Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

v3.20.1
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
3 Months Ended
May 02, 2020
CONDENSED CONSOLIDATED FINANCIAL INFORMATION  
CONDENSED CONSOLIDATED FINANCIAL INFORMATION

11. CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Our debt covenants restrict MSI, and certain subsidiaries of MSI, from various activities including the incurrence of additional debt, payment of dividends and the repurchase of MSI’s capital stock (subject to certain exceptions), among other things. The following condensed consolidated financial information represents the financial information of MSI and its wholly-owned subsidiaries subject to these restrictions. The information is presented in accordance with the requirements of Rule 12-04 under the SEC’s Regulation S-X.

Michaels Stores, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

May 2,

February 1,

May 4,

ASSETS

    

2020

2020

2019

Current assets:

Cash and equivalents

$

926,037

$

409,173

$

245,944

Merchandise inventories

 

1,110,760

 

1,097,109

 

1,101,729

Prepaid expenses and other current assets

 

74,682

 

92,601

 

101,423

Total current assets

 

2,111,479

 

1,598,883

 

1,449,096

Property and equipment, net

 

420,263

 

430,432

 

433,882

Operating lease assets

1,576,877

1,610,013

1,613,719

Goodwill

 

94,290

 

94,290

 

112,069

Other intangible assets, net

64,511

66,417

16,960

Other assets

 

39,273

 

37,146

 

52,647

Total assets

$

4,306,693

$

3,837,181

$

3,678,373

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current liabilities:

Accounts payable

$

443,911

$

476,298

$

406,947

Accrued liabilities and other

 

338,730

 

346,657

 

353,961

Current portion of operating lease liabilities

347,068

306,796

300,489

Current portion of long-term debt

 

624,900

 

24,900

 

24,900

Income taxes payable

 

9,378

 

41,236

 

55,339

Total current liabilities

 

1,763,987

 

1,195,887

 

1,141,636

Long-term debt

 

2,639,051

 

2,644,460

 

2,675,602

Long-term operating lease liabilities

1,327,997

1,357,821

1,380,175

Other liabilities

 

146,605

 

141,582

 

125,761

Total stockholders’ deficit

 

(1,570,947)

 

(1,502,569)

 

(1,644,801)

Total liabilities and stockholders’ deficit

$

4,306,693

$

3,837,181

$

3,678,373

Michaels Stores, Inc.

Condensed Consolidated Statements of Comprehensive (Loss) Income

(in thousands)

13 Weeks Ended

May 2,

May 4,

    

2020

    

2019

Net sales

$

799,888

$

1,093,720

Cost of sales and occupancy expense

 

578,066

676,080

Gross profit

 

221,822

 

417,640

Selling, general and administrative

 

281,105

320,387

Restructure charges

3,087

Store pre-opening costs

 

1,159

1,226

Operating (loss) income

 

(60,442)

 

92,940

Interest and other expense, net

 

35,201

40,469

(Loss) income before income taxes

 

(95,643)

 

52,471

Income taxes

 

(32,317)

14,624

Net (loss) income

$

(63,326)

$

37,847

Other comprehensive (loss) income, net of tax:

Foreign currency and cash flow hedges

 

(14,336)

 

(4,826)

Comprehensive (loss) income

$

(77,662)

$

33,021

Michaels Stores, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

13 Weeks Ended

May 2,

May 4,

2020

2019

Cash flows from operating activities:

Net cash (used in) provided by operating activities

$

(55,930)

$

32,162

Cash flows from investing activities:

Additions to property and equipment

 

(21,856)

 

(25,101)

Proceeds from sale of building

875

Net cash used in investing activities

(20,981)

(25,101)

Cash flows from financing activities:

Net repayments of debt

 

(6,225)

 

(6,225)

Net borrowings of debt

600,000

Net cash provided by (used in) financing activities

 

593,775

 

(6,225)

Net change in cash and equivalents

 

516,864

 

836

Cash and equivalents at beginning of period

 

409,173

 

245,108

Cash and equivalents at end of period

$

926,037

$

245,944