Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Tables)

v3.10.0.1
CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Tables)
9 Months Ended
Nov. 03, 2018
CONDENSED CONSOLIDATED FINANCIAL INFORMATION  
Schedule of Condensed Consolidated Balance Sheets

Michaels Stores, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

November 3,

 

February 3,

 

October 28,

ASSETS

    

2018

 

2018

 

2017

Current assets:

 

 

 

 

 

 

 

 

 

Cash and equivalents

 

$

101,895

 

$

425,129

 

$

176,007

Merchandise inventories

 

 

1,440,875

 

 

1,123,288

 

 

1,404,206

Prepaid expenses and other current assets

 

 

146,317

 

 

127,656

 

 

131,695

Total current assets

 

 

1,689,087

 

 

1,676,073

 

 

1,711,908

Property and equipment, net

 

 

453,396

 

 

420,020

 

 

401,892

Goodwill

 

 

119,074

 

 

119,074

 

 

119,074

Other assets

 

 

73,088

 

 

84,537

 

 

72,036

Total assets

 

$

2,334,645

 

$

2,299,704

 

$

2,304,910

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

645,469

 

$

483,002

 

$

674,222

Accrued liabilities and other

 

 

407,252

 

 

369,647

 

 

399,363

Current portion of long-term debt

 

 

240,261

 

 

24,900

 

 

140,125

Other current liabilities

 

 

41,948

 

 

124,881

 

 

60,884

Total current liabilities

 

 

1,334,930

 

 

1,002,430

 

 

1,274,594

Long-term debt

 

 

2,690,302

 

 

2,701,764

 

 

2,707,120

Other liabilities

 

 

156,770

 

 

165,662

 

 

108,112

Total stockholders’ deficit

 

 

(1,847,357)

 

 

(1,570,152)

 

 

(1,784,916)

Total liabilities and stockholders’ deficit

 

$

2,334,645

 

$

2,299,704

 

$

2,304,910

 

Schedule of Condensed Consolidated Statements of Comprehensive Income

Michaels Stores, Inc.

Condensed Consolidated Statements of Comprehensive Income

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

 

39 Weeks Ended

 

 

November 3,

 

October 28,

 

November 3,

 

October 28,

 

    

2018

    

2017

    

2018

    

2017

Net sales

 

$

1,274,058

 

$

1,240,196

 

$

3,482,835

 

$

3,471,352

Cost of sales and occupancy expense

 

 

795,104

 

 

756,088

 

 

2,173,990

 

 

2,117,100

Gross profit

 

 

478,954

 

 

484,108

 

 

1,308,845

 

 

1,354,252

Selling, general and administrative

 

 

340,375

 

 

328,855

 

 

969,500

 

 

969,793

Restructure charge

 

 

 —

 

 

 —

 

 

44,278

 

 

 —

Store pre-opening costs

 

 

1,196

 

 

952

 

 

3,995

 

 

2,592

Operating income

 

 

137,383

 

 

154,301

 

 

291,072

 

 

381,867

Interest and other expense

 

 

37,680

 

 

32,460

 

 

106,857

 

 

95,261

Losses on early extinguishment of debt and refinancing costs

 

 

 —

 

 

 —

 

 

1,835

 

 

 —

Income before income taxes

 

 

99,703

 

 

121,841

 

 

182,380

 

 

286,606

Income taxes

 

 

15,771

 

 

41,806

 

 

43,722

 

 

98,601

Net income

 

$

83,932

 

$

80,035

 

$

138,658

 

$

188,005

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment and other

 

 

3,016

 

 

(4,418)

 

 

(3,230)

 

 

4,254

Comprehensive income

 

$

86,948

 

$

75,617

 

$

135,428

 

$

192,259

 

Schedule of Condensed Consolidated Statements of Cash Flows

Michaels Stores, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

 

 

 

 

 

 

 

39 Weeks Ended

 

 

November 3,

 

October 28,

 

 

2018

 

2017

Cash flows from operating activities:

 

 

 

 

 

 

Net cash provided by operating activities

 

$

22,855

 

$

109,782

 

 

 

 

 

 

 

Cash flows used in investing activities:

 

 

 

 

 

 

Additions to property and equipment

 

 

(119,553)

 

 

(72,640)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Net repayments of debt

 

 

(106,756)

 

 

(266,875)

Net borrowings of debt

 

 

307,400

 

 

357,200

Payment of debt refinancing costs

 

 

(1,117)

 

 

 —

Payment of dividend to Michaels Funding, Inc.

 

 

(426,063)

 

 

(245,514)

Net cash used in financing activities

 

 

(226,536)

 

 

(155,189)

 

 

 

 

 

 

 

Net change in cash and equivalents

 

 

(323,234)

 

 

(118,047)

Cash and equivalents at beginning of period

 

 

425,129

 

 

294,054

Cash and equivalents at end of period

 

$

101,895

 

$

176,007