Big Lots(BIG)2024-03-11 16:00Sales Performance - Q4 2023 net sales totaled $1.432 billion, a 7.2% decrease compared to $1.543 billion in Q4 2022, driven by an 8.6% decrease in comparable sales[3] - Net sales for the 14 weeks ended February 3, 2024 were $1,432,484 million, a decrease from $1,543,113 million in the 13 weeks ended January 28, 2023[43] - The company expects Q1 2024 comp sales to improve to mid-single-digit negative range, with gross margin rate improving by 200-250 basis points compared to the prior year[14] Inventory Management - Inventory at the end of Q4 2023 was $953.3 million, a 17.0% decrease from $1.148 billion in Q4 2022, due to lower on-hand and in-transit inventory[5] - The company reduced inventory by nearly $200 million and monetized assets worth over $300 million in 2023[24] Operating Performance - Q4 2023 GAAP operating loss was $24 million, with adjusted operating profit of $1 million, marking the first quarter of positive adjusted operating profit since Q4 2021[27] - Full Year 2022 operating loss was $261,500 million, with an adjusted (non-GAAP) figure of $209,951 million[35] - Q4 2022 operating loss was $8,055 million, with an adjusted (non-GAAP) figure of $2,334 million[38] - The adjusted operating profit for Q4 2023 was $1.06 million, compared to a reported operating loss of $23.77 million, after adjustments for gains on real estate sales and other expenses[51] - The full-year 2023 adjusted operating loss was $342.69 million, compared to a reported operating loss of $387.36 million, after adjustments for gains on real estate sales and other expenses[52] Net Loss and Earnings Per Share - Q4 2023 GAAP EPS loss was $1.05, with adjusted EPS loss of $0.28[27] - Full Year 2022 net loss was $210,708 million, with an adjusted (non-GAAP) figure of $171,858 million[35] - Q4 2022 net loss was $12,463 million, with an adjusted (non-GAAP) figure of $8,110 million[38] - Net loss for the 14 weeks ended February 3, 2024 was $30,709 million, compared to $12,463 million in the 13 weeks ended January 28, 2023[43] - Adjusted net loss for Q4 2023 was $8.28 million, compared to a reported net loss of $30.71 million, after adjustments for various costs and gains[51] - Full-year 2023 adjusted net loss was $329.31 million, compared to a reported net loss of $481.88 million, after adjustments for various costs and gains[52] - Adjusted diluted earnings per share for Q4 2023 were -$0.28, compared to a reported -$1.05, after adjustments for various costs and gains[51] - Full-year 2023 adjusted diluted earnings per share were -$11.30, compared to a reported -$16.53, after adjustments for various costs and gains[52] Bargain Penetration and Project Springboard - The company achieved over 60% bargain penetration in Q4 2023, exceeding the initial goal of 33%, and expects to grow to 75% penetration in 2024[27] - Project Springboard is on track to deliver a high proportion of the $200 million+ benefit in 2024[27] - The company expects to realize most of the $200 million+ bottom-line opportunities through Project Springboard in 2024[29] Liquidity and Cash Flow - Net liquidity at the end of Q4 2023 was $254 million, with significant free cash flow generated in the quarter[24] - The company ended Q4 fiscal 2023 with $46.4 million in Cash and Cash Equivalents and $406.3 million in Long-term Debt, compared to $44.7 million and $301.4 million respectively in Q4 fiscal 2022[36] - Net cash used in operating activities for the 53 weeks ended February 3, 2024 was $251,960 million, compared to $144,286 million in the 52 weeks ended January 28, 2023[49] Selling and Administrative Expenses - Full Year 2022 selling and administrative expenses were $2,040,334 million, with an adjusted (non-GAAP) figure of $1,971,938 million after excluding store asset impairment and gain on sale of real estate[35] - Q4 2022 selling and administrative expenses were $544,486 million, with an adjusted (non-GAAP) figure of $521,918 million[38] - Adjusted selling and administrative expenses for Q4 2023 were $509.86 million, down from $535.25 million as reported, after excluding various costs such as FDC contract termination and asset impairment charges[51] - Full-year 2023 adjusted selling and administrative expenses were $1.89 billion, down from $2.14 billion as reported, after excluding synthetic lease exit costs and other adjustments[52] Tax Rates - The adjusted effective income tax rate for Q4 2023 was 15.3%, compared to a reported rate of 11.3%, after adjustments for tax-related items[51] - Full-year 2023 adjusted effective income tax rate was 15.0%, compared to a reported rate of -11.5%, after adjustments for tax-related items[52]