Exhibit 99.1
GORDMANS STORES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
July 30, 2016 (Unaudited) | January 30, 2016 | August 1, 2015 (Unaudited) | ||||||||||
ASSETS | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 9,426 | $ | 6,969 | $ | 9,946 | ||||||
Accounts receivable | 4,368 | 3,896 | 3,608 | |||||||||
Landlord receivable | 5,751 | 3,805 | 2,561 | |||||||||
Income taxes receivable | 1,344 | 2,746 | 11,001 | |||||||||
Merchandise inventories | 110,472 | 106,566 | 118,889 | |||||||||
Deferred income taxes | 4,965 | 5,077 | 2,896 | |||||||||
Prepaid expenses and other current assets | 9,470 | 8,096 | 9,985 | |||||||||
|
|
|
|
|
| |||||||
Total current assets | 145,796 | 137,155 | 158,886 | |||||||||
PROPERTY AND EQUIPMENT, net | 92,421 | 86,375 | 86,955 | |||||||||
INTANGIBLE ASSETS, net | 1,820 | 1,820 | 1,820 | |||||||||
OTHER ASSETS, net | 3,711 | 3,822 | 3,563 | |||||||||
|
|
|
|
|
| |||||||
TOTAL ASSETS | $ | 243,748 | $ | 229,172 | $ | 251,224 | ||||||
|
|
|
|
|
| |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Accounts payable | $ | 73,387 | $ | 66,393 | $ | 79,436 | ||||||
Accrued expenses | 29,990 | 30,151 | 27,235 | |||||||||
Current portion of long-term debt, net | 36,921 | 18,390 | 31,711 | |||||||||
|
|
|
|
|
| |||||||
Total current liabilities | 140,298 | 114,934 | 138,382 | |||||||||
|
|
|
|
|
| |||||||
NONCURRENT LIABILITIES: | ||||||||||||
Long-term debt, less current portion, net | 26,484 | 27,345 | 28,145 | |||||||||
Deferred rent | 36,582 | 33,522 | 31,640 | |||||||||
Deferred income taxes | 12,720 | 18,130 | 16,318 | |||||||||
Other liabilities | 318 | 347 | 237 | |||||||||
|
|
|
|
|
| |||||||
Total noncurrent liabilities | 76,104 | 79,344 | 76,340 | |||||||||
|
|
|
|
|
| |||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
STOCKHOLDERS’ EQUITY: | ||||||||||||
Preferred stock | — | — | — | |||||||||
Common stock | 20 | �� | 20 | 20 | ||||||||
Additional paid-in capital | 54,711 | 54,601 | 54,542 | |||||||||
Accumulated deficit | (27,385 | ) | (19,727 | ) | (18,060 | ) | ||||||
|
|
|
|
|
| |||||||
Total stockholders’ equity | 27,346 | 34,894 | 36,502 | |||||||||
|
|
|
|
|
| |||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 243,748 | $ | 229,172 | $ | 251,224 | ||||||
|
|
|
|
|
|
GORDMANS STORES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
26 Weeks Ended July 30, 2016 (Unaudited) | 26 Weeks Ended August 1, 2015 (Unaudited) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (7,702 | ) | $ | (2,657 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization expense | 8,807 | 8,083 | ||||||
Write-off of deferred financing fees related to extinguishment of debt | — | 1,722 | ||||||
Deferred tax valuation allowance | 545 | — | ||||||
Share-based compensation expense, net of forfeitures | 302 | 640 | ||||||
Amortization of deferred financing fees | 132 | 355 | ||||||
Loss on retirement / sale of property and equipment | 101 | 23 | ||||||
Deferred tax asset shortfall related to share-based compensation expense | (192 | ) | — | |||||
Deferred income taxes | (5,843 | ) | 681 | |||||
Net changes in operating assets and liabilities: | ||||||||
Accounts, landlord and income taxes receivable | (1,016 | ) | (3,156 | ) | ||||
Merchandise inventories | (3,906 | ) | (24,419 | ) | ||||
Prepaid expenses and other current assets | (1,373 | ) | (1,450 | ) | ||||
Other assets | 111 | 80 | ||||||
Accounts payable | 6,994 | 15,087 | ||||||
Deferred rent | 3,060 | (3,741 | ) | |||||
Accrued expenses and other liabilities | (1,002 | ) | (2,109 | ) | ||||
|
|
|
| |||||
Net cash used in operating activities | (982 | ) | (10,861 | ) | ||||
|
|
|
| |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchase of property and equipment | (17,895 | ) | (8,038 | ) | ||||
Proceeds from sale-leaseback transactions | 3,752 | 2,412 | ||||||
Cash received on sale of property and equipment | 44 | — | ||||||
Proceeds from insurance settlement | — | 21 | ||||||
|
|
|
| |||||
Net cash used in investing activities | (14,099 | ) | (5,605 | ) | ||||
|
|
|
| |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Borrowings on revolving line of credit | 116,500 | 111,850 | ||||||
Repayments on revolving line of credit | (98,038 | ) | (92,502 | ) | ||||
Proceeds from secured term loan | — | 30,000 | ||||||
Payment of long-term debt | (924 | ) | (29,518 | ) | ||||
Payment of debt issuance costs | — | (783 | ) | |||||
Payment penalty on early extinguishment of debt | — | (292 | ) | |||||
Dividends paid | — | (8 | ) | |||||
Proceeds from the exercise of stock options | — | 31 | ||||||
|
|
|
| |||||
Net cash provided by financing activities | 17,538 | 18,778 | ||||||
|
|
|
| |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,457 | 2,312 | ||||||
CASH AND CASH EQUIVALENTS, Beginning of period | 6,969 | 7,634 | ||||||
|
|
|
| |||||
CASH AND CASH EQUIVALENTS, End of period | $ | 9,426 | $ | 9,946 | ||||
|
|
|
|