Market Overview

Boot Barn Holdings, Inc. Announces Fourth Quarter and Fiscal Year 2018 Financial Results

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Fourth Quarter and Fiscal Year 2018 Results Exceed Guidance

Appointment of Anne MacDonald to Board of Directors

Boot Barn Holdings, Inc. (NYSE:BOOT) today announced its financial
results for the fourth quarter and fiscal year ended March 31, 2018.

For the 13-week fourth quarter ended March 31, 2018:

  • Net sales increased to $170.8 million, driven by a 12.1% increase in
    same store sales, with double-digit same store sales growth in both
    retail stores and online. This compares to $163.0 million in the
    prior-year period, which was a 14-week quarter.
  • Net income was $6.9 million, or $0.24 per diluted share, compared to
    net income of $2.6 million, or $0.10 per diluted share (and compared
    to adjusted net income of $3.3 million, or $0.12 per diluted share) in
    the prior-year period, which was a 14-week quarter.

For the 52-week fiscal year ended March 31, 2018:

  • Net sales increased 7.6% to $677.9 million, compared to $629.8 million
    in the prior year, which was a 53-week year.
  • Same store sales increased 5.2%.
  • Net income was $28.9 million, or $1.05 per diluted share, compared to
    net income of $14.2 million, or $0.53 per diluted share (and compared
    to adjusted net income of $14.9 million, or $0.55 per diluted share)
    in the prior-year, which was a 53-week year.
  • Added 9 stores through new openings and acquisitions and closed two
    underperforming stores, bringing the total count at fiscal year-end to
    226 stores.

Note: Adjusted net income is a non-GAAP measure. An explanation of the
computation of this measure and a reconciliation to GAAP net income is
included below. See also "Non-GAAP Financial Measures."

The Company announced that Anne MacDonald, an experienced branding and
marketing executive, has been appointed to its Board of Directors. Ms.
MacDonald will replace Fred Simmons, who has resigned from the Board.

Over the course of her career, Ms. MacDonald has served as Chief
Marketing Officer for several global companies including Macy's,
Citigroup, and Travelers Insurance. In addition to her executive
experience, Ms. MacDonald has had extensive agency experience advising
iconic brands including, Procter & Gamble, AT&T and Pizza Hut. Presently
she works as a strategic advisor to several clients through her own firm.

Jim Conroy, Chief Executive Officer, commented, "We are very pleased
with the top-line momentum our business experienced across most of the
country both in store and online during the fourth quarter. Our
investments in merchandising, marketing and omni-channel fueled
double-digit gains in retail comparable sales and helped return our
e-commerce business to double-digit growth as well. Importantly, we held
true to our full-price selling model, which combined with a meaningful
increase in our exclusive brand penetration, yielded a 90 basis point
improvement in merchandise margin. Our strong sales and margin
performance enabled us to exceed our earnings guidance for the quarter
and further solidify our industry leading position."

Mr. Conroy continued, "I am equally excited about the business in April
and May as our double-digit same store sales growth has continued. We
are looking forward to fiscal 2019 and the opportunities we have to
drive profitable growth, re-accelerate store expansion, build out our
multi-brand e-commerce strategy, and further develop our exclusive
brands."

Regarding the change in the Board of Directors, Jim Conroy commented, "I
am excited to welcome Anne MacDonald to the Board of Directors. She
brings a world-class marketing background that will enhance our ability
to develop both the Boot Barn brand and each of our exclusive brands.
Anne's combination of company and agency experience will further enhance
the composition of our Board as we continue to grow the Boot Barn
business across the country. I also want to take this opportunity to
thank Fred Simmons for his contributions since December 2011. Fred's
guidance and strategic counsel have helped lead the growth of Boot Barn
into a national lifestyle brand with revenue growing 300% during his
tenure. On a personal note, Fred has been inspiring, motivational and
uplifting to me and the entire management team."

Operating Results for the Fourth Quarter Ended March 31, 2018

  • Net sales increased to $170.8 million in the fourth quarter of fiscal
    year 2018 (13 weeks), from $163.0 million in the fourth quarter of
    fiscal year 2017 (14 weeks). Net sales increased due to a 12.1%
    increase in same store sales, the sales contribution from 9 stores
    added over the past twelve months, and sales from the Country
    Outfitter site that was acquired in February 2017. Sales growth was
    partially offset by sales from the 14th week in the prior-year period.
  • Gross profit was $52.9 million, or 31.0% of net sales, in the fourth
    quarter of fiscal year 2018, compared to gross profit of $49.3
    million, or 30.3% of net sales, in the prior-year period. Gross profit
    increased primarily due to increased sales and an increase in
    merchandise margin rate. Gross profit rate increased primarily as a
    result of a 90 basis point increase in merchandise margin rate
    partially offset by a 20 basis point increase in buying and occupancy
    costs. The higher merchandise margin rate was driven by more
    full-price selling, fewer promotions, and increased exclusive brand
    penetration. The increase in buying and occupancy costs as a
    percentage of sales resulted from fixed costs deleveraging in a
    13-week quarter in the current year compared to a 14-week quarter in
    the prior-year period.
  • Selling, general and administrative expense was $41.6 million, or
    24.4% of net sales, in the fourth quarter of fiscal year 2018 compared
    to $41.3 million, or 25.3% of net sales, in the prior-year period.
    Excluding $1.2 million of store impairment charges in the prior-year
    period, adjusted selling, general and administrative expense was $40.1
    million, or 24.6% of net sales. Selling, general and administrative
    expenses increased primarily as a result of increased sales,
    compensation expense and additional costs for both new and acquired
    stores. Selling, general and administrative expenses as a percentage
    of sales decreased as a result of expense leverage on higher sales.
  • Income from operations increased 39.9%, to $11.3 million, or 6.6% of
    net sales, in the fourth quarter of fiscal year 2018 (13 weeks),
    compared to $8.1 million, or 4.9% of net sales, in the prior-year
    period (14 weeks). Excluding the impact of the store impairment
    charges in the prior-year period, adjusted income from operations was
    $9.2 million, or 5.7% of net sales, in the fourth quarter of fiscal
    year 2017.
  • Net income was $6.9 million, or $0.24 per diluted share, in the fourth
    quarter of fiscal year 2018 (13 weeks), compared to $2.6 million, or
    $0.10 per diluted share, in the prior-year period (14 weeks).
    Excluding the impact of the store impairment charges, adjusted net
    income was $3.3 million, or $0.12 per diluted share, in the fourth
    quarter of fiscal year 2017, which was a 14-week quarter. Net income
    per diluted share in the fourth quarter of fiscal 2018 includes
    approximately $0.06 per share of tax benefit related to stock option
    exercises and $0.02 per share related to improved tax rate, partially
    offset by $0.01 per share of secondary offering costs.

A reconciliation of adjusted selling, general and administrative
expense, adjusted income from operations, adjusted net income and
adjusted net income per diluted share, each a non-GAAP financial
measure, to their most directly comparable GAAP financial measures is
included in the accompanying financial data. See "Non-GAAP Financial
Measures."

Operating Results for the Fiscal Year Ended March 31, 2018

  • Net sales for fiscal year 2018 (52 weeks) increased to $677.9 million
    from $629.8 million in fiscal year 2017 (53 weeks). Net sales
    increased due to a 5.2% increase in same store sales, the sales
    contribution from 9 stores added over the past twelve months and sales
    from the Country Outfitter site that was acquired in February 2017.
    Sales growth was partially offset by sales from the 53rd
    week in the prior-year.
  • Gross profit for fiscal year 2018 was $207.9 million, or 30.7% of net
    sales, compared to gross profit of $189.9 million, or 30.1% of net
    sales, in fiscal year 2017. Gross profit increased primarily due to
    increased sales. Gross profit rate increased as a result of a 50 basis
    point increase in merchandise margin rate.
  • Selling, general and administrative expense for fiscal year 2018 was
    $161.7 million, or 23.8% of net sales, compared to $152.1 million, or
    24.1% of net sales, in fiscal year 2017. Adjusted selling, general and
    administrative expense in fiscal year 2017 was $150.9 million, or
    24.0% of net sales. Selling, general and administrative expenses
    increased as a result of additional costs associated with the opening
    of new and acquired stores over the last twelve months, compensation
    expense and incremental operating costs associated with the growth in
    the business. Selling, general and administrative expenses as a
    percentage of sales decreased as a result of expense leverage on
    higher sales.
  • Income from operations for fiscal year 2018 (52 weeks) increased
    22.3%, to $46.3 million, or 6.8% of net sales, compared to $37.8
    million, or 6.0% of net sales, in fiscal year 2017 (53 weeks).
    Adjusted income from operations in fiscal year 2017 was $39.0 million,
    or 6.2% of net sales.
  • Net income for fiscal year 2018 (52 weeks) was $28.9 million, or $1.05
    per diluted share, compared to $14.2 million, or $0.53 per diluted
    share, in fiscal year 2017 (53 weeks). Adjusted net income in fiscal
    year 2017 was $14.9 million, or $0.55 per diluted share. Net income
    per diluted share in fiscal year 2018 includes approximately $0.25 per
    share of tax benefit from the revaluation of deferred tax liabilities,
    approximately $0.06 related to stock option exercises and $0.04
    related to improved tax rate from tax reform.
  • The Company added 9 stores through new openings and acquisitions and
    closed two underperforming stores, bringing the total count at
    year-end to 226 stores.

A reconciliation of adjusted selling, general and administrative
expense, adjusted income from operations, adjusted net income and
adjusted net income per diluted share, each a non-GAAP financial
measure, to their most directly comparable GAAP financial measures is
included in the accompanying financial data. See also "Non-GAAP
Financial Measures."

Balance Sheet Highlights as of March 31, 2018

  • Cash of $9.0 million.
  • Average inventory per store increased 4.4% on a comp store basis
    compared to April 1, 2017.
  • Total net debt of $204.2 million, including $21.0 million drawn under
    the revolving credit facility.

Fiscal Year 2019 Outlook

For the fiscal year ending March 30, 2019 the Company expects:

  • To open 23 new stores.
  • Same store sales growth of mid-single digits.
  • Income from operations between $52.5 million and $56.5 million.
  • Interest expense of $17.0 million to $18.0 million.
  • Net income of $26.2 million to $29.2 million.
  • Net income per diluted share of $0.92 to $1.02 based on 28.7 million
    weighted average diluted shares outstanding.

For the fiscal first quarter ending June 30, 2018 the Company expects:

  • Same store sales growth of approximately 10%.
  • Net income per diluted share of $0.10 to $0.12 based on 28.5 million
    weighted average diluted shares outstanding.

Conference Call Information

A conference call to discuss the financial results for the fourth
quarter of fiscal year 2018 is scheduled for today, May 15, 2018, at
4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in
participating in the call are invited to dial (800) 289-0438. 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 June 15, 2018, by dialing (844) 512-2921 (domestic) or
(412) 317-6671 (international) and entering the conference
identification number: 2347094. 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 230 stores in 31 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.

Non-GAAP Financial Measures

The Company presents adjusted selling, general and administrative
expense, adjusted income from operations, adjusted net income and
adjusted net income per diluted share to help the Company describe its
operating and financial performance. These financial measures are
non-GAAP financial measures and should not be construed in isolation or
as an alternative to actual selling, general and administrative expense,
actual income from operations, actual net income and actual earnings per
diluted share and other income or cash flow statement data (as presented
in the Company's consolidated financial statements in accordance with
generally accepted accounting principles in the United States, or GAAP),
or as a better indicator of operating performance or as a measure of
liquidity. These non-GAAP financial measures, as defined by the Company,
may not be comparable to similar non-GAAP financial measures presented
by other companies. The Company's management believes that these
non-GAAP financial measures provide investors with transparency and help
illustrate financial results by excluding items that may not be
indicative of, or are unrelated to, the Company's core operating
results, thereby providing a better baseline for analyzing trends in the
underlying business. See the table at the end of this press release for
a reconciliation of adjusted selling, general and administrative expense
to selling, general and administrative expense, adjusted income from
operations to income from operations, adjusted net income to net income,
and adjusted net income per diluted share to net income per diluted
share.

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: decreases in consumer spending due to declines in
consumer confidence, local economic conditions or changes in consumer
preferences and the Company's ability to effectively execute on its
growth strategy; the 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)

   
March 31, April 1,
2018 2017
Assets
Current assets:
Cash and cash equivalents $ 9,016 $ 8,035
Accounts receivable, net 4,389 4,354
Inventories 211,472 189,096
Prepaid expenses and other current assets   16,250     22,818  
Total current assets 241,127 224,303
Property and equipment, net 89,208 82,711
Goodwill 193,095 193,095
Intangible assets, net 63,383 64,511
Other assets   1,128     961  
Total assets $ 587,941   $ 565,581  
Liabilities and stockholders' equity
Current liabilities:
Line of credit $ 21,006 $ 33,274
Accounts payable 89,958 77,482
Accrued expenses and other current liabilities 40,034 35,983
Current portion of notes payable, net       1,062  
Total current liabilities 150,998 147,801
Deferred taxes 13,030 20,961
Long-term portion of notes payable, net 183,200 191,517
Capital lease obligation 7,303 7,825
Other liabilities   18,804     17,568  
Total liabilities   373,335     385,672  
 
Stockholders' equity:
 
Common stock, $0.0001 par value; March 31, 2018 - 100,000 shares
authorized, 27,331 shares issued; April 1, 2017 - 100,000 shares
authorized, 26,575 shares issued 3 3
 
Preferred stock, $0.0001 par value; 10,000 shares authorized, no
shares issued or outstanding
Additional paid-in capital 148,127 142,184
Retained earnings 66,670 37,791
Less: Common stock held in treasury, at cost, 31 and 14 shares at
March 31, 2018 and April 1, 2017, respectively   (194 )   (69 )
Total stockholders' equity   214,606     179,909  
Total liabilities and stockholders' equity $ 587,941   $ 565,581  
 

Boot Barn Holdings, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

       
Thirteen Fourteen Fifty-Two Fifty-Three
Weeks Ended   Weeks Ended Weeks Ended   Weeks Ended
March 31,

2018

April 1,

2017

March 31,

2018

April 1,

2017

 
Net sales $ 170,766 $ 163,003 $ 677,949 $ 629,816
Cost of goods sold   117,870   113,675   470,034   439,930
Gross profit 52,896 49,328 207,915 189,886
Selling, general and administrative expenses   41,614   41,265   161,660   152,068
Income from operations 11,282 8,063 46,255 37,818
Interest expense, net   3,808   3,851   15,076   14,699
Income before income taxes 7,474 4,212 31,179 23,119
Income tax expense   619   1,624   2,300   8,922
Net income $ 6,855 $ 2,588 $ 28,879 $ 14,197
 
Earnings per share:
Basic shares $ 0.25 $ 0.10 $ 1.08 $ 0.54
Diluted shares $ 0.24 $ 0.10 $ 1.05 $ 0.53
Weighted average shares outstanding:
Basic shares 27,134 26,535 26,744 26,459
Diluted shares 28,245 27,068 27,528 26,939
 

Boot Barn Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 
Fiscal Year Ended
March 31,   April 1,   March 26,
2018 2017 2016
Cash flows from operating activities
Net income $ 28,879 $ 14,197 $ 9,868
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation 16,000 14,555 11,480
Stock-based compensation 2,248 3,023 2,881
Excess tax benefit (3,621 )
Amortization of intangible assets 1,128 2,155 2,536
Amortization and write-off of debt issuance fees and debt discount 1,199 1,145 2,274
Loss on disposal of property and equipment 252 367 463
Hurricane-related asset write-off 2,357
Store impairment charge 83 1,164
Accretion of above market leases (2 ) (36 ) (72 )
Deferred taxes 1,860 6,175 981
Amortization of inventory fair value adjustment (500 )
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net (35 ) (223 ) 1,524
Inventories (24,598 ) (12,761 ) (16,087 )
Prepaid expenses and other current assets (3,281 ) (3,805 ) 7,543
Other assets (167 ) 5 (2,713 )
Accounts payable 13,062 10,501 6,835
Accrued expenses and other current liabilities 3,977 (483 ) 5,068
Other liabilities   1,238     5,172     4,469  
Net cash provided by operating activities $ 44,200   $ 41,151   $ 32,929  
Cash flows from investing activities
Purchases of property and equipment $ (24,418 ) $ (22,293 ) $ (36,127 )
Hurricane-related insurance recoveries for property and equipment 865
Acquisition of business or assets, net of cash acquired       (1,305 )   (146,541 )
Net cash used in investing activities $ (23,553 ) $ (23,598 ) $ (182,668 )
Cash flows from financing activities
Borrowings/(payments) on line of credit - net $ (12,268 ) $ (15,541 ) $ 32,615
Proceeds from loan borrowings 200,938
Repayments on debt and capital lease obligations (10,448 ) (2,378 ) (77,899 )
Debt issuance fees (520 ) (6,487 )
Tax withholding payments for net share settlement (125 ) (69 )
Excess tax benefits from stock options 3,621
Proceeds from the exercise of stock options   3,695     1,275     2,698  
Net cash (used in)/provided by financing activities $ (19,666 ) $ (16,713 ) $ 155,486  
 
Net increase in cash and cash equivalents 981 840 5,747
Cash and cash equivalents, beginning of period   8,035     7,195     1,448  
Cash and cash equivalents, end of period $ 9,016   $ 8,035   $ 7,195  
 
Supplemental disclosures of cash flow information:
Cash paid for income taxes $ 614 $ 4,192 $ 3,296
Cash paid for interest $ 13,743 $ 13,646 $ 10,333
Supplemental disclosure of non-cash activities:
Unpaid purchases of property and equipment $ 1,315 $ 2,421 $ 1,992
Equipment acquired through capital lease $ $ $ 38
 

Boot Barn Holdings, Inc.
 
Supplemental Information - Consolidated Statements of Operations
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts)
(Unaudited)
       

The tables below reconcile the non-GAAP financial measures of
adjusted selling, general and administrative expense, adjusted
income from operations, adjusted net income, and adjusted net
income per diluted share, to the most directly comparable GAAP
financial measures of selling, general and administrative expense,
income from operations, net income, and net income per diluted
share.

 
Thirteen Fourteen Fifty-Two Fifty-Three
Weeks Ended   Weeks Ended Weeks Ended   Weeks Ended
March 31, April 1, March 31, April 1,
2018   2017   2018   2017
 
Reconciliation of GAAP selling, general and administrative
expense to adjusted selling, general and administrative expense
Selling, general and administrative expense, as reported $ 41,614 $ 41,265 $ 161,660 $ 152,068
Store impairment charge (a)     1,164       1,164  
Adjusted selling, general and administrative expense $ 41,614 $ 40,101   $ 161,660 $ 150,904  
 
Reconciliation of GAAP income from operations to adjusted income
from operations
Income from operations, as reported $ 11,282 $ 8,063 $ 46,255 $ 37,818
Store impairment charge (a)     1,164       1,164  
Adjusted income from operations $ 11,282 $ 9,227   $ 46,255 $ 38,982  
 
Reconciliation of GAAP net income to adjusted net income
Net income, as reported $ 6,855 $ 2,588 $ 28,879 $ 14,197
Store impairment charge (a) 1,164 1,164
Provision for income taxes, as reported 1,624 8,922
Adjusted provision for income taxes (b)     (2,073 )     (9,371 )
Adjusted net income $ 6,855 $ 3,303   $ 28,879 $ 14,912  
 
Reconciliation of GAAP net income per diluted share to adjusted
net income per diluted share
Net income per diluted share, as reported $ 0.24 $ 0.10 $ 1.05 $ 0.53
Adjustments for store impairment charge and related tax impact     0.02       0.02  
Adjusted net income per diluted share $ 0.24 $ 0.12   $ 1.05 $ 0.55  
 
Weighted average diluted shares outstanding, as reported 28,245 27,068 27,528 26,939
(a)   Represents the store impairment charge recorded at three stores in
order to reduce the carrying amount of the assets to their estimated
fair values.
(b) The provision for income taxes uses an effective tax rate of 38.6%
for both the fourteen-week and fifty-three week period ended April
1, 2017, and applies it to the non-GAAP income before taxes.
 

Boot Barn Holdings, Inc.

Store Count

             
Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended
March 28, March 26, April 1, July 1, September 30, December 30, March 31,
2015 2016 2017 2017 2017 2017 2018
Store Count (BOP) 152 169 208 219 220 222 226
Opened/Acquired 18 47 12 1 4 4
Relocated

Closed Boot Barn Stores (1) (2) (1) (2)
Closed Sheplers Stores (6)
Store Count (EOP) 169 208 219 220 222 226 226
 

Adjusted EBITDA Reconciliation

(In thousands)

(Unaudited)

   
Thirteen Weeks Ended Fourteen Weeks Ended

    March 31,    

  December 30,   September 30,  

    July 1,    

April 1,
2018 2017 2017 2017 2017
Boot Barn's Net income $ 6,855 $ 20,149 $ 1,098 $ 777 $ 2,588
Income tax expense 619 425 751 506 1,624
Interest expense, net 3,808 3,821 3,789 3,658 3,851
Depreciation and intangible asset amortization   4,610     4,263   4,142     4,113   4,407  
Boot Barn's EBITDA $ 15,892 $ 28,658 $ 9,780 $ 9,054 $ 12,470
 
Non-cash stock-based compensation (a) $ 398 $ 597 $ 678 $ 575 $ 763
Non-cash accrual for future award redemptions (b) (120 ) 47 (162 ) 5 (489 )
Loss on disposal of assets (c) 179 12 47 14 204
Store impairment charge (d) 83 - - - 1,164
Secondary offering costs (e)   294     -   -     -   -  
Boot Barn's Adjusted EBITDA $ 16,726 $ 29,314 $ 10,343 $ 9,648 $ 14,112
 
Additional adjustments (f)   546     862   418     628   156  
Consolidated EBITDA per Loan Agreements $ 17,272   $ 30,176 $ 10,761   $ 10,276 $ 14,268  

_________________________________

(a)

 

Represents non-cash compensation expenses related to stock
options, restricted stock awards and restricted stock units
granted to certain of our employees and directors.

(b)

Represents the non-cash accrual for future award redemptions in
connection with our customer loyalty program.

(c)

Represents loss on disposal of assets from store closures.

(d)

Represents store impairment charges recorded in order to reduce
the carrying amount of the assets to their estimated fair values.

(e)

Represents professional fees and expenses incurred in connection
with the January 2018 secondary offering.

(f)

Adjustments to Boot Barn's Adjusted EBITDA as provided in the 2015
Golub Term Loan and June 2015 Wells Fargo Revolver include
pre-opening costs, franchise and state taxes, and other
miscellaneous adjustments.

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