Attached files
| file | filename |
|---|---|
| 8-K - 8-K - 99 CENTS ONLY STORES LLC | a16-18103_18k.htm |
Exhibit 99.1
99 CENTS ONLY STORES REPORTS SECOND QUARTER FISCAL 2017 RESULTS
Second Quarter Fiscal 2017 Overview:
· Net sales increased 1.6% to $496.4 million compared to the prior year
· Same-store sales increased by 1.1%
· Net loss was $35.1 million compared to net loss of $78.1 million in prior year
· Adjusted EBITDA(1) was $5.2 million compared to $6.9 million in prior year
CITY OF COMMERCE, California — September 8, 2016 — 99 Cents Only Stores LLC (the “Company”) announced its financial results for second quarter of fiscal 2017 ended July 29, 2016.
Geoffrey Covert, President and Chief Executive Officer, stated, “I remain encouraged by our progress in executing our turnaround plan. With measurable improvement this past quarter, we have solid momentum as we enter the second half of fiscal 2017. Progress is evident across many aspects of the enterprise and our improved sales performance provides an indication that our plan is taking hold. During the second quarter, same-store sales were positive 1.1%, and on a year to date basis, same store sales improved to positive 0.5%. In addition, total inventory as of the end of the second quarter was $176 million, down nearly $100 million from $275 million as of the end of the second quarter last year. Finally, our improved sales performance and lower inventory levels have collectively strengthened our liquidity position. Cash borrowings under our ABL facility are now the lowest they have been in the past two years. As of the end of the second quarter cash borrowings under our ABL facility were $21 million, down $19 million compared to the prior quarter end and down $86 million from a year ago.”
Mr. Covert concluded, “Since beginning our turn-around plan in the third quarter last year, we have maintained that it will take time to operationally address our key issues—and even longer for the changes we are making to be fully reflected in our financial results. However, based on the results of the first half of fiscal 2017, I am optimistic that we remain on-track to return 99 Cents Only Stores to sustained growth in the long-run.”
Second Quarter Financial Results
For the second quarter of fiscal 2017, the Company’s net sales increased 1.6%, to $496.4 million, compared to $488.5 million in the second quarter of fiscal 2016. Same-store sales increased
(1) EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are financial measures that are considered “non-GAAP financial measures” under the Securities and Exchange Commission regulations. The definitions of, an explanation of how and why the Company uses, and a reconciliation to the most directly comparable GAAP measure of, these non-GAAP measures are included in this press release.
1.1% compared to the second quarter of fiscal 2016, with higher customer traffic of 1.5% offset by lower average ticket of 0.4%. Positives in same-store sales included higher sales in produce, consumables and grocery, as a result of improved product availability and higher in-stock levels due to improvements in the allocation and replenishment system, and the expansion of the Company’s partnership with a third party produce distributor. Challenges in same-store sales included lower seasonal sales due to the overlapping of significant inventory purchases in fiscal 2016, which increased sales but led to excess inventory levels in stores, and prompted ongoing initiatives to clear excess on-hand seasonal inventory through promotions and mark-downs. In addition, persistent price deflation in dairy negatively impacted sales of milk and eggs.
Gross margin, as a percentage of net sales, was 28.4% in the second quarter of fiscal 2017, an increase of 60 basis points from the second quarter of fiscal 2016. Gross margin was higher due to lower inventory shrinkage that was primarily driven by a favorable comparison against the second quarter of last year, when the shrink provision rate was increased to better reflect the unfavorable physical inventory counts completed during the quarter. This was partially offset by higher distribution and transportation expenses during the second quarter of fiscal 2017. Product margin was flat compared to second quarter of fiscal 2016. Selling, general and administrative expenses were $159.5 million, or 32.1% as a percentage of net sales, representing an increase of 50 basis points from the second quarter of fiscal 2016. The increase in selling, general and administrative expenses as a percentage of net sales was primarily driven by an increase in the California minimum wage.
Net loss was $35.1 million in the second quarter of fiscal 2017 compared to net loss of $78.1 million for the second quarter of fiscal 2016. Net loss as a percentage of net sales was (7.1)% for the second quarter of fiscal 2017, compared to net loss of (16.0)% for the second quarter of fiscal 2016. Adjusted EBITDA was $5.2 million in the second quarter of fiscal 2017, compared to $6.9 million in the second quarter of fiscal 2016. Adjusted EBITDA margin was 1.1% compared to 1.4% over the same period.
Year-to-Date Financial Results
For the first half of fiscal 2017, the Company’s net sales increased 1.5% to $1,009.4 million, compared to $994.7 million in the first half of fiscal 2016. Same-store sales increased 0.5% driven by higher average ticket. Net loss was $60.3 million in the first half of fiscal 2017, compared to net loss of $76.9 million for the first half of fiscal 2016. Net loss as a percentage of total sales was (6.0)% for the first half of fiscal 2017, compared to net loss as a percentage of total sales of (7.7)% for the first half of fiscal 2016. Adjusted EBITDA was $18.5 million in the first half of fiscal 2017, compared to $31.9 million for the first half of fiscal 2016. Adjusted EBITDA margin was 1.8% for the first half of fiscal 2017, compared to 3.2% for the first half of fiscal 2016.
Store Openings
During the second quarter of fiscal 2017, the Company opened three new stores and closed one store upon the expiration of a lease. As of the end of the second quarter of fiscal 2017, the Company operated 394 stores, an increase of 1.2% in store count over the same period of last year.
Sale of Warehouse Facility
During the second quarter of fiscal 2017, the Company sold and concurrently licensed through January 31, 2017 a warehouse facility in the City of Commerce, California with a carrying value of $12.1 million and received net proceeds from this transaction of $28.5 million. Due in part to the significant inventory reductions the Company has achieved in recent quarters, the Company is rationalizing its warehouse footprint and this facility was not considered a strategic asset. The Company expects to completely exit the facility by the end of fiscal 2017.
Fiscal 2017 Outlook
The Company is reiterating the following previously issued outlook for fiscal 2017:
· Positive same-store sales growth
· Substantial year-over-year increase in Adjusted EBITDA, particularly in the second half of fiscal 2017, and a substantial decrease in net loss over the same period
· Capital expenditures of approximately $35-$40 million. The Company is currently evaluating the expansion of its store refresh initiative which may require the Company to update its full year capital expenditure outlook.
The Company is revising the following previously issued outlook for fiscal 2017 to reflect changes in timing of select new store openings previously scheduled for the second half of fiscal 2017:
· 5 new store openings
CONFERENCE CALL DETAILS
The Company’s conference call to discuss its second quarter of fiscal 2017 and the other matters described in this release is scheduled for Thursday, September 8, 2016 at 10:00 a.m. Pacific Time (1:00 p.m. Eastern Time).
The live Second Quarter Fiscal 2017 Earnings Conference Call can be accessed by dialing 1-877-407-3982 (domestic) or 1-201-493-6780 (international). Please phone in approximately 10 minutes before the call is scheduled to begin and hold for an operator to assist you. Please inform the operator that you are calling in for 99 Cents Only Stores’ Fiscal 2017 Second Quarter Earnings Conference Call, and be prepared to provide the operator with your name, company name, position and the conference ID: 13644107. The call will also be broadcast live over the Internet, accessible through the Investor Relations section of the Company’s website at www.99only.com/investor-relations.
A telephonic replay of the call will be available beginning Thursday, September 8, 2016, at 4:00 p.m. Eastern Time, through Thursday, September 22, 2016, at 11:59 p.m. Eastern Time. To access the replay, dial 1-877-870-5176 (domestic) or 1-858-384-5517 (international) and enter the replay pin number: 13644107. A replay of the webcast will also be available for 60 days upon completion of the conference call, accessible through the Investor Relations section of the Company’s website at www.99only.com/investor-relations.
A copy of this earnings release and supplemental slides will be available prior to the call, accessible through the Investor Relations section of the Company’s website at www.99only.com/investor-relations.
Non-GAAP Financial Measures
The Company defines EBITDA as net income before interest expense (income) and other financial costs, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA for the relevant period as adjusted by the following amounts: non-cash adjustments to reserve balances, stock-based compensation, fees and expenses related to the Merger (as defined below), legal settlements, non-ordinary course store closures, and other non-cash or one-time items. Adjusted EBITDA margin is Adjusted EBITDA divided by total sales. Adjusted EBITDA and Adjusted EBITDA margin as presented herein, are supplemental measures of the Company’s performance that are not required by, or presented in accordance with, generally accepted accounting principles in the United States of America (“GAAP”). The Company’s management uses EBITDA, Adjusted EBITDA and Adjusted EBITDA margin to assess its performance and that of its competitors. In addition, Adjusted EBITDA is used to determine the Company’s compliance and ability to take certain actions under the covenants contained in the Company’s debt instruments. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are not measures of the Company’s financial performance under GAAP and should not be considered in isolation or as alternatives to net income, operating income or any other performance measures derived in accordance with GAAP, as measures of operating performance or operating cash flows or as measures of liquidity.
Merger and Conversion to LLC
On January 13, 2012, 99¢ Only Stores was acquired by affiliates of Ares Management LLC, Canada Pension Plan Investment Board and the Gold-Schiffer family. The acquisition is referred to as the “Merger.” Effective October 18, 2013, 99¢ Only Stores converted from a California corporation to a California limited liability company, 99 Cents Only Stores LLC. The term the “Company” refers to 99¢ Only Stores and its consolidated subsidiaries prior to the conversion date and to 99 Cents Only Stores LLC and its consolidated subsidiaries on or after the conversion date.
About 99 Cents Only Stores
Founded in 1982, the Company operates 394 extreme value retail stores with 287 in California, 48 in Texas, 38 in Arizona and 21 in Nevada as of September 8, 2016. The Company is an extreme value retailer of consumable and general merchandise and seasonal products. For more information, visit www.99only.com.
Investor Contact:
Addo Investor Relations
Lasse Glassen
(424) 238-6249
lglassen@addoir.com
### Tables to Follow ###
The following tables reconcile EBITDA and Adjusted EBITDA to net income for the periods indicated:
|
|
|
For the Second Quarter Ended |
| ||||
|
|
|
July 29, |
|
July 31, |
| ||
|
|
|
(In thousands) |
| ||||
|
|
|
(Unaudited) |
| ||||
|
|
|
|
|
|
| ||
|
Net loss |
|
$ |
(35,085 |
) |
$ |
(78,101 |
) |
|
Interest expense, net |
|
16,748 |
|
16,481 |
| ||
|
Provision for income taxes |
|
52 |
|
42,951 |
| ||
|
Depreciation and amortization |
|
17,656 |
|
17,308 |
| ||
|
EBITDA |
|
$ |
(629 |
) |
$ |
(1,361 |
) |
|
Stock-based compensation (a) |
|
224 |
|
773 |
| ||
|
Purchase accounting effect on leases (b) |
|
719 |
|
616 |
| ||
|
Impairment of long-lived assets (c) |
|
— |
|
478 |
| ||
|
Inventory adjustments (d) |
|
623 |
|
— |
| ||
|
Employee related expenses (e) |
|
1,764 |
|
2,763 |
| ||
|
Real estate projects termination charges (f) |
|
11 |
|
2,833 |
| ||
|
Professional and consultant fees (g) |
|
1,424 |
|
69 |
| ||
|
Loss (gain) on sales of assets (h) |
|
220 |
|
(40 |
) | ||
|
Other (i) |
|
873 |
|
809 |
| ||
|
Adjusted EBITDA |
|
$ |
5,229 |
|
$ |
6,940 |
|
(a) Represents stock-based compensation expense incurred in connection with various stock-based compensation plans in which certain Company employees have participated.
(b) Represents purchase accounting effect on rent revenue and rent expense.
(c) Represents non-cash impairment charges related to an underperforming store in Texas.
(d) Represents charges related to excess and obsolescence reserve and damage to inventory due to fire.
(e) Represents expenses related to severance for former employees, signing and retention bonuses and other employee related expenses.
(f) Represents charges related to previously capitalized store and distribution center real-estate development costs expensed upon termination of related projects.
(g) Represents professional and consultant fees.
(h) Represents amortization of gain related to sale-leaseback arrangements and net gain/loss on the sale of non-core assets.
(i) Represents non-cash or other charges and income, including professional fees, legal reserve adjustments, prior year property tax assessments and other.
The following tables reconcile EBITDA and Adjusted EBITDA to net income for the periods indicated:
|
|
|
For the First Half Ended |
| ||||
|
|
|
July 29, |
|
July 31, |
| ||
|
|
|
(In thousands) |
| ||||
|
|
|
(Unaudited) |
| ||||
|
|
|
|
|
|
| ||
|
Net loss |
|
$ |
(60,279 |
) |
$ |
(76,930 |
) |
|
Interest expense, net |
|
33,272 |
|
32,750 |
| ||
|
Provision for income taxes |
|
125 |
|
31,962 |
| ||
|
Depreciation and amortization |
|
34,395 |
|
33,555 |
| ||
|
EBITDA |
|
$ |
7,513 |
|
$ |
21,337 |
|
|
Stock-based compensation (a) |
|
388 |
|
1,407 |
| ||
|
Purchase accounting effect on leases (b) |
|
1,426 |
|
1,267 |
| ||
|
Impairment of long-lived assets (c) |
|
— |
|
478 |
| ||
|
Inventory adjustments (d) |
|
1,586 |
|
— |
| ||
|
Employee related expenses (e) |
|
3,196 |
|
3,608 |
| ||
|
Real estate projects termination charges (f) |
|
11 |
|
2,833 |
| ||
|
Professional and consultant fees (g) |
|
1,745 |
|
141 |
| ||
|
Loss (gain) on sales of assets (h) |
|
77 |
|
(96 |
) | ||
|
Loss on extinguishment (i) |
|
335 |
|
— |
| ||
|
Other (j) |
|
2,260 |
|
971 |
| ||
|
Adjusted EBITDA |
|
$ |
18,537 |
|
$ |
31,946 |
|
(a) Represents stock-based compensation expense incurred in connection with various stock-based compensation plans in which certain Company employees have participated.
(b) Represents purchase accounting effect on rent revenue and rent expense.
(c) Represents non-cash impairment charges related to an underperforming store in Texas.
(d) Represents charges related to excess and obsolescence reserve and damage to inventory due to fire.
(e) Represents expenses related to severance for former employees, signing and retention bonuses and other employee related expenses.
(f) Represents charges related to previously capitalized store and distribution center real-estate development costs expensed upon termination of related projects.
(g) Represents professional and consultant fees.
(h) Represents amortization of gain related to sale-leaseback arrangements and net gain/loss on the sale of non-core assets.
(i) Represents loss on extinguishment of debt from amendment of the asset based lending facility in the first quarter of fiscal 2017.
(j) Represents non-cash or other charges and income, including professional fees, legal reserve adjustments, prior year property tax assessments and other.
99 CENTS ONLY STORES LLC
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
|
|
|
July 29, |
|
January 29, |
| ||
|
|
|
(Unaudited) |
|
|
| ||
|
ASSETS |
|
|
|
|
| ||
|
Current Assets: |
|
|
|
|
| ||
|
Cash |
|
$ |
2,309 |
|
$ |
2,312 |
|
|
Accounts receivable, net of allowance for doubtful accounts of $48 and $140 at July 29, 2016 and January 29, 2016, respectively |
|
1,481 |
|
1,674 |
| ||
|
Income taxes receivable |
|
2,279 |
|
3,665 |
| ||
|
Inventories, net |
|
175,575 |
|
196,651 |
| ||
|
Assets held for sale |
|
2,308 |
|
2,308 |
| ||
|
Other |
|
18,550 |
|
18,603 |
| ||
|
|
|
|
|
|
| ||
|
Total current assets |
|
202,502 |
|
225,213 |
| ||
|
Property and equipment, net |
|
530,858 |
|
542,570 |
| ||
|
Deferred financing costs, net |
|
4,496 |
|
916 |
| ||
|
Intangible assets, net |
|
450,293 |
|
453,242 |
| ||
|
Goodwill |
|
387,772 |
|
387,772 |
| ||
|
Deposits and other assets |
|
8,470 |
|
7,319 |
| ||
|
|
|
|
|
|
| ||
|
Total assets |
|
$ |
1,584,391 |
|
$ |
1,617,032 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND MEMBER’S EQUITY |
|
|
|
|
| ||
|
Current Liabilities: |
|
|
|
|
| ||
|
Accounts payable |
|
$ |
104,839 |
|
$ |
79,197 |
|
|
Payroll and payroll-related |
|
21,124 |
|
18,421 |
| ||
|
Sales tax |
|
9,995 |
|
13,314 |
| ||
|
Other accrued expenses |
|
43,652 |
|
41,464 |
| ||
|
Workers’ compensation |
|
74,632 |
|
76,389 |
| ||
|
Current portion of long-term debt |
|
6,138 |
|
6,138 |
| ||
|
Current portion of capital and financing lease obligations |
|
29,693 |
|
989 |
| ||
|
|
|
|
|
|
| ||
|
Total current liabilities |
|
290,073 |
|
235,912 |
| ||
|
Long-term debt, net of current portion |
|
848,005 |
|
875,843 |
| ||
|
Unfavorable lease commitments, net |
|
4,850 |
|
5,746 |
| ||
|
Deferred rent |
|
27,756 |
|
27,389 |
| ||
|
Deferred compensation liability |
|
773 |
|
709 |
| ||
|
Capital and financing lease obligation, net of current portions |
|
36,547 |
|
34,817 |
| ||
|
Deferred income taxes |
|
163,045 |
|
163,045 |
| ||
|
Other liabilities |
|
4,618 |
|
5,118 |
| ||
|
|
|
|
|
|
| ||
|
Total liabilities |
|
1,375,667 |
|
1,348,579 |
| ||
|
|
|
|
|
|
| ||
|
Commitments and contingencies |
|
|
|
|
| ||
|
Member’s Equity: |
|
|
|
|
| ||
|
Member units — 100 units issued and outstanding at July 29, 2016 and January 29, 2016 |
|
550,614 |
|
550,226 |
| ||
|
Investment in Number Holdings, Inc. preferred stock |
|
(19,200 |
) |
(19,200 |
) | ||
|
Accumulated deficit |
|
(322,690 |
) |
(262,411 |
) | ||
|
Other comprehensive loss |
|
— |
|
(162 |
) | ||
|
|
|
|
|
|
| ||
|
Total equity |
|
208,724 |
|
268,453 |
| ||
|
|
|
|
|
|
| ||
|
Total liabilities and equity |
|
$ |
1,584,391 |
|
$ |
1,617,032 |
|
(1) The Consolidated Balance Sheet as of January 29, 2016 was retrospectively adjusted to reflect the adoption of Accounting Standards Update (“ASU”) No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” and ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” in the first quarter of fiscal 2017.
99 CENTS ONLY STORES LLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
(Unaudited)
|
|
|
For the Second Quarter Ended |
|
For the First Half Ended |
| ||||||||
|
|
|
July 29, |
|
July 31, |
|
July 29, |
|
July 31, |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net Sales: |
|
|
|
|
|
|
|
|
| ||||
|
99¢ Only Stores |
|
$ |
487,460 |
|
$ |
477,327 |
|
$ |
989,226 |
|
$ |
972,135 |
|
|
Bargain Wholesale |
|
8,998 |
|
11,195 |
|
20,161 |
|
22,556 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total sales |
|
496,458 |
|
488,522 |
|
1,009,387 |
|
994,691 |
| ||||
|
Cost of sales |
|
355,258 |
|
352,647 |
|
719,220 |
|
702,193 |
| ||||
|
Gross profit |
|
141,200 |
|
135,875 |
|
290,167 |
|
292,498 |
| ||||
|
Selling, general and administrative expenses |
|
159,485 |
|
154,544 |
|
316,714 |
|
304,716 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Operating loss |
|
(18,285 |
) |
(18,669 |
) |
(26,547 |
) |
(12,218 |
) | ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Other (income) expense: |
|
|
|
|
|
|
|
|
| ||||
|
Interest income |
|
(36 |
) |
— |
|
(38 |
) |
(3 |
) | ||||
|
Interest expense |
|
16,784 |
|
16,481 |
|
33,310 |
|
32,753 |
| ||||
|
Loss on extinguishment |
|
— |
|
— |
|
335 |
|
— |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total other expense, net |
|
16,748 |
|
16,481 |
|
33,607 |
|
32,750 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Loss before provision for income taxes |
|
(35,033 |
) |
(35,150 |
) |
(60,154 |
) |
(44,968 |
) | ||||
|
Provision for income taxes |
|
52 |
|
42,951 |
|
125 |
|
31,962 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net loss |
|
$ |
(35,085 |
) |
$ |
(78,101 |
) |
$ |
(60,279 |
) |
$ |
(76,930 |
) |
99 CENTS ONLY STORES LLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
|
|
For the First Half Ended |
| ||||
|
|
|
July 29, 2016 |
|
July 31, 2015 |
| ||
|
|
|
|
|
|
| ||
|
Cash flows from operating activities: |
|
|
|
|
| ||
|
Net loss |
|
$ |
(60,279 |
) |
$ |
(76,930 |
) |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| ||
|
Depreciation |
|
33,520 |
|
32,667 |
| ||
|
Amortization of deferred financing costs and accretion of OID |
|
2,941 |
|
2,305 |
| ||
|
Amortization of intangible assets |
|
875 |
|
887 |
| ||
|
Amortization of favorable/unfavorable leases, net |
|
1,193 |
|
880 |
| ||
|
Loss (gain) on disposal of fixed assets |
|
293 |
|
(48 |
) | ||
|
Loss on interest rate hedge |
|
514 |
|
743 |
| ||
|
Loss on extinguishment of debt |
|
335 |
|
— |
| ||
|
Long-lived assets impairment |
|
— |
|
478 |
| ||
|
Deferred income taxes |
|
— |
|
31,785 |
| ||
|
Stock-based compensation |
|
388 |
|
1,408 |
| ||
|
Changes in assets and liabilities associated with operating activities: |
|
|
|
|
| ||
|
Accounts receivable |
|
193 |
|
293 |
| ||
|
Inventories |
|
21,076 |
|
20,890 |
| ||
|
Deposits and other assets |
|
(1,548 |
) |
6,471 |
| ||
|
Accounts payable |
|
26,591 |
|
(38,902 |
) | ||
|
Accrued expenses |
|
1,328 |
|
(7,623 |
) | ||
|
Accrued workers’ compensation |
|
(1,757 |
) |
(1,125 |
) | ||
|
Income taxes |
|
1,278 |
|
(27 |
) | ||
|
Deferred rent |
|
367 |
|
2,195 |
| ||
|
Other long-term liabilities |
|
(272 |
) |
1,046 |
| ||
|
Net cash provided by (used in) operating activities |
|
27,036 |
|
(22,607 |
) | ||
|
|
|
|
|
|
| ||
|
Cash flows from investing activities: |
|
|
|
|
| ||
|
Purchases of property and equipment |
|
(23,960 |
) |
(43,685 |
) | ||
|
Proceeds from sale of property and fixed assets |
|
612 |
|
1,439 |
| ||
|
Net cash used in investing activities |
|
(23,348 |
) |
(42,246 |
) | ||
|
|
|
|
|
|
| ||
|
Cash flows from financing activities: |
|
|
|
|
| ||
|
Payments of long-term debt |
|
(3,069 |
) |
(3,069 |
) | ||
|
Proceeds under revolving credit facility |
|
92,200 |
|
275,450 |
| ||
|
Payments under revolving credit facility |
|
(119,100 |
) |
(225,850 |
) | ||
|
Payments of debt issuance costs |
|
(4,725 |
) |
— |
| ||
|
Proceeds from financing lease obligations |
|
31,503 |
|
8,666 |
| ||
|
Payments of capital and financing lease obligations |
|
(500 |
) |
(55 |
) | ||
|
Payments to repurchase stock options of Number Holdings, Inc. |
|
— |
|
(390 |
) | ||
|
Net settlement of stock options of Number Holdings, Inc. for tax withholdings |
|
— |
|
(57 |
) | ||
|
Net cash (used in) provided by financing activities |
|
(3,691 |
) |
54,695 |
| ||
|
|
|
|
|
|
| ||
|
Net decrease in cash |
|
(3 |
) |
(10,158 |
) | ||
|
Cash - beginning of period |
|
2,312 |
|
12,463 |
| ||
|
Cash - end of period |
|
$ |
2,309 |
|
$ |
2,305 |
|
Safe Harbor Statement
The Company has included statements in this release that constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act, as amended, and Section 27A of the Securities Act of 1933, as amended. As a general matter, forward-looking statements are those focused on future or anticipated events or trends, expectations and beliefs including, among other things, (a) trends affecting the financial condition or results of operations of the Company and (b) the business and growth strategies of the Company (including the Company’s store opening growth rate) that are not historical in nature. Such statements are intended to be identified by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “project,” “plan” and similar expressions in connection with any discussion of future operating or financial performance. Any forward-looking statements are and will be based upon the Company’s then-current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. Readers are cautioned not to put undue reliance on such forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those projected in this release for the reasons, among others, discussed in the reports and other documents the Company files from time to time with the Securities and Exchange Commission, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections contained in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2016. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.