Steve Madden (Nasdaq: SHOO), a leading designer and marketer of
fashion-forward footwear, accessories and apparel for women, men
and children, today announced financial results for the fourth
quarter and full year ended December 31, 2020, and the
reinstatement of a quarterly cash dividend.
Amounts referred to as “Adjusted”
exclude the items that are described under the heading “Non-GAAP
Adjustments.”
The Company reclassified commission and
licensing fee income to Total Revenue and reclassified its
respective expenses into Operating Expenses from previously labeled
Commission and Licensing Fee Income - Net on the Company's
Consolidated Statement of Operations for each period
provided.
For the Fourth Quarter
2020:
- Revenue decreased 15.9% to $353.0
million compared to $419.6 million in the same period of 2019.
- Gross margin was 38.3% compared to
37.7% in the same period of 2019. Adjusted gross margin increased
40 basis points to 38.2% compared to 37.8% in the same period of
2019.
- Operating expenses as a percentage
of revenue were 31.8% compared to 33.1% in the same period of 2019.
Adjusted operating expenses as a percentage of revenue were 30.9%
compared to 30.0% in the same period of 2019.
- Income from operations totaled
$21.3 million, or 6.0% of revenue, compared to $19.5 million, or
4.6% of revenue, in the same period of 2019. Adjusted income from
operations was $25.6 million, or 7.3% of revenue, compared to
Adjusted income from operations of $33.0 million, or 7.9% of
revenue, in the same period of 2019.
- Net income
attributable to Steven Madden, Ltd. was $22.6 million, or $0.28 per
diluted share, compared to $17.8 million, or $0.21 per diluted
share, in the same period of 2019. Adjusted net income attributable
to Steven Madden, Ltd. was $21.8 million, or $0.27 per diluted
share, compared to $32.2 million, or $0.39 per diluted share, in
the same period of 2019.
Edward Rosenfeld, Chairman and Chief Executive
Officer, commented, “While the COVID-19 pandemic continues to have
a negative impact on our business, we were pleased with our results
in the fourth quarter, which exceeded our expectations and showed
strong sequential improvement from the third quarter. We faced
unprecedented challenges in 2020, but we relied on our strengths –
an agile business model, a strong balance sheet, and our talented
and resourceful employees – to successfully navigate the crisis. We
continued investing in our brands and our digital capabilities
while reducing expenses in other areas, and we utilized our
test-and-react strategy and speed-to-market capability to quickly
adjust our product mix to align with changing consumer
preferences.
“As we look ahead, we remain focused on
delivering trend-right product, deepening connections with our
consumers, enhancing our digital commerce business, and efficiently
managing our inventory and expenses. And while we are cautious on
the near-term outlook due to continued headwinds from COVID-19, we
are confident that the steps we have taken during the crisis –
combined with the strength of our brands and our business model –
leave us well-positioned to capitalize on market share
opportunities and create value for our stakeholders over the long
term.”
Fourth Quarter 2020 Segment
Results
Revenue for the wholesale business decreased 16.2% to $263.0
million in the fourth quarter of 2020, including a 19.7% decline in
wholesale footwear and a 5.9% decline in wholesale
accessories/apparel. Gross margin in the wholesale business
decreased to 28.3% in the fourth quarter of 2020 compared to 29.2%
in the fourth quarter of 2019 due to the disposal of excess
inventory resulting from COVID-19 disruption.
Retail revenue decreased 14.9% to $86.1 million
in the fourth quarter of 2020 due to a significant decline in the
brick-and-mortar business, partially offset by continued strength
in the e-commerce business. Retail gross margin rose 400 basis
points to 65.6% in the fourth quarter of 2020 compared to 61.6% in
the fourth quarter of 2019 due primarily to less discounting.
The Company ended the quarter with 218
company-operated retail locations, including seven Internet stores,
as well as 17 company-operated concessions in international
markets.
The Company’s effective tax rate for the fourth
quarter of 2020 was (10.9%) compared to 15.9% in the fourth quarter
of 2019. On an Adjusted basis, the effective tax rate for the
fourth quarter of 2020 was 13.3% compared to 6.3% in the fourth
quarter of 2019.
Full Year Ended December 31,
2020
For the full year ended December 31, 2020,
revenue decreased 32.8% to $1.2 billion from $1.8 billion in
2019.
Net loss attributable to Steven Madden, Ltd. was
($18.4) million, or ($0.23) per basic share, for the year ended
December 31, 2020 compared to net income attributable to Steven
Madden, Ltd. of $141.3 million, or $1.69 per diluted share, for the
year ended December 31, 2019. On an Adjusted basis, net income
attributable to Steven Madden, Ltd. was $51.8 million, or $0.64 per
diluted share, for the year ended December 31, 2020 compared to
$162.8 million, or $1.95 per diluted share, for the year ended
December 31, 2019.
Balance Sheet
As of December 31, 2020, cash, cash equivalents
and short-term investments totaled $287.2 million.
Reinstatement of Quarterly Cash
Dividend
The Company's Board of Directors approved the
reinstatement of a quarterly cash dividend. The quarterly dividend
of $0.15 per share is payable on March 26, 2021 to stockholders of
record as of the close of business on March 16, 2021.
Fiscal Year 2021 Outlook
Given the continued disruption and uncertainty
related to the ongoing COVID-19 pandemic, the Company is not
providing guidance at this time.
Non-GAAP Adjustments
Amounts referred to as “Adjusted” exclude the
items below.
For the fourth quarter 2020:
- $5.1 million pre-tax ($3.9 million
after-tax) expense in connection with payments and a provision for
early lease termination charges, included in operating
expenses.
- $1.7 million pre-tax ($1.4 million
after-tax) expense associated with the impairment of a
trademark.
- $1.2 million pre-tax ($0.9 million
after-tax) benefit in connection with the change in valuation of
contingent considerations, included in operating expenses.
- $1.1 million pre-tax ($0.9 million
after-tax) benefit associated with the recovery from the Payless
ShoeSource bankruptcy, included in operating expenses.
- $0.5 million pre-tax ($0.4 million
after-tax) benefit in connection with the termination of a joint
venture, included in cost of goods sold.
- $0.2 million pre-tax ($0.2 million
after-tax) expense in connection with restructuring and related
charges, included in operating expenses.
- $4.2 million tax benefit in
connection with the net operating loss carryback provision of the
CARES Act.
- $0.5 million tax benefit in
connection with the tax treatment of a prior-year bad debt.
- $0.7 million benefit in connection
with adjustments attributable to noncontrolling interest.
For the fourth quarter 2019:
- $8.9 million pre-tax ($8.9 million
after-tax) expense in connection with vendor support associated
with the Payless ShoeSource bankruptcy, included in operating
expenses.
- $4.0 million pre-tax ($3.0 million
after-tax) expense in connection with a provision for a legal
settlement and related fees, included in operating expenses.
- $0.4 million pre-tax ($0.3 million
after-tax) expense in connection with the termination of a joint
venture, included in cost of goods sold.
- $0.2 million pre-tax ($0.1 million
after-tax) expense in connection with the termination of a joint
venture, included in operating expenses.
- $0.2 million after-tax income in
connection with the termination of a joint venture, included in net
loss attributable to noncontrolling interest.
- $2.2 million tax expense in
connection with deferred tax and other tax adjustments.
For the fiscal year 2020:
- $44.3 million pre-tax ($33.8
million after-tax) expense associated with the impairment of
certain trademarks.
- $36.9 million pre-tax ($27.9
million after-tax) expense in connection with the impairment of
store fixed assets and lease right-of-use assets, included in
operating expenses.
- $13.5 million pre-tax ($10.3
million after-tax) expense in connection with payments and a
provision for early lease termination charges, included in
operating expenses.
- $7.1 million pre-tax ($5.4 million
after-tax) expense in connection with restructuring and related
charges, included in operating expenses.
- $6.2 million pre-tax ($4.8 million
after-tax) benefit in connection with the change in valuation of
contingent considerations, included in operating expenses.
- $2.0 million pre-tax ($1.5 million
after-tax) expense in connection with benefits provided to
furloughed employees, included in operating expenses.
- $1.1 million pre-tax ($0.9 million
after-tax) benefit associated with the recovery from the Payless
ShoeSource bankruptcy, included in operating expenses.
- $0.7 million pre-tax ($0.5 million
after-tax) expense in connection with a provision for a loan
receivable, included in operating expenses.
- $0.5 million pre-tax ($0.4 million
after-tax) benefit in connection with the termination of a joint
venture, included in cost of goods sold.
- $0.9 million loss in connection
with the impairment of store fixed assets, impairment of lease
right-of-use assets, restructuring and related charges attributable
to noncontrolling interest.
- $4.2 million tax benefit in
connection with the net operating loss carryback provision of the
CARES Act.
- $1.9 million net tax expense in
connection with deferred and foreign uncertain tax position
adjustments.
For the fiscal year 2019:
- $8.7 million pre-tax ($8.6 million
after-tax) expense in connection with vendor support, net of
recovery of bad debt expense associated with the Payless ShoeSource
bankruptcy, included in operating expenses.
- $5.4 million pre-tax ($4.1 million
after-tax) expense in connection with early lease termination
charges, included in operating expenses.
- $4.1 million pre-tax ($3.0 million
after-tax) expense associated with the impairment of a
trademark.
- $4.0 million pre-tax ($3.0 million
after-tax) expense in connection with provision for a legal
settlement and related fees, included in operating expenses.
- $1.9 million pre-tax ($1.4 million
after-tax) net benefit associated with the change in a contingent
liability and the acceleration of amortization related to the
termination of the Kate Spade license agreement as of December 31,
2019.
- $1.1 million pre-tax ($0.8 million
after-tax) expense in connection with the acquisitions of GREATS
and BB Dakota, included in operating expenses.
- $0.7 million pre-tax ($0.5 million
after-tax) expense in connection with restructuring and related
charges, included in operating expenses.
- $0.4 million pre-tax ($0.3 million
after-tax) expense in connection with the termination of a joint
venture, included in cost of goods sold.
- $0.2 million pre-tax ($0.1 million
after-tax) expense in connection with the termination of a joint
venture, included in operating expenses.
- $0.2 million after-tax income in
connection with the termination of a joint venture, included in net
income attributable to noncontrolling interest.
- $2.6 million tax expense in
connection with deferred tax and other tax adjustments.
Reconciliations of amounts on a GAAP basis to
Adjusted amounts are presented in the Non-GAAP Reconciliation
tables at the end of this release and identify and quantify all
excluded items.
Conference Call Information
Interested stockholders are invited to listen to
the fourth quarter and fiscal year 2020 earnings conference call
scheduled for today, February 25, 2021 at 8:30 a.m. Eastern Time.
The call will be broadcast live over the Internet and can be
accessed by logging onto https://investor.stevemadden.com. An
online archive of the broadcast will be available within two hours
of the conclusion of the call and will remain available for 12
months following the live call.
About Steve Madden
Steve Madden designs, sources and markets
fashion-forward footwear, accessories and apparel for women, men
and children. In addition to marketing products under its own
brands including Steve Madden®, Dolce Vita®, Betsey Johnson®,
Blondo®, GREATS®, BB Dakota® and Mad Love®, Steve Madden is a
licensee of various brands, including Anne Klein® and Superga®.
Steve Madden also designs and sources products under private label
brand names for various retailers. Steve Madden’s wholesale
distribution includes department stores, specialty stores, luxury
retailers, national chains, mass merchants and online retailers.
Steve Madden also operates retail stores and e-commerce websites.
Steve Madden licenses certain of its brands to third parties for
the marketing and sale of certain products, including
ready-to-wear, outerwear, eyewear, hosiery, jewelry, fragrance,
luggage and bedding and bath products. For local store information
and the latest Steve Madden booties, pumps, men’s and women’s
boots, fashion sneakers, slippers, dress shoes, sandals and more,
visit http://www.stevemadden.com.
Safe Harbor Statement Under the U.S.
Private Securities Litigation Reform Act of 1995
This press release contains “forward-looking
statements” within the meaning of the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995. Examples of
forward-looking statements include, among others, statements
regarding revenue and earnings guidance, plans, strategies,
objectives, expectations and intentions. Forward-looking statements
can be identified by words such as: “may”, “will”, “expect”,
“believe”, “should”, “anticipate”, “project”, “predict”, “plan”,
“intend”, or “estimate”, and similar expressions or the negative of
these expressions. Forward-looking statements are neither
historical facts nor assurances of future performance. Instead,
they represent the Company’s current beliefs, expectations and
assumptions regarding anticipated events and trends affecting its
business and industry based on information available as of the time
such statements are made. Investors are cautioned that such
forward-looking statements are inherently subject to risks and
uncertainties, many of which cannot be predicted with accuracy and
some of which may be outside of the Company’s control. The
Company’s actual results and financial condition may differ
materially from those indicated in these forward-looking
statements. As such, investors should not rely upon them. Important
risk factors include:
- the Company's ability to maintain
adequate liquidity when negatively impacted by unforeseen events
such as an epidemic or pandemic (COVID-19), which may cause
disruption to the Company's business operations and temporary
closure of Company-operated and wholesale partner retail stores,
resulting in a significant reduction in revenue for an
indeterminable period of time;
- the Company’s ability to accurately
anticipate fashion trends and promptly respond to consumer
demand;
- the Company’s ability to compete
effectively in a highly competitive market;
- the Company’s ability to adapt its
business model to rapid changes in the retail industry;
- the Company’s dependence on the
retention and hiring of key personnel;
- the Company’s ability to
successfully implement growth strategies and integrate acquired
businesses;
- the Company’s reliance on
independent manufacturers to produce and deliver products in a
timely manner, especially when faced with adversities such as work
stoppages, transportation delays, public health emergencies, social
unrest, changes in local economic conditions, and political
upheavals as well as meet the Company’s quality standards;
- changes in trade policies and
tariffs imposed by the United States government and the governments
of other nations in which the Company manufactures and sells
products;
- disruptions to product delivery
systems and the Company’s ability to properly manage
inventory;
- the Company’s ability to adequately
protect its trademarks and other intellectual property rights;
- legal, regulatory, political and
economic risks that may affect the Company’s sales in international
markets;
- changes in U.S. and foreign tax
laws that could have an adverse effect on the Company’s financial
results;
- additional tax liabilities
resulting from audits by various taxing authorities;
- the Company’s ability to achieve
operating results that are consistent with prior financial
guidance; and
- other risks and uncertainties
indicated from time to time in the Company’s filings with the
Securities and Exchange Commission.
The Company does not undertake any obligation to
publicly update any forward-looking statement, including, without
limitation, any guidance regarding revenue or earnings, whether as
a result of new information, future developments or otherwise.
STEVEN MADDEN, LTD. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS DATA
(In thousands, except per share amounts)
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Net sales |
$ |
349,066 |
|
|
$ |
414,912 |
|
|
$ |
1,188,943 |
|
|
$ |
1,768,135 |
Commission and licensing fee
income |
3,901 |
|
|
4,713 |
|
|
12,871 |
|
|
19,022 |
Total revenue |
352,967 |
|
|
419,625 |
|
|
1,201,814 |
|
|
1,787,157 |
Cost of sales |
217,655 |
|
|
261,291 |
|
|
737,273 |
|
|
1,101,140 |
Gross profit |
135,312 |
|
|
158,334 |
|
|
464,541 |
|
|
686,017 |
Operating expenses |
112,224 |
|
|
138,855 |
|
|
451,873 |
|
|
505,153 |
Impairment charges |
1,745 |
|
|
— |
|
|
44,273 |
|
|
4,050 |
Income / (loss) from
operations |
21,343 |
|
|
19,479 |
|
|
(31,605 |
) |
|
176,814 |
Interest and other income,
net |
129 |
|
|
998 |
|
|
1,620 |
|
|
4,412 |
Income / (loss) before
provision for income taxes |
21,472 |
|
|
20,477 |
|
|
(29,985 |
) |
|
181,226 |
(Benefit) / provision for
income taxes |
(2,338 |
) |
|
3,247 |
|
|
(11,704 |
) |
|
39,504 |
Net income / (loss) |
23,810 |
|
|
17,230 |
|
|
(18,281 |
) |
|
141,722 |
Less: net income / (loss)
attributable to noncontrolling interest |
1,219 |
|
|
(521 |
) |
|
116 |
|
|
411 |
Net income / (loss)
attributable to Steven Madden, Ltd. |
$ |
22,591 |
|
|
$ |
17,751 |
|
|
$ |
(18,397 |
) |
|
$ |
141,311 |
|
|
|
|
|
|
|
|
Basic income / (loss) per
share |
$ |
0.29 |
|
|
$ |
0.23 |
|
|
$ |
(0.23 |
) |
|
$ |
1.78 |
|
|
|
|
|
|
|
|
Diluted income / (loss) per
share |
$ |
0.28 |
|
|
$ |
0.21 |
|
|
$ |
(0.23 |
) |
|
$ |
1.69 |
|
|
|
|
|
|
|
|
Basic weighted average common
shares outstanding |
78,588 |
|
|
78,754 |
|
|
78,635 |
|
|
79,577 |
|
|
|
|
|
|
|
|
Diluted weighted average
common shares outstanding |
81,414 |
|
|
83,381 |
|
|
78,635 |
|
|
83,646 |
|
|
|
|
|
|
|
|
Cash dividends declared per
common share |
$ |
— |
|
|
$ |
0.15 |
|
|
$ |
0.15 |
|
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STEVEN MADDEN, LTD. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
DATA
(In thousands)
|
As of |
|
|
|
December 31, 2020 |
|
December 31, 2019 |
|
(Unaudited) |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
247,864 |
|
$ |
264,101 |
Short-term investments |
39,302 |
|
40,521 |
Accounts receivable, net |
277,715 |
|
254,637 |
Inventories |
101,420 |
|
136,896 |
Other current assets |
31,940 |
|
22,724 |
Property and equipment,
net |
43,268 |
|
65,504 |
Operating lease right-of-use
assets |
101,379 |
|
155,700 |
Goodwill and intangibles,
net |
283,456 |
|
334,058 |
Other assets |
11,417 |
|
4,506 |
Total assets |
$ |
1,137,761 |
|
$ |
1,278,647 |
|
|
|
|
Accounts payable |
$ |
73,904 |
|
$ |
61,706 |
Operating leases (current
& non-current) |
132,849 |
|
171,796 |
Other current liabilities |
127,755 |
|
180,941 |
Contingent payment
liability |
207 |
|
9,124 |
Other long-term
liabilities |
12,677 |
|
13,856 |
Total Steven Madden, Ltd.
stockholders’ equity |
776,586 |
|
828,501 |
Noncontrolling interest |
13,783 |
|
12,723 |
Total liabilities and
stockholders’ equity |
$ |
1,137,761 |
|
$ |
1,278,647 |
|
|
|
|
|
|
STEVEN MADDEN, LTD. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED CASH FLOW
DATA
(In thousands)
|
Twelve Months Ended |
|
December 31, 2020 |
|
December 31, 2019 |
|
(Unaudited) |
|
|
Net cash provided by operating activities |
$ |
44,206 |
|
|
$ |
233,780 |
|
|
|
|
|
Investing Activities |
|
|
|
Purchases of property and
equipment |
(6,562 |
) |
|
(18,311 |
) |
Maturity / sale of marketable
securities and short-term investments, net |
1,678 |
|
|
27,736 |
|
Acquisitions, net of cash
acquired |
— |
|
|
(37,173 |
) |
Net cash used in investing
activities |
(4,884 |
) |
|
(27,748 |
) |
|
|
|
|
Financing Activities |
|
|
|
Common stock share repurchases
for treasury |
(46,583 |
) |
|
(101,768 |
) |
Investment of noncontrolling
interest |
359 |
|
|
3,248 |
|
Distribution of noncontrolling
interest earnings |
— |
|
|
(1,444 |
) |
Proceeds from exercise of
stock options |
1,609 |
|
|
6,212 |
|
Cash dividends paid |
(12,459 |
) |
|
(48,426 |
) |
Net cash used in financing
activities |
(57,074 |
) |
|
(142,178 |
) |
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
1,515 |
|
|
216 |
|
|
|
|
|
Net (decrease) / increase in
cash and cash equivalents |
(16,237 |
) |
|
64,070 |
|
|
|
|
|
Cash and cash equivalents -
beginning of year |
264,101 |
|
|
200,031 |
|
|
|
|
|
Cash and cash equivalents -
end of year |
$ |
247,864 |
|
|
$ |
264,101 |
|
|
|
|
|
|
|
|
|
STEVEN MADDEN, LTD. AND
SUBSIDIARIES
NON-GAAP RECONCILIATION
(In thousands, except per share amounts)
(Unaudited)
The Company uses non-GAAP financial information
to evaluate its operating performance and in order to represent the
manner in which the Company conducts and views its business.
Additionally, the Company believes the information assists
investors in comparing the Company’s performance across reporting
periods on a consistent basis by excluding items that are not
indicative of its core business. The non-GAAP financial information
is provided in addition to, and not as an alternative to, the
Company’s reported results prepared in accordance with GAAP.
Table 1 - Reconciliation of GAAP gross profit to Adjusted gross
profit |
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
GAAP gross profit |
$ |
135,312 |
|
|
$ |
158,334 |
|
$ |
464,541 |
|
|
$ |
686,017 |
|
|
|
|
|
|
|
|
(Gain) /
loss in connection with the termination of a joint venture |
(532 |
) |
|
386 |
|
(532 |
) |
|
386 |
|
|
|
|
|
|
|
|
Adjusted gross profit |
$ |
134,780 |
|
|
$ |
158,720 |
|
$ |
464,009 |
|
|
$ |
686,403 |
Table 2 - Reconciliation of GAAP operating expenses to Adjusted
operating expenses |
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
GAAP operating expenses |
$ |
112,224 |
|
|
$ |
138,855 |
|
|
$ |
451,873 |
|
|
$ |
505,153 |
|
|
|
|
|
|
|
|
|
Expense
in connection with payments / provision for early lease termination
charges |
(5,083 |
) |
|
— |
|
|
(13,473 |
) |
|
(5,424 |
) |
|
|
|
|
|
|
|
|
Benefit
in connection with the change in valuation of contingent
considerations |
1,213 |
|
|
— |
|
|
6,233 |
|
|
— |
|
|
|
|
|
|
|
|
|
Recovery
/ (bad debt expense) in connection with the Payless ShoeSource
bankruptcy |
1,081 |
|
|
(8,946 |
) |
|
1,081 |
|
|
(8,687 |
) |
|
|
|
|
|
|
|
|
Expense
in connection with restructuring and related charges |
(249 |
) |
|
— |
|
|
(7,138 |
) |
|
(669 |
) |
|
|
|
|
|
|
|
|
Expense
in connection with impairment of store fixed assets and lease
right-of-use assets |
— |
|
|
— |
|
|
(36,895 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Expense
in connection with benefits provided to furlough employees |
— |
|
|
— |
|
|
(1,991 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Expense
in connection with a provision for legal settlement and related
fees |
— |
|
|
(3,977 |
) |
|
— |
|
|
(3,977 |
) |
|
|
|
|
|
|
|
|
Expense
in connection with the termination of a joint venture |
— |
|
|
(158 |
) |
|
— |
|
|
(158 |
) |
|
|
|
|
|
|
|
|
Expense
in connection with provision for loan receivable |
— |
|
|
— |
|
|
(697 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Expense
in connection with the acquisitions of GREATS and BB Dakota |
— |
|
|
(42 |
) |
|
— |
|
|
(1,120 |
) |
|
|
|
|
|
|
|
|
Net
benefit in connection with the change in a contingent liability and
the acceleration of amortization related to the termination of the
Kate Spade license agreement |
— |
|
|
— |
|
|
— |
|
|
1,868 |
|
|
|
|
|
|
|
|
|
Adjusted operating expenses |
$ |
109,186 |
|
|
$ |
125,732 |
|
|
$ |
398,993 |
|
|
$ |
486,986 |
|
Table 3 - Reconciliation of GAAP income / (loss) from operations to
Adjusted income from operations |
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
GAAP income / (loss) from operations |
$ |
21,343 |
|
|
$ |
19,479 |
|
$ |
(31,605 |
) |
|
$ |
176,814 |
|
|
|
|
|
|
|
|
|
Expense
in connection with payments / provision for early lease termination
charges |
5,083 |
|
|
— |
|
13,473 |
|
|
5,424 |
|
|
|
|
|
|
|
|
|
Expense
in connection with impairment of certain trademarks |
1,745 |
|
|
— |
|
44,273 |
|
|
4,050 |
|
|
|
|
|
|
|
|
|
Benefit
in connection with the change in valuation of contingent
considerations |
(1,213 |
) |
|
— |
|
(6,233 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Recovery
/ (bad debt expense) in connection with the Payless ShoeSource
bankruptcy |
(1,081 |
) |
|
8,946 |
|
(1,081 |
) |
|
8,687 |
|
|
|
|
|
|
|
|
|
Expense
in connection with restructuring and related charges |
249 |
|
|
— |
|
7,138 |
|
|
669 |
|
|
|
|
|
|
|
|
|
Expense
in connection with impairment of store fixed assets and lease
right-of-use assets |
— |
|
|
— |
|
36,895 |
|
|
— |
|
|
|
|
|
|
|
|
|
Expense
in connection with benefits provided to furlough employees |
— |
|
|
— |
|
1,991 |
|
|
— |
|
|
|
|
|
|
|
|
|
Expense
in connection with a provision for legal settlement and related
fees |
— |
|
|
3,977 |
|
— |
|
|
3,977 |
|
|
|
|
|
|
|
|
|
(Gain) /
loss in connection with the termination of a joint venture |
(532 |
) |
|
544 |
|
(532 |
) |
|
544 |
|
|
|
|
|
|
|
|
|
Expense
in connection with provision for loan receivable |
— |
|
|
— |
|
697 |
|
|
— |
|
|
|
|
|
|
|
|
|
Expense
in connection with the acquisitions of GREATS and BB Dakota |
— |
|
|
42 |
|
— |
|
|
1,120 |
|
|
|
|
|
|
|
|
|
Net
benefit in connection with the change in a contingent liability and
the acceleration of amortization related to the termination of the
Kate Spade license agreement |
— |
|
|
— |
|
— |
|
|
(1,868 |
) |
|
|
|
|
|
|
|
|
Adjusted income from operations |
$ |
25,594 |
|
|
$ |
32,988 |
|
$ |
65,016 |
|
|
$ |
199,417 |
|
Table 4 - Reconciliation of GAAP (benefit) / provision for income
taxes to Adjusted provision for income taxes |
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
GAAP (benefit) / provision for income taxes |
$ |
(2,338 |
) |
|
$ |
3,247 |
|
|
$ |
(11,704 |
) |
|
$ |
39,504 |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with payments / provision for early
lease termination charges |
1,209 |
|
|
— |
|
|
3,195 |
|
|
1,361 |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with impairment of certain
trademarks |
385 |
|
|
— |
|
|
10,456 |
|
|
1,017 |
|
|
|
|
|
|
|
|
|
Tax
effect of benefit in connection with the change in valuation of
contingent considerations |
(282 |
) |
|
— |
|
|
(1,472 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Tax
effect of recovery / (bad debt expense) in connection with the
Payless ShoeSource bankruptcy |
(149 |
) |
|
— |
|
|
(149 |
) |
|
85 |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with restructuring and related
charges |
70 |
|
|
— |
|
|
1,704 |
|
|
168 |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with impairment of store fixed
assets and lease right-of-use assets |
— |
|
|
— |
|
|
8,946 |
|
|
— |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with benefits provided to furlough
employees |
— |
|
|
— |
|
|
471 |
|
|
— |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with a provision for legal
settlement and related fees |
— |
|
|
961 |
|
|
— |
|
|
961 |
|
|
|
|
|
|
|
|
|
Tax
effect of (gain) / loss in connection with the termination of a
joint venture |
(133 |
) |
|
136 |
|
|
(133 |
) |
|
136 |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with provision for loan
receivable |
— |
|
|
— |
|
|
165 |
|
|
— |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with the acquisitions of GREATS and
BB Dakota |
— |
|
|
10 |
|
|
— |
|
|
281 |
|
|
|
|
|
|
|
|
|
Tax
effect of net benefit in connection with the change in a contingent
liability and the acceleration of amortization related to the
termination of the Kate Spade license agreement |
— |
|
|
— |
|
|
— |
|
|
(469 |
) |
|
|
|
|
|
|
|
|
Tax
benefit in connection with the net operating loss carryback
provision of the CARES Act |
4,191 |
|
|
— |
|
|
4,191 |
|
|
— |
|
|
|
|
|
|
|
|
|
Tax
benefit / (expense) in connection with deferred and foreign
uncertain tax position |
472 |
|
|
(2,207 |
) |
|
(1,921 |
) |
|
(2,590 |
) |
|
|
|
|
|
|
|
|
Adjusted provision for income taxes |
3,425 |
|
|
2,147 |
|
|
13,749 |
|
|
40,454 |
|
Table 5 - Reconciliation of GAAP net income / (loss) attributable
to noncontrolling interest to Adjusted net income / (loss)
attributable to noncontrolling interest |
|
Three Months
Ended |
|
Twelve Months Ended |
|
December 31,
2020 |
|
December 31,
2019 |
|
December 31,
2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
GAAP net income / (loss) attributable to noncontrolling
interest |
$ |
1,219 |
|
|
$ |
(521 |
) |
|
$ |
116 |
|
|
$ |
411 |
|
|
|
|
|
|
|
|
|
Adjustments attributable to noncontrolling interest |
(698 |
) |
|
204 |
|
|
933 |
|
|
204 |
|
|
|
|
|
|
|
|
|
Adjusted net income / (loss) attributable to noncontrolling
interest |
$ |
521 |
|
|
$ |
(317 |
) |
|
$ |
1,049 |
|
|
$ |
615 |
|
Table 6 - Reconciliation of GAAP net income / (loss) attributable
to Steve Madden, Ltd. to Adjusted net income attributable to Steve
Madden, Ltd. |
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
GAAP net income / (loss) attributable to Steven Madden, Ltd. |
$ |
22,591 |
|
|
$ |
17,751 |
|
|
$ |
(18,397 |
) |
|
$ |
141,311 |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with payments / provision for early
lease termination charges |
3,874 |
|
|
— |
|
|
10,277 |
|
|
4,063 |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with impairment of certain
trademarks |
1,360 |
|
|
— |
|
|
33,817 |
|
|
3,033 |
|
|
|
|
|
|
|
|
|
After-tax
impact of benefit in connection with the change in valuation of
contingent considerations |
(930 |
) |
|
— |
|
|
(4,761 |
) |
|
— |
|
|
|
|
|
|
|
|
|
After-tax
impact of (recovery) / bad debt expense in connection with the
Payless ShoeSource bankruptcy |
(932 |
) |
|
8,946 |
|
|
(932 |
) |
|
8,602 |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with restructuring and related
charges |
178 |
|
|
— |
|
|
5,434 |
|
|
501 |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with impairment of store fixed
assets and lease right-of-use assets |
— |
|
|
— |
|
|
27,949 |
|
|
— |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with benefits provided to furlough
employees |
— |
|
|
— |
|
|
1,519 |
|
|
— |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with a provision for legal
settlement and related fees |
— |
|
|
3,016 |
|
|
— |
|
|
3,016 |
|
|
|
|
|
|
|
|
|
After-tax
impact of (gain) / loss in connection with the termination of a
joint venture |
(399 |
) |
|
408 |
|
|
(399 |
) |
|
408 |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with provision for loan
receivable |
— |
|
|
— |
|
|
532 |
|
|
— |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with the acquisitions of GREATS and
BB Dakota |
— |
|
|
32 |
|
|
— |
|
|
839 |
|
|
|
|
|
|
|
|
|
After-tax
impact of net benefit in connection with the change in a contingent
liability and the acceleration of amortization related to the
termination of the Kate Spade license agreement |
— |
|
|
— |
|
|
— |
|
|
(1,399 |
) |
|
|
|
|
|
|
|
|
Tax
benefit in connection with the net operating loss carryback
provision of the CARES Act |
(4,191 |
) |
|
— |
|
|
(4,191 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Tax
(benefit) / expense in connection with deferred and foreign
uncertain tax position |
(472 |
) |
|
2,207 |
|
|
1,921 |
|
|
2,590 |
|
|
|
|
|
|
|
|
|
Less:
Adjustments attributable to noncontrolling interest |
698 |
|
|
(204 |
) |
|
(933 |
) |
|
(204 |
) |
|
|
|
|
|
|
|
|
Adjusted
net income attributable to Steven Madden, Ltd. |
$ |
21,777 |
|
|
$ |
32,156 |
|
|
$ |
51,836 |
|
|
$ |
162,760 |
|
|
|
|
|
|
|
|
|
GAAP
diluted income / (loss) per share |
$ |
0.28 |
|
|
$ |
0.21 |
|
|
$ |
(0.23 |
) |
|
$ |
1.69 |
|
|
|
|
|
|
|
|
|
Adjusted diluted income per share |
$ |
0.27 |
|
|
$ |
0.39 |
|
|
$ |
0.64 |
|
|
$ |
1.95 |
|
Contact
Steven Madden, Ltd.Director of Corporate Development &
Investor RelationsDanielle
McCoy718-308-2611InvestorRelations@stevemadden.com
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