Destination XL Group, Inc. (NASDAQ: DXLG), the largest omni-channel
specialty retailer of big and tall men's clothing, today reported
operating results for the first quarter of fiscal 2020 and provided
an update on actions taken in response to the COVID-19 pandemic.
Management’s Response to COVID-19
“We moved early and decisively over the past quarter to preserve
our financial flexibility and to position the Company to withstand
the impact of the COVID-19 pandemic on the consumer,” said Harvey
Kanter, President and Chief Executive Officer. “We have been
communicating consistently and transparently with our employees,
suppliers, landlords and banks and believe this direct and active
communication has meaningfully enhanced the level of partnership
and trust to support the plans we have in place to manage through
the pandemic. All of our stores closed on March 17, 2020 and
we began re-opening gradually at the very end of April, on a
store-by-store basis, as allowed by state and local
authorities. In addition, where permitted, we operated
approximately 30 stores (while closed to the public) to assist with
picking, packing and shipping e-commerce orders.
Kanter continued, “As of June 2, 2020, we now have approximately
201 stores open across the country and we expect all of our stores
will reopen by the end of June. With respect to the stores
that have opened thus far, some stores are performing better than
others, but overall comparable sales initially were down an average
of 70-80% to last year, but performance has improved week-to-week
and today we are seeing comparable sales down approximately 40% to
last year. We are also encouraged by our DXL.com business
where year-to-date demand is trending up 30% over the prior year
and up 70% to-date in the second quarter. Our Global Sourcing and
Design team initially helped us pivot our distribution center’s
tailoring and alterations team to make masks. Our Global
Sourcing teams’ expertise has now been extended even further,
leveraging our growing Wholesale channel to now source and sell
masks to Fortune 100 companies with nearly 2.5 million masks sold
to date in the second quarter and 250,000 masks for sale on
DXL.com. The distribution center has not only supported mask
making, but continues to operate throughout the pandemic,
which has allowed us to service our customers uninterrupted through
our growing digital e-Commerce channels.”
Actions and measures taken in response to the pandemic:
- Drew down $30.0 million of cash against our revolving credit
facility on March 20th to preserve our access to cash.
- Amended our credit facility on April 15th to improve our excess
availability on both the revolver and FILO loan.
- Furloughed entire store operations team and approximately 60%
of corporate office employees. Eliminated 34 corporate
positions permanently.
- Instituted temporary salary reductions ranging from 10% - 20%
for the management team.
- Suspended Non-Employee Directors’ compensation for the second
quarter.
- Cancelled $148 million, at retail, in merchandise receipts for
fiscal 2020.
- Worked with vendors for extended payment terms.
- Currently negotiating with store and corporate office landlords
on rent abatements and deferments for April through July, due to
the impact of shelter-in-place orders and store closures.
- Eliminated capital improvement programs for all discretionary
spend and non-essential expenditures.
Mr. Kanter continued, “At the end of the first quarter of fiscal
2020, we had a cash balance of $26.1 million, total debt of $96.5
million and remaining availability under our credit facility of
$16.8 million. While we cannot estimate with certainty the length
or severity of this pandemic, given our assumptions we have a plan
and we believe we have sufficient liquidity to navigate the working
capital needs to get to the other side and into 2021.”
First Quarter Financial Highlights
- Total sales for the first quarter of $57.2 million, down 49.3%
from $113.0 million in the prior-year first quarter.
- Cash Flow from operations of ($16.8) million as compared to the
prior year of ($16.5) million. Free Cash Flow was ($18.4)
million as compared to ($20.2) million last year.
- Impairment of asset charge of $16.3 million in the first
quarter of fiscal 2020 related to right-of-use lease assets of
$12.5 million and store fixed assets of $3.8 million.
- Net loss for the first quarter was $(41.7) million as compared
to a net loss of $(3.1) million in the prior year’s first
quarter.
- Adjusted EBITDA for the first quarter was $(18.9) million
compared to $4.8 million in the prior-year quarter.
- At May 2, 2020, cash balance of $26.1 million, total debt of
$96.5 million and remaining availability under our credit facility
of $16.8 million.
First Quarter Results
Sales
Total sales for the first quarter of fiscal 2020 decreased 49.3%
to $57.2 million from $113.0 million in the first quarter of fiscal
2019 principally due to the closing of all of our store locations
on March 17, 2020 in response to the COVID-19 pandemic. We have
been highly promotional since our stores closed to encourage our
customers to shop online and to mitigate a buildup of seasonal
inventory.
The growth of our wholesale business continues to be a key
initiative in fiscal 2020 led by our business with Amazon
Essentials, which contributed $2.0 million dollars of sales in the
first quarter. As noted above, we also launched a new
wholesale line of business for the design and sourcing of
protective masks, with sales beginning in the second quarter of
fiscal 2020.
Gross Margin
For the first quarter of fiscal 2020, our gross margin rate,
inclusive of occupancy costs, was 23.1% as compared to a gross
margin rate of 43.7% for the first quarter of fiscal 2019. Our
gross margin rate declined 13.3% from the deleveraging in occupancy
costs and a decrease of 7.3% in merchandise margins. The
decrease in merchandise margins reflects the increased promotional
posture we took in the second half of the first quarter in response
to COVID-19 as well as an increase in inventory reserves of $0.7
million.
Selling, General & Administrative
As a percentage of sales, SG&A (selling, general and
administrative) expenses for the first quarter of fiscal 2019 were
56.1% as compared to 39.5% for the first quarter of fiscal 2019. On
a dollar basis, SG&A decreased by $12.5 million, or 28%, as
compared to the first quarter of fiscal 2019. This decrease
in expenses was primarily driven by furloughs of both our store
associates and certain corporate associates as well as several
measures taken to reduce operating expenses, including marketing,
corporate payroll, and other discretionary spending. As
mentioned above, the majority of our field associates and
approximately 60% of our corporate associates were furloughed
shortly after we closed our stores. Further, our senior
management team each took a temporary reduction in salary of 20%
with other members of our management team taking a reduction of
10-15%. Non-employee directors of our board of directors received
their first quarter compensation, but in March 2020 announced the
suspension of their second quarter of fiscal 2020
compensation.
Management views SG&A expenses through two primary cost
centers: Customer Facing Costs and Corporate Support
Costs. Customer Facing Costs, which include store payroll,
marketing and other store operating costs, represented 25.7% of
sales in the first quarter of fiscal 2020 as compared to 22.6% of
sales in the first quarter of last year. Corporate Support
Costs, which include the distribution center and corporate overhead
costs, represented 30.4% of sales in the first quarter of fiscal
2020 compared to 16.9% of sales in the first quarter of last
year. While these percentages for the first quarter of fiscal
2020 are skewed by the loss of sales, we are continuing to assess
and rationalize our entire SG&A cost structure as we start to
reopen our stores. Given the changes to our business as a result of
this pandemic, we have started to restructure various areas to
ensure that we can operate most efficiently. This included
the elimination of approximately 34 positions in the first quarter
of fiscal 2020 and the elimination of non-essential operating
expenses. Across both our corporate office and stores, we
plan to bring back staff as we reopen and business comes back with
a planned three-phased approach, but will look to optimize store
hours and staffing models based on customer demand, and overall
store payroll costs are expected to trend lower than historical
levels.
Impairment of Assets
As a result of the impact of the COVID-19 pandemic on our
results for first quarter of fiscal 2020 and the uncertainty
surrounding its continuing impact, we completed an impairment
assessment of our long-lived assets as of May 2, 2020. Our
recoverability analysis in the first quarter of 2020 included the
impact of the COVID-19 pandemic on the operations of our stores and
we used projections that were based on multiple
probability-weighted scenarios, assuming that our stores will
gradually open throughout the second quarter of fiscal 2020 but
that consumer retail spending will remain substantially curtailed
for a period of time. As a result, we recorded an impairment
charge of $16.3 million for the first quarter of fiscal 2020.
The impairment charge included approximately $12.5 million for the
write-down of certain right-of-use assets, related to leases where
the carrying value exceeded fair value, and $3.8 million for the
write-down of property and equipment, related to stores where the
carrying value exceeded fair value. There remains uncertainty
regarding the impact of the COVID-19 pandemic on our future results
of our operations, which could result in additional
impairments.
Net Loss
For the first quarter of fiscal 2020, we had a net loss of
$(41.7) million, or $(0.82) per diluted share, compared with a net
loss of $(3.1) million, or $(0.06) per diluted share, for the first
quarter of fiscal 2019.
On a non-GAAP basis, adjusting for the impairment of assets of
$16.3 million in the first quarter of fiscal 2020 and CEO
transition costs of $0.7 million in the first quarter of fiscal
2019, and a normalized tax rate of 26% for both periods, the
adjusted net loss for the first quarter of fiscal 2020 was ($0.37)
per diluted share, as compared to an adjusted net loss of ($0.04)
per diluted share for the first quarter of fiscal 2019.
Adjusted EBITDA
Adjusted earnings before interest, taxes, depreciation and
amortization and excluding CEO transition costs and impairment of
assets, if any, (Adjusted EBITDA), a non-GAAP measure, for the
first quarter of fiscal 2020 were $(18.9) million, compared to $4.8
million for the first quarter of fiscal 2019.
Cash Flow
Cash flow used for operations for the first quarter of fiscal
2020 was $(16.8) million as compared to $(16.5) million for the
first quarter of fiscal 2019 and free cash flow was $(18.4) million
for the first quarter of fiscal 2020 as compared to $(20.2) million
for the first quarter of fiscal 2019.
Preserving liquidity was our primary financial goal this
quarter. In addition to amending our credit facility, we also
entered into several short-term promissory notes with merchandise
vendors and are proactively working with landlords on rent
relief. We have eliminated costs where possible and have
reduced the majority of our capital spending, unless such spending
is necessary to our immediate business needs. Our capital
expenditures for the first three months of fiscal 2020 were $1.6
million as compared to $3.7 million for the same period last
year.
|
|
For the three months ended |
|
(in millions) |
|
May 2, 2020 |
|
|
May 4, 2019 |
|
Cash flow from operating
activities (GAAP basis) |
|
$ |
(16.8 |
) |
|
$ |
(16.5 |
) |
Capital expenditures,
infrastructure projects |
|
|
(1.2 |
) |
|
|
(2.0 |
) |
Capital expenditures for DXL
stores |
|
|
(0.4 |
) |
|
|
(1.7 |
) |
Free Cash Flow
(non-GAAP basis) |
|
$ |
(18.4 |
) |
|
$ |
(20.2 |
) |
Non-GAAP Measures
Adjusted EBITDA, adjusted net loss, adjusted net loss per
diluted share and free cash flow are non-GAAP financial measures.
Please see “Non-GAAP Measures” below and reconciliations of these
non-GAAP measures to the comparable GAAP measures that follow in
the tables below.
Balance Sheet & Liquidity
To provide financial flexibility in the near-term, in March
2020, we drew $30.0 million under our credit facility. Then,
in April 2020, we amended the credit facility, which among other
things: increased our borrowing base by delaying the step-down in
the FILO advance rate until December 2020; lowered the loan cap
from 12.5% to 10.0% and, modified the agreement to allow the
Company the ability to enter into promissory notes with merchandise
vendors, up to an aggregate of $15.0 million. Interest rates
under the revolving facility and the FILO loan were increased by
150 basis points.
At the end of the first quarter of fiscal 2020, we had a cash
balance of $26.1 million, total debt of $96.5 million and remaining
availability under our credit facility of $16.8 million.
As of May 2, 2020, our inventory decreased approximately $4.0
million to $108.3 million, as compared to $112.3 million at May 4,
2019. In early March, we began reacting to the pandemic with
respect to inventory by ultimately cancelling during the quarter
approximately $148 million, at retail, of open orders for fiscal
2020. During the first quarter of fiscal 2020, through our
direct business, we accelerated our promotional activity to sell
through spring merchandise that had been slated for the stores.
With respect to the remainder of fiscal 2020, we expect to be
responsive to business changes but expect that our fall inventory
buys will be below fiscal 2019 levels. Our objective is to maintain
a healthy inventory, which will include narrowing our assortment
while also continuing to manage clearance levels. At May 2, 2020,
our clearance inventory represented 11.5% of our total inventory,
as compared to 10.6% at May 4, 2019.
Retail Store Information
Total retail square footage has remained relatively constant
since the end of fiscal 2017:
|
Year End 2017 |
|
Year End 2018 |
|
Year End 2019 |
|
At May 2, 2020 |
|
|
# ofStores |
|
Sq Ft.(000’s) |
|
# ofStores |
|
Sq Ft.(000’s) |
|
# ofStores |
|
Sq Ft.(000’s) |
|
# ofStores |
|
Sq Ft.(000’s) |
|
DXL retail |
|
212 |
|
|
1,665 |
|
|
216 |
|
|
1,684 |
|
|
228 |
|
|
1,729 |
|
|
228 |
|
|
1,729 |
|
DXL outlets |
|
14 |
|
|
72 |
|
|
15 |
|
|
78 |
|
|
17 |
|
|
82 |
|
|
17 |
|
|
82 |
|
CMXL retail |
|
78 |
|
|
268 |
|
|
66 |
|
|
221 |
|
|
50 |
|
|
164 |
|
|
50 |
|
|
164 |
|
CMXL outlets |
|
33 |
|
|
103 |
|
|
30 |
|
|
91 |
|
|
28 |
|
|
85 |
|
|
26 |
|
|
79 |
|
Rochester Clothing |
|
5 |
|
|
51 |
|
|
5 |
|
|
51 |
|
|
- |
|
|
- |
|
|
- |
|
- |
|
Total |
|
342 |
|
|
2,159 |
|
|
332 |
|
|
2,125 |
|
|
323 |
|
|
2,060 |
|
|
321 |
|
|
2,054 |
|
E-Commerce Information
The Company distributes its licensed branded and private label
products directly to consumers through its stores, website and
third-party marketplaces. E-commerce sales, which we also
refer to as direct sales, are defined as sales that originate
online, whether through our website, at the store level or through
a third-party marketplace. With all of our stores closing mid-way
through the first quarter of fiscal 2020 and consumer spending
down, our e-commerce business played a vital role in enabling us to
continue to operate and engage with our customers. For the first
quarter of fiscal 2020, our direct sales increased to 41.4% of
retail segment sales as compared to 21.6% for the first quarter of
fiscal 2019. Although we are planning to open our stores
gradually during the second quarter of fiscal 2020, we expect that
our direct business will continue to be a critical component of how
we navigate through the next several months.
Conference Call
The Company will hold a conference call to review its financial
results today, June 4, 2020 at 9:00 a.m. ET. To listen to the live
webcast, visit the "Investor Relations" section of the Company's
website. The live call also can be accessed by dialing: (877)
930-1064. Please reference conference ID: 5158296.
An archived version of the webcast may be accessed by visiting the
"Events" section of the Company's website for up to one year.
During the conference call, the Company may discuss and answer
questions concerning business and financial developments and
trends. The Company’s responses to questions, as well as other
matters discussed during the conference call, may contain or
constitute information that has not been disclosed previously.
Non-GAAP Measures
In addition to financial measures prepared in accordance with
U.S. generally accepted accounting principles (“GAAP”), this press
release contains non-GAAP financial measures, including adjusted
EBITDA, adjusted net loss, adjusted net loss per diluted share and
free cash flow. The presentation of these non-GAAP measures is not
in accordance with GAAP, and should not be considered superior to
or as a substitute for net loss, net loss per diluted share or cash
flows from operating activities or any other measure of performance
derived in accordance with GAAP. In addition, not all companies
calculate non-GAAP financial measures in the same manner and,
accordingly, the non-GAAP measures presented in this release may
not be comparable to similar measures used by other companies. The
Company believes the inclusion of these non-GAAP measures help
investors gain a better understanding of the Company’s performance,
especially when comparing such results to previous periods, and
that they are useful as an additional means for investors to
evaluate the Company's operating results, when reviewed in
conjunction with the Company's GAAP financial statements.
Reconciliations of these non-GAAP measures to their comparable GAAP
measures are provided in the tables below.
The Company believes that adjusted EBITDA (calculated as
earnings before interest, taxes, depreciation and amortization and
excluding CEO transition costs and any asset impairment charges) is
useful to investors in evaluating its performance and is a key
metric to measure profitability and economic
productivity.
The Company has fully reserved against its deferred tax assets
and, therefore, its net loss is not reflective of earnings assuming
a “normal” tax position. In addition, we have added back charges
for costs associated with the CEO transition and asset impairment
charges, if applicable, because it provides comparability of
results without these charges. Adjusted net loss provides
investors with a useful indication of the financial performance of
the business, on a comparative basis, assuming a normalized
effective tax rate of 26%.
Free cash flow is a metric that management uses to monitor
liquidity. Management believes this metric is important to
investors because it demonstrates the Company’s ability to
strengthen liquidity while supporting its capital projects and new
store growth. Free cash flow is calculated as cash flow from
operating activities, less capital expenditures and excludes the
mandatory and discretionary repayment of debt.
About Destination XL Group, Inc.
Destination XL Group, Inc. is the largest retailer of men’s
clothing in sizes XL and up, with operations throughout the United
States as well as in Toronto, Canada. In addition to DXL Big + Tall
retail and outlet stores, subsidiaries of Destination XL Group,
Inc. also operate Casual Male XL retail and outlet stores, and an
e-commerce site, DXL.com. DXL.com offers a multi-channel
solution similar to the DXL store experience with the most
extensive selection of online products available anywhere for Big +
Tall men. The Company is headquartered in Canton, Massachusetts,
and its common stock is listed on the NASDAQ Global Market under
the symbol "DXLG." For more information, please visit the
Company's investor relations website: https://investor.dxl.com.
Forward-Looking Statements Certain statements
and information contained in this press release constitute
forward-looking statements under the federal securities laws,
including statements regarding the Company’s ability to withstand
the impact of the COVID 19 pandemic on the Company’s business and
results in fiscal 2020 and its ability to manage through the
pandemic, including its efforts to restructure and reduce costs,
manage inventory, negotiate rent concessions or rent relief from
its landlords, and maintain sufficient liquidity. The
discussion of forward-looking information requires management of
the Company to make certain estimates and assumptions regarding the
Company's strategic direction and the effect of such plans on the
Company's financial results. The Company's actual results and the
implementation of its plans and operations may differ materially
from forward-looking statements made by the Company. The Company
encourages readers of forward-looking information concerning the
Company to refer to its filings with the Securities and Exchange
Commission, including without limitation, its Annual Report on Form
10-K filed on March 19, 2020, its Quarterly Reports on Form 10-Q
and other filings with the Securities and Exchange Commission that
set forth certain risks and uncertainties that may have an impact
on future results and direction of the Company, including risks
relating to the COVID-19 pandemic and its impact on the Company’s
results of operations, the Company’s execution of its DXL strategy
and ability to grow its market share, predict customer tastes and
fashion trends, forecast sales growth trends and compete
successfully in the United States men’s big and tall apparel
market.
Forward-looking statements contained in this press release speak
only as of the date of this release. Subsequent events or
circumstances occurring after such date may render these statements
incomplete or out of date. The Company undertakes no obligation and
expressly disclaims any duty to update such statements.
DESTINATION XL GROUP, INC. |
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(In thousands, except per share data) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
|
May 2, 2020 |
|
|
May 4, 2019 |
|
Sales |
|
$ |
57,227 |
|
|
$ |
112,973 |
|
Cost of goods sold including
occupancy |
|
|
44,013 |
|
|
|
63,560 |
|
Gross profit |
|
|
13,214 |
|
|
|
49,413 |
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
32,112 |
|
|
|
44,611 |
|
CEO transition costs |
|
|
— |
|
|
|
702 |
|
Impairment of assets |
|
|
16,335 |
|
|
|
— |
|
Depreciation and amortization |
|
|
5,732 |
|
|
|
6,338 |
|
Total expenses |
|
|
54,179 |
|
|
|
51,651 |
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(40,965 |
) |
|
|
(2,238 |
) |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(741 |
) |
|
|
(864 |
) |
|
|
|
|
|
|
|
|
|
Loss before provision
(benefit) for income taxes |
|
|
(41,706 |
) |
|
|
(3,102 |
) |
Provision (benefit) for income
taxes |
|
|
20 |
|
|
|
(21 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(41,726 |
) |
|
$ |
(3,081 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share - basic and
diluted |
|
$ |
(0.82 |
) |
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average number of
common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
50,758 |
|
|
|
49,602 |
|
Diluted |
|
|
50,758 |
|
|
|
49,602 |
|
DESTINATION XL GROUP, INC. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
May 2, 2020, February 1, 2020 and May 4, 2019 |
|
(In thousands) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 2, |
|
|
February 1, |
|
May 4, |
|
|
|
2020 |
|
|
2020 |
|
2019 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
26,147 |
|
|
$ |
4,338 |
|
$ |
6,783 |
|
Inventories |
|
|
108,325 |
|
|
|
102,420 |
|
|
112,346 |
|
Other current assets |
|
|
6,901 |
|
|
|
17,102 |
|
|
15,496 |
|
Property and equipment,
net |
|
|
69,645 |
|
|
|
78,279 |
|
|
89,477 |
|
Operating lease right-of-use
assets |
|
|
165,528 |
|
|
|
186,413 |
|
|
209,255 |
|
Intangible assets |
|
|
1,150 |
|
|
|
1,150 |
|
|
1,150 |
|
Other assets |
|
|
609 |
|
|
|
1,215 |
|
|
3,354 |
|
Total assets |
|
$ |
378,305 |
|
|
$ |
390,917 |
|
$ |
437,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
31,861 |
|
|
$ |
31,763 |
|
$ |
23,409 |
|
Accrued expenses and other
liabilities |
|
|
21,024 |
|
|
|
23,390 |
|
|
24,951 |
|
Operating leases |
|
|
213,555 |
|
|
|
223,227 |
|
|
248,836 |
|
Long-term debt |
|
|
14,827 |
|
|
|
14,813 |
|
|
14,771 |
|
Borrowings under credit
facility |
|
|
79,532 |
|
|
|
39,301 |
|
|
64,265 |
|
Stockholders' equity |
|
|
17,506 |
|
|
|
58,423 |
|
|
61,629 |
|
Total liabilities and stockholders' equity |
|
$ |
378,305 |
|
|
$ |
390,917 |
|
$ |
437,861 |
|
CERTAIN COLUMNS IN THE FOLLOWING TABLES MAY NOT FOOT DUE TO
ROUNDING |
|
GAAP TO NON-GAAP RECONCILIATION OF ADJUSTED NET
LOSS |
AND ADJUSTED NET LOSS PER DILUTED SHARE |
(unaudited) |
|
|
|
For the three months ended |
|
|
|
May 2, 2020 |
|
|
May 4, 2019 |
|
|
|
$ |
|
|
Per dilutedshare |
|
|
$ |
|
|
Per dilutedshare |
|
(in thousands, except per
share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (GAAP basis) |
|
$ |
(41,726 |
) |
|
$ |
(0.82 |
) |
|
$ |
(3,081 |
) |
|
$ |
(0.06 |
) |
Adjust: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CEO transition costs |
|
|
- |
|
|
|
|
|
|
|
702 |
|
|
|
|
|
Impairment of assets |
|
|
16,335 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
Add back actual income tax
provision (benefit) |
|
|
20 |
|
|
|
|
|
|
|
(21 |
) |
|
|
|
|
Add income tax benefit,
assuming a normal tax rate of 26% |
|
|
6,596 |
|
|
|
|
|
|
|
624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss (non-GAAP
basis) |
|
$ |
(18,775 |
) |
|
$ |
(0.37 |
) |
|
$ |
(1,776 |
) |
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding on a
diluted basis |
|
|
|
|
|
|
50,758 |
|
|
|
|
|
|
|
49,602 |
|
GAAP TO
NON-GAAP RECONCILIATION OF ADJUSTED EBITDA |
(unaudited) |
|
|
|
For the three months ended |
|
|
|
May 2, 2020 |
|
|
May 4, 2019 |
|
(in millions) |
|
|
|
|
|
|
|
|
Net loss (GAAP basis) |
|
$ |
(41.7 |
) |
|
$ |
(3.1 |
) |
Add back: |
|
|
|
|
|
|
|
|
CEO transition costs |
|
|
- |
|
|
|
0.7 |
|
Impairment of assets |
|
|
16.3 |
|
|
|
- |
|
Provision (benefit) for income taxes |
|
|
- |
|
|
|
- |
|
Interest expense |
|
|
0.7 |
|
|
|
0.9 |
|
Depreciation and amortization |
|
|
5.7 |
|
|
|
6.3 |
|
Adjusted EBITDA (non-GAAP basis) |
|
$ |
(18.9 |
) |
|
$ |
4.8 |
|
GAAP TO NON-GAAP RECONCILIATION OF FREE CASH
FLOW |
(unaudited) |
|
|
|
For the three months ended |
|
(in millions) |
|
May 2, 2020 |
|
|
May 4, 2019 |
|
Cash flow from operating
activities (GAAP basis) |
|
$ |
(16.8 |
) |
|
$ |
(16.5 |
) |
Capital expenditures,
infrastructure projects |
|
|
(1.2 |
) |
|
|
(2.0 |
) |
Capital expenditures for DXL
stores |
|
|
(0.4 |
) |
|
|
(1.7 |
) |
Free Cash Flow
(non-GAAP basis) |
|
$ |
(18.4 |
) |
|
$ |
(20.2 |
) |
|
|
|
|
|
|
|
|
|
Investor Contact:
ICR, Inc.
Tom Filandro
646-277-1235
Tom.Filandro@icrinc.com
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