Guarantor Subsidiaries | 6 Months Ended |
Aug. 02, 2014 |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' |
Guarantor Subsidiaries | ' |
Guarantor Subsidiaries |
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On March 5, 2010, Express, LLC and Express Finance (the “Subsidiary Issuers”), both 100% owned indirect subsidiaries of Express, Inc., issued the Senior Notes. Express, Inc. (“Guarantor”) and certain of its indirect 100% owned subsidiaries (“Guarantor Subsidiaries”) have guaranteed, on a joint and several basis, the obligations under the Senior Notes. The guarantees are not full and unconditional because Guarantor Subsidiaries can be released and relieved of their obligations under certain customary circumstances contained in the indenture governing the Senior Notes. These circumstances include the following, so long as other applicable provisions of the indenture are adhered to: any sale or other disposition of all or substantially all of the assets of any Guarantor Subsidiary, any sale or other disposition of capital stock of any Guarantor Subsidiary, or the designation of any restricted subsidiary that is a Guarantor Subsidiary as an unrestricted subsidiary. |
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The following consolidating schedules present the condensed financial information on a combined basis. |
EXPRESS, INC. |
CONDENSED CONSOLIDATING BALANCE SHEET |
(Amounts in thousands) |
(Unaudited) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| August 2, 2014 |
| Express, Inc. | | Subsidiary | | Guarantor | | Other | | Consolidating Adjustments | | Consolidated |
Issuers | Subsidiaries | Subsidiaries | Total |
Assets | | | | | | | | | | | |
Current assets | | | | | | | | | | | |
Cash and cash equivalents | $ | 1,915 | | | $ | 214,796 | | | $ | 25,839 | | | $ | 10,777 | | | $ | — | | | $ | 253,327 | |
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Receivables, net | — | | | 11,097 | | | 7,965 | | | 1,067 | | | — | | | 20,129 | |
|
Inventories | — | | | 16,001 | | | 219,739 | | | 4,158 | | | — | | | 239,898 | |
|
Prepaid minimum rent | — | | | 341 | | | 26,936 | | | 1,234 | | | — | | | 28,511 | |
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Intercompany receivable | — | | | — | | | 83,248 | | | 5,784 | | | (89,032 | ) | | — | |
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Intercompany loan receivable | — | | | 5,557 | | | — | | | — | | | (5,557 | ) | | — | |
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Other | 481 | | | 55,277 | | | 5,315 | | | 183 | | | (35,938 | ) | | 25,318 | |
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Total current assets | 2,396 | | | 303,069 | | | 369,042 | | | 23,203 | | | (130,527 | ) | | 567,183 | |
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Property and equipment, net | — | | | 62,093 | | | 328,846 | | | 18,918 | | | — | | | 409,857 | |
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Tradename/domain name | — | | | 197,822 | | | — | | | — | | | — | | | 197,822 | |
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Investment in subsidiary | 490,846 | | | 438,153 | | | — | | | 485,062 | | | (1,414,061 | ) | | — | |
|
Deferred tax assets | 661 | | | 6,637 | | | 10,182 | | | — | | | — | | | 17,480 | |
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Other assets | — | | | 5,560 | | | 1,012 | | | 8 | | | — | | | 6,580 | |
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Total assets | $ | 493,903 | | | $ | 1,013,334 | | | $ | 709,082 | | | $ | 527,191 | | | $ | (1,544,588 | ) | | $ | 1,198,922 | |
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Liabilities and stockholders’ equity | | | | | | | | | | | |
|
Current liabilities | | | | | | | | | | | |
|
Accounts payable | $ | — | | | $ | 165,314 | | | $ | 2,729 | | | $ | 775 | | | $ | — | | | $ | 168,818 | |
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Deferred revenue | — | | | 893 | | | 19,556 | | | 160 | | | — | | | 20,609 | |
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Accrued expenses | — | | | 42,704 | | | 80,365 | | | 773 | | | (35,938 | ) | | 87,904 | |
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Intercompany payable | — | | | 89,032 | | | — | | | — | | | (89,032 | ) | | — | |
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Intercompany loan payable | — | | | — | | | — | | | 5,557 | | | (5,557 | ) | | — | |
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Total current liabilities | — | | | 297,943 | | | 102,650 | | | 7,265 | | | (130,527 | ) | | 277,331 | |
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Long-term debt | — | | | 199,345 | | | — | | | — | | | — | | | 199,345 | |
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Deferred lease credits | — | | | 4,457 | | | 109,997 | | | 7,407 | | | — | | | 121,861 | |
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Other long-term liabilities | — | | | 26,527 | | | 79,949 | | | 6 | | | — | | | 106,482 | |
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Total liabilities | — | | | 528,272 | | | 292,596 | | | 14,678 | | | (130,527 | ) | | 705,019 | |
|
Commitments and Contingencies (Note 10) | | | | | | | | | | | |
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Total stockholders’ equity | 493,903 | | | 485,062 | | | 416,486 | | | 512,513 | | | (1,414,061 | ) | | 493,903 | |
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Total liabilities and stockholders’ equity | $ | 493,903 | | | $ | 1,013,334 | | | $ | 709,082 | | | $ | 527,191 | | | $ | (1,544,588 | ) | | $ | 1,198,922 | |
|
EXPRESS, INC. |
CONDENSED CONSOLIDATING BALANCE SHEET |
(Amounts in thousands) |
(Unaudited) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| February 1, 2014 |
| Express, Inc. | | Subsidiary | | Guarantor | | Other | | Consolidating Adjustments | | Consolidated |
Issuers | Subsidiaries | Subsidiaries | Total |
Assets | | | | | | | | | | | |
Current assets | | | | | | | | | | | |
Cash and cash equivalents | $ | 1,984 | | | $ | 283,707 | | | $ | 19,631 | | | $ | 6,562 | | | $ | — | | | $ | 311,884 | |
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Receivables, net | — | | | 10,410 | | | 5,880 | | | 1,094 | | | — | | | 17,384 | |
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Inventories | — | | | 15,928 | | | 192,762 | | | 3,820 | | | — | | | 212,510 | |
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Prepaid minimum rent | — | | | 689 | | | 26,658 | | | 1,207 | | | — | | | 28,554 | |
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Intercompany receivable | — | | | — | | | 114,258 | | | 5,784 | | | (120,042 | ) | | — | |
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Intercompany loan receivable | — | | | 28,080 | | | — | | | — | | | (28,080 | ) | | — | |
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Other | 237 | | | 8,523 | | | 4,552 | | | 54 | | | (237 | ) | | 13,129 | |
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Total current assets | 2,221 | | | 347,337 | | | 363,741 | | | 18,521 | | | (148,359 | ) | | 583,461 | |
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Property and equipment, net | — | | | 56,922 | | | 301,684 | | | 17,516 | | | — | | | 376,122 | |
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Tradename/domain name | — | | | 197,812 | | | — | | | — | | | — | | | 197,812 | |
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Investment in subsidiary | 471,687 | | | 393,156 | | | — | | | 465,902 | | | (1,330,745 | ) | | — | |
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Deferred tax assets | 661 | | | 6,637 | | | 10,182 | | | 78 | | | — | | | 17,558 | |
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Other assets | — | | | 6,295 | | | 1,416 | | | 6 | | | — | | | 7,717 | |
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Total assets | $ | 474,569 | | | $ | 1,008,159 | | | $ | 677,023 | | | $ | 502,023 | | | $ | (1,479,104 | ) | | $ | 1,182,670 | |
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Liabilities and stockholders’ equity | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | |
Accounts payable | $ | — | | | $ | 150,420 | | | $ | 2,873 | | | $ | 1,443 | | | $ | — | | | $ | 154,736 | |
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Deferred revenue | — | | | 1,004 | | | 27,264 | | | 168 | | | — | | | 28,436 | |
|
Accrued expenses | — | | | 40,087 | | | 75,159 | | | 1,026 | | | (237 | ) | | 116,035 | |
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Intercompany payable | — | | | 120,042 | | | — | | | — | | | (120,042 | ) | | — | |
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Intercompany loan payable | — | | | — | | | — | | | 28,080 | | | (28,080 | ) | | — | |
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Total current liabilities | — | | | 311,553 | | | 105,296 | | | 30,717 | | | (148,359 | ) | | 299,207 | |
|
Long-term debt | — | | | 199,170 | | | — | | | — | | | — | | | 199,170 | |
|
Deferred lease credits | — | | | 4,963 | | | 103,129 | | | 6,417 | | | — | | | 114,509 | |
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Other long-term liabilities | — | | | 26,571 | | | 68,644 | | | — | | | — | | | 95,215 | |
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Total liabilities | — | | | 542,257 | | | 277,069 | | | 37,134 | | | (148,359 | ) | | 708,101 | |
|
Commitments and Contingencies (Note 10) | | | | | | | | | | | |
|
Total stockholders’ equity | 474,569 | | | 465,902 | | | 399,954 | | | 464,889 | | | (1,330,745 | ) | | 474,569 | |
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Total liabilities and stockholders’ equity | $ | 474,569 | | | $ | 1,008,159 | | | $ | 677,023 | | | $ | 502,023 | | | $ | (1,479,104 | ) | | $ | 1,182,670 | |
|
EXPRESS, INC. |
CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME |
(Amounts in thousands) |
(Unaudited) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Thirteen Weeks Ended August 2, 2014 |
| Express, Inc. | | Subsidiary | | Guarantor | | Other | | Consolidating Adjustments | | Consolidated |
Issuers | Subsidiaries | Subsidiaries | Total |
Net sales | $ | — | | | $ | 232,545 | | | $ | 461,901 | | | $ | 9,592 | | | $ | (222,618 | ) | | $ | 481,420 | |
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Cost of goods sold, buying and occupancy costs | — | | | 186,362 | | | 375,000 | | | 6,651 | | | (222,618 | ) | | 345,395 | |
|
Gross profit | — | | | 46,183 | | | 86,901 | | | 2,941 | | | — | | | 136,025 | |
|
Selling, general, and administrative expenses | 438 | | | 43,706 | | | 74,899 | | | 2,880 | | | — | | | 121,923 | |
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Other operating income, net | — | | | (5 | ) | | (501 | ) | | — | | | — | | | (506 | ) |
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Operating (loss) income | (438 | ) | | 2,482 | | | 12,503 | | | 61 | | | — | | | 14,608 | |
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Interest expense, net | — | | | 5,323 | | | 618 | | | — | | | — | | | 5,941 | |
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(Income) loss in subsidiary | (7,132 | ) | | (7,096 | ) | | — | | | (7,132 | ) | | 21,360 | | | — | |
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Other income, net | — | | | 4 | | | — | | | 18 | | | — | | | 22 | |
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Income (loss) before income taxes | 6,694 | | | 4,251 | | | 11,885 | | | 7,175 | | | (21,360 | ) | | 8,645 | |
|
Income tax (benefit) expense | (173 | ) | | (2,881 | ) | | 4,843 | | | (11 | ) | | — | | | 1,778 | |
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Net income (loss) | $ | 6,867 | | | $ | 7,132 | | | $ | 7,042 | | | $ | 7,186 | | | $ | (21,360 | ) | | $ | 6,867 | |
|
Foreign currency translation | 102 | | | 102 | | | — | | | 204 | | | (306 | ) | | 102 | |
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Comprehensive income (loss) | $ | 6,969 | | | $ | 7,234 | | | $ | 7,042 | | | $ | 7,390 | | | $ | (21,666 | ) | | $ | 6,969 | |
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| | | | | | | | | | | | | | | | | | | | | | | |
| Thirteen Weeks Ended August 3, 2013 |
| Express, Inc. | | Subsidiary | | Guarantor | | Other | | Consolidating Adjustments | | Consolidated |
Issuers | Subsidiaries | Subsidiaries | Total |
Net sales | $ | — | | | $ | 232,014 | | | $ | 475,758 | | | $ | 8,546 | | | $ | (226,243 | ) | | $ | 490,075 | |
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Cost of goods sold, buying and occupancy costs | — | | | 176,962 | | | 381,305 | | | 5,508 | | | (226,247 | ) | | 337,528 | |
|
Gross profit | — | | | 55,052 | | | 94,453 | | | 3,038 | | | 4 | | | 152,547 | |
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Selling, general, and administrative expenses | 119 | | | 41,467 | | | 75,033 | | | 2,557 | | | — | | | 119,176 | |
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Other operating (income) expense, net | — | | | — | | | (62 | ) | | 14 | | | 4 | | | (44 | ) |
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Operating (loss) income | (119 | ) | | 13,585 | | | 19,482 | | | 467 | | | — | | | 33,415 | |
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Interest expense (income), net | — | | | 5,285 | | | (520 | ) | | 11 | | | — | | | 4,776 | |
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(Income) loss in subsidiary | (16,982 | ) | | (12,238 | ) | | — | | | (16,982 | ) | | 46,202 | | | — | |
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Other expense, net | — | | | — | | | — | | | 576 | | | — | | | 576 | |
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Income (loss) before income taxes | 16,863 | | | 20,538 | | | 20,002 | | | 16,862 | | | (46,202 | ) | | 28,063 | |
|
Income tax (benefit) expense | (46 | ) | | 3,556 | | | 7,644 | | | — | | | — | | | 11,154 | |
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Net income (loss) | $ | 16,909 | | | $ | 16,982 | | | $ | 12,358 | | | $ | 16,862 | | | $ | (46,202 | ) | | $ | 16,909 | |
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Foreign currency translation | 146 | | | 146 | | | — | | | 292 | | | (438 | ) | | 146 | |
|
Comprehensive income (loss) | $ | 17,055 | | | $ | 17,128 | | | $ | 12,358 | | | $ | 17,154 | | | $ | (46,640 | ) | | $ | 17,055 | |
|
EXPRESS, INC. |
CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME |
(Amounts in thousands) |
(Unaudited) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Twenty-Six Weeks Ended August 2, 2014 |
| Express, Inc. | | Subsidiary | | Guarantor | | Other | | Consolidating Adjustments | | Consolidated |
Issuers | Subsidiaries | Subsidiaries | Total |
Net sales | $ | — | | | $ | 450,095 | | | $ | 914,176 | | | $ | 17,104 | | | $ | (439,303 | ) | | $ | 942,072 | |
|
Cost of goods sold, buying and occupancy costs | — | | | 358,131 | | | 738,264 | | | 11,582 | | | (439,303 | ) | | 668,674 | |
|
Gross profit | — | | | 91,964 | | | 175,912 | | | 5,522 | | | — | | | 273,398 | |
|
Selling, general, and administrative expenses | 509 | | | 89,226 | | | 149,753 | | | 5,295 | | | — | | | 244,783 | |
|
Other operating expense (income), net | — | | | 15 | | | (999 | ) | | — | | | — | | | (984 | ) |
|
Operating (loss) income | (509 | ) | | 2,723 | | | 27,158 | | | 227 | | | — | | | 29,599 | |
|
Interest expense, net | — | | | 10,665 | | | 1,173 | | | — | | | — | | | 11,838 | |
|
(Income) loss in subsidiary | (12,258 | ) | | (15,610 | ) | | — | | | (12,258 | ) | | 40,126 | | | — | |
|
Other income, net | — | | | 4 | | | — | | | (7 | ) | | — | | | (3 | ) |
|
Income (loss) before income taxes | 11,749 | | | 7,664 | | | 25,985 | | | 12,492 | | | (40,126 | ) | | 17,764 | |
|
Income tax (benefit) expense | (201 | ) | | (4,594 | ) | | 10,544 | | | 65 | | | — | | | 5,814 | |
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Net income (loss) | $ | 11,950 | | | $ | 12,258 | | | $ | 15,441 | | | $ | 12,427 | | | $ | (40,126 | ) | | $ | 11,950 | |
|
Foreign currency translation | 484 | | | 484 | | | — | | | 968 | | | (1,452 | ) | | 484 | |
|
Comprehensive income (loss) | $ | 12,434 | | | $ | 12,742 | | | $ | 15,441 | | | $ | 13,395 | | | $ | (41,578 | ) | | $ | 12,434 | |
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| Twenty-Six Weeks Ended August 3, 2013 | | | | | | |
| Express, Inc. | | Subsidiary | | Guarantor | | Other | | Consolidating Adjustments | | Consolidated | | | | | | |
Issuers | Subsidiaries | Subsidiaries | Total | | | | | | |
Net sales | — | | | 460,007 | | | 973,497 | | | 15,408 | | | (449,475 | ) | | 999,437 | | | | | | | |
| | | | | |
Cost of goods sold, buying and occupancy costs | — | | | 328,534 | | | 787,258 | | | 9,823 | | | (449,502 | ) | | 676,113 | | | | | | | |
| | | | | |
Gross profit | — | | | 131,473 | | | 186,239 | | | 5,585 | | | 27 | | | 323,324 | | | | | | | |
| | | | | |
Selling, general, and administrative expenses | 231 | | | 79,761 | | | 146,837 | | | 4,969 | | | 1 | | | 231,799 | | | | | | | |
| | | | | |
Other operating (income) expense, net | — | | | — | | | (624 | ) | | 14 | | | 26 | | | (584 | ) | | | | | | |
| | | | | |
Operating (loss) income | (231 | ) | | 51,712 | | | 40,026 | | | 602 | | | — | | | 92,109 | | | | | | | |
| | | | | |
Interest expense (income), net | — | | | 10,547 | | | (989 | ) | | 23 | | | — | | | 9,581 | | | | | | | |
| | | | | |
(Income) loss in subsidiary | (49,487 | ) | | (24,852 | ) | | — | | | (49,487 | ) | | 123,826 | | | — | | | | | | | |
| | | | | |
Other expense, net | — | | | — | | | — | | | 805 | | | — | | | 805 | | | | | | | |
| | | | | |
Income (loss) before income taxes | 49,256 | | | 66,017 | | | 41,015 | | | 49,261 | | | (123,826 | ) | | 81,723 | | | | | | | |
| | | | | |
Income tax (benefit) expense | (90 | ) | | 16,530 | | | 15,937 | | | — | | | — | | | 32,377 | | | | | | | |
| | | | | |
Net income (loss) | 49,346 | | | 49,487 | | | 25,078 | | | 49,261 | | | (123,826 | ) | | 49,346 | | | | | | | |
| | | | | |
Foreign currency translation | 216 | | | 216 | | | — | | | 432 | | | (648 | ) | | 216 | | | | | | | |
| | | | | |
Comprehensive income (loss) | 49,562 | | | 49,703 | | | 25,078 | | | 49,693 | | | (124,474 | ) | | 49,562 | | | | | | | |
| | | | | |
EXPRESS, INC. |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
(Amounts in thousands) |
(Unaudited) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Twenty-Six Weeks Ended August 2, 2014 |
| Express, Inc. | | Subsidiary | | Guarantor | | Other | | Consolidating Adjustments | | Consolidated |
Issuers | Subsidiaries | Subsidiaries | Total |
Operating Activities | | | | | | | | | | | |
Net cash (used in) provided by operating activities | $ | (429 | ) | | $ | (43,434 | ) | | $ | 47,617 | | | $ | 1,051 | | | $ | — | | | $ | 4,805 | |
|
Investing Activities | | | | | | | | | | | |
Capital expenditures | — | | | (15,746 | ) | | (41,414 | ) | | (2,306 | ) | | — | | | (59,466 | ) |
|
Distributions received | 3,703 | | | — | | | — | | | 3,703 | | | (7,406 | ) | | — | |
|
Purchase of intangible assets | — | | | (10 | ) | | — | | | — | | | — | | | (10 | ) |
|
Net cash provided by (used in) investing activities | 3,703 | | | (15,756 | ) | | (41,414 | ) | | 1,397 | | | (7,406 | ) | | (59,476 | ) |
|
Financing Activities | | | | | | | | | | | |
Payments on lease financing obligations | — | | | (752 | ) | | — | | | — | | | — | | | (752 | ) |
|
Excess tax benefit from share-based compensation | — | | | 27 | | | 5 | | | — | | | — | | | 32 | |
|
Repurchase of common stock | (3,343 | ) | | — | | | — | | | — | | | — | | | (3,343 | ) |
|
Borrowings under intercompany loan | — | | | (5,293 | ) | | — | | | 5,293 | | | — | | | — | |
|
Distributions paid | — | | | (3,703 | ) | | — | | | (3,703 | ) | | 7,406 | | | — | |
|
Net cash (used in) provided by financing activities | (3,343 | ) | | (9,721 | ) | | 5 | | | 1,590 | | | 7,406 | | | (4,063 | ) |
|
| | | | | | | | | | | |
Effect of exchange rate on cash | — | | | — | | | — | | | 177 | | | — | | | 177 | |
|
| | | | | | | | | | | |
Net (decrease) increase in cash and cash equivalents | (69 | ) | | (68,911 | ) | | 6,208 | | | 4,215 | | | — | | | (58,557 | ) |
|
Cash and cash equivalents, beginning of period | 1,984 | | | 283,707 | | | 19,631 | | | 6,562 | | | — | | | 311,884 | |
|
Cash and cash equivalents, end of period | $ | 1,915 | | | $ | 214,796 | | | $ | 25,839 | | | $ | 10,777 | | | $ | — | | | $ | 253,327 | |
|
EXPRESS, INC. |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS |
(Amounts in thousands) |
(Unaudited) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Twenty-Six Weeks Ended August 3, 2013 |
| Express, Inc. | | Subsidiary | | Guarantor | | Other | | Consolidating Adjustments | | Consolidated |
Issuers | Subsidiaries | Subsidiaries | Total |
Operating Activities | | | | | | | | | | | |
Net cash provided by (used in) operating activities | $ | (827 | ) | | $ | 5,135 | | | $ | 30,253 | | | $ | 1,972 | | | $ | — | | | $ | 36,533 | |
|
Investing Activities | | | | | | | | | | | |
Capital expenditures | — | | | (11,496 | ) | | (30,801 | ) | | (3,241 | ) | | — | | | (45,538 | ) |
|
Distributions received | 14,682 | | | — | | | — | | | 14,682 | | | (29,364 | ) | | — | |
|
Purchase of intangible assets | — | | | (69 | ) | | — | | | — | | | — | | | (69 | ) |
|
Net cash provided by (used in) investing activities | 14,682 | | | (11,565 | ) | | (30,801 | ) | | 11,441 | | | (29,364 | ) | | (45,607 | ) |
|
Financing Activities | | | | | | | | | | | |
Payments on leased financing obligations | — | | | (29 | ) | | — | | | — | | | — | | | (29 | ) |
|
Excess tax benefit from share-based compensation | — | | | 64 | | | — | | | — | | | — | | | 64 | |
|
Proceeds from exercise of stock options | 2,828 | | | — | | | — | | | — | | | — | | | 2,828 | |
|
Repayment of intercompany loan | — | | | 3,875 | | | — | | | (3,875 | ) | | — | | | — | |
|
Borrowings under intercompany loan | — | | | (5,114 | ) | | — | | | 5,114 | | | — | | | — | |
|
Repurchase of common stock | (15,756 | ) | | — | | | — | | | — | | | — | | | (15,756 | ) |
|
Distributions paid | — | | | (14,682 | ) | | — | | | (14,682 | ) | | 29,364 | | | — | |
|
Net cash (used in) provided by financing activities | (12,928 | ) | | (15,886 | ) | | — | | | (13,443 | ) | | 29,364 | | | (12,893 | ) |
|
| | | | | | | | | | | |
Effect of exchange rate on cash | — | | | — | | | — | | | (80 | ) | | — | | | (80 | ) |
|
| | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | 927 | | | (22,316 | ) | | (548 | ) | | (110 | ) | | — | | | (22,047 | ) |
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Cash and cash equivalents, beginning of period | 938 | | | 230,174 | | | 22,924 | | | 2,261 | | | — | | | 256,297 | |
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Cash and cash equivalents, end of period | $ | 1,865 | | | $ | 207,858 | | | $ | 22,376 | | | $ | 2,151 | | | $ | — | | | $ | 234,250 | |
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