Total Net Sales Growth of 71.9% vs. Q2
FY2020
Gross Margin of 68.7% vs. Q2 FY2020 of
59.4%
Gross Profit Growth of 98.8% vs. Q2
FY2020
J.Jill, Inc. (NYSE:JILL) today announced financial results for
the second quarter ended July 31, 2021.
Claire Spofford, President and Chief Executive Officer of
J.Jill, Inc. stated, “We are pleased with our second quarter
results and the sequential topline improvement we delivered. This
performance was driven by strong full price selling as our
customers continue to respond to the newness and novelty we are
flowing into the assortment both online and in our stores. While we
are still in the initial phase of this next chapter for J.Jill, our
results to date are testament to the stronger foundation we have
and the opportunity we continue to see in front of us for this
great brand.”
Ms. Spofford continued, “We enter the back-half of the year with
further confidence in our ability to execute against our
objectives. While we, like others in the industry, expect to
experience increased headwinds from supply chain disruption, we
continue to position J.Jill for long term sustainable growth.”
For the second quarter ended July 31, 2021:
- Total net sales for the thirteen weeks ended July 31, 2021 were
up 71.9% to $159.2 million compared to $92.6 million for the
thirteen weeks ended August 1, 2020. Second quarter 2020 sales were
negatively impacted by the closure of stores for approximately half
the quarter due to the COVID-19 pandemic.
- Direct to consumer net sales grew 11.3% over 2020 and
represented 46.4% of total net sales, compared to 71.6% in the
second quarter of fiscal 2020.
- Gross profit was $109.4 million compared to $55.0 million in
the second quarter of fiscal 2020. Gross margin was 68.7% compared
to 59.4% in the second quarter of fiscal 2020. The year over year
gross margin increase was driven by strong full price selling.
- SG&A was $85.8 million compared to $77.7 million in the
second quarter of fiscal 2020. In comparing the second quarter of
fiscal 2021 to fiscal 2020, SG&A benefited from $6.5 million of
lower non-recurring and other one-time expenses primarily the
result of lower costs incurred in response to the COVID-19
pandemic. Excluding certain one-time costs and COVID-19 related
costs from both periods, SG&A as a percentage of total net
sales was 53.5% compared to 76.2% in the second quarter of fiscal
2020.
- Income from operations was $23.5 million compared to a loss of
$21.8 million in the second quarter of fiscal 2020.
- Adjusted Income from Operations*, which excludes the
non-recurring items and impairment charges, was $24.1 million
compared to Adjusted Loss from Operations* of $15.6 million in the
second quarter of fiscal 2020.
- Interest expense was $4.7 million compared to $4.2 million in
the second quarter of fiscal 2020.
- During the second quarter of fiscal 2021, the Company recorded
$39.0 million of non-cash charges associated with mark-to-market
adjustments for the outstanding warrants and an embedded derivative
associated with the Company’s Priming term loan. The mark-to-market
adjustment was caused by the impact of J.Jill’s higher stock price
on the valuation of the Company’s option to either paydown $4.9
million of principal on May 31, 2021 or issue additional shares to
the lenders and the related antidilution provision in the warrant
agreement.
- During the second quarter of fiscal 2021, the Company recorded
an income tax provision of $4.4 million compared to a benefit of
$7.0 million in the second quarter of fiscal 2020 and the effective
tax rate was -22.0% compared to 27.0% in the second quarter of
2020.
- Net loss was $24.6 million, which includes $39.0 million
related to the fair value adjustment of the warrants and the
Priming Loan embedded derivative, compared to a loss of $19.0
million in the second quarter of fiscal 2020.
- Net loss per share was $1.98 compared to a net loss of $2.13 in
the second quarter of fiscal 2020 including the impact of
non-recurring items. Excluding the impact of these items, Adjusted
Net Income per Diluted Share* in the second quarter of fiscal 2021
was $0.93 compared to a loss of $1.58 in the second quarter of
2020.
- Adjusted EBITDA* for the second quarter of fiscal 2021 was
$32.7 million compared to a loss of $6.5 million in the second
quarter of fiscal 2020.
- The Company closed 4 stores in the second quarter of fiscal
2021 and ended the quarter with 261 stores.
For the twenty-six weeks ended July 31, 2021:
- Total net sales for the twenty-six weeks ended July 31, 2021
were up 57.0% to $288.3 million compared to $183.6 million for the
twenty-six weeks ended August 1, 2020. Sales for the twenty-six
weeks ended August 1, 2020 were negatively impacted by the closure
of stores due to the COVID-19 pandemic.
- Direct to consumer net sales grew 21.1% over 2020 and
represented 51.3% of total net sales, compared to 66.6% in the
twenty-six weeks ended August 1, 2020.
- Gross profit was $197.2 million compared to $105.2 million in
the twenty-six weeks ended August 1, 2020. Gross margin was 68.4%
compared to 57.3% in the twenty-six weeks ended August 1, 2020. The
year over year gross margin increase was driven by strong full
price selling.
- SG&A was $165.0 million compared to $165.6 million in the
second quarter of fiscal 2020. In comparing the twenty-six weeks
ended July 31, 2021 to the twenty-six weeks ended August 1, 2020,
SG&A benefited from $8.2 million of lower non-recurring
expenses primarily the result of lower costs incurred in response
to the COVID-19 pandemic and non-cash adjustments of $0.3 million
associated with exiting store leases earlier than anticipated.
Excluding certain one-time costs and COVID-19 related costs from
both periods as well as the non-cash adjustments from the
twenty-six weeks ended July 31, 2021, SG&A as a percentage of
total net sales was 57.0% compared to 85.2% in the twenty-six weeks
ended August 1, 2020.
- Income from operations was $32.2 million compared to a loss of
$111.6 million in the twenty-six weeks ended August 1, 2020.
- Adjusted Income from Operations*, which excludes the
non-recurring items and impairment charges, was $33.0 million
compared to Adjusted Loss from Operations* of $51.2 million in the
twenty-six weeks ended August 1, 2020. For the twenty-six weeks
ended July 31, 2021, the Company did not incur any impairment
charges compared to $51.1 million of impairment charges in the
twenty-six weeks ended August 1, 2020.
- Interest expense was $9.6 million compared to $8.9 million in
the twenty-six weeks ended August 1, 2020.
- During the twenty-six weeks ended July 31, 2021, the Company
recorded $59.8 million of non-cash charges associated with
mark-to-market adjustments for the outstanding warrants and an
embedded derivative associated with the Company’s Priming term
loan. The mark-to-market adjustment was caused by the impact of
J.Jill’s higher stock price on the valuation of the Company’s
option to either paydown $4.9 million of principal on May 31, 2021
or issue additional shares to the lenders and the related
antidilution provision in the warrant agreement.
- During the twenty-six weeks ended July 31, 2021, the Company
recorded an income tax provision of $5.8 million compared to a
benefit of $31.2 million in the twenty-six weeks ended August 1,
2020, and the effective tax rate was -15.7% compared to 25.9% in
the twenty-six weeks ended August 1, 2020.
- Net loss was $43.0 million which includes $59.8 million related
to the fair value adjustment of the warrants and the Priming Loan
embedded derivative, compared to a loss of $89.3 million in the
twenty-six weeks ended August 1, 2020.
- Net loss per share was $3.88 compared to a net loss of $10.01
in the twenty-six weeks ended August 1, 2020 including the impact
of non-recurring items. Excluding the impact of these items,
Adjusted Net Income per Diluted Share* in the twenty-six weeks
ended July 31, 2021 was $1.17 compared to a loss of $4.81 in the
twenty-six weeks ended August 1, 2020.
- Adjusted EBITDA* for the twenty-six weeks ended July 31, 2021
was $49.6 million compared to a loss of $32.3 million in the
twenty-six weeks ended August 1, 2020.
- The Company closed 6 stores in the twenty-six weeks ended July
31, 2021 and ended the period with 261 stores.
Balance Sheet Highlights
- The Company ended the second quarter of fiscal 2021 with $18.1
million in cash and $29.8 million of total availability under its
revolving credit agreement.
- Inventory at the end of the second quarter of fiscal 2021
decreased 24.5% to $48.5 million compared to $64.2 million at the
end of the second quarter of fiscal 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 now expects total capital spend
in fiscal 2021 to be approximately $8.0 million.
Recent Developments
As previously disclosed in the 8-K filed on August 30, 2021, on
August 27, 2021, the Company made a voluntary prepayment of $25.0
million in aggregate principal amount of its term loans, plus
accrued and unpaid interest thereon, in accordance with that
certain Priming Term Loan Credit Agreement. By making the
prepayment, the Company avoids an increase to the interest rate
under the Credit Agreement for each interest period on or after
August 31, 2021.
Conference Call Information
A conference call to discuss second quarter 2021 results is
scheduled for today, September 9, 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 1689079 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 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 1689079. The telephone
replay will be available until Friday, September 17, 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 261 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 competitive environment; 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; post-pandemic changes in customer behavior and the
timeline of economic recovery; 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 January 30, 2021. 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 Loss
(Unaudited)
(Amounts in thousands, except
share and per share data)
For the Thirteen Weeks
Ended
July 31, 2021
August 1, 2020
Net sales
$
159,236
$
92,636
Costs of goods sold
49,883
37,616
Gross profit
109,353
55,020
Selling, general and administrative
expenses
85,846
77,737
Impairment of long-lived assets (a)
—
(893
)
Impairment of goodwill
—
-
Impairment of intangible assets
—
-
Operating income (loss)
23,507
(21,824
)
Fair value adjustment of derivative
625
-
Fair value adjustment of warrants -
related party (b)
38,338
-
Interest expense
4,217
4,244
Interest expense, net - related party
529
-
Loss before provision for income taxes
(20,202
)
(26,068
)
Income tax provision (benefit)
4,446
(7,034
)
Net loss and total comprehensive loss
$
(24,648
)
$
(19,034
)
Net loss per common share attributable to
common shareholders
Basic
$
(1.98
)
$
(2.13
)
Diluted
$
(1.98
)
$
(2.13
)
Weighted average number of common shares
outstanding
Basic
12,450,351
8,953,431
Diluted
12,450,351
8,953,431
(a)
Represents impairment of long-lived assets
related to the right-of-use asset and leasehold improvements.
(b)
The fair value adjustment of warrants
increased due to the increase in J.Jill’s stock price from May 1,
2021 through May 31, 2021.
J.Jill, Inc.
Consolidated Statements of
Operations and Comprehensive Loss
(Unaudited)
(Amounts in thousands, except
share and per share data)
For the Twenty-Six Weeks
Ended
July 31, 2021
August 1, 2020
Net sales
$
288,322
$
183,605
Costs of goods sold
91,143
78,420
Gross profit
197,179
105,185
Selling, general and administrative
expenses
164,985
165,645
Impairment of long-lived assets (a)
—
26,587
Impairment of goodwill
—
17,900
Impairment of indefinite-lived intangible
assets
—
6,620
Operating income (loss)
32,194
(111,567
)
Fair value adjustment of warrants -
related party
2,775
-
Interest expense, net - related party
(b)
56,984
-
Interest expense, net
8,563
8,887
Interest expense, net - related party
990
-
Loss before provision for income taxes
(37,118
)
(120,454
)
Income tax provision (benefit)
5,838
(31,151
)
Net loss and total comprehensive loss
$
(42,956
)
$
(89,303
)
Net loss per common share attributable to
common shareholders:
Basic
$
(3.88
)
$
(10.01
)
Diluted
$
(3.88
)
$
(10.01
)
Weighted average number of common shares
outstanding:
Basic
11,058,351
8,917,807
Diluted
11,058,351
8,917,807
(a)
Represents impairment of long-lived assets
related to the right-of-use asset and leasehold improvements.
(b)
The fair value adjustment of warrants
increased due to the increase in J.Jill’s stock price from January
30, 2021 through May 31, 2021.
J.Jill, Inc.
Consolidated Balance
Sheets
(Unaudited)
(Amounts in thousands, except
common share data)
July 31, 2021
January 30, 2021
Assets
Current assets:
Cash
$
18,101
$
4,407
Accounts receivable
5,506
7,793
Inventories, net
48,492
58,034
Prepaid expenses and other current
assets
43,410
43,035
Total current assets
115,509
113,269
Property and equipment, net
63,991
73,906
Intangible assets, net
84,843
88,976
Goodwill
59,697
59,697
Operating lease assets, net
145,277
161,135
Other assets
157
199
Total assets
$
469,474
$
497,182
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
37,783
$
56,263
Accrued expenses and other current
liabilities
49,009
43,854
Current portion of long-term debt
7,690
2,799
Current portion of operating lease
liabilities
34,793
37,967
Borrowings under revolving credit
facility
—
11,146
Total current liabilities
129,275
152,029
Long-term debt, net of discount and
current portion
220,053
225,401
Long-term debt, net of discount and
current portion - related party
4,301
3,311
Deferred income taxes
14,270
13,835
Operating lease liabilities, net of
current portion
160,916
179,022
Warrants - related party (Note 8)
—
15,997
Derivative liability (Note 8)
—
2,436
Other liabilities
1,525
2,049
Total liabilities
530,340
594,080
Commitments and contingencies
Shareholders’ Equity
Common stock, par value $0.01 per share;
50,000,000 shares authorized; 9,984,564 and 9,631,633 shares issued
and outstanding at July 31, 2021 and January 30, 2021,
respectively
100
97
Additional paid-in capital
208,348
129,363
Accumulated deficit
(269,314
)
(226,358
)
Total shareholders’ deficit
(60,866
)
(96,898
)
Total liabilities and shareholders’
deficit
$
469,474
$
497,182
J.Jill, Inc.
Reconciliation of GAAP Net
Loss to Adjusted EBITDA
(Unaudited)
(Amounts in thousands)
For the Thirteen Weeks
Ended
July 31, 2021
August 1, 2020
Net loss
$
(24,648
)
$
(19,034
)
Fair value adjustment of derivative
625
-
Fair value adjustment of warrants -
related party (a)
38,338
-
Interest expense, net
4,217
4,244
Interest expense, net - related party
529
-
Income tax provision (benefit)
4,446
(7,034
)
Depreciation and amortization
7,295
8,277
Equity-based compensation expense (b)
649
615
Write-off of property and equipment
(c)
630
244
Adjustment for costs to exit retail stores
(d)
9
(402
)
Impairment of long-lived assets (e)
—
(893
)
Other non-recurring items (f)
616
7,523
Adjusted EBITDA
$
32,706
$
(6,460
)
For the Twenty-Six Weeks
Ended
July 31, 2021
August 1, 2020
Net loss
$
(42,956
)
$
(89,303
)
Fair value adjustment of derivative
2,775
-
Fair value adjustment of warrants -
related party (a)
56,984
-
Interest expense, net
8,563
8,887
Interest expense, net - related party
990
-
Income tax benefit
5,838
(31,151
)
Depreciation and amortization
14,871
17,313
Equity-based compensation expense (b)
1,092
1,291
Write-off of property and equipment
(c)
716
256
Adjustment for costs to exit retail stores
(d)
(710
)
(402
)
Impairment of goodwill and other
intangible assets
—
24,520
Impairment of long lived assets (e)
—
26,587
Other non-recurring items (f)
1,468
9,707
Adjusted EBITDA
$
49,631
$
(32,295
)
(a)
The fair value adjustment of warrants
increased due to the increase in J.Jill’s stock price from the
beginning of the respective period through May 31, 2021.
(b)
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.
(c)
Represents the net gain or loss on the
disposal of fixed assets.
(d)
Represents non-cash adjustments associated
with exiting store leases earlier than anticipated.
(e)
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.
(f)
Represents items management believes are
not indicative of ongoing operating performance, including
professional fees, retention expenses and costs related to the
COVID-19 pandemic.
J.Jill, Inc.
Reconciliation of GAAP
Operating Income (Loss) to Adjusted Income (Loss) from
Operations
(Unaudited)
(Amounts in thousands)
For the Thirteen Weeks
Ended
July 31, 2021
August 1, 2020
Operating income (loss)
$
23,507
$
(21,824
)
Adjustment for costs to exit retail stores
(a)
9
(402
)
Impairment of long-lived assets (b)
—
(893
)
Other non-recurring items (c)
616
7,523
Adjusted income (loss) from operations
$
24,132
$
(15,596
)
For the Twenty-Six Weeks
Ended
July 31, 2021
August 1, 2020
Operating loss
$
32,194
$
(111,567
)
Adjustment for costs to exit retail stores
(a)
(710
)
(402
)
Impairment of goodwill and other
intangible assets
—
24,520
Impairment of long-lived assets (b)
—
26,587
Other non-recurring items (c)
1,468
9,707
Adjusted income (loss) from operations
$
32,952
$
(51,155
)
(a)
Represents non-cash adjustments 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, including
professional fees, retention expenses and costs related to the
COVID-19 pandemic.
J.Jill, Inc.
Reconciliation of GAAP Net
Loss to Adjusted Net Income (Loss)
(Unaudited)
(Amounts in thousands, except
share and per share data)
For the Thirteen Weeks
Ended
July 31, 2021
August 1, 2020
Net loss and total comprehensive loss
$
(24,648
)
$
(19,034
)
Add: Income tax provision (benefit)
4,446
(7,034
)
Loss before provision for income tax
(20,202
)
(26,068
)
Add: Fair value adjustment of
derivative
625
—
Add: Fair value adjustment of warrants -
related party (a)
38,338
—
Add: Adjustment for costs to exit retail
stores (b)
9
(402
)
Add: Impairment of long-lived assets
(c)
—
(893
)
Add: Other non-recurring items (d)
616
7,523
Adjusted income (loss) before income tax
benefit
19,386
(19,840
)
Less: Adjusted tax provision (benefit)
(e)
6,242
(5,654
)
Adjusted net income (loss)
$
13,144
$
(14,186
)
Adjusted net income (loss) per common
share
Diluted
$
0.93
$
(1.58
)
Weighted average number of common
shares
Diluted
14,092,520
8,953,431
For the Twenty-Six Weeks
Ended
July 31, 2021
August 1, 2020
Net loss and total comprehensive loss
$
(42,956
)
$
(89,303
)
Add: Income tax benefit
5,838
(31,151
)
Loss before income tax benefit
(37,118
)
(120,454
)
Add: Fair value adjustment of
derivative
2,775
—
Add: Fair value adjustment of warrants -
related party (a)
56,984
—
Add: Adjustment for costs to exit retail
stores (b)
(710
)
(402
)
Add: Impairment of goodwill and other
intangible assets
—
24,520
Add: Impairment of long-lived assets
(c)
—
26,587
Add: Other non-recurring items (d)
1,468
9,707
Adjusted loss before income tax
benefit
23,399
(60,042
)
Less: Adjusted tax benefit (e)
7,534
(17,112
)
Adjusted net income (loss)
$
15,865
$
(42,930
)
Adjusted net income (loss) per common
share
Diluted
$
1.17
$
(4.81
)
Weighted average number of common
shares
Diluted
13,586,297
8,917,807
(a)
The fair value adjustment of warrants
increased due to the increase in J.Jill’s stock price from the
beginning of the respective period through May 31, 2021.
(b)
Represents non-cash adjustments associated
with exiting store leases earlier than anticipated.
(c)
Represents impairment of long-lived assets
related to the right-of-use asset and leasehold improvements.
(d)
Represents items management believes are
not indicative of ongoing operating performance, including
professional fees, retention expenses and costs related to the
COVID-19 pandemic.
(e)
The adjusted tax provision for adjusted
net income is estimated by applying a rate of 32.2% for the second
quarter of fiscal 2021 and 28.5% for the second quarter of fiscal
2020 to the adjusted loss before income tax benefit.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210909005272/en/
Investor Relations: Caitlin Churchill ICR, Inc.
investors@jjill.com 203-682-8200
Business and Financial Media: Ariel Kouvaras Sloane &
Company akouvaras@sloanepr.com 973-897-6241
Brand Media: Chris Gayton J.Jill, Inc. media@jjill.com
617-689-7916
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