287] - Gross profit for the fiscal year ended February 1, 2020, was $555.6 million, representing a gross margin of 39.4% compared to 40.1% in the prior year[287] - Operating income increased to $171.9 million for the fiscal year ended February 1, 2020, up from $162.1 million in the previous year, reflecting a growth of 5.4%[287] - Net income for the fiscal year ended February 1, 2020, was $141.1 million, a rise of 4.1% from $135.0 million in the prior year[287] - Basic earnings per share for the fiscal year ended February 1, 2020, were $2.23, compared to $2.16 in the previous year, marking a 3.2% increase[287] - Net income for the fiscal year ended February 1, 2020, was $141,130,000, compared to $135,013,000 in 2019, reflecting a year-over-year increase of 4.1%[295] - Diluted earnings per common share rose to $2.14 in 2020 compared to $2.05 in 2019, marking an increase of 4.4%[332] Assets and Liabilities - Total assets increased to $1,596,247,000 as of February 1, 2020, up from $1,159,003,000 in 2019, representing a growth of 37.8%[290] - Total current liabilities increased to $177,685,000 in 2020, compared to $150,996,000 in 2019, marking a rise of 17.7%[290] - Stockholders' equity reached $1,058,885,000 in 2020, an increase from $942,652,000 in 2019, representing a growth of 12.3%[290] - The company’s long-term debt increased to $527,000 in 2020 from $441,000 in 2019, a rise of 19.5%[290] - Total lease obligations as of February 1, 2020, amounted to $353.29 million, with long-term lease obligations of $299.74 million[346] Inventory and Sales - As of February 1, 2020, the company's inventory balance was $335.2 million, which is critical for managing excess inventory[278] - The company reported a cost of sales of $852.6 million for the fiscal year ended February 1, 2020, which is 60.5% of net sales[287] - Inventories increased to $335,181,000 in 2020, up from $296,407,000 in 2019, indicating a growth of 13.1%[290] - The percentage of net sales by merchandise category for Housewares was 15.0% in 2020, compared to 15.1% in 2019 and 13.7% in 2018[383] Cash Flow and Expenditures - Cash and cash equivalents rose to $89,950,000 in 2020, a significant increase of 73% from $51,941,000 in 2019[290] - The company reported a net cash provided by operating activities of $105,344,000 for the fiscal year 2020, down from $126,079,000 in 2019, a decrease of 16.5%[295] - The company incurred capital expenditures of $76,979,000 in 2020, compared to $74,178,000 in 2019, reflecting a slight increase of 3.8%[295] - Cash paid for operating leases amounted to $66.7 million for the fiscal year ended February 1, 2020[347] Risks and Compliance - The company faced risks including intense competition and changes in consumer confidence, which could impact future performance[16] - The company was in compliance with all terms of its credit facility agreements during the fiscal year ended February 1, 2020[398] - The company has restrictions on dividend payments due to the provisions of the Credit Facility, which may affect future cash distributions to shareholders[399] Operational Overview - The company operates 344 stores and two distribution centers, indicating a significant scale of operations[281] - The company operated 345 retail locations across 25 states as of February 1, 2020, expanding its footprint in the U.S. market[297] - The Company operates under a single operating segment for reporting purposes[382] Accounting and Reporting - The consolidated financial statements include the accounts of the Company and its subsidiaries, with intercompany transactions eliminated in consolidation[299] - The Company amortizes intangible assets over their useful lives unless deemed indefinite, with no impairment of goodwill reported for 2019, 2018, and 2017[310] - The effective income tax rate for the fiscal year ended February 1, 2020, was 18.3%, compared to 16.0% in 2019[361] - The Company maintained effective internal control over financial reporting as of February 1, 2020, as confirmed by an independent audit[410]