Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CLAIRES STORES INC | d307398d8k.htm |
EXHIBIT 99.1
CLAIRE’S STORES, INC. AND SUBSIDIARIES
(EXCLUDING UNRESTRICTED SUBSIDIARIES)
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
| October 29, 2016 |
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| ASSETS |
||||
| Current assets: |
||||
| Cash and cash equivalents |
$ | 40,516 | ||
| Inventories |
151,713 | |||
| Prepaid expenses |
18,502 | |||
| Other current assets |
27,677 | |||
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|
|
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| Total current assets |
238,408 | |||
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| Property and equipment: |
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| Furniture, fixtures and equipment |
240,079 | |||
| Leasehold improvements |
300,340 | |||
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| 540,419 | ||||
| Accumulated depreciation and amortization |
(397,760 | ) | ||
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| 142,659 | ||||
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|
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| Leased property under capital lease: |
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| Land and building |
18,055 | |||
| Accumulated depreciation and amortization |
(6,088 | ) | ||
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|
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| 11,967 | ||||
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|
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| Intercompany receivables |
(84,402 | ) | ||
| Goodwill |
1,171,922 | |||
| Intangible assets, net of accumulated amortization |
308,344 | |||
| Other assets |
42,483 | |||
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| 1,438,347 | ||||
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|
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| Total assets |
$ | 1,831,381 | ||
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| LIABILITIES AND STOCKHOLDER’S DEFICIT |
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| Current liabilities: |
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| Current revolving credit facility |
$ | 48,327 | ||
| Current portion of long-term debt |
25,742 | |||
| Trade accounts payable |
71,056 | |||
| Income taxes payable |
7,819 | |||
| Accrued interest payable |
24,492 | |||
| Accrued expenses and other current liabilities |
76,547 | |||
|
|
|
|||
| Total current liabilities |
253,983 | |||
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|
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| Long-term debt |
1,921,717 | |||
| Revolving credit facility |
67,871 | |||
| Obligation under capital lease |
16,476 | |||
| Deferred tax liability |
101,206 | |||
| Deferred rent expense |
34,589 | |||
| Unfavorable lease obligations and other long-term liabilities |
10,643 | |||
|
|
|
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| 2,152,502 | ||||
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|
|
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| Commitments and contingencies |
||||
| Stockholder’s deficit: |
||||
| Common stock |
— | |||
| Additional paid-in capital |
545,736 | |||
| Accumulated other comprehensive loss, net of tax |
(50,747 | ) | ||
| Accumulated deficit |
(1,070,093 | ) | ||
|
|
|
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| (575,104 | ) | |||
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|
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| Total liabilities and stockholder’s deficit |
$ | 1,831,381 | ||
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CLAIRE’S STORES, INC. AND SUBSIDIARIES
(EXCLUDING UNRESTRICTED SUBSIDIARIES)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(in thousands)
| Three Months Ended October 29, 2016 |
Three Months Ended October 31, 2015 |
Nine Months Ended October 29, 2016 |
Nine Months Ended October 31, 2015 |
|||||||||||||
| Net sales |
$ | 312,041 | $ | 332,677 | $ | 928,860 | $ | 1,000,259 | ||||||||
| Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below) |
166,833 | 179,724 | 495,869 | 531,652 | ||||||||||||
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|||||||||
| Gross profit |
145,208 | 152,953 | 432,991 | 468,607 | ||||||||||||
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| Other expenses: |
||||||||||||||||
| Selling, general and administrative |
112,964 | 118,442 | 333,058 | 347,829 | ||||||||||||
| Depreciation and amortization |
14,061 | 15,464 | 41,917 | 45,652 | ||||||||||||
| Impairment of assets |
142,271 | — | 142,271 | — | ||||||||||||
| Severance and transaction-related costs |
205 | 200 | 1,903 | 1,027 | ||||||||||||
| Other income, net |
(3,900 | ) | (2,185 | ) | (5,493 | ) | (4,651 | ) | ||||||||
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| 265,601 | 131,921 | 513,656 | 389,857 | |||||||||||||
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| Operating (loss) income |
(120,393 | ) | 21,032 | (80,665 | ) | 78,750 | ||||||||||
| Gain on early debt extinguishment |
317,323 | — | 317,323 | — | ||||||||||||
| Interest expense, net |
47,101 | 55,296 | 157,803 | 164,760 | ||||||||||||
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|||||||||
| Income (loss) before income tax (benefit) expense |
149,829 | (34,264 | ) | 78,855 | (86,010 | ) | ||||||||||
| Income tax (benefit) expense |
(749 | ) | 1,675 | (888 | ) | 4,216 | ||||||||||
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| Net income (loss) |
$ | 150,578 | $ | (35,939 | ) | $ | 79,743 | $ | (90,226 | ) | ||||||
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CLAIRE’S STORES, INC. AND SUBSIDIARIES
(EXCLUDING UNRESTRICTED SUBSIDIARIES)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
| Nine Months Ended October 29, 2016 |
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| Cash flows from operating activities: |
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| Net income |
$ | 79,743 | ||
| Adjustments to reconcile net income to net cash used in operating activities: |
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| Depreciation and amortization |
41,917 | |||
| Impairment of assets |
142,271 | |||
| Amortization of lease rights and other assets |
2,054 | |||
| Amortization of debt issuance costs |
6,176 | |||
| Accretion of debt premium |
(2,029 | ) | ||
| Non-cash in kind interest expense |
9,156 | |||
| Net unfavorable accretion of lease obligations |
(190 | ) | ||
| Loss on sale/retirement of property and equipment, net |
228 | |||
| Gain on early debt extinguishment |
(317,323 | ) | ||
| Gain on sale of intangible assets/lease rights |
(303 | ) | ||
| Stock-based compensation benefit |
(11 | ) | ||
| (Increase) decrease in: |
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| Inventories |
(1,249 | ) | ||
| Prepaid expenses |
(4,960 | ) | ||
| Other assets |
(1,658 | ) | ||
| Increase (decrease) in: |
||||
| Trade accounts payable |
(1,353 | ) | ||
| Income taxes payable |
355 | |||
| Accrued interest payable |
(23,416 | ) | ||
| Accrued expenses and other liabilities |
(9,374 | ) | ||
| Deferred income taxes |
(2,377 | ) | ||
| Deferred rent expense |
(1,274 | ) | ||
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| Net cash used in operating activities |
(83,617 | ) | ||
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| Cash flows from investing activities: |
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| Acquisition of property and equipment |
(12,351 | ) | ||
| Acquisition of intangible assets/lease rights |
(110 | ) | ||
| Proceeds from sale of intangible assets/lease rights |
303 | |||
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| Net cash used in investing activities |
(12,158 | ) | ||
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| Cash flows from financing activities: |
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| Proceeds from revolving credit facilities |
165,427 | |||
| Payments on revolving credit facilities |
(40,935 | ) | ||
| Payment of debt issuance costs |
(11,272 | ) | ||
| Principal payments on capital lease |
(176 | ) | ||
| Capital contribution from Parent |
11,550 | |||
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| Net cash provided by financing activities |
124,594 | |||
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| Effect of foreign currency exchange rate changes on cash and cash equivalents |
(7,174 | ) | ||
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| Net increase in cash and cash equivalents |
21,645 | |||
| Cash and cash equivalents, at beginning of period |
18,871 | |||
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| Cash and cash equivalents, at end of period |
$ | 40,516 | ||
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Claire’s (Gibraltar) Holdings Limited
Unaudited Condensed Consolidated Balance Sheet
(in thousands)
| October 29, 2016 |
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| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ | 20,494 | ||
| Inventories |
57,695 | |||
| Prepaid expenses |
14,599 | |||
| Other current assets |
11,191 | |||
|
|
|
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| Total current assets |
103,979 | |||
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| Property and equipment: |
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| Furniture, fixtures and equipment |
65,657 | |||
| Leasehold improvements |
96,188 | |||
|
|
|
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| 161,845 | ||||
| Accumulated depreciation and amortization |
(112,340 | ) | ||
|
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|
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| 49,505 | ||||
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|
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| Intercompany receivables |
112,466 | |||
| Goodwill |
184,405 | |||
| Intangible assets, net |
204,510 | |||
| Other assets |
35,626 | |||
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| 537,007 | ||||
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| Total assets |
$ | 690,491 | ||
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| LIABILITIES AND STOCKHOLDER’S EQUITY |
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| Current liabilities: |
||||
| Current revolving credit facility |
$ | 48,327 | ||
| Trade accounts payable |
44,847 | |||
| Income taxes payable |
6,449 | |||
| Accrued interest payable |
289 | |||
| Accrued expenses and other current liabilities |
32,649 | |||
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|
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| Total current liabilities |
132,561 | |||
|
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|
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| Long-term debt |
108,905 | |||
| Deferred tax liability |
8,000 | |||
| Deferred rent expense |
8,972 | |||
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|
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| 125,877 | ||||
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| Stockholder’s equity: |
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| Common stock |
2 | |||
| Additional paid in capital |
770,859 | |||
| Accumulated other comprehensive loss, net of tax |
(50,747 | ) | ||
| Accumulated deficit |
(288,061 | ) | ||
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| 432,053 | ||||
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| Total liabilities and stockholder’s equity |
$ | 690,491 | ||
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Claire’s (Gibraltar) Holdings Limited
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands)
| Three Months Ended October 29, 2016 |
Nine Months Ended October 29, 2016 |
|||||||
| Net sales |
$ | 119,156 | $ | 341,895 | ||||
| Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below) |
61,871 | 183,394 | ||||||
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| Gross profit |
57,285 | 158,501 | ||||||
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| Other expenses: |
||||||||
| Selling, general and administrative |
45,583 | 135,151 | ||||||
| Depreciation and amortization |
5,434 | 15,895 | ||||||
| Impairment of assets |
138,271 | 138,271 | ||||||
| Severance and transaction-related costs |
205 | 557 | ||||||
| Other income |
(1,627 | ) | (5,229 | ) | ||||
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| 187,866 | 284,645 | |||||||
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| Operating loss |
(130,581 | ) | (126,144 | ) | ||||
| Interest expense, net |
766 | 1,393 | ||||||
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| Loss before income taxes |
(131,347 | ) | (127,537 | ) | ||||
| Income tax expense |
98 | 790 | ||||||
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| Net loss |
(131,445 | ) | (128,327 | ) | ||||
| Foreign currency translation adjustments |
(1,421 | ) | (1,870 | ) | ||||
| Net loss on intra-entity foreign currency transactions, net of tax |
(3,632 | ) | (1,443 | ) | ||||
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| Other comprehensive loss |
(5,053 | ) | (3,313 | ) | ||||
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| Comprehensive loss |
$ | (136,498 | ) | $ | (131,640 | ) | ||
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CLSIP Holdings LLC
Unaudited Condensed Statement of Cash Flows
(in thousands)
| Nine Months Ended October 29, 2016 |
||||
| Net cash provided by operating activities |
$ | — | ||
| Net cash provided by investing activities |
— | |||
| Net cash provided by financing activities |
— | |||
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| Net increase in cash and cash equivalents |
— | |||
| Cash and cash equivalents, at beginning of period |
— | |||
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| Cash and cash equivalents, at end of period |
$ | — | ||
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CLSIP LLC
Unaudited Condensed Statement of Cash Flows
(in thousands)
| Nine Months Ended October 29, 2016 |
||||
| Net cash provided by operating activities |
$ | — | ||
| Net cash provided by investing activities |
— | |||
| Net cash provided by financing activities |
— | |||
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| Net increase in cash and cash equivalents |
— | |||
| Cash and cash equivalents, at beginning of period |
— | |||
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| Cash and cash equivalents, at end of period |
$ | — | ||
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