Boot barn holdings, inc. announces third quarter fiscal year 2021 financial results
Irvine, calif.--(business wire)--boot barn holdings, inc. (nyse: boot) today announced its financial results for the third fiscal quarter ended december 26, 2020. for the quarter ended december 26, 2020: net sales increased 6.5% to $302.3 million. same store sales increased 4.6%, comprised of an increase in retail store same store sales of 1.9% and an increase in e-commerce sales of 16.3%. net income was $29.6 million, or $1.00 per diluted share, compared to net income of $24.8 million, or $0.85 per diluted share in the prior-year period. net income per diluted share in the current-year period includes an approximately $0.01 per share benefit due to income tax accounting for share-based compensation compared to a $0.04 per share benefit in the prior-year period. excluding the tax benefit in both periods, net income per diluted share in the current-year period was $0.99, compared to $0.81 in the prior-year period. cash and cash equivalents were $76.3 million. jim conroy, chief executive officer, commented, “our strong third quarter results against a difficult economic backdrop demonstrate the power of our business model. the work we’ve done over the last several years successfully executing our key strategic initiatives has provided the foundation to navigate the ongoing headwinds from covid-19 and deliver mid-single digit same store sales growth and a 150-basis point improvement in operating margin. we are encouraged that same store sales have accelerated in the fourth quarter with continued strength in margin. while the near term is likely to remain volatile, we believe our merchandising strategies, omni-channel capabilities and organizational expertise, combined with the adjustments we’ve made to our operating model during the pandemic, have us well positioned to build on our recent accomplishments and head into fiscal 2022 with good momentum.” operating results for the third quarter ended december 26, 2020 net sales increased 6.5% to $302.3 million from $284.0 million in the prior-year period. consolidated same store sales increased 4.6% with retail store same store sales up 1.9% and e-commerce same store sales up 16.3%. the increase in net sales was the result of an increase of 4.6% in same store sales and the sales contribution from new and acquired stores over the past twelve months. gross profit was $106.8 million, or 35.3% of net sales, compared to $97.0 million, or 34.2% of net sales, in the prior-year period. gross profit increased primarily due to increased sales. the increase in gross profit rate of 120 basis points was driven by a 150-basis point increase in merchandise margin, partially offset by 30 basis points of deleverage in buying and occupancy costs. merchandise margin increased 150 basis points primarily as a result of better full-price selling and reduced promotions. selling, general and administrative expenses were $65.2 million, or 21.6% of net sales, compared to $62.1 million, or 21.9% of net sales, in the prior-year period. the increase in selling, general and administrative expenses was primarily a result of additional costs to support higher sales and expenses for both new and acquired stores. selling, general and administrative expenses as a percentage of net sales decreased by 30 basis points primarily as a result of expense leverage on higher sales. income from operations increased 19.0% to $41.6 million, or 13.8% of net sales, compared to $35.0 million, or 12.3% of net sales, in the prior-year period. this increase represents approximately 150 basis points of improvement in operating profit margin. net income was $29.6 million, or $1.00 per diluted share, compared to net income of $24.8 million, or $0.85 per diluted share in the prior-year period. net income per diluted share in the current-year period includes an approximately $0.01 per share benefit due to income tax accounting for share-based compensation compared to a $0.04 per share benefit in the prior-year period. excluding the tax benefit in both periods, net income per diluted share in the current-year period was $0.99, compared to $0.81 in the prior-year period. operating results for the nine months ended december 26, 2020 net sales decreased 3.4% to $634.6 million from $656.9 million in the prior-year period. consolidated same store sales decreased 3.2% with retail store same store sales down 8.9% and e-commerce same store sales up 24.9%. the decrease in retail store sales was primarily due to decreased traffic in our stores that resulted from customers staying at home in response to the covid-19 crisis and temporary store closures. gross profit was $202.5 million, or 31.9% of net sales, compared to $218.5 million, or 33.3% of net sales, in the prior-year period. gross profit decreased primarily due to decreased sales resulting from the covid-19 crisis. the decrease in gross profit rate was driven by 140 basis points of deleverage in buying and occupancy costs primarily as a result of lower sales. selling, general and administrative expenses were $149.0 million, or 23.5% of net sales, compared to $154.6 million, or 23.5% of net sales, in the prior-year period. the decrease in selling, general and administrative expenses was primarily a result of reduced marketing expenses and lower payroll. income from operations decreased 16.4% to $53.5 million, or 8.4% of net sales, compared to $64.0 million, or 9.7% of net sales, in the prior-year period. the decline in income from operations is primarily a result of the negative impact on sales and gross margin from decreased traffic in our stores that resulted from customers staying at home in response to the covid-19 crisis and temporary store closures. net income was $34.8 million, or $1.19 per diluted share, compared to net income of $42.2 million, or $1.45 per diluted share in the prior-year period. net income per diluted share in the current-year period includes an approximately $0.01 per share benefit due to income tax accounting for share-based compensation compared to a $0.07 per share benefit in the prior-year period. excluding the tax benefit in both periods, net income per diluted share in the current-year period was $1.18, compared to $1.38 in the prior-year period. current business the following table includes same store sales, net sales and e-commerce as a percentage of net sales for the periods indicated below: 0% 1% 3% 2% 20% 12% 20% 16% 16% 7% 2% 4% 6% 5% 17% 6% 8% 6% 6% 21% 16% 18% 23% 20% 16% fiscal year 2021 outlook due to the ongoing uncertainty created by covid-19, the company is not providing fourth quarter and fiscal year 2021 guidance at this time. conference call information a conference call to discuss the financial results for the third quarter of fiscal year 2021 is scheduled for today, january 25, 2021, at 4:30 p.m. et (1:30 p.m. pt). investors and analysts interested in participating in the call are invited to (877) 451-6152. the conference call will also be available to interested parties through a live webcast at investor.bootbarn.com. please visit the website and select the “events and presentations” link at least 15 minutes prior to the start of the call to register and download any necessary software. a telephone replay of the call will be available until february 25, 2021, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 13715296. please note participants must enter the conference identification number in order to access the replay. about boot barn boot barn is the nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children. the company offers its loyal customer base a wide selection of work and lifestyle brands. as of the date of this release, boot barn operates 265 stores in 36 states, in addition to an e-commerce channel www.bootbarn.com. the company also operates www.sheplers.com, the nation’s leading pure play online western and work retailer and www.countryoutfitter.com, an e-commerce site selling to customers who live a country lifestyle. for more information, call 888-boot-barn or visit www.bootbarn.com. forward looking statements this press release contains forward-looking statements that are subject to risks and uncertainties. all statements other than statements of historical fact included in this press release are forward-looking statements. forward-looking statements refer to our current expectations and projections relating to, by way of example and without limitation, our financial condition, liquidity, profitability, results of operations, margins, plans, objectives, strategies, future performance, business and industry. you can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. these statements may include words such as "anticipate", "estimate", "expect", "project", "plan“, "intend", "believe", “may”, “might”, “will”, “could”, “should”, “can have”, “likely”, “outlook” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. these forward-looking statements are based on assumptions that the company’s management has made in light of their industry experience and on their perceptions of historical trends, current conditions, expected future developments and other factors they believe are appropriate under the circumstances. as you consider this press release, you should understand that these statements are not guarantees of performance or results. they involve risks, uncertainties (some of which are beyond the company’s control) and assumptions. these risks, uncertainties and assumptions include, but are not limited to, the following: the effect of covid-19 on our business operations, growth strategies, store traffic, employee availability, financial condition, liquidity and cash flow; decreases in consumer spending due to declines in consumer confidence, local economic conditions or changes in consumer preferences; the company’s ability to effectively execute on its growth strategy; and the company’s failure to maintain and enhance its strong brand image, to compete effectively, to maintain good relationships with its key suppliers, and to improve and expand its exclusive product offerings. the company discusses the foregoing risks and other risks in greater detail under the heading “risk factors” in the periodic reports filed by the company with the securities and exchange commission. although the company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the company’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. because of these factors, the company cautions that you should not place undue reliance on any of these forward-looking statements. new risks and uncertainties arise from time to time, and it is impossible for the company to predict those events or how they may affect the company. further, any forward-looking statement speaks only as of the date on which it is made. except as required by law, the company does not intend to update or revise the forward-looking statements in this press release after the date of this press release. boot barn holdings, inc. consolidated balance sheets (in thousands, except per share data) (unaudited) 2020 2020 76,342 69,563 13,876 12,087 246,008 288,717 15,008 14,284 351,234 384,651 109,793 109,603 170,311 170,243 197,502 197,502 60,907 60,974 2,425 1,738 892,172 924,711 — 129,900 103,095 95,334 94,831 52,612 36,796 34,779 234,722 312,625 18,651 19,801 109,591 109,022 165,176 160,935 1,424 635 529,564 603,018 3 3 — — 175,865 169,249 188,475 153,641 (1,735) (1,200) 362,608 321,693 892,172 924,711 boot barn holdings, inc. consolidated statements of operations (in thousands, except per share data) (unaudited) 2020 2019 2020 2019 302,338 283,997 634,619 656,947 195,529 186,961 432,119 438,417 106,809 97,036 202,500 218,530 65,183 62,059 149,034 154,558 41,626 34,977 53,466 63,972 2,303 3,155 7,327 10,369 152 37 294 51 39,475 31,859 46,433 53,654 9,909 7,040 11,599 11,434 29,566 24,819 34,834 42,220 1.02 0.87 1.21 1.48 1.00 0.85 1.19 1.45 28,912 28,665 28,866 28,516 29,581 29,367 29,275 29,188 boot barn holdings, inc. consolidated statements of cash flows (in thousands) (unaudited) 2020 2019 34,834 42,220 17,919 15,384 5,011 3,326 67 127 25,342 22,899 663 725 23 389 295 (186) 384 — (1,150) (736) 4,242 290 42,709 (32,257) (818) (1,885) (687) (559) 9,753 17,063 42,219 31,929 789 396 (24,991) (22,324) 156,604 76,801 (20,508) (27,550) — (3,688) — 717 (20,508) (30,521) (129,900) 45,000 (487) (65,456) — (1,221) (535) (483) 1,605 4,712 (129,317) (17,448) 6,779 28,832 69,563 16,614 76,342 45,446 3,684 8,139 6,731 9,472 3,703 2,659 boot barn holdings, inc. store count 2020 2020 2020 2020 2019 2019 2019 2019 265 264 259 251 248 240 240 234 1 1 5 8 3 8 1 6 — — — — — — (1) — 266 265 264 259 251 248 240 240 boot barn holdings, inc. selected store data 2020 2020 2020 2020 2019 2019 2019 2019 4.6 % (5.1) % (14.9) % (4.7) % 6.7 % 7.8 % 9.4 % 8.7 % 266 265 264 259 251 248 240 240 2,787 2,779 2,770 2,722 2,639 2,616 2,537 2,539 10,477 10,486 10,491 10,508 10,514 10,549 10,570 10,580 563 565 410 590 903 635 660 666 debt covenant ebitda reconciliation (unaudited) 29,566 5,758 (490) 5,729 24,819 9,909 1,979 (289) 930 7,040 2,303 2,383 2,641 2,941 3,155 5,994 6,282 5,710 5,872 5,682 47,772 16,402 7,572 15,472 40,696 1,482 1,705 1,824 1,582 1,181 697 372 (302) (447) 575 (19) 46 (4) 28 377 - 295 - - 7 - 384 - 191 - 49,932 19,204 9,090 16,826 42,836 165 1,115 1,590 2,269 1,404 50,097 20,319 10,680 19,095 44,240
