J CREW GROUP INC

CIK:0001051251|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018	Nov. 02, 2019	Nov. 03, 2018
Revenues:
Total revenues	$ 625,637	$ 622,200	$ 1,792,972	$ 1,750,223
Cost of goods sold, including buying and occupancy costs	371,095	383,762	1,115,207	1,078,976
Gross profit	254,542	238,438	677,765	671,247
Selling, general and administrative expenses	235,054	202,828	632,824	596,323
Impairment losses	8,009	2,947	12,889	9,813
Income from operations	11,479	32,663	32,052	65,111
Interest expense, net	37,304	35,141	111,949	102,524
Loss before income taxes	(25,825)	(2,478)	(79,897)	(37,413)
Provision (benefit) for income taxes	(5,968)	3,218	412	8,302
Net loss	(19,857)	(5,696)	(80,309)	(45,715)
Other comprehensive income (loss):
Reclassification of losses on cash flow hedges, net of tax, to earnings	1,735	308	2,539	1,669
Unrealized gain (loss) on cash flow hedges, net of tax	(492)	343	(3,790)	2,560
Foreign currency translation adjustments	(325)	(12)	(139)	(490)
Comprehensive loss	(18,939)	(5,057)	(81,699)	(41,976)
Net Sales
Revenues:
Total revenues	567,458	564,585	1,615,246	1,622,832
Other
Revenues:
Total revenues	$ 58,179	$ 57,615	$ 177,726	$ 127,391

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Nov. 02, 2019	Nov. 03, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (80,309)	$ (45,715)
Adjustments to reconcile to cash flows from operating activities:
Depreciation of property and equipment	59,415	67,385
Impairment losses	12,889	9,813
Amortization of deferred financing costs and debt discount	5,387	5,371
Amortization of intangible assets	3,851	5,405
Reclassification of hedging losses to earnings	2,539	2,274
Deferred income taxes	162	3,695
Share-based compensation	39	77
Foreign currency transaction gains	(124)	(230)
Changes in operating assets and liabilities:
Accounts receivable, net	(3,816)	(35,718)
Merchandise inventories, net	(94,066)	(273,493)
Prepaid expenses and other current assets	9,731	1,086
Other assets	1,522	(1,683)
Accounts payable and other	2,481	82,009
Federal and state income taxes	789	4,069
Net cash used in operating activities	(79,510)	(175,655)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(52,483)	(35,519)
Net cash used in investing activities	(52,483)	(35,519)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under the ABL Facility	147,100	148,500
Proceeds from Notes	1,003
Costs paid in connection with refinancings of debt		(74)
Principal repayments of Term Loan Facility	(26,607)	(11,752)
Net cash provided by financing activities	121,496	136,674
Effect of changes in foreign exchange rates on cash, cash equivalents and restricted cash	(32)	(706)
Decrease in cash, cash equivalents and restricted cash	(10,529)	(75,206)
Beginning balance	39,485	107,066
Ending balance	28,956	31,860
Supplemental cash flow information:
Income taxes paid	837	977
Interest paid	$ 121,106	$ 106,971

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Nov. 02, 2019	Feb. 02, 2019
Current assets:
Cash and cash equivalents	$ 28,956	$ 25,738
Restricted cash		13,747
Accounts receivable, net	44,158	40,342
Merchandise inventories, net	484,496	390,470
Prepaid expenses and other current assets	59,997	84,942
Refundable income taxes	6,978	7,331
Total current assets	624,585	562,570
Property and equipment, net	231,489	243,620
Right-of-use lease assets	493,073
Intangible assets, net	297,536	301,397
Goodwill	107,900	107,900
Other assets	4,172	6,164
Total assets	1,758,755	1,221,651
Current liabilities:
Accounts payable	274,027	259,705
Other current liabilities	251,853	244,864
Borrowings under the ABL Facility	217,900	70,800
Current portion of right-of-use lease liabilities	116,338
Due to Parent	41,376	37,462
Interest payable	8,368	23,866
Current portion of long-term debt	21,600	32,070
Total current liabilities	931,462	668,767
Long-term debt, net	1,663,806	1,673,282
Long-term right-of-use lease liabilities	468,364
Lease-related deferred credits, net		105,877
Deferred income taxes, net	17,034	16,872
Other liabilities	31,992	29,096
Total liabilities	3,112,658	2,493,894
Stockholders’ deficit:
Additional paid-in capital	733,268	733,229
Accumulated other comprehensive loss	(3,357)	(1,967)
Accumulated deficit	(2,083,814)	(2,003,505)
Total stockholders’ deficit	(1,353,903)	(1,272,243)
Total liabilities and stockholders’ deficit	$ 1,758,755	$ 1,221,651