WET SEAL INC

CIK:0000863456|SEC Filings

Discontinued Operations (Tables)

9 Months Ended

Nov. 01, 2014

Discontinued Operations and Disposal Groups [Abstract]

Schedule of operating results of discontinued operations

The operating results of discontinued operations for Arden B included in the accompanying condensed consolidated statements of operations are as follows:



	13 Weeks Ended						39 Weeks Ended
	November 1, 2014			November 2, 2013			November 1, 2014			November 2, 2013
Net Sales	$	441		$	12,786		$	26,314		$	47,113
Income (loss) before income taxes	77			(2,427		)	(5,501		)	(1,379		)
(Benefit) provision for income taxes	(4		)	1			10			12
Income (loss) from discontinued operations	$	81		$	(2,428	)	$	(5,511	)	$	(1,391	)

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Nov. 01, 2014	Nov. 02, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (79,734)	$ (10,842)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	7,515	10,198
Amortization of debt discount	1,628	0
Amortization of premium on investments	6	123
Amortization of deferred financing costs	449	81
Gain on warrants and derivatives liabilities	(4,630)	0
Gain on settlement of SERP liability	(696)	0
Gain on termination of Arden B loyalty program	(237)	0
Loss on disposal of equipment and leasehold improvements	202	83
Asset impairment	32,643	6,919
Stock-based compensation	1,609	1,212
Changes in operating assets and liabilities:
Income tax receivables	141	145
Other receivables	1,681	79
Merchandise inventories	(369)	(8,799)
Prepaid expenses and other current assets	30	73
Other non-current assets	1,549	29
Accounts payable and accrued liabilities	1,334	(3,295)
Deferred rent	(1,950)	576
Other long-term liabilities	(1,156)	(112)
Net cash used in operating activities	(39,985)	(3,530)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment and leasehold improvements	(9,331)	(15,853)
Proceeds from disposal of equipment and leasehold improvements	23	0
Investment in marketable securities	0	(9,500)
Proceeds from maturity of marketable securities	7,380	41,259
Net cash (used in) provided by investing activities	(1,928)	15,906
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	0	747
Repurchase of common stock	(128)	(25,318)
Payment of deferred financing costs	(3,273)	0
Proceeds from issuance of senior convertible note	27,000	0
Payment of principal on senior convertible note	(1,400)	0
Net cash provided by (used in) financing activities	22,199	(24,571)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(19,714)	(12,195)
CASH AND CASH EQUIVALENTS, beginning of period	38,772	42,279
CASH AND CASH EQUIVALENTS, end of period	19,058	30,084
Cash paid during the period for:
Interest	1,027	57
Income taxes	220	267
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING TRANSACTIONS:
Retirement of treasury shares	140	25,726
Purchase of equipment and leasehold improvements unpaid at end of period	1,155	4,170
Initial fair value of warrants liability	3,610	0
Initial fair value of embedded derivatives liability	2,081	0
Discount on convertible note due to increase in value of embedded conversion option	$ 236	$ 0

Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Nov. 01, 2014	Feb. 01, 2014	Nov. 02, 2013
CURRENT ASSETS:
Cash and cash equivalents	$ 19,058	$ 38,772	$ 30,084
Short-term investments	0	7,386	35,812
Income tax receivables	0	141	141
Other receivables	1,549	3,230	2,680
Merchandise inventories	31,578	31,209	42,587
Prepaid expenses and other current assets	13,235	12,742	13,289
Total current assets	65,420	93,480	124,593
EQUIPMENT AND LEASEHOLD IMPROVEMENTS:
Leasehold improvements	36,864	78,097	87,970
Furniture, fixtures and equipment	47,945	60,143	65,066
Gross equipment and leasehold improvements	84,809	138,240	153,036
Less accumulated depreciation and amortization	(60,235)	(81,951)	(88,117)
Net equipment and leasehold improvements	24,574	56,289	64,919
OTHER ASSETS:
Other assets	2,891	1,970	2,003
Total other assets	2,891	1,970	2,003
TOTAL ASSETS	92,885	151,739	191,515
CURRENT LIABILITIES:
Current portion of convertible debt, net of discount of $2,808, at November 1, 2014	7,342	0	0
Accounts payable – merchandise	20,372	18,530	24,623
Accounts payable – other	7,189	8,814	11,361
Accrued liabilities	20,880	20,704	24,203
Current portion of deferred rent	3,632	3,508	3,909
Total current liabilities	59,415	51,556	64,096
LONG-TERM LIABILITIES:
Warrants and embedded derivatives	1,061	0	0
Senior convertible debt, net of discount of $1,501, at November 1, 2014	13,949	0	0
Deferred rent	28,992	31,066	31,092
Other long-term liabilities	0	1,784	1,796
Total long-term liabilities	44,002	32,850	32,888
Total liabilities	103,417	84,406	96,984
STOCKHOLDERS’ (DEFICIT) EQUITY:
Paid-in capital	218,663	216,944	216,512
Accumulated deficit	(237,598)	(157,864)	(130,323)
Treasury stock, 230,444, 35,225 and 6,175 shares, at cost, at November 1, 2014, February 1, 2014, and November 2, 2013, respectively	(56)	(68)	(4)
Accumulated other comprehensive loss	0	(152)	(127)
Total stockholders’ (deficit) equity	(10,532)	67,333	94,531
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY	92,885	151,739	191,515
Common Stock Class A
STOCKHOLDERS’ (DEFICIT) EQUITY:
Common stock	8,459	8,473	8,473
Common Stock Class B
STOCKHOLDERS’ (DEFICIT) EQUITY:
Common stock	$ 0	$ 0	$ 0