hhgregg, Inc.

CIK:0001396279|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Net sales	$ 452,791	$ 593,219	$ 1,330,863	$ 1,521,158
Cost of goods sold	353,011	438,189	969,187	1,093,126
Gross profit	99,780	155,030	361,676	428,032
Selling, general and administrative expenses	116,077	116,533	341,812	341,116
Net advertising expense	26,005	34,168	70,637	83,476
Depreciation and amortization expense	7,013	8,355	21,059	25,115
Asset impairment charges	7,850	20,910	9,238	20,910
Loss from operations	(57,165)	(24,936)	(81,070)	(42,585)
Other expense (income):
Interest expense	1,106	727	2,827	1,966
Interest income	(2)	(2)	(24)	(9)
Total other expense	1,104	725	2,803	1,957
Loss before income taxes	(58,269)	(25,661)	(83,873)	(44,542)
Income taxes	0	1,252	0	1,252
Net loss	$ (58,269)	$ (26,913)	$ (83,873)	$ (45,794)
Net loss per share
Basic (in dollars per share)	$ (2.10)	$ (0.97)	$ (3.02)	$ (1.65)
Diluted (in dollars per share)	$ (2.10)	$ (0.97)	$ (3.02)	$ (1.65)
Weighted average shares outstanding-basic (shares)	27,806,460	27,707,978	27,783,216	27,698,789
Weighted average shares outstanding-diluted (shares)	27,806,460	27,707,978	27,783,216	27,698,789

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net loss	$ (83,873)	$ (45,794)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	21,059	25,115
Amortization of deferred financing costs	378	404
Stock-based compensation	1,169	2,423
Loss on early extinguishment of debt	126	0
Loss on sales of property and equipment	147	60
Asset impairment charges	9,238	20,910
Tenant allowances received from landlords	0	812
Changes in operating assets and liabilities:
Accounts receivable—trade	(9,547)	(3,036)
Accounts receivable—other	(4,827)	(1,512)
Merchandise inventories	45,739	(82,854)
Income tax receivable	1,062	4,864
Prepaid expenses and other assets	923	(352)
Accounts payable	3,681	62,456
Customer deposits	18,735	(557)
Income tax payable	0	1,129
Accrued liabilities	(649)	11,148
Deferred rent	(8,663)	(6,409)
Other long-term liabilities	4,606	(1,010)
Net cash used in operating activities	(696)	(12,203)
Cash flows from investing activities:
Purchases of property and equipment	(18,533)	(10,406)
Proceeds from sales of property and equipment	69	80
Purchases of corporate-owned life insurance	(210)	(160)
Net cash used in investing activities	(18,674)	(10,486)
Cash flows from financing activities:
Net borrowings on line of credit	30,250	0
Net repayments on inventory financing facility	(11,191)	(676)
Payment of financing costs	(1,439)	0
Net cash provided by (used in) financing activities	17,620	(676)
Net decrease in cash and cash equivalents	(1,750)	(23,365)
Cash and cash equivalents
Beginning of period	3,703	30,401
End of period	1,953	7,036
Supplemental disclosure of cash flow information:
Interest paid	2,496	1,572
Income taxes received	(1,067)	(4,721)
Capital expenditures included in accounts payable	$ 338	$ 503

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Current assets:
Cash	$ 1,953	$ 3,703
Accounts receivable—trade, less allowances of $11 and $5 as of December 31, 2016 and March 31, 2016, respectively	20,653	11,106
Accounts receivable—other	19,764	14,937
Merchandise inventories, net	210,820	256,559
Prepaid expenses and other current assets	5,545	6,333
Income tax receivable	68	1,130
Total current assets	258,803	293,768
Net property and equipment	74,365	87,472
Deferred financing costs, net	2,192	1,257
Other assets	2,930	2,855
Total long-term assets	79,487	91,584
Total assets	338,290	385,352
Current liabilities:
Accounts payable	99,037	107,474
Line of credit	30,250	0
Customer deposits	61,970	43,235
Accrued liabilities	42,765	43,370
Total current liabilities	234,022	194,079
Long-term liabilities:
Deferred rent	50,438	59,101
Other long-term liabilities	15,224	10,818
Total long-term liabilities	65,662	69,919
Total liabilities	299,684	263,998
Stockholders’ equity:
Preferred stock, par value $.0001; 10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2016 and March 31, 2016, respectively	0	0
Common stock, par value $.0001; 150,000,000 shares authorized; 41,303,240 and 41,204,660 shares issued; and 27,806,558 and 27,707,978 outstanding as of December 31, 2016 and March 31, 2016, respectively	4	4
Additional paid-in capital	305,450	304,325
Accumulated deficit	(116,620)	(32,747)
Common stock held in treasury at cost 13,496,682, shares as of December 31, 2016 and March 31, 2016	(150,228)	(150,228)
Total stockholders’ equity	38,606	121,354
Total liabilities and stockholders’ equity	$ 338,290	$ 385,352