MATTRESS FIRM HOLDING CORP.

CIK:0001419852|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 02, 2016	Aug. 04, 2015	Aug. 02, 2016	Aug. 04, 2015
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 980,011	$ 661,064	$ 1,819,403	$ 1,223,618
Cost of sales	625,495	403,557	1,199,112	764,840
Gross profit from retail operations	354,516	257,507	620,291	458,778
Franchise fees and royalty income	1,076	1,285	2,198	2,400
Total gross profit	355,592	258,792	622,489	461,178
Operating expenses:
Sales and marketing expenses	246,367	169,121	450,404	301,017
General and administrative expenses	79,664	42,893	161,905	94,257
Intangible asset impairment charge			138,726
Loss on store closings and impairment of store assets	7,066	1,173	16,659	1,468
Total operating expenses	333,097	213,187	767,694	396,742
Income (loss) from operations	22,495	45,605	(145,205)	64,436
Other expense:
Interest expense, net	24,670	10,046	48,437	20,299
Income (loss) before income taxes	(2,175)	35,559	(193,642)	44,137
Income tax expense (benefit)	(408)	13,678	(73,207)	16,778
Net income (loss)	(1,767)	21,881	(120,435)	27,359
Net income attributable to noncontrolling interest	432		927
Net income (loss) attributable to Mattress Firm Holding Corp.	$ (2,199)	$ 21,881	$ (121,362)	$ 27,359
Basic net income (loss) per common share (in dollars per share)	$ (0.06)	$ 0.62	$ (3.27)	$ 0.78
Diluted net income (loss) per common share (in dollars per share)	$ (0.06)	$ 0.61	$ (3.27)	$ 0.77
Basic weighted average shares outstanding (in shares)	37,201,842	35,188,368	37,126,890	35,167,565
Diluted weighted average shares outstanding (in shares)	37,201,842	35,600,295	37,126,890	35,584,024

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) shares in Thousands, $ in Thousands	6 Months Ended
	Aug. 02, 2016	Aug. 04, 2015
Cash flows from operating activities:
Net income (loss)	$ (120,435)	$ 27,359
Adjustments to reconcile net income to cash flows provided by operating activities:
Depreciation	43,373	28,746
Loan fee and other amortization	14,023	3,797
(Gain) loss from disposals of property and equipment	1,088	(14)
Deferred income tax expense (benefit)	(32,500)	3,766
Stock-based compensation	4,098	4,352
Intangible asset impairment	138,726
Loss on store closings and impairment of store assets	16,659	1,468
Construction allowances from landlords	6,803	5,913
Excess tax benefits associated with stock-based awards	(162)	(915)
Effects of changes in operating assets and liabilities, excluding business acquisitions:
Accounts receivable	(12,909)	(3,515)
Inventories	(7,351)	4,400
Prepaid expenses and other current assets	(48,266)	(5,952)
Other assets	(1,112)	(2,307)
Accounts payable	40,643	11,310
Accrued liabilities	29,339	9,455
Customer deposits	6,426	6,664
Other noncurrent liabilities	2,646	24,628
Net cash provided by operating activities	81,089	119,155
Cash flows from investing activities:
Purchases of property and equipment	(55,825)	(68,480)
Sales of property and equipment, net	74,262
Business acquisitions, net of cash acquired	(725,031)	119
Net cash used in investing activities	(706,594)	(68,361)
Cash flows from financing activities:
Proceeds from issuance of debt	799,100	58,000
Principal payments of debt	(160,607)	(114,302)
Debt issuance costs	(28,066)
Proceeds from issuance of common stock	25,000
Proceeds from exercise of common stock options	2,859	1,755
Excess tax benefits associated with stock-based awards	162	915
Purchase of vested stock-based awards	(284)
Distributions to noncontrolling interest partner	(850)
Net cash (used in) provided by financing activities	637,314	(53,632)
Net (decrease) increase in cash and cash equivalents	11,809	(2,838)
Cash and cash equivalents, beginning of period	1,778	13,475
Cash and cash equivalents, end of period	13,587	10,637
Cash paid for:
Interest	42,026	20,070
Income taxes	2,423	6,038
Supplemental disclosure of noncash investing and financing activity:
Capital expenditures included in accounts payable and accruals at end of period	5,450	$ 6,933
Capital leases	$ 9,546
Equity issued in acquisition	36,831

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Aug. 02, 2016	Feb. 02, 2016
Current assets:
Cash and cash equivalents	$ 13,587	$ 1,778
Accounts receivable, net	78,673	64,923
Inventories	253,105	161,190
Prepaid expenses and other current assets	126,738	55,176
Total current assets	472,103	283,067
Property and equipment, net	455,863	317,451
Intangible assets, net	99,038	214,942
Goodwill	1,490,167	826,728
Other noncurrent assets, net	22,291	16,496
Total assets	2,539,462	1,658,684
Current liabilities:
Notes payable and current maturities of long-term debt	16,284	8,664
Accounts payable	274,325	164,686
Accrued liabilities	179,592	83,869
Customer deposits	43,084	20,028
Total current liabilities	513,285	277,247
Long-term debt, net of current maturities	1,340,286	675,033
Deferred income tax liability	47,196	52,299
Other noncurrent liabilities	161,478	142,623
Total liabilities	2,062,245	1,147,202
Commitments and contingencies (Note 13)
Equity
Common stock, $0.01 par value; 120,000,000 shares authorized; 35,356,859 and 35,294,568 shares issued and outstanding at February 2, 2016; and 37,297,201 and 37,228,002 shares issued and outstanding at August 2, 2016, respectively	372	353
Additional paid-in capital	516,004	447,357
Accumulated retained earnings (deficit)	(57,590)	63,772
Total Mattress Firm Holding Corp. equity	458,786	511,482
Noncontrolling interest	18,431
Total equity	477,217	511,482
Total liabilities and equity	$ 2,539,462	$ 1,658,684