Annual report pursuant to Section 13 and 15(d)

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

v3.19.1
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
12 Months Ended
Feb. 02, 2019
CONDENSED CONSOLIDATED FINANCIAL INFORMATION  
CONDENSED CONSOLIDATED FINANCIAL INFORMATION

17. 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)

 

 

 

 

 

 

 

 

 

 

February 2,

 

February 3,

ASSETS

    

2019

 

2018

Current assets:

 

 

 

 

 

 

Cash and equivalents

 

$

245,108

 

$

425,129

Merchandise inventories

 

 

1,108,715

 

 

1,123,288

Prepaid expenses and other current assets

 

 

160,767

 

 

127,656

Total current assets

 

 

1,514,590

 

 

1,676,073

Property and equipment, net

 

 

439,077

 

 

420,020

Goodwill

 

 

112,069

 

 

119,074

Other assets

 

 

61,667

 

 

84,537

Total assets

 

$

2,127,403

 

$

2,299,704

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

485,004

 

$

483,002

Accrued liabilities and other

 

 

378,313

 

 

369,647

Current portion of long-term debt

 

 

24,900

 

 

24,900

Other current liabilities

 

 

43,907

 

 

124,881

Total current liabilities

 

 

932,124

 

 

1,002,430

Long-term debt

 

 

2,681,000

 

 

2,701,764

Other liabilities

 

 

199,705

 

 

165,662

Total stockholders’ deficit

 

 

(1,685,426)

 

 

(1,570,152)

Total liabilities and stockholders’ deficit

 

$

2,127,403

 

$

2,299,704

 

Michaels Stores, Inc.

Condensed Consolidated Statements of Comprehensive Income

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

    

2018

    

2017

    

2016

Net sales

 

$

5,271,944

 

$

5,361,960

 

$

5,197,292

Cost of sales and occupancy expense

 

 

3,248,276

 

 

3,233,171

 

 

3,169,476

Gross profit

 

 

2,023,668

 

 

2,128,789

 

 

2,027,816

Selling, general and administrative

 

 

1,350,371

 

 

1,389,334

 

 

1,305,855

Restructure charges

 

 

104,238

 

 

 —

 

 

 —

Store pre-opening costs

 

 

4,417

 

 

2,999

 

 

4,484

Operating income

 

 

564,642

 

 

736,456

 

 

717,477

Interest and other expense

 

 

146,572

 

 

129,657

 

 

133,529

Income before income taxes

 

 

418,070

 

 

606,799

 

 

583,948

Income taxes

 

 

97,751

 

 

215,820

 

 

204,247

Net income

 

$

320,319

 

$

390,979

 

$

379,701

 

 

 

 

 

 

 

 

 

 

Other comprehensive income, net of tax:

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment and other

 

 

(10,898)

 

 

10,564

 

 

7,832

Comprehensive income

 

$

309,421

 

$

401,543

 

$

387,533

 

Michaels Stores, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

    

2018

    

2017

    

2016

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

443,275

 

$

535,544

 

$

577,088

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Additions to property and equipment

 

 

(145,387)

 

 

(127,830)

 

 

(114,462)

Acquisition of Lamrite West, net of cash acquired

 

 

 —

 

 

 —

 

 

(151,100)

Purchases of long-term investments

 

 

 —

 

 

 —

 

 

(1,325)

Net cash used in investing activities

 

 

(145,387)

 

 

(127,830)

 

 

(266,887)

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Net repayments of debt

 

 

(380,300)

 

 

(413,325)

 

 

(60,675)

Net borrowings of debt

 

 

355,400

 

 

382,200

 

 

42,000

Payment of dividend to Michaels Funding, Inc.

 

 

(451,892)

 

 

(245,514)

 

 

(400,823)

Other financing activities

 

 

(1,117)

 

 

 —

 

 

(1,299)

Net cash used in financing activities

 

 

(477,909)

 

 

(276,639)

 

 

(420,797)

 

 

 

 

 

 

 

 

 

 

Net change in cash and equivalents

 

 

(180,021)

 

 

131,075

 

 

(110,596)

Cash and equivalents at beginning of period

 

 

425,129

 

 

294,054

 

 

404,650

Cash and equivalents at end of period

 

$

245,108

 

$

425,129

 

$

294,054