8-K 1 big-8xkxearningsreleasexq1.htm 8-K Document


 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): May 29, 2019


BIG LOTS, INC.
(Exact name of registrant as specified in its charter)

 
 
 
Ohio
1-8897
06-1119097
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
 
 
 

4900 E. Dublin-Granville Road, Columbus, Ohio 43081
(Address of principal executive offices) (Zip Code)

(614) 278-6800
(Registrant's telephone number, including area code)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on which registered
Common shares
BIG
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).
Emerging growth company     o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 





Item 2.02    Results of Operations and Financial Condition.

On May 31, 2019, Big Lots, Inc. (“we,” “us” or “our”) issued a press release (the “Earnings Press Release”) and conducted a conference call, both of which: (i) reported our first quarter fiscal 2019 unaudited results; (ii) provided an update on the status of our previously announced $50 million share repurchase program; (iii) provided initial guidance for the second quarter of fiscal 2019; and (iv) updated guidance for fiscal 2019.

The Earnings Press Release and conference call both included “non-GAAP financial measures,” as that term is defined by Rule 101 of Regulation G (17 CFR Part 244) and Item 10 of Regulation S-K (17 CFR Part 229). Specifically, the following non-GAAP financial measures were included: (i) adjusted gross margin; (ii) adjusted gross margin rate; (iii) adjusted selling and administrative expenses; (iv) adjusted selling and administrative expense rate; (v) adjusted operating profit; (vi) adjusted operating profit rate; (vii) adjusted income tax expense; (viii) adjusted effective income tax rate; (ix) adjusted net income; (x) adjusted diluted earnings per share; and (xi) adjusted cash flow.

The non-GAAP financial measures exclude from the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) the following items for the periods noted:
Item
Fiscal 2019 First Quarter
Fiscal 2018 First Quarter
Fiscal 2018
Full Year
Fiscal 2019 Full Year (1)
After-tax adjustment for cost of inventory impairment as a result of a merchandise department exit of $4.5 million, or $0.11 per diluted share
X
 
 
 
After-tax adjustment for cost of transformational restructuring initiatives of $11.4 million, or $0.28 per diluted share
X
 
 
 
After-tax adjustment for loss contingencies recorded for estimated legal settlements of $5.6 million, or $0.14 per diluted share
X
 
 
 
After-tax adjustment for costs associated with the retirement of our former chief executive officer of $6.1 million, or $0.15 per diluted share
 
X
X
 
After-tax adjustment related to the settlement in principle of our shareholder litigation matter of $2.6 million, or $0.06 per diluted share
 
X
X
 
After-tax adjustments totaling approximately $0.85 per diluted share, or approximately $35 million, which relate to transformational restructuring initiatives, a merchandise department exit, and loss contingencies for estimated legal settlements
 
 
 
X
(1) The Fiscal 2019 Full Year amounts include estimates for prospective periods and those amounts may differ from our actual results.
The Earnings Press Release posted in the Investor Relations section of our website contains a presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and a reconciliation of the difference between the non-GAAP financial measures and the most directly comparable financial measures calculated and presented in accordance with GAAP.
Our management believes that disclosure of the non-GAAP financial measures provides useful information to investors because the non-GAAP financial measures present an alternative and more relevant method for measuring our operating performance, excluding special items included in the most directly comparable GAAP financial measures, which our management believes are more indicative of our ongoing operating results and financial condition. These non-GAAP financial measures, along with the most directly comparable GAAP financial measures, are used by our management to evaluate our operating performance.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in accordance with GAAP. Non-GAAP financial measures as reported by us may not be comparable to similarly titled items reported by other companies.
Attached as exhibits to this Form 8-K are copies of our May 31, 2019 press release (Exhibit 99.1) and the transcript of our May 31, 2019 conference call (Exhibit 99.2), including information concerning forward-looking statements and factors that may affect our future results. The information in Exhibits 99.1 and 99.2 is being furnished, not filed, pursuant to Item 2.02 of this Form 8-K. By furnishing the information in this Form 8-K and the attached exhibits, we are making no admission as to the materiality of any information in this Form 8-K or the exhibits.








Item 5.07    Submission of Matters to a Vote of Security Holders.

At our Annual Meeting of Shareholders held on May 30, 2019 (“Annual Meeting”), our shareholders voted on the following proposals, with 2,761,280 broker non-votes for Proposal One and Proposal Two and the remaining votes cast as follows:

•
Proposal One. To elect nine directors to our Board of Directors:
Director
 
For
 
Withheld
Jeffrey P. Berger
 
31,571,525
 
768,915
James R. Chambers
 
31,867,146
 
473,294
Sebastian J. DiGrande
 
32,005,229
 
335,211
Marla C. Gottschalk
 
31,914,210
 
426,230
Cynthia T. Jamison
 
31,457,899
 
882,541
Christopher J. McCormick
 
31,893,415
 
447,025
Nancy A. Reardon
 
31,679,722
 
660,718
Wendy L. Schoppert
 
31,877,842
 
462,598
Bruce K. Thorn
 
32,002,267
 
338,173

•
Proposal Two. To approve, on an advisory basis, the compensation of our named executive officers, as disclosed in our 2019 Proxy Statement:
For
30,399,893

Against
1,872,967

Abstain
67,580


•
Proposal Three. To ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for fiscal 2019:
For
33,960,244

Against
953,211

Abstain
188,265


No other matters were submitted to a vote of our shareholders at the Annual Meeting.

Item 8.01    Other Events.

On May 31, 2019, the Company issued a press release announcing that, on May 29, 2019, its Board of Directors declared a quarterly cash dividend of $0.30 per common share payable on June 28, 2019 to shareholders of record as of the close of business on June 14, 2019. This press release is filed herewith as Exhibit 99.3 hereto and incorporated by reference herein.

Item 9.01    Financial Statements and Exhibits.
 
(d)
Exhibits
 
 
 
 
 
 
 
 
 
 
 
Exhibit No.
 
Description
 
 
 
 
 
 
 
 
 
 
Big Lots, Inc. press release on operating results and guidance dated May 31, 2019.
 
 
 
 
 
 
 
 
 
Big Lots, Inc. conference call transcript dated May 31, 2019.
 
 
 
 
 
 
 
 
 
Big Lots, Inc. press release on dividend declaration dated May 31, 2019.
 
 
 
 
 
 






Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
BIG LOTS, INC.
 
 
 
 
Date: June 3, 2019
By:
/s/ Ronald A. Robins, Jr.
 
 
 
Ronald A. Robins, Jr.
 
 
 
Senior Vice President, General Counsel
and Corporate Secretary