TUESDAY MORNING CORP/DE

CIK:0000878726|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 01, 2022	Sep. 30, 2021
Income Statement [Abstract]
Net sales	$ 157,105	$ 176,872
Cost of sales	122,469	125,858
Gross margin	34,636	51,014
Selling, general and administrative expenses	60,523	60,277
Restructuring and impairment charges	0	2,430
Operating loss before interest, reorganization and other expense	(25,887)	(11,693)
Other income/(expense):
Interest expense	(2,027)	(1,716)
Reorganization items, net	0	(1,292)
Gain on derivative	8,780	0
Loss on debt extinguishment	(8,382)	0
Other income/(expense), net	(498)	49
Other income/(expense) total	(2,127)	(2,959)
Loss before income taxes	(28,014)	(14,652)
Income tax expense/(benefit)	149	(49)
Net loss	$ (28,163)	$ (14,603)
Net loss per common share:
Basic	$ (0.29)	$ (0.17)
Diluted	$ (0.29)	$ (0.17)
Weighted average number of common shares:
Basic	96,645	84,310
Diluted	96,645	84,310

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Oct. 01, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net loss	$ (28,163)	$ (14,603)
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Depreciation and amortization	3,315	3,397
Loss on impairment of assets	0	2,089
Amortization of financing costs and interest expense	1,157	1,267
(Gain)/loss on disposal of assets	(15)	68
Loss on extinguishment of debt	8,382	0
Gain on derivatives	(8,780)	0
Share-based compensation	1,544	1,173
Deferred income taxes	0	(118)
Construction allowances from landlords	245	426
Change in operating assets and liabilities:
Inventories	15,998	(29,092)
Prepaid and other current assets	(2,247)	(2,002)
Accounts payable	11,274	10,884
Accrued liabilities	923	(4,448)
Operating lease assets and liabilities	(5,873)	(1,875)
Other liabilities — non-current	4,589	(382)
Net cash provided by/(used) in operating activities	2,349	(33,216)
Cash flows from investing activities:
Capital expenditures	(1,315)	(1,761)
Net cash used in investing activities	(1,315)	(1,761)
Cash flows from financing activities:
Proceeds from borrowings under revolving credit facility	192,792	209,314
Repayments of borrowings under revolving credit facility	(218,628)	(198,924)
Issuance of convertible debt	35,000	0
Payment of FILO A and B facilities	(7,500)	0
Proceeds From FILO B Facility	5,000	0
Proceeds from exercise of employee stock options	0	467
Tax payments related to vested stock awards	(35)	(12)
Payments on finance leases	0	(36)
Payment of financing fees	(8,567)	0
Net cash provided by/(used in) financing activities	(1,938)	10,809
Net decrease in cash, cash equivalents and restricted cash	(904)	(24,168)
Cash and cash equivalents and restricted cash, beginning of period	7,816	28,855
Cash and cash equivalents and restricted cash, end of period	6,912	4,687
Supplemental cash flow information:
Interest paid	1,726	1,307
Income taxes paid (refunded)	42	(53)
Non-cash financing and investing activities:
Conversion of debt to 90,000,000 shares of common stock	$ 13,500	$ 0

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 01, 2022	Jul. 02, 2022
Current assets:
Cash and cash equivalents	$ 6,912	$ 7,816
Inventories	132,464	148,462
Prepaid expenses	5,477	5,811
Other current assets	3,015	1,694
Total Current Assets	147,868	163,783
Property and equipment, net	26,423	28,442
Operating lease right-of-use assets	156,705	156,945
Deferred financing costs	6,702	3,129
Other assets	3,137	1,877
Total Assets	340,835	354,176
Current liabilities:
Current portion of long term debt	313	250
Accounts payable	52,071	40,797
Accrued liabilities	35,600	33,491
Operating lease liabilities	46,390	52,258
Total Current Liabilities	134,374	126,796
Operating lease liabilities — non current	120,565	115,926
Borrowings under revolving credit facility	31,355	62,191
Long term debt (see Note 3 for amounts due to related parties)	37,443	28,730
Derivative liability	9,768	0
Other liabilities — non-current	1,497	1,546
Total Liabilities	335,002	335,189
Stockholders’ equity:
Preferred stock, par value $0.01 per share, authorized 10,000,000 shares; none issued or outstanding	0	0
Common stock, par value $0.01 per share, authorized 200,000,000 shares; 178,480,309 shares issued and 176,696,648 shares outstanding at October 1, 2022 and 87,663,769 shares issued and 85,880,108 shares outstanding at July 2, 2022	1,767	859
Additional paid-in capital	325,791	311,690
Retained deficit	(314,913)	(286,750)
Less: 1,783,661 common shares in treasury, at cost, at October 1, 2022 and at July 2, 2022, respectively	(6,812)	(6,812)
Total Stockholders’ Equity	5,833	18,987
Total Liabilities and Stockholders’ Equity	$ 340,835	$ 354,176