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

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8-K - FORM 8-K - CLAIRES STORES INC	d595244d8k.htm

EXHIBIT 99.1

Claire’s (Gibraltar) Holdings Limited

Unaudited Condensed Consolidated Balance Sheet

(in thousands)


	August 4, 2018
ASSETS
Current assets:
Cash	$	30,267
Inventories		55,260
Prepaid expenses		14,625
Other current assets		7,961

Total current assets		108,113

Property and equipment:
Furniture, fixtures and equipment		70,690
Leasehold improvements		97,526

		168,216
Accumulated depreciation and amortization		(130,215	)

		38,001

Intercompany receivables		159,446
Goodwill		145,058
Intangible assets, net		197,022
Other assets		45,874

		547,400

Total assets	$	693,514

LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities:
Current portion of long-term debt, net	$	84,732
Trade accounts payable		36,558
Income taxes payable		6,149
Accrued interest payable		548
Accrued expenses and other current liabilities		36,054

Total current liabilities		164,071

Long-term debt, net		65,037
Deferred tax liability		4,384
Deferred rent expense		9,289

		78,710

Stockholder’s equity:
Common stock		2
Additional paid in capital		770,859
Accumulated other comprehensive loss, net of tax		(41,276	)
Accumulated deficit		(278,852	)

		450,733

Total liabilities and stockholder’s equity	$	693,514

Claire’s (Gibraltar) Holdings Limited

Unaudited Condensed Consolidated Statement of Operations and Comprehensive Loss

(in thousands)


	Three Months Ended			Six Months Ended
	August 4, 2018			August 4, 2018
Net sales	$	114,994		$	219,066
Cost of sales, occupancy and buying expenses (exclusive of depreciation and amortization shown separately below)		56,853			114,195

Gross profit		58,141			104,871

Other expenses:
Selling, general and administrative		43,983			91,715
Depreciation and amortization		4,088			8,632
Severance		365			653
Other (income) expense, net		(297	)		739

		48,139			101,739

Operating income		10,002			3,132
Interest expense, net		2,754			5,230

Income before income tax expense (benefit)		7,248			(2,098	)
Income tax expense (benefit)		2,006			(6,181	)

Net income	$	5,242		$	4,083
Foreign currency translation adjustments		(928	)		(3,041	)
Net loss on intra-entity foreign currency transactions, net of tax		(4,690	)		(10,398	)

Other comprehensive loss		(5,618	)		(13,439	)

Comprehensive loss	$	(376	)	$	(9,356	)

CLSIP Holdings LLC

Unaudited Condensed Statement of Cash Flows

(in thousands)


	Six Months Ended
	August 4, 2018
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)


	Six Months Ended
	August 4, 2018
Net loss	$	(3,284	)
Non-cash pay-in-kind interest expense		2,889
Accrued interest payable		395

Net cash provided by operating activities		—
Net cash provided by investing activities		—
Payments of unamortized interest related to long-term debt		(3,008	)
Intercompany activity, net		3,008

Net cash used in financing activities		—

Net decrease in cash and cash equivalents		—
Cash and cash equivalents, at beginning of period		6,500

Cash and cash equivalents, at end of period	$	6,500

CLAIRES STORES INC - FORM 8-K - EX-99.1 - September 14, 2018