Exhibit 99.1

Boot Barn Holdings, Inc. Announces Third Quarter Fiscal Year 2021 Financial Results

IRVINE, Calif.--(BUSINESS WIRE)--January 25, 2021--Boot Barn Holdings, Inc. (NYSE: BOOT) today announced its financial results for the third fiscal quarter ended December 26, 2020.

For the quarter ended December 26, 2020:

  • Net sales increased 6.5% to $302.3 million.
  • Same store sales increased 4.6%, comprised of an increase in retail store same store sales of 1.9% and an increase in e-commerce sales of 16.3%.
  • Net income was $29.6 million, or $1.00 per diluted share, compared to net income of $24.8 million, or $0.85 per diluted share in the prior-year period. Net income per diluted share in the current-year period includes an approximately $0.01 per share benefit due to income tax accounting for share-based compensation compared to a $0.04 per share benefit in the prior-year period. Excluding the tax benefit in both periods, net income per diluted share in the current-year period was $0.99, compared to $0.81 in the prior-year period.
  • Cash and cash equivalents were $76.3 million.

Jim Conroy, Chief Executive Officer, commented, “Our strong third quarter results against a difficult economic backdrop demonstrate the power of our business model. The work we’ve done over the last several years successfully executing our key strategic initiatives has provided the foundation to navigate the ongoing headwinds from COVID-19 and deliver mid-single digit same store sales growth and a 150-basis point improvement in operating margin. We are encouraged that same store sales have accelerated in the fourth quarter with continued strength in margin. While the near term is likely to remain volatile, we believe our merchandising strategies, omni-channel capabilities and organizational expertise, combined with the adjustments we’ve made to our operating model during the pandemic, have us well positioned to build on our recent accomplishments and head into fiscal 2022 with good momentum.”

Operating Results for the Third Quarter Ended December 26, 2020

  • Net sales increased 6.5% to $302.3 million from $284.0 million in the prior-year period. Consolidated same store sales increased 4.6% with retail store same store sales up 1.9% and e-commerce same store sales up 16.3%. The increase in net sales was the result of an increase of 4.6% in same store sales and the sales contribution from new and acquired stores over the past twelve months.
  • Gross profit was $106.8 million, or 35.3% of net sales, compared to $97.0 million, or 34.2% of net sales, in the prior-year period. Gross profit increased primarily due to increased sales. The increase in gross profit rate of 120 basis points was driven by a 150-basis point increase in merchandise margin, partially offset by 30 basis points of deleverage in buying and occupancy costs. Merchandise margin increased 150 basis points primarily as a result of better full-price selling and reduced promotions.

  • Selling, general and administrative expenses were $65.2 million, or 21.6% of net sales, compared to $62.1 million, or 21.9% of net sales, in the prior-year period. The increase in selling, general and administrative expenses was primarily a result of additional costs to support higher sales and expenses for both new and acquired stores. Selling, general and administrative expenses as a percentage of net sales decreased by 30 basis points primarily as a result of expense leverage on higher sales.
  • Income from operations increased 19.0% to $41.6 million, or 13.8% of net sales, compared to $35.0 million, or 12.3% of net sales, in the prior-year period. This increase represents approximately 150 basis points of improvement in operating profit margin.
  • Net income was $29.6 million, or $1.00 per diluted share, compared to net income of $24.8 million, or $0.85 per diluted share in the prior-year period. Net income per diluted share in the current-year period includes an approximately $0.01 per share benefit due to income tax accounting for share-based compensation compared to a $0.04 per share benefit in the prior-year period. Excluding the tax benefit in both periods, net income per diluted share in the current-year period was $0.99, compared to $0.81 in the prior-year period.

Operating Results for the Nine Months Ended December 26, 2020

  • Net sales decreased 3.4% to $634.6 million from $656.9 million in the prior-year period. Consolidated same store sales decreased 3.2% with retail store same store sales down 8.9% and e-commerce same store sales up 24.9%. The decrease in retail store sales was primarily due to decreased traffic in our stores that resulted from customers staying at home in response to the COVID-19 crisis and temporary store closures.
  • Gross profit was $202.5 million, or 31.9% of net sales, compared to $218.5 million, or 33.3% of net sales, in the prior-year period. Gross profit decreased primarily due to decreased sales resulting from the COVID-19 crisis. The decrease in gross profit rate was driven by 140 basis points of deleverage in buying and occupancy costs primarily as a result of lower sales.
  • Selling, general and administrative expenses were $149.0 million, or 23.5% of net sales, compared to $154.6 million, or 23.5% of net sales, in the prior-year period. The decrease in selling, general and administrative expenses was primarily a result of reduced marketing expenses and lower payroll.
  • Income from operations decreased 16.4% to $53.5 million, or 8.4% of net sales, compared to $64.0 million, or 9.7% of net sales, in the prior-year period. The decline in income from operations is primarily a result of the negative impact on sales and gross margin from decreased traffic in our stores that resulted from customers staying at home in response to the COVID-19 crisis and temporary store closures.
  • Net income was $34.8 million, or $1.19 per diluted share, compared to net income of $42.2 million, or $1.45 per diluted share in the prior-year period. Net income per diluted share in the current-year period includes an approximately $0.01 per share benefit due to income tax accounting for share-based compensation compared to a $0.07 per share benefit in the prior-year period. Excluding the tax benefit in both periods, net income per diluted share in the current-year period was $1.18, compared to $1.38 in the prior-year period.

Current Business

The following table includes same store sales, net sales and e-commerce as a percentage of net sales for the periods indicated below:



Four Weeks
Fiscal October

Four Weeks
Fiscal November

Five Weeks
Fiscal December

Thirteen Weeks Ended
December 26, 2020


Preliminary
Four Weeks
Fiscal January

Retail Stores SSS

0%


1%


3%


2%



20%


E-commerce SSS

12%


20%


16%


16%



7%


Total SSS

2%


4%


6%


5%



17%














 
Net Sales Increase

6%


8%


6%


6%



21%


E-commerce as % of Net Sales

16%


18%


23%


20%



16%














 

Fiscal Year 2021 Outlook

Due to the ongoing uncertainty created by COVID-19, the Company is not providing fourth quarter and fiscal year 2021 guidance at this time.

Conference Call Information

A conference call to discuss the financial results for the third quarter of fiscal year 2021 is scheduled for today, January 25, 2021, at 4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in participating in the call are invited to (877) 451-6152. 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 February 25, 2021, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 13715296. 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 265 stores in 36 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.


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: the effect of COVID-19 on our business operations, growth strategies, store traffic, employee availability, financial condition, liquidity and cash flow; decreases in consumer spending due to declines in consumer confidence, local economic conditions or changes in consumer preferences; the Company’s ability to effectively execute on its growth strategy; and the Company’s 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)





 


December 26,
March 28,


2020


2020

Assets





Current assets:





Cash and cash equivalents
$

76,342


$

69,563

Accounts receivable, net

13,876



12,087

Inventories

246,008



288,717

Prepaid expenses and other current assets

15,008



14,284

Total current assets

351,234



384,651

Property and equipment, net

109,793



109,603

Right-of-use assets, net

170,311



170,243

Goodwill

197,502



197,502

Intangible assets, net

60,907



60,974

Other assets

2,425



1,738

Total assets
$

892,172


$

924,711

Liabilities and stockholders’ equity





Current liabilities:





Line of credit
$


$

129,900

Accounts payable

103,095



95,334

Accrued expenses and other current liabilities

94,831



52,612

Short-term lease liabilities

36,796



34,779

Total current liabilities

234,722



312,625

Deferred taxes

18,651



19,801

Long-term portion of notes payable, net

109,591



109,022

Long-term lease liabilities

165,176



160,935

Other liabilities

1,424



635

Total liabilities

529,564



603,018







 
Stockholders’ equity:





Common stock, $0.0001 par value; December 26, 2020 - 100,000 shares
authorized, 29,044 shares issued; March 28, 2020 - 100,000 shares authorized,
28,880 shares issued


3



3

Preferred stock, $0.0001 par value; 10,000 shares authorized, no shares issued or outstanding



Additional paid-in capital

175,865



169,249

Retained earnings

188,475



153,641

Less: Common stock held in treasury, at cost, 93 and 71 shares at December 26,
2020 and March 28, 2020, respectively


(1,735)



(1,200)

Total stockholders’ equity

362,608



321,693

Total liabilities and stockholders’ equity
$

892,172


$

924,711


Boot Barn Holdings, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)




 


Thirteen Weeks Ended
Thirty-Nine Weeks Ended


December 26,
December 28,
December 26,
December 28,


2020


2019


2020


2019

Net sales
$

302,338


$

283,997


$

634,619


$

656,947

Cost of goods sold

195,529



186,961



432,119



438,417

Gross profit

106,809



97,036



202,500



218,530

Selling, general and administrative expenses

65,183



62,059



149,034



154,558

Income from operations

41,626



34,977



53,466



63,972

Interest expense, net

2,303



3,155



7,327



10,369

Other income, net

152



37



294



51

Income before income taxes

39,475



31,859



46,433



53,654

Income tax expense

9,909



7,040



11,599



11,434

Net income
$

29,566


$

24,819


$

34,834


$

42,220













 
Earnings per share:











Basic shares
$

1.02


$

0.87


$

1.21


$

1.48

Diluted shares
$

1.00


$

0.85


$

1.19


$

1.45

Weighted average shares outstanding:











Basic shares

28,912



28,665



28,866



28,516

Diluted shares

29,581



29,367



29,275



29,188


Boot Barn Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)



 


Thirty-Nine Weeks Ended


December 26,
December 28,


2020


2019

Cash flows from operating activities





Net income
$

34,834


$

42,220

Adjustments to reconcile net income to net cash provided by operating activities:





Depreciation

17,919



15,384

Stock-based compensation

5,011



3,326

Amortization of intangible assets

67



127

Amortization of right-of-use assets

25,342



22,899

Amortization of debt issuance fees and debt discount

663



725

Loss on disposal of property and equipment

23



389

Loss/(gain) on adjustment of right-of-use assets and lease liabilities

295



(186)

Store impairment charge

384



Deferred taxes

(1,150)



(736)

Changes in operating assets and liabilities, net of acquisition:





Accounts receivable, net

4,242



290

Inventories

42,709



(32,257)

Prepaid expenses and other current assets

(818)



(1,885)

Other assets

(687)



(559)

Accounts payable

9,753



17,063

Accrued expenses and other current liabilities

42,219



31,929

Other liabilities

789



396

Operating leases

(24,991)



(22,324)

Net cash provided by operating activities
$

156,604


$

76,801

Cash flows from investing activities





Purchases of property and equipment
$

(20,508)


$

(27,550)

Acquisition of business, net of cash acquired



(3,688)

Insurance recoveries for property and equipment



717

Net cash used in investing activities
$

(20,508)


$

(30,521)

Cash flows from financing activities





(Payments)/Borrowings on line of credit - net
$

(129,900)


$

45,000

Repayments on debt and finance lease obligations

(487)



(65,456)

Debt issuance fees paid



(1,221)

Tax withholding payments for net share settlement

(535)



(483)

Proceeds from the exercise of stock options

1,605



4,712

Net cash used in financing activities
$

(129,317)


$

(17,448)







 
Net increase in cash and cash equivalents

6,779



28,832

Cash and cash equivalents, beginning of period

69,563



16,614

Cash and cash equivalents, end of period
$

76,342


$

45,446







 
Supplemental disclosures of cash flow information:





Cash paid for income taxes
$

3,684


$

8,139

Cash paid for interest
$

6,731


$

9,472

Supplemental disclosure of non-cash activities:





Unpaid purchases of property and equipment
$

3,703


$

2,659


Boot Barn Holdings, Inc.

Store Count
















 

Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended

December 26,
September 26,
June 27,
March 28,
December 28,
September 28,
June 29,
March 30,

2020

 

2020

 

2020

 

2020

 

2019

 

2019

 

2019

 

2019

Store Count (BOP)

265


264


259


251


248


240


240


234

Opened/Acquired

1


1


5


8


3


8


1


6

Closed







(1)


Store Count (EOP)

266


265


264


259


251


248


240


240

Boot Barn Holdings, Inc.

Selected Store Data



 


Thirteen Weeks Ended



December 26,

September 26,

June 27,

March 28,

December 28,

September 28,

June 29,

March 30,



2020

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2019


Selected Store Data:
























Same Store Sales growth/(decline)

4.6

%


(5.1)

%


(14.9)

%


(4.7)

%


6.7

%


7.8

%


9.4

%


8.7

%

Stores operating at end of period

266



265



264



259



251



248



240



240


Total retail store square footage, end of period (in thousands)

2,787



2,779



2,770



2,722



2,639



2,616



2,537



2,539


Average store square footage, end of period

10,477



10,486



10,491



10,508



10,514



10,549



10,570



10,580


Average net sales per store (in thousands)
$

563


$

565


$

410


$

590


$

903


$

635


$

660


$

666



Debt Covenant EBITDA Reconciliation

(Unaudited)

 


 

Thirteen Weeks Ended

December 26,
2020

September 26,
2020

June 27,
2020

March 28,
2020

December 28,
2019

Boot Barn's Net Income/(Loss) $

29,566


$

5,758


$

(490)


$

5,729


$

24,819


Income tax expense/(benefit)

9,909



1,979



(289)



930



7,040


Interest expense, net

2,303



2,383



2,641



2,941



3,155


Depreciation and intangible asset amortization

5,994



6,282



5,710



5,872



5,682


Boot Barn's EBITDA $

47,772


$

16,402


$

7,572


$

15,472


$

40,696

















 
Non-cash stock-based compensation (a) $

1,482


$

1,705


$

1,824


$

1,582


$

1,181


Non-cash accrual for future award redemptions (b)

697



372



(302)



(447)



575


(Gain)/loss on disposal of assets (c)

(19)



46



(4)



28



377


Loss on adjustment of right-of-use assets and lease liabilities (d)

-



295



-



-



7


Store impairment charge (e)

-



384



-



191



-


Boot Barn's Adjusted EBITDA $

49,932


$

19,204


$

9,090


$

16,826


$

42,836

















 
Additional adjustments (f)

165



1,115



1,590



2,269



1,404


Consolidated EBITDA per Loan Agreements $

50,097


$

20,319


$

10,680


$

19,095


$

44,240

















 
(a) Represents non-cash compensation expenses related to stock options, restricted stock units and performance share 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 (gain)/loss on disposal of assets.
(d) Represents loss on adjustment of right-of-use assets and lease liabilities.
(e) Represents store impairment charges recorded in order to reduce the carrying amount of the assets to their estimated fair values.
(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.

 

Contacts

Investors:
ICR, Inc.
Brendon Frey, 203-682-8216
BootBarnIR@icrinc.com

or

Media:
Boot Barn Holdings, Inc.
Jim Watkins, 949-453-4428
Senior Vice President, Finance & Investor Relations
BootBarnIRMedia@bootbarn.com

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