BJ's Wholesale Club Inc. (BJ, Financial) filed Quarterly Report for the period ended 2009-10-31.
BJS Warehouse offers an assortment of brand name food and generalmerchandise items within a wide range of product categories. In order toachieve high sales volumes and rapid inventory turnover, merchandise selections are generally limited to items that are brand name leaders in their categories. Since warehouse clubs sell a diversified selection of product categories, the company attracts customers from a wide range of other wholesale and retail distribution channels, such as supermarkets, supercenters, department stores, drug stores, and discount stores. Bj's Wholesale Club Inc. has a market cap of $1.91 billion; its shares were traded at around $34.41 with a P/E ratio of 14.2 and P/S ratio of 0.2. Bj's Wholesale Club Inc. had an annual average earning growth of 4.3% over the past 10 years.
Loss from discontinued operations (net of income tax benefit) was $0.1 million in this years third quarter versus $0.8 million in last years third quarter. For the first nine months, loss from discontinued operations (net of income tax benefit) was $0.3 million this year versus $1.1 million last year. This years amounts consisted primarily of accretion charges on closed store lease obligations. Last years amounts included third quarter post-tax expense of $0.5 million related to a club closing in South Carolina in addition to accretion charges on closed store lease obligations.
Net income for the third quarter was $17.7 million, or $0.32 per diluted share, this year versus $28.2 million, or $0.48 per diluted share, last year. Net income for the first nine months of this year was $77.1 million, or $1.41 per diluted share, versus $81.9 million, or $1.38 per diluted share, last year.
Cash expended for property additions was $131.2 million in this years first nine months versus $90.7 million in last years comparable period. In this years first nine months, we opened four new clubs in Clermont, Florida; Pelham Manor, New York; Bronx, New York; and North Bergen, New Jersey. We own one of these new clubs and the remaining three are leased. We also opened two new clubs in the Philadelphia area at the beginning of the fourth quarter and expect to open one additional club in New York at the end of the fourth quarter. In last years first nine months, we opened one new club, which is owned subject to a ground lease, and began construction on three additional clubs that opened in the fourth quarter. Our full-year capital expenditures are expected to total approximately $180 to $200 million in 2009. The timing of actual openings and the amount of related expenditures could vary from these estimates due, among other things, to the complexity of the real estate development process.
During this years first nine months, we repurchased 1,880,600 shares of our common stock for $55.6 million, all of which was purchased in the first quarter. In last years first nine months, we repurchased 3,093,150 shares of our common stock for $109.1 million. These amounts are lower than stock repurchase amounts reported in the statement of cash flows by $14.8 million and $4.1 million in 2009 and 2008, respectively, due to transactions that had not settled at the beginning of each year. As of October 31, 2009, our remaining repurchase authorization from the Board of Directors was $138.3 million. Our full-year common stock repurchases in 2009 on a cash basis are expected to total approximately $100 million.
We publicly announced in a press release dated August 26, 1998 that the Board of Directors authorized a program to repurchase up to $50 million of the Companys common stock. We subsequently announced that the Board authorized increases in the program of $50 million each in press releases dated September 16, 1999, May 25, 2000, and May 25, 2001; additional increases of $100 million each in press releases dated September 26, 2001, August 20, 2002, March 1, 2005, April 5, 2006, and May 23, 2007; an increase of $250 million announced in a press release dated November 20, 2007; and an increase of $200 million announced in a press release dated August 19, 2008. Under the program, repurchases may be made at managements discretion, in the open market or in privately negotiated transactions. No expiration dates were set under any of the Boards authorizations. From the inception of the program through October 31, 2009, we have repurchased approximately 32.7 million shares for a total of $1,011.7 million, leaving a remaining authorization of $138.3 million. During the third quarter of fiscal 2009, there were no repurchases under the program.
Read the The complete ReportBJ is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Bruce Kovner of Caxton Associates, Chuck Royce of ROYCE & ASSOCIATES.
BJS Warehouse offers an assortment of brand name food and generalmerchandise items within a wide range of product categories. In order toachieve high sales volumes and rapid inventory turnover, merchandise selections are generally limited to items that are brand name leaders in their categories. Since warehouse clubs sell a diversified selection of product categories, the company attracts customers from a wide range of other wholesale and retail distribution channels, such as supermarkets, supercenters, department stores, drug stores, and discount stores. Bj's Wholesale Club Inc. has a market cap of $1.91 billion; its shares were traded at around $34.41 with a P/E ratio of 14.2 and P/S ratio of 0.2. Bj's Wholesale Club Inc. had an annual average earning growth of 4.3% over the past 10 years.
Highlight of Business Operations:
Income from continuing operations was $17.8 million, or $0.32 per diluted share, in this years third quarter versus $29.0 million, or $0.49 per diluted share, in last years comparable period. For the first nine months, income from continuing operations was $77.4 million, or $1.42 per diluted share, this year versus $83.0 million, or $1.40 per diluted share, last year. This years results included third quarter post-tax expense of $6.9 million for the previously mentioned wage and hour settlement. Last years amounts included the favorable income tax audit settlements of $2.0 million.Loss from discontinued operations (net of income tax benefit) was $0.1 million in this years third quarter versus $0.8 million in last years third quarter. For the first nine months, loss from discontinued operations (net of income tax benefit) was $0.3 million this year versus $1.1 million last year. This years amounts consisted primarily of accretion charges on closed store lease obligations. Last years amounts included third quarter post-tax expense of $0.5 million related to a club closing in South Carolina in addition to accretion charges on closed store lease obligations.
Net income for the third quarter was $17.7 million, or $0.32 per diluted share, this year versus $28.2 million, or $0.48 per diluted share, last year. Net income for the first nine months of this year was $77.1 million, or $1.41 per diluted share, versus $81.9 million, or $1.38 per diluted share, last year.
Cash expended for property additions was $131.2 million in this years first nine months versus $90.7 million in last years comparable period. In this years first nine months, we opened four new clubs in Clermont, Florida; Pelham Manor, New York; Bronx, New York; and North Bergen, New Jersey. We own one of these new clubs and the remaining three are leased. We also opened two new clubs in the Philadelphia area at the beginning of the fourth quarter and expect to open one additional club in New York at the end of the fourth quarter. In last years first nine months, we opened one new club, which is owned subject to a ground lease, and began construction on three additional clubs that opened in the fourth quarter. Our full-year capital expenditures are expected to total approximately $180 to $200 million in 2009. The timing of actual openings and the amount of related expenditures could vary from these estimates due, among other things, to the complexity of the real estate development process.
During this years first nine months, we repurchased 1,880,600 shares of our common stock for $55.6 million, all of which was purchased in the first quarter. In last years first nine months, we repurchased 3,093,150 shares of our common stock for $109.1 million. These amounts are lower than stock repurchase amounts reported in the statement of cash flows by $14.8 million and $4.1 million in 2009 and 2008, respectively, due to transactions that had not settled at the beginning of each year. As of October 31, 2009, our remaining repurchase authorization from the Board of Directors was $138.3 million. Our full-year common stock repurchases in 2009 on a cash basis are expected to total approximately $100 million.
We publicly announced in a press release dated August 26, 1998 that the Board of Directors authorized a program to repurchase up to $50 million of the Companys common stock. We subsequently announced that the Board authorized increases in the program of $50 million each in press releases dated September 16, 1999, May 25, 2000, and May 25, 2001; additional increases of $100 million each in press releases dated September 26, 2001, August 20, 2002, March 1, 2005, April 5, 2006, and May 23, 2007; an increase of $250 million announced in a press release dated November 20, 2007; and an increase of $200 million announced in a press release dated August 19, 2008. Under the program, repurchases may be made at managements discretion, in the open market or in privately negotiated transactions. No expiration dates were set under any of the Boards authorizations. From the inception of the program through October 31, 2009, we have repurchased approximately 32.7 million shares for a total of $1,011.7 million, leaving a remaining authorization of $138.3 million. During the third quarter of fiscal 2009, there were no repurchases under the program.
Read the The complete ReportBJ is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Bruce Kovner of Caxton Associates, Chuck Royce of ROYCE & ASSOCIATES.
