J.Jill, Inc. (NYSE:JILL) today announced financial results for
the second quarter ended August 1, 2020.
James S. Scully, Interim Chief Executive Officer of J.Jill, Inc.
stated, “During the second quarter we continued to navigate through
the challenges presented from the COVID-19 pandemic. With the
majority of our stores temporarily closed through the first half of
the quarter, our teams focused on driving sales through our direct
to consumer channel. We also continued to tightly manage expenses
as well as our working capital needs. I am pleased with our
disciplined approach to inventory management and believe we are
taking the right actions to further strengthen our financial
position. I am proud of all of our teams for their hard work and
dedication to J.Jill, and we look forward to driving further
progress as we move through the balance of the year and
beyond.”
For the second quarter ended August 1, 2020:
- The Company ended the second quarter of fiscal 2020 with $31.8
million in cash.
- Inventory at the end of the second quarter of fiscal 2020
decreased to $64.2 million compared to $70.0 million at the end of
the second quarter of fiscal 2019.
- Total net sales for the thirteen weeks ended August 1, 2020
were $92.6 million compared to $180.7 million for the thirteen
weeks ended August 3, 2019.
- Direct to consumer net sales represented 71.6% of total net
sales, compared to 42.6% in the second quarter of fiscal 2019.
- Gross profit was $55.0 million compared to $105.3 million in
the second quarter of fiscal 2019. Gross margin was 59.4% compared
to 58.3% in the second quarter of fiscal 2019, which reflected the
impact of actions taken in 2019 to clear excess inventory.
- SG&A was $76.9 million compared to $102.6 million in the
second quarter of fiscal 2019. SG&A as a percentage of total
net sales was 83.0% compared to 56.8% in the second quarter of
fiscal 2019. In the second quarter of fiscal 2020, SG&A
included $6.9 million of non-recurring expense directly incurred in
response to the COVID-19 pandemic and other legal and advisory
costs offset by a benefit of $0.4 million related to an adjustment
associated with the estimated costs of permanently closing certain
retail locations, while in the second quarter of fiscal 2019,
SG&A included non-recurring income of $0.7 million resulting
from the benefit of insurance proceeds which was partially offset
by restructuring costs.
- Loss from operations was $21.0 million compared to a loss of
$94.8 million in the second quarter of fiscal 2019. Loss from
operations in the second quarter of fiscal 2020 included a benefit
of $0.9 million, which represents a reduction of an impairment
charge recorded in the first quarter and relates to an adjustment
of the lease liability caused by permanently closing certain retail
locations. The second quarter of fiscal 2019 included $97.5 million
of impairment charges.
- Adjusted Income from Operations*, excluding the non-recurring
items and impairment entries incurred in both the second quarter of
fiscal 2020 and 2019, was a loss of $15.4 million compared to
income of $2.0 million in the second quarter of fiscal 2019.
- Interest expense was $4.2 million compared to $5.0 million in
the second quarter of fiscal 2019.
- Income tax benefit was $6.7 million compared to a benefit of
$3.1 million in the second quarter of fiscal 2019, and the
effective tax rate was 26.6% compared to 3.1% in the second quarter
of 2019.
- Net loss was $18.5 million compared to a loss of $96.7 million
in the second quarter of fiscal 2019.
- Net loss per share was $0.41 compared to a loss of $2.21 in the
second quarter of fiscal 2019, including the impact of
non-recurring items. Excluding these impacts Adjusted Loss per
Share* in the second quarter of fiscal 2020 was $0.31 compared to
adjusted loss per share of $0.05 in the second quarter of fiscal
2019.
- Adjusted EBITDA* for the second quarter of fiscal 2020 was a
loss of $6.2 million, compared to income of $12.6 million in the
second quarter of fiscal 2019.
- The Company closed five stores in the second quarter of fiscal
2020 and ended the quarter with 281 stores.
For the twenty-six weeks ended August 1, 2020 :
- Total net sales for the twenty-six weeks ended August 1, 2020
were $183.6 million compared to $357.2 million for the twenty-six
weeks ended August 3, 2019.
- Direct to consumer net sales represented 66.6% of total net
sales compared to 42.3% in the twenty-six weeks ended August 3,
2019.
- Gross profit was $105.2 million compared to $221.6 million in
the twenty-six weeks ended August 3, 2019. Gross margin was 57.3%
compared to 62.0% in the twenty-six weeks ended August 3,
2019.
- SG&A was $164.8 million compared to $208.1 million in the
twenty-six weeks ended August 3, 2019. In the twenty-six weeks
ended August 1, 2020, SG&A included $9.1 million of expense
directly incurred in response to the COVID-19 pandemic and other
legal and advisory costs offset by a benefit of $0.4 million
related to an adjustment to the estimated costs of permanently
closing certain retail locations. In the twenty-six weeks ended
August 3, 2019, SG&A included non-recurring income of $0.7
million resulting from the benefit of insurance proceeds which was
partially offset by restructuring costs.
- Loss from operations was $110.7 million compared to a loss of
$84.0 million in the twenty-six weeks ended
August 3, 2019. 2020 loss from operations included $51.1
million of impairment charges for goodwill and other intangible and
long-lived assets compared to $97.5 million of impairment charges
in fiscal 2019.
- Adjusted Income from Operations*, excluding the non-recurring
items and impairment entries incurred year-to-date in fiscal 2020
and 2019, was a loss of $50.9 million compared to income of $12.8
million in the second quarter of fiscal 2019.
- Interest expense was $8.9 million compared to $10.0 million in
the twenty-six weeks ended August 3, 2019.
- Income tax benefit was $30.8 million compared to $1.6 million
in the twenty-six weeks ended August 3, 2019, and the effective tax
rate was 25.8% compared to 1.7% in the twenty-six weeks ended
August 3, 2019.
- Net loss was $88.8 million compared to a loss of $92.4 million
in the twenty-six weeks ended August 3, 2019
- Net loss per share was $1.99 compared to a net loss of $2.12 in
the twenty-six weeks ended August 3, 2019, including the impact of
one-time items. Excluding these impacts Adjusted Loss per Share*
for the twenty-six weeks ended August 1, 2020 was $0.96 compared to
adjusted income per share of $0.05 for the twenty-six weeks ended
August 3, 2019.
- Adjusted EBITDA* in the twenty-six weeks ended August 1, 2020
was a loss of $32.1 million compared to income of $34.1 million in
the twenty-six weeks ended August 3, 2019.
* Non-GAAP financial measures. Please see “Non-GAAP Financial
Measures” and “Reconciliation of GAAP Net Income to Adjusted
EBITDA, Adjusted Income from Operations and Adjusted Net Income”
for more information.
Outlook
The impact of the COVID-19 pandemic and the pace at which there
are new developments, locally and globally, has created a great
deal of uncertainty. Consequently, the Company is not providing
financial guidance at this time but continues to expect to end the
year with approximately 275 stores, with the majority of additional
closings completed early in the third quarter. The Company
continues to expect total capital spend in fiscal 2020 to be
approximately $5.0 million.
Recent Developments
Following the end of the Company’s fiscal first quarter, on June
15, 2020, the Company announced that it had fallen out of
compliance with certain covenants set forth in its ABL and term
loan credit facilities. Beginning on June 15, 2020, the Company
entered into two Forbearance Agreements (the "Forbearance
Agreements") with the lenders under its ABL and term loan credit
facilities with respect to the aforementioned noncompliance.
Subsequently, the Forbearance Agreements were extended with the
latest extension through September 26, 2020.
On September 1, 2020, the Company announced it entered into a
Transaction Support Agreement (“TSA”) with lenders holding greater
than 70.0% of the Company’s term loans (“Consenting Lenders”) on
the principal terms of a financial restructuring (“Transaction”)
that would result in a waiver of any past non-compliance with the
terms of the Company’s credit facilities and provide the company
with additional liquidity.
Mark Webb, Chief Financial Officer of J.Jill, Inc. commented,
“We are very pleased that we have reached an agreement with more
than 70.0% of our lenders and a majority of our shareholders that
we expect will strengthen our financial position and better enable
us to move forward in driving long-term growth for J.Jill.”
If the Transaction is consented to by the requisite term loan
lenders, the Transaction will be consummated on an out-of-court
basis. The out-of-court Transaction would extend the maturity of
certain participating debt by 2 years, through May 2024, enabling
the Company to strengthen its balance sheet and better position
itself for long-term growth. The Company is working actively with
the Consenting Lenders to obtain the necessary consents. In the
event that the Transaction does not receive the required consents,
the parties to the TSA have agreed to a prepackaged plan of
reorganization under Chapter 11 of the United States Code (the
“In-Court Transaction”) the key terms of which have been
negotiated, including additional financing during the Chapter 11
process. While the Company hopes to receive the required consents
to execute the out-of-court Transaction, the Company anticipates
that the In-Court Transaction would be a swift process in which all
vendor claims would be unimpaired and paid in full, and from which
the Company would emerge with a strong and healthy balance
sheet.
Please refer to http://investors.jjill.com for these prior
announcements as well as relevant filings.
About J.Jill, Inc.
J.Jill is a premier omnichannel retailer and nationally
recognized women’s apparel brand committed to delighting customers
with great wear-now product. The brand represents an easy,
thoughtful and inspired style that reflects the confidence of
remarkable women who live life with joy, passion and purpose.
J.Jill offers a guiding customer experience through about 280
stores nationwide and a robust e-commerce platform. J.Jill is
headquartered outside Boston. For more information, please visit
www.jjill.com or http://investors.jjill.com. The information
included on our websites is not incorporated by reference.
Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements
presented in accordance with generally accepted accounting
principles (“GAAP”), we use the following non-GAAP measures of
financial performance:
- Adjusted EBITDA, which represents net income (loss) plus
interest expense, provision (benefit) for income taxes,
depreciation and amortization, equity-based compensation expense,
write-off of property and equipment, and other non-recurring
expenses and one-time items. We present Adjusted EBITDA on a
consolidated basis because management uses it as a supplemental
measure in assessing our operating performance, and we believe that
it is helpful to investors, securities analysts and other
interested parties as a measure of our comparative operating
performance from period to period. We also use Adjusted EBITDA as
one of the primary methods for planning and forecasting overall
expected performance of our business and for evaluating on a
quarterly and annual basis actual results against such
expectations. Further, we recognize Adjusted EBITDA as a commonly
used measure in determining business value and as such, use it
internally to report results.
- Adjusted Income (Loss) from Operations, which represents
operating income (loss) plus other non-recurring expense and
one-time items. We present Adjusted Income (Loss) from Operations
because management uses it as a supplemental measure in assessing
our operating performance, and we believe that it is helpful to
investors, securities analysts, and other interested parties as a
measure of our comparative operating performance from period to
period.
- Adjusted Net Income (Loss), which represents net income (loss)
plus other non-recurring expenses and one-time items. We present
Adjusted Net Income (Loss) because management uses it as a
supplemental measure in assessing our operating performance, and we
believe that it is helpful to investors, securities analysts and
other interested parties as a measure of our comparative operating
performance from period to period.
- Adjusted Diluted Earnings (Loss) per Share (“Adjusted Diluted
EPS”) represents Adjusted Net Income (Loss) divided by the number
of fully diluted shares outstanding. Adjusted Diluted EPS is
presented as a supplemental measure in assessing our operating
performance, and we believe that it is helpful to investors,
securities analysts and other interested parties as a measure of
our comparative operating performance from period to period.
While we believe that Adjusted EBITDA, Adjusted Income (Loss)
from Operations, Adjusted Net Income (Loss) and Adjusted Diluted
EPS are useful in evaluating our business, they are non-GAAP
financial measures that have limitations as analytical tools.
Adjusted EBITDA, Adjusted Income (Loss) from Operations, Adjusted
Net Income (Loss) and Adjusted Diluted EPS should not be considered
alternatives to, or substitutes for, net income (loss) or EPS,
which are calculated in accordance with GAAP. In addition, other
companies, including companies in our industry, may calculate
Adjusted EBITDA, Adjusted Income (Loss) from Operations, Adjusted
Net Income (Loss) and Adjusted Diluted EPS differently or not at
all, which reduces the usefulness of such non-GAAP financial
measures as tools for comparison. We recommend that you review the
reconciliation and calculation of Adjusted EBITDA, Adjusted Income
(Loss) from Operations, Adjusted Net Income (Loss) and Adjusted
Diluted EPS to net income (loss) and EPS, the most directly
comparable GAAP financial measures, under “Reconciliation of GAAP
Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income (Loss)
as well as Reconciliation of GAAP Operating Income (Loss) to
Adjusted Income (Loss) from Operations” and not rely solely on
Adjusted EBITDA, Adjusted Income (Loss) from Operations, Adjusted
Net Income (Loss), Adjusted Diluted EPS or any single financial
measure to evaluate our business.
Forward-Looking Statements
This press release contains, and oral statements made from time
to time by our representatives may contain, “forward-looking
statements.” Forward-looking statements include statements under
“Outlook” and other statements identified by words such as “could,”
“may,” “might,” “will,” “likely,” “anticipates,” “intends,”
“plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,”
“projects” and similar references to future periods, or by the
inclusion of forecasts or projections. Forward-looking statements
are based on our current expectations and assumptions regarding
capital market conditions, our business, the economy and other
future conditions. Because forward-looking statements relate to the
future, by their nature, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, our actual results may differ
materially from those contemplated by the forward-looking
statements, but are not limited to, the Company’s ability to
consummate the Transaction, on the terms proposed or at all,
including the Company’s ability to obtain requisite support of the
Transaction from various stakeholders and to finalize the terms and
documentation relating to the Transaction; the Company’s ability to
comply with the terms of the TSA, including completing various
stages of the restructuring within the dates specified therein; the
effects of disruption from the proposed financial restructuring
making it more difficult to maintain business, financing and
operational relationships; the Company’s ability to achieve the
potential benefits of the proposed financial restructuring; the
impact of the COVID-19 epidemic and political unrest on the Company
and the economy as a whole; the Company’s ability to adequately and
effectively negotiate a long-term solution under its outstanding
debt instruments; risks related to the Forbearance Agreements,
including the duration of such agreements and the Company’s ability
to meet its ongoing obligations under such agreements; the
Company’s ability to take actions that are sufficient to eliminate
the substantial doubt about its ability to continue as a going
concern; the Company’s ability to develop a plan to regain
compliance with the continued listing criteria of the NYSE; the
NYSE’s acceptance of such plan; the Company’s ability to execute
such plan and to continue to comply with applicable listing
standards within the available cure period; risks arising from the
potential suspension of trading of the Company’s common stock on
the NYSE; Important factors that could cause actual results to
differ materially from those in the forward-looking statements
include regional, national or global political, economic, business,
competitive, market and regulatory conditions, including risks
regarding our ability to manage inventory or anticipate consumer
demand; changes in consumer confidence and spending; our
competitive environment; our failure to open new profitable stores
or successfully enter new markets and other factors set forth under
“Risk Factors” in our Annual Report on Form 10-K for the fiscal
year ended February 1, 2020. Any forward-looking statement made in
this press release speaks only as of the date on which it is made.
J.Jill undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise.
(Tables Follow)
J.Jill, Inc. Consolidated
Statements of Operations and Comprehensive Income (Unaudited)
(Amounts in thousands, except share and per share data)
For the Thirteen Weeks
Ended
August 1, 2020
August 3, 2019
Net sales
$
92,636
$
180,744
Cost of goods sold
37,616
75,403
Gross profit
55,020
105,341
Selling, general and administrative
expenses
76,864
102,634
Impairment of long-lived assets
(893
)
2,064
Impairment of goodwill
—
88,428
Impairment of intangible assets
—
7,000
Operating loss
(20,951
)
(94,785
)
Interest expense
4,244
5,019
Loss before provision for income taxes
(25,195
)
(99,804
)
Income tax benefit
(6,714
)
(3,069
)
Net loss and total comprehensive loss
$
(18,481
)
$
(96,735
)
Net loss per common share attributable to
common shareholders:
Basic
$
(0.41
)
$
(2.21
)
Diluted
$
(0.41
)
$
(2.21
)
Weighted average number of common shares
outstanding:
Basic
44,767,154
43,793,348
Diluted
44,767,154
43,793,348
For the Twenty-Six Weeks
Ended
August 1, 2020
August 3, 2019
Net sales
$
183,605
$
357,196
Cost of goods sold
78,420
135,599
Gross profit
105,185
221,597
Selling, general and administrative
expenses
164,772
208,079
Impairment of long-lived assets
26,587
2,064
Impairment of goodwill
17,900
88,428
Impairment of intangible assets
6,620
7,000
Operating loss
(110,694
)
(83,974
)
Interest expense
8,887
10,026
Loss before provision for income taxes
(119,581
)
(94,000
)
Income tax benefit
(30,831
)
(1,631
)
Net loss and total comprehensive loss
$
(88,750
)
$
(92,369
)
Net loss per common share attributable to
common shareholders:
Basic
$
(1.99
)
$
(2.12
)
Diluted
$
(1.99
)
$
(2.12
)
Weighted average number of common shares
outstanding:
Basic
44,589,034
43,560,434
Diluted
44,589,034
43,560,434
J.Jill, Inc. Consolidated
Balance Sheets (Unaudited) (Amounts in thousands, except common
share data)
August 1, 2020
February 1, 2020
Assets
Current assets:
Cash
$
31,762
$
21,527
Accounts receivable
4,165
6,568
Inventories, net
64,214
72,599
Prepaid expenses and other current
assets
43,775
22,256
Total current assets
143,916
122,950
Property and equipment, net
89,647
107,645
Intangible assets, net
101,505
112,814
Goodwill
59,697
77,597
Operating lease assets, net
177,391
211,332
Other assets
2,174
1,650
Total assets
$
574,330
$
633,988
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
43,971
$
43,053
Accrued expenses and other current
liabilities
68,686
42,712
Current portion of long-term debt
233,352
2,799
Current portion of operating lease
liabilities
34,520
33,875
Borrowings under revolving credit
facility
31,800
—
Total current liabilities
412,329
122,439
Long-term debt, net of discount and
current portion
—
231,200
Deferred income taxes
16,285
31,034
Operating lease liabilities, net of
current portion
192,973
208,800
Other liabilities
1,787
1,950
Total liabilities
623,374
595,423
Commitments and contingencies
Shareholders’ Equity
Common stock, par value $0.01 per share;
250,000,000 shares authorized; 44,802,370 and 44,288,127 shares
issued and outstanding at August 1, 2020 and February 1, 2020,
respectively
448
443
Additional paid-in capital
126,212
125,076
Accumulated (deficit) earnings
(175,704
)
(86,954
)
Total shareholders’ equity
(49,044
)
38,565
Total liabilities and shareholders’
equity
$
574,330
$
633,988
J.Jill, Inc. Reconciliation of
GAAP Net Income to Adjusted EBITDA (Unaudited) (Amounts in
thousands)
For the Thirteen Weeks
Ended
August 1, 2020
August 3, 2019
Net loss
$
(18,481
)
$
(96,735
)
Interest expense, net
4,244
5,019
Income tax benefit
(6,714
)
(3,069
)
Depreciation and amortization
8,277
9,396
Equity-based compensation expense (a)
615
1,214
Write-off of property and equipment
(b)
244
8
Adjustment for costs to exit retail
stores(c)
(402
)
—
Impairment of goodwill and other
intangible assets
—
95,428
Impairment of long-lived assets(d)
(893
)
2,064
Other non-recurring expenses (e)
6,890
(740
)
Adjusted EBITDA
$
(6,220
)
$
12,585
For the Twenty-Six Weeks
Ended
August 1, 2020
August 3, 2019
Net loss
$
(88,750
)
$
(92,369
)
Interest expense, net
8,887
10,026
Income tax benefit
(30,831
)
(1,631
)
Depreciation and amortization
17,313
18,848
Equity-based compensation expense (a)
1,291
2,416
Write-off of property and equipment
(b)
256
14
Adjustment for costs to exit retail
stores(c)
(402
)
—
Impairment of goodwill and other
intangible assets
24,520
95,428
Impairment of long-lived assets(d)
26,587
2,064
Other non-recurring expenses (e)
9,074
(740
)
Adjusted EBITDA
$
(32,055
)
$
34,056
(a) Represents expenses associated with equity incentive
instruments granted to our management. Incentive instruments are
accounted for as equity-classified awards with the related
compensation expense recognized based on fair value at the date of
the grants. (b) Represents net gain or loss on the disposal of
fixed assets. (c) Represents non-cash gains associated with exiting
store leases earlier than anticipated (d) Represents impairment of
long-lived assets related to the right-of-use asset and leasehold
improvements. For the thirteen weeks ended August 1, 2020, the
Company recognized a benefit (or reversal of prior period
impairment) caused by the adjustment of the operating lease
liability related to stores that were permanently closed during the
period. (e) Represents items management believes are not indicative
of ongoing operating performance. For the twenty-six weeks ended
August 1, 2020 these expenses are primarily composed of legal and
advisory costs and incremental one-time costs related to the
COVID-19 pandemic, including supplies and cleaning expenses as well
as hazard pay and benefits. For the twenty-six weeks ended August
3, 2019 these expenses are primarily composed of a gain from
insurance proceeds and restructuring costs.
J.Jill, Inc. Reconciliation of
GAAP Operating Income to Adjusted Income from Operations
(Unaudited) (Amounts in thousands)
For the Thirteen Weeks
Ended
August 1, 2020
August 3, 2019
Operating loss
$
(20,951
)
$
(94,785
)
Adjustment for costs to exit retail
stores(a)
(402
)
—
Impairment of goodwill and other
intangible assets
—
95,428
Impairment of long-lived assets(b)
(893
)
2,064
Other non-recurring expenses (c)
6,890
(740
)
Adjusted (Loss) Income from Operations
$
(15,356
)
$
1,967
For the Twenty-Six Weeks
Ended
August 1, 2020
August 3, 2019
Operating (loss) income
$
(110,694
)
$
(83,974
)
Adjustment for costs to exit retail
stores(a)
(402
)
—
Impairment of goodwill and other
intangible assets
24,520
95,428
Impairment of long-lived assets(b)
26,587
2,064
Other non-recurring expenses(c)
9,074
(740
)
Adjusted (Loss) Income from Operations
$
(50,915
)
$
12,778
(a) Represents non-cash gains associated with exiting store
leases earlier than anticipated. (b) Represents impairment of
long-lived assets related to the right-of-use asset and leasehold
improvements. For the thirteen weeks ended August 1, 2020, the
Company recognized a benefit (or reversal of prior period
impairment) caused by the adjustment of the operating lease
liability related to stores that were permanently closed during the
period. (c) Represents items management believes are not indicative
of ongoing operating performance. For the twenty-six weeks ended
August 1, 2020 these expenses are primarily composed of legal and
advisory costs and incremental one-time costs related to the
COVID-19 pandemic, including supplies and cleaning expenses as well
as hazard pay and benefits. For the twenty-six weeks ended August
3, 2019 these expenses are primarily composed of a gain from
insurance proceeds and restructuring costs.
J.Jill, Inc. Reconciliation of
GAAP Net Income to Adjusted Net Income (Unaudited) (Amounts in
thousands, except share and per share data)
For the Thirteen Weeks
Ended
August 1, 2020
August 3, 2019
Net loss and total comprehensive loss
$
(18,481
)
$
(96,735
)
Add: Income tax benefit
(6,714
)
(3,069
)
Loss before benefit for income taxes
(25,195
)
(99,804
)
Add: Adjustment for costs to exit retail
stores (a)
(402
)
—
Add: Impairment of goodwill and other
intangible assets
—
95,428
Add: Impairment of long-lived
assets(b)
(893
)
2,064
Add: Other non-recurring expenses(c)
6,890
(740
)
Adjusted loss before benefit for income
taxes
(19,600
)
(3,052
)
Less: Adjusted tax benefit(d)
(5,586
)
(824
)
Adjusted net loss
$
(14,014
)
$
(2,228
)
Adjusted net loss per common share
attributable to common shareholders:
Basic
$
(0.31
)
$
(0.05
)
Diluted
$
(0.31
)
$
(0.05
)
Weighted average number of common shares
outstanding:
Basic
44,767,154
43,793,348
Diluted
44,767,154
43,793,348
For the Twenty-Six Weeks
Ended
August 1, 2020
August 3, 2019
Net loss and total comprehensive loss
$
(88,750
)
$
(92,369
)
Add: Income tax benefit
(30,831
)
(1,631
)
Loss before benefit for income taxes
(119,581
)
(94,000
)
Add: Adjustment for costs to exit retail
stores (a)
(402
)
—
Add: Impairment of goodwill and
indefinite-lived intangible assets
24,520
95,428
Add: Impairment of long-lived
assets(b)
26,587
2,064
Add: Other non-recurring expenses(c)
9,074
(740
)
Adjusted (loss) income before (benefit)
provision for income taxes
(59,802
)
2,752
Less: Adjusted tax (benefit)
provision(d)
(17,044
)
743
Adjusted net (loss) income
$
(42,758
)
$
2,009
Adjusted net (loss) income per common
share attributable to common shareholders:
Basic
$
(0.96
)
$
0.05
Diluted
$
(0.96
)
$
0.05
Weighted average number of common shares
outstanding:
Basic
44,589,034
43,560,434
Diluted
44,589,034
43,560,434
(a) Represents non-cash gains associated with exiting store
leases earlier than anticipated. (b) Represents impairment of
long-lived assets related to the right-of-use asset and leasehold
improvements. For the thirteen weeks ended August 1, 2020, the
Company recognized a benefit (or reversal of prior period
impairment) related to stores that were permanently closed during
the period. (c) Represents items management believes are not
indicative of ongoing operating performance. For the twenty-six
weeks ended August 1, 2020 these expenses are primarily composed of
legal and advisory costs and incremental one-time costs related to
the COVID-19 pandemic, including supplies and cleaning expenses as
well as hazard pay and benefits. For the twenty-six weeks ended
August 3, 2019 these expenses are primarily composed of a gain from
insurance proceeds and restructuring costs. (d) The adjusted tax
(benefit) provision for adjusted net (loss) income is estimated by
applying a rate of 28.5% for fiscal 2020 and 27% for fiscal 2019,
to the adjusted (loss) income before (benefit) provision for income
taxes.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200903005290/en/
Investor Contacts: Caitlin Churchill/Joseph Teklits ICR,
Inc. investors@jjill.com 203-682-8200
Media Contact: Chris Gayton J.Jill, Inc. media@jjill.com
617-689-7916
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