Beach Acquisition Co Parent, LLC

CIK:0002066659|SEC Filings

Consolidated Statements of Earnings (Loss) - USD ($) shares in Thousands, $ in Thousands	8 Months Ended		12 Months Ended
	Dec. 31, 2025	Sep. 11, 2025	Dec. 31, 2024	Dec. 31, 2023
Income Statement [Abstract]
Sales	$ 2,847,106	$ 6,788,045	$ 8,969,351	$ 8,000,342
Cost of sales	1,602,810	3,200,387	4,201,912	3,847,938
Gross profit	1,244,296	3,587,658	4,767,439	4,152,404
Operating expenses
Selling	272,683	608,909	800,634	676,890
General and administrative	1,125,757	2,378,034	3,062,548	2,690,728
Total operating expenses	1,398,440	2,986,943	3,863,182	3,367,618
Earnings (loss) from operations	(154,144)	600,715	904,257	784,786
Interest (expense) income	(200,225)	(7,860)	15,356	2,397
Other income (expense)	7,724	70,704	(41,864)	13,689
Earnings (loss) before income taxes	(346,645)	663,559	877,749	800,872
Income tax (benefit) expense	(30,956)	92,316	148,136	150,949
Net (loss) earnings	(315,689)	571,243	729,613	649,923
Less: Net earnings attributable to noncontrolling interests and redeemable noncontrolling interest	18,398	38,151	90,142	104,124
Net (loss) earnings attributable to Common Unit holders / Skechers	$ (334,087)	$ 533,092	$ 639,471	$ 545,799
Net loss per unit attributable to Common Unit holders/Skechers
Basic	$ (2.17)	$ 3.56	$ 4.21	$ 3.53
Diluted	$ (2.17)	$ 3.52	$ 4.16	$ 3.49
Weighted-average units used in calculating net loss per unit attributable to Common Unit holders/Skechers
Basic	154,128	149,887	151,838	154,533
Diluted	154,128	151,514	153,843	156,256

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	8 Months Ended		12 Months Ended
	Dec. 31, 2025	Sep. 11, 2025	Dec. 31, 2024	Dec. 31, 2023
Cash flows from operating activities
Net (loss) earnings	$ (315,689)	$ 571,243	$ 729,613	$ 649,923
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities
Depreciation and amortization	71,784	166,718	211,499	181,925
Amortization of deferred financing costs, original issuance discount and PIK interest	112,245	966	493	493
Provision for credit losses and returns	9,252	51,779	53,847	48,539
Stock compensation	17,792	67,776	86,665	67,960
Deferred income taxes	(80,081)	(31,543)	5,081	(2,370)
Net foreign currency adjustments	(12,215)	(42,398)	25,762	(18,492)
Changes in operating assets and liabilities
Receivables	168,074	(146,680)	(248,557)	(3,416)
Inventory	161,616	102,169	(441,700)	324,193
Other assets	(31,943)	(202,932)	(140,884)	(98,534)
Accounts payable	67,076	(91,725)	260,509	41,565
Other liabilities	129,798	140,167	145,062	39,378
Net cash provided by operating activities	297,709	585,540	687,390	1,231,164
Cash flows from investing activities
Capital expenditures	(224,233)	(518,211)	(416,794)	(323,722)
Acquisitions, net of cash acquired	(7,735,925)	0	0	(70,370)
Proceeds from sale of property, plant and equipment	0	9,972	0	0
Purchases of investments	(822,459)	(113,322)	(197,417)	(160,233)
Proceeds from sales and maturities of investments	274,000	296,717	128,851	136,306
Net cash used in investing activities	(8,508,617)	(324,844)	(485,360)	(418,019)
Cash flows from financing activities
Proceeds from the employee stock purchase plan	0	7,519	11,025	9,445
Repayments on long-term borrowings	(95,659)	(194,233)	(130,280)	(78,256)
Proceeds from long-term borrowings	6,478,183	196,796	265,171	48,100
Net proceeds from (repayments on) short-term borrowings	23,404	22,117	21,882	(7,741)
Payments of debt issuance and other financing costs	(197,278)	0	0	0
Capital contributions	3,796,425	0	0	0
Payments for employee taxes related to stock compensation	0	(30,423)	(51,268)	(22,442)
Repurchases of common stock	0	0	(330,103)	(160,064)
Purchase of noncontrolling interest	(6,000)	0	0	(6,000)
Contributions from noncontrolling interests	6,399	0	0	0
Distributions to noncontrolling interests	0	0	(39,887)	(17,719)
Net cash provided by (used in) financing activities	10,005,474	1,776	(253,460)	(234,677)
Effect of exchange rates on cash and cash equivalents	910	23,271	(21,964)	(4,291)
Net change in cash and cash equivalents	1,795,476	285,743	(73,394)	574,177
Cash and cash equivalents at beginning of the period	0	1,116,516	1,189,910	615,733
Cash and cash equivalents at end of the period	1,795,476	1,402,259	1,116,516	1,189,910
Cash paid during the period for
Interest	69,916	24,383	21,290	21,871
Income taxes, net	31,471	88,545	175,829	147,095
Non-cash transactions
Right-of-use assets exchanged for lease liabilities	123,924	402,725	434,146	343,438
Contribution from noncontrolling interests	0	0	150,000	0
Non-cash consideration for acquired business	0	0	0	8,873
Equity consideration issued in connection with Skechers acquisition	673,283	0	0	0
Merger consideration accrued and not yet paid	$ 380,409	$ 0	$ 0	$ 0

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Current assets
Cash and cash equivalents	$ 1,795,476	$ 1,116,516
Short-term investments	548,478	118,470
Trade accounts receivable, less allowances of $1,387 and $66,616	1,028,980	990,558
Other receivables	103,742	98,499
Inventory	1,970,998	1,919,386
Prepaid expenses and other	256,796	205,994
Total current assets ($1,511,135 and $1,413,643 related to VIEs)	5,704,470	4,449,423
Property, plant and equipment, net	2,133,126	1,834,930
Operating lease right-of-use assets	1,565,240	1,363,596
Deferred tax assets	62,644	440,358
Long-term investments	88,705	146,687
Intangible assets, net	4,939,000	49,924
Goodwill	1,166,572	94,494
Other assets, net	124,189	76,346
Total non-current assets ($955,370 and $861,175 related to VIEs)	10,079,476	4,006,335
TOTAL ASSETS	15,783,946	8,455,758
Current liabilities
Accounts payable	1,248,421	1,241,838
Accrued expenses	811,258	330,251
Operating lease liabilities	298,717	297,926
Current installments of long-term borrowings	343,820	353,131
Short-term borrowings	81,599	33,338
Total current liabilities ($910,272 and $846,986 related to VIEs)	2,783,815	2,256,484
Long-term operating lease liabilities	1,312,653	1,176,290
Long-term borrowings	6,419,752	68,450
Deferred tax liabilities	311,696	11,148
Other long-term liabilities	129,805	123,122
Total non-current liabilities ($214,553 and $170,341 related to VIEs)	8,173,906	1,379,010
Total liabilities	10,957,721	3,635,494
Commitments and contingencies (Note 9)
Redeemable noncontrolling interest	65,867	90,099
Redeemable Common Units, 23,217 units issued and outstanding	673,283
Beach Acquisition members' equity / Skechers stockholders' equity
Members' capital, Common Units, 130,911 units issued and outstanding; Class P Units, no units issued and outstanding	3,844,416
Additional paid-in capital		12,170
Accumulated other comprehensive income (loss)	2,766	(171,221)
Retained earnings	(334,087)	4,436,201
Beach Acquisition members' equity	3,513,095
Skechers stockholders' equity		4,277,299
Noncontrolling interests	573,980	452,866
Total stockholders' & members' equity	4,087,075	4,730,165
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, REDEEMABLE COMMON UNITS AND STOCKHOLDERS' & MEMBERS' EQUITY	$ 15,783,946	8,455,758
Class A Common Stock [Member]
Beach Acquisition members' equity / Skechers stockholders' equity
Common Stock		130
Class B Common Stock [Member]
Beach Acquisition members' equity / Skechers stockholders' equity
Common Stock		$ 19