MENS WEARHOUSE INC

CIK:0000884217|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) EARNINGS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019
Net sales:
Total net sales	$ 286,703	$ 724,662
Cost of sales:
Total cost of sales	257,017	419,787
Gross margin:
Total gross margin	29,686	304,875
Advertising expense	22,747	44,669
Selling, general and administrative expenses	154,082	231,018
Goodwill and intangible asset impairment charges	167,966
Asset impairment charges	26,319	184
Gain on sale of trademarks, net	(82,690)
Operating (loss) income	(258,738)	29,004
Interest income	59	96
Interest expense	(17,726)	(18,663)
(Loss) earnings before income taxes	(276,405)	10,437
(Benefit) provision for income taxes	(6,517)	3,957
Net (loss) earnings from continuing operations	(269,888)	6,480
Earnings from discontinued operations, net of tax		662
Net (loss) earnings	$ (269,888)	$ 7,142
Net (loss) earnings from continuing operations per common share:
Basic (in dollars per share)	$ (5.55)	$ 0.13
Diluted (in dollars per share)	(5.55)	0.13
Net earnings from discontinued operations per common share:
Basic (in dollars per share)		0.01
Diluted (in dollars per share)		0.01
Net (loss) earnings per common share:
Basic (in dollars per share)	(5.55)	0.14
Diluted (in dollars per share)	$ (5.55)	$ 0.14
Weighted-average common shares outstanding:
Basic (in shares)	48,596	50,280
Diluted (in shares)	48,596	50,587
Retail clothing product
Net sales:
Total net sales	$ 249,142	$ 594,779
Cost of sales:
Total cost of sales	131,892	269,191
Gross margin:
Total gross margin	117,250	325,588
Rental services
Net sales:
Total net sales	22,253	93,740
Cost of sales:
Total cost of sales	4,674	13,017
Gross margin:
Total gross margin	17,579	80,723
Total alteration and other services
Net sales:
Total net sales	15,308	36,143
Cost of sales:
Total cost of sales	19,338	33,847
Gross margin:
Total gross margin	(4,030)	2,296
Occupancy costs
Cost of sales:
Total cost of sales	101,113	103,732
Gross margin:
Total gross margin	$ (101,113)	$ (103,732)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) earnings	$ (269,888)	$ 7,142
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities:
Depreciation and amortization	25,511	26,695
Non-cash lease expense	48,675	49,969
Rental product amortization	2,285	8,348
Goodwill and intangible asset impairment charges	167,966
Asset impairment charges	26,319	184
Amortization of deferred financing costs	447	486
Gain on sale of trademarks, net	(82,690)
Gain on disposition of assets, net	(10)
Share-based compensation	1,967	2,398
Deferred tax expense	23,931	1,599
Other	50	85
Changes in operating assets and liabilities:
Accounts receivable	20,692	(7,504)
Inventories	(40,304)	(44,900)
Rental product	(9,759)	(12,831)
Other assets	(24,062)	(269)
Accounts payable, accrued expenses and other current liabilities	17,494	30,872
Income taxes payable	(3,416)	(28)
Operating lease and other liabilities	(26,572)	(50,452)
Net cash (used in) provided by operating activities	(121,364)	11,794
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(9,003)	(21,691)
Proceeds from sale of trademarks	115,000
Proceeds from divestiture of business, net	5,944
Proceeds from sales of property and equipment	2,082
Net cash provided by (used in) investing activities	114,023	(21,691)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on term loan	(4,500)	(4,870)
Proceeds from asset-based revolving credit facility	357,500	399,500
Payments on asset-based revolving credit facility	(22,500)	(399,500)
Cash dividends paid	(112)	(9,590)
Proceeds from issuance of common stock	162	427
Tax payments related to vested deferred stock units	(65)	(940)
Net cash provided by (used in) financing activities	330,485	(14,973)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	1,056	(812)
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	324,200	(25,682)
Cash, cash equivalents and restricted cash at beginning of period	14,420	55,431
Cash, cash equivalents and restricted cash at end of period	$ 338,620	$ 29,749

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	May 02, 2020	Feb. 01, 2020	May 04, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 244,170	$ 14,420	$ 12,928
Restricted cash	94,450
Accounts receivable, net	13,242	39,973	40,760
Inventories	734,379	696,657	767,694
Assets held for sale	2,944	34,935
Other current assets	72,258	49,130	46,187
Current assets - discontinued operations			167,119
Total current assets	1,161,443	835,115	1,034,688
PROPERTY AND EQUIPMENT, net	355,324	395,812	413,635
OPERATING LEASE RIGHT-OF-USE ASSETS	842,088	880,291	944,531
RENTAL PRODUCT, net	99,826	92,897	103,895
GOODWILL		79,271	78,964
INTANGIBLE ASSETS, net	26,896	116,843	146,983
OTHER ASSETS	14,838	18,730	6,917
NON-CURRENT ASSETS - DISCONTINUED OPERATIONS			35,840
TOTAL ASSETS	2,500,415	2,418,959	2,765,453
CURRENT LIABILITIES:
Accounts payable	248,684	183,897	202,095
Accrued expenses and other current liabilities	236,205	246,110	300,689
Current portion of operating lease liabilities	209,434	186,304	180,492
Income taxes payable		3,416	13,949
Current portion of long-term debt	1,434,064	9,000	9,000
Current liabilities - discontinued operations			37,022
Total current liabilities	2,128,387	628,727	743,247
LONG-TERM DEBT, net		1,094,398	1,151,196
OPERATING LEASE LIABILITIES	689,264	726,327	795,837
DEFERRED TAXES, net AND OTHER LIABILITIES	61,089	67,813	64,791
NON-CURRENT LIABILITIES - DISCONTINUED OPERATIONS			14,428
Total liabilities	2,878,740	2,517,265	2,769,499
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' DEFICIT:
Preferred stock
Common stock	510	508	504
Capital in excess of par	516,459	514,397	507,039
Accumulated deficit	(838,553)	(568,697)	(470,411)
Accumulated other comprehensive loss	(46,741)	(34,514)	(41,178)
Treasury stock	(10,000)	(10,000)
Total shareholders' deficit	(378,325)	(98,306)	(4,046)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$ 2,500,415	$ 2,418,959	$ 2,765,453