UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 2, 2015
NEW YORK & COMPANY, INC.
(Exact name of registrant as specified in its charter)
DELAWARE (State or other jurisdiction of incorporation) |
|
1-32315 (Commission File Number) |
|
33-1031445 (IRS Employer Identification No.) |
330 West 34th Street
9th Floor
New York, New York 10001
(Address of principal executive offices, including Zip Code)
(212) 884-2000
(Registrants telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On December 2, 2015, New York & Company, Inc. issued a press release announcing, among other things, its financial results for the third quarter ended October 31, 2015. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibit
Exhibit No. |
|
Description |
99.1 |
|
Press release issued on December 2, 2015 |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
NEW YORK & COMPANY, INC. |
|
|
|
|
/s/ Sheamus Toal |
Date: December 2, 2015 |
Name: |
Sheamus Toal |
|
Title: |
Executive Vice President and |
|
|
Chief Financial Officer |
3
EXHIBIT INDEX
Exhibit No. |
|
Description |
99.1 |
|
Press release issued December 2, 2015 |
4
Exhibit 99.1
FINAL: FOR RELEASE
NEW YORK & COMPANY, INC. ANNOUNCES THIRD QUARTER 2015 RESULTS
~ 3rd Consecutive Quarter of Positive Comparable Store Sales Growth ~
~ Comparable Store Sales Increased 4.9%; Highest Q3 Comp Since 2004 ~
~ Introduces Q4 Guidance with Comparable Store Sales Increase and Improved Operating Results ~
New York, New York December 2, 2015 New York & Company, Inc. [NYSE:NWY], a specialty apparel chain with 508 retail stores, today announced results for the third quarter ended October 31, 2015.
Gregory Scott, New York & Companys CEO, stated: We are pleased to continue our positive momentum from the first half of the year and deliver another solid quarter where we achieved growth across key financial metrics, including increased sales, positive comparable store sales, and expansion in gross margin. Combined, this drove a $4.1 million improvement in adjusted operating loss versus last years third quarter. Once again, our performance highlights the increased connection we are creating with our target consumers as we deliver excitement in fashion, with celebrity brands and great value. This, in addition to increased sales productivity as we optimize our real estate with new openings and outlet conversions and expand our omni-channel capabilities with full ship from store capabilities, drove a 4.9% increase in comparable store sales in the quarter.
Third Quarter Fiscal Year 2015 Results: (13-weeks ended October 31, 2015 compared to the 13-weeks ended November 1, 2014)
· Net sales were $219.8 million, as compared to $210.3 million in the prior year.
· Comparable store sales increased 4.9% and total net sales increased by 4.5%.
· Gross profit as a percentage of net sales increased 180 basis points versus the fiscal year 2014 third quarter principally due to reduced product costs, decreased buying expenses and improved leverage of fixed occupancy costs, partially offset by increased shipping costs associated with significant growth in the Companys eCommerce business.
· Selling, general and administrative expenses were $68.6 million, as compared to $66.8 million in the prior year period. Included in fiscal year 2015 third quarter are $2.3 million of non-operating charges resulting primarily from the settlement of a wage and hour class action lawsuit in the state of California.
· Excluding non-operating charges of $2.3 million and $2.8 million for the three months ended October 31, 2015 and November 1, 2014, respectively, selling, general and administrative expenses were $66.3 million, as compared to $64.0 million in the prior year. The increase in selling, general, and administrative expenses is primarily
attributable to increases in variable-based compensation accruals, increases in rent and depreciation and increased expenses associated with the growth in eCommerce and Outlets, partially offset by reductions in marketing and payroll.
· GAAP operating loss was $4.9 million, as compared to the prior years third quarter GAAP operating loss of $9.5 million. On a non-GAAP basis, excluding $2.3 million of non-operating charges, adjusted operating loss was $2.6 million, an improvement of $4.1 million from the prior years non-GAAP operating loss of $6.7 million, which excluded $2.8 million of non-operating charges.
· GAAP net loss for the third quarter of fiscal year 2015 was $5.3 million, or $0.08 per diluted share. This compares to the prior years GAAP net loss of $9.7 million, or $0.15 per diluted share. On a non-GAAP basis, the Companys third quarter 2015 adjusted net loss was $3.0 million, or $0.05 per diluted share. This compares to the prior years third quarter non-GAAP adjusted net loss of $6.9 million, or $0.11 per diluted share.
Please refer to the Reconciliation of GAAP to Non-GAAP Financial Measures in Exhibits 5 and 6 of this press release, which delineates the non-operating charges for the three and nine months ended October 31, 2015 and November 1, 2014, respectively. GAAP is defined as Generally Accepted Accounting Principles.
· Total quarter-end inventory increased 3.4%, as compared to the end of last years third quarter, which was in line with the Companys expectations.
· Capital spending for the third quarter of fiscal year 2015 was $6.8 million, as compared to $10.3 million in last years third quarter, primarily reflecting less spend on the opening of new Outlet stores and the remodeling of existing locations. This was in line with the Companys previously issued guidance.
· The Company opened 5 new stores, (2 New York & Company stores and 3 Outlet stores), converted 3 New York & Company stores to Outlet stores, remodeled 2 New York & Company stores, and closed 1 store during the third quarter, ending the fiscal quarter with 508 stores, including 82 Outlet stores, and 2.6 million selling square feet in operation.
· The Company ended the quarter with $45.0 million of cash-on-hand and no outstanding borrowings under its revolving credit facility, as compared to $55.5 million of cash-on-hand at the end of last years third quarter.
For the nine months ended October 31, 2015:
Net sales were $678.8 million, as compared to $656.0 million for the nine months ended November 1, 2014. Comparable store sales increased 3.5%, as compared to a decrease of 1.1% in the prior year period. GAAP operating loss was $8.7 million. On a non-GAAP basis, adjusted operating loss was $1.6 million. This compares to a GAAP operating loss of $9.2 million and a non-GAAP, adjusted operating loss of $6.4 million for the nine months ended November 1, 2014. Net loss was $10.2 million, or a loss of $0.16 per diluted share. On a non-GAAP basis, adjusted net loss was $3.0 million, or a loss of $0.05 per diluted share. This compares to the prior
year periods net loss of $10.2 million, or a loss of $0.16 per diluted share. On a non-GAAP basis, prior year periods adjusted net loss was $7.4 million, or a loss of $0.12 per diluted share.
Outlook:
Regarding expectations for the fourth quarter of fiscal year 2015, the Company is providing the following guidance:
· Net sales and comparable store sales are expected to increase by a low single-digit percentage.
· Gross margin is expected to increase in the range of 50-150 basis points from the prior years fourth quarter rate reflecting improved product costs, decreases in markdowns, reductions in buying costs and improved leverage of occupancy costs, partially offset by increased shipping costs associated with the growing omni-channel business.
· Selling, general and administrative expenses are expected to decrease by approximately $3 million to $5 million, as compared to the prior year period; however, non-GAAP adjusted SG&A excluding charges of $6.4 million from the prior year are expected to increase by approximately $1.5 million to $3.5 million. This increase is primarily due to an insurance credit which reduced expenses in the prior year, as well as increases in the following areas of the Companys business: (i) increases in variable-based compensation accruals as compared to last year; (ii) increases in variable costs associated with the growing eCommerce business; and (iii) increased rent and depreciation expense related to the Companys new corporate headquarters and information technology investments. This change is partially offset by anticipated savings in marketing, in addition to savings in payroll as a result of the Companys organizational realignment completed in July of 2015.
· Operating results on a GAAP basis for the fourth quarter of fiscal year 2015 are expected to improve significantly, reflecting operating income between $1 million and $3 million.
· Business Process Improvement Plan Update
As previously announced, the Company continues to expect its productivity initiative, Project Excellence, to produce annualized savings of approximately $30 million, approximately half of which will benefit fiscal year 2015 results largely in the form of payroll reductions, mitigating increases in certain fixed costs and investments and growth in variable expenses in the Companys expanding eCommerce and Outlet businesses. The remaining savings, which are largely comprised of reductions in product costs and to a lesser extent payroll reductions, are expected to benefit fiscal year 2016, improving profitability and increasing gross profit margin by approximately 150 basis points, as compared to fiscal year 2015.
Additional Outlook:
· Total inventory is expected to increase in the low to mid single-digit percentage range, reflecting higher levels of in-store inventory as we position inventory for the Spring selling period.
· Capital expenditures for the fourth quarter of fiscal year 2015 are projected to be between $6 million and $7 million, as compared to $5.8 million of capital expenditures in the fourth quarter of last year. Capital expenditures are projected to include the following:
· Real Estate capital expenditures of $1 million to $2 million; and
· Investments of approximately $5 million in information technology and eCommerce.
· Depreciation expense for the fourth quarter of fiscal year 2015 is estimated to be approximately $6 million.
· The Company plans to end the full fiscal year 2015 having opened 12 new stores, (4 New York & Company stores and 8 Outlet stores), converted 12 New York & Company stores to Outlet stores, remodeled 8 existing stores and closed approximately 24 stores, ending the fiscal year with roughly 492 stores, including 82 Outlet stores, and approximately 2.5 million selling square feet.
Conference Call Information
A conference call to discuss third quarter of fiscal year 2015 results is scheduled for today, Wednesday, December 2, 2015 at 4:30 p.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial (888) 437-9445 and reference conference ID number 947238 approximately ten minutes prior to the start of the call. The conference call will also be web-cast live at www.nyandcompany.com. A replay of this call will be available at 7:30 p.m. Eastern Time on December 2, 2015, until 11:59 p.m. Eastern Time on December 9, 2015 and can be accessed by dialing (877) 870-5176 and entering conference ID number 947238.
About New York & Company
New York & Company, Inc. is a specialty retailer of womens fashion apparel and accessories, and the modern wear-to-work destination for women, providing perfectly fitting pants and NY Style that is feminine, polished, on-trend and versatile all at compelling values. The Companys proprietary branded New York & Company® merchandise is sold exclusively through its national network of retail stores and online at www.nyandcompany.com. The Company operates 508 stores in 43 states. Additionally, certain product, press release and SEC filing information concerning the Company are available at the Companys website: www.nyandcompany.com.
Investor/Media Contact:
ICR, Inc.
203-682-8200
Investor: Allison Malkin
Forward-looking Statements
This press release contains certain forward looking statements, including statements made under Outlook and Additional Outlook, within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Some of these statements can be identified by terms and phrases such as expect, anticipate, believe, intend, estimate, continue, could, may, plan, project, predict, and similar expressions and references to assumptions that the Company believes are reasonable and relate to its future prospects, developments and business strategies. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These include, but are not limited to: (i) the impact of general economic conditions and their effect on consumer confidence and spending patterns; (ii) changes in the cost of raw materials, distribution services or labor; (iii) the potential for current economic conditions to negatively impact the Companys merchandise vendors and their ability to deliver products; (iv) the Companys ability to open and operate stores successfully; (v) the Companys ability to fully recognize the potential savings identified through Project Excellence; (vi) seasonal fluctuations in the Companys business; (vii) the Companys ability to anticipate and respond to fashion trends; (viii) the Companys dependence on mall traffic for its sales; (ix) competition in the Companys market, including promotional and pricing competition; (x) the Companys ability to retain, recruit and train key personnel; (xi) the Companys reliance on third parties to manage some aspects of its business; (xii) the Companys reliance on foreign sources of production; (xiii) the Companys ability to protect its trademarks and other intellectual property rights; (xiv) the Companys ability to maintain, and its reliance on, its information technology infrastructure; (xv) the effects of government regulation; (xvi) the control of the Company by its sponsors and any potential change of ownership of those sponsors; and (xvii) other risks and uncertainties as described in the Companys documents filed with the SEC, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company undertakes no obligation to revise the forward looking statements included in this press release to reflect any future events or circumstances.
Exhibit (1)
New York & Company, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands, except per share amounts) |
|
Three months ended October 31, 2015 |
|
% of net sales |
|
Three months ended November 1, 2014 |
|
% of net sales |
|
Net sales |
|
$ |
219,750 |
|
100.0 |
% |
$ |
210,314 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold, buying and occupancy costs |
|
156,055 |
|
71.0 |
% |
153,037 |
|
72.8 |
% |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
63,695 |
|
29.0 |
% |
57,277 |
|
27.2 |
% |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
68,612 |
|
31.2 |
% |
66,751 |
|
31.7 |
% |
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(4,917 |
) |
(2.2 |
)% |
(9,474 |
) |
(4.5 |
)% |
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
325 |
|
0.1 |
% |
112 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
(5,242 |
) |
(2.3 |
)% |
(9,586 |
) |
(4.5 |
)% |
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
94 |
|
0.1 |
% |
150 |
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(5,336 |
) |
(2.4 |
)% |
$ |
(9,736 |
) |
(4.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share |
|
$ |
(0.08 |
) |
|
|
$ |
(0.15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share |
|
$ |
(0.08 |
) |
|
|
$ |
(0.15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic shares of common stock |
|
63,224 |
|
|
|
62,911 |
|
|
|
Diluted shares of common stock |
|
63,224 |
|
|
|
62,911 |
|
|
|
Selected operating data:
(Dollars in thousands, except square foot data) |
|
|
|
|
|
|
|
|
|
Comparable store sales increase (decrease) |
|
4.9 |
% |
|
|
(3.4 |
)% |
|
|
Net sales per average selling square foot (a) |
|
$ |
85 |
|
|
|
$ |
80 |
|
|
|
Net sales per average store (b) |
|
$ |
434 |
|
|
|
$ |
412 |
|
|
|
Average selling square footage per store (c) |
|
5,117 |
|
|
|
5,155 |
|
|
|
Ending store count |
|
508 |
|
|
|
512 |
|
|
|
(a) Net sales per average selling square foot is defined as net sales divided by the average of beginning and end of period selling square feet.
(b) Net sales per average store is defined as net sales divided by the average of beginning and end of period number of stores.
(c) Average selling square footage per store is defined as end of period selling square feet divided by end of period number of stores.
Exhibit (2)
New York & Company, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands, except per share amounts) |
|
Nine months ended October 31, 2015 |
|
% of net sales |
|
Nine months ended November 1, 2014 |
|
% of net sales |
|
Net sales |
|
$ |
678,836 |
|
100.0 |
% |
$ |
655,973 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold, buying and occupancy costs |
|
483,761 |
|
71.3 |
% |
474,574 |
|
72.3 |
% |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
195,075 |
|
28.7 |
% |
181,399 |
|
27.7 |
% |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
203,802 |
|
30.0 |
% |
190,632 |
|
29.1 |
% |
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(8,727 |
) |
(1.3 |
)% |
(9,233 |
) |
(1.4 |
)% |
|
|
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
923 |
|
0.1 |
% |
281 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
(9,650 |
) |
(1.4 |
)% |
(9,514 |
) |
(1.4 |
)% |
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
503 |
|
0.1 |
% |
651 |
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(10,153 |
) |
(1.5 |
)% |
$ |
(10,165 |
) |
(1.5 |
)% |
|
|
|
|
|
|
|
|
|
|
Basic loss per share |
|
$ |
(0.16 |
) |
|
|
$ |
(0.16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share |
|
$ |
(0.16 |
) |
|
|
$ |
(0.16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic shares of common stock |
|
63,127 |
|
|
|
62,789 |
|
|
|
Diluted shares of common stock |
|
63,127 |
|
|
|
62,789 |
|
|
|
Selected operating data:
(Dollars in thousands, except square foot data) |
|
|
|
|
|
|
|
|
|
Comparable store sales increase (decrease) |
|
3.5 |
% |
|
|
(1.1 |
)% |
|
|
Net sales per average selling square foot (a) |
|
$ |
261 |
|
|
|
$ |
249 |
|
|
|
Net sales per average store (b) |
|
$ |
1,342 |
|
|
|
$ |
1,286 |
|
|
|
Average selling square footage per store (c) |
|
5,117 |
|
|
|
5,155 |
|
|
|
(a) Net sales per average selling square foot is defined as net sales divided by the average of beginning and end of period selling square feet.
(b) Net sales per average store is defined as net sales divided by the average of beginning and end of period number of stores.
(c) Average selling square footage per store is defined as end of period selling square feet divided by end of period number of stores.
Exhibit (3)
New York & Company, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands) |
|
October 31, 2015 |
|
January 31, 2015 |
|
November 1, 2014 |
|
|
|
(Unaudited) |
|
(Audited) |
|
(Unaudited) |
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
44,980 |
|
$ |
69,293 |
|
$ |
55,545 |
|
Restricted cash |
|
1,509 |
|
1,509 |
|
2,135 |
|
Accounts receivable |
|
12,630 |
|
7,406 |
|
10,018 |
|
Income taxes receivable |
|
73 |
|
99 |
|
99 |
|
Inventories, net |
|
129,006 |
|
93,791 |
|
124,785 |
|
Prepaid expenses |
|
19,669 |
|
20,581 |
|
20,915 |
|
Other current assets |
|
1,335 |
|
1,121 |
|
1,516 |
|
Total current assets |
|
209,202 |
|
193,800 |
|
215,013 |
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
87,412 |
|
84,374 |
|
82,833 |
|
Intangible assets |
|
14,879 |
|
14,879 |
|
14,879 |
|
Deferred income taxes |
|
6,316 |
|
6,660 |
|
6,675 |
|
Other assets |
|
2,128 |
|
2,167 |
|
1,510 |
|
Total assets |
|
$ |
319,937 |
|
$ |
301,880 |
|
$ |
320,910 |
|
Liabilities and stockholders equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Current portionlong-term debt |
|
$ |
1,000 |
|
$ |
1,000 |
|
$ |
1,000 |
|
Accounts payable |
|
107,139 |
|
86,481 |
|
109,566 |
|
Accrued expenses |
|
54,871 |
|
52,418 |
|
41,783 |
|
Income taxes payable |
|
599 |
|
710 |
|
710 |
|
Deferred income taxes |
|
6,316 |
|
6,660 |
|
6,675 |
|
Total current liabilities |
|
169,925 |
|
147,269 |
|
159,734 |
|
|
|
|
|
|
|
|
|
Long-term debt, net of current portion |
|
13,000 |
|
13,750 |
|
14,000 |
|
Deferred rent |
|
37,791 |
|
35,169 |
|
35,953 |
|
Other liabilities |
|
6,996 |
|
6,333 |
|
4,808 |
|
Total liabilities |
|
227,712 |
|
202,521 |
|
214,495 |
|
|
|
|
|
|
|
|
|
Total stockholders equity |
|
92,225 |
|
99,359 |
|
106,415 |
|
Total liabilities and stockholders equity |
|
$ |
319,937 |
|
$ |
301,880 |
|
$ |
320,910 |
|
Exhibit (4)
New York & Company, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands) |
|
Nine months ended October 31, 2015 |
|
Nine months ended November 1, 2014 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
Operating activities |
|
|
|
|
|
Net loss |
|
$ |
(10,153 |
) |
$ |
(10,165 |
) |
|
|
|
|
|
|
|
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
18,590 |
|
20,835 |
|
Loss from impairment charges |
|
287 |
|
911 |
|
Amortization of deferred financing costs |
|
154 |
|
92 |
|
Share-based compensation expense |
|
2,948 |
|
3,210 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Restricted cash |
|
|
|
(2,135 |
) |
Accounts receivable |
|
(5,224 |
) |
(2,992 |
) |
Income taxes receivable |
|
26 |
|
|
|
Inventories, net |
|
(35,215 |
) |
(41,306 |
) |
Prepaid expenses |
|
912 |
|
226 |
|
Accounts payable |
|
20,658 |
|
33,692 |
|
Accrued expenses |
|
2,256 |
|
(5,097 |
) |
Income taxes payable |
|
(111 |
) |
(365 |
) |
Deferred rent |
|
2,622 |
|
(3,972 |
) |
Other assets and liabilities |
|
198 |
|
(1,207 |
) |
Net cash used in operating activities |
|
(2,052 |
) |
(8,273 |
) |
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Capital expenditures |
|
(20,835 |
) |
(21,026 |
) |
Insurance recoveries |
|
146 |
|
254 |
|
Net cash used in investing activities |
|
(20,689 |
) |
(20,772 |
) |
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Proceeds from issuance of long-term debt |
|
|
|
15,000 |
|
Repayment of long-term debt |
|
(750 |
) |
|
|
Payment of financing costs |
|
(161 |
) |
(188 |
) |
Proceeds from exercise of stock options |
|
16 |
|
299 |
|
Shares withheld for payment of employee payroll taxes |
|
(267 |
) |
(244 |
) |
Principal payments on capital lease obligations |
|
(410 |
) |
|
|
Net cash (used in) provided by financing activities |
|
(1,572 |
) |
14,867 |
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(24,313 |
) |
(14,178 |
) |
Cash and cash equivalents at beginning of period |
|
69,293 |
|
69,723 |
|
Cash and cash equivalents at end of period |
|
$ |
44,980 |
|
$ |
55,545 |
|
Non-cash capital lease transactions |
|
$ |
1,080 |
|
$ |
|
|
Exhibit (5)
New York & Company, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
A reconciliation of the Companys GAAP to non-GAAP selling, general, and administrative expenses, operating loss, net loss and loss per diluted share for the three and nine months ended October 31, 2015 is indicated below. This information reflects, on a non-GAAP basis, the Companys adjusted operating results after excluding certain non-operating charges consisting primarily of consulting fees associated with Project Excellence, certain severance expenses, and charges related to a settlement of a wage and hour class action lawsuit in the state of California. This non-GAAP financial information is provided to enhance the users overall understanding of the Companys current financial performance. Specifically, the Company believes the non-GAAP adjusted results provide useful information to both management and investors by excluding expenses that the Company believes are not indicative of the Companys continuing operating results. The non-GAAP financial information should be considered in addition to, not as a substitute for or as being superior to, measures of financial performance prepared in accordance with GAAP.
|
|
Three months ended October 31, 2015 |
|
(Amounts in thousands, except per share amounts) |
|
Selling, general and administrative expenses |
|
Operating loss |
|
Net loss |
|
Loss per diluted share |
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
68,612 |
|
$ |
(4,917 |
) |
$ |
(5,336 |
) |
$ |
(0.08 |
) |
Adjustments affecting comparability |
|
|
|
|
|
|
|
|
|
Consulting expense |
|
77 |
|
77 |
|
77 |
|
|
|
Net reduction of severance expense |
|
(7 |
) |
(7 |
) |
(7 |
) |
|
|
BHQ moving expenses |
|
12 |
|
12 |
|
12 |
|
|
|
Legal expense |
|
2,211 |
|
2,211 |
|
2,211 |
|
|
|
Total adjustments (1) |
|
2,293 |
|
2,293 |
|
2,293 |
|
0.03 |
|
Non-GAAP as adjusted . |
|
$ |
66,319 |
|
$ |
(2,624 |
) |
$ |
(3,043 |
) |
$ |
(0.05 |
) |
|
|
Nine months ended October 31, 2015 |
|
(Amounts in thousands, except per share amounts) |
|
Selling, general and administrative expenses |
|
Operating loss |
|
Net loss |
|
Loss per diluted share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
203,802 |
|
$ |
(8,727 |
) |
$ |
(10,153 |
) |
$ |
(0.16 |
) |
Adjustments affecting comparability |
|
|
|
|
|
|
|
|
|
Consulting expense |
|
3,105 |
|
3,105 |
|
3,105 |
|
|
|
Severance expense |
|
1,577 |
|
1,577 |
|
1,577 |
|
|
|
Net reduction of BHQ moving expenses |
|
(104 |
) |
(104 |
) |
(104 |
) |
|
|
Legal expense |
|
2,597 |
|
2,597 |
|
2,597 |
|
|
|
Total adjustments (1) |
|
7,175 |
|
7,175 |
|
7,175 |
|
0.11 |
|
Non-GAAP as adjusted . |
|
$ |
196,627 |
|
$ |
(1,552 |
) |
$ |
(2,978 |
) |
$ |
(0.05 |
) |
(1) The tax effect of $2.3 million and $7.2 million of expenses during the three and nine months ended October 31, 2015, respectively, is offset by a full valuation allowance against deferred tax assets.
Exhibit (6)
New York & Company, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
A reconciliation of the Companys GAAP to non-GAAP selling, general, and administrative expenses, operating loss, net loss and loss per diluted share for the three months and nine months ended November 1, 2014 is indicated below. This information reflects, on a non-GAAP adjusted basis, the Companys operating results after excluding certain non-operating charges consisting of consulting fees associated with Project Excellence, certain severance expenses, duplicative rent expense related to the relocation of the Companys corporate headquarters, and executive recruiting expenses. This non-GAAP financial information is provided to enhance the users overall understanding of the Companys current financial performance. Specifically, the Company believes the non-GAAP adjusted results provide useful information to both management and investors by excluding expenses that the Company believes are not indicative of the Companys continuing operating results. The non-GAAP financial information should be considered in addition to, not as a substitute for or as being superior to, measures of financial performance prepared in accordance with GAAP. There were no non-operating charges recorded during the first or second quarters of fiscal year 2014.
|
|
Three months ended November 1, 2014 |
|
(Amounts in thousands, except per share amounts) |
|
Selling, general and administrative expenses |
|
Operating loss |
|
Net loss |
|
Loss per diluted share |
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
66,751 |
|
$ |
(9,474 |
) |
$ |
(9,736 |
) |
$ |
(0.15 |
) |
Adjustments affecting comparability |
|
|
|
|
|
|
|
|
|
Consulting expense |
|
1,000 |
|
1,000 |
|
1,000 |
|
|
|
Executive severance expense |
|
732 |
|
732 |
|
732 |
|
|
|
Duplicative rent expense new BHQ office space |
|
962 |
|
962 |
|
962 |
|
|
|
Executive recruiting expense |
|
102 |
|
102 |
|
102 |
|
|
|
Total adjustments (1) |
|
2,796 |
|
2,796 |
|
2,796 |
|
0.04 |
|
Non-GAAP as adjusted |
|
$ |
63,955 |
|
$ |
(6,678 |
) |
$ |
(6,940 |
) |
$ |
(0.11 |
) |
|
|
Nine months ended November 1, 2014 |
|
(Amounts in thousands, except per share amounts) |
|
Selling, general and administrative expenses |
|
Operating loss |
|
Net loss |
|
Loss per diluted share |
|
|
|
|
|
|
|
|
|
|
|
GAAP as reported |
|
$ |
190,632 |
|
$ |
(9,233 |
) |
$ |
(10,165 |
) |
$ |
(0.16 |
) |
Adjustments affecting comparability |
|
|
|
|
|
|
|
|
|
Consulting expense |
|
1,000 |
|
1,000 |
|
1,000 |
|
|
|
Executive severance expense |
|
732 |
|
732 |
|
732 |
|
|
|
Duplicative rent expense new BHQ office space |
|
962 |
|
962 |
|
962 |
|
|
|
Executive recruiting expense |
|
102 |
|
102 |
|
102 |
|
|
|
Total adjustments (1) |
|
2,796 |
|
2,796 |
|
2,796 |
|
0.04 |
|
Non-GAAP as adjusted |
|
$ |
187,836 |
|
$ |
(6,437 |
) |
$ |
(7,369 |
) |
$ |
(0.12 |
) |
(1) The tax effect of $2.8 million of expenses is offset by a full valuation allowance against deferred tax assets.
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