PACIFIC SUNWEAR OF CALIFORNIA INC

CIK:0000874841|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Nov. 01, 2014	Oct. 31, 2015	Nov. 01, 2014
Income Statement [Abstract]
Net sales	$ 205,921	$ 212,292	$ 568,046	$ 595,184
Cost of goods sold, including buying, distribution and occupancy costs	154,139	155,609	421,136	432,299
Gross margin	51,782	56,683	146,910	162,885
Selling, general and administrative expenses	53,430	58,020	159,428	170,609
Operating loss	(1,648)	(1,337)	(12,518)	(7,724)
Gain on derivative liability	(2,718)	(4,881)	(27,516)	(16,540)
Interest expense, net	4,328	3,867	12,753	11,819
Income (loss) before income taxes	(3,258)	(323)	2,245	(3,003)
Income tax expense	93	146	749	362
Net income (loss)	(3,351)	(469)	1,496	(3,365)
Comprehensive income (loss)	$ (3,351)	$ (469)	$ 1,496	$ (3,365)
Net income (loss) per share:
Earnings Per Share, Basic	$ (0.05)	$ (0.01)	$ 0.02	$ (0.05)
Earnings Per Share, Diluted	$ (0.05)	$ (0.01)	$ 0.02	$ (0.05)
Weighted-average shares outstanding:
Shares used in computing basic net (loss) income per share, basic	70,082,048	69,235,168	69,777,630	69,018,319
Shares used in computing diluted net (loss) income per share, diluted	70,082,048	69,235,168	70,203,837	69,018,319

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2015	Nov. 01, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 1,496	$ (3,365)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	15,513	18,060
Asset impairment	980	3,119
Loss on disposal of property and equipment	66	122
Gain on derivative liability	(27,516)	(16,540)
Amortization of debt discount	3,024	2,239
Non-cash stock-based compensation	1,966	1,202
Change in assets and liabilities:
Inventories	(57,965)	(46,084)
Prepaid expenses and other current assets	(2,516)	(2,451)
Other assets	480	(1,600)
Accounts payable	32,565	35,603
Other current liabilities	(1,643)	7,130
Deferred lease incentives	3,456	(1,299)
Deferred rent	(157)	(513)
Other long-term liabilities	(2,420)	97
Net cash used in operating activities	(32,671)	(4,280)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, equipment and intangible assets	(12,284)	(11,320)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facility borrowings	45,000	0
Payments under credit facility borrowings	10,000	0
Proceeds from mortgage borrowings	0	618
Principal payments under mortgage borrowings	(403)	(422)
Payments for debt issuance costs	0	116
Principal payments under capital lease obligations	(632)	(344)
Proceeds from issuance of stock-based compensation	302	374
Statutory withholding payments for stock-based compensation	(551)	0
Net cash provided by financing activities	33,716	110
NET DECREASE IN CASH AND CASH EQUIVALENTS	(11,239)	(15,490)
CASH AND CASH EQUIVALENTS, beginning of period	22,588	27,769
CASH AND CASH EQUIVALENTS, end of period	11,349	12,279
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	4,585	4,656
Cash paid for income taxes	349	874
SUPPLEMENTAL DISCLOSURES OF NON-CASH TRANSACTIONS:
Property, equipment and intangible asset purchases accrued at end of period	$ 2,564	$ 975

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2015	Jan. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 11,349	$ 22,588
Inventories	139,623	81,658
Prepaid expenses	12,460	12,692
Other current assets	6,740	3,992
Total current assets	170,172	120,930
Property and equipment, net	87,850	88,751
Deferred income taxes	6,034	6,034
Intangible assets, net	10,498	11,069
Other assets	24,299	25,495
TOTAL ASSETS	298,853	252,279
CURRENT LIABILITIES:
Accounts payable	69,340	36,775
Line of credit	35,000	0
Derivative liability	932	28,448
Other current liabilities	48,535	48,183
Total current liabilities	153,807	113,406
LONG-TERM LIABILITIES:
Deferred lease incentives	14,260	10,804
Deferred rent	14,537	14,694
Long-term debt	97,023	94,424
Other liabilities	25,429	28,368
Total long-term liabilities	$ 151,249	$ 148,290
Commitments and contingencies
SHAREHOLDERS’ DEFICIT:
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 1,000 shares issued and outstanding, respectively	$ 0	$ 0
Common stock, $0.01 par value; 170,859,375 shares authorized; 70,085,318 and 69,265,844 shares issued and outstanding, respectively	701	693
Additional paid-in capital	26,094	24,384
Accumulated deficit	(32,998)	(34,494)
Total shareholders’ deficit	(6,203)	(9,417)
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT	$ 298,853	$ 252,279