[ACCESSWIRE]
Upcoming AWS Coverage on Kimco Realty
LONDON, UK / ACCESSWIRE / April 11, 2017 / Active Wall St. announces its post-earnings coverage on At Home Group Inc. (NYSE: HOME). The Company announced its fourth quarter and fiscal 2017 financial results on March 28, 2017. The home decor retailer surpassed bottom-line expectations. Register with us now for your free membership at:
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One of At Home Group's competitors within the REIT - Retail space, Kimco Realty Corp. (NYSE: KIM), is expected to report its fiscal quarter ending March 2017 earnings results on April 26, 2017 after market close. AWS will be initiating a research report on Kimco Realty following the release of its next earnings results.
Today, AWS is promoting its earnings coverage on HOME; touching on KIM. Get our free coverage by signing up to:
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Earnings Reviewed
For the thirteen weeks ended January 28, 2017, At Home's net sales increased 26.4% to $234.5 million compared to $185.5 million in the thirteen weeks ended January 30, 2016 driven by the net addition of 23 stores since Q4 FY16 and a comparable store sales increase of 7.1%. During Q4 FY17, At Home opened one new store and ended the year with 123 stores in 30 states, representing a 23.0% increase in total stores since Q4 FY16.
For Q4 FY17, At Home's gross profit increased 28.6% to $75.7 million from $58.9 million in the prior year's same period. Gross margin increased 60 basis points to 32.3% primarily due to a reduction in product-related costs driven by operational improvements partially offset by costs associated with investments in incremental inventory. Adjusted EBITDA increased 33.6% to $45.2 million for the thirteen weeks ended January 28, 2017.
During Q4 FY17, At Home's operating income totaled $29.3 million compared to $19.7 million in Q4 FY16. The Company's operating margin increased 190 basis points to 12.5% primarily driven by leverage of its corporate overhead expenses as well as improvement in gross margin. At Home's adjusted operating income1 increased 61.6% to $31.9 million and 13.6% of net sales in the reported quarter compared to $19.8 million and 10.7% of net sales in the same quarter last year.
At Home's net income in Q4 FY17 was 15.3 million. The Company's net income in Q4 FY16 of $58.8 million was significantly impacted by an income tax benefit recognized during the period. At Home's pro-forma adjusted net income increased 101.8% to $17.4 million compared to $8.6 million in the year ago comparable period. At Home's EPS was $0.25 compared to $1.12 in the Q4 FY16. Pro-forma adjusted EPS was $0.28 compared to $0.14 in the year ago same quarter. The Company's EPS numbers surpassed market estimates of $0.27 per share.
Yearly Results
For fiscal year ended January 28, 2017, At Home's net sales increased 23.1% to $765.6 million from $622.2 million in fiscal year ended January 30, 2016, driven by the net addition of 23 stores in FY17 and a comparable store sales increase of 3.7%.
At Home's FY17 gross profit increased 23.5% to $247.5 million from $200.4 million in FY16. Gross margin increased 10 basis points to 32.3% primarily due to a reduction in product-related costs driven by operational improvements.
At Home's net income was $27.1 million in FY17, which included a $2.7 million loss on the extinguishment of debt in Q3 FY17, compared to net income of $3.6 million in FY16, which included a $36.0 million pre-tax loss on the extinguishment of debt in Q2 FY16. The Company's pro-forma adjusted net income increased 43.5% to $36.5 million in FY17 compared to $25.4 million in the prior year. EPS was $0.48 in FY17 compared to $0.07 in FY16. Pro-forma adjusted EPS was $0.59 versus $0.41 in the prior year.
Balance Sheet Highlights
As of January 28, 2017, At Home's net inventory increased 38.2% to $243.8 million compared to January 30, 2016 driven by a 23.0% increase in the number of stores, an acceleration in inventory purchases which includes the impact of an earlier Chinese New Year and incremental investments in low-priced inventory. The Company's total liquidity (cash plus $108.4 million of availability under its revolving credit facility) was $115.5 million. At Home's total debt was $310.2 million compared to $438.5 million as of January 30, 2016. In addition, there was $101.6 million outstanding under its revolving credit facility as of January 28, 2017.
Fiscal 2018 Outlook
For FY18, At Home is projecting net sales to be in a range of $903 million to $910 million. The net sales growth outlook is based on 28 gross and 25 net new store openings and an assumed comparable store sales increase of 2.5% to 3.0%. The Company's net income is expected to be in a range of $39 million to $41 million based on an assumed 37.5% annual effective tax rate for FY18 and interest expense of approximately $20 million. Pro-forma adjusted net income is expected to be in a range of $45.5 million to $47.5 million, representing growth of 25% to 30% over FY17. EPS is expected to be in a range of $0.61 to $0.64, with pro-forma adjusted EPS in a range of $0.72 to $0.75. Net capital expenditures are expected to be in a range of $110 million to $130 million.
Stock Performance
On Monday, April 10, 2017, the stock closed the trading session at $15.96, climbing 2.90% from its previous closing price of $15.51. A total volume of 115.63 thousand shares have exchanged hands. At Home Group's stock price advanced 10.99% in the last month, 13.35% in the past three months, and 17.35% in the previous six months. Furthermore, on a year to date basis, the stock gained 9.09%. Shares of the company have a PE ratio of 34.62.
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SOURCE: Active Wall Street
