Boot Barn Holdings, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended December 30, 2017. For the quarter, the company reported net sales of $224,732,000 compared to $199,431,000 a year ago. Net sales grew 13%, driven by strong retail same-store sales and modest growth in the company's total e-commerce business. Income from operations was $24,395,000 compared to $20,863,000 a year ago. Income before income taxes was $20,574,000 compared to $17,226,000 a year ago. Net income was $20,149,000 or $0.73 per diluted share compared to $10,507,000 or $0.39 per diluted share a year ago. Adjusted income from operations was $20,863,000 compared to $23,488,000 a year ago. Adjusted EBITDA was $29,314,000 compared to $26,201,000 a year ago. EBITDA was $28,658,000 compared to $25,070,000 a year ago. Same store sales increased 5.2%, with stores outperforming e-commerce sales. The company's same-store sales performance was broad-based, with growth in virtually every major product category and strength in almost every geography across the country, with significantly improved performance in Texas.


For the nine months period, the company reported net sales of $507,183,000 compared to $466,813,000 a year ago. Income from operations was $34,973,000 compared to $29,755,000 a year ago. Income before income taxes was $23,705,000 compared to $18,907,000 a year ago. Net income was $22,024,000 or $0.81 per diluted share compared to $11,609,000 or $0.43 per diluted share a year ago. Net cash provided by operating activities was $72,642,000 compared to $68,163,000 a year ago. Purchases of property and equipment were $18,676,000 compared to $17,698,000 a year ago.

For the fiscal fourth quarter ending March 31, 2018 the company expects: Same store sales growth of 4.0% to 5.0%. Net sales to be between $159.5 million and $161 million. Income from operations is expected to be $8.3 million to $8.6 million, which includes an estimated $300,000 of secondary offering costs. Net income is expected to be between $4.2 million to $4.5 million, which is based on a blended tax rate of 5.8% for the quarter. The company's fourth quarter effective tax rate of 36.2% is expected to be reduced by an estimated $1.4 million tax benefit related to stock option exercises, resulting primarily from the secondary offering that closed on January 22, 2018. The company expects net income per diluted share to be $0.15 to $0.16 based on an estimated $28.4 million weighted-average diluted shares outstanding for the fourth quarter.

For the fiscal year ending March 31, 2018, the company expects income from operations between $43.2 million and $43.5 million, which includes an estimated $0.3 million of secondary offering costs. Net income between $26.2 million and $26.5 million, which includes a $6.8 million tax benefit from the revaluation of deferred tax liabilities and an updated annual tax rate pursuant to tax reform. Net income per diluted share of $0.95 to $0.96 based on 27.7 million weighted average diluted shares outstanding compared to the company's November 2, 2017 outlook of $0.57 to $0.61 which assumed 27.2 million weighted average diluted shares outstanding. The company expects to generate between $10 million and $15 million of free cash flow after investments in CapEx for the new stores, et cetera in 2018. And if the company add even 13 or 14 stores at $400,000 of CapEx, that's still $6 million. The company still going to generate a free cash flow.

The company estimates effective tax rate will be 25% for the year ending March 30, 2019, which is the company's full fiscal year under the new tax law.

The company expects to open 10 new stores, including the acquisition of the four Wood's Boots stores.