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Big Lots Reports Fourth Quarter Results

                   Big Lots Reports Fourth Quarter Results

COMPANY PROVIDES GUIDANCE FOR FISCAL 2013

PR Newswire

COLUMBUS, Ohio, March 6, 2013

COLUMBUS, Ohio, March 6, 2013 /PRNewswire/ --Big Lots, Inc. (NYSE: BIG) today
reported income from continuing operations of $120.3 million, or $2.09 per
diluted share, for the fourth quarter of fiscal 2012 ended February 2, 2013.
This compares to guidance issued on December 4, 2012 which called for net
income from continuing operations of $1.91 to $2.10 per diluted share for the
fourth quarter of fiscal 2012. Income from continuing operations was $114.7
million, or $1.75 per diluted share, for the fourth quarter of fiscal 2011.

(Logo: http://photos.prnewswire.com/prnh/20011026/BIGLOTSLOGO )

FOURTH QUARTER HIGHLIGHTS

  oIncome from continuing operations of $2.09 per diluted share, a 19%
    increase compared to $1.75 per diluted share last year
  oOperating profit of $197 million, a 3% increase compared to last year
  oTotal sales increase of 5% to $1.8 billion
  oCanadian operations post first profitable quarter since acquisition in
    July 2011

Fourth Quarter Results

U.S. Operations

Net sales for U.S. operations for the fourth quarter of fiscal 2012 increased
4.4% to $1,704.8 million, compared to $1,632.9 million for the same period of
fiscal 2011. Comparable store sales for U.S. stores open at least fifteen
months decreased 3.5% for the quarter. Income from continuing U.S. operations
totaled $120.1 million, or $2.08 per diluted share (non-GAAP), compared to
income from continuing U.S. operations of $119.8 million, $1.83 per diluted
share (non-GAAP), for the same period of fiscal 2011. As a reminder, the
fourth quarter of fiscal 2012 benefited from an extra week of results due to
the retail calendar shift. We believe the extra week benefited fourth quarter
results by an estimated $0.05 per diluted share.

Canadian Operations

Net sales for Canadian operations for the fourth quarter of fiscal 2012
totaled $48.6 million and net income of $0.2 million, or $0.00 per diluted
share (non-GAAP), compared to net sales of $36.6 million and a net loss of
$5.1 million, or $0.08 per diluted share (non-GAAP) for the same period of
fiscal 2011.

Inventory and Cash Management

On a consolidated basis, Inventory ended the fourth quarter of fiscal 2012 at
$918 million, compared to $825 million for the fourth quarter of fiscal 2011.
The growth in inventory was driven by an increase in U.S. store count, an
increase in per store inventory in our U.S. stores, and growth and more fully
developed inventory assortments in our Canadian stores.

We ended the fourth quarter of fiscal 2012 with $61 million of Cash and Cash
Equivalents and $171 million of borrowings under our credit facility compared
to $69 million of Cash and Cash Equivalents and $66 million of borrowings
under our credit facility as of the end of the fourth quarter of fiscal 2011.
Our use of cash generated by our U.S. operations and debt incurred during the
last 12 months was focused on share repurchase activity and funding our
Canadian operations.

Share Repurchase Activity

There was not a Share Repurchase program authorized or in place for the fourth
quarter of fiscal 2012. For the full year of fiscal 2012, we invested $299
million to repurchase 8.1 million of our common shares, or approximately 13%
of our outstanding share base as of the beginning of fiscal 2012. Common
shares acquired through the repurchase program are available to meet
obligations under equity compensation plans and for general corporate
purposes. 

FISCAL 2012 HIGHLIGHTS

  oAdjusted EPS from continuing operations of $2.99 per diluted share
    (non-GAAP)
  oTotal sales of $5.4 billion, an increase of 3.8% compared to fiscal 2011
  oGenerated $151 million of cash flow (cash provided by operating activities
    less investing activities)
  oOpened 87 new stores in the U.S. and ended fiscal 2012 with 1,574 stores
    (U.S. and Canada)

For the full year of fiscal 2012, ended February 2, 2013, income from
continuing operations totaled $177.2 million, or $2.93 per diluted share. As
previously disclosed in our March 2, 2012, press release, we incurred an
after-tax charge of $3.4 million during the first quarter of fiscal 2012
related to an inventory accounting change associated with the successful
implementation of new retail inventory systems. Excluding this non-recurring,
non-cash charge, adjusted income from continuing operations for fiscal 2012
ended February 2, 2013 totaled $180.6 million, or $2.99 per diluted share
(non-GAAP), compared to income from continuing operations of $207.2 million,
or $2.99 per diluted share, for the same period in fiscal 2011 (see
reconciliation below). Discontinued operations activity was minimal for the
fourth quarter and full year period of fiscal 2012 and the corresponding
periods in fiscal 2011.

                       EPS From Continuing Operations ^(1)
                       Q4 2012         Q4 2011        FY 2012        FY 2011
U.S. Operations        $2.08           $1.83          $3.15          $3.18
Add back: Inventory    -               -              $0.06          -
charge
U.S. Operations -      $2.08           $1.83          $3.21          $3.18
adjusted basis
Canadian Operations    $0.00           ($0.08)        ($0.22)        ($0.19)
^(2)
Consolidated -         $2.09           $1.75          $2.99          $2.99
adjusted basis
(1) Non-GAAP
(2) Canadian operations were acquired on July 18, 2011; FY '11 results
include ownership and financial results since that date.
 Based on materiality, we have not provided pro forma financial results.
 Note: See detailed segment reporting below.

2013 GUIDANCE

  oFiscal 2013 income from continuing operations projected to be $3.05 to
    $3.25 per diluted share, compared to fiscal 2012 adjusted income from
    continuing operations of $2.99 per diluted share (non-GAAP)
  oCash flow estimated to be approximately $180 million
  oForecasting fiscal 2013 sales increase of 2% to 3%

We estimate fiscal 2013 consolidated income from continuing operations will be
in the range of $3.05 to $3.25 per diluted share compared to adjusted income
from continuing operations of $2.99 per diluted share for fiscal 2012
(non-GAAP, see reconciliation below). This guidance is based on an estimated
total consolidated company sales increase in the range of 2% to 3% for fiscal
2013. Starting in fiscal 2013, we will begin reporting comparable store sales
for our Canadian operations purchased in July 2011. Our consolidated company
(U.S. and Canada) comparable store sales guidance is estimated to be in the
range of flat to 1%. The table below summarizes our comparable store sales and
total sales guidance. We estimate this financial performance will result in
cash flow of approximately $180 million in fiscal 2013. As a reminder, we are
operating under a 52-week retail calendar compared to 53-weeks in fiscal 2012.

U.S. Operations

We estimate income from continuing operations to be in the range of $3.15 to
$3.30 per diluted share (non-GAAP) compared to fiscal 2012 adjusted income
from continuing operations of $3.21 per diluted share (non-GAAP). This
guidance is based on U.S. comparable store sales in the range of flat to 1%
and a total U.S. sales increase in the range of 2% to 3% in fiscal 2013. From
a real estate perspective, we expect to open 50 new stores and close 45
existing locations in the U.S. during fiscal 2013.

Canadian Operations

Canadian sales are expected to be in the range of $180 to $190 million for
fiscal 2013, resulting in a net loss in the range of $3 to $6 million, or
$0.05 to $0.10 per diluted share (non-GAAP). This compares to a net loss for
fiscal 2012 of $13.5 million, or $0.22 per diluted share (non-GAAP). Our sales
guidance for fiscal 2013 is based on a Canadian comparable store sales
increase in the range of 15% to 22% and a total Canadian sales increase in the
range of 16% to 23%. From a real estate perspective, we expect to open 2 to 3
new stores in Canada under the Big Lots banner and potentially close a similar
number of locations.

Fiscal Q1 2013 Guidance

For the first quarter of fiscal 2013, we estimate our consolidated income from
continuing operations will be in the range of $0.53 to $0.65 per diluted
share, compared to adjusted income from continuing operations of $0.68 per
diluted share (non-GAAP) for the first quarter of fiscal 2012. This guidance
is based on an estimated comparable store sales decrease for the consolidated
company in the range of 1% to 3% and a total sales increase in the range of 1%
to 3% for the first quarter of 2013. As a reminder, our adjusted results for
the first quarter of fiscal 2012 exclude the non-recurring, non-cash after-tax
inventory charge of $3.4 million (non-GAAP, see reconciliation below).

We estimate first quarter income from U.S. operations in a range of $0.63 to
$0.70 per diluted share (non-GAAP), compared to last year's adjusted income
from continuing operations of $0.77 per diluted share (non-GAAP). This
guidance is based on an estimated U.S. comparable store sales decrease in the
low single digits and a total U.S. sales increase in the low single digits.

Canadian sales are expected to be in the range of $35 to $39 million for the
first quarter of fiscal 2013, resulting in a net loss in the range of $3 to $6
million, or $0.05 to $0.10 per diluted share (non-GAAP). This compares to a
net loss for the first quarter of fiscal 2012 of $0.09 per diluted share
(non-GAAP). Our guidance for the first quarter of fiscal 2013 is based on an
estimated Canadian comparable store sales increase in the range of 9% to 20%
and a total Canadian sales increase in the range of 9% to 20%.

EPS from Continuing Operations  Q1                      Full Year
(non-GAAP)                      2013 Guidance  2012     2013 Guidance  2012
U.S. Operations                 $0.63 - $0.70  $0.72    $3.15 - $3.30  $3.15
Add back: Inventory charge      -              $0.05    -              $0.06
U.S. Operations - adjusted      $0.63 - $0.70  $0.77    $3.15 - $3.30  $3.21
basis
Canadian Operations             ($0.10) -      ($0.09)  ($0.10) -      ($0.22)
                                ($0.05)                 ($0.05)
Consolidated - adjusted basis   $0.53 - $0.65  $0.68    $3.05 - $3.25  $2.99

Sales Guidance          Q1 2013                   Full Year 2013
                        Total Sales  Comp         Total Sales   Comp
U.S. Operations         +1% to +3%   -1% to -3%   +2% to +3%    Flat to +1%
Canadian Operations     +9% to +20%  +9% to +20%  +16% to +23%  +15% to +22%
Consolidated Operations +1% to +3%   -1% to -3%   +2% to +3%    Flat to +1%

Conference Call/Webcast

We will host a conference call today at 8:00 a.m. to discuss our financial
results for the fourth quarter and provide commentary on our outlook for
fiscal 2013. We invite you to listen to the webcast of the conference call
through the Investor Relations section of our website (www.biglots.com).

If you are unable to join the live webcast, an archive of the call will be
available through the Investor Relations section of our website
(www.biglots.com) beginning two hours after the call ends and will remain
available through midnight on Wednesday, March 20. A replay of the call will
be available beginning today at 12:00 noon through March 20 at midnight by
dialing: 1.888.203.1112 (United States and Canada) or 1.719.457.0820
(International). The Replay Confirmation Code is 8792412. All times are
Eastern Time.

Big Lots is North America's largest broadline closeout retailer. As of the end
of the fourth quarter of fiscal 2012, we operated 1,495 BIG LOTS stores in the
48 contiguous United States and 79 LIQUIDATION WORLD and LW stores in Canada.
Wholesale operations are conducted through BIG LOTS WHOLESALE, CONSOLIDATED
INTERNATIONAL, and WISCONSIN TOY and with online sales at
www.biglotswholesale.com.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements in this release are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, and such
statements are intended to qualify for the protection of the safe harbor
provided by the Act. The words "anticipate," "estimate," "expect,"
"objective," "goal," "project," "intend," "plan," "believe," "will," "should,"
"may," "target," "forecast," "guidance," "outlook" and similar expressions
generally identify forward-looking statements. Similarly, descriptions of our
objectives, strategies, plans, goals or targets are also forward-looking
statements. Forward-looking statements relate to the expectations of
management as to future occurrences and trends, including statements
expressing optimism or pessimism about future operating results or events and
projected sales, earnings, capital expenditures and business strategy.
Forward-looking statements are based upon a number of assumptions concerning
future conditions that may ultimately prove to be inaccurate. Forward-looking
statements are and will be based upon management's then-current views and
assumptions regarding future events and operating performance, and are
applicable only as of the dates of such statements. Although we believe the
expectations expressed in forward-looking statements are based on reasonable
assumptions within the bounds of our knowledge, forward-looking statements, by
their nature, involve risks, uncertainties and other factors, any one or a
combination of which could materially affect our business, financial
condition, results of operations or liquidity.

Forward-looking statements that we make herein and in other reports and
releases are not guarantees of future performance and actual results may
differ materially from those discussed in such forward-looking statements as a
result of various factors, including, but not limited to, the current economic
and credit crisis, the cost of goods, our inability to successfully execute
strategic initiatives, competitive pressures, economic pressures on our
customers and us, the availability of brand name closeout merchandise, trade
restrictions, freight costs, the risks discussed in the Risk Factors section
of our most recent Annual Report on Form 10-K, and other factors discussed
from time to time in our other filings with the SEC, including Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. This release should be
read in conjunction with such filings, and you should consider all of these
risks, uncertainties and other factors carefully in evaluating forward-looking
statements.

You are cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date thereof. We undertake no obligation to
publicly update forward-looking statements, whether as a result of new
information, future events or otherwise. You are advised, however, to consult
any further disclosures we make on related subjects in our public
announcements and SEC filings.

BIG LOTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
                                                  FEBRUARY 2   JANUARY 28
                                                  2013         2012
                                                  (Unaudited)
    ASSETS
Current assets:
    Cash and cash equivalents                     $60,581      $68,547
    Inventories                                   918,023      825,195
    Deferred income taxes                         37,696       42,784
    Other current assets                          74,330       70,130
     Total current assets                       1,090,630    1,006,656
Property and equipment - net                      593,562      572,767
Deferred income taxes                             0            6,549
Goodwill                                          13,522       12,282
Other assets                                      55,912       43,056
                                                  $1,753,626   $1,641,310
    LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
    Accounts payable                              $393,652     $350,117
    Property, payroll and other taxes             74,973       74,396
    Accrued operating expenses                    53,788       56,088
    Insurance reserves                            36,861       35,159
    KB bankruptcy lease obligation                3,069        3,115
    Accrued salaries and wages                    26,753       29,170
    Income taxes payable                          40,538       36,775
     Total current liabilities                  629,634      584,820
Long-term obligations under bank credit facility  171,200      65,900
Deferred income taxes                             2,693        0
Deferred rent                                     73,658       59,320
Insurance reserves                                63,332       49,794
Unrecognized tax benefits                         16,335       18,681
Other liabilities                                 38,632       39,562
Shareholders' equity                              758,142      823,233
                                                  $1,753,626   $1,641,310



BIG LOTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
                                 14 WEEKS ENDED           13 WEEKS ENDED
                                 FEBRUARY 2, 2013         JANUARY 28, 2012
                                               %                       %
                                 (Unaudited)              (Unaudited)
Net sales                        $1,753,396    100.0      $1,669,574   100.0
    Gross margin                 694,776       39.6       671,382      40.2
    Selling and                  469,679       26.8       455,437      27.3
    administrative expenses
    Depreciation expense         28,137        1.6        25,315       1.5
Operating profit                 196,960       11.2       190,630      11.4
    Interest expense             (1,470)       (0.1)      (773)        (0.0)
    Other income (expense)       6             0.0        (120)        (0.0)
Income from continuing
operations before income         195,496       11.1       189,737      11.4
taxes
    Income tax expense           75,213        4.3        74,988       4.5
Income from continuing           120,283       6.9        114,749      6.9
operations
    Income (loss) from
    discontinued operations,
    net of tax
     expense (benefit) of
    $0 and $(19),                4             0.0        (29)         (0.0)
    respectively
Net income                       $120,287      6.9        $114,720     6.9
Earnings per common share -
basic (a)
    Continuing operations        $2.10                    $1.79
    Discontinued operations      0.00                     0.00
    Net income                   $2.10                    $1.79
Earnings per common share -
diluted (a)
    Continuing operations        $2.09                    $1.75
    Discontinued operations      0.00                     0.00
    Net income                   $2.09                    $1.75
Weighted average common
shares outstanding
    Basic                        57,266                   64,140
    Dilutive effect of           418                      1,258
    share-based awards
    Diluted                      57,684                   65,398
(a) The earnings per share for Continuing Operations, Discontinued Operations
    and Net Income are separately calculated in accordance with accounting
   pronouncements; therefore, the sum of earnings per share for Continuing
    Operations and Discontinued Operations may differ, due to rounding, from
   the calculated earnings per share of Net Income.



BIG LOTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
                                  53 WEEKS ENDED          52 WEEKS ENDED
                                  FEBRUARY 2, 2013        JANUARY 28, 2012
                                               %                       %
                                  (Unaudited)
Net sales                         $5,400,119   100.0      $5,202,269   100.0
      Gross margin                2,117,650    39.2       2,070,407    39.8
      Selling and
      administrative              1,712,910    31.7       1,634,532    31.4
      expenses
      Depreciation expense        106,286      2.0        90,280       1.7
Operating profit                  298,454      5.5        345,595      6.6
      Interest expense            (4,192)      (0.1)      (3,530)      (0.1)
      Other income (expense)      51           0.0        (173)        (0.0)
Income from continuing
operations before income          294,313      5.5        341,892      6.6
taxes
      Income tax expense         117,148      2.2        134,657      2.6
Income from continuing            177,165      3.3        207,235      4.0
operations
      Loss from discontinued
      operations, net of tax
       benefit of $32 and     (44)         (0.0)      (171)        (0.0)
      $112, respectively
Net income                       $177,121     3.3        $207,064     4.0
Earnings per common share -
basic (a)
      Continuing operations       $2.96                   $3.03
      Discontinued operations     0.00                    0.00
      Net income                 $2.96                   $3.03
Earnings per common share -
diluted (a)
      Continuing operations       $2.93                   $2.99
      Discontinued operations     0.00                    0.00
      Net income                 $2.93                   $2.98
Weighted average common
shares outstanding
      Basic                       59,852                  68,316
      Dilutive effect of          624                     1,103
      share-based awards
      Diluted                     60,476                  69,419
(a)   The earnings per share for Continuing Operations, Discontinued
      Operations and Net Income are separately calculated in accordance with
     accounting pronouncements; therefore, the sum of earnings per share for
      Continuing Operations and Discontinued Operations may differ, due to
     rounding, from the calculated earnings per share of Net Income.

BIG LOTS, INC. AND SUBSIDIARIES
SEGMENT OPERATING PERFORMANCE
(In thousands, except per share data)
                       14 WEEKS       13 WEEKS     14 WEEKS        13 WEEKS
                       ENDED          ENDED        ENDED           ENDED
                       FEBRUARY 2,    JANUARY 28,  FEBRUARY 2,     JANUARY 28,
                       2013           2012         2013            2012
                       U.S.           U.S.         Canada          Canada
                       (Unaudited)    (Unaudited)  (Unaudited)     (Unaudited)
Net sales              $1,704,834     $1,632,933   $48,562         $36,641
    Gross margin       675,882        657,470      18,894          13,912
    Selling and
    administrative     451,577        437,818      18,102          17,619
    expenses
    Depreciation       27,397         24,072       740             1,243
    expense
Operating profit       196,908        195,580      52              (4,950)
(loss)
    Interest expense   (1,469)        (773)        (1)             0
    Other income       0              0            6               (120)
    (expense)
Income (loss) from
continuing
                       195,439        194,807      57              (5,070)
operations before
income taxes
    Income tax
    expense            75,351         74,988       (138)           0
    (benefit)
Income (loss) from
continuing             120,088        119,819      195             (5,070)
operations
Diluted earnings
(loss) per common
share                  $2.08          $1.83        $0.00           ($0.08)

from continuing
operations (b)
                       53 WEEKS       52 WEEKS     53 WEEKS        52 WEEKS
                       ENDED          ENDED        ENDED           ENDED (a)
                       FEBRUARY 2,    JANUARY 28,  FEBRUARY 2,     JANUARY 28,
                       2013           2012         2013            2012
                       U.S.           U.S.         Canada          Canada
                       (Unaudited)                 (Unaudited)
Net sales              $5,245,272     $5,140,164   $154,847        $62,105
    Gross margin       2,060,008      2,046,055    57,642          24,352
    Selling and
    administrative     1,644,566      1,599,772    68,344          34,760
    expenses
    Depreciation       103,295        88,469       2,991           1,811
    expense
Operating profit       312,147        357,814      (13,693)    (c) (12,219)
(loss)
    Interest expense   (4,190)        (2,739)      (2)             (791)
    Other income       2              163          49              (336)
    (expense)
Income (loss) from
continuing
operations             307,959        355,238      (13,646)        (13,346)

before income taxes
    Income tax
    expense            117,286        134,657      (138)           0
    (benefit)
Income (loss) from
continuing             190,673        220,581      (13,508)        (13,346)
operations
Diluted earnings
(loss) per common
share                  $3.15          $3.18        ($0.22)         ($0.19)

from continuing
operations (b)
(a) The results of the Canadian operating segment reflect activities from the
    date of acquisition (July 18, 2011) through the period end.
    The diluted earnings (loss) per share from continuing operations by
(b) segment are separately calculated; therefore, the sum of diluted earnings
    (loss) per share from continuing operations by segment may differ, due to
   rounding, from the calculated consolidated diluted (loss) earnings per
    share from continuing operations. Diluted earnings (loss) per share from
   continuing operations by segment is a "non-GAAP financial measure," as
    that term is defined by Rule 101 of Regulation G (17 CFR Part 244) and
   Item 10 of Regulation S-K (17 CFR Part 229), which our management believes
    is useful information to investors.
(c) The operating loss for the Canadian operating segment of $13,693 for the
    53 weeks ended February 2, 2013 equates to $13,659 in Canadian dollars.




BIG LOTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
                                          14 WEEKS ENDED    13 WEEKS ENDED
                                          FEBRUARY 2, 2013  JANUARY 28, 2012
                                          (Unaudited)     (Unaudited)
   Net cash provided by operating        $317,038          $298,907
  activities
   Net cash used in investing            (30,743)          (28,797)
  activities
   Net cash used in financing            (291,992)         (261,425)
  activities
   Impact of foreign currency on cash  21                (85)
(Decrease) Increase in cash and cash      (5,676)           8,600
equivalents
  Cash and cash equivalents:
   Beginning of period                   66,257            59,947
   End of period                         $60,581           $68,547

BIG LOTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
                                          53 WEEKS ENDED    52 WEEKS ENDED
                                          FEBRUARY 2, 2013  JANUARY 28, 2012
                                          (Unaudited)
  Net cash provided by operating        $281,133          $318,471
 activities
  Net cash used in investing activities  (130,357)         (120,712)
  Net cash used in financing activities  (158,274)         (306,255)
  Impact of foreign currency on cash   (468)             (496)
Decrease in cash and cash equivalents     (7,966)           (108,992)
 Cash and cash equivalents:
  Beginning of period                    68,547            177,539
  End of period                          $60,581           $68,547

BIG LOTS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)

The following table reconciles gross margin, gross margin rate, operating
profit, operating profit rate, income tax expense, effective income tax rate,
income from continuing operations, net income, diluted earnings per share from
continuing operations, and diluted earnings per share for fiscal 2012 for our
consolidated and U.S. segment results (GAAP financial measures) to adjusted
gross margin, adjusted gross margin rate, adjusted operating profit, adjusted
operating profit rate, adjusted income tax expense, adjusted effective income
tax rate, adjusted income from continuing operations, adjusted net income,
adjusted diluted earnings per share from continuing operations, and adjusted
diluted earnings per share (non-GAAP financial measures).

Fiscal 2012 - Fifty-Three weeks ended
February 2, 2013
Consolidated Results
                                        Adjustment to
                                        exclude                As Adjusted
                        As reported
                                        change in inventory    (non-GAAP)

                                        accounting principle
Gross margin          $  2,117,650  $            $    
                                           5,574            2,123,224
Gross margin rate     39.2%           0.1%                   39.3%
Operating profit      298,454         5,574                  304,028
Operating profit       5.5%            0.1%                   5.6%
rate
Income tax expense    117,148         2,186                  119,334
Effective income tax   39.8%           0.0%                   39.8%
rate
Income from continuing 177,165         3,388                  180,553
operations
Net income            177,121         3,388                  180,509
Diluted earnings per
share from
 continuing        $         $            $       
operations             2.93                0.06             2.99
Diluted earnings per   $         $            $       
share                 2.93                0.06             2.98
U.S. Segment Results
                                        Adjustment to
                                        exclude                As Adjusted
                        As reported
                                        change in inventory    (non-GAAP)

                                        accounting principle
Gross margin          $  2,060,008  $            $    
                                           5,574            2,065,582
Gross margin rate     39.3%           0.1%                   39.4%
Operating profit      312,147         5,574                  317,721
Operating profit       6.0%            0.1%                   6.1%
rate
Income tax expense    117,286         2,186                  119,472
Effective income tax   38.1%           0.0%                   38.1%
rate
Income from continuing 190,673         3,388                  194,061
operations
Diluted earnings per
share from
 continuing        $         $            $       
operations             3.15                0.06            3.21

The adjusted gross margin, adjusted gross margin rate, adjusted operating
profit, adjusted operating profit rate, adjusted income tax expense, adjusted
effective income tax rate, adjusted income from continuing operations,
adjusted net income, adjusted diluted earnings per share from continuing
operations, and adjusted diluted earnings per share are "non-GAAP financial
measures" as that term is defined by Rule 101 of Regulation G (17 CFR Part
244) and Item 10 of Regulation S-K (17 CFR Part 229). These non-GAAP financial
measures exclude from the most directly comparable financial measures
calculated and presented in accordance with accounting principles generally
accepted in the United States of America ("GAAP") a pretax charge for a change
in an accounting principle associated with our implementation of new inventory
management information systems of $5,574 ($3,388, net of tax).

Our management believes that the disclosure of these non-GAAP financial
measures provides useful information to investors because the non-GAAP
financial measures present an alternative and appropriate method for measuring
our operating performance, excluding certain items included in the most
directly comparable GAAP financial measures. Our management uses these
non-GAAP financial measures, along with the most directly comparable GAAP
financial measures, in evaluating our operating performance.

SOURCE Big Lots, Inc.

Website: http://www.biglots.com
Contact: Andrew D. Regrut, Director, Investor Relations, +1-614-278-6622
 
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