Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jan. 31, 2015 | Mar. 05, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | UNITED NATURAL FOODS INC | |
Entity Central Index Key | 1020859 | |
Current Fiscal Year End Date | 7 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Jan-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 50,075,403 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 31, 2015 | Aug. 02, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $27,474 | $16,116 |
Accounts receivable, net of allowance of $7,345 and $7,589, respectively | 493,873 | 449,870 |
Inventories | 922,246 | 834,722 |
Prepaid expenses and other current assets | 72,952 | 45,064 |
Deferred income taxes | 38,570 | 32,518 |
Total current assets | 1,555,115 | 1,378,290 |
Property & equipment, net | 528,674 | 483,960 |
Other assets: | ||
Goodwill | 267,723 | 274,548 |
Intangible assets, net of accumulated amortization of $20,895 and $19,002, respectively | 129,847 | 134,989 |
Other assets | 29,531 | 25,446 |
Total assets | 2,510,890 | 2,297,233 |
Current liabilities: | ||
Accounts payable | 430,227 | 385,890 |
Accrued expenses and other current liabilities | 138,024 | 136,959 |
Current portion of long-term debt | 11,090 | 990 |
Total current liabilities | 579,341 | 523,839 |
Notes Payable | 364,622 | 415,660 |
Long-term debt, excluding current portion | 179,289 | 32,510 |
Deferred income taxes | 50,995 | 50,995 |
Other long-term liabilities | 31,017 | 30,865 |
Total liabilities | 1,205,264 | 1,053,869 |
Commitments and contingencies | 0 | 0 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, authorized 5,000 shares; none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, authorized 100,000 shares; 50,071 issued and outstanding shares at January 31, 2015; 49,771 issued and outstanding shares at August 2, 2014 | 501 | 498 |
Additional paid-in capital | 416,126 | 402,875 |
Unallocated shares of Employee Stock Ownership Plan | 0 | -14 |
Accumulated other comprehensive loss | -17,044 | -5,152 |
Retained earnings | 906,043 | 845,157 |
Total stockholders’ equity | 1,305,626 | 1,243,364 |
Total liabilities and stockholders’ equity | $2,510,890 | $2,297,233 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jan. 31, 2015 | Aug. 02, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance (in dollars) | $7,345 | $7,589 |
Intangible assets, accumulated amortization (in dollars) | $20,895 | $19,002 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized shares | 5,000 | 5,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized shares | 100,000 | 100,000 |
Common stock, issued shares | 50,071 | 49,771 |
Common stock, outstanding shares | 50,071 | 49,771 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Jan. 31, 2015 | Feb. 01, 2014 |
Income Statement [Abstract] | ||||
Net sales | $2,016,546 | $1,646,041 | $4,009,022 | $3,248,052 |
Cost of sales | 1,717,347 | 1,377,874 | 3,390,827 | 2,708,709 |
Gross profit | 299,199 | 268,167 | 618,195 | 539,343 |
Operating expenses | 249,448 | 219,322 | 509,496 | 442,472 |
Restructuring and asset impairment expenses | 248 | 0 | 803 | 0 |
Total operating expenses | 249,696 | 219,322 | 510,299 | 442,472 |
Operating income | 49,503 | 48,845 | 107,896 | 96,871 |
Other expense (income): | ||||
Interest expense | 3,554 | 1,782 | 6,809 | 3,636 |
Interest income | -69 | -125 | -162 | -245 |
Other, net | -5 | 602 | 611 | 621 |
Total other expense, net | 3,480 | 2,259 | 7,258 | 4,012 |
Income before income taxes | 46,023 | 46,586 | 100,638 | 92,859 |
Provision for income taxes | 18,179 | 18,635 | 39,752 | 37,144 |
Net income | $27,844 | $27,951 | $60,886 | $55,715 |
Basic per share data: | ||||
Net income (usd per share) | $0.56 | $0.56 | $1.22 | $1.13 |
Weighted average basic shares of common stock outstanding | 50,025 | 49,615 | 49,957 | 49,490 |
Diluted per share data: | ||||
Net income (usd per share) | $0.55 | $0.56 | $1.21 | $1.12 |
Weighted average diluted shares of common stock outstanding | 50,277 | 49,873 | 50,195 | 49,766 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Jan. 31, 2015 | Feb. 01, 2014 |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $27,844 | $27,951 | $60,886 | $55,715 |
Other comprehensive income (loss), After-tax Amount: | ||||
Foreign currency translation adjustments | -9,330 | -5,326 | -11,892 | -5,617 |
Total other comprehensive loss, net of tax | -9,330 | -5,326 | -11,892 | -5,617 |
Total comprehensive income | $18,514 | $22,625 | $48,994 | $50,098 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid in Capital | Unallocated Shares of ESOP | Accumulated Other Comprehensive Loss | Retained Earnings |
In Thousands, unless otherwise specified | ||||||
Beginning Balance at Aug. 02, 2014 | $1,243,364 | $498 | $402,875 | ($14) | ($5,152) | $845,157 |
Beginning Balance (shares) at Aug. 02, 2014 | 49,771 | 49,771 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock Issued During Period, Value, Employee Stock Ownership Plan | 14 | 14 | ||||
Stock option exercises and restricted stock vestings, net of tax | 300 | |||||
Stock option exercises and restricted stock vestings, net of tax | 1,039 | 3 | 1,036 | |||
Share-based compensation | 9,554 | 9,554 | ||||
Tax benefit associated with stock plans | 2,661 | 2,661 | ||||
Foreign currency translation adjustments | -11,892 | -11,892 | ||||
Net income | 60,886 | 60,886 | ||||
Ending Balance at Jan. 31, 2015 | $1,305,626 | $501 | $416,126 | $0 | ($17,044) | $906,043 |
Ending Balance (shares) at Jan. 31, 2015 | 50,071 | 50,071 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $60,886 | $55,715 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 29,657 | 22,998 |
Share-based compensation | 9,554 | 9,507 |
(Gain) loss on disposals of property and equipment | -779 | 46 |
Excess tax benefits from share-based payment arrangements | -2,661 | -2,321 |
Restructuring and asset impairment | 803 | 0 |
Deferred income taxes | -6,052 | 0 |
Provision for doubtful accounts | 2,302 | 1,601 |
Non-cash interest expense | 129 | 1,050 |
Changes in assets and liabilities, net of acquired businesses: | ||
Accounts receivable | -50,753 | -66,988 |
Inventories | -92,525 | -60,139 |
Prepaid expenses and other assets | -22,217 | -15,953 |
Accounts payable | 20,146 | 19,022 |
Accrued expenses and other liabilities | -1,389 | -363 |
Net cash used in operating activities | -52,899 | -35,825 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | -56,163 | -76,320 |
Purchases of acquired businesses, net of cash acquired | -7,987 | -23,005 |
Proceeds from disposals of property and equipment | 840 | 102 |
Payments for (Proceeds from) Other Investing Activities | -3,000 | 0 |
Net cash used in investing activities | -66,310 | -99,223 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of long-term debt | -5,539 | -396 |
Proceeds from issuance of long-term debt | 150,000 | 0 |
Proceeds from borrowings under revolving credit line | 438,293 | 347,474 |
Repayments of borrowings under revolving credit line | -488,156 | -237,284 |
Increase in bank overdraft | 33,666 | 28,378 |
Proceeds from exercise of stock options | 3,202 | 1,692 |
Payment of employee restricted stock tax withholdings | -2,163 | -3,570 |
Excess tax benefits from share-based payment arrangements | 2,661 | 2,321 |
Capitalized debt issuance costs | -900 | 0 |
Net cash provided by financing activities | 131,064 | 138,615 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | -497 | -103 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 11,358 | 3,464 |
Cash and cash equivalents at beginning of period | 16,116 | 11,111 |
Cash and cash equivalents at end of period | 27,474 | 14,575 |
Supplemental disclosures of cash flow information: | ||
Non-cash financing activity | 12,383 | 0 |
Non-cash investing activity | 12,383 | 0 |
Cash paid for interest | 6,868 | 2,925 |
Cash paid for federal and state income taxes, net of refunds | $57,471 | $42,072 |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jan. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES |
(a) Nature of Business | |
United Natural Foods, Inc. and its subsidiaries (the “Company”) is a leading distributor and retailer of natural, organic and specialty products. The Company sells its products primarily throughout the United States and Canada. | |
(b) Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. | |
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial information, including the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and note disclosures normally required in complete financial statements prepared in conformity with accounting principles generally accepted in the United States have been condensed or omitted. In the Company’s opinion, these financial statements include all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The results of operations for interim periods, however, may not be indicative of the results that may be expected for a full year. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 2, 2014. | |
Net sales consist primarily of sales of natural, organic and specialty products to retailers, adjusted for customer volume discounts, returns and allowances. Net sales also include amounts charged by the Company to customers for shipping and handling and fuel surcharges. The principal components of cost of sales include the amount paid to manufacturers and growers for product sold, plus the cost of transportation necessary to bring the product to the Company’s distribution facilities. Cost of sales also includes amounts incurred by the Company’s manufacturing subsidiary, United Natural Trading LLC, which does business as Woodstock Farms Manufacturing, for inbound transportation costs and depreciation for manufacturing equipment offset by consideration received from suppliers in connection with the purchase or promotion of the suppliers’ products. Operating expenses include salaries and wages, employee benefits (including payments under the Company’s Employee Stock Ownership Plan), warehousing and delivery, selling, occupancy, insurance, administrative, share-based compensation and amortization expense. Operating expenses also include depreciation expense related to the wholesale and retail divisions. Other expense (income) includes interest on outstanding indebtedness, interest income, foreign exchange gains or losses and other miscellaneous income and expenses. | |
As noted above, the Company includes shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with inbound freight are generally recorded in cost of sales, whereas shipping and handling costs for selecting, quality assurance, and outbound transportation are recorded in operating expenses. Outbound shipping and handling costs, including allocated employee benefit expenses, totaled $112.7 million and $98.8 million for the three months ended January 31, 2015 and February 1, 2014, respectively. Outbound shipping and handling costs, including allocated employee benefit expenses, totaled $224.7 million and $195.1 million for the six months ended January 31, 2015 and February 1, 2014, respectively. | |
(c) Correction of Prior Period Errors | |
During the three months ended January 31, 2015, the Company recorded a cumulative prior period adjustment to net sales for $7.7 million related to amounts owed to a customer resulting from an incorrect calculation of contractual obligations to that customer from fiscal year 2009 through fiscal year 2014. The aggregate amount of the reduction in net sales related to this incorrect calculation was $9.3 million, which includes a $1.6 million reduction in net sales in the first quarter of fiscal 2015. The Company reviewed the impact of these corrections in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 99 "Materiality," and determined that these corrections were not material to prior or current periods. |
RECENTLY_ISSUED_ACCOUNTING_PRO
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jan. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS |
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new guidance requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures as appropriate. The new pronouncement is effective for public companies with annual periods ending after December 15, 2016, and interim periods thereafter. We do not expect the adoption of this guidance to have a significant impact on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, (Topic 606) (“ASU 2014-09”). The core principle of the new guidance is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new pronouncement is effective for public companies with annual periods, and interim periods within those periods, beginning after December 15, 2016, which for the Company will be the first quarter of the fiscal year ending July 28, 2018. We are in the process of evaluating the impact that this new guidance will have on the Company's consolidated financial statements. | |
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 2015) and Property Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an entity. The new guidance raises the threshold for disposals that would qualify as discontinued operations and also requires additional disclosures regarding discontinued operations, as well as material disposals that do not meet the definition of discontinued operations. The amendments are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2014, which would be the Company's first quarter of the fiscal year ending July 30, 2016, and should be applied on a prospective basis. We do not expect the adoption of these provisions to have a significant impact on the Company’s consolidated financial statements. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jan. 31, 2015 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS |
During the three months ended January 31, 2015, the Company recorded adjustments to certain provisional amounts recorded as of the fiscal year ended August 2, 2014 related to the acquisition of all of the outstanding capital stock of Tony's Fine Foods ("Tony’s") by the Company’s wholly-owned subsidiary, United Natural Foods West, Inc. ("UNFI West") on July 15, 2014. These adjustments include a decrease to goodwill of $3.1 million related to the settlement of a tax liability that was recorded as a payable as of August 2, 2014 and a decrease to goodwill of $0.1 million related to the working capital adjustment settlement. These adjustments were in addition to those recorded in the first quarter of fiscal 2015, which included (i) an increase to the fair value of the non-competition agreement assets and a decrease to the fair value of the customer relationship intangible asset by $0.9 million and $0.7 million, respectively, recorded within intangible assets based on updated valuation information, (ii) a decrease to the opening value of the property and equipment acquired of $0.8 million based on updated fair value information, and (iii) a decrease to goodwill of $0.1 million related to a preliminary working capital adjustment. The aforementioned adjustments decreased goodwill by a total of $3.2 million in the second fiscal quarter of 2015 and $2.7 million from the balance recorded as of August 2, 2014. While the Company is still completing the final valuation of the acquired fixed assets and intangibles and purchase accounting, the Company does not expect any material changes to the amounts recorded in the financial statements as of January 31, 2015. Net sales from the acquired business totaled approximately $232.6 million and $447.4 million for the three and six months ended January 31, 2015, respectively, and are included within the Company's wholesale segment. | |
The cash portion of the purchase price paid for Tony's was financed through borrowings under the Company’s amended and restated revolving credit facility. Acquisition costs related to the purchase have been expensed as incurred and are included within "Operating Expenses" in the Condensed Consolidated Statements of Income. The business was absorbed by the operations of the Company’s broadline distribution business; therefore, the Company does not record the expenses separately from the rest of the broadline distribution business and it is not possible to provide complete financial results separately for the business. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 6 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE | ||||||||||||
The following is a reconciliation of the basic and diluted number of shares used in computing earnings per share (in thousands): | |||||||||||||
Three months ended | Six months ended | ||||||||||||
January 31, | February 1, | January 31, | February 1, | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
Basic weighted average shares outstanding | 50,025 | 49,615 | 49,957 | 49,490 | |||||||||
Net effect of dilutive stock awards based upon the treasury stock method | 252 | 258 | 238 | 276 | |||||||||
Diluted weighted average shares outstanding | 50,277 | 49,873 | 50,195 | 49,766 | |||||||||
There were 1,456 anti-dilutive share-based awards outstanding for the three months ended January 31, 2015 and no anti-dilutive share-based awards outstanding for the three months ended February 1, 2014. For the six months ended January 31, 2015 and February 1, 2014, there were 8,336 and 4,703 anti-dilutive share-based awards outstanding, respectively. These anti-dilutive share-based awards were excluded from the calculation of diluted earnings per share. |
FAIR_VALUE_MEASUREMENTS_OF_FIN
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | 6 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | ||||||||||||||||
Interest Rate Swap Agreement | |||||||||||||||||
On January 23, 2015, the Company entered into a forward starting interest rate swap agreement with an effective date of August 3, 2015. The agreement provides for the Company to pay interest for a seven-year period at a fixed rate of 1.795% on an initial amortizing principal amount of $140.0 million while receiving interest for the same period at the one-month London Interbank Offered Rate ("LIBOR") on the same notional amount. The interest rate swap has been entered into as a hedge against LIBOR movements on the current variable rate related to the Company’s real-estate backed Term Loan Agreement entered into on August 14, 2014, explained in more detail in Note 7 "Long-Term Debt," to protect against rising interest rates. We expect that the interest rate swap will effectively fix the Company’s interest rate payments on the $140.0 million of debt. The swap agreement qualifies as an “effective” hedge under FASB Accounting Standards Codification ("ASC") 815, Derivatives and Hedging (“ASC 815”). | |||||||||||||||||
Interest rate swap agreements are entered into for periods consistent with related underlying exposures and do not constitute positions independent of those exposures. The Company’s interest rate swap agreement is designated as a cash flow hedge at January 31, 2015 and is reflected at fair value in the Condensed Consolidated Balance Sheet. | |||||||||||||||||
The Company uses the “Hypothetical Derivative Method” described in ASC 815 for quarterly prospective and retrospective assessments of hedge effectiveness, as well as for measurements of hedge ineffectiveness. Under this method, the Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. The effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income (outside of earnings) and subsequently reclassified to earnings in interest income when the hedged transactions affect earnings. Ineffectiveness resulting from the hedge is recorded as a gain or loss in the condensed consolidated statement of income as part of other income. The Company did not have any hedge ineffectiveness recognized in earnings during the three months ended January 31, 2015. The Company also monitors the risk of counterparty default on an ongoing basis. | |||||||||||||||||
Fuel Supply Agreements | |||||||||||||||||
The Company is party to several fixed price fuel supply agreements. During the first quarter of fiscal 2015, the Company entered into an agreement which requires it to purchase a portion of its diesel fuel each month at fixed prices through December 2015. These fixed price fuel agreements qualify for, and the Company has elected to utilize, the “normal purchase” exception under ASC 815 as physical deliveries will occur rather than net settlements, and therefore the fuel purchases under these contracts are expensed as incurred and included within operating expenses. During the six months ended February 1, 2014, the Company was a party to several similar agreements which required it to purchase a portion of its diesel fuel each month at fixed prices through December 2014 and which also qualified and were accounted for using the “normal purchase” exception under ASC 815, and therefore the fuel purchases under those contracts were also expensed as incurred and included within operating expenses. | |||||||||||||||||
Financial Instruments | |||||||||||||||||
There were no financial assets and liabilities measured on a recurring basis as of January 31, 2015 or August 2, 2014. | |||||||||||||||||
The fair value of the Company’s other financial instruments including cash, cash equivalents, accounts receivable, notes receivable, accounts payable and certain accrued expenses approximate carrying amounts due to the short-term nature of these instruments. The Company believes its credit risk is similar to the overall market and variable rates have not moved significantly since it initiated the underlying borrowings therefore the fair value of notes payable approximate carrying amounts. | |||||||||||||||||
The following estimated fair value amounts for long-term debt have been determined by the Company using available market information and appropriate valuation methodologies including the discounted cash flow method, taking into account the instruments’ interest rate, terms, maturity date and collateral, if any, in comparison to market rates for similar financial instruments and are, therefore, deemed Level 2 inputs. However, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. | |||||||||||||||||
31-Jan-15 | 2-Aug-14 | ||||||||||||||||
(In thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Liabilities: | |||||||||||||||||
Long-term debt, including current portion | $ | 190,379 | $ | 201,359 | $ | 33,500 | $ | 36,386 | |||||||||
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended | ||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
BUSINESS SEGMENTS | BUSINESS SEGMENTS | ||||||||||||||||||||
The Company has several operating divisions aggregated under the wholesale segment, which is the Company’s only reportable segment. These operating divisions have similar products and services, customer channels, distribution methods and historical margins. The wholesale segment is engaged in the national distribution of natural, organic and specialty foods, produce and related products in the United States and Canada. The Company has additional operating divisions that do not meet the quantitative thresholds for reportable segments and are therefore aggregated under the caption of “Other.” “Other” includes a retail division, which engages in the sale of natural foods and related products to the general public through retail storefronts on the east coast of the United States, a manufacturing division, which engages in importing, roasting and packaging of nuts, seeds, dried fruit and snack items, and the Company’s branded product lines. “Other” also includes certain corporate operating expenses that are not allocated to operating divisions and are necessary to operate the Company’s headquarters located in Providence, Rhode Island, which include depreciation, salaries, retainers, and other related expenses of officers, directors, corporate finance (including professional services), information technology, governance, legal, human resources and internal audit. As the Company continues to expand its business and serve its customers through a new national platform, these corporate expense amounts have increased, which is the primary driver behind the increasing operating losses within the “Other” category below. Non-operating expenses that are not allocated to the operating divisions are under the caption of “Unallocated Expenses.” The Company does not record its revenues for financial reporting purposes by product group, and it is therefore impracticable for the Company to report them accordingly. | |||||||||||||||||||||
The following table reflects business segment information for the periods indicated (in thousands): | |||||||||||||||||||||
Wholesale | Other | Eliminations | Unallocated | Consolidated | |||||||||||||||||
Three months ended January 31, 2015: | |||||||||||||||||||||
Net sales | $ | 1,997,058 | $ | 48,157 | $ | (28,669 | ) | $ | — | $ | 2,016,546 | ||||||||||
Operating income (loss) | 57,351 | (9,198 | ) | 1,350 | — | 49,503 | |||||||||||||||
Interest expense | — | — | — | 3,554 | 3,554 | ||||||||||||||||
Interest income | — | — | — | (69 | ) | (69 | ) | ||||||||||||||
Other, net | — | — | — | (5 | ) | (5 | ) | ||||||||||||||
Income before income taxes | 46,023 | ||||||||||||||||||||
Depreciation and amortization | 14,989 | 510 | — | — | 15,499 | ||||||||||||||||
Capital expenditures | 27,733 | 1,058 | — | — | 28,791 | ||||||||||||||||
Goodwill | 249,992 | 17,731 | — | — | 267,723 | ||||||||||||||||
Total assets | 2,319,514 | 202,553 | (11,177 | ) | — | 2,510,890 | |||||||||||||||
Three months ended February 1, 2014: | |||||||||||||||||||||
Net sales | $ | 1,625,934 | $ | 44,760 | $ | (24,653 | ) | $ | — | $ | 1,646,041 | ||||||||||
Operating income (loss) | 54,288 | (6,584 | ) | 1,141 | — | 48,845 | |||||||||||||||
Interest expense | — | — | — | 1,782 | 1,782 | ||||||||||||||||
Interest income | — | — | — | (125 | ) | (125 | ) | ||||||||||||||
Other, net | 602 | — | — | — | 602 | ||||||||||||||||
Income before income taxes | 46,586 | ||||||||||||||||||||
Depreciation and amortization | 11,335 | 425 | — | — | 11,760 | ||||||||||||||||
Capital expenditures | 42,891 | 182 | — | — | 43,073 | ||||||||||||||||
Goodwill | 191,485 | 17,731 | — | — | 209,216 | ||||||||||||||||
Total assets | 1,800,189 | 161,516 | (10,724 | ) | — | 1,950,981 | |||||||||||||||
Wholesale | Other | Eliminations | Unallocated | Consolidated | |||||||||||||||||
Six months ended January 31, 2015: | |||||||||||||||||||||
Net sales | $ | 3,967,777 | $ | 107,727 | $ | (66,482 | ) | $ | — | $ | 4,009,022 | ||||||||||
Operating income (loss) | 124,060 | (16,797 | ) | 633 | — | 107,896 | |||||||||||||||
Interest expense | — | — | — | 6,809 | 6,809 | ||||||||||||||||
Interest income | — | — | — | (162 | ) | (162 | ) | ||||||||||||||
Other, net | — | — | — | 611 | 611 | ||||||||||||||||
Income before income taxes | 100,638 | ||||||||||||||||||||
Depreciation and amortization | 27,398 | 2,259 | — | — | 29,657 | ||||||||||||||||
Capital expenditures | 54,670 | 1,493 | — | — | 56,163 | ||||||||||||||||
Goodwill | 249,992 | 17,731 | — | — | 267,723 | ||||||||||||||||
Total assets | 2,319,514 | 202,553 | (11,177 | ) | — | 2,510,890 | |||||||||||||||
Six months ended February 1, 2014: | |||||||||||||||||||||
Net sales | $ | 3,210,177 | $ | 93,730 | $ | (55,855 | ) | $ | — | $ | 3,248,052 | ||||||||||
Operating income (loss) | 111,662 | (14,545 | ) | (246 | ) | — | 96,871 | ||||||||||||||
Interest expense | — | — | — | 3,636 | 3,636 | ||||||||||||||||
Interest income | — | — | — | (245 | ) | (245 | ) | ||||||||||||||
Other, net | 621 | — | — | — | 621 | ||||||||||||||||
Income before income taxes | 92,859 | ||||||||||||||||||||
Depreciation and amortization | 21,906 | 1,092 | — | — | 22,998 | ||||||||||||||||
Capital expenditures | 76,003 | 317 | — | — | 76,320 | ||||||||||||||||
Goodwill | 191,485 | 17,731 | — | — | 209,216 | ||||||||||||||||
Total assets | 1,800,189 | 161,516 | (10,724 | ) | — | 1,950,981 | |||||||||||||||
LONGTERM_DEBT
LONG-TERM DEBT | 6 Months Ended |
Jan. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT |
On August 14, 2014, the Company entered into a real-estate backed Term Loan Agreement (the “Term Loan Agreement”) by and among the Company, its wholly-owned subsidiary Albert’s Organics, Inc. (“Albert's,” and together with the Company, the “Borrowers”), the financial institutions that are parties thereto as lenders (collectively, the “Lenders”), Bank of America, N.A. as administrative agent for the Lenders (the “Administrative Agent”) and the other parties thereto. The total initial borrowings under the Term Loan Agreement were $150.0 million. Borrowings under the Term Loan Agreement are guaranteed by most of the Company's wholly-owned subsidiaries who are not also Borrowers. The Borrowers are required to make $2.5 million principal payments quarterly beginning on November 1, 2014. The Term Loan Agreement will terminate on the earlier of (a) August 14, 2022 and (b) the date that is ninety days prior to the termination date of the Company’s amended and restated revolving credit agreement, as amended. Under the Term Loan Agreement, the Borrowers at their option may request the establishment of one or more new term loan commitments in increments of at least $10.0 million, but not to exceed $50.0 million in total, subject to the approval of the Lenders electing to participate in such incremental loans and the satisfaction of the conditions required by the Term Loan Agreement. The Borrowers will be required to make quarterly principal payments on these incremental borrowings in accordance with the terms of the Term Loan Agreement. | |
Borrowings under the Term Loan Agreement bear interest at rates that, at the Company's option, can be either: (1) a base rate generally defined as the sum of (i) the highest of (x) the Administrative Agent's prime rate, (y) the average overnight federal funds effective rate plus 0.50% and (z) one-month LIBOR plus one percent (1%) per annum and (ii) a margin of 1.50%; or, (2) a LIBOR rate generally defined as the sum of (i) LIBOR (as published by Reuters or other commercially available sources) for one, two, three or six months or, if approved by all affected lenders, nine months (all as selected by the Company), and (ii) a margin of 2.50%. Interest accrued on borrowings under the Term Loan Agreement is payable in arrears. Interest accrued on any LIBOR loan is payable on the last day of the interest period applicable to the loan and, with respect to any LIBOR loan of more than three (3) months, on the last day of every three (3) months of such interest period. Interest accrued on base rate loans is payable on the first day of every month. The Company is also required to pay certain customary fees to the Administrative Agent. The Borrowers' obligations under the Term Loan Agreement are secured by certain parcels of the Borrowers' real property. | |
As of January 31, 2015, the Company had borrowings of $145.0 million under the Term Loan Agreement which is included in "Long-term debt" on the Condensed Consolidated Balance Sheet. | |
During the three months ended January 31, 2015, the Company entered into an amendment to an existing lease agreement for the office space utilized as the Company's corporate headquarters in Providence, Rhode Island. The amendment provides for additional office space to be utilized by the Company and extends the lease term for an additional 10 years. The lease qualifies for capital lease treatment pursuant to FASB ASC 840, Leases, and the estimated fair value of the building is recorded on the Condensed Consolidated Balance Sheet with the capital lease obligation included in "Long-term debt." A portion of each lease payment reduces the amount of the lease obligation, and a portion is recorded as interest expense at an effective rate of approximately 12.37%. The capital lease obligation as of January 31, 2015 was $12.4 million. The Company recorded $0.1 million of interest expense during the three months ended January 31, 2015. | |
During the fiscal year ended July 28, 2012, the Company entered into a lease agreement for a new distribution facility in Aurora, Colorado. At the conclusion of the fiscal year ended August 3, 2013, actual construction costs exceeded the construction allowance as defined by the lease agreement, and therefore, the Company determined it met the criteria for continuing involvement pursuant to FASB ASC 840, Leases, and applied the financing method to account for this transaction during the fourth quarter of fiscal 2013. Under the financing method, the book value of the distribution facility and related accumulated depreciation remains on the balance sheet. The construction allowance is recorded as a financing obligation in "Long-term debt." A portion of each lease payment reduces the amount of the financing obligation, and a portion is recorded as interest expense at an effective rate of approximately 7.32%. The financing obligation as of January 31, 2015 was $33.0 million. The Company recorded $0.6 million of interest expense during each of the three months ended January 31, 2015 and February 1, 2014 and $1.2 million during each of the six months ended January 31, 2015 and February 1, 2014. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jan. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | (b) Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. | |
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial information, including the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and note disclosures normally required in complete financial statements prepared in conformity with accounting principles generally accepted in the United States have been condensed or omitted. In the Company’s opinion, these financial statements include all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The results of operations for interim periods, however, may not be indicative of the results that may be expected for a full year. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 2, 2014. | |
Net sales consist primarily of sales of natural, organic and specialty products to retailers, adjusted for customer volume discounts, returns and allowances. Net sales also include amounts charged by the Company to customers for shipping and handling and fuel surcharges. The principal components of cost of sales include the amount paid to manufacturers and growers for product sold, plus the cost of transportation necessary to bring the product to the Company’s distribution facilities. Cost of sales also includes amounts incurred by the Company’s manufacturing subsidiary, United Natural Trading LLC, which does business as Woodstock Farms Manufacturing, for inbound transportation costs and depreciation for manufacturing equipment offset by consideration received from suppliers in connection with the purchase or promotion of the suppliers’ products. Operating expenses include salaries and wages, employee benefits (including payments under the Company’s Employee Stock Ownership Plan), warehousing and delivery, selling, occupancy, insurance, administrative, share-based compensation and amortization expense. Operating expenses also include depreciation expense related to the wholesale and retail divisions. Other expense (income) includes interest on outstanding indebtedness, interest income, foreign exchange gains or losses and other miscellaneous income and expenses. | |
As noted above, the Company includes shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with inbound freight are generally recorded in cost of sales, whereas shipping and handling costs for selecting, quality assurance, and outbound transportation are recorded in operating expenses. Outbound shipping and handling costs, including allocated employee benefit expenses, totaled $112.7 million and $98.8 million for the three months ended January 31, 2015 and February 1, 2014, respectively. Outbound shipping and handling costs, including allocated employee benefit expenses, totaled $224.7 million and $195.1 million for the six months ended January 31, 2015 and February 1, 2014, respectively. |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 6 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Schedule of reconciliation of the weighted average number of shares outstanding used in the computation of the basic and diluted earnings per share | The following is a reconciliation of the basic and diluted number of shares used in computing earnings per share (in thousands): | ||||||||||||
Three months ended | Six months ended | ||||||||||||
January 31, | February 1, | January 31, | February 1, | ||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
Basic weighted average shares outstanding | 50,025 | 49,615 | 49,957 | 49,490 | |||||||||
Net effect of dilutive stock awards based upon the treasury stock method | 252 | 258 | 238 | 276 | |||||||||
Diluted weighted average shares outstanding | 50,277 | 49,873 | 50,195 | 49,766 | |||||||||
FAIR_VALUE_MEASUREMENTS_OF_FIN1
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | |||||||||||||||||
31-Jan-15 | 2-Aug-14 | ||||||||||||||||
(In thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Liabilities: | |||||||||||||||||
Long-term debt, including current portion | $ | 190,379 | $ | 201,359 | $ | 33,500 | $ | 36,386 | |||||||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 6 Months Ended | ||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Schedule of business segment information | The following table reflects business segment information for the periods indicated (in thousands): | ||||||||||||||||||||
Wholesale | Other | Eliminations | Unallocated | Consolidated | |||||||||||||||||
Three months ended January 31, 2015: | |||||||||||||||||||||
Net sales | $ | 1,997,058 | $ | 48,157 | $ | (28,669 | ) | $ | — | $ | 2,016,546 | ||||||||||
Operating income (loss) | 57,351 | (9,198 | ) | 1,350 | — | 49,503 | |||||||||||||||
Interest expense | — | — | — | 3,554 | 3,554 | ||||||||||||||||
Interest income | — | — | — | (69 | ) | (69 | ) | ||||||||||||||
Other, net | — | — | — | (5 | ) | (5 | ) | ||||||||||||||
Income before income taxes | 46,023 | ||||||||||||||||||||
Depreciation and amortization | 14,989 | 510 | — | — | 15,499 | ||||||||||||||||
Capital expenditures | 27,733 | 1,058 | — | — | 28,791 | ||||||||||||||||
Goodwill | 249,992 | 17,731 | — | — | 267,723 | ||||||||||||||||
Total assets | 2,319,514 | 202,553 | (11,177 | ) | — | 2,510,890 | |||||||||||||||
Three months ended February 1, 2014: | |||||||||||||||||||||
Net sales | $ | 1,625,934 | $ | 44,760 | $ | (24,653 | ) | $ | — | $ | 1,646,041 | ||||||||||
Operating income (loss) | 54,288 | (6,584 | ) | 1,141 | — | 48,845 | |||||||||||||||
Interest expense | — | — | — | 1,782 | 1,782 | ||||||||||||||||
Interest income | — | — | — | (125 | ) | (125 | ) | ||||||||||||||
Other, net | 602 | — | — | — | 602 | ||||||||||||||||
Income before income taxes | 46,586 | ||||||||||||||||||||
Depreciation and amortization | 11,335 | 425 | — | — | 11,760 | ||||||||||||||||
Capital expenditures | 42,891 | 182 | — | — | 43,073 | ||||||||||||||||
Goodwill | 191,485 | 17,731 | — | — | 209,216 | ||||||||||||||||
Total assets | 1,800,189 | 161,516 | (10,724 | ) | — | 1,950,981 | |||||||||||||||
Wholesale | Other | Eliminations | Unallocated | Consolidated | |||||||||||||||||
Six months ended January 31, 2015: | |||||||||||||||||||||
Net sales | $ | 3,967,777 | $ | 107,727 | $ | (66,482 | ) | $ | — | $ | 4,009,022 | ||||||||||
Operating income (loss) | 124,060 | (16,797 | ) | 633 | — | 107,896 | |||||||||||||||
Interest expense | — | — | — | 6,809 | 6,809 | ||||||||||||||||
Interest income | — | — | — | (162 | ) | (162 | ) | ||||||||||||||
Other, net | — | — | — | 611 | 611 | ||||||||||||||||
Income before income taxes | 100,638 | ||||||||||||||||||||
Depreciation and amortization | 27,398 | 2,259 | — | — | 29,657 | ||||||||||||||||
Capital expenditures | 54,670 | 1,493 | — | — | 56,163 | ||||||||||||||||
Goodwill | 249,992 | 17,731 | — | — | 267,723 | ||||||||||||||||
Total assets | 2,319,514 | 202,553 | (11,177 | ) | — | 2,510,890 | |||||||||||||||
Six months ended February 1, 2014: | |||||||||||||||||||||
Net sales | $ | 3,210,177 | $ | 93,730 | $ | (55,855 | ) | $ | — | $ | 3,248,052 | ||||||||||
Operating income (loss) | 111,662 | (14,545 | ) | (246 | ) | — | 96,871 | ||||||||||||||
Interest expense | — | — | — | 3,636 | 3,636 | ||||||||||||||||
Interest income | — | — | — | (245 | ) | (245 | ) | ||||||||||||||
Other, net | 621 | — | — | — | 621 | ||||||||||||||||
Income before income taxes | 92,859 | ||||||||||||||||||||
Depreciation and amortization | 21,906 | 1,092 | — | — | 22,998 | ||||||||||||||||
Capital expenditures | 76,003 | 317 | — | — | 76,320 | ||||||||||||||||
Goodwill | 191,485 | 17,731 | — | — | 209,216 | ||||||||||||||||
Total assets | 1,800,189 | 161,516 | (10,724 | ) | — | 1,950,981 | |||||||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2015 | Nov. 01, 2014 | Feb. 01, 2014 | Jan. 31, 2015 | Feb. 01, 2014 | |
Significant Accounting Policies | |||||
Total outbound shipping and handling costs | $112,700,000 | $98,800,000 | $224,700,000 | $195,100,000 | |
Reduction to net sales | $7,736,000 | $1,600,000 | $9,326,000 |
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Jan. 31, 2015 | Feb. 01, 2014 | Nov. 01, 2014 | |
Acquisitions | |||||
Net sales | $2,016,546,000 | $1,646,041,000 | $4,009,022,000 | $3,248,052,000 | |
Payments to Acquire Businesses, Net of Cash Acquired | -7,987,000 | -23,005,000 | |||
Tony's Fine Foods [Member] | |||||
Acquisitions | |||||
Goodwill, Purchase Accounting Adjustments | 3,200,000 | 2,700,000 | |||
Net sales | 232,600,000 | 447,400,000 | |||
Purchase Accounting Adjustments [Domain] | |||||
Acquisitions | |||||
Identifiable intangible assets | 900,000 | ||||
Customer relationship | 700,000 | ||||
Property and equipment | 800,000 | ||||
Goodwill, Purchase Accounting Adjustments | $3,100,000 | $100,000 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Jan. 31, 2015 | Feb. 01, 2014 | |
Reconciliation of the basic and diluted number of shares used in computing earnings per share: | ||||
Basic weighted average shares outstanding | 50,025,000 | 49,615,000 | 49,957,000 | 49,490,000 |
Net effect of dilutive stock awards based upon the treasury stock method | 252,000 | 258,000 | 238,000 | 276,000 |
Diluted weighted average shares outstanding | 50,277,000 | 49,873,000 | 50,195,000 | 49,766,000 |
Anti-dilutive share-based payment awards outstanding (in shares) | 1,456 | 0 | 8,336 | 4,703 |
FAIR_VALUE_MEASUREMENTS_OF_FIN2
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Details) (USD $) | Jan. 31, 2015 | Aug. 02, 2014 |
Fair Value Disclosures [Abstract] | ||
Long term debt, including current portion, carrying value | $190,379,000 | $33,500,000 |
Long term debt, including current portion, fair value | 201,359,000 | 36,386,000 |
Derivative, Forward Interest Rate | 1.80% | |
Derivative, Notional Amount | $140,000,000 |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Jan. 31, 2015 | Feb. 01, 2014 | Aug. 02, 2014 |
Business segment information | |||||
Net sales | $2,016,546 | $1,646,041 | $4,009,022 | $3,248,052 | |
Operating income (loss) | 49,503 | 48,845 | 107,896 | 96,871 | |
Interest expense | 3,554 | 1,782 | 6,809 | 3,636 | |
Interest income | -69 | -125 | -162 | -245 | |
Other, net | -5 | 602 | 611 | 621 | |
Income before income taxes | 46,023 | 46,586 | 100,638 | 92,859 | |
Depreciation and amortization | 15,499 | 11,760 | 29,657 | 22,998 | |
Capital expenditures | 28,791 | 43,073 | 56,163 | 76,320 | |
Goodwill | 267,723 | 209,216 | 267,723 | 209,216 | 274,548 |
Total assets | 2,510,890 | 1,950,981 | 2,510,890 | 1,950,981 | 2,297,233 |
Wholesale | |||||
Business segment information | |||||
Net sales | 1,997,058 | 1,625,934 | 3,967,777 | 3,210,177 | |
Operating income (loss) | 57,351 | 54,288 | 124,060 | 111,662 | |
Interest expense | 0 | 0 | 0 | 0 | |
Interest income | 0 | 0 | 0 | 0 | |
Other, net | 0 | -602 | 0 | 621 | |
Depreciation and amortization | 14,989 | 11,335 | 27,398 | 21,906 | |
Capital expenditures | 27,733 | 42,891 | 54,670 | 76,003 | |
Goodwill | 249,992 | 191,485 | 249,992 | 191,485 | |
Total assets | 2,319,514 | 1,800,189 | 2,319,514 | 1,800,189 | |
Other | |||||
Business segment information | |||||
Net sales | 48,157 | 44,760 | 107,727 | 93,730 | |
Operating income (loss) | -9,198 | -6,584 | -16,797 | -14,545 | |
Interest expense | 0 | 0 | 0 | 0 | |
Interest income | 0 | 0 | 0 | 0 | |
Other, net | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 510 | 425 | 2,259 | 1,092 | |
Capital expenditures | 1,058 | 182 | 1,493 | 317 | |
Goodwill | 17,731 | 17,731 | 17,731 | 17,731 | |
Total assets | 202,553 | 161,516 | 202,553 | 161,516 | |
Eliminations | |||||
Business segment information | |||||
Net sales | -28,669 | -24,653 | -66,482 | -55,855 | |
Operating income (loss) | 1,350 | 1,141 | 633 | -246 | |
Interest expense | 0 | 0 | 0 | 0 | |
Interest income | 0 | 0 | 0 | 0 | |
Other, net | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | 0 | |
Total assets | -11,177 | -10,724 | -11,177 | -10,724 | |
Unallocated | |||||
Business segment information | |||||
Net sales | 0 | 0 | 0 | 0 | |
Operating income (loss) | 0 | 0 | 0 | 0 | |
Interest expense | 3,554 | 1,782 | 6,809 | 3,636 | |
Interest income | 69 | 125 | -162 | -245 | |
Other, net | -5 | 0 | 611 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | 0 | |
Total assets | $0 | $0 | $0 | $0 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2015 | Feb. 01, 2014 | Jan. 31, 2015 | Feb. 01, 2014 | Aug. 02, 2014 | |
Long-term debt instrument | |||||
Proceeds from issuance of long-term debt | $150,000,000 | $0 | |||
Repayments of Long-term Debt | 5,539,000 | 396,000 | |||
Long term debt, including current portion, carrying value | 190,379,000 | 190,379,000 | 33,500,000 | ||
Interest expense | 3,554,000 | 1,782,000 | 6,809,000 | 3,636,000 | |
Term loan | |||||
Long-term debt instrument | |||||
Repayments of Long-term Debt | 2,500,000 | ||||
Long term debt, including current portion, carrying value | 145,000,000 | 145,000,000 | |||
Capital lease obligation | |||||
Long-term debt instrument | |||||
Interest Expense, Lessee, Assets under Capital Lease | 100,000 | ||||
Lease Term | 10 years | ||||
Effective interest rate on debt | 12.37% | 12.37% | |||
Capital Lease Obligation | 12,400,000 | 12,400,000 | |||
Sale Leaseback Financing Obligation | |||||
Long-term debt instrument | |||||
Long term debt, including current portion, carrying value | 33,000,000 | 33,000,000 | |||
Effective interest rate on debt | 7.32% | 7.32% | |||
Interest expense | 600,000 | 1,200,000 | |||
Minimum | Term loan | |||||
Long-term debt instrument | |||||
Long term debt, including current portion, carrying value | 10,000,000 | 10,000,000 | |||
Maximum | Term loan | |||||
Long-term debt instrument | |||||
Long term debt, including current portion, carrying value | $50,000,000 | $50,000,000 | |||
Base Rate [Member] | Term loan | |||||
Long-term debt instrument | |||||
Debt Instrument, Description of Variable Rate Basis | Administrative Agent's prime rate | ||||
initial applicable margin | 1.50% | ||||
Federal Funds Effective Swap Rate [Member] | Term loan | |||||
Long-term debt instrument | |||||
Debt Instrument, Description of Variable Rate Basis | overnight federal funds effective rate | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
One-month LIBOR | Term loan | |||||
Long-term debt instrument | |||||
Debt Instrument, Description of Variable Rate Basis | one-month LIBOR | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Term loan | |||||
Long-term debt instrument | |||||
Debt Instrument, Description of Variable Rate Basis | one, two, three or six months or, if approved by all affected lenders, nine months | ||||
initial applicable margin | 2.50% |