Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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): November 19, 2008

BJ’s Wholesale Club, Inc.

 

(Exact Name of Registrant as Specified in Charter)

 

Delaware

 

001-13143

 

04-3360747

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

One Mercer Road, Natick, Massachusetts

 

01760

(Address of Principal Executive Offices)   (Zip Code)

Registrant’s telephone number, including area code: (508) 651-7400

N/A

 

(Former Name or Former Address, if Changed Since Last Report)

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):

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

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

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

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

 

 

 


The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 2.02. Results of Operations and Financial Condition

On November 19, 2008, BJ’s Wholesale Club, Inc. (“the Company”) announced its earnings results for the fiscal quarter and nine months ended November 1, 2008. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01. Regulation FD Disclosure

In the third quarter ended November 1, 2008, the Company, made the following changes in the presentation of its income statement. The following is intended to explain the effects of these changes on prior periods.

Classification of Ancillary Businesses

The Company revised the classification of the results of certain ancillary businesses, including its propane filling service, food courts, full-service optical centers and other ancillary businesses. While some of these businesses are operated by BJ’s directly, others are operated under arrangements with third parties.

The Company has historically presented the results of its ancillary businesses on a net basis in selling, general and administrative (“SG&A”) expenses in its income statements. Beginning in the third quarter, these items will be presented on a gross or net basis as determined by applying the appropriate authoritative literature. For arrangements requiring gross presentation, sales are now classified within total revenues and purchases are now classified within cost of sales. For arrangements requiring net presentation, results are now classified within total revenues or as an offset to rent which is presented as a component of cost of sales. These changes have no effect on net income or earnings per share, nor do they affect the Company’s financial position.

Presentation of Total Revenues

In periods prior to the third quarter ending November 1, 2008, the Company’s income statement showed “Net sales” and “Membership fees and other” as the two components of “Total revenues.” In its revised presentation, total revenues will consist of “Net sales,” “Membership fees” and “Other revenues.” “Other revenues” will now include both the items which were the “other” of “Membership fees and other” in the Company’s prior presentation, and the results of the ancillary businesses reclassified from SG&A expenses as discussed above. The Company believes that this will result in more transparency in the presentation of each category of revenue, as well as of cost of sales and SG&A expenses.


Discontinued Operations

As discussed in the Company’s financial statements for the third quarter ended November 1, 2008, the Company’s location in Greenville, South Carolina, was closed on October 14, 2008. Management has determined that the most appropriate presentation of the results of this location is in discontinued operations. As is required with discontinued operations presentation, the Company is reclassifying prior period results to conform with its new presentation beginning with the third quarter ended November 1, 2008. For informational purposes, the Company is disclosing the prior period reclassifications to discontinued operations in this Form 8-K.

The effects on prior periods of the revised income statement classification of the Company’s ancillary businesses, the revised presentation of total revenues, and the discontinued operations adjustments for the closing of the Company’s Greenville, South Carolina, club are presented in the tables below.

(Dollars in Thousands)

 

Quarter ended May 3, 2008

   As Previously
Reported
    Other Income
Adjustments
    Discontinued
Operations
Adjustments
    As Reclassified  

Net sales

   $ 2,258,911     $     $ (5,783 )   $ 2,253,128  

Membership fees

     47,507       (3,349 )     (144 )     44,014  

Other revenue

     —         10,637       (23 )     10,614  
                                

Total revenues

     2,306,418       7,288       (5,950 )     2,307,756  
                                

Cost of sales, including buying and occupancy costs

     2,095,724       (13 )     (5,538 )     2,090,173  

Selling, general and administrative expenses

     181,113       7,301       (492 )     187,922  

Preopening expenses

     532       —         —         532  
                                

Operating income

     29,049       —         80       29,129  

Interest income, net

     121       —         —         121  
                                

Income from continuing operations before income taxes

     29,170       —         80       29,250  

Provision for income taxes

     11,872       —         33       11,905  
                                

Income from continuing operations

     17,298       —         47       17,345  

Loss from discontinued operations

     (109 )     —         (47 )     (156 )
                                

Net income

   $ 17,189     $     $     $ 17,189  
                                

Quarter ended August 2, 2008

   As Previously
Reported
    Other Income
Adjustments
    Discontinued
Operations
Adjustments
    As Reclassified  

Net sales

   $ 2,651,312     $     $ (6,932 )   $ 2,644,380  

Membership fees

     48,052       (3,625 )     (79 )     44,348  

Other revenue

     —         13,989       (37 )     13,952  
                                

Total revenues

     2,699,364       10,364       (7,048 )     2,702,680  
                                

Cost of sales, including buying and occupancy costs

     2,448,492       1,367       (6,641 )     2,443,218  

Selling, general and administrative expenses

     192,892       8,997       (488 )     201,401  

Preopening expenses

     129       —         —         129  
                                

Operating income

     57,851       —         81       57,932  

Interest income, net

     484       —         —         484  
                                

Income from continuing operations before income taxes

     58,335       —         81       58,416  

Provision for income taxes

     21,736       —         33       21,769  
                                

Income from continuing operations

     36,599       —         48       36,647  

Loss from discontinued operations

     (108 )     —         (48 )     (156 )
                                

Net income

   $ 36,491     $     $     $ 36,491  
                                


(Dollars in Thousands)

 

Quarter ended May 5, 2007

   As Previously
Reported
    Other Income
Adjustments
    Discontinued
Operations
Adjustments
    As Reclassified  

Net sales

   $ 2,011,139     $ —       $ (5,458 )   $ 2,005,681  

Membership fees

     46,872       (3,289 )     (171 )     43,412  

Other revenue

     —         11,645       (25 )     11,620  
                                

Total revenues

     2,058,011       8,356       (5,654 )     2,060,713  
                                

Cost of sales, including buying and occupancy costs

     1,868,513       691       (5,154 )     1,864,050  

Selling, general and administrative expenses

     165,051       7,665       (406 )     172,310  

Preopening expenses

     1,294       —         —         1,294  
                                

Operating income

     23,153       —         (94 )     23,059  

Interest income, net

     245       —         —         245  
                                

Income from continuing operations before income taxes

     23,398       —         (94 )     23,304  

Provision for income taxes

     9,593       —         (38 )     9,555  
                                

Income from continuing operations

     13,805       —         (56 )     13,749  

Loss from discontinued operations

     (151 )     —         56       (95 )
                                

Net income

   $ 13,654     $     $     $ 13,654  
                                

Quarter ended August 4, 2007

   As Previously
Reported
    Other Income
Adjustments
    Discontinued
Operations
Adjustments
    As Reclassified  

Net sales

   $ 2,248,212     $ —       $ (5,878 )   $ 2,242,334  

Membership fees

     46,772       (3,157 )     (99 )     43,516  

Other revenue

     —         13,620       (35 )     13,585  
                                

Total revenues

     2,294,984       10,463       (6,012 )     2,299,435  
                                

Cost of sales, including buying and occupancy costs

     2,069,089       1,091       (5,538 )     2,064,642  

Selling, general and administrative expenses

     174,812       9,372       (446 )     183,738  

Preopening expenses

     1,244       —         —         1,244  
                                

Operating income

     49,839       —         (28 )     49,811  

Interest income, net

     1,102       —         —         1,102  
                                

Income from continuing operations before income taxes

     50,941       —         (28 )     50,913  

Provision for income taxes

     16,879       —         (5 )     16,874  
                                

Income from continuing operations

     34,062       —         (23 )     34,039  

Income from discontinued operations

     2,205       —         23       2,228  
                                

Net income

   $ 36,267     $     $     $ 36,267  
                                

Quarter ended November 3, 2007

   As Previously
Reported
    Other Income
Adjustments
    Discontinued
Operations
Adjustments
    As Reclassified  

Net sales

   $ 2,124,469     $ —       $ (5,403 )   $ 2,119,066  

Membership fees

     47,926       (3,510 )     (92 )     44,324  

Other revenue

     —         11,068       (25 )     11,043  
                                

Total revenues

     2,172,395       7,558       (5,520 )     2,174,433  
                                

Cost of sales, including buying and occupancy costs

     1,961,228       (64 )     (5,176 )     1,955,988  

Selling, general and administrative expenses

     172,933       7,622       (480 )     180,075  

Preopening expenses

     866       —         —         866  
                                

Operating income

     37,368       —         136       37,504  

Interest income, net

     963       —         —         963  
                                

Income from continuing operations before income taxes

     38,331       —         136       38,467  

Provision for income taxes

     15,525       —         48       15,573  
                                

Income from continuing operations

     22,806       —         88       22,894  

Loss from discontinued operations

     (109 )     —         (88 )     (197 )
                                

Net income

   $ 22,697     $     $     $ 22,697  
                                

Quarter ended February 2, 2008

   As Previously
Reported
    Other Income
Adjustments
    Discontinued
Operations
Adjustments
    As Reclassified  

Net sales

   $ 2,430,795     $ —       $ (6,258 )   $ 2,424,537  

Membership fees

     48,817       (4,172 )     (115 )     44,530  

Other revenue

     —         10,842       (25 )     10,817  
                                

Total revenues

     2,479,612       6,670       (6,398 )     2,479,884  
                                

Cost of sales, including buying and occupancy costs

     2,212,484       (735 )     (5,848 )     2,205,901  

Selling, general and administrative expenses

     181,046       7,405       (497 )     187,954  

Preopening expenses

     1,151       —         —         1,151  
                                

Operating income

     84,931       —         (53 )     84,878  

Interest income, net

     1,432       —         —         1,432  
                                

Income from continuing operations before income taxes

     86,363       —         (53 )     86,310  

Provision for income taxes

     35,631       —         (20 )     35,611  
                                

Income from continuing operations

     50,732       —         (33 )     50,699  

Loss from discontinued operations

     (489 )     —         33       (456 )
                                

Net income

   $ 50,243     $     $     $ 50,243  
                                


(Dollars in Thousands)

 

Year Ended February 2, 2008

   As Previously
Reported
    Other Income
Adjustments
    Discontinued
Operations
Adjustments
    As Reclassified  

Net sales

   $ 8,814,615     $ —       $ (22,997 )   $ 8,791,618  

Membership fees

     190,387       (14,128 )     (477 )     175,782  

Other revenue

     —         47,175       (110 )     47,065  
                                

Total revenues

     9,005,002       33,047       (23,584 )     9,014,465  
                                

Cost of sales, including buying and occupancy costs

     8,111,314       983       (21,716 )     8,090,581  

Selling, general and administrative expenses

     693,842       32,064       (1,829 )     724,077  

Provision for credit card claims

     —         —         —         —    

Preopening expenses

     4,555       —         —         4,555  
                                

Operating income

     195,291       —         (39 )     195,252  

Interest income, net

     3,742       —         —         3,742  

Gain on contingent lease obligations

     —         —         —         —    
                                

Income from continuing operations before income taxes

     199,033       —         (39 )     198,994  

Provision for income taxes

     77,628       —         (15 )     77,613  
                                

Income (loss) from continuing operations

     121,405       —         (24 )     121,381  

Income from discontinued operations

     1,456       —         24       1,480  
                                

Net income

   $ 122,861     $ —       $ —       $ 122,861  
                                

Year Ended February 3, 2007

   As Previously
Reported
    Other Income
Adjustments
    Discontinued
Operations
Adjustments
    As Reclassified  

Net sales

   $ 8,303,496     $     $ (23,117 )   $ 8,280,379  

Membership fees

     176,785       (14,539 )     (499 )     161,747  

Other revenue

     —         54,652       (156 )     54,496  
                                

Total revenues

     8,480,281       40,113       (23,772 )     8,496,622  
                                

Cost of sales, including buying and occupancy costs

     7,619,125       3,838       (21,681 )     7,601,282  

Selling, general and administrative expenses

     705,249       36,275       (1,822 )     739,702  

Provision for credit card claims

     2,000       —         —         2,000  

Preopening expenses

     9,524       —         —         9,524  
                                

Operating income

     144,383       —         (269 )     144,114  

Interest income, net

     2,638       —         —         2,638  

Gain on contingent lease obligations

     3,119       —         —         3,119  
                                

Income from continuing operations before income taxes

     150,140       —         (269 )     149,871  

Provision for income taxes

     57,183       —         (102 )     57,081  
                                

Income (loss) from continuing operations

     92,957       —         (167 )     92,790  

Loss from discontinued operations

     (20,941 )     —         167       (20,774 )
                                

Net income

   $ 72,016     $ —       $ —       $ 72,016  
                                


(Dollars in Thousands)

 

Year Ended January 28, 2006

   As Previously
Reported
    Other Income
Adjustments
    Discontinued
Operations
Adjustments
    As Reclassified  

Net sales

   $ 7,748,184     $ —       $ (22,770 )   $ 7,725,414  

Membership fees

     165,919       (15,905 )     (476 )     149,538  

Other revenue

     —         58,162       (186 )     57,976  
                                

Total revenues

     7,914,103       42,257       (23,432 )     7,932,928  
                                

Cost of sales, including buying and occupancy costs

     7,076,702       8,373       (21,412 )     7,063,663  

Selling, general and administrative expenses

     611,127       33,884       (1,775 )     643,236  

Provision for credit card claims

     4,000       —         —         4,000  

Preopening expenses

     7,601       —         —         7,601  
                                

Operating income

     214,673       —         (245 )     214,428  

Interest income, net

     2,742       —         —         2,742  

Gain on contingent lease obligations

     4,494       —         —         4,494  
                                

Income from continuing operations before income taxes

     221,909       —         (245 )     221,664  

Provision for income taxes

     86,503       —         (96 )     86,407  
                                

Income (loss) from continuing operations

     135,406       —         (149 )     135,257  

Loss from discontinued operations

     (6,873 )     —         149       (6,724 )
                                

Net income

   $ 128,533     $ —       $ —       $ 128,533  
                                

Year Ended January 29, 2005

   As Previously
Reported
    Other Income
Adjustments
    Discontinued
Operations
Adjustments
    As Reclassified  

Net sales

   $ 7,215,968     $     $ (22,056 )   $ 7,193,912  

Membership fees

     155,060       (15,618 )     (456 )     138,986  

Other revenue

     —         57,912       (209 )     57,703  
                                

Total revenues

     7,371,028       42,294       (22,721 )     7,390,601  
                                

Cost of sales, including buying and occupancy costs

     6,604,245       7,067       (21,028 )     6,590,284  

Selling, general and administrative expenses

     562,398       35,227       (1,788 )     595,837  

Provision for credit card claims

     7,000       —         —         7,000  

Preopening expenses

     13,199       —         —         13,199  
                                

Operating income

     184,186       —         95       184,281  

Interest income, net

     803       —         —         803  

Gain on contingent lease obligations

     9,424       —         —         9,424  
                                

Income from continuing operations before income taxes

     194,413       —         95       194,508  

Provision for income taxes

     74,799       —         37       74,836  
                                

Income (loss) from continuing operations

     119,614       —         58       119,672  

Loss from discontinued operations

     (5,213 )     —         (58 )     (5,271 )
                                

Net income

   $ 114,401     $ —       $ —       $ 114,401  
                                

Item 9.01. Financial Statements and Exhibits

 

(d) Exhibits

The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed:

 

  99.1 Press Release issued by BJ’s Wholesale Club, Inc. on November 19, 2008.

 


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.

 

Date: November 19, 2008     BJ’s WHOLESALE CLUB, INC.
    By:   /s/ Frank D. Forward
     

Frank D. Forward

Executive Vice President and Chief Financial Officer