Big Lots Inc. (NYSE:BIG) Q2 2020 Earnings Conference Call - Final Transcript

Aug 28, 2020 • 08:00 am ET


Big Lots Inc. (NYSE:BIG) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, good morning, and welcome to the Big Lots Second Quarter Conference Call. I would like to introduce today's first speaker, Vice President of Investor Relations, Andy Regrut.

Andrew D. Regrut

Good morning. Thank you for joining us for our Second Quarter Conference Call. With me here today in Columbus are, Bruce Thorn, our President and CEO and Jonathan Ramsden, Executive Vice President and Chief Financial and Administrative Officer.

Before we get started, I'd like to remind you that any forward-looking statements we make on today's call involve risks and uncertainties and are subject to our Safe Harbor provisions as stated in our press release and SEC filings. And that actual results can differ materially from those described in our forward-looking statements.

All commentary today is focused on adjusted non-GAAP results. For the second quarter of fiscal 2020, this excludes a one-time after tax benefit totaling $341.9 million or $8.54 per diluted share, associated with the distribution centers sold as part of the previously announced sale/leasebacks transactions that closed during the quarter. Reconciliations of GAAP to non-GAAP adjusted results are available in today's press release.

This morning, Bruce will open the call with a few comments, Jonathan will review the financials, and Bruce will complete our prepared remarks before taking your questions.

I'll now turn the call over to Bruce.

Bruce Thorn

Thank you, Andy, and good morning, everyone. I am delighted with the unprecedented results we reported this morning and what our team has accomplished in the first half of this year. From an operating perspective, the second quarter was record-breaking, with comparable sales increasing 31.3%, the best quarterly comp in our Company's history; and adjusted EPS of $2.75, which represents the most earnings for us in a second quarter and five times what we delivered a year ago.

After two excellent quarters, I could not be prouder of how we have responded to this crisis, with our first priority always being to maintain a safe and healthy environment for everyone. Our outstanding results have been made possible by exceptional team work across the entire organization and I want to thank our associates in our stores, the distribution centers and our corporate headquarters for their dedication, compassion and tireless efforts.

We have quickly adapted and found success, while taking care of each other and our customer, and doing the right thing. I want to thank our customers for their tremendous loyalty, and our suppliers for their great partnership during these turbulent and unpredictable times.

As we discussed on our last call, when the crisis began to unfold nearly six months ago, our leadership team aligned on guiding principles for navigating these uncertain times. It started with putting health and safety first, ensuring we did the right things to make our stores and workplaces as safe as possible.

Our overall objective has been to emerge from this crisis as a stronger and better company and these principles have helped us do that. Regarding health and safety, we've taken numerous steps guided by outstanding external