CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Tables)
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12 Months Ended |
Jan. 30, 2021 |
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| CONDENSED CONSOLIDATED FINANCIAL INFORMATION |
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| Schedule of Condensed Consolidated Balance Sheets |
Michaels Stores, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
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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 |
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|
|
|
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LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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Current liabilities: |
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Accounts payable |
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$ |
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 |
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| Schedule of Condensed Consolidated Statements of Comprehensive Income |
Michaels Stores, Inc.
Condensed Consolidated Statements of Comprehensive Income
(in thousands)
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Fiscal Year |
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|
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 |
|
|
|
|
|
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|
|
|
|
Other comprehensive income, net of tax: |
|
|
|
|
|
|
|
|
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Foreign currency and cash flow hedges |
|
|
9,387 |
|
|
(8,273) |
|
|
(10,898) |
Comprehensive income |
|
$ |
305,746 |
|
$ |
265,017 |
|
$ |
309,421 |
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| Schedule of Condensed Consolidated Statements of Cash Flows |
Michaels Stores, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
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Fiscal Year |
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2020 |
|
2019 |
|
2018 |
Cash flows from operating activities: |
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|
|
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Net cash provided by operating activities |
|
$ |
1,231,022 |
|
$ |
490,732 |
|
$ |
443,275 |
|
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|
|
|
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Cash flows from investing activities: |
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|
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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) |
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|
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|
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Cash flows from financing activities: |
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|
|
|
|
|
|
|
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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) |
|
|
|
|
|
|
|
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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 |
|