Burlington Stores, Inc. (NYSE:BURL) Q4 2017 Earnings Conference Call - Final Transcript

May 31, 2018 • 08:30 am ET

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Burlington Stores, Inc. (NYSE:BURL) Q4 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Burlington Stores fourth quarter fiscal 2017 earnings conference call. At this time, all participants will be in a listen-only mode. [Operator's instructions] As a reminder, this conference is being recorded.

It is now my pleasure to turn the call over to David Glick. Please go ahead.

Executive
David Glick

Thank you, operator, and good morning, everyone. We appreciate everyone's participation in today's conference call to discuss Burlington's 2017 fourth fiscal quarter operating results. Our presenters today are Tom Kingsbury, our Chairman and Chief Executive Officer, and Mark Katz, Chief Financial Officer and Principal.

Before I turn the call over to Tom, I would like to inform listeners that this call may not be transcribed, recorded, or broadcast without our express permission. A replay of the call will be available until March 22nd, 2018. We take no responsibility for inaccuracies that may appear in transcripts of this call by third parties. Our remarks and the Q&A that follows are copyrighted today by Burlington Stores.

Remarks made on this call concerning future expectations, events, strategies, objectives, trends, or projected financial results are subject to certain risks and uncertainties. Actual results may differ materially from those that are projected in such forward-looking statements. Such risks and uncertainties include those that are described in the Company's 10-K for fiscal 2016 and in other filings with the SEC, all of which are expressly incorporated herein by reference.

Please note that the financial results and expectations we discuss today are on a continuing operations basis. Reconciliations of the non-GAAP measures we discuss today to GAAP measures are included in today's press release. Finally, it should also be noted that unless otherwise indicated, the non-GAAP results we discuss today are reported on a 13-week and 52-week basis respectively. Moreover, our adjusted net income and adjusted earnings per share for both the fourth quarter and full fiscal year of 2017 exclude any estimated impact from the Tax Cuts and Jobs Act, which was enacted in December 2017. Any estimated impact triggered by the enactment of the Tax Cuts and Jobs Act on our financial results, including the impact of rate reduction, changes in deductibility of certain items, as well as the revaluation of deferred tax liabilities are reflected in our GAAP net income and GAAP EPS results.

Now, here is Tom.

Executive
Tom Kingsbury

Thank you, David. Good morning, everyone. We are extremely pleased to report strong fourth quarter results, driven by a robust 5.9% comparable store sales increase, which is on top of a strong 4.6% increase in fiscal 2016. We passed several significant milestones in fiscal 2017, as we surpassed $6 billion in total sales, expanded our adjusted EBIT margin or operating margin by 90 basis points to 8.6%, and achieved record low aged inventory and record high comparable store inventory turnover levels. We remained focused on elevating our off-price operating model and expect our initiatives to enable us to continue our favorable momentum in fiscal 2018.

Regarding the fourth quarter, on a 13-week