CLAIRES STORES INC - FORM 8-K - EX-99.1 - PRESS RELEASE

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8-K - FORM 8-K - CLAIRES STORES INC	d411454d8k.htm

EXHIBIT 99.1

CLAIRE’S STORES, INC. AND SUBSIDIARIES

(EXCLUDING UNRESTRICTED SUBSIDIARIES)

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

(in thousands)


	April 29, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	25,237
Inventories		140,938
Prepaid expenses		16,924
Other current assets		26,809

Total current assets		209,908

Property and equipment:
Furniture, fixtures and equipment		220,369
Leasehold improvements		297,681

		518,050
Accumulated depreciation and amortization		(389,476	)

		128,574

Leased property under capital lease:
Land and building		18,055
Accumulated depreciation and amortization		(6,539	)

		11,516

Goodwill		1,132,575
Intangible assets, net of accumulated amortization		304,797
Other assets		41,052

		1,478,424

Total assets	$	1,828,422

LIABILITIES AND STOCKHOLDER’S DEFICIT
Current liabilities:
Trade accounts payable	$	69,726
Income taxes payable		5,353
Accrued interest payable		24,003
Accrued expenses and other current liabilities		78,351

Total current liabilities		177,433

Intercompany payables		81,487
Long-term debt, net		1,968,280
Revolving credit facility, net		57,043
Obligation under capital lease		16,289
Deferred tax liability		91,900
Deferred rent expense		33,917
Unfavorable lease obligations and other long-term liabilities		8,800

		2,257,716

Commitments and contingencies

Stockholder’s deficit:
Common stock		—
Additional paid-in capital		545,924
Accumulated other comprehensive loss, net of tax		(49,956	)
Accumulated deficit		(1,102,695	)

		(606,727	)

Total liabilities and stockholder’s deficit	$	1,828,422

CLAIRE’S STORES, INC. AND SUBSIDIARIES

(EXCLUDING UNRESTRICTED SUBSIDIARIES)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT

OF OPERATIONS

(in thousands)


	Three Months
	Ended
	April 29, 2017
Net sales	$	299,621
Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below)		151,788

Gross profit		147,833

Other expenses:
Selling, general and administrative		110,512
Depreciation and amortization		11,203
Severance and transaction-related costs		143
Other income, net		(2,701	)

		119,157

Operating income		28,676
Interest expense, net		43,580

Loss before income tax benefit		(14,904	)
Income tax benefit		(8,146	)

Net loss	$	(6,758	)

CLAIRE’S STORES, INC. AND SUBSIDIARIES

(EXCLUDING UNRESTRICTED SUBSIDIARIES)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousands)


	Three Months
	Ended
	April 29, 2017
Cash flows from operating activities:
Net loss	$	(6,758	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		11,203
Amortization of lease rights and other assets		1,069
Amortization of debt issuance costs		2,187
Accretion of debt premium		(721	)
Net unfavorable accretion of lease obligations		(64	)
Loss on sale/retirement of property and equipment, net		118
Stock-based compensation expense		62
(Increase) decrease in:
Inventories		(9,694	)
Prepaid expenses		(1,371	)
Other assets		(1,434	)
Increase (decrease) in:
Trade accounts payable		(1,069	)
Income taxes payable		(962	)
Accrued interest payable		(29,263	)
Accrued expenses and other liabilities		(10,834	)
Deferred income taxes		(7,597	)
Deferred rent expense		(525	)

Net cash used in operating activities		(55,653	)

Cash flows from investing activities:
Acquisition of property and equipment		(3,365	)
Acquisition of intangible assets/lease rights		(28	)

Net cash used in investing activities		(3,393	)

Cash flows from financing activities:
Proceeds from revolving credit facilities		69,000
Payments on revolving credit facilities		(16,200	)
Payments on short-term debt		(18,420	)
Payments on long-term debt		(1,857	)
Payment of debt issuance costs		(347	)
Principal payments of capital lease		(76	)

Net cash provided by financing activities		29,185

Effect of foreign currency exchange rate changes on cash and cash equivalents		(694	)

Net decrease in cash and cash equivalents		(30,555	)
Cash and cash equivalents, at beginning of period		55,792

Cash and cash equivalents, at end of period	$	25,237

Claire’s (Gibraltar) Holdings Limited

Unaudited Condensed Consolidated Balance Sheet

(in thousands)


	April 29, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	17,591
Inventories		56,846
Prepaid expenses		13,119
Other current assets		10,850

Total current assets		98,406

Property and equipment:
Furniture, fixtures and equipment		67,936
Leasehold improvements		98,955

		166,891
Accumulated depreciation and amortization		(120,289	)

		46,602

Intercompany receivables		136,410
Goodwill		145,058
Intangible assets, net		201,120
Other assets		36,352

		518,940

Total assets	$	663,948

LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities:
Trade accounts payable	$	44,944
Income taxes payable		3,735
Accrued interest payable		681
Accrued expenses and other current liabilities		32,969

Total current liabilities		82,329

Long-term debt, net		155,971
Deferred rent expense		9,146

		165,117

Stockholder’s equity:
Common stock		2
Additional paid in capital		770,857
Accumulated other comprehensive loss, net of tax		(49,192	)
Accumulated deficit		(305,165	)

		416,502

Total liabilities and stockholder’s equity	$	663,948

Claire’s (Gibraltar) Holdings Limited

Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income

(in thousands)


	Three Months
	Ended
	April 29, 2017
Net sales	$	103,661
Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below)		54,277

Gross profit		49,384

Other expenses:
Selling, general and administrative		43,306
Depreciation and amortization		4,113
Severance and transaction-related costs		84
Other income		(1,417	)

		46,086

Operating income		3,298
Interest expense, net		2,782

Income before income tax benefit		516
Income tax benefit		(7,188	)

Net income		7,704
Foreign currency translation adjustments		484
Net gain on intra-entity foreign currency transactions, net of tax		2,737

Other comprehensive income		3,221

Comprehensive income	$	10,925

CLSIP Holdings LLC

Unaudited Condensed Statement of Cash Flows

(in thousands)


	Three Months
	Ended
	April 29, 2017
Net cash provided by operating activities	$	—
Net cash provided by investing activities		—
Net cash provided by financing activities		—

Net increase in cash and cash equivalents		—
Cash and cash equivalents, at beginning of period		—

Cash and cash equivalents, at end of period	$	—

CLSIP LLC

Unaudited Condensed Statement of Cash Flows

(in thousands)


	Three Months
	Ended
	April 29, 2017
Net cash provided by operating activities	$	—
Net cash provided by investing activities		—
Payments on long-term debt		(2,415	)
Intercompany activity, net		2,915

Net cash provided by financing activities		500

Net increase in cash and cash equivalents		500
Cash and cash equivalents, at beginning of period		—

Cash and cash equivalents, at end of period	$	500

CLAIRES STORES INC - FORM 8-K - EX-99.1 - PRESS RELEASE - June 9, 2017

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CLAIRES STORES INC Reports