Sears Hometown & Outlet Stores, Inc.

CIK:0001548309|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 03, 2019	Aug. 04, 2018	Aug. 03, 2019	Aug. 04, 2018
Income Statement [Abstract]
NET SALES	$ 168,594	$ 302,938	$ 337,089	$ 556,340
COSTS AND EXPENSES
Cost of sales and occupancy	136,878	246,522	277,729	445,140
Selling and administrative	46,633	71,556	92,496	140,256
Depreciation and amortization	1,108	2,049	2,510	3,545
Total costs and expenses	184,619	320,127	372,735	588,941
Operating loss	(16,025)	(17,189)	(35,646)	(32,601)
Interest expense	(3,154)	(3,604)	(7,124)	(7,056)
Other income	6	106	15	150
Loss from continuing operations before income taxes	(19,173)	(20,687)	(42,755)	(39,507)
Income tax benefit	1,124	2,442	3,878	5,079
NET LOSS FROM CONTINUING OPERATIONS	(18,049)	(18,245)	(38,877)	(34,428)
Income from discontinued operations, net of tax (Note 2)	7,043	8,919	15,817	15,733
NET LOSS	$ (11,006)	$ (9,326)	$ (23,060)	$ (18,695)
Basic:
Continuing operations (in dollars per share)	$ (0.80)	$ (0.80)	$ (1.71)	$ (1.52)
Discontinued operations (in dollars per share)	0.32	0.39	0.69	0.70
Basic net loss per common share (in dollars per share)	(0.48)	(0.41)	(1.02)	(0.82)
Diluted:
Continuing operations (in dollars per share)	(0.80)	(0.80)	(1.71)	(1.52)
Discontinued operations (in dollars per share)	0.32	0.39	0.69	0.70
Diluted net loss per common share (in dollars per share)	$ (0.48)	$ (0.41)	$ (1.02)	$ (0.82)
Basic weighted average common shares outstanding (in shares)	22,702,000.00	22,702,000.00	22,702,000.00	22,702,000.00
Diluted weighted average common shares outstanding (in shares)	22,702,000	22,702,000	22,702,000	22,702,000

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Aug. 03, 2019	Aug. 04, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
NET LOSS	$ (23,060)	$ (18,695)
Income from discontinued operations, net of tax (Note 2)	15,817	15,733
Net loss from continuing operations	(38,877)	(34,428)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	2,510	3,545
Amortization of debt issuance costs	1,386	988
Provision for (recovery of) losses on franchisee receivables	223	(112)
Change in operating assets and liabilities:
Accounts and franchisee receivables	990	541
Merchandise inventories	39,376	19,439
Payable to related party	(91)	(2,768)
Accounts payable	1,153	(1,423)
Store closing accrual	(1,246)	(139)
Other operating assets and liabilities, net	(5,442)	2,466
Net cash used in operating activities - continuing operations	(18)	(11,891)
Net cash provided by operating activities - discontinued operations	16,788	21,189
Net cash provided by operating activities	16,770	9,298
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(1,494)	(2,921)
Net cash used in investing activities - continuing operations	(1,494)	(2,921)
Net cash provided by (used in) investing activities - discontinued operations	3,356	(694)
Net cash used in investing activities - continuing operations	1,862	(3,615)
CASH FLOWS FROM FINANCING ACTIVITIES
Net short-term payments on senior ABL facility	(20,005)	(41,600)
Net payments of capital lease obligations	(62)	(3)
Proceeds from term loan agreement	0	40,000
Debt issuance costs	(511)	(1,435)
Net cash used in financing activities - continuing operations	(20,578)	(3,038)
Net cash used in financing activities - discontinued operations	0	0
Net cash used in financing activities	(20,578)	(3,038)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(1,946)	2,645
CASH AND CASH EQUIVALENTS—Beginning of period	12,801	8,483
CASH AND CASH EQUIVALENTS—End of period	10,855	11,128
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	5,783	5,545
Cash paid for income taxes	$ 282	$ 1,156

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Aug. 03, 2019	Feb. 02, 2019	Aug. 04, 2018
CURRENT ASSETS
Cash and cash equivalents	$ 10,855	$ 12,801	$ 11,128
Accounts and franchisee receivables, net	9,062	10,275	9,565
Merchandise inventories	139,671	179,047	217,614
Prepaid expenses and other current assets	2,228	3,127	2,292
Assets of businesses held for sale (Note 2)	224,916	123,411	126,458
Total current assets	386,732	328,661	367,057
PROPERTY AND EQUIPMENT, net	11,821	13,291	15,350
OPERATING LEASE RIGHT-OF-USE ASSETS	3,207
OTHER ASSETS, net	1,285	1,819	3,353
TOTAL ASSETS	403,045	343,771	385,760
CURRENT LIABILITIES
Short-term borrowings	72,995	93,000	96,300
Current portion of term loan, net	39,362	39,057	0
Payable to related party	11,342	11,433	17,396
Accounts payable	4,880	3,727	5,013
Current operating lease liabilities	2,284
Other current liabilities	28,586	38,298	40,196
Liabilities of businesses held for sale (Note 2)	143,487	37,655	32,960
Total current liabilities	302,936	223,170	191,865
LONG-TERM OPERATING LEASE LIABILITIES	3,831
LONG-TERM PORTION OF TERM LOAN, NET	0	0	38,565
OTHER LONG-TERM LIABILITIES	1,823	645	605
TOTAL LIABILITIES	308,590	223,815	231,035
COMMITMENTS AND CONTINGENCIES (Note 11)
STOCKHOLDERS' EQUITY
TOTAL STOCKHOLDERS' EQUITY	94,455	119,956	154,725
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 403,045	$ 343,771	$ 385,760