Destination XL Group, Inc. (NASDAQ: DXLG), the largest omni-channel
specialty retailer of big and tall men's clothing, today reported
operating results for the third quarter of fiscal 2020 and provided
a business update with respect to the COVID-19 pandemic.
Third Quarter Financial
Highlights
- Total sales for the third quarter were $85.2 million, down
20.1% from $106.6 million in the prior-year third quarter.
- Cash Flow from operations for the first nine months of ($8.6)
million as compared to the prior year of $(14.4) million. Free Cash
Flow was ($11.6) million as compared to ($25.4) million last
year.
- Net loss for the third quarter was $(7.0) million as compared
to a net loss of $(7.2) million in the prior year’s third
quarter.
- Adjusted EBITDA for the third quarter was $(1.7) million
compared to $1.7 million in the prior-year quarter.
- At October 31, 2020, cash balance of $21.4 million, total debt
of $82.9 million and remaining availability under our credit
facility of $13.5 million.
Management’s Comments
“For the past eight months we’ve been pivoting to
position DXL for the long-term recovery from COVID-19 and future
growth. In the third quarter, comparable sales which were down
20.5% improved from the second quarter, when our comparable sales
were down 38.6%. Our store performance has improved each month from
June through September with improvements in both traffic and
conversion. In Direct, DXL.com was up 28.4%, with total Direct up
18.2% and total Direct penetration at 33.4%,” said Harvey Kanter,
President and Chief Executive Officer.
“Despite the unrelenting impact of COVID-19 on the
apparel industry, we believe our actions give DXL the strongest
opportunity to succeed. Our digital transformation efforts, begun
in mid-2019, have measurably impacted our ability to serve our core
consumer in this volatile environment and provides us with even
greater opportunity to navigate changes in consumer behavior. The
fact that so many of us are staying close to home and avoiding
large social gatherings has resulted in a solid improvement in many
of our core and basic categories. Our customers still need to
replenish basics and, in time, we know he will also need to update
his wardrobe. We expect our business will continue to be challenged
until we are able to start gathering socially in larger groups
again and we see an increase in demand for event-based shopping
visits, but we have cautious optimism for continued
improvement.”
Kanter continued, “We recently completed our
second corporate restructuring in the past 9 months to provide the
Company with more financial flexibility. Together, the two
restructurings have reduced our corporate workforce by 29% and our
store workforce by 54% since the beginning of the year. We have
also eliminated professional services and certain marketing costs
to further right-size our cost structure. Our ability to
restructure has been critical as it creates operating leverage and
allows us to better withstand a decline in revenue. Reducing our
cost structure and preserving our liquidity have been of paramount
importance to our long-term recovery.
“From a liquidity perspective, we had a cash
balance of $21.4 million and total debt of $82.9 million at the end
of the third quarter. Total debt, net of cash, improved to $61.5
million compared to $77.5 million in the third quarter last year.
Our focus on cash is relentless. With the significant steps we have
taken to align our SG&A costs, we are now turning our attention
to our landlord community in an attempt to right-size our lease
structure. We have a cash management plan and we believe that we
have sufficient liquidity to navigate our working capital needs for
the next 12 months without additional financing and assuming no
further significant shutdowns of the economy,” Mr. Kanter
concluded.
Third Quarter Results
Sales
Total sales for the third quarter of fiscal 2020
decreased 20.1% to $85.2 million from $106.6 million in the third
quarter of fiscal 2019. Comparable sales for the quarter were down
20.5% to last year. The 20.5% decrease in comparable sales was
primarily driven by our stores, which were down 31.5% from the
prior year’s third quarter, partially offset by our direct
business, which was up 18.2%. The increase in our direct business
was principally due to our DXL.com e-commerce site, which had a
sales increase of 28.4%.
All of our stores had reopened by the end of June,
and we were seeing month-over-month improvements in both traffic
and conversion through September. However, with the resurgence of
the virus, fires on the west coast and distractions from the
election, our sales momentum slowed in October.
Our wholesale business contributed $5.0 million in
sales during the third quarter, as compared to $2.9 million in the
prior year, principally due to Amazon Essentials. We saw demand for
masks, which was significant for us in the second quarter, drop
during the third quarter.
Gross Margin
For the third quarter of fiscal 2020, our gross
margin rate, inclusive of occupancy costs, was 36.5% as compared to
a gross margin rate of 41.1% for the third quarter of fiscal 2019.
Our gross margin rate declined 4.6% from a decrease of 2.8% in
merchandise margins and a decrease of 1.8% due to the deleveraging
in occupancy costs. Merchandise margins have improved from the
second quarter of fiscal 2020, when merchandise margins were down
11.1% as we were highly promotional. During the third quarter, we
made progress with improving our markdowns by focusing on more
targeted promotions with a greater gross margin impact as well as
improving on our clearance markdowns. Because of the growth in our
direct channel and free shipping promotions, shipping costs
continued to increase over the prior year and are expected to
remain elevated in the fourth quarter.
Selling, General & Administrative
As a percentage of sales, SG&A (selling,
general and administrative) expenses for the third quarter of
fiscal 2020 were 38.5% as compared to 39.5% for the third quarter
of fiscal 2019. On a dollar basis, SG&A decreased by $9.3
million, or 22.1%, as compared to the third quarter of fiscal 2019.
We continue to take proactive measures to reduce our operating
costs given the lower sales base. The decrease in the third quarter
was primarily driven by a decrease in store and corporate payroll
and cost reduction efforts throughout all areas of our
business.
Subsequent to the end of the third quarter on
November 2, 2020, we implemented an additional corporate
restructuring to realign our SG&A costs with our sales levels.
The restructuring included the termination of certain service
agreements, the elimination of certain professional services and
the elimination of an additional 45 positions in the corporate
workforce. These additional actions are expected to result in
annualized savings of approximately $9.7 million. This year, we
have reduced our field organization by approximately 54% and our
corporate workforce by 29%. With the reduced sales levels and store
traffic, our stores are operating at minimal staffing levels and
reduced operating hours. The Company expects to incur an aggregate
charge of approximately $0.5 million in the fourth quarter of
fiscal 2020 related to employee severance and one-time termination
benefits.
Management views SG&A expenses through two
primary cost centers: Customer Facing Costs and Corporate Support
Costs. Customer Facing Costs, which include store payroll,
marketing and other store operating costs, represented 19.2% of
sales in the third quarter of fiscal 2020 as compared to 22.0% of
sales in the third quarter of last year. Corporate Support Costs,
which include the distribution center and corporate overhead costs,
represented 19.3% of sales in the third quarter of fiscal 2020
compared to 17.5% of sales in the third quarter of last
year.
Impairment of Assets
During the third quarter of fiscal 2020, the
Company recorded a $1.2 million non-cash gain on the reduction of
its operating lease liability in connection with its decision to
close certain retail stores, which resulted in a revaluation of the
lease liability. Approximately $1.1 million of this non-cash gain,
related to leases where the right-of-use assets had previously been
impaired, has been recorded as a reduction of the previously
recorded impairment and is included in the Impairment of Assets
line of the Consolidated Statement of Operations for the three and
nine months ended October 31, 2020. The remaining gain of $0.1
million is included as a reduction in store occupancy costs and is
reflected in the Cost of Goods Sold, Including Occupancy Costs on
the Consolidated Statement of Operations for the three and nine
months ended October 31, 2020.
Net Loss
For the third quarter of fiscal 2020, we had a net
loss of $(7.0) million, or $(0.14) per diluted share, compared with
a net loss of $(7.2) million, or $(0.14) per diluted share, for the
third quarter of fiscal 2019.
On a non-GAAP basis, adjusting for a normalized
tax rate of 26% for both periods, the adjusted net loss for the
third quarter of fiscal 2020 was ($0.12) per diluted share, as
compared to an adjusted net loss of ($0.08) per diluted share for
the third quarter of fiscal 2019.
Adjusted EBITDA
Adjusted earnings before interest, taxes,
depreciation and amortization (Adjusted EBITDA), a non-GAAP
measure, for the third quarter of fiscal 2020 were $(1.7) million,
compared to $1.7 million for the third quarter of fiscal 2019.
Cash Flow
Cash flow from operations for the first nine
months of fiscal 2020 was $(8.6) million as compared to $(14.4)
million for the first nine months of fiscal 2019 and free cash flow
was $(11.6) million for the first nine months of fiscal 2020 as
compared to $(25.4) million for the first nine months of fiscal
2019.
Continuing to manage and preserve liquidity has
been a primary financial goal this quarter. We have eliminated
costs where possible and have reduced the majority of our capital
spending, except such spending necessary to our immediate business
needs. Our capital expenditures for the first nine months of fiscal
2020 were $2.9 million as compared to $11.0 million for the same
period last year.
|
|
For the nine months ended |
|
(in millions) |
|
October 31, 2020 |
|
|
November 2, 2019 |
|
Cash flow from operating activities (GAAP basis) |
|
$ |
(8.6 |
) |
|
$ |
(14.4 |
) |
Capital expenditures, infrastructure projects |
|
|
(2.0 |
) |
|
|
(7.2 |
) |
Capital expenditures for DXL stores |
|
|
(0.9 |
) |
|
|
(3.8 |
) |
Free Cash Flow (non-GAAP basis) |
|
$ |
(11.6 |
) |
|
$ |
(25.4 |
) |
Non-GAAP Measures
Adjusted EBITDA, adjusted net loss, adjusted net
loss per diluted share and free cash flow are non-GAAP financial
measures. Please see “Non-GAAP Measures” below and reconciliations
of these non-GAAP measures to the comparable GAAP measures that
follow in the tables below.
Balance Sheet & Liquidity
Managing our liquidity and maintaining our
financial flexibility continues to be our primary goal as we
navigate through this pandemic. To this end, we have taken several
actions since March, including but not limited to: (i) amending our
credit facility to increase our borrowing base, (ii) decreasing our
payroll and operating costs to align with the expected decrease in
revenues, (iii) working with our landlords on short-term rent
relief, (iv) cancellation of purchase orders, and (v) negotiating
extended payment terms with our merchandise vendors.
At the end of the third quarter of fiscal 2020, we
had a cash balance of $21.4 million, total debt (which consists of
our revolving credit facility and long-term FILO loan) of $82.9
million and remaining availability under our credit facility of
$13.5 million. Our availability under our credit facility is based
on inventory levels, which are intentionally lower given the
current sales environment. Total debt less cash for the third
quarter is $61.5 million compared to $77.5 million in the third
quarter of fiscal 2019.
Our accounts payable balance at the end of the
third quarter of fiscal 2020 was $28.6 million as compared to $27.0
million at the end of the third quarter of fiscal 2019. Included in
the October 31, 2020, balance are $1.3 million of promissory notes,
payable through April 1, 2021. We continue to work with our vendors
to secure extended payment terms where possible to better manage
our working capital.
As of October 31, 2020, our inventory decreased
approximately $25.3 million to $94.9 million, as compared to $120.2
million at November 2, 2019. We are managing our inventory
conservatively, slowing replenishment and reducing fall receipts to
align with the current sales trend. Our objective is to maintain a
healthy inventory, which will include narrowing our assortment
while also continuing to manage clearance levels. At October 31,
2020, our clearance inventory decreased by approximately $0.8
million, representing 11.8% of our total inventory, as compared to
10.0% at November 2, 2019.
Retail Store Information
Total retail square footage has steadily decreased
since the end of fiscal 2017:
|
Year End 2017 |
|
Year End 2018 |
|
Year End 2019 |
|
At October 31, 2020 |
|
|
# of Stores |
|
Sq Ft. (000’s) |
|
# of Stores |
|
Sq Ft. (000’s) |
|
# of Stores |
|
Sq Ft. (000’s) |
|
# of Stores |
|
Sq Ft. (000’s) |
|
DXL retail |
|
212 |
|
|
1,665 |
|
|
216 |
|
|
1,684 |
|
|
228 |
|
|
1,729 |
|
|
227 |
|
|
1,724 |
|
DXL outlets |
|
14 |
|
|
72 |
|
|
15 |
|
|
78 |
|
|
17 |
|
|
82 |
|
|
17 |
|
|
82 |
|
CMXL retail |
|
78 |
|
|
268 |
|
|
66 |
|
|
221 |
|
|
50 |
|
|
164 |
|
|
49 |
|
|
160 |
|
CMXL outlets |
|
33 |
|
|
103 |
|
|
30 |
|
|
91 |
|
|
28 |
|
|
85 |
|
|
23 |
|
|
69 |
|
Rochester Clothing |
|
5 |
|
|
51 |
|
|
5 |
|
|
51 |
|
|
- |
|
|
- |
|
|
- |
|
- |
|
Total |
|
342 |
|
|
2,159 |
|
|
332 |
|
|
2,125 |
|
|
323 |
|
|
2,060 |
|
|
316 |
|
|
2,035 |
|
Of the 316 stores in our portfolio as of October
31, 2020, 52 stores are controlled by lease agreements that have a
natural expiration or kick-out option by the end of fiscal
2021; 44 stores are controlled by lease agreements that have a
natural expiration or kick-out option in fiscal 2022; and 220
stores are controlled by lease agreements that have a natural
expiration or kick-out option in fiscal 2023 or later. We review
store leases on a case-by-case basis and will make decisions to
renew or terminate leases based on specific store performance and
their overall strategic importance to the brand.
E-Commerce Information
The Company distributes its licensed branded and
private label products directly to consumers through its stores,
website and third-party marketplaces. E-commerce sales, which we
also refer to as direct sales, are defined as sales that originate
online, whether through our website, at the store level or through
a third-party marketplace. For the third quarter of fiscal 2020,
our direct sales increased by $4.1 million to 33.4% of retail
segment sales as compared to 21.9% for the third quarter of fiscal
2019. The increase in sales growth and penetration was driven by a
28.4% increase in sales on our own website at DXL.com. Store
traffic during the third quarter of fiscal 2020 has been slow to
rebound and with the resurgence of the virus in much of the
country, store traffic may continue to be down. As a result, we
continue to see our e-commerce business playing a vital role in
enabling us to continue to engage with our customers. Our direct
business will be a critical component of how we navigate through
the remainder of fiscal 2020 and beyond.
Conference Call
The Company will hold a conference call to review
its financial results today, November 20, 2020 at 9:00 a.m. ET. To
listen to the live webcast, visit the "Investor Relations" section
of the Company's website. The live call also can be accessed by
dialing: (866) 680-2311. Please reference conference ID:
1282108. An archived version of the webcast may be
accessed by visiting the "Events" section of the Company's website
for up to one year.
During the conference call, the Company may
discuss and answer questions concerning business and financial
developments and trends. The Company’s responses to questions, as
well as other matters discussed during the conference call, may
contain or constitute information that has not been disclosed
previously.
Non-GAAP Measures
In addition to financial measures prepared in
accordance with U.S. generally accepted accounting principles
(“GAAP”), this press release contains non-GAAP financial measures,
including adjusted EBITDA, adjusted net loss, adjusted net loss per
diluted share and free cash flow. The presentation of these
non-GAAP measures is not in accordance with GAAP, and should not be
considered superior to or as a substitute for net loss, net loss
per diluted share or cash flows from operating activities or any
other measure of performance derived in accordance with GAAP. In
addition, not all companies calculate non-GAAP financial measures
in the same manner and, accordingly, the non-GAAP measures
presented in this release may not be comparable to similar measures
used by other companies. The Company believes the inclusion of
these non-GAAP measures help investors gain a better understanding
of the Company’s performance, especially when comparing such
results to previous periods, and that they are useful as an
additional means for investors to evaluate the Company's operating
results, when reviewed in conjunction with the Company's GAAP
financial statements. Reconciliations of these non-GAAP measures to
their comparable GAAP measures are provided in the tables
below.
The Company believes that adjusted EBITDA
(calculated as earnings before interest, taxes, depreciation and
amortization and excluding CEO transition costs, exit costs
associated with London operations and asset impairment charges, if
applicable) is useful to investors in evaluating its performance
and is a key metric to measure profitability and economic
productivity.
The Company has fully reserved against its
deferred tax assets and, therefore, its net loss is not reflective
of earnings assuming a “normal” tax position. In addition, we have
added back charges for costs associated with the CEO transition,
exit costs associated with London operations and asset impairment
charges, if applicable, because it provides comparability of
results without these charges. Adjusted net loss provides investors
with a useful indication of the financial performance of the
business, on a comparative basis, assuming a normalized effective
tax rate of 26%.
Free cash flow is a metric that management uses to
monitor liquidity. Management believes this metric is important to
investors because it demonstrates the Company’s ability to
strengthen liquidity while supporting its capital projects and new
store growth. Free cash flow is calculated as cash flow from
operating activities, less capital expenditures and excludes the
mandatory and discretionary repayment of debt.
About Destination XL Group,
Inc.
Destination XL Group, Inc. is the largest retailer
of men’s clothing in sizes XL and up, with operations throughout
the United States as well as in Toronto, Canada. In addition to DXL
Big + Tall retail and outlet stores, subsidiaries of Destination XL
Group, Inc. also operate Casual Male XL retail and outlet stores,
and e-commerce sites, including DXL.com. DXL.com offers a
multi-channel solution similar to the DXL store experience with the
most extensive selection of online products available anywhere for
Big + Tall men. The Company is headquartered in Canton,
Massachusetts, and its common stock is listed on the NASDAQ Capital
Market under the symbol "DXLG." For more information, please visit
the Company's investor relations website:
https://investor.dxl.com.
Forward-Looking Statements
Certain statements and information contained in this press release
constitute forward-looking statements under the federal securities
laws, including statements regarding the Company’s ability to
withstand the impact of the COVID-19 pandemic on our business and
results in fiscal 2020 and to manage through the pandemic, our
efforts to restructure and reduce costs and, right size our lease
structure, expected inventory levels for the remainder of fiscal
2020, the impact of direct sales on results in fiscal 2020,
expected annualized savings from additional restructuring actions
taken in November 2020, the ability to keep some or all of our
reopened stores open and operating during more normalized hours,
and our expected liquidity for the next 12 months. The discussion
of forward-looking information requires management of the Company
to make certain estimates and assumptions regarding the Company's
strategic direction and the effect of such plans on the Company's
financial results. The Company's actual results and the
implementation of its plans and operations may differ materially
from forward-looking statements made by the Company. The Company
encourages readers of forward-looking information concerning the
Company to refer to its filings with the Securities and Exchange
Commission, including without limitation, its Annual Report on Form
10-K filed on March 19, 2020, its Quarterly Reports on Form 10-Q
and other filings with the Securities and Exchange Commission that
set forth certain risks and uncertainties that may have an impact
on future results and direction of the Company, including risks
relating to the COVID-19 pandemic and its impact on the Company’s
results of operations, the Company’s execution of its DXL strategy
and ability to grow its market share, predict customer tastes and
fashion trends, forecast sales growth trends and compete
successfully in the United States men’s big and tall apparel
market.
Forward-looking statements contained in this press
release speak only as of the date of this release. Subsequent
events or circumstances occurring after such date may render these
statements incomplete or out of date. The Company undertakes no
obligation and expressly disclaims any duty to update such
statements.
Investor Contact:ICR, Inc.Tom Filandro,
646-277-1235Tom.Filandro@icrinc.com
DESTINATION XL GROUP, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
For the nine months ended |
|
|
|
October 31, 2020 |
|
|
November 2, 2019 |
|
|
October 31, 2020 |
|
|
November 2, 2019 |
|
Sales |
|
$ |
85,171 |
|
|
$ |
106,581 |
|
|
$ |
218,840 |
|
|
$ |
342,799 |
|
Cost of goods sold including occupancy |
|
|
54,099 |
|
|
|
62,776 |
|
|
|
153,057 |
|
|
|
195,012 |
|
Gross profit |
|
|
31,072 |
|
|
|
43,805 |
|
|
|
65,783 |
|
|
|
147,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
32,820 |
|
|
|
42,108 |
|
|
|
90,727 |
|
|
|
134,197 |
|
CEO transition costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
702 |
|
Exit costs associated with London operations |
|
|
— |
|
|
|
1,737 |
|
|
|
— |
|
|
|
1,737 |
|
Impairment of assets |
|
|
(1,135 |
) |
|
|
— |
|
|
|
15,200 |
|
|
|
— |
|
Depreciation and amortization |
|
|
5,302 |
|
|
|
6,329 |
|
|
|
16,374 |
|
|
|
18,877 |
|
Total expenses |
|
|
36,987 |
|
|
|
50,174 |
|
|
|
122,301 |
|
|
|
155,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(5,915 |
) |
|
|
(6,369 |
) |
|
|
(56,518 |
) |
|
|
(7,726 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(1,080 |
) |
|
|
(870 |
) |
|
|
(2,873 |
) |
|
|
(2,585 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision (benefit) for income taxes |
|
|
(6,995 |
) |
|
|
(7,239 |
) |
|
|
(59,391 |
) |
|
|
(10,311 |
) |
Provision (benefit) for income taxes |
|
|
27 |
|
|
|
(49 |
) |
|
|
71 |
|
|
|
(78 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(7,022 |
) |
|
$ |
(7,190 |
) |
|
$ |
(59,462 |
) |
|
$ |
(10,233 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share - basic and diluted |
|
$ |
(0.14 |
) |
|
$ |
(0.14 |
) |
|
$ |
(1.16 |
) |
|
$ |
(0.21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
51,545 |
|
|
|
50,089 |
|
|
|
51,127 |
|
|
|
49,853 |
|
Diluted |
|
|
51,545 |
|
|
|
50,089 |
|
|
|
51,127 |
|
|
|
49,853 |
|
DESTINATION XL GROUP, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
October 31, 2020, February 1, 2020 and November 2, 2019 |
(In thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 31, |
|
February 1, |
|
November 2, |
|
|
|
2020 |
|
2020 |
|
2019 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
21,417 |
|
$ |
4,338 |
|
$ |
5,462 |
|
Inventories |
|
|
94,898 |
|
|
102,420 |
|
|
120,211 |
|
Other current assets |
|
|
10,757 |
|
|
17,102 |
|
|
15,511 |
|
Property and equipment, net |
|
|
60,617 |
|
|
78,279 |
|
|
83,371 |
|
Operating lease right-of-use assets |
|
|
147,540 |
|
|
186,413 |
|
|
195,971 |
|
Intangible assets |
|
|
1,150 |
|
|
1,150 |
|
|
1,150 |
|
Other assets |
|
|
540 |
|
|
1,215 |
|
|
3,364 |
|
Total assets |
|
$ |
336,919 |
|
$ |
390,917 |
|
$ |
425,040 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
28,580 |
|
$ |
31,763 |
|
$ |
27,038 |
|
Accrued expenses and other liabilities |
|
|
27,886 |
|
|
23,390 |
|
|
24,905 |
|
Operating leases |
|
|
196,522 |
|
|
223,227 |
|
|
233,374 |
|
Long-term debt |
|
|
14,855 |
|
|
14,813 |
|
|
14,799 |
|
Borrowings under credit facility |
|
|
68,019 |
|
|
39,301 |
|
|
68,185 |
|
Stockholders' equity |
|
|
1,057 |
|
|
58,423 |
|
|
56,739 |
|
Total liabilities and stockholders' equity |
|
$ |
336,919 |
|
$ |
390,917 |
|
$ |
425,040 |
|
CERTAIN COLUMNS IN THE FOLLOWING TABLES MAY NOT FOOT DUE TO
ROUNDING |
|
GAAP TO NON-GAAP RECONCILIATION OF ADJUSTED NET
LOSS |
AND ADJUSTED NET LOSS PER DILUTED SHARE |
(unaudited) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
For the nine months ended |
|
|
|
October 31, 2020 |
|
|
November 2, 2019 |
|
|
October 31, 2020 |
|
|
November 2, 2019 |
|
|
|
$ |
|
|
Per diluted share |
|
|
$ |
|
|
Per diluted share |
|
|
$ |
|
|
Per diluted share |
|
|
$ |
|
|
Per diluted share |
|
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (GAAP basis) |
|
$ |
(7,022 |
) |
|
$ |
(0.14 |
) |
|
$ |
(7,190 |
) |
|
$ |
(0.14 |
) |
|
$ |
(59,462 |
) |
|
$ |
(1.16 |
) |
|
$ |
(10,233 |
) |
|
$ |
(0.21 |
) |
Adjust: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CEO transition costs |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
702 |
|
|
|
|
|
Exit costs associated with London operations |
|
|
- |
|
|
|
|
|
|
|
1,737 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
1,737 |
|
|
|
|
|
Impairment of assets |
|
|
(1,135 |
) |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
15,200 |
|
|
|
|
|
|
|
- |
|
|
|
|
|
Add back actual income tax provision (benefit) |
|
|
27 |
|
|
|
|
|
|
|
(49 |
) |
|
|
|
|
|
|
71 |
|
|
|
|
|
|
|
(78 |
) |
|
|
|
|
Add income tax benefit, assuming a normal tax rate of 26% |
|
|
2,114 |
|
|
|
|
|
|
|
1,431 |
|
|
|
|
|
|
|
11,490 |
|
|
|
|
|
|
|
2,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss (non-GAAP basis) |
|
$ |
(6,016 |
) |
|
$ |
(0.12 |
) |
|
$ |
(4,071 |
) |
|
$ |
(0.08 |
) |
|
$ |
(32,701 |
) |
|
$ |
(0.64 |
) |
|
$ |
(5,825 |
) |
|
$ |
(0.12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding on a diluted basis |
|
|
|
|
|
|
51,545 |
|
|
|
|
|
|
|
50,089 |
|
|
|
|
|
|
|
51,127 |
|
|
|
|
|
|
|
49,853 |
|
GAAP TO NON-GAAP RECONCILIATION OF ADJUSTED
EBITDA |
(unaudited) |
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
For the nine months ended |
|
|
|
October 31, 2020 |
|
|
November 2, 2019 |
|
|
October 31, 2020 |
|
|
November 2, 2019 |
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (GAAP basis) |
|
$ |
(7.0 |
) |
|
$ |
(7.2 |
) |
|
$ |
(59.5 |
) |
|
$ |
(10.2 |
) |
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CEO transition costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.7 |
|
Exit costs associated with London operations |
|
|
- |
|
|
|
1.7 |
|
|
|
- |
|
|
|
1.7 |
|
Impairment of assets |
|
|
(1.1 |
) |
|
|
- |
|
|
|
15.2 |
|
|
|
- |
|
Provision (benefit) for income taxes |
|
|
- |
|
|
|
- |
|
|
|
0.1 |
|
|
|
(0.1 |
) |
Interest expense |
|
|
1.1 |
|
|
|
0.9 |
|
|
|
2.9 |
|
|
|
2.6 |
|
Depreciation and amortization |
|
|
5.3 |
|
|
|
6.3 |
|
|
|
16.4 |
|
|
|
18.9 |
|
Adjusted EBITDA (non-GAAP basis) |
|
$ |
(1.7 |
) |
|
$ |
1.7 |
|
|
$ |
(24.9 |
) |
|
$ |
13.6 |
|
GAAP TO NON-GAAP RECONCILIATION OF FREE CASH
FLOW |
(unaudited) |
|
|
For the nine months ended |
|
(in millions) |
|
October 31, 2020 |
|
|
November 2, 2019 |
|
Cash flow from operating activities (GAAP basis) |
|
$ |
(8.6 |
) |
|
$ |
(14.4 |
) |
Capital expenditures, infrastructure projects |
|
|
(2.0 |
) |
|
|
(7.2 |
) |
Capital expenditures for DXL stores |
|
|
(0.9 |
) |
|
|
(3.8 |
) |
Free Cash Flow (non-GAAP basis) |
|
$ |
(11.6 |
) |
|
$ |
(25.4 |
) |
|
|
|
|
|
|
|
|
|
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