Gymboree (GYMB) 8-K Other Events

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share and store data)
(Unaudited)

	13 Weeks Ended												52 Weeks Ended
	May 1,			July 31,			October 30,			January 29,			January 29,
	2004			2004			2004			2005			2005
Net sales:
Retail	$	144,448		$	113,399		$	152,619		$	172,712		$	583,178
Play & Music and Other		2,667			2,585			2,989			3,059			11,300
Total net sales		147,115			115,984			155,608			175,771			594,478
Cost of goods sold, including buying and occupancy expenses		(84,758	)		(74,756	)		(93,944	)		(108,898	)		(362,356	)
Gross profit		62,357			41,228			61,664			66,873			232,122
Selling, general and administrative expenses		(50,603	)		(47,075	)		(54,306	)		(59,375	)		(211,359	)
Lease termination charges		—			—			—			(4,408	)		(4,408	)
Operating income (loss)		11,754			(5,847	)		7,358			3,090			16,355
Other income, net		238			145			69			133			585
Income (loss) from continuing operations before income taxes		11,992			(5,702	)		7,427			3,223			16,940
Income tax benefit (expense)		(4,377	)		2,081			122			2,313			139
Income (loss) from continuing operations, net of income tax		7,615			(3,621	)		7,549			5,536			17,079
Income (loss) from discontinued operations, net of income tax		390			(328	)		(3,377	)		(6,326	)		(9,641	)
Income (loss) before cumulative effect of change in accounting principle		8,005			(3,949	)		4,172			(790	)		7,438
Cumulative effect of change in accounting principle, net of income tax		1,227			—			—			(21	)		1,206
Net income (loss)	$	9,232		$	(3,949	)	$	4,172		$	(811	)	$	8,644
Basic per share amounts:
Income (loss) from continuing operations net of income tax	$	0.25		$	(0.12	)	$	0.25		$	0.18		$	0.56
Income (loss) from discontinued operations, net of income tax		0.01			(0.01	)		(0.11	)		(0.20	)		(0.31	)
Cumulative effect of change in accounting principle, net of income tax		0.04			—			—			(0.00	)		0.04
Net income (loss)	$	0.30		$	(0.13	)	$	0.14		$	(0.03	)	$	0.28
Diluted per share amounts:
Income (loss) from continuing operations net of income tax	$	0.24		$	(0.12	)	$	0.24		$	0.18		$	0.54
Income (loss) from discontinued operations, net of income tax		0.01			(0.01	)		(0.11	)		(0.20	)		(0.31	)
Cumulative effect of change in accounting principle, net of income tax		0.04			—			—			(0.00	)		0.04
Net income (loss)	$	0.29		$	(0.13	)	$	0.13		$	(0.03	)	$	0.28
Weighted average shares outstanding:
Basic		30,476			30,693			30,801			31,019			30,747
Diluted		31,348			30,693			31,346			31,435			31,391
Number of stores at end of period		633			646			643			648			648

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

	May 1,		July 31,		October 30,		January 29,
	2004		2004		2004		2005
Current Assets
Cash and cash equivalents	$	30,906	$	18,495	$	24,608	$	30,599
Marketable securities		79,300		58,000		40,000		30,000
Accounts receivable		9,267		15,870		20,332		20,101
Merchandise inventories		64,840		74,931		91,706		97,237
Prepaid expenses and deferred taxes		9,241		2,845		3,606		6,789
Current assets of discontinued operations		9,092		9,051		4,428		1,794
Total current assets		202,646		179,192		184,680		186,520
Property and Equipment, net		118,623		129,898		146,097		150,746
Lease Rights, Deferred Taxes and Other Assets		9,328		13,223		12,777		14,433
Total Assets	$	330,597	$	322,313	$	343,554	$	351,699
Current Liabilities
Accounts payable	$	35,998	$	32,845	$	38,245	$	39,241
Accrued liabilities		43,765		37,295		43,391		41,803
Current liabilities of discontinued operations		3,950		4,513		5,631		7,144
Total current liabilities		83,713		74,653		87,267		88,188
Long Term Liabilities
Deferred rent and other liabilities		33,710		36,380		39,943		46,105
Stockholders’ Equity		213,174		211,280		216,344		217,406
Total Liabilities and Stockholders’ Equity	$	330,597	$	322,313	$	343,554	$	351,699