Big Lots 2011 Annual Report Download - page 136

20
Canadian Segment Highlights
• Net sales from the date of acquisition (July 18, 2012) through January 28, 2012 were $62.1 million.
• Operating loss was $12.2 million.
The following table compares components of our consolidated statements of operations as a percentage of
net sales:
2011 2010 2009
Net sales ....................................................... 100.0% 100.0% 100.0%
Cost of sales (exclusive of depreciation expense shown separately below) .... 60.2 59.4 59.4
Gross margin .................................................... 39.8 40.6 40.6
Selling and administrative expenses .................................. 31.4 31.8 32.4
Depreciation expense ............................................. 1.7 1.6 1.6
Gain on sale of real estate .......................................... 0.0 0.0 (0.3)
Operating profit .................................................. 6.6 7.2 6.9
Interest expense .................................................. (0.1) (0.1) (0.0)
Other income (expense) ........................................... (0.0) 0.0 0.0
Income from continuing operations before income taxes .................. 6.6 7.2 6.8
Income tax expense ............................................... 2.6 2.7 2.6
Income from continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.0 4.5 4.3
Loss from discontinued operations, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . (0.0) (0.0) (0.0)
Net income ..................................................... 4.0% 4.5% 4.2%
See the discussion below under the captions “2011 Compared To 2010” and “2010 Compared To 2009” for
additional details regarding the specific components of our operating results.
Selling and administrative expenses in 2009 were increased by $4.0 million (10 basis points), pretax, due to a
legal settlement agreement. In addition, the sale in 2009 of a company-owned and operated store in California
resulted in a pretax gain of $13.0 million (30 basis points).
Seasonality
As discussed in “Item 1. Business - Seasonality” of this Form 10-K, our financial results fluctuate from
quarter to quarter depending on various factors such as timing of new or closed stores, timing and extent
of advertisements and promotions, and timing of holidays. We expect the Christmas holiday selling season
to continue to produce a significant portion of our sales and operating profits. If our sales performance is
significantly better or worse during the Christmas holiday selling season, we would expect a more pronounced
impact on our annual financial results than if our sales performance is significantly better or worse in a
different season.
The following table sets forth the seasonality of net sales and operating profit for 2011, 2010, and 2009 by
fiscal quarter:
First Second Third Fourth
Fiscal Year 2011
Net sales as a percentage of full year . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.6% 22.4% 21.9% 32.1%
Operating profit as a percentage of full year . . . . . . . . . . . . . . . . . . . . . . 25.0 17.3 2.6 55.1
Fiscal Year 2010
Net sales as a percentage of full year . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.9% 23.1% 21.3% 30.7%
Operating profit as a percentage of full year . . . . . . . . . . . . . . . . . . . . . . 25.2 17.7 7.5 49.6
Fiscal Year 2009
Net sales as a percentage of full year . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.1% 23.0% 21.9% 31.0%
Operating profit as a percentage of full year . . . . . . . . . . . . . . . . . . . . . . 18.5 14.7 14.6 52.2