Business Wire | Oct 27, 2021 04:10PM EDT

Boot Barn Holdings, Inc. Announces Second Quarter Fiscal Year 2022 Financial Results and Appoints Jim Watkins Chief Financial Officer

Oct. 27, 2021

IRVINE, Calif.--(BUSINESS WIRE)--Oct. 27, 2021--Boot Barn Holdings, Inc. (NYSE:BOOT) today announced its financial results for the second fiscal quarter ended September 25, 2021.

Due to the impact of COVID-19 on the Company's results in its second fiscal quarter ended September 26, 2020, it has provided the below quarterly highlights in comparison to its second fiscal quarter ended September 28, 2019, two years ago.

For the quarter ended September 25, 2021:

* Net sales increased 67.1% to $312.7 million, compared to the quarter ended September 28, 2019, two years ago. * Compared to the quarter ended September 28, 2019, same store sales increased 53.6%, comprised of an increase in retail store same store sales of 53.0% and an increase in e-commerce same store sales of 57.1%. * Net income was $37.9 million, or $1.25 per diluted share, compared to $7.7 million, or $0.26 per diluted share in the two-year ago period. Net income per diluted share in the current-year and two-year ago periods include an approximately $0.03 and $0.02 per share benefit, respectively, due to income tax accounting for share-based compensation. Excluding the tax benefit in both periods, net income per diluted share in the current-year period was $1.22, compared to $0.24 in the two-year ago period. * The Company opened 3 new stores and closed 1 during the thirteen weeks ended September 25, 2021.

The Company has also provided the below table which includes year-over-year comparisons of retail store sales, e-commerce sales, and total net sales for each of the periods indicated below. In addition, the following table includes retail store sales and e-commerce sales as a percentage of total net sales for the periods indicated below:

% Change % Change Q2 Q2(all $ in thousands) Q2 FY2022 Q2 FY2021 Q2 FY2020 FY2022 FY2022 vs. vs. Q2 Q2 FY2021 FY2020Retail Stores $ 268,403 $ 152,932 $ 158,895 76 % 69 %

E-commerce $ 44,314 $ 31,583 $ 28,288 40 % 57 %

Total Net Sales $ 312,717 $ 184,515 $ 187,183 69 % 67 %

Retail Stores as a % 86 % 83 % 85 %of Net SalesE-commerce as a % of 14 % 17 % 15 %Net Sales Jim Conroy, President and Chief Executive Officer, commented, "Our business continued to grow at an exceptional pace in the second quarter as our teams are doing an excellent job executing our strategic initiatives and capitalizing on heightened consumer demand to expand our market share. We are experiencing strong gains both in stores and online fueled by an increasing customer count, a compelling assortment and a fulfilling shopping experience. The consistency and duration of the outsized growth in sales seems to indicate that we have captured significant market share which should be sustainable. With our sales momentum continuing thus far in the third quarter and inventories in a solid position, we are optimistic about our prospects for the upcoming holiday season. Looking further ahead, we see a long runway for sustained growth and believe the Company is poised to deliver increased shareholder value for years to come."

Operating Results for the Second Quarter Ended September 25, 2021 Compared to the Second Quarter Ended September 26, 2020

* Net sales increased 69.5% to $312.7 million from $184.5 million in the prior-year period. Consolidated same store sales increased 61.7% with retail store same store sales up 66.0% and e-commerce same store sales up 41.6%. The increase in net sales was the result of an increase of 61.7% in consolidated same store sales and the incremental sales from new stores opened over the past twelve months. Net sales in the prior-year period were adversely impacted by decreases in retail store sales resulting from decreased traffic in our stores from customers staying at home in response to the COVID-19 crisis. * Gross profit was $118.2 million, or 37.8% of net sales, compared to $55.5 million, or 30.1% of net sales, in the prior-year period. Gross profit increased primarily due to increased sales. The increase in gross profit rate of 770 basis points was driven by 410 basis points of leverage in buying and occupancy costs as a result of expense leverage on higher sales and a 360-basis point increase in merchandise margin. Merchandise margin increased 360 basis points primarily as a result of better full-price selling and growth in exclusive brand penetration. * Selling, general and administrative expenses were $68.0 million, or 21.8% of net sales, compared to $45.4 million, or 24.6% of net sales, in the prior-year period. The increase in selling, general and administrative expenses was primarily a result of higher store payroll, higher overhead and increased marketing expenses in the current-year period compared to the prior-year period which was impacted by COVID-19. Selling, general and administrative expenses as a percentage of net sales decreased by 290 basis points primarily as a result of expense leverage on higher sales. * Income from operations increased $40.1 million to $50.1 million, or 16.0% of net sales, compared to $10.0 million, or 5.4% of net sales, in the prior-year period. This increase represents 1,060 basis points of improvement in operating profit margin. * Net income was $37.9 million, or $1.25 per diluted share, compared to a net income of $5.8 million, or $0.20 per diluted share in the prior-year period. Net income per diluted share in the current-year period includes an approximately $0.03 per share benefit due to income tax accounting for share-based compensation. Excluding the tax benefit in the current year period, net income per diluted share in the current-year period was $1.22, compared to net income per diluted share of $0.20 in the prior-year period.

Operating Results for the Six Months Ended September 25, 2021 Compared to the Six Months Ended September 26, 2020

* Net sales increased 86.3% to $619.0 million from $332.3 million in the prior-year period. Consolidated same store sales increased 69.1% with retail store same store sales up 81.5% and e-commerce same store sales up 24.4%. The increase in net sales was the result of an increase of 69.1% in consolidated same store sales, the sales contribution from temporarily closed stores that were excluded from the comp base, and the incremental sales from new stores opened over the past twelve months. Net sales in the prior-year period were adversely impacted by decreases in retail store sales resulting from decreased traffic in our stores from customers staying at home in response to the COVID-19 crisis and temporary store closures. * Gross profit was $234.6 million, or 37.9% of net sales, compared to $95.7 million, or 28.8% of net sales, in the prior-year period. Gross profit increased primarily due to increased sales. The increase in gross profit rate of 910 basis points was driven by 520 basis points of leverage in buying and occupancy costs as a result of expense leverage on higher sales and a 390 basis point increase in merchandise margin. Merchandise margin increased 390 basis points primarily as a result of better full-price selling, increased penetration of store sales compared to the prior year, and growth in exclusive brand penetration. * Selling, general and administrative expenses were $130.8 million, or 21.1% of net sales, compared to $83.9 million, or 25.2% of net sales, in the prior-year period. The increase in selling, general and administrative expenses was primarily a result of higher store payroll, higher overhead and increased marketing expenses in the current-year period compared to the prior-year period which was impacted by COVID-19. Selling, general and administrative expenses as a percentage of net sales decreased by 410 basis points primarily as a result of expense leverage on higher sales. * Income from operations increased $92.0 million to $103.8 million, or 16.8% of net sales, compared to $11.8 million, or 3.6% of net sales, in the prior-year period. This increase represents 1,320 basis points of improvement in operating profit margin. * Net income was $78.5 million, or $2.59 per diluted share, compared to net income of $5.3 million, or $0.18 per diluted share in the prior-year period. Net income per diluted share in the current-year period includes a $0.12 per share benefit due to income tax accounting for share-based compensation. Excluding the tax benefit in the current year period, net income per diluted share in the current-year period was $2.47, compared to net income per diluted share of $0.18 in the prior-year period.

Current Business

The following table includes retail store sales, e-commerce sales, and total net sales for the periods indicated below. It also includes the year-over-year change in retail store sales, e-commerce sales, and total net sales for each of the periods indicated below:

% Change % Change Four Four Weeks Weeks Preliminary Four Weeks Four Weeks Q3 FY22 Q3 FY22(all $ in Four Weeks Q3 FY21 Q3 FY20 QTD QTDthousands) Q3 FY22 QTD QTD QTD vs. vs. Four Weeks Four Q3 FY21 Weeks QTD Q3 FY20 QTDRetail Stores $ 97,166 $ 61,311 $ 58,233 58 % 67 %

E-commerce $ 17,804 $ 11,262 $ 10,542 58 % 69 %

Total Net Sales $ 114,970 $ 72,573 $ 68,775 58 % 67 %

Balance Sheet Highlights as of September 25, 2021

* Cash of $39.5 million. * Average inventory per store increased 8.8% on a same store basis compared to September 26, 2020. * Total debt of $50.0 million, including a zero balance under the revolving credit facility. On July 26, 2021, the Company expanded its revolving credit facility to $180.0 million.

Fiscal Year 2022 Outlook

The Company provides the following full-year fiscal 2022 guidance:

* New unit growth of 10%. * Exclusive brand penetration growth of 350 basis points compared to full-year fiscal 2021. * Effective tax rate of 25.4%. * Capital expenditures between $36.0 to $39.0 million.

CFO Appointment

Boot Barn also announced the appointment of Jim Watkins as Chief Financial Officer, effective November 1, 2021. Jim has worked at Boot Barn in a variety of roles since October 2014, most recently as the Company's Senior Vice President, Finance and Investor Relations. Prior to joining Boot Barn, Jim was the Vice President, Corporate Controller and Principal Accounting Officer of Mindspeed Technologies, a publicly traded semiconductor company. Prior to Mindspeed, Jim worked as an auditor at Ernst & Young for 12 years. Jim is a Certified Public Accountant in the state of California.

Greg Hackman will continue as Boot Barn's Executive Vice President and Chief Operating Officer. Greg joined Boot Barn in 2015 as the Chief Financial Officer and has also held the role of Chief Operating Officer since August 2020.

Jim Conroy stated, "I feel fortunate to have the chance to work with both Greg and Jim as we continue to build the Boot Barn business. This new alignment will give Jim the well-deserved acknowledgment of his contributions to the Company and the finance organization. It also demonstrates the leadership capabilities of Greg as he has helped position Jim for this expanded role. Given the outsized growth we are presently experiencing, I believe we will benefit greatly from Greg's more intense focus on sales support functions to help ensure we can continue to scale the business to support the future needs of a national multi-billion-dollar retailer."

Conference Call Information

A conference call to discuss the financial results for the second quarter of fiscal year 2022 is scheduled for today, October 27, 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 November 27, 2021, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 13724517. 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 281 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)

September 25, March 27,

2021 2021

AssetsCurrent assets:Cash and cash equivalents $ 39,545 $ 73,148

Accounts receivable, net 13,202 12,771

Inventories 350,274 275,760

Prepaid expenses and other current assets 38,072 12,777

Total current assets 441,093 374,456

Property and equipment, net 124,021 110,444

Right-of-use assets, net 209,964 186,827

Goodwill 197,502 197,502

Intangible assets, net 60,849 60,885

Other assets 3,990 3,467

Total assets $ 1,037,419 $ 933,581

Liabilities and stockholders' equityCurrent liabilities:Accounts payable 140,530 104,641

Accrued expenses and other current liabilities 96,959 77,615

Short-term lease liabilities 42,992 39,400

Total current liabilities 280,481 221,656

Deferred taxes 15,363 21,993

Long-term portion of notes payable, net 49,399 109,781

Long-term lease liabilities 206,988 181,836

Other liabilities 3,931 3,424

Total liabilities 556,162 538,690

Stockholders' equity:Common stock, $0.0001 par value; September 25,2021 - 100,000 shares authorized, 29,734 shares 3 3 issued; March 27, 2021 - 100,000 sharesauthorized, 29,348 shares issuedPreferred stock, $0.0001 par value; 10,000 shares - - authorized, no shares issued or outstandingAdditional paid-in capital 194,323 183,815

Retained earnings 291,533 213,027

Less: Common stock held in treasury, at cost, 132 (4,602 ) (1,954 )and 96 shares at September 25, 2021 and March 27,2021, respectivelyTotal stockholders' equity 481,257 394,891

Total liabilities and stockholders' equity $ 1,037,419 $ 933,581

Boot Barn Holdings, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Thirteen Weeks Ended

Twenty-Six Weeks Ended

September 25,

September 26,

September 25,

September 26,

2021

2020

2021

2020

Net sales$312,717

$184,515

$619,044

$332,281

Cost of goods sold194,566

129,025

384,466

236,590

Gross profit118,151

55,490

234,578

95,691

Selling, general and administrative expenses68,037

45,448

130,821

83,851

Income from operations50,114

10,042

103,757

11,840

Interest expense1,162

2,383

3,725

5,024

Other income, net14

78

118

142

Income before income taxes48,966

7,737

100,150

6,958

Income tax expense11,105

1,979

21,644

1,690

Net income$37,861

$5,758

$78,506

$5,268

Earnings per share:Basic shares$1.28

$0.20

$2.67

$0.18

Diluted shares$1.25

$0.20

$2.59

$0.18

Weighted average shares outstanding:Basic shares29,555

28,860

29,458

28,843

Diluted shares30,356

29,223

30,312

29,165

Boot Barn Holdings, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Thirteen Weeks Ended Twenty-Six Weeks Ended

September September September September 25, 26, 25, 26,

2021 2020 2021 2020

Net sales $ 312,717 $ 184,515 $ 619,044 $ 332,281

Cost of goods sold 194,566 129,025 384,466 236,590

Gross profit 118,151 55,490 234,578 95,691

Selling, general and 68,037 45,448 130,821 83,851administrative expensesIncome from operations 50,114 10,042 103,757 11,840

Interest expense 1,162 2,383 3,725 5,024

Other income, net 14 78 118 142

Income before income taxes 48,966 7,737 100,150 6,958

Income tax expense 11,105 1,979 21,644 1,690

Net income $ 37,861 $ 5,758 $ 78,506 $ 5,268

Earnings per share:Basic shares $ 1.28 $ 0.20 $ 2.67 $ 0.18

Diluted shares $ 1.25 $ 0.20 $ 2.59 $ 0.18

Weighted average sharesoutstanding:Basic shares 29,555 28,860 29,458 28,843

Diluted shares 30,356 29,223 30,312 29,165

Boot Barn Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Twenty-Six Weeks Ended

September 25,

September 26,

2021

2020

Cash flows from operating activitiesNet income$78,506

$5,268

Adjustments to reconcile net income to net cash provided by operating activities:Depreciation12,871

11,948

Stock-based compensation5,968

3,529

Amortization of intangible assets36

44

Noncash lease expense18,737

16,757

Amortization and write-off of debt issuance fees and debt discount1,189

442

Loss on disposal of assets90

42

(Gain)/Loss on adjustment of right-of-use assets and lease liabilities(247

)

295

Store impairment charge-

384

Deferred taxes(6,630

)

(250

)

Changes in operating assets and liabilities:Accounts receivable, net5,852

3,681

Inventories(74,514

)

27,777

Prepaid expenses and other current assets(25,366

)

(206

)

Other assets(523

)

(450

)

Accounts payable36,312

(9,985

)

Accrued expenses and other current liabilities14,634

568

Other liabilities507

554

Operating leases(18,794

)

(16,507

)

Net cash provided by operating activities$48,628

$43,891

Cash flows from investing activitiesPurchases of property and equipment$(22,251

)

$(14,881

)

Net cash used in investing activities$(22,251

)

$(14,881

)

Cash flows from financing activitiesPayments on line of credit - net$-

$(62,137

)

Repayments on debt and finance lease obligations(61,872

)

(308

)

Tax withholding payments for net share settlement(2,648

)

(517

)

Proceeds from the exercise of stock options4,540

61

Net cash used in financing activities$(59,980

)

$(62,901

)

Net decrease in cash and cash equivalents(33,603

)

(33,891

)

Cash and cash equivalents, beginning of period73,148

69,563

Cash and cash equivalents, end of period$39,545

$35,672

Supplemental disclosures of cash flow information:Cash paid for income taxes$26,005

$1,182

Cash paid for interest$2,495

$4,905

Supplemental disclosure of non-cash activities:Unpaid purchases of property and equipment$7,195

$1,349

Boot Barn Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Twenty-Six Weeks Ended

September September 25, 26,

2021 2020

Cash flows from operating activitiesNet income $ 78,506 $ 5,268

Adjustments to reconcile net income to net cashprovided by operating activities:Depreciation 12,871 11,948

Stock-based compensation 5,968 3,529

Amortization of intangible assets 36 44

Noncash lease expense 18,737 16,757

Amortization and write-off of debt issuance fees and 1,189 442 debt discountLoss on disposal of assets 90 42

(Gain)/Loss on adjustment of right-of-use assets and (247 ) 295 lease liabilitiesStore impairment charge - 384

Deferred taxes (6,630 ) (250 )

Changes in operating assets and liabilities:Accounts receivable, net 5,852 3,681

Inventories (74,514 ) 27,777

Prepaid expenses and other current assets (25,366 ) (206 )

Other assets (523 ) (450 )

Accounts payable 36,312 (9,985 )

Accrued expenses and other current liabilities 14,634 568

Other liabilities 507 554

Operating leases (18,794 ) (16,507 )

Net cash provided by operating activities $ 48,628 $ 43,891

Cash flows from investing activitiesPurchases of property and equipment $ (22,251 ) $ (14,881 )

Net cash used in investing activities $ (22,251 ) $ (14,881 )

Cash flows from financing activitiesPayments on line of credit - net $ - $ (62,137 )

Repayments on debt and finance lease obligations (61,872 ) (308 )

Tax withholding payments for net share settlement (2,648 ) (517 )

Proceeds from the exercise of stock options 4,540 61

Net cash used in financing activities $ (59,980 ) $ (62,901 )

Net decrease in cash and cash equivalents (33,603 ) (33,891 )

Cash and cash equivalents, beginning of period 73,148 69,563

Cash and cash equivalents, end of period $ 39,545 $ 35,672

Supplemental disclosures of cash flow information:Cash paid for income taxes $ 26,005 $ 1,182

Cash paid for interest $ 2,495 $ 4,905

Supplemental disclosure of non-cash activities:Unpaid purchases of property and equipment $ 7,195 $ 1,349

Boot Barn Holdings, Inc.

Store Count

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

September 25,

June 26,

March 27,

December 26,

September 26,

June 27,

March 28,

December 28,

2021

2021

2021

2020

2020

2020

2020

2019

Store Count (BOP)276

273

266

265

264

259

251

248

Opened/Acquired3

3

8

1

1

5

8

3

Closed(1

)

-

(1

)

-

-

-

-

-

Store Count (EOP)278

276

273

266

265

264

259

251

Boot Barn Holdings, Inc.

Store Count

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

September June March December September June March December 25, 26, 27, 26, 26, 27, 28, 28,

2021 2021 2021 2020 2020 2020 2020 2019

Store 276 273 266 265 264 259 251 248Count (BOP)Opened/ 3 3 8 1 1 5 8 3AcquiredClosed (1 ) - (1 ) - - - - -

Store 278 276 273 266 265 264 259 251Count (EOP)Boot Barn Holdings, Inc.

Selected Store Data

Thirteen Weeks EndedSeptember 25,

June 26,

March 27,

December 26,

September 26,

June 27,

March 28,

December 28,

2021

2021

2021

2020

2020

2020

2020

2019

Selected Store Data:Same Store Sales growth/(decline)61.7

%

78.9

%

26.9

%

4.6

%

(5.1

)%

(14.9

)%

(4.7

)%

6.7

%

Stores operating at end of period278

276

273

266

265

264

259

251

Total retail store square footage, end of period (in thousands)2,940

2,915

2,854

2,787

2,779

2,770

2,722

2,639

Average store square footage, end of period10,575

10,563

10,455

10,477

10,486

10,491

10,508

10,514

Average net sales per store (in thousands)$965

$942

$792

$889

$565

$410

$590

$903

Boot Barn Holdings, Inc.

Selected Store Data

Thirteen Weeks Ended September June 26, March December September June 27, March December 25, 27, 26, 26, 28, 28,

2021 2021 2021 2020 2020 2020 2020 2019

SelectedStoreData:Same Store ) ) )Sales 61.7 % 78.9 % 26.9 % 4.6 % (5.1 % (14.9 % (4.7 % 6.7 %growth/(decline)Storesoperating 278 276 273 266 265 264 259 251at end ofperiodTotalretailstoresquare 2,940 2,915 2,854 2,787 2,779 2,770 2,722 2,639footage,end ofperiod (inthousands)Averagestoresquare 10,575 10,563 10,455 10,477 10,486 10,491 10,508 10,514footage,end ofperiodAveragenet sales 965 942 792 889 565 410 590 903per store $ $ $ $ $ $ $ $(inthousands)Debt Covenant EBITDA Reconciliation

(Unaudited)

Thirteen Weeks EndedSeptember 25,2021June 26,2021March 27,2021December 26,2020September 26,2020September 28,2019Boot Barn's Net Income$37,861

$40,645

$24,552

$29,566

$5,758

$7,680

Income tax expense11,105

10,539

6,264

9,909

1,979

1,947

Interest expense1,162

2,563

2,115

2,303

2,383

3,310

Depreciation and intangible asset amortization6,737

6,170

6,162

5,994

6,282

5,027

Boot Barn's EBITDA$56,865

$59,917

$39,093

$47,772

$16,402

$17,964

Non-cash stock-based compensation (a)$2,767

$3,201

$2,147

$1,482

$1,705

$1,180

Non-cash accrual for future award redemptions (b)303

339

(255

)

697

372

(11

)

Loss/(Gain) on disposal of assets (c)94

(4

)

64

(19

)

46

-

(Gain)/loss on adjustment of right-of-use assets and lease liabilities (d)(214

)

(33

)

-

-

295

-

Store impairment charge (e)-

-

-

-

384

-

Boot Barn's Adjusted EBITDA$59,815

$63,420

$41,049

$49,932

$19,204

$19,133

Additional adjustments (f)1,569

1,046

673

165

1,115

1,442

Consolidated EBITDA per Loan Agreements$61,384

$64,466

$41,722

$50,097

$20,319

$20,575

Debt Covenant EBITDA Reconciliation

(Unaudited)

Thirteen Weeks Ended September June 26, March 27, December September September 25, 2021 2021 26, 26, 28, 2021 2020 2020 2019Boot Barn's $ 37,861 $ 40,645 $ 24,552 $ 29,566 $ 5,758 $ 7,680 Net IncomeIncome tax 11,105 10,539 6,264 9,909 1,979 1,947 expenseInterest 1,162 2,563 2,115 2,303 2,383 3,310 expenseDepreciationand 6,737 6,170 6,162 5,994 6,282 5,027 intangible assetamortizationBoot Barn's $ 56,865 $ 59,917 $ 39,093 $ 47,772 $ 16,402 $ 17,964 EBITDA Non-cashstock-based $ 2,767 $ 3,201 $ 2,147 $ 1,482 $ 1,705 $ 1,180 compensation(a)Non-cashaccrual for 303 339 (255 ) 697 372 (11 )future award redemptions(b)Loss/(Gain)on disposal 94 (4 ) 64 (19 ) 46 - of assets(c)(Gain)/lossonadjustmentof (214 ) (33 ) - - 295 - right-of-use assets andleaseliabilities(d)Store - - - - 384 - impairment charge (e)Boot Barn's 59,815 63,420 41,049 49,932 19,204 19,133 Adjusted $ $ $ $ $ $EBITDA Additional 1,569 1,046 673 165 1,115 1,442 adjustments (f)ConsolidatedEBITDA per $ 61,384 $ 64,466 $ 41,722 $ 50,097 $ 20,319 $ 20,575 LoanAgreements________________________(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 loss/(gain) on disposal of assets.

(d)

Represents (gain)/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.

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CONTACT: 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