HD SUPPLY, INC.

CIK:0001465264|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (HD Supply Holdings, Inc.) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Nov. 01, 2020	Nov. 03, 2019	Nov. 01, 2020	Nov. 03, 2019
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Net Sales	$ 827.5	$ 825.2	$ 2,269.0	$ 2,426.0
Cost of sales	479.2	473.2	1,311.0	1,388.4
Gross Profit	348.3	352.0	958.0	1,037.6
Operating expenses:
Selling, general, and administrative	205.7	209.3	597.6	625.9
Depreciation and amortization	17.7	15.5	52.1	45.2
Restructuring and separation	3.9	1.3	7.6	(0.4)
Total operating expenses	227.3	226.1	657.3	670.7
Operating Income	121.0	125.9	300.7	366.9
Interest expense	22.0	27.4	71.1	83.4
Loss on extinguishment & modification of debt	5.5		5.5
Other (income) expense, net	43.6		43.6
Income from Continuing Operations Before Provision for Income Taxes	49.9	98.5	180.5	283.5
Provision for income taxes	14.4	25.1	46.6	71.1
Income from Continuing Operations	35.5	73.4	133.9	212.4
Income from discontinued operations, net of tax	1,572.7	58.5	1,677.3	161.3
Net Income	1,608.2	131.9	1,811.2	373.7
Other comprehensive income (loss):
Foreign currency translation adjustment	14.7		15.0	0.2
Unrealized gain (loss) on cash flow hedge, net of tax of $(12.5), $0.1, $(7.5), and $7.1	35.6	(0.3)	21.1	(20.5)
Total Comprehensive Income	$ 1,658.5	$ 131.6	$ 1,847.3	$ 353.4
Weighted Average Common Shares Outstanding (thousands)
Basic	159,057	164,638	160,271	168,062
Diluted	159,804	165,142	160,753	168,645
Basic Earnings Per Share(1):
Income from Continuing Operations (in dollars per share)	$ 0.22	$ 0.45	$ 0.84	$ 1.26
Income from Discontinued Operations (in dollars per share)	9.89	0.36	10.47	0.96
Net Income (in dollars per share)	10.11	0.80	11.30	2.22
Diluted Earnings Per Share(1):
Income from Continuing Operations (in dollars per share)	0.22	0.44	0.83	1.26
Income from Discontinued Operations (in dollars per share)	9.84	0.35	10.43	0.96
Net Income (in dollars per share)	$ 10.06	$ 0.80	$ 11.27	$ 2.22

CONSOLIDATED STATEMENTS OF CASH FLOWS (HD Supply Holdings, Inc.) - USD ($) $ in Millions	9 Months Ended
	Nov. 01, 2020	Nov. 03, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,811.2	$ 373.7
Reconciliation of net income to net cash provided by (used in) operating activities:
Depreciation and amortization	78.2	82.7
Provision for credit losses	11.8	7.4
Non-cash interest expense	4.5	4.6
Loss on extinguishment & modification of debt	5.5
Gain on sale of business	(1,762.0)
Stock-based compensation expense	14.7	18.1
Deferred income taxes	(27.4)	101.8
Other		2.7
Changes in assets and liabilities, net of the effects of acquisitions & dispositions:
(Increase) decrease in receivables	(83.1)	(133.7)
(Increase) decrease in inventories	17.3	(34.3)
(Increase) decrease in other current assets	8.2	(2.5)
(Increase) decrease in other assets	(2.1)	0.3
Increase (decrease) in accounts payable and accrued liabilities	425.2	75.8
Increase (decrease) in other long term liabilities	21.9
Net cash provided by (used in) operating activities	523.9	496.6
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(54.6)	(89.1)
Proceeds from sales of property and equipment	0.3	2.7
Proceeds from sales of businesses, net	2,845.5
Payments for businesses acquired, net of cash acquired		(9.4)
Net cash provided by (used in) investing activities	2,791.2	(95.8)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury shares	(246.9)	(320.5)
Repayments of long-term debt	(532.3)	(8.0)
Repayments of financing liabilities		(87.9)
Borrowings on long-term revolver debt	434.1	978.0
Repayments on long-term revolver debt	(693.6)	(964.3)
Proceeds from issuance of common stock under employee benefit plans	8.9	6.8
Tax withholdings on stock-based awards	(3.8)	(5.5)
Debt issuance and modification costs		(0.1)
Other financing activities	(1.0)	(0.8)
Net cash provided by (used in) financing activities	(1,034.6)	(402.3)
Effect of exchange rates on cash and cash equivalents	0.1
Increase (decrease) in cash and cash equivalents	2,280.6	(1.5)
Cash and cash equivalents at beginning of period	34.4	38.0
Cash and cash equivalents at end of period	$ 2,315.0	$ 36.5

CONSOLIDATED BALANCE SHEETS (HD Supply Holdings, Inc.) - USD ($) $ in Millions	Nov. 01, 2020	Feb. 02, 2020
Current assets:
Cash and cash equivalents	$ 2,315.0	$ 34.4
Receivables, less allowance for credit losses of $10.2 and $7.6	400.1	362.1
Inventories	388.6	427.1
Current assets of discontinued operations		748.0
Other current assets	73.6	91.3
Total current assets	3,177.3	1,662.9
Property and equipment, net	260.2	271.2
Operating lease right of-use assets	228.7	233.2
Goodwill	1,604.5	1,604.5
Intangible assets, net	59.8	68.4
Deferred tax assets	3.8	2.1
Non-current assets of discontinued operations		861.5
Other assets	9.2	11.7
Total assets	5,343.5	4,715.5
Current liabilities:
Accounts payable	270.0	218.7
Accrued compensation and benefits	40.8	37.9
Current installments of long-term debt	10.7	10.7
Current lease liabilities	51.0	50.8
Accrued income taxes	282.3
Current liabilities of discontinued operations		341.2
Other current liabilities	201.1	154.8
Total current liabilities	855.9	814.1
Long-term debt, excluding current installments	1,250.8	2,035.4
Deferred tax liabilities	22.0	32.7
Long-term lease liabilities	186.6	192.6
Non-current liabilities of discontinued operations		203.8
Other liabilities	75.9	84.7
Total liabilities	2,391.2	3,363.3
Stockholders' equity:
Common stock, par value $0.01; 1 billion shares authorized; 155.6 million and 161.4 million shares issued and outstanding at November 1, 2020 and February 2, 2020, respectively	2.1	2.0
Paid-in capital	4,117.2	4,097.4
Retained earnings (accumulated deficit)	689.1	(1,122.1)
Accumulated other comprehensive loss	(16.0)	(52.1)
Treasury stock, at cost, 50.6 million and 44.1 million shares at November 1, 2020 and February 2, 2020, respectively	(1,840.1)	(1,573.0)
Total stockholders' equity	2,952.3	1,352.2
Total liabilities and stockholders' equity	$ 5,343.5	$ 4,715.5