J.Jill, Inc. (NYSE:JILL) today announced financial results for
the fourth quarter and fiscal year ended January 30, 2021.
Claire Spofford, President and Chief Executive Officer of
J.Jill, Inc. stated, “Fiscal 2020 was an unprecedented year for
retail given the impact of the COVID-19 pandemic. Despite these
challenges, through deliberate and aggressive actions, the teams
positioned us to end the year with enhanced financial stability, a
more nimble cost structure, and cleaner inventory balances. Our
fourth quarter results reflect these actions as well as continued
progress as we again delivered sequential topline improvement
compared to our prior quarter. As we look ahead, we will continue
to take disciplined and strategic actions to strengthen the
foundation of our operating model to better realize the potential
of the J Jill brand and business.”
For the fourth quarter ended January 30, 2021:
- The Company ended the fourth quarter of fiscal 2020 with $4.4
million in cash and $23.8 million of total availability under its
revolving credit agreement.
- Inventory at the end of the fourth quarter of fiscal 2020
decreased 20.1% to $58.0 million compared to $72.6 million at the
end of the fourth quarter of fiscal 2019.
- Total net sales for the thirteen weeks ended January 30, 2021
were $120.4 million compared to $168.1 million for the thirteen
weeks ended February 1, 2020.
- Direct to consumer net sales represented 64.8% of total net
sales, compared to 47.3% in the fourth quarter of fiscal 2019.
- Gross profit was $68.7 million compared to $100.0 million in
the fourth quarter of fiscal 2019. Gross margin was 57.0% compared
to 59.5% in the fourth quarter of fiscal 2019. The year over year
gross margin decline was primarily driven by actions taken in the
quarter to clear excess inventory.
- SG&A was $85.6 million compared to $100.7 million in the
fourth quarter of fiscal 2019. In the fourth quarter of fiscal
2020, SG&A included $1.7 million of expense primarily the
result of legal and advisory costs related to the debt
restructuring agreements with lenders and costs directly incurred
in response to the COVID-19 pandemic offset by a benefit of $0.5
million related to adjustments to the estimated costs of
permanently closing certain retail locations. Excluding these
items, SG&A as a percentage of total net sales was 70.1%
compared to 58.5% in the fourth quarter of fiscal 2019.
- For the fourth quarter of fiscal 2020, the Company recognized
impairment charges of $14.3 million associated with other
intangible assets and other long-lived assets compared to $36.4
million in fourth quarter of fiscal 2019.
- Loss from operations was $31.2 million compared to $37.0
million in the fourth quarter of fiscal 2019.
- Adjusted (Loss) Income from Operations*, excluding the
non-recurring items and impairment charges incurred in the fourth
quarter of fiscal 2020, was a loss of $15.7 million compared to
Adjusted Income from Operations* of $1.7 million in the fourth
quarter of fiscal 2019.
- Interest expense was $4.6 million compared to $4.7 million in
the fourth quarter of fiscal 2019.
- Income tax benefit was $10.4 million compared to a benefit of
$3.2 million in the fourth quarter of fiscal 2019, and the
effective tax rate was 26.5% compared to 7.6% in the fourth quarter
of 2019.
- Net loss was $29.0 million compared to a loss of $38.6 million
in the fourth quarter of fiscal 2019.
- Net loss per share was $3.01 compared to a net loss of $4.38 in
the fourth quarter of fiscal 2019 including the impact of one-time
items. Excluding the impact of non-recurring items, Adjusted (Loss)
Income per Share* in the fourth quarter of fiscal 2020 was a loss
of $1.56 compared to a loss of $0.25 in the fourth quarter of
2019.
- Adjusted EBITDA* for the fourth quarter of fiscal 2020 was a
loss of $6.5 million compared to income of $11.8 million in the
fourth quarter of fiscal 2019.
- The Company closed 9 stores in the fourth quarter of fiscal
2020 and ended the quarter with 267 stores.
For the fiscal year ended January 30, 2021:
- Total net sales for the fifty-two weeks ended January 30, 2021
were $421.3 million compared to $691.3 million for the fifty-two
weeks ended February 1, 2020.
- Direct to consumer net sales represented 65.1% of total net
sales compared to 43.7% in the fifty-two weeks ended February 1,
2020.
- Gross profit was $242.9 million compared to $428.6 million in
the fifty-two weeks ended February 1, 2020. Gross margin was 57.7%
compared to 62.0% in the fifty-two weeks ended February 1,
2020.
- SG&A was $343.4 million compared to $406.7 million in the
fifty-two weeks ended February 1, 2020. In the fifty-two weeks
ended January 30, 2021, SG&A included $24.7 million of expense
primarily the result of legal and advisory costs related to the
debt restructuring agreements with lenders and costs directly
incurred in response to the COVID-19 pandemic offset by a benefit
of $1.4 million related to adjustments to the estimated costs of
permanently closing certain retail locations. Excluding these
items, SG&A as a percentage of total net sales was 76.0%
compared to 58.6% in the fifty-two weeks ended February 1,
2020.
- For the fifty-two weeks ended January 30, 2021, the Company
recognized impairment charges of $66.3 million associated with
goodwill, other intangible assets and other long-lived assets
compared to $133.9 million in the fifty-two weeks ended February 1,
2020.
- Loss from operations was $166.9 million compared to a loss of
$112.0 million in the fifty-two weeks ended February 1, 2020.
- Adjusted (Loss) Income from Operations*, excluding the
non-recurring and impairment charges incurred in fiscal 2020 and
fiscal 2019, was a loss of $77.3 million compared to Adjusted
Income from Operations* of $23.4 million, respectively.
- Interest expense was $18.2 million compared to $19.6 million in
the fifty-two weeks ended February 1, 2020.
- Income tax benefit was $48.9 million compared to a benefit of
$3.0 million in the fifty-two weeks ended February 1, 2020, and the
effective tax rate was 25.7% compared to 2.3% in the fifty-two
weeks ended February 1, 2020.
- Net loss was $141.4 million compared to a loss of $128.6
million in the fifty-two weeks ended February 1, 2020.
- Net loss per share was $15.44 compared to a net loss of $14.69
in the fifty-two weeks ended February 1, 2020, including the impact
of one-time items. Excluding the impact of non-recurring items,
Adjusted (Loss) Income per Share* for the fifty-two weeks ended
January 30, 2021 was a loss of $7.72 compared to income of $0.32
for the fifty-two weeks ended February 1, 2020.
- Adjusted EBITDA* for the fifty-two weeks ended January 30, 2021
was a loss of $40.5 million compared to income of $65.5 million in
the fifty-two weeks ended February 1, 2020.
*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 expects to close about 20
stores in fiscal 2021. The Company expects total capital spend in
fiscal 2021 to be approximately $10.0 million.
Conference Call Information
A conference call to discuss fourth quarter 2020 results is
scheduled for today, March 16, 2021, at 8:00 a.m. Eastern Time.
Those interested in participating in the call are invited to dial
(844) 502-5028 or (647) 689-5145 if calling internationally. Please
dial in approximately 10 minutes prior to the start of the call and
reference Conference ID 3458724 when prompted. A live audio webcast
of the conference call will be available online at
http://investors.jjill.com/Investors-Relations/News-Events/events.
A taped replay of the conference call will be available
approximately two hours following the live call and can be accessed
both online and by dialing (800) 585-8367 or (416) 621-4642. The
pin number to access the telephone replay is 3458724. The telephone
replay will be available until Tuesday, March 23, 2021.
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 more than 265
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
herein.
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,
impairments of goodwill, intangible assets and other long-lived
assets, fair value adjustments of warrants and derivatives 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 impairments of goodwill, intangible
assets and other long-lived assets and 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 impairments of goodwill, intangible assets and other
long-lived assets, fair value adjustments of warrants and
derivatives and 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. Important factors that could cause actual results to
differ materially from those in the forward-looking statements
include, but are not limited to, 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 failure to open new profitable stores
or successfully enter new markets; the impact of the COVID-19
epidemic on the Company and the economy as a whole; 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 regain compliance with the continued
listing criteria of the NYSE; the Company’s ability to execute its
plan to regain compliance with the continued listing criteria of
the NYSE 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; 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
January 30, 2021
February 1, 2020
Net sales
$
120,433
$
168,064
Cost of goods sold
51,742
68,030
Gross profit
68,691
100,034
Selling, general and administrative
expenses
85,619
100,693
Impairment of long-lived assets
6,284
261
Impairment of goodwill
—
31,000
Impairment of intangible assets
8,000
5,100
Operating loss
(31,212
)
(37,020
)
Fair value adjustment of derivative
720
-
Fair value adjustment of warrants -
related party
2,871
-
Interest expense, net
4,187
4,719
Interest expense, net - related party
402
-
Loss before income tax benefit
(39,392
)
(41,739
)
Income tax benefit
(10,442
)
(3,154
)
Net loss and total comprehensive loss
$
(28,950
)
$
(38,585
)
Net loss per common share attributable to
common shareholders (a)
Basic
$
(3.01
)
$
(4.38
)
Diluted
$
(3.01
)
$
(4.38
)
Weighted average number of common shares
outstanding (a)
Basic
9,625,780
8,803,468
Diluted
9,625,780
8,803,468
(a)
All share information and
balances have been retroactively adjusted to reflect the 1-for-5
reverse stock split that was effective November 9, 2020.
J.Jill, Inc.
Consolidated Statements of
Operations and Comprehensive Income
(Unaudited)
(Amounts in thousands, except
share and per share data)
For the Fifty-Two Weeks
Ended
January 30, 2021
February 1, 2020
Net sales
$
421,262
$
691,345
Cost of goods sold
178,387
262,766
Gross profit
242,875
428,579
Selling, general and administrative
expenses
343,448
406,744
Impairment of long-lived assets
33,777
2,325
Impairment of goodwill
17,900
119,428
Impairment of intangible assets
14,620
12,100
Operating loss
(166,870
)
(112,018
)
Fair value adjustment of derivative
1,005
—
Fair value adjustment of warrants -
related party
4,214
—
Interest expense, net
17,695
19,571
Interest expense, net - related party
534
—
Loss before income tax benefit
(190,318
)
(131,589
)
Income tax benefit
(48,906
)
(3,022
)
Net loss and total comprehensive loss
$
(141,412
)
$
(128,567
)
Net loss per common share attributable to
common shareholders (a)
Basic
$
(15.44
)
$
(14.69
)
Diluted
$
(15.44
)
$
(14.69
)
Weighted average number of common shares
outstanding (a)
Basic
9,159,686
8,749,865
Diluted
9,159,686
8,749,865
(a)
All share information and
balances have been retroactively adjusted to reflect the 1-for-5
reverse stock split that was effective November 9, 2020.
J.Jill, Inc.
Consolidated Balance
Sheets
(Unaudited)
(Amounts in thousands, except
common share data)
January 30, 2021
February 1, 2020
Assets
Current assets:
Cash
$
4,407
$
21,527
Accounts receivable
7,793
7,408
Inventories, net
58,034
72,599
Prepaid expenses and other current
assets
45,428
21,416
Total current assets
115,662
122,950
Property and equipment, net
73,906
107,645
Intangible assets, net
88,976
112,814
Goodwill
59,697
77,597
Operating lease assets, net
161,135
211,332
Other assets
199
1,650
Total assets
$
499,575
$
633,988
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
56,263
$
43,053
Accrued expenses and other current
liabilities
49,315
42,712
Current portion of long-term debt
2,799
2,799
Current portion of operating lease
liabilities
37,967
33,875
Borrowings under revolving credit
facility
11,146
-
Total current liabilities
157,490
122,439
Long-term debt, net of discount and
current portion
225,401
231,200
Long-term debt, net of discount and
current portion - related party
3,311
-
Deferred income taxes
12,776
31,034
Operating lease liabilities, net of
current portion
179,022
208,800
Warrants - related party
15,997
-
Derivative liability
2,436
-
Other liabilities
2,049
1,950
Total liabilities
598,482
595,423
Shareholders’ Equity (a)
Common stock, par value $0.01 per share;
50,000,000 shares authorized;
9,631,633 and 8,857,625 shares issued and
outstanding at January 30,
2021 and February 1, 2020,
respectively
96
89
Additional paid-in capital
129,363
125,430
Accumulated deficit
(228,366
)
(86,954
)
Total shareholders’ equity (deficit)
(98,907
)
38,565
Total liabilities and shareholders’
equity
$
499,575
$
633,988
(a)
All share information and
balances have been retroactively adjusted to reflect the 1-for-5
reverse stock split that was effective November 9, 2020.
J.Jill, Inc.
Reconciliation of GAAP Net
Income to Adjusted EBITDA
(Unaudited)
(Amounts in thousands)
For the Thirteen Weeks
Ended
January 30, 2021
February 1, 2020
Net loss
$
(28,950
)
$
(38,585
)
Fair value adjustment of derivative
720
-
Fair value adjustment of warrants -
related party
2,871
-
Interest expense, net
4,187
4,719
Interest expense, net - related party
402
-
Income tax benefit
(10,442
)
(3,154
)
Depreciation and amortization
8,024
9,618
Equity-based compensation expense (a)
546
428
Write-off of property and equipment
(b)
593
66
Adjustment for costs to exit retail stores
(c)
(486
)
—
Impairment of goodwill and intangible
assets
8,000
36,100
Impairment of long-lived assets (d)
6,284
261
Transaction costs (e)
1,278
—
Other non-recurring expenses (f)
427
2,337
Adjusted EBITDA
$
(6,546
)
$
11,790
For the Fifty-Two Weeks
Ended
January 30, 2021
February 1, 2020
Net loss
$
(141,412
)
$
(128,567
)
Fair value adjustment of derivative
1,005
—
Fair value adjustment of warrants -
related party
4,214
—
Interest expense, net
17,695
19,571
Interest expense, net - related party
534
—
Income tax benefit
(48,906
)
(3,022
)
Depreciation and amortization
33,696
37,925
Equity-based compensation expense (a)
2,160
3,972
Write-off of property and equipment
(b)
969
151
Adjustment for costs to exit retail stores
(c)
(1,444
)
—
Impairment of goodwill and intangible
assets
32,520
131,528
Impairment of long-lived assets (d)
33,777
2,325
Transaction costs (e)
21,914
—
Other non-recurring expenses (f)
2,820
1,597
Adjusted EBITDA
$
(40,458
)
$
65,480
(a)
Represents expenses associated
with equity incentive instruments granted to our management and
board of directors. Incentive instruments are accounted for as
equity-classified awards with the related compensation expense
recognized based on fair value at the date of the grant.
(b)
Represents the 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.
(e)
Represents items management
believes are not indicative of ongoing operating performance. In
Fiscal Year 2020, these expenses are primarily composed of legal
and advisory costs.
(f)
Represents items management
believes are not indicative of ongoing operating performance. In
Fiscal Year 2020, these expenses are primarily composed of
incremental one-time costs related to COVID-19 pandemic. In Fiscal
Year 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
January 30, 2021
February 1, 2020
Operating loss
$
(31,212
)
$
(37,020
)
Adjustment for costs to exit retail stores
(a)
(486
)
—
Impairment of goodwill and intangible
assets
8,000
36,100
Impairment of long-lived assets (b)
6,284
261
Transaction costs (c)
1,278
—
Other non-recurring items (d)
427
2,337
Adjusted (loss) income from Operations
$
(15,709
)
$
1,678
For the Fifty-Two Weeks
Ended
January 30, 2021
February 1, 2020
Operating loss
$
(166,870
)
$
(112,018
)
Adjustment for costs to exit retail stores
(a)
(1,444
)
—
Impairment of goodwill and intangible
assets
32,520
131,528
Impairment of long-lived assets (b)
33,777
2,325
Transaction costs (c)
21,914
—
Other non-recurring items (d)
2,820
1,597
Adjusted (loss) income from Operations
$
(77,283
)
$
23,432
(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.
(c)
Represents items management
believes are not indicative of ongoing operating performance. In
Fiscal Year 2020, these expenses are primarily composed of legal
and advisory costs.
(d)
Represents items management
believes are not indicative of ongoing operating performance. In
Fiscal Year 2020, these expenses are primarily composed of
incremental one-time costs related to COVID-19 pandemic. In Fiscal
Year 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
January 30, 2021
February 1, 2020
Net loss and total comprehensive loss
$
(28,950
)
$
(38,585
)
Add: Income tax benefit
(10,442
)
(3,154
)
Loss before income tax benefit
(39,392
)
(41,739
)
Add: Fair value adjustment of
derivative
720
—
Add: Fair value adjustment of warrants -
related party
2,871
—
Add: Adjustment for costs to exit retail
stores
(486
)
—
Add: Impairment of goodwill and intangible
assets
8,000
36,100
Add: Impairment of long-lived assets
(a)
6,284
261
Add: Transaction costs (b)
1,278
—
Add: Other non-recurring expenses(c)
427
1,911
Add: Accelerated equity-based compensation
expense
—
426
Adjusted loss before income tax
benefit
(20,298
)
(3,041
)
Less: Adjusted tax benefit (d)
(5,277
)
(822
)
Adjusted net loss
$
(15,021
)
$
(2,219
)
Adjusted net loss per common share
attributable to common shareholders (e)
Basic
$
(1.56
)
$
(0.25
)
Diluted
$
(1.56
)
$
(0.25
)
Weighted average number of common shares
outstanding (e)
Basic
9,625,780
8,803,468
Diluted
9,625,780
8,803,468
(a)
Represents impairment of
long-lived assets related to the right-of-use asset and leasehold
improvements.
(b)
Represents items management
believes are not indicative of ongoing operating performance. In
Fiscal Year 2020, these expenses are primarily composed of legal
and advisory costs.
(c)
Represents items management
believes are not indicative of ongoing operating performance. In
Fiscal Year 2020, these expenses are primarily composed of
incremental one-time costs related to COVID-19 pandemic. In Fiscal
Year 2019, these expenses are primarily composed of a gain from
insurance proceeds and restructuring costs.
(d)
The adjusted tax provision for
adjusted net income is estimated by applying a rate of 26% for FY20
and 27% for FY19 to the adjusted income before provision for income
taxes.
(e)
All share information and
balances have been retroactively adjusted to reflect the 1-for-5
reverse stock split that was effective November 9, 2020.
J.Jill, Inc.
Reconciliation of GAAP Net
Income to Adjusted Net Income
(Unaudited)
(Amounts in thousands, except
share and per share data)
For the Fifty-Two Weeks
Ended
January 30, 2021
February 1, 2020
Net loss and total comprehensive loss
$
(141,412
)
$
(128,567
)
Add: Income tax benefit
(48,906
)
(3,022
)
Loss before income tax benefit
(190,318
)
(131,589
)
Add: Fair value adjustment of
derivative
1,005
—
Add: Fair value adjustment of warrants -
related party
4,214
—
Add: Adjustment for costs to exit retail
stores
(1,444
)
—
Add: Impairment of goodwill and intangible
assets
32,520
131,528
Add: Impairment of long-lived assets
(a)
33,777
2,325
Add: Transaction costs (b)
21,914
—
Add: Other non-recurring expenses(c)
2,820
1,171
Add: Accelerated equity-based compensation
expense
—
426
Adjusted (loss) income before income tax
benefit
(95,512
)
3,861
Less: Adjusted tax (benefit) provision
(d)
(24,833
)
1,042
Adjusted net (loss) income
$
(70,679
)
$
2,819
Adjusted net (loss) income per common
share attributable to common shareholders (e)
Basic
$
(7.72
)
$
0.32
Diluted
$
(7.72
)
$
0.32
Weighted average number of common shares
outstanding (e)
Basic
9,159,686
8,749,865
Diluted
9,159,686
8,749,865
(a)
Represents impairment of
long-lived assets related to the right-of-use asset and leasehold
improvements.
(b)
Represents items management
believes are not indicative of ongoing operating performance. In
Fiscal Year 2020, these expenses are primarily composed of legal
and advisory costs.
(c)
Represents items management
believes are not indicative of ongoing operating performance. In
Fiscal Year 2020, these expenses are primarily composed of
incremental one-time costs related to COVID-19 pandemic. In Fiscal
Year 2019, these expenses are primarily composed of a gain from
insurance proceeds and restructuring costs.
(d)
The adjusted tax provision for
adjusted net income is estimated by applying a rate of 26% for FY20
and 27% for FY19 to the adjusted income before provision for income
taxes.
(e)
All share information and
balances have been retroactively adjusted to reflect the 1-for-5
reverse stock split that was effective November 9, 2020.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210316005364/en/
Investor Contact: Caitlin Churchill 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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