JOE'S JEANS INC.

CIK:0000844143|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Net sales	$ 712,429	$ 39,830	$ 1,664,533	$ 114,614
Cost of goods sold	534,172	22,671	1,255,678	66,774
Gross profit	178,257	17,159	408,855	47,840
Operating expenses
Selling, general and administrative	99,318	25,029	315,450	58,992
Depreciation and amortization	25,121	1,378	71,692	4,252
Other operating expense, net	14,121		48,963
Total operating expenses	138,560	26,407	436,105	63,244
Operating income (loss)	39,697	(9,248)	(27,250)	(15,404)
Other expense, net
Interest expense	48,808	2,462	141,696	7,097
Other (income) expense, net	(182)	22	(426)	124
Total other expense, net	48,626	2,484	141,270	7,221
Loss before income taxes	(8,929)	(11,732)	(168,520)	(22,625)
Income tax provision (benefit)	50	(1,151)	1,574	(2,275)
Net loss	(8,979)	(10,581)	(170,094)	(20,350)
Net loss attributable to common stockholders	(8,979)	(12,473)	(170,094)	(25,898)
Net loss	(8,979)	(10,581)	(170,094)	(20,350)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	(528)	(4)	(987)	137
Other comprehensive income (loss)	(528)	(4)	(987)	137
Comprehensive loss	$ (9,507)	$ (10,585)	$ (171,081)	$ (20,213)
Loss per common share - basic
Loss per common share - basic (in dollars per share)	$ (0.15)	$ (0.89)	$ (2.90)	$ (1.87)
Loss per common share - diluted
Loss per common share - diluted (in dollars per share)	$ (0.15)	$ (0.89)	$ (2.90)	$ (1.87)
Weighted average shares outstanding
Basic (in shares)	58,736	14,085	58,638	13,873
Diluted (in shares)	58,736	14,085	58,638	13,873

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss			$ (170,094)	$ (20,350)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	$ 25,121	$ 1,378	71,692	4,252
Amortization of deferred financing costs and discounts			14,891	896
Amortization of operating lease right-of-use assets			20,077
Paid-in-kind interest			16,575	1,300
Stock-based compensation			8,673	2,121
Deferred taxes			(446)	(2,577)
Amortization of inventory step up			9,546
Other non-cash adjustments			611	461
Changes in operating assets and liabilities:
Accounts receivable, net			(539,631)	2,439
Operating lease liability			(18,108)
Inventories			(88,223)	(2,149)
Prepaid expenses and other assets			(39,234)	475
Accounts payable and accrued expenses			184,450	9,534
Other liabilities			(4,229)	125
Net cash used in operating activities			(533,450)	(3,473)
CASH FLOWS FROM INVESTING ACTIVITIES
Collection of deferred purchase price of sold receivables			499,527
Termination fees paid on leases			(346)
Purchases of property and equipment			(10,074)	(976)
Net cash provided by (used in) investing activities			489,107	(976)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt			(7,256)	(2,188)
Proceeds from line of credit, net			46,045	2,247
Repayment of finance leases			(2,561)
Payment of deferred financing costs			(1,500)
Taxes paid in lieu of shares issued for stock-based compensation			(415)	(428)
Net cash provided by (used in) financing activities			34,313	(369)
Effect of exchange rate changes on cash and cash equivalents			(503)	82
NET CHANGE IN CASH AND CASH EQUIVALENTS			(10,533)	(4,736)
CASH AND CASH EQUIVALENTS, at beginning of period			29,519	8,250	$ 8,250
CASH AND CASH EQUIVALENTS, at end of period	$ 18,986	$ 3,514	18,986	3,514	$ 29,519
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid			108,548	6,624
Income taxes paid			138	172
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Unpaid purchases of property and equipment			368	58
Beneficial interest obtained in exchange for securitized trade receivables			642,661
Conversion of short-term convertible notes				$ 13,764
Additions to operating lease liabilities			$ 241,951

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 18,986	$ 29,519
Accounts receivable, net	18,197	27,910
Sold receivables, net	85,450	33,825
Inventories	443,303	342,952
Prepaid expenses and other current assets	83,437	48,378
Total current assets	649,373	482,584
Property and equipment, net	91,478	93,044
Goodwill	356,814	376,132
Intangible assets, net	838,690	897,470
Operating lease right-of-use assets	206,096
Other assets	12,222	9,725
Total assets	2,154,673	1,858,955
Current liabilities
Accounts payable and accrued expenses	707,069	525,863
Current portion of operating lease liabilities	28,059
Current portion of long-term debt	28,219	11,287
Revolving credit facilities	46,360	315
Total current liabilities	809,707	537,465
Convertible notes	39,965	36,235
Long-term debt, net of current portion	1,197,636	1,195,297
Operating lease liabilities, net of current portion	186,680
Other non-current liabilities	131	6,581
Total liabilities	2,234,119	1,775,578
Commitments and contingencies
Equity (Deficit)
Common stock, $0.10 par value: 100,000 shares authorized, 58,738 and 58,364 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	5,873	5,836
Additional paid-in capital	226,461	218,240
Accumulated other comprehensive (loss) income	(500)	487
Accumulated deficit	(311,280)	(141,186)
Total equity (deficit)	(79,446)	83,377
Total liabilities and equity	$ 2,154,673	$ 1,858,955