UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________
FORM 10-K
____________________
(MARK ONE)
x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED JANUARY 31, 2004 |
OR
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO TO |
Commission File Number 000-21250
THE GYMBOREE CORPORATION
(Exact name of registrant as specified in its charter)
Delaware | 94-2615258 | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||
700 Airport Boulevard, Suite 200, Burlingame, California | 94010-1912 | ||
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (650)579-0600
Securities Registered Pursuant to Section 12(b) of the Act: None.
Securities Registered Pursuant to Section 12(g) of the Act:
Title of Each Class | Name of each exchange on which registered | ||
Common Stock, $0.001 Par Value | NASDAQ National Market |
DOCUMENTS INCORPORATED BY REFERENCE
THE GYMBOREE CORPORATION
TABLE OF CONTENTS
Page Number | ||||
---|---|---|---|---|
FORWARD LOOKING STATEMENTS | 3 | |||
ITEM 1. | BUSINESS | 3 | ||
ITEM 2. | PROPERTIES | 9 | ||
ITEM 3. | LEGAL PROCEEDINGS | 9 | ||
ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | 9 | ||
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS | 10 | ||
ITEM 6. | SELECTED CONSOLIDATED FINANCIAL DATA | 11 | ||
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 12 | ||
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 18 | ||
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA | 20 | ||
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES | 39 | ||
ITEM 9A. | CONTROLS AND PROCEDURES | 39 | ||
ITEM 10. | DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT | 39 | ||
ITEM 11. | EXECUTIVE COMPENSATION | 39 | ||
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT | 39 | ||
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS | 39 | ||
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES | 39 | ||
ITEM 15. | EXHIBITS, FINANCIAL STATEMENTS, AND REPORTS ON FORM 8-K | 40 | ||
Signatures | 43 | |||
Exhibit Index | 44 |
FORWARD LOOKING STATEMENTS
PART 1
ITEM 1. BUSINESS
GENERAL
3
children ages newborn to 5 years old through sight, touch, sound and movement. Gymboree Play & Music also offers art classes and birthday party services and sells certain developmentally appropriate toys and audiotapes. As of January 31, 2004, Gymboree’s Play & Music programs included 15 Company-operated play centers in California and 517 franchisee-operated play centers, of which approximately 63% are located in the United States, and the remaining 37% are located in other countries, including Australia, Brazil, Canada, China, France, Ireland, Malaysia, Mexico, Norway, Singapore, South Korea, Switzerland, Taiwan, Thailand, United Arab Emirates and the United Kingdom.
RETAIL STORES
Fiscal Year | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Prior to 1999 | 1999 | 2000 | 2001 | 2002 | 2003 | Total | |||||||
Gymboree | 564 | 22 | –6 | 0 | –7 | 14 | 587 | ||||||
Janie and Jack | 0 | 0 | 0 | 0 | 11 | 21 | 32 | ||||||
Zutopia (sold in 2001) | 0 | 19 | 0 | –19 | 0 | 0 | 0 | ||||||
Total | 564 | 41 | –6 | –19 | 4 | 35 | 619 |
DIRECT-TO-CONSUMER
SUPPLIERS
4
COMPETITION AND SEASONALITY
TRADEMARKS AND SERVICE MARKS
TEAM MEMBERS
SEGMENT AND INTERNATIONAL FINANCIAL INFORMATION
AVAILABLE INFORMATION
5
EXECUTIVE OFFICERS OF THE REGISTRANT
Name | Age | Position | ||
---|---|---|---|---|
Lisa M. Harper | 44 | Chair of the Board and Chief Executive Officer | ||
Myles B. McCormick | 32 | Chief Financial Officer, Vice President and Secretary | ||
Lisa Bayne | 51 | Senior Vice President, Brand | ||
Marina Armstrong | 41 | Vice President, Human Resources, and Assistant Secretary | ||
Matthew K. McCauley | 31 | Vice President, Planning and Allocation | ||
Deborah J. Nash | 41 | Vice President and General Merchandise Manager |
FACTORS THAT MAY AFFECT FUTURE PERFORMANCE
We may not be able to operate successfully if we lose key personnel, are unable to hire qualified additional personnel, or experience turnover of our management team.
6
retain qualified key personnel in the future. The loss of certain key employees or our inability to continue to attract and retain other qualified key employees could have a material adverse effect on our growth, our operations and our financial position.
Our business may be harmed by additional United States regulation of foreign trade or customs delays.
Because we purchase our products internationally, our business is sensitive to risks associated with international business.
We may suffer negative publicity if any of our products are found to be unsafe.
We may be subject to negative publicity or be sued if our manufacturers violate labor laws or engage in practices that our customers believe are unethical.
The loss of a key buying agent could impair our ability to deliver our inventory in a timely fashion, impacting its value.
7
Our business is sensitive to economic conditions that impact consumer spending.
Our business is sensitive to changes in seasonal consumer spending patterns that are beyond our control.
The highly competitive business in which we operate may impair our ability to maintain and grow our sales and results.
Our new concepts require a substantial commitment of resources and are not certain of ultimate success.
8
Our results may be impaired by changes in fashion trends and consumer preferences.
A significant disruption in the implementation of new systems could impair our ability to manage various aspects of our store operations and our ability to report results in a timely way.
Damage to our computer systems could severely hamper our ability to manage our business.
ITEM 2. PROPERTIES
ITEM 3. LEGAL PROCEEDINGS
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
9
PART II
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS |
Fiscal 2003 | Fiscal 2002 | ||||||
---|---|---|---|---|---|---|---|
High | Low | High | Low | ||||
First Quarter | $17.50 | $11.79 | $19.30 | $10.90 | |||
Second Quarter | 18.32 | 13.36 | 19.94 | 10.98 | |||
Third Quarter | 18.32 | 12.62 | 20.30 | 11.41 | |||
Fourth Quarter | 18.38 | 14.13 | 21.50 | 13.08 |
10
ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA
2003 | 2002 | 2001 | 2000 (1) | 1999 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(In thousands, except operating data and per share amounts) | ||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||
Net sales: | ||||||||||||||||||||
Retail | $ | 566,346 | $ | 534,049 | $ | 509,069 | $ | 448,843 | $ | 437,378 | ||||||||||
Play & Music | 11,647 | 14,940 | 13,977 | 13,140 | 11,675 | |||||||||||||||
Total net sales | 577,993 | 548,989 | 523,046 | 461,983 | 449,053 | |||||||||||||||
Cost of goods sold, including buying and occupancy expenses | (343,200 | ) | (319,093 | ) | (331,201 | ) | (329,049 | ) | (285,972 | ) | ||||||||||
Gross profit | 234,793 | 229,896 | 191,845 | 132,934 | 163,081 | |||||||||||||||
Selling, general and administrative expenses | (194,149 | ) | (194,071 | ) | (180,792 | ) | (191,141 | ) | (181,138 | ) | ||||||||||
Operating income (loss) | 40,644 | 35,825 | 11,053 | (58,207 | ) | (18,057 | ) | |||||||||||||
Foreign exchange gains (losses), net | 154 | 204 | (432 | ) | 130 | (55 | ) | |||||||||||||
Interest income (expense), net | 331 | (533 | ) | (3,174 | ) | (1,871 | ) | 877 | ||||||||||||
Income (loss) before income taxes | 41,129 | 35,496 | 7,447 | (59,948 | ) | (17,235 | ) | |||||||||||||
Income tax benefit (expense) | (15,423 | ) | (13,666 | ) | (2,867 | ) | 23,080 | 6,635 | ||||||||||||
Net income (loss) | $ | 25,706 | $ | 21,830 | $ | 4,580 | $ | (36,868 | ) | $ | (10,600 | ) | ||||||||
Basic income (loss) per share | $ | 0.87 | $ | 0.75 | $ | 0.16 | $ | (1.38 | ) | $ | (0.44 | ) | ||||||||
Diluted income (loss) per share | $ | 0.83 | $ | 0.71 | $ | 0.16 | $ | (1.38 | ) | $ | (0.44 | ) | ||||||||
Basic weighted average shares outstanding | 29,656 | 28,992 | 28,326 | 26,686 | 24,315 | |||||||||||||||
Diluted weighted average shares outstanding | 30,853 | 30,633 | 29,377 | 26,686 | 24,315 | |||||||||||||||
Operating Data: | ||||||||||||||||||||
Number of stores at end of period | 619 | 584 | 580 | 599 | 605 | |||||||||||||||
Net sales per gross square foot at period-end (2) | $ | 507 | $ | 513 | $ | 494 | $ | 425 | $ | 417 | ||||||||||
Net sales per average store | $ | 915,000 | $ | 914,000 | $ | 872,000 | $ | 749,000 | $ | 723,000 | ||||||||||
Comparable store net sales increase (decrease) (3) | 1 | % | 4 | % | 16 | % | (1 | %) | (17 | %) | ||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Working capital | $ | 111,271 | $ | 76,739 | $ | 49,268 | $ | 33,374 | $ | 57,225 | ||||||||||
Total assets | 298,711 | 255,136 | 219,629 | 244,442 | 240,918 | |||||||||||||||
Long-term debt | — | — | 8,830 | 16,443 | 10,877 | |||||||||||||||
Stockholders’ equity | 203,748 | 169,418 | 142,429 | 134,116 | 158,462 |
__________
(1) | 2000 includes 53 weeks. |
(2) | Equals retail sales divided by total square feet of store space as of each fiscal year-end. |
(3) | A comparable store is one that has been opened for a full 14 months. Stores that are relocated or expanded by more than 15% of their original square footage become comparable 14 months after final relocation or the completion of the expansion project. Comparable stores net sales in fiscal years 2003 through 1999 were calculated on a 52-week basis. |
11
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
General
12
Critical Accounting Policies and Estimates
2003 Compared to 2002
Net Sales
13
product assortment while combining the styling of our baby and kid boy departments, was not successful. In the fourth quarter of 2003, we returned to offering distinct styling between our baby and kid boy departments and began to rebalance the mix of fashion and basics in our product assortment. Non-comparable store sales increased $18.1 million primarily due to net store and square footage growth of 35 stores and 76,000 square feet, respectively. The number of retail stores open at the end of the period was 619, compared to 584 open at the end of 2002. The increase in net retail sales includes a $1.3 million increase in shipping income resulting from the increase in our on-line store business, as well as a $2.1 million increase in sales to off-price retailers. We expect comparable store sales to be flat to slightly positive in 2004, as a result of improvements made to our Gymboree boy business.
Gross Profit
Selling, General and Administrative Expenses
Foreign Exchange Gains (Losses), Net
Interest Expense
14
Interest Income
Income Tax
2002 Compared to 2001
Net Sales
Gross Profit
Selling, General and Administrative Expenses
Foreign Exchange Gains (Losses), Net
Interest Expense
15
and lower interest rates. Included in interest expense for 2002 was $432,000 in prepayment penalties and unamortized loan fees related to the early extinguishment of the Company’s debt.
Interest Income
Income Tax
Liquidity and Capital Resources
16
received $6.0 million in advance payments under these agreements. This amount is included in other long-term liabilities in the consolidated balance sheet as of January 31, 2004.
Summary Disclosures about Contractual Obligations and Commercial Commitments
Contractual Obligations
($ in thousands) | Less than 1 year | 1–3 years | 4–5 years | After 5 years | Total | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Documentary and stand-by letters of credit | $ | 35,677 | $ | — | $ | — | $ | — | $ | 35,677 | |||||
Operating leases (1): | |||||||||||||||
Minimum rental obligations | 49,453 | 87,629 | 55,905 | 81,535 | 274,522 | ||||||||||
Other lease required obligations | 22,802 | 39,150 | 25,896 | 34,207 | 122,055 | ||||||||||
Purchase obligations (2) | 12,051 | 591 | 382 | — | 13,024 | ||||||||||
Total contractual cash obligations | $ | 119,983 | $ | 127,370 | $ | 82,183 | $ | 115,742 | $ | 445,278 |
__________
(1) | Includes minimum rental obligations and other lease-required expenses such as advertising, utilities, taxes and common area maintenance. Excludes commitments related to new corporate office lease signed in March 2004. See Note 10 of the Notes to the Consolidated Financial Statements. |
(2) | Unconditional purchase obligations are defined as agreements to purchase goods or services that are enforceable and legally binding on the Company and that specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Included in the purchase obligations category above are commitments for inventory purchases, capital expenditures, information technology and professional services. Most arrangements are cancelable without a significant penalty and with short notice (usually 30 to 90 days). Amounts reflected on the consolidated balance sheet as accounts payable and accrued liabilities are excluded from the table above. |
17
Lease Guarantees
($ in thousands) | Less than 1 year | 1–3 years | 4–5 years | After 5 years | Total | |||||
---|---|---|---|---|---|---|---|---|---|---|
Lease guarantees | $1,746 | $3,412 | $3,280 | $409 | $8,847 |
Recently Issued Accounting Standards
Impact of Inflation
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
18
January 31, 2004 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
(In thousands, except weighted average rate data) | Notional Amount | Fair Value Gain/(Loss) | Weighted Average Rate | |||||||||
British pounds sterling | $ | 4,789 | $ | (370 | ) | $ | 1.81 | |||||
Canadian dollars | 4,879 | (173 | ) | 0.75 | ||||||||
Euro | 201 | 2 | 1.25 | |||||||||
Total | $ | 9,869 | $ | (541 | ) | |||||||
February 1, 2003 | ||||||||||||
(In thousands, except weighted average rate data) | Notional Amount | Fair Value Loss | Weighted Average Rate | |||||||||
British pounds sterling | $ | 17,456 | $ | (752 | ) | $ | 1.63 | |||||
Canadian dollars | 9,791 | (147 | ) | 0.65 | ||||||||
Euro | 5,641 | (113 | ) | 1.08 | ||||||||
Total | $ | 32,888 | $ | (1,012 | ) |
19
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Page | |
---|---|
Consolidated Balance Sheets | 21 |
Consolidated Statements of Income | 22 |
Consolidated Statements of Cash Flows | 23 |
Consolidated Statements of Stockholders’ Equity | 24 |
Notes to Consolidated Financial Statements | 25 |
Independent Auditors’ Report | 38 |
20
THE GYMBOREE CORPORATION
CONSOLIDATED BALANCE SHEETS
January 31, 2004 | February 1, 2003 | |||||||
---|---|---|---|---|---|---|---|---|
(In thousands, except share data) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 89,553 | $ | 60,628 | ||||
Accounts receivable, net of allowance of $185 and $66 | 11,456 | 7,506 | ||||||
Merchandise inventories | 73,017 | 62,561 | ||||||
Prepaid expenses | 4,438 | 9,181 | ||||||
Deferred taxes | 1,126 | 1,583 | ||||||
Total current assets | 179,590 | 141,459 | ||||||
Property and Equipment: | ||||||||
Land and buildings | 10,375 | 10,371 | ||||||
Leasehold improvements | 108,743 | 92,126 | ||||||
Furniture, fixtures, and equipment | 139,974 | 128,212 | ||||||
259,092 | 230,709 | |||||||
Less accumulated depreciation and amortization | (146,349 | ) | (124,245 | ) | ||||
112,743 | 106,464 | |||||||
Deferred Taxes | 4,607 | 5,285 | ||||||
Lease Rights and Other Assets | 1,771 | 1,928 | ||||||
Total Assets | $ | 298,711 | $ | 255,136 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 33,356 | $ | 27,150 | ||||
Accrued liabilities | 34,963 | 37,570 | ||||||
Total current liabilities | 68,319 | 64,720 | ||||||
Long-Term Liabilities: | ||||||||
Deferred rent and other liabilities | 26,644 | 20,998 | ||||||
Total Liabilities | 94,963 | 85,718 | ||||||
Commitments and Contingencies | — | — | ||||||
Stockholders’ Equity: | ||||||||
Common stock, including excess paid-in capital ($.001 par value: 100,000,000 shares authorized; 30,203,149 and 29,223,741 shares outstanding at January 31, 2004 and February 1, 2003, respectively) | 58,460 | 50,086 | ||||||
Retained earnings | 145,805 | 120,099 | ||||||
Accumulated other comprehensive loss | (517 | ) | (767 | ) | ||||
Total stockholders’ equity | 203,748 | 169,418 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 298,711 | $ | 255,136 |
See notes to the consolidated financial statements
21
THE GYMBOREE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Year Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
January 31, 2004 | February 1, 2003 | February 2, 2002 | |||||||||||
(In thousands, except per share data) | |||||||||||||
Net sales: | |||||||||||||
Retail | $ | 566,346 | $ | 534,049 | $ | 509,069 | |||||||
Play & Music | 11,647 | 14,940 | 13,977 | ||||||||||
Total net sales | 577,993 | 548,989 | 523,046 | ||||||||||
Cost of goods sold, including buying and occupancy expenses | (343,200 | ) | (319,093 | ) | (331,201 | ) | |||||||
Gross profit | 234,793 | 229,896 | 191,845 | ||||||||||
Selling, general and administrative expenses | (194,149 | ) | (194,071 | ) | (180,792 | ) | |||||||
Operating income | 40,644 | 35,825 | 11,053 | ||||||||||
Foreign exchange gains (losses), net | 154 | 204 | (432 | ) | |||||||||
Interest income | 743 | 712 | 301 | ||||||||||
Interest expense | (412 | ) | (1,245 | ) | (3,475 | ) | |||||||
Income before income taxes | 41,129 | 35,496 | 7,447 | ||||||||||
Income tax expense | (15,423 | ) | (13,666 | ) | (2,867 | ) | |||||||
Net income | $ | 25,706 | $ | 21,830 | $ | 4,580 | |||||||
Income per share: | |||||||||||||
Basic | $ | 0.87 | $ | 0.75 | $ | 0.16 | |||||||
Diluted | $ | 0.83 | $ | 0.71 | $ | 0.16 | |||||||
Weighted average shares outstanding: | |||||||||||||
Basic | 29,656 | 28,992 | 28,326 | ||||||||||
Diluted | 30,853 | 30,633 | 29,377 |
See notes to the consolidated financial statements
22
THE GYMBOREE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
January 31, 2004 | February 1, 2003 | February 2, 2002 | |||||||||||
(In thousands) | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||
Net income | $ | 25,706 | $ | 21,830 | $ | 4,580 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 27,151 | 26,281 | 24,106 | ||||||||||
Impairment reserve | — | — | 115 | ||||||||||
Provision for deferred income taxes | 1,135 | 12,552 | 3,716 | ||||||||||
Non-cash compensation expense | — | 303 | — | ||||||||||
Loss on disposal of property and equipment | 486 | 1,225 | 983 | ||||||||||
Tax benefit from exercise of stock options | 2,687 | 1,592 | 848 | ||||||||||
Change in assets and liabilities: | |||||||||||||
Accounts receivable | (3,911 | ) | 237 | 41 | |||||||||
Merchandise inventories | (9,822 | ) | 169 | 14,196 | |||||||||
Prepaid expenses and other assets | 5,284 | 2,149 | 154 | ||||||||||
Accounts payable | 6,097 | 6,714 | (10,891 | ) | |||||||||
Income tax payable | (4,892 | ) | 8,399 | (1,929 | ) | ||||||||
Accrued liabilities | 2,168 | 5,381 | 6,007 | ||||||||||
Deferred rent and other liabilities | 5,836 | (1,983 | ) | (2,641 | ) | ||||||||
Net cash provided by operating activities | 57,925 | 84,849 | 39,285 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||
Capital expenditures | (34,018 | ) | (25,926 | ) | (19,064 | ) | |||||||
Proceeds from sale of assets | 665 | 99 | 3,195 | ||||||||||
Net cash used in investing activities | (33,353 | ) | (25,827 | ) | (15,869 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||
Proceeds from issuance of stock | 5,687 | 3,707 | 3,161 | ||||||||||
Payments on borrowings | — | — | (16,225 | ) | |||||||||
Payments on long term debt | — | (9,515 | ) | (7,562 | ) | ||||||||
Net cash provided by (used in) financing activities | 5,687 | (5,808 | ) | (20,626 | ) | ||||||||
Net Increase in Cash and Cash Equivalents | 30,259 | 53,214 | 2,790 | ||||||||||
Effect of exchange rate fluctuations on cash | (1,334 | ) | (1,015 | ) | 333 | ||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||
Beginning of Year | 60,628 | 8,429 | 5,306 | ||||||||||
End of Year | $ | 89,553 | $ | 60,628 | $ | 8,429 | |||||||
OTHER CASH FLOW INFORMATION: | |||||||||||||
Cash paid during the year for income taxes | $ | 9,926 | $ | 6,584 | $ | 461 | |||||||
Refunds received during the year for income taxes | $ | (8 | ) | $ | (16,528 | ) | $ | (2,666 | ) | ||||
Cash paid during the year for interest | $ | 182 | $ | 1,077 | $ | 3,441 |
See notes to the consolidated financial statements
23
THE GYMBOREE CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Total | Total Comprehensive Income/(Loss) | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares | Amount | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Balance at February 3, 2001 | 28,040,283 | $28 | $40,447 | $ | 93,689 | $ | (48 | ) | $ | 134,116 | |||||||||||||||
Issuance of common stock under stock option and purchase plans | 346,286 | — | 2,254 | 2,254 | |||||||||||||||||||||
Issuance of common stock under exercise of stock warrants | 305,177 | 1 | 906 | 907 | |||||||||||||||||||||
Tax benefit from exercise of stock options | 848 | 848 | |||||||||||||||||||||||
Net adjustments for foreign currency translation and unrealized net loss on cash flow hedges, net of tax | (276 | ) | (276 | ) | $ | (276 | ) | ||||||||||||||||||
Net income | 4,580 | 4,580 | 4,580 | ||||||||||||||||||||||
Comprehensive income | $ | 4,304 | |||||||||||||||||||||||
Balance at February 2, 2002 | 28,691,746 | $29 | $44,455 | $ | 98,269 | $ | (324 | ) | $ | 142,429 | |||||||||||||||
Issuance of common stock under stock option and purchase plans | 499,166 | — | 3,609 | 3,609 | |||||||||||||||||||||
Stock based compensation under purchase plan | 303 | 303 | |||||||||||||||||||||||
Issuance of common stock under exercise of stock warrants | 32,829 | — | 98 | 98 | |||||||||||||||||||||
Tax benefit from exercise of stock options | 1,592 | 1,592 | |||||||||||||||||||||||
Net adjustments for foreign currency translation and unrealized net loss on cash flow hedges, net of tax | (443 | ) | (443 | ) | $ | (443 | ) | ||||||||||||||||||
Net income | 21,830 | 21,830 | 21,830 | ||||||||||||||||||||||
Comprehensive income | $ | 21,387 | |||||||||||||||||||||||
Balance at February 1, 2003 | 29,223,741 | $29 | $50,057 | $ | 120,099 | $ | (767 | ) | $ | 169,418 | |||||||||||||||
Issuance of common stock under stock option and purchase plans | 850,665 | 1 | 5,461 | 5,462 | |||||||||||||||||||||
Issuance of common stock under exercise of stock warrants | 128,743 | — | 225 | 225 | |||||||||||||||||||||
Tax benefit from exercise of stock options | 2,687 | 2,687 | |||||||||||||||||||||||
Net adjustments for foreign currency translation and unrealized net loss on cash flow hedges, net of tax | 250 | 250 | $ | 250 | |||||||||||||||||||||
Net income | 25,706 | 25,706 | 25,706 | ||||||||||||||||||||||
Comprehensive income | $ | 25,956 | |||||||||||||||||||||||
Balance at January 31, 2004 | 30,203,149 | $30 | $58,430 | $ | 145,805 | $ | (517 | ) | $ | 203,748 |
See notes to the consolidated financial statements
24
THE GYMBOREE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
Nature of the Business
Fiscal Year
Basis of Presentation
Use of Estimates
Cash and Cash Equivalents
Accounts Receivable
Concentrations
25
THE GYMBOREE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Summary of Significant Accounting Policies (Continued)
Estimated Fair Value of Financial Instruments
Merchandise Inventories
Property and Equipment
Asset Impairment
Capitalized Interest
Income Taxes
Lease Rights
26
THE GYMBOREE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Summary of Significant Accounting Policies (Continued)
Deferred Rent
Construction Allowance
Workers’ Compensation Liabilities
Foreign Currency Translation
Store Pre-opening Costs
Revenue Recognition
27
THE GYMBOREE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Summary of Significant Accounting Policies (Continued)
Stock-Based Compensation
Year Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
January 31, 2004 | February 1, 2003 | February 2, 2002 | ||||||||||
(In thousands, except per share data) | ||||||||||||
Net income, as reported | $ | 25,706 | $ | 21,830 | $ | 4,580 | ||||||
Add: Stock-based employee compensation expense included in reported net income, net of related tax effects | — | 186 | — | |||||||||
Deduct: Total stock-based employee compensation expense determined under fair value based method, for awards granted or settled, net of related tax effects | (3,661 | ) | (2,889 | ) | (2,543 | ) | ||||||
Pro forma net income | $ | 22,045 | $ | 19,127 | $ | 2,037 | ||||||
Basic income per share | ||||||||||||
As reported | $ | 0.87 | $ | 0.75 | $ | 0.16 | ||||||
Pro forma | 0.74 | 0.66 | 0.07 | |||||||||
Diluted income per share | ||||||||||||
As reported | $ | 0.83 | $ | 0.71 | $ | 0.16 | ||||||
Pro forma | 0.71 | 0.62 | 0.07 |
Comprehensive Income
Income Per Share
Fiscal Year Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
January 31, 2004 | February 1, 2003 | February 2, 2002 | ||||||||||
(In thousands) | ||||||||||||
Shares used to compute basic EPS | 29,656 | 28,992 | 28,326 | |||||||||
Add: effect of dilutive securities | 1,197 | 1,641 | 1,051 | |||||||||
Shares used to compute diluted EPS | 30,853 | 30,633 | 29,377 |
28
THE GYMBOREE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Summary of Significant Accounting Policies (Continued)
Reclassifications
Recently Issued Accounting Standards
Foreign Exchange Exposure Management
29
THE GYMBOREE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Summary of Significant Accounting Policies (Continued)
Accumulated net gains on cash flow hedges at February 3, 2001 | $ | 93 | |
Unrealized net losses on cash flow hedges | (99 | ) | |
Recognition of net losses on cash flow hedges to COGS | 75 | ||
Accumulated net gains on cash flow hedges at February 2, 2002 | 69 | ||
Unrealized net losses on cash flow hedges | (1,662 | ) | |
Recognition of net losses on cash flow hedges to COGS | 583 | ||
Accumulated net losses on cash flow hedges at February 1, 2003 | (1,010 | ) | |
Unrealized net losses on cash flow hedges | (1,669 | ) | |
Recognition of net losses on cash flow hedges to COGS | 1,817 | ||
Accumulated net losses on cash flow hedges at January 31, 2004 | $ | (862 | ) |
2. Commitments and Contingencies
(In thousands) | ||||
---|---|---|---|---|
2004 | $ | 49,453 | ||
2005 | 46,586 | |||
2006 | 41,043 | |||
2007 | 31,099 | |||
2008 | 24,807 | |||
Later years | 81,535 | |||
Total | $ | 274,523 |
30
THE GYMBOREE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
2. Commitments and Contingencies (Continued)
($ in thousands) | Less than 1 year | 1–3 years | 4–5 years | After 5 years | Total | |||||
---|---|---|---|---|---|---|---|---|---|---|
Lease guarantees | $1,746 | $3,412 | $3,280 | $409 | $8,847 |
3. Borrowing Arrangements
4. Accrued Liabilities
January 31, 2004 | February 1, 2003 | |||||||
---|---|---|---|---|---|---|---|---|
(In thousands) | ||||||||
Store operating expenses and other | $ | 14,201 | $ | 9,796 | ||||
Income tax payable | 7,839 | 12,745 | ||||||
Employee compensation | 6,439 | 9,760 | ||||||
Store credits and gift certificates | 4,902 | 3,955 | ||||||
Sales taxes | 1,582 | 1,314 | ||||||
Total | $ | 34,963 | $ | 37,570 |
5. Income Taxes
2003 | 2002 | 2001 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
(In thousands) | |||||||||||
Current: | |||||||||||
Federal | $ | 13,780 | $ | (3,473 | ) | $ | (518 | ) | |||
State taxes | 461 | 4,526 | (585 | ) | |||||||
Foreign | 47 | 61 | 255 | ||||||||
Total current | 14,288 | 1,114 | (848 | ) | |||||||
Deferred: | |||||||||||
Federal | (188 | ) | 14,748 | 2,611 | |||||||
State | 1,323 | (2,196 | ) | 1,104 | |||||||
Total deferred | 1,135 | 12,552 | 3,715 | ||||||||
Total provision | $ | 15,423 | $ | 13,666 | $ | 2,867 |
31
THE GYMBOREE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. Income Taxes (Continued)
2003 | 2002 | 2001 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Statutory federal rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||
State income taxes, net of income tax benefit | 2.8 | 4.3 | 4.5 | ||||||||
Other | (0.3 | ) | (0.8 | ) | (1.0 | ) | |||||
Effective tax rate | 37.5 | % | 38.5 | % | 38.5 | % |
January 31, 2004 | February 1, 2003 | ||||||
---|---|---|---|---|---|---|---|
(In thousands) | |||||||
Deferred tax assets: | |||||||
Uniform capitalization costs | $ | 1,260 | $ | 1,121 | |||
Deferred revenue | 2,340 | — | |||||
Accrued reserves | 946 | 765 | |||||
Deferred rent | 2,725 | 3,302 | |||||
Net operating loss carryovers | 3,751 | 5,567 | |||||
Fixed asset basis differences | — | 55 | |||||
Cash flow hedges | 323 | 415 | |||||
Other | 922 | 314 | |||||
12,267 | 11,539 | ||||||
Deferred tax liability: | |||||||
Prepaid expenses | (990 | ) | (900 | ) | |||
State taxes | (176 | ) | (771 | ) | |||
Fixed asset basis differences | (2,368 | ) | — | ||||
(3,534 | ) | (1,671 | ) | ||||
Total | $ | 8,733 | $ | 9,868 | |||
Valuation allowance | (3,000 | ) | (3,000 | ) | |||
Net deferred tax assets | $ | 5,733 | $ | 6,868 |
6. Stockholders’ Equity
Private Placement
32
THE GYMBOREE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. Stockholders’ Equity (Continued)
over three years. As of January 31, 2004 and February 1, 2003, warrants to purchase zero and 141,797 of these shares were outstanding, respectively. Shares issued to related parties under this offering were 2,222,222, with warrants to purchase 333,334 shares.
Stock Plans
Stock Option Plans
Shares Outstanding | Weighted Average Exercise Price | ||||||||
---|---|---|---|---|---|---|---|---|---|
(Shares in thousands) | |||||||||
Balance, February 3, 2001 | 3,860 | $ | 8.83 | ||||||
Options granted | 1,185 | 7.72 | |||||||
Options exercised | (248 | ) | 5.51 | ||||||
Options canceled | (705 | ) | 8.21 | ||||||
Balance, February 2, 2002 | 4,092 | 8.85 | |||||||
Options granted | 1,492 | 17.09 | |||||||
Options exercised | (432 | ) | 6.89 | ||||||
Options canceled | (426 | ) | 11.38 | ||||||
Balance, February 1, 2003 | 4,726 | 11.40 | |||||||
Options granted | 1,432 | 15.88 | |||||||
Options exercised | (797 | ) | 5.95 | ||||||
Options canceled | (453 | ) | 16.25 | ||||||
Balance, January 31, 2004 | 4,908 | $ | 13.15 |
33
THE GYMBOREE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. Stockholders’ Equity (Continued)
Options Outstanding | Options Exercisable | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Range of Exercisable Prices | Number of Shares | Weighted Average Remaining Life (in years) | Weighted Average Exercise Price | Number Exercisable at January 31, 2004 | Weighted Average Exercise Price | ||||||||||||||||||
$ 2.63 | to | $ | 3.75 | 510,115 | 6.1 | $ | 3.69 | 494,048 | $ | 3.70 | |||||||||||||
3.97 | to | 8.25 | 1,084,790 | 7.0 | 6.40 | 723,686 | 6.47 | ||||||||||||||||
8.38 | to | 16.99 | 2,113,038 | 8.9 | 14.98 | 471,137 | 13.38 | ||||||||||||||||
17.00 | to | 27.50 | 1,184,889 | 6.6 | 19.90 | 551,667 | 21.64 | ||||||||||||||||
28.63 | to | 36.63 | 15,545 | 1.3 | 31.32 | 15,545 | 31.32 | ||||||||||||||||
$ 2.63 | to | $ | 36.63 | 4,908,377 | 7.6 | $ | 13.15 | 2,256,083 | $ | 11.19 |
1993 Employee Stock Purchase Plan
Additional Stock Plan Information
Year Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
January 31, 2004 | February 1, 2003 | February 2, 2002 | ||||||||||
(In thousands) | ||||||||||||
Expected dividend rate | 0.0 | % | 0.0 | % | 0.0 | % | ||||||
Expected volatility | 46.0 | % | 59.0 | % | 96.7 | % | ||||||
Risk-free interest rate | 2.6 | % | 3.0 | % | 4.0 | % | ||||||
Expected lives (yrs.) | 4.0 | 4.3 | 4.0 |
Stockholder Rights Plan
34
THE GYMBOREE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. Stockholders’ Equity (Continued)
7. 401(k) Plan
8. Segments
Year ended January 31, 2004 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Retail Stores | Play & Music | Total | |||||||||||
Net sales | $ | 566,346 | $ | 11,647 | $ | 577,993 | |||||||
Depreciation and amortization | (26,646 | ) | (505 | ) | (27,151 | ) | |||||||
Operating income | 39,323 | 1,321 | 40,644 | ||||||||||
Total assets | 293,455 | 5,256 | 298,711 | ||||||||||
Capital expenditures | $ | 33,835 | $ | 183 | $ | 34,018 |
Year ended February 1, 2003 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Retail Stores | Play & Music | Total | ||||||||||
Net sales | $ | 534,049 | $ | 14,940 | $ | 548,989 | ||||||
Depreciation and amortization | (25,675 | ) | (606 | ) | (26,281 | ) | ||||||
Operating income | 33,428 | 2,397 | 35,825 | |||||||||
Total assets | 247,126 | 8,010 | 255,136 | |||||||||
Capital expenditures | $ | 25,823 | $ | 103 | $ | 25,926 |
Year ended February 2, 2002 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Retail Stores | Play & Music | Total | |||||||||||
Net sales | $ | 509,069 | $ | 13,977 | $ | 523,046 | |||||||
Depreciation and amortization | (23,605 | ) | (501 | ) | (24,106 | ) | |||||||
Operating income | 8,288 | 2,765 | 11,053 | ||||||||||
Total assets | 210,183 | 9,446 | 219,629 | ||||||||||
Capital expenditures | $ | 18,594 | $ | 470 | $ | 19,064 |
35
THE GYMBOREE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. Segments (Continued)
9. Quarterly Financial Information (Unaudited)
2003 Quarter Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 3, 2003 | August 2, 2003 | November 1, 2003 | January 31, 2004 | 2003 Total | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net sales | ||||||||||||||||
Retail | $ | 136,082 | $ | 110,356 | $ | 148,148 | $ | 171,760 | $ | 566,346 | ||||||
Play & Music | 3,373 | 2,734 | 2,894 | 2,646 | 11,647 | |||||||||||
Total net sales | 139,455 | 113,090 | 151,042 | 174,406 | 577,993 | |||||||||||
Gross profit | 58,821 | 41,235 | 62,334 | 72,403 | 234,793 | |||||||||||
Operating income (loss) | 11,895 | (2,271 | ) | 13,342 | 17,678 | 40,644 | ||||||||||
Net income (loss) | $ | 7,261 | $ | (1,059 | ) | $ | 8,315 | $ | 11,189 | $ | 25,706 | |||||
Basic income (loss) per share | $ | 0.25 | $ | (0.04 | ) | $ | 0.28 | $ | 0.37 | $ | 0.87 | |||||
Diluted income (loss) per share | $ | 0.24 | $ | (0.04 | ) | $ | 0.27 | $ | 0.36 | $ | 0.83 |
2002 Quarter Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 4, 2002 | August 3, 2002 | November 2, 2002 | February 1, 2003 | 2002 Total | ||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net sales | ||||||||||||||||
Retail | $ | 129,612 | $ | 105,079 | $ | 144,539 | $ | 154,819 | $ | 534,049 | ||||||
Play & Music | 3,989 | 3,169 | 3,339 | 4,443 | 14,940 | |||||||||||
Total net sales | 133,601 | 108,248 | 147,878 | 159,262 | 548,989 | |||||||||||
Gross profit | 57,154 | 41,280 | 60,853 | 70,609 | 229,896 | |||||||||||
Operating income (loss) | 9,761 | (1,949 | ) | 10,863 | 17,150 | 35,825 | ||||||||||
Net income (loss) | 6,090 | (1,205 | ) | 6,298 | 10,647 | 21,830 | ||||||||||
Basic income (loss) per share | $ | 0.21 | $ | (0.04 | ) | $ | 0.22 | $ | 0.36 | $ | 0.75 | |||||
Diluted income (loss) per share | $ | 0.20 | $ | (0.04 | ) | $ | 0.21 | $ | 0.35 | $ | 0.71 |
36
THE GYMBOREE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
10. Subsequent Events
37
INDEPENDENT AUDITORS’ REPORT
The Board of Directors and Stockholders of
The Gymboree Corporation:
/s/ Deloitte & Touche LLP
San Francisco, California
April 14, 2004
38
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES |
ITEM 9A. CONTROLS AND PROCEDURES
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
ITEM 11. EXECUTIVE COMPENSATION
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
39
PART IV
ITEM 15. EXHIBITS, FINANCIAL STATEMENTS, AND REPORTS ON FORM 8-K
(A)(1) FINANCIAL STATEMENTS
Consolidated Statements of Income
Consolidated Statements of Cash Flows
Consolidated Statements of Stockholders’ Equity
Notes to Consolidated Financial Statements
Independent Auditors’ Report
(A)(2) FINANCIAL STATEMENT SCHEDULES
(A)(3) EXHIBITS
Exhibit Number | Description | |||
---|---|---|---|---|
3.1 | Restated Certificate of Incorporation of Registrant. (1) | |||
3.2 | Amended and Restated Bylaws of Registrant. (6) | |||
4.1 | Article III of Restated Certificate of Incorporation of Registrant (See Exhibit 3.1). (1) | |||
4.2 | Form of Certificate for Common Stock. (1) | |||
4.3 | Certificate of Designation of Rights, Preferences and Privileges of Series A Participating Stock of Registrant. (2) | |||
4.4 | Preferred Stock Rights Agreement, dated as of March 17, 1997, between Registrant and The First National Bank of Boston, including the Certificate of Designation, the form of Rights Certificate and the Summary of Rights attached thereto as Exhibits A, B and C, respectively. (2) | |||
10.6 | Amended Lease Agreement for 700 Airport Blvd., Suite 200, Burlingame, California. (3) | |||
10.8 | California Uniform Franchise Offering Circular, including form of Franchise Agreement. (1) | |||
10.12 | Lease Agreement for 770 Airport Blvd., Burlingame, CA. (4) | |||
10.13 * | Deferred Compensation Agreement. (4) | |||
10.14 | Lease Agreement for Bays 140-141, Shannon Free Zone, Shannon, Ireland, dated May 6, 1997. (5) | |||
10.31 * | Amended and Restated 1993 Stock Option Plan, with form of Stock Option Agreement, amended and restated as of November 11, 1998. (7) | |||
10.43 | Lease Agreement for 770 Airport Blvd., Burlingame, CA. (7) | |||
10.50 * | 2002 Stock Incentive Plan. (8) | |||
10.51 * | 1993 Amended and Restated Employee Stock Purchase Plan. (8) | |||
10.52 * | Management Severance Plan (9) | |||
10.53 * | Management Severance Plan (Lump Sum Payment) (9) | |||
10.54 * | Management Change of Control Plan (9) |
40
Exhibit Number | Description | |||
---|---|---|---|---|
10.55 | Credit Agreement with Bank of America dated August 11, 2003 (10) | |||
10.56* | Employment Agreement with Stuart Moldaw dated January 6, 2003. (11) | |||
21.1 | Subsidiaries of the Registrant. | |||
23.1 | Independent Auditors’ Consent. | |||
31.1 | Certification of Lisa M. Harper Pursuant to §302 of the Sarbanes-Oxley Act of 2002. | |||
31.2 | Certification of Myles B. McCormick Pursuant to §302 of the Sarbanes-Oxley Act of 2002. | |||
32.1 | Certification of Lisa M. Harper Pursuant to 18 U.S.C.§1350, as Adopted Pursuant to §906 of the Sarbanes-Oxley of 2002. | |||
32.2 | Certification of Myles B. McCormick Pursuant to 18 U.S.C.§1350, as Adopted Pursuant to §906 of the Sarbanes-Oxley of 2002. |
41
REPORTS ON FORM 8-K
(1) | Incorporated by reference to the Registrant’s Registration Statement on Form S-1 filed with the Commission on February 18, 1993 (File No. 33-58322), as amended. |
(2) | Incorporated by reference to Exhibits 3 and 5, respectively, to the Registrant’s Registration Statement on Form 8-A filed with the Commission on March 20, 1997 (file no. 000-21250). |
(3) | Incorporated by reference to the Registrant’s 1994 Annual Report on Form 10-K filed with the Commission on April 24, 1995. |
(4) | Incorporated by reference to the Registrant’s 1996 Annual Report on Form 10-K filed with the Commission on May 5, 1997. |
(5) | Incorporated by reference to the Registrant’s 1997 Annual Report on Form 10-K filed with the Commission on April 20, 1998. |
(6) | Incorporated by reference to the corresponding exhibits to the Registrant’s August 4, 2001 Quarterly Report on Form 10-Q filed with the Commission on September 18, 2001. |
(7) | Incorporated by reference to the corresponding exhibits to the Registrant’s 2000 Annual Report on Form 10-K filed with the Commission on May 4, 2001. |
(8) | Incorporated by reference to the corresponding exhibits to the Registrant’s August 3, 2002 Quarterly Report on Form 10-Q filed with the Commission on September 1, 2002. |
(9) | Incorporated by reference to the corresponding exhibits to the Registrant’s May 3, 2003 Quarterly Report on Form 10-Q filed with the Commission on June 16, 2003. |
(10) | Incorporated by reference to the corresponding exhibits to the Registrant’s August 2, 2003 Quarterly Report on Form 10-Q filed with the Commission on September 11, 2003. |
(11) | Attached hereto |
* | Indicates management contracts or compensatory plans or arrangements required to be filed as exhibits to this report on Form 10-K. |
42
THE GYMBOREE CORPORATION
SIGNATURES
THE GYMBOREE CORPORATION | |||
April 14, 2004 | By: | /s/ Lisa M. Harper Lisa M. Harper Chief Executive Officer and Chairman of the Board |
Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
NAME | TITLE | DATE | ||||||
---|---|---|---|---|---|---|---|---|
/s/ Lisa M. Harper Lisa M. Harper | Chief Executive Officer and Chairman of the Board | April 14, 2004 | ||||||
/s/ Stuart G. Moldaw Stuart G. Moldaw | Chairman Emeritus of the Board of Directors | April 14, 2004 | ||||||
/s/ Myles B. McCormick Myles B. McCormick | Chief Financial Officer (Principal Financial and Accounting Officer) | April 14, 2004 | ||||||
/s/ Gary Heil Gary Heil | Director | April 14, 2004 | ||||||
/s/ Barbara L. Rambo Barbara L. Rambo | Director | April 14, 2004 | ||||||
/s/ John C. Pound John C. Pound | Director | April 14, 2004 | ||||||
/s/ William U. Westerfield William U. Westerfield | Director | April 14, 2004 | ||||||
/s/ Blair Lambert Blair Lambert | Director | April 14, 2004 |
43
THE GYMBOREE CORPORATION
EXHIBIT INDEX
Exhibit Number | Description | |||
---|---|---|---|---|
3.1 | Restated Certificate of Incorporation of Registrant. (1) | |||
3.2 | Amended and Restated Bylaws of Registrant. (6) | |||
4.1 | Article III of Restated Certificate of Incorporation of Registrant (See Exhibit 3.1). (1) | |||
4.2 | Form of Certificate for Common Stock. (1) | |||
4.3 | Certificate of Designation of Rights, Preferences and Privileges of Series A Participating Stock of Registrant. (2) | |||
4.4 | Preferred Stock Rights Agreement, dated as of March 17, 1997, between Registrant and The First National Bank of Boston, including the Certificate of Designation, the form of Rights Certificate and the Summary of Rights attached thereto as Exhibits A, B and C, respectively. (2) | |||
10.6 | Amended Lease Agreement for 700 Airport Blvd., Suite 200, Burlingame, California. (3) | |||
10.8 | California Uniform Franchise Offering Circular, including form of Franchise Agreement. (1) | |||
10.12 | Lease Agreement for 770 Airport Blvd., Burlingame, CA. (4) | |||
10.13 * | Deferred Compensation Agreement. (4) | |||
10.14 | Lease Agreement for Bays 140-141, Shannon Free Zone, Shannon, Ireland, dated May 6, 1997. (5) | |||
10.31 * | Amended and Restated 1993 Stock Option Plan, with form of Stock Option Agreement, amended and restated as of November 11, 1998. (7) | |||
10.43 | Lease Agreement for 770 Airport Blvd., Burlingame, CA. (7) | |||
10.50 * | 2002 Stock Incentive Plan. (8) | |||
10.51 * | 1993 Amended and Restated Employee Stock Purchase Plan. (8) | |||
10.52 * | Management Severance Plan (9) | |||
10.53 * | Management Severance Plan (Lump Sum Payment) (9) | |||
10.54 * | Management Change of Control Plan (9) | |||
10.55 | Credit Agreement with Bank of America dated August 11, 2003 (10) | |||
10.56* | Employment Agreement with Stuart Moldaw dated January 6, 2003. (11) | |||
21.1 | Subsidiaries of the Registrant. | |||
23.1 | Independent Auditors’ Consent. | |||
31.1 | Certification of Lisa M. Harper Pursuant to §302 of the Sarbanes-Oxley Act of 2002. | |||
31.2 | Certification of Myles B. McCormick Pursuant to §302 of the Sarbanes-Oxley Act of 2002. | |||
32.1 | Certification of Lisa M. Harper Pursuant to 18 U.S.C.§1350, as Adopted Pursuant to §906 of the Sarbanes-Oxley of 2002. | |||
32.2 | Certification of Myles B. McCormick Pursuant to 18 U.S.C.§1350, as Adopted Pursuant to §906 of the Sarbanes-Oxley of 2002. |
(1) | Incorporated by reference to the Registrant’s Registration Statement on Form S-1 filed with the Commission on February 18, 1993 (File No. 33-58322), as amended. |
44
(2) | Incorporated by reference to Exhibits 3 and 5, respectively, to the Registrant’s Registration Statement on Form 8-A filed with the Commission on March 20, 1997 (file no. 000-21250). |
(3) | Incorporated by reference to the Registrant’s 1994 Annual Report on Form 10-K filed with the Commission on April 24, 1995. |
(4) | Incorporated by reference to the Registrant’s 1996 Annual Report on Form 10-K filed with the Commission on May 5, 1997. |
(5) | Incorporated by reference to the Registrant’s 1997 Annual Report on Form 10-K filed with the Commission on April 20, 1998. |
(6) | Incorporated by reference to the corresponding exhibits to the Registrant’s August 4, 2001 Quarterly Report on Form 10-Q filed with the Commission on September 18, 2001. |
(7) | Incorporated by reference to the corresponding exhibits to the Registrant’s 2000 Annual Report on Form 10-K filed with the Commission on May 4, 2001. |
(8) | Incorporated by reference to the corresponding exhibits to the Registrant’s August 3, 2002 Quarterly Report on Form 10-Q filed with the Commission on September 1, 2002. |
(9) | Incorporated by reference to the corresponding exhibits to the Registrant’s May 3, 2003 Quarterly Report on Form 10-Q filed with the Commission on June 16, 2003. |
(10) | Incorporated by reference to the corresponding exhibits to the Registrant’s August 2, 2003 Quarterly Report on Form 10-Q filed with the Commission on September 11, 2003. |
(11) | Attached hereto |
* | Indicates management contracts or compensatory plans or arrangements required to be filed as exhibits to this report on Form 10-K. |
45