NASHVILLE, Tenn., March 12, 2021 /PRNewswire/ -- Kirkland's,
Inc. (NASDAQ: KIRK) today announced financial results for the
13-week and 52-week periods ended January
30, 2021.
"We are pleased to report record earnings for the fourth
quarter, which reflect the appeal of our merchandise assortments
with customers and the earnings leverage in the business from our
cost and infrastructure changes," noted Woody Woodward, Chief Executive Officer. "This
has been a year filled with challenges as a company, as individuals
and as a nation. I am proud of how Kirkland's team members embraced
the reinvention and innovation required of us during the pandemic.
Their commitment to our customers and to one another during this
period is inspiring and affirming. Their diligence also provides us
the confidence that we can achieve our vision for Kirkland's and
execute on our strategic priorities and financial goals. We are
ahead of where we expected to be when we originally outlined these
goals a year ago and the results speak for themselves, but we have
more work ahead of us to accomplish all that is possible at
Kirkland's. We are energized by these opportunities for continued
improvement."
Mr. Woodward continued, "We continue to carefully, deliberately
and strategically evolve Kirkland's into a value-oriented specialty
retailer. Our strategy has been to incrementally improve the
quality and design of our merchandise while maintaining our opening
price points and delivering value for our customers. Merchandising
will be front and center again for us in 2021, along with
leveraging the improvements in infrastructure and operating costs
and accelerating our ongoing digital transformation. With total
liquidity of $140 million at year
end, we are well positioned to fund the evolution of
Kirkland's."
Strategic Priorities and Financial Goals
Kirkland's key strategic initiatives include:
- Accelerating product development to reinforce quality and
relevancy as we continue the transformation of the Kirkland's brand
into a specialty retailer where customers are able to furnish their
entire home on a budget;
- Improving omni-channel via website enhancements, more focused
marketing spend, an expanded online assortment, and an in-store
experience that is aligned with our omni-channel capabilities;
- Improving the customer experience with our re-launched loyalty
program, extended credit options and broadened delivery options;
and
- Utilizing our leaner infrastructure to be nimbler in our
response to changes in consumer preference and buying
behaviors.
Kirkland's annual financial goals for the next two to three
years include:
- Improving comparable sales performance, driven by e-commerce
growth, merchandising, brick-and-mortar store productivity and
closure of underperforming stores. We expect e-commerce to
continue to grow as a percent of our total business, but also
intend to focus on improving the contribution of our remaining
store base, which is an integral part of our omni-channel strategy
and supports improved profitability of our e-commerce sales.
- Stabilizing gross margin by continuing with our current
discipline of limited promotional offers, expanding direct
sourcing, improving supply chain efficiency and reducing occupancy
costs. With improved merchandise quality and to support a
better customer experience, we will continue to move towards more
targeted promotions. Direct sourcing is expected to increase from
approximately 20% of purchases in 2020 to 40% to 50% over the next
two to three years. With these product margin improvements,
continued efficiencies in our supply chain and lower occupancy
costs, our goal is to improve our annual gross profit margin to a
mid-30% range over the next two to three years.
- Improving profitability by leveraging the leaner
infrastructure with comparable sales growth. We believe our
ideal store count should be in the range of 300 to 350 stores. We
believe there will be additional opportunities for more favorable
rent terms with ongoing lease renewals. With approximately
$45 million in annualized operating
expenses eliminated from the business, we expect to reach annual
EBITDA as a percent of sales in the high-single to low-double-digit
range and annual operating income in the mid to high-single-digit
range within two to three years.
- Maintaining adequate liquidity and generating free cash flow
while continuing to invest in key strategic initiatives of the
business and returning excess cash to our shareholders.
The key strategic initiatives and financial goals are based on
current information as of March 12,
2021, and are dependent on, among other things, consumer
preferences, economic conditions and our own successful execution
of these initiatives. The information on which these initiatives
and financial goals is based is subject to change, and investors
are cautioned that the Company may update the initiatives and
goals, or any portion thereof, at any time for any reason.
Investor Conference Call and Web Simulcast
Kirkland's will hold its earnings call for the fourth quarter
later today at 9:00 a.m. ET. Participating on the call will be
Steve Woodward, Chief Executive
Officer and Nicole Strain, Chief
Financial Officer. The number to call for the interactive
teleconference is (412) 542-4163. A replay of the conference
call will be available through Friday, March 19, 2021 by
dialing (412) 317-0088 and entering the confirmation number
10152224.
A live webcast of Kirkland's quarterly conference call will be
available online on the Company's Investor Relations Page on
March 12, 2021, beginning at
9:00 a.m. ET. The online replay will follow shortly after the
call and continue for one year.
About Kirkland's, Inc.
Kirkland's, Inc. is a specialty retailer of home décor in
the United States, currently
operating 371 stores in 35 states as well as an e-commerce website,
www.kirklands.com. The Company's stores present a curated selection
of distinctive merchandise, including holiday décor, furniture,
wall décor, art, textiles, mirrors, fragrances, lamps and other
home decorating items. The Company's stores offer an extensive
assortment of holiday merchandise during seasonal periods. The
Company provides its customers an engaging shopping experience
characterized by casual, comfortable merchandise with a southern
feel and a modern flair at a discernible value. This combination of
quality and stylish merchandise, value pricing and a stimulating
online and store experience has led the Company to develop a loyal
customer base. More information can be found at
www.kirklands.com.
Forward-Looking Statements
Except for historical information contained herein, the
statements in this release, including all statements related to
future initiatives, financial goals and expectations or beliefs
regarding any future period, are forward-looking and made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 and are subject to the finalization of the
Company's quarterly financial and accounting procedures.
Forward-looking statements involve known and unknown risks and
uncertainties, which may cause Kirkland's actual results to differ
materially from forecasted results. Those risks and uncertainties
include, among other things, risks associated with the Company's
progress and anticipated progress towards its long-term objective
and the success of its plans in response to the novel coronavirus
("COVID-19"), the spread of COVID-19 and its impact on the
Company's revenues and supply chain, risks associated with COVID-19
and the governments responses to it, the impact of store closures
in 2020, the effectiveness of the Company's marketing campaigns,
risks related to changes in U.S. policy related to imported
merchandise, particularly with regard to the impact of tariffs on
goods imported from China and
strategies undertaken to mitigate such impact, the Company's
ability to retain its senior management team, continued volatility
in the price of the Company's common stock, the competitive
environment in the home décor industry in general and in Kirkland's
specific market areas, inflation, fluctuations in cost and
availability of products, interruptions in supply chain and
distribution systems, including our e-commerce systems and
channels, the ability to control employment and other operating
costs, availability of suitable retail locations and other growth
opportunities, disruptions in information technology systems
including the potential for security breaches of Kirkland's or its
customers' information, seasonal fluctuations in consumer spending,
and economic conditions in general. Those and other risks are more
fully described in Kirkland's filings with the Securities and
Exchange Commission, including the Company's Annual Report
on Form 10-K filed on April 10,
2020 and subsequent reports. Forward-looking statements
included in this release are made as of the date of this release.
Any changes in assumptions or factors on which such statements are
based could produce materially different results. Kirkland's
disclaims any obligation to update any such factors or to publicly
announce results of any revisions to any of the forward-looking
statements contained herein to reflect future events or
developments.
|
KIRKLAND'S,
INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS
OF OPERATIONS
(In thousands, except per share data)
|
|
|
|
13-Week Period
Ended
|
|
|
|
January
30,
|
|
|
February
1,
|
|
|
|
2021
|
|
|
2020
|
|
|
Net sales
|
|
$
|
194,918
|
|
|
$
|
209,411
|
|
|
Cost of
sales
|
|
|
121,363
|
|
|
|
146,905
|
|
|
Gross
profit
|
|
|
73,555
|
|
|
|
62,506
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
25,412
|
|
|
|
33,562
|
|
|
Other operating
expenses
|
|
|
18,447
|
|
|
|
20,649
|
|
|
Depreciation
(exclusive of depreciation included in cost of sales)
|
|
|
1,622
|
|
|
|
1,527
|
|
|
Asset
impairment
|
|
|
360
|
|
|
|
11,978
|
|
|
Total operating
expenses
|
|
|
45,841
|
|
|
|
67,716
|
|
|
Operating income
(loss)
|
|
|
27,714
|
|
|
|
(5,210)
|
|
|
Other income,
net
|
|
|
(17)
|
|
|
|
(49)
|
|
|
Income (loss) before
income taxes
|
|
|
27,731
|
|
|
|
(5,161)
|
|
|
Income tax expense
(benefit)
|
|
|
7,039
|
|
|
|
(243)
|
|
|
Net income
(loss)
|
|
$
|
20,692
|
|
|
$
|
(4,918)
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.45
|
|
|
$
|
(0.35)
|
|
|
Diluted
|
|
$
|
1.36
|
|
|
$
|
(0.35)
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
14,273
|
|
|
|
13,929
|
|
|
Diluted
|
|
|
15,196
|
|
|
|
13,929
|
|
|
KIRKLAND'S,
INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS
OF OPERATIONS
(In thousands, except per share data)
|
|
|
|
52-Week Period
Ended
|
|
|
|
January
30,
|
|
|
February
1,
|
|
|
|
2021
|
|
|
2020
|
|
|
Net sales
|
|
$
|
543,496
|
|
|
$
|
603,880
|
|
|
Cost of
sales
|
|
|
371,114
|
|
|
|
438,446
|
|
|
Gross
profit
|
|
|
172,382
|
|
|
|
165,434
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
85,569
|
|
|
|
116,895
|
|
|
Other operating
expenses
|
|
|
63,290
|
|
|
|
75,647
|
|
|
Depreciation
(exclusive of depreciation included in cost of sales)
|
|
|
6,305
|
|
|
|
6,704
|
|
|
Asset
impairment
|
|
|
9,387
|
|
|
|
19,229
|
|
|
Total operating
expenses
|
|
|
164,551
|
|
|
|
218,475
|
|
|
Operating income
(loss)
|
|
|
7,831
|
|
|
|
(53,041)
|
|
|
Other expense
(income), net
|
|
|
195
|
|
|
|
(454)
|
|
|
Income (loss) before
income taxes
|
|
|
7,636
|
|
|
|
(52,587)
|
|
|
Income tax (benefit)
expense
|
|
|
(8,611)
|
|
|
|
678
|
|
|
Net income
(loss)
|
|
$
|
16,247
|
|
|
$
|
(53,265)
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.15
|
|
|
$
|
(3.79)
|
|
|
Diluted
|
|
$
|
1.09
|
|
|
$
|
(3.79)
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
14,159
|
|
|
|
14,070
|
|
|
Diluted
|
|
|
14,880
|
|
|
|
14,070
|
|
|
KIRKLAND'S,
INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
|
|
|
|
January
30,
|
|
|
February
1,
|
|
|
|
2021
|
|
|
2020
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
100,337
|
|
|
$
|
30,132
|
|
|
Inventories,
net
|
|
|
62,083
|
|
|
|
94,674
|
|
|
Prepaid expenses and
other current assets
|
|
|
8,278
|
|
|
|
6,705
|
|
|
Total current
assets
|
|
|
170,698
|
|
|
|
131,511
|
|
|
Property and
equipment, net
|
|
|
63,262
|
|
|
|
82,863
|
|
|
Operating lease
right-of-use assets
|
|
|
149,792
|
|
|
|
200,067
|
|
|
Other
assets
|
|
|
5,670
|
|
|
|
8,001
|
|
|
Total
assets
|
|
$
|
389,422
|
|
|
$
|
422,442
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
55,481
|
|
|
$
|
59,513
|
|
|
Accrued
expenses
|
|
|
37,390
|
|
|
|
28,773
|
|
|
Operating lease
liabilities
|
|
|
45,441
|
|
|
|
53,154
|
|
|
Total current
liabilities
|
|
|
138,312
|
|
|
|
141,440
|
|
|
Operating lease
liabilities
|
|
|
150,966
|
|
|
|
195,736
|
|
|
Other
liabilities
|
|
|
5,614
|
|
|
|
8,311
|
|
|
Total
liabilities
|
|
|
294,892
|
|
|
|
345,487
|
|
|
Net
shareholders' equity
|
|
|
94,530
|
|
|
|
76,955
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
389,422
|
|
|
$
|
422,442
|
|
|
KIRKLAND'S,
INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS
(In thousands)
|
|
|
|
52-Week Period
Ended
|
|
|
|
January
30,
|
|
|
February
1,
|
|
|
|
2021
|
|
|
2020
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
16,247
|
|
|
$
|
(53,265)
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation of
property and equipment
|
|
|
23,404
|
|
|
|
27,720
|
|
|
Amortization of debt
issuance costs
|
|
|
93
|
|
|
|
56
|
|
|
Impairment
charge
|
|
|
9,387
|
|
|
|
19,229
|
|
|
Cumulative effect of
change in accounting principle
|
|
|
—
|
|
|
|
(331)
|
|
|
Loss on disposal of
property and equipment
|
|
|
87
|
|
|
|
200
|
|
|
Stock-based
compensation expense
|
|
|
1,171
|
|
|
|
3,254
|
|
|
Deferred income
taxes
|
|
|
1,525
|
|
|
|
178
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
Inventories,
net
|
|
|
32,591
|
|
|
|
(10,240)
|
|
|
Prepaid expenses and
other current assets
|
|
|
(1,612)
|
|
|
|
3,851
|
|
|
Accounts
payable
|
|
|
(2,575)
|
|
|
|
18,928
|
|
|
Accounts payable to
related party vendor
|
|
|
—
|
|
|
|
(8,166)
|
|
|
Accrued
expenses
|
|
|
6,803
|
|
|
|
1,666
|
|
|
Income taxes payable
(refundable)
|
|
|
1,853
|
|
|
|
(704)
|
|
|
Operating lease assets
and liabilities
|
|
|
(8,573)
|
|
|
|
(10,645)
|
|
|
Other assets and
liabilities
|
|
|
(1,838)
|
|
|
|
—
|
|
|
Net cash provided by
(used in) operating activities
|
|
|
78,563
|
|
|
|
(8,269)
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of
property and equipment
|
|
|
209
|
|
|
|
—
|
|
|
Capital
expenditures
|
|
|
(8,698)
|
|
|
|
(15,680)
|
|
|
Net cash used in
investing activities
|
|
|
(8,489)
|
|
|
|
(15,680)
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Borrowings on
revolving line of credit
|
|
|
40,000
|
|
|
|
25,000
|
|
|
Repayments on
revolving line of credit
|
|
|
(40,000)
|
|
|
|
(25,000)
|
|
|
Debt issuance
costs
|
|
|
(26)
|
|
|
|
(362)
|
|
|
Cash used in net
share settlement of stock options and restricted stock
|
|
|
(60)
|
|
|
|
(87)
|
|
|
Proceeds received
from employee stock option exercises
|
|
|
360
|
|
|
|
—
|
|
|
Employee stock
purchases
|
|
|
35
|
|
|
|
241
|
|
|
Repurchase and
retirement of common stock
|
|
|
(178)
|
|
|
|
(3,657)
|
|
|
Net cash provided by
(used in) financing activities
|
|
|
131
|
|
|
|
(3,865)
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease)
|
|
|
70,205
|
|
|
|
(27,814)
|
|
|
Beginning of the
year
|
|
|
30,132
|
|
|
|
57,946
|
|
|
End of the
year
|
|
$
|
100,337
|
|
|
$
|
30,132
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
442
|
|
|
$
|
377
|
|
|
Income taxes
(received) paid
|
|
|
(11,945)
|
|
|
|
1,091
|
|
|
Supplemental
schedule of non-cash activities:
|
|
|
|
|
|
|
|
|
|
Non-cash accruals for
purchases of property and equipment
|
|
$
|
396
|
|
|
$
|
1,853
|
|
|
Operating lease assets
and liabilities recognized upon adoption of ASC 842
|
|
|
—
|
|
|
|
295,240
|
|
Non-GAAP Financial Measures
To supplement our unaudited consolidated condensed financial
statements presented in accordance with generally accepted
accounting principles ("GAAP"), this earnings release and the
related earnings conference call contain certain non-GAAP financial
measures, including EBITDA, adjusted EBITDA, adjusted operating
income (loss), adjusted net income (loss) and adjusted diluted
earnings (loss) per share. These measures are not in accordance
with, and are not intended as alternatives to, GAAP. The Company
uses these non-GAAP financial measures internally in analyzing our
financial results and believes that they provide useful information
to analysts and investors, as a supplement to GAAP measures, in
evaluating our operational performance.
The Company defines EBITDA as net income or loss before
interest, provision for income tax, and depreciation and
amortization, adjusted EBITDA as EBITDA with non-GAAP adjustments
and adjusted operating income (loss) as operating income (loss)
with non-GAAP adjustments. The Company defines adjusted net income
(loss) and adjusted diluted earnings (loss) per share by adjusting
the applicable GAAP measure for non-GAAP adjustments.
Non-GAAP measures are intended to provide additional information
only and do not have any standard meanings prescribed by GAAP. Use
of these terms may differ from similar measures reported by other
companies. Each non-GAAP measure has its limitations as an
analytical tool, and you should not consider them in isolation or
as a substitute for analysis of the Company's results as reported
under GAAP.
The following table shows a reconciliation of operating income
(loss) to EBITDA, adjusted EBITDA and adjusted operating income
(loss) for the 13 weeks and 52 weeks ended January 30, 2021 and February 1, 2020 and a reconciliation of net
income (loss) and diluted earnings (loss) per share to adjusted net
income (loss) and adjusted diluted earnings (loss) per share for
the 13 weeks and 52 weeks ended January 30,
2021 and February 1, 2020:
|
KIRKLAND'S,
INC.
UNAUDITED NON-GAAP MEASURE RECONCILIATION
(In thousands, except per share data)
|
|
|
|
13-Week Period
Ended
|
|
|
52-Week Period
Ended
|
|
|
|
January 30,
2021
|
|
|
February 1,
2020
|
|
|
January 30,
2021
|
|
|
February 1,
2020
|
|
|
Operating income
(loss)
|
|
$
|
27,714
|
|
|
$
|
(5,210)
|
|
|
$
|
7,831
|
|
|
$
|
(53,041)
|
|
|
Depreciation and
amortization
|
|
|
5,594
|
|
|
|
6,564
|
|
|
|
23,404
|
|
|
|
27,720
|
|
|
EBITDA
|
|
|
33,308
|
|
|
|
1,354
|
|
|
|
31,235
|
|
|
|
(25,321)
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed store and lease
termination costs in cost of sales(1)
|
|
|
(440)
|
|
|
|
(278)
|
|
|
|
(1,135)
|
|
|
|
(278)
|
|
|
Asset
impairment(2)
|
|
|
360
|
|
|
|
11,978
|
|
|
|
9,387
|
|
|
|
19,229
|
|
|
Stock-based
compensation expense(3)
|
|
|
259
|
|
|
|
1,259
|
|
|
|
1,171
|
|
|
|
3,254
|
|
|
Severance
charges(4)
|
|
|
271
|
|
|
|
1,696
|
|
|
|
1,161
|
|
|
|
2,624
|
|
|
Other costs included
in operating expenses(5)
|
|
|
235
|
|
|
|
916
|
|
|
|
439
|
|
|
|
1,035
|
|
|
Total adjustments in
operating expenses
|
|
|
1,125
|
|
|
|
15,849
|
|
|
|
12,158
|
|
|
|
26,142
|
|
|
Total non-GAAP
adjustments
|
|
|
685
|
|
|
|
15,571
|
|
|
|
11,023
|
|
|
|
25,864
|
|
|
Adjusted
EBITDA
|
|
|
33,993
|
|
|
|
16,925
|
|
|
|
42,258
|
|
|
|
543
|
|
|
Depreciation and
amortization
|
|
|
5,594
|
|
|
|
6,564
|
|
|
|
23,404
|
|
|
|
27,720
|
|
|
Adjusted operating
income (loss)
|
|
$
|
28,399
|
|
|
$
|
10,361
|
|
|
$
|
18,854
|
|
|
$
|
(27,177)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
20,692
|
|
|
$
|
(4,918)
|
|
|
$
|
16,247
|
|
|
$
|
(53,265)
|
|
|
Non-GAAP adjustments,
net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed store and lease
termination costs in cost of sales(1)
|
|
|
(307)
|
|
|
|
(219)
|
|
|
|
(840)
|
|
|
|
(219)
|
|
|
Asset
impairment(2)
|
|
|
21
|
|
|
|
9,607
|
|
|
|
6,948
|
|
|
|
15,133
|
|
|
Stock-based
compensation expense, including tax impact(3)
|
|
|
95
|
|
|
|
1,473
|
|
|
|
1,177
|
|
|
|
3,870
|
|
|
Severance
charges(4)
|
|
|
176
|
|
|
|
1,358
|
|
|
|
859
|
|
|
|
2,065
|
|
|
Other costs included
in operating expenses(5)
|
|
|
170
|
|
|
|
723
|
|
|
|
325
|
|
|
|
815
|
|
|
Total adjustments in
operating expenses
|
|
|
462
|
|
|
|
13,161
|
|
|
|
9,309
|
|
|
|
21,883
|
|
|
Tax valuation
allowance(6)
|
|
|
(1,700)
|
|
|
|
699
|
|
|
|
1,340
|
|
|
|
12,035
|
|
|
CARES Act - net
operating loss carry back(7)
|
|
|
2,052
|
|
|
|
—
|
|
|
|
(12,276)
|
|
|
|
—
|
|
|
Total non-GAAP
adjustments, net of tax
|
|
|
507
|
|
|
|
13,641
|
|
|
|
(2,467)
|
|
|
|
33,699
|
|
|
Adjusted net income
(loss)
|
|
$
|
21,199
|
|
|
$
|
8,723
|
|
|
$
|
13,780
|
|
|
$
|
(19,566)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
$
|
1.36
|
|
|
$
|
(0.35)
|
|
|
$
|
1.09
|
|
|
$
|
(3.79)
|
|
|
Adjusted diluted
earnings (loss) per share
|
|
$
|
1.40
|
|
|
$
|
0.62
|
|
|
$
|
0.93
|
|
|
$
|
(1.39)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
|
15,196
|
|
|
|
13,929
|
|
|
|
14,880
|
|
|
|
14,070
|
|
|
Adjusted diluted
weighted average shares outstanding
|
|
|
15,196
|
|
|
|
13,987
|
|
|
|
14,880
|
|
|
|
14,070
|
|
|
(1)
|
Costs associated with
closed stores and lease termination costs, including gains on lease
terminations, amounts paid to third-parties for rent reduction
negotiations and lease termination fees paid to landlords for store
closings.
|
|
(2)
|
Impairment charges
include both right-of-use asset and property and equipment
impairment charges.
|
|
(3)
|
Stock-based
compensation expense includes amounts expensed related to equity
incentive plans.
|
|
(4)
|
Severance charges
include expenses related to severance agreements. This also
includes permanent store closure compensation costs.
|
|
(5)
|
Other costs include
executive transition costs, corporate lease negotiation fees
associated with rent reduction in fiscal 2020 and write-offs of
excess and obsolete supplies in fiscal 2019.
|
|
(6)
|
To remove the impact
of the change in the Company's valuation allowance against deferred
tax assets.
|
|
(7)
|
The Company recorded
an income tax expense (benefit) related to the carry back of fiscal
2019 and estimated fiscal 2020 federal net operating losses to
prior periods as permitted under the CARES Act in fiscal
2020.
|
###
|
Contact:
Kirkland's
|
Kirkland's
|
|
Nicole
Strain
|
Investor
Relations
|
|
(615)
872-4800
|
IR@Kirklands.com
|
|
(615)
872-4898
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/kirklands-reports-fourth-quarter-2020-results-301246123.html
SOURCE Kirkland's, Inc.