Ollie's Bargain Outlet (US:OLLI)2022-03-25 20:42Financial Performance - Net sales for the fiscal year ended January 29, 2022, were $1,752.995 million, a decrease of 3.1% compared to $1,808.821 million in the previous year[320] - Gross profit for the fiscal year ended January 29, 2022, was $681.246 million, down from $723.366 million in the prior year, reflecting a gross margin of approximately 38.8%[320] - Operating income decreased to $204.592 million for the fiscal year ended January 29, 2022, compared to $277.500 million in the previous year, representing a decline of 26.3%[320] - Net income for the fiscal year ended January 29, 2022, was $157.455 million, a decrease of 35.2% from $242.696 million in the prior year[320] - Basic earnings per share for the fiscal year ended January 29, 2022, were $2.44, down from $3.75 in the previous year, indicating a decline of 34.9%[320] Expenses and Liabilities - The company reported selling, general and administrative expenses of $447.615 million for the fiscal year ended January 29, 2022, an increase of 6.8% from $418.889 million in the previous year[320] - Total current liabilities decreased to $263,268 thousand in 2022 from $283,796 thousand in 2021, a reduction of about 7.3%[324] - Total liabilities increased slightly to $684,462 thousand in 2022 from $670,974 thousand in 2021, an increase of about 2.0%[324] - The total income tax expense for the fiscal year ended January 29, 2022, was $46.928 million, an increase from $35.082 million in 2021[396] - The effective income tax rate for the fiscal year ended January 29, 2022, was 23.0%, compared to 12.6% in 2021[398] Cash Flow and Assets - Cash and cash equivalents dropped significantly to $246,977 thousand in 2022 from $447,126 thousand in 2021, representing a decrease of about 44.7%[330] - Net cash provided by operating activities fell to $45,033 thousand in 2022 from $361,254 thousand in 2021, a decrease of approximately 87.5%[330] - Total assets decreased to $1,972,172 thousand in 2022 from $2,005,855 thousand in 2021, a decline of approximately 1.7%[324] Inventory and Merchandise - As of January 29, 2022, the company's inventory balance was $467.3 million, which is critical for evaluating excess inventories[315] - The percentage of net sales by merchandise category for 2022 shows Housewares at 14.9%, Bed and Bath at 10.7%, and Food at 10.3%[419] Share Repurchase and Equity - The Company has authorized a total of $400.0 million for share repurchases through January 13, 2023, with an additional $200.0 million authorized on November 30, 2021[415] - In 2021, the Company repurchased 3,113,981 shares of its common stock for $220.0 million, compared to 3,885 shares for $0.3 million in 2020[416] - The Company had $180.0 million remaining under its share repurchase authorization as of January 29, 2022[416] Operational Challenges - The company anticipates challenges related to consumer demand and competition, which could impact future performance[12] - The company experienced labor pressures and supply chain disruptions due to the ongoing impacts of COVID-19, affecting operations and customer demand[371] - The company has not experienced significant impacts from inflation on its historical results, but future inflation could materially affect operations[304] Other Financial Metrics - The company operated 431 retail locations across 29 states as of January 29, 2022, maintaining its market presence[333] - The company reported a depreciation and amortization expense of $24,894 thousand in 2022, up from $22,465 thousand in 2021, an increase of approximately 10.8%[330] - The intrinsic value of stock options exercised in 2021 was $17.0 million, compared to $145.3 million in 2020[405] - The total unrecognized compensation cost related to non-vested stock-based compensation arrangements as of January 29, 2022, was $17.0 million[411] Loyalty Programs and Customer Engagement - Revenue recognized from the Ollie's Army loyalty program was $15.621 million for the fiscal year ended January 29, 2022, compared to $17.954 million in the previous year[374] - The ending balance of the Ollie's Army loyalty program liability decreased to $7.782 million as of January 29, 2022, from $8.113 million in the prior year[374] - Gift card liabilities increased to $2.291 million as of January 29, 2022, from $1.902 million in the previous year, with gift card issuances totaling $5.433 million[375] Future Plans and Investments - The Company plans to expand its York, PA distribution center by 200,000 square feet, with a construction agreement totaling $12.3 million[426] - The investment in subsidiaries as of January 29, 2022, was $1,287.7 million, down from $1,334.9 million in 2021[429]