Annual report pursuant to Section 13 and 15(d)

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

v3.20.4
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
12 Months Ended
Jan. 30, 2021
CONDENSED CONSOLIDATED FINANCIAL INFORMATION  
CONDENSED CONSOLIDATED FINANCIAL INFORMATION

15. 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)

January 30,

February 1,

ASSETS

    

2021

2020

Current assets:

Cash and equivalents

$

1,193,597

$

409,173

Merchandise inventories

 

1,007,043

 

1,097,109

Prepaid expenses and other current assets

 

70,861

 

92,601

Total current assets

 

2,271,501

 

1,598,883

Property and equipment, net

 

472,563

 

430,432

Operating lease assets

1,594,554

1,610,013

Goodwill

 

94,290

 

94,290

Other intangible assets, net

57,121

66,417

Other assets

 

37,594

 

37,146

Total assets

$

4,527,623

$

3,837,181

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current liabilities:

Accounts payable

$

858,790

$

476,298

Accrued liabilities and other

 

488,103

 

346,657

Current portion of operating lease liabilities

324,238

306,796

Current portion of long-term debt

 

16,700

 

24,900

Income taxes payable

27,313

41,236

Total current liabilities

 

1,715,144

 

1,195,887

Long-term debt

 

2,480,953

 

2,644,460

Long-term operating lease liabilities

1,378,394

1,357,821

Other liabilities

 

213,571

 

141,582

Total stockholders’ deficit

 

(1,260,439)

 

(1,502,569)

Total liabilities and stockholders’ deficit

$

4,527,623

$

3,837,181

Michaels Stores, Inc.

Condensed Consolidated Statements of Comprehensive Income

(in thousands)

Fiscal Year

    

2020

    

2019

    

2018

Net sales

$

5,271,112

$

5,072,037

$

5,271,944

Cost of sales and occupancy expense

 

3,315,035

 

3,199,780

 

3,248,276

Gross profit

 

1,956,077

 

1,872,257

 

2,023,668

Selling, general and administrative

 

1,388,744

 

1,303,350

 

1,350,371

Restructure and impairment charges

28,835

48,332

104,238

Store pre-opening costs

 

3,082

 

4,608

 

4,417

Operating income

 

535,416

 

515,967

 

564,642

Interest and other expense

 

172,938

 

156,682

 

146,572

Income before income taxes

 

362,478

 

359,285

 

418,070

Income taxes

 

66,119

 

85,995

 

97,751

Net income

$

296,359

$

273,290

$

320,319

Other comprehensive income, net of tax:

Foreign currency and cash flow hedges

 

9,387

 

(8,273)

 

(10,898)

Comprehensive income

$

305,746

$

265,017

$

309,421

Michaels Stores, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

Fiscal Year

    

2020

    

2019

    

2018

Cash flows from operating activities:

Net cash provided by operating activities

$

1,231,022

$

490,732

$

443,275

Cash flows from investing activities:

Additions to property and equipment

 

(162,004)

 

(120,545)

 

(145,387)

Acquisition of intangible assets

(58,000)

Proceeds from sale of building

875

Net cash used in investing activities

(161,129)

(178,545)

(145,387)

Cash flows from financing activities:

Net repayments of debt

 

(1,145,950)

(558,100)

(380,300)

Net borrowings of debt

975,000

523,200

355,400

Payment of dividend to Michaels Funding, Inc.

(87,232)

(105,060)

(451,892)

Payment of debt refinancing costs

(26,812)

(8,162)

(1,117)

Other financing activities

(475)

Net cash used in financing activities

 

(285,469)

(148,122)

(477,909)

Net change in cash and equivalents

 

784,424

164,065

(180,021)

Cash and equivalents at beginning of period

 

409,173

245,108

425,129

Cash and equivalents at end of period

$

1,193,597

$

409,173

$

245,108