TLRD
$1.74
Tailored Brands
$.19
12.26%
Earnings Details
Quarter January 2020
Wednesday, March 18, 2020 4:15:00 PM
Tweet Share Watch
Summary

Tailored Brands (TLRD) Recent Earnings

Tailored Brands (TLRD) reported a Quarter January 2020 loss of $0.46 per share on revenue of $691.0 million. The consensus estimate was a loss of $0.54 per share on revenue of $708.5 million. Revenue fell 12.1% compared to the same quarter a year ago.

Results
Reported Earnings
($0.46)
Earnings Whisper
-
Consensus Estimate
($0.54)
Reported Revenue
$691.0 Mil
Revenue Estimate
$708.5 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Tailored Brands, Inc. Reports Fiscal 2019 Fourth Quarter and Year End Results

  • Q4 2019 GAAP diluted loss per share and adjusted diluted loss per share(1) from continuing operations of $0.80 and $0.46, respectively
  • FY 2019 GAAP diluted EPS and adjusted diluted EPS from continuing operations of $0.51 and $1.08, respectively
  • Company taking steps to increase liquidity to address uncertainty from COVID-19

FREMONT, Calif.--(BUSINESS WIRE)--Tailored Brands, Inc. (NYSE: TLRD) today announced consolidated financial results for the fiscal fourth quarter and year ended February 1, 2020.

For the fourth quarter ended February 1, 2020, the Company reported GAAP loss from continuing operations per diluted share of $0.80 compared to GAAP earnings from continuing operations per diluted share of $0.08 in the fourth quarter last year. Excluding the impact of certain items in both periods, fourth quarter 2019 adjusted loss from continuing operations per diluted share(1) was $0.46 compared to adjusted loss from continuing operations per diluted share(1) of $0.34 last year.

Fourth quarter 2019 pre-tax results from continuing operations include $22.7 million of charges consisting of $17.4 million associated with the Company’s previously announced sale of the Joseph Abboud trademarks primarily due to the write-off of inventory related to its recently closed Joseph Abboud store and e-commerce site and $5.2 million of charges related to our multi-year cost savings and operational excellence programs, including consulting, severance and lease termination costs. In addition, we have reflected the results of the corporate apparel business as discontinued operations for all periods presented.

For the fiscal year ended February 1, 2020, the Company reported GAAP earnings from continuing operations per diluted share of $0.51 compared to GAAP earnings from continuing operations per diluted share of $1.94 last year. For fiscal 2019, adjusted diluted EPS from continuing operations was $1.08 compared to adjusted diluted EPS from continuing operations of $2.15 for the same period a year ago.

Tailored Brands President and CEO Dinesh Lathi said, “Fiscal 2020 got off to a solid start, with total retail comparable sales up 2.4% and all brands positive in February. However, over the past two and a half weeks, we’ve seen a deceleration in comparable sales across brands, coinciding with heightened actions taken by governments, businesses, schools and citizens to curb the spread of COVID-19. Beginning March 17th, we have decided to close stores in the U.S. and Canada until March 28th to ensure the safety and well-being of our employees and customers. We will continue to monitor this timing based on guidance from health authorities. We are taking aggressive and prudent actions to ensure the business has ample liquidity to weather this uncertain period. In an abundance of caution and as a proactive measure, on March 16th we drew down $260 million from our revolving credit facility.”

(1)

We have reflected the results of the corporate apparel business as discontinued operations for all periods presented. In addition, we have recast our non-GAAP presentation for prior periods to remove the results of the corporate apparel business and provide results from continuing operations. The Company believes that disclosure of non-GAAP results for its continuing operations is meaningful to the user’s overall understanding of the Company’s financial performance. In the fourth quarter of fiscal 2019, adjusted items include $22.7 million of charges consisting of $17.4 million related to the Company’s previously announced sale of the Joseph Abboud trademarks primarily due to the write-off of inventory related to its recently closed Joseph Abboud store and e-commerce site and $5.2 million of charges related to our multi-year cost savings and operational excellence programs, including consulting, severance and lease termination costs. In the fourth quarter of fiscal 2018, adjusted items related to continuing operations consisted of a favorable net sales adjustment reflecting the impact of changes made to our loyalty programs. See Use of Non-GAAP Financial Measures for additional information on items excluded from adjusted EPS.

Lathi continued, “We are confident in the long-term prospects of our business, despite the near-term disruption from COVID-19, because of the progress we made in 2019 to enhance our competitive positioning and how we show up for customers. A few key highlights include strengthening our leadership and operating structure, offering a more compelling polished casual assortment, delivering double-digit e-commerce growth, shifting our marketing spend to digital from broadcast, and strengthening our balance sheet and our ability to reduce our debt. As we gain more visibility into macro-economic and business conditions, we plan to share more specifics on our financial outlook for fiscal 2020.”

Fourth Quarter Fiscal 2019 Results

The following commentary reflects results from the Company’s continuing operations.

 

 

 

 

 

 

 

 

 

Net Sales Summary(1)

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

% Total Sales

 

Comparable Sales

 

(U.S. dollars in millions)

 

Change

 

Change(2)

Men's Wearhouse

$

366.6

 

(2.2

)

%

 

(1.9

)

%

Jos. A. Bank

$

204.7

 

(5.0

)

%

 

(5.0

)

%

K&G

$

76.1

 

2.9

 

%

 

2.2

 

%

Moores(3)

$

43.6

 

(9.1

)

%

 

(10.0

)

%

Total

$

691.0

 

(3.0

)

%

 

(3.0

)

%

(1)

Amounts may not sum due to rounded numbers. Excludes last year’s $17.6 million favorable impact of changes made to our loyalty programs. See Use of Non-GAAP Financial Measures for additional information.

(2)

Comparable sales is defined as net sales from stores open at least 12 months at period end and includes e-commerce sales.

(3)

The Moores comparable sales change is based on the Canadian dollar.

Net Sales

On a GAAP basis, net sales decreased 5.3% to $691.0 million, primarily due to a decrease in comparable sales of 3.0% and last year’s favorable $17.6 million net sales adjustment related to the impact of changes made to our loyalty programs. On an adjusted basis, net sales decreased 3.0% primarily due to the decrease in comparable sales of 3.0%.

Comparable Sales

Men’s Wearhouse comparable sales decreased 1.9%. Comparable sales for clothing decreased due to a decrease in both average unit retail and units per transaction partially offset by an increase in transactions. Comparable rental services revenue increased 1.8% primarily due to an increase in average price per rental unit.

Jos. A. Bank comparable sales decreased 5.0% primarily due to a decrease in both transactions and average unit retail partially offset by an increase in units per transaction.

K&G comparable sales increased 2.2% primarily due to increases in both average unit retail and transactions while units per transaction were essentially flat.

Moores comparable sales decreased 10.0% primarily due to decreases in both transactions and average unit retail while units per transaction were essentially flat.

Gross Margin

On a GAAP basis, gross margin was $236.8 million, a decrease of $46.4 million, primarily due to the decrease in net sales and the write-off of $13.4 million of inventory related to the closure of our Joseph Abboud store and e-commerce site. As a percent of sales, gross margin decreased 450 basis points to 34.3%.

On an adjusted basis, gross margin was $250.2 million, a decrease of $15.4 million primarily due to the decrease in net sales. As a percent of sales, gross margin decreased 110 basis points to 36.2% primarily due to increased promotional activities, as well as deleveraging of occupancy costs.

Advertising Expense

Advertising expense decreased $1.5 million to $47.5 million primarily driven by reductions in television advertising reflecting a shift to more efficient online advertising. On an adjusted basis, as a percent of sales, advertising expense was flat at 6.9%.

Selling, General and Administrative Expenses (“SG&A”)

On a GAAP basis, SG&A increased $3.3 million to $224.3 million and increased 220 basis points as a percent of sales. On an adjusted basis, SG&A decreased $5.9 million to $215.0 million primarily due to lower store bonuses and employee-related benefit costs. As a percent of sales, adjusted SG&A increased 10 basis points to 31.1% primarily due to deleveraging from lower sales.

Operating (Loss) Income

On a GAAP basis, operating loss was $35.0 million compared to operating income of $13.3 million last year. On an adjusted basis, operating loss was $12.3 million compared to an operating loss of $4.3 million last year.

Net Interest Expense

Net interest expense was $16.7 million compared to $17.8 million last year. The decrease in interest expense was primarily due to the reduction of outstanding debt.

Effective Tax Rate

On a GAAP basis, the effective tax rate was 25.4% compared to 184.2% last year. The decrease in the effective tax rate was primarily driven by anniversarying a $6.1 million credit related to finalization of tax reform last year. On an adjusted basis, the effective tax rate was 22.4% compared to 23.0% last year.

Net (Loss) Earnings and EPS

On a GAAP basis, net loss from continuing operations was $38.6 million compared to net earnings from continuing operations of $3.8 million last year. Diluted loss per share was $0.80 compared to diluted EPS of $0.08 last year.

On an adjusted basis, net loss from continuing operations was $22.5 million compared to net loss from continuing operations of $17.0 million last year. Adjusted diluted loss per share was $0.46 compared to an adjusted diluted loss per share of $0.34 last year.

Fiscal Year 2019 Results

The following commentary reflects results from the Company’s continuing operations.

 

 

 

 

 

 

 

 

 

Net Sales Summary(1)

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

% Total Sales

 

Comparable Sales

 

(U.S. dollars in millions)

 

Change

 

Change(2)

Men's Wearhouse

$

1,655.9

 

(3.9

)

%

 

(3.5

)

%

Jos. A. Bank

$

706.0

 

(2.8

)

%

 

(2.3

)

%

K&G

$

318.4

 

(0.3

)

%

 

(0.3

)

%

Moores(3)

$

200.9

 

(6.8

)

%

 

(5.4

)

%

Total

$

2,881.3

 

(3.5

)

%

 

(3.0

)

%

(1)

Amounts may not sum due to rounded numbers. Excludes last year’s $17.6 million favorable impact of changes made to our loyalty programs. See Use of Non-GAAP Financial Measures for additional information.

(2)

Comparable sales is defined as net sales from stores open at least 12 months at period end and includes e-commerce sales.

(3)

The Moores comparable sales change is based on the Canadian dollar.

Net Sales

On a GAAP basis, net sales decreased 4.1% to $2,881.3 million primarily due to the decrease in comparable sales of 3.0% and the impact of changes to our loyalty program last year. On an adjusted basis, net sales decreased 3.5% primarily due to the decrease in comparable sales of 3.0%.

Comparable Sales

Men’s Wearhouse comparable sales decreased 3.5%. Comparable sales for clothing decreased primarily due to a decrease in average unit retail while both transactions and units per transaction were essentially flat. Comparable rental services revenue decreased 3.1% primarily due to a decrease in number of rentals.

Jos. A. Bank comparable sales decreased 2.3% primarily due to decreases in both average unit retail and transactions partially offset by an increase in units per transaction.

K&G comparable sales decreased 0.3% primarily due to decreases in both units per transaction and transactions partially offset by an increase in average unit retail.

Moores comparable sales decreased 5.4% primarily due to a decrease in transactions while both average unit retail and units per transaction were essentially flat.

Gross Margin

On a GAAP basis, gross margin was $1,168.6 million, a decrease of $142.0 million, primarily due to the decrease in net sales. As a percent of sales, gross margin decreased 310 basis points.

On an adjusted basis, gross margin was $1,185.1 million, a decrease of $111.9 million, primarily due to the decrease in net sales. As a percent of sales, gross margin decreased 230 basis points to 41.1%, primarily due to increased promotional activities, as well as deleveraging of occupancy costs.

Advertising Expense

Advertising expense decreased $6.2 million to $159.1 million primarily driven by reductions in television advertising reflecting a shift to more efficient online advertising. On an adjusted basis, as a percent of sales, advertising expense was flat at 5.5%.

SG&A Expenses

On a GAAP basis, SG&A decreased $8.1 million to $911.7 million and increased 100 basis points as a percent of sales. On an adjusted basis, SG&A decreased $25.0 million to $883.7 million primarily due to lower stock-based and incentive compensation costs, and lower employee-related benefit costs. As a percent of sales, adjusted SG&A increased 30 basis points to 30.7% primarily due to deleveraging from lower sales.

Operating Income

On a GAAP basis, operating income was $97.8 million compared to $225.6 million last year and operating margin decreased 410 basis points. On an adjusted basis, operating income was $142.4 million compared to $223.1 million last year. As a percent of sales, adjusted operating margin decreased 250 basis points to 4.9%.

Net Interest Expense and Net Loss on Extinguishment of Debt

Net interest expense was $70.7 million compared to $79.0 million last year. The decrease in interest expense was due primarily due to the reduction of outstanding debt.

On a GAAP basis, net loss on extinguishment of debt was $0.1 million this year compared to $30.3 million last year. This year’s net loss on extinguishment of debt resulted from the Company’s open market repurchases of senior notes. Last year’s net loss on extinguishment of debt resulted from the refinancing and repricing of our term loan as well as the partial redemption of $175 million of our senior notes. On an adjusted basis, there was a $0.1 million net loss on extinguishment of debt this year compared to a $0.9 million net loss on extinguishment of debt last year.

Effective Tax Rate

On a GAAP basis, the effective tax rate was 6.1% compared to 15.2% last year. On an adjusted basis, the effective tax rate was 24.3% compared to 23.7% last year.

Net Earnings and EPS

On a GAAP basis, net earnings from continuing operations were $25.4 million compared to net earnings from continuing operations of $98.6 million last year. Diluted EPS was $0.51 compared to diluted EPS of $1.94 last year.

On an adjusted basis, net earnings from continuing operations were $54.1 million compared to net earnings from continuing operations of $109.2 million last year. Adjusted diluted EPS was $1.08 compared to adjusted diluted EPS of $2.15 last year.

Balance Sheet Highlights

Cash and cash equivalents at the end of fiscal 2019 were $14.4 million, a decrease of $18.3 million compared to the end of 2018 primarily due to the decrease in sales and the use of cash on hand for costs related to our multi-year cost savings and operational excellence programs, and debt reduction. Total liquidity at the end of 2019 was $415.0 million, comprised of availability on our revolving credit facility and cash and cash equivalents.

Inventories decreased $27.4 million, or 3.8%, to $696.7 million at the end of 2019 compared to the end of 2018.

Total debt at the end of 2019 was approximately $1.1 billion, down $61.5 million compared to the end of 2018. During the fourth quarter of 2019, borrowings on our revolving credit facility decreased $17.5 million and we ended the year with $50.0 million of borrowings outstanding on our revolving credit facility.

Cash flow from operating activities for fiscal 2019 was $99.6 million compared to $322.7 million last year. Of the $223.0 million decrease, lower net earnings after adjusting for non-cash items and excluding non-cash lease expense represented $123.7 million; fluctuations in accounts payable and accrued liabilities due to timing of inventory receipts and related vendor payments, vendor payment terms and timing of capital expenditure projects represented $83.0 million; and other items represented $16.3 million.

Capital expenditures for fiscal 2019 were $88.5 million compared to $82.3 million last year.

FISCAL 2020 OUTLOOK

The Company notes that fiscal 2020 started strong with total retail comparable sales up 2.4% in February and all brands positive for the month. However, over the past two and a half weeks, coinciding with heightened actions taken by governments and citizens to curb the spread of COVID-19, the Company has seen a deceleration in comparable sales across brands. As a result, the Company is refraining from providing a specific financial outlook for fiscal 2020 at this time until economic and business conditions provide better visibility.

In response to the coronavirus outbreak, we have taken aggressive and prudent actions to reduce expenses and defer discretionary capital expenditures and inventory purchases to preserve our cash and liquidity. In addition to these efforts, we believe a preemptive borrowing on our ABL Facility is a prudent decision to ensure our ability to immediately access cash for any operational needs. As a result, on March 16, 2020, we executed a borrowing of $260.0 million under our ABL Facility. As of March 18, 2020, we have just under $400.0 million in cash. Of this amount, the Company notes that the net proceeds of approximately $100.0 million from the recently completed sale of the Joseph Abboud trademarks is considered restricted cash, which can be applied to acquire real property, equipment or other tangible assets to be used in the business.

STORE INFORMATION

 

 

 

 

 

 

 

 

 

February 1, 2020

 

February 2, 2019

 

Number

 

Sq. Ft.

 

Number

 

Sq. Ft.

 

of Stores

 

(000's)

 

of Stores

 

(000's)

Men's Wearhouse(a)

717

 

4,022.0

 

720

 

4,035.5

Men's Wearhouse and Tux

44

 

65.5

 

46

 

68.8

Jos. A. Bank(b)

474

 

2,235.3

 

484

 

2,280.2

K&G(c)

89

 

2,033.2

 

88

 

2,028.4

Moores

126

 

779.4

 

126

 

787.4

Total

1,450

 

9,135.4

 

1,464

 

9,200.3

(a)

Includes one Joseph Abboud store, which closed in February 2020.

(b)

Excludes 14 franchise stores.

(c)

85 and 84 stores offering women’s apparel at the end of each period, respectively.

Conference Call and Webcast Information

At 5:00 p.m. Eastern time on Wednesday, March 18, 2020, management will host a conference call and webcast to discuss fiscal 2019 fourth quarter and year end results. To access the conference call, please dial 201-689-8029. To access the live webcast, visit the Investor Relations section of the Company’s website at http://ir.tailoredbrands.com. A webcast archive will be available free on the website for approximately 90 days.

About Tailored Brands, Inc.

Tailored Brands is a leading omni-channel specialty retailer of menswear, including suits, formalwear and a broad selection of business casual offerings. We help our customers look and feel their best by delivering personalized products and services through our convenient network of stores and e-commerce sites. Our brands include Men's Wearhouse, Jos. A. Bank, Moores Clothing for Men and K&G.

For additional information on Tailored Brands, please visit the Company’s websites at www.tailoredbrands.com, www.menswearhouse.com, www.josbank.com, www.mooresclothing.com, and www.kgstores.com.

This press release contains forward-looking information, including the Company’s statements regarding its ability to weather short-term disruptions in its business caused by heightened actions taken by governments and citizens to curb the spread of COVID-19. In addition, words such as “expects,” “anticipates,” “envisions,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “guidance,” “may,” “projections,” and “business outlook,” variations of such words and similar expressions are intended to identify such forward-looking statements. The forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements that we make herein are not guarantees of future performance and actual results may differ materially from those in such forward-looking statements as a result of various factors. Factors that might cause or contribute to such differences include, but are not limited to: actions or inactions by governmental entities; domestic and international macro-economic conditions; inflation or deflation; the loss of, or changes in, key employees; success, or lack thereof, in formulating or executing our internal strategies and operating plans including new store and new market expansion plans; cost reduction initiatives and revenue enhancement strategies; changes to our capital allocation policy; changes in demand for our retail clothing or rental products; market trends in the retail or rental business; customer confidence and spending patterns; changes in traffic trends in our stores; customer acceptance of our merchandise strategies, including custom clothing; performance issues with key suppliers; disruptions in our supply chain; severe weather; public health crises, including the recent coronavirus outbreak; foreign currency fluctuations; government export and import policies, including the enactment of duties or tariffs; advertising or marketing activities of competitors; the impact of cybersecurity threats or data breaches; legal proceedings and the impact of climate change.

Forward-looking statements are intended to convey the Company’s expectations about the future, and speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by applicable law. However, any further disclosures made on related subjects in our subsequent reports on Forms 10-K, 10-Q and 8-K should be consulted. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995, and all written or oral forward-looking statements that are made by or attributable to us are expressly qualified in their entirety by the cautionary statements contained or referenced in this section.

(Tables Follow)

 

 

 

 

 

 

 

 

 

 

 

TAILORED BRANDS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) EARNINGS

(Unaudited)

 

For the Three Months Ended February 1, 2020 and February 2, 2019

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

February 1,

 

% of

 

 

February 2,

 

% of

 

 

 

2020

 

Sales

 

 

2019

 

Sales

 

Net sales:

 

 

 

 

 

 

 

 

 

 

Retail clothing product

$

608,859

 

88.1

 

%

 

$

646,868

 

88.6

 

%

 

Rental services

 

49,431

 

7.2

 

%

 

 

49,127

 

6.7

 

%

 

Alteration and other services

 

32,683

 

4.7

 

%

 

 

34,018

 

4.7

 

%

 

Total net sales

 

690,973

 

100.0

 

%

 

 

730,013

 

100.0

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Total cost of sales

 

454,139

 

65.7

 

%

 

 

446,735

 

61.2

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin (a):

 

 

 

 

 

 

 

 

 

 

Retail clothing product

 

296,187

 

48.6

 

%

 

 

341,401

 

52.8

 

%

 

Rental services

 

41,512

 

84.0

 

%

 

 

41,226

 

83.9

 

%

 

Alteration and other services

 

993

 

3.0

 

%

 

 

2,376

 

7.0

 

%

 

Occupancy costs

 

(101,858

)

(14.7

)

%

 

 

(101,725

)

(13.9

)

%

 

Total gross margin

 

236,834

 

34.3

 

%

 

 

283,278

 

38.8

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Advertising expense

 

47,526

 

6.9

 

%

 

 

49,007

 

6.7

 

%

 

Selling, general and administrative expenses

 

224,308

 

32.5

 

%

 

 

220,964

 

30.3

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

(35,000

)

(5.1

)

%

 

 

13,307

 

1.8

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(16,656

)

(2.4

)

%

 

 

(17,819

)

(2.4

)

%

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

(51,656

)

(7.5

)

%

 

 

(4,512

)

(0.6

)

%

 

 

 

 

 

 

 

 

 

 

 

 

Benefit for income taxes

 

(13,099

)

(1.9

)

%

 

 

(8,310

)

(1.1

)

%

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) earnings from continuing operations

 

(38,557

)

(5.6

)

%

 

 

3,798

 

0.5

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from discontinued operations, net of tax

 

4,463

 

0.6

 

%

 

 

2,420

 

0.3

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) earnings

$

(34,094

)

(4.9

)

%

 

$

6,218

 

0.9

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) earnings from continuing operations per diluted common share

$

(0.80

)

 

 

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income from discontinued operations per diluted common share

$

0.09

 

 

 

 

$

0.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per diluted common share

$

(0.70

)

 

 

 

$

0.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average diluted common shares outstanding:

 

48,467

 

 

 

 

 

50,607

 

 

 

 

(a)

Gross margin percent of sales is calculated as a percentage of related sales.

 

 

 

 

 

 

 

 

 

 

 

TAILORED BRANDS, INC.

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) EARNINGS

 

 

 

(Unaudited)

 

 

 

 

 

 

 

For the Year Ended February 1, 2020 and February 2, 2019

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

 

 

 

% of

 

 

 

 

% of

 

 

 

2019

 

Sales

 

 

2018

 

Sales

 

 

 

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

 

 

Retail clothing product

$

2,358,392

 

81.9

 

%

 

$

2,454,747

 

81.7

 

%

 

Rental services

 

383,521

 

13.3

 

%

 

 

399,146

 

13.3

 

%

 

Alteration and other services

 

139,348

 

4.8

 

%

 

 

150,618

 

5.0

 

%

 

Total net sales

 

2,881,261

 

100.0

 

%

 

 

3,004,511

 

100.0

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Total cost of sales

 

1,712,649

 

59.4

 

%

 

 

1,693,903

 

56.4

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin (a):

 

 

 

 

 

 

 

 

 

 

Retail clothing product

 

1,250,750

 

53.0

 

%

 

 

1,358,715

 

55.4

 

%

 

Rental services

 

326,771

 

85.2

 

%

 

 

339,903

 

85.2

 

%

 

Alteration and other services

 

7,046

 

5.1

 

%

 

 

18,027

 

12.0

 

%

 

Occupancy costs

 

(415,955

)

(14.4

)

%

 

 

(406,037

)

(13.5

)

%

 

Total gross margin

 

1,168,612

 

40.6

 

%

 

 

1,310,608

 

43.6

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Advertising expense

 

159,052

 

5.5

 

%

 

 

165,248

 

5.5

 

%

 

Selling, general and administrative expenses

 

911,722

 

31.6

 

%

 

 

919,798

 

30.6

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

97,838

 

3.4

 

%

 

 

225,562

 

7.5

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(70,749

)

(2.5

)

%

 

 

(79,007

)

(2.6

)

%

 

Loss on extinguishment of debt, net

 

(77

)

(0.0

)

%

 

 

(30,253

)

(1.0

)

%

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

27,012

 

0.9

 

%

 

 

116,302

 

3.9

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

1,645

 

0.1

 

%

 

 

17,706

 

0.6

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings from continuing operations

 

25,367

 

0.9

 

%

 

 

98,596

 

3.3

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations, net of tax

 

(107,643

)

(3.7

)

%

 

 

(15,356

)

(0.5

)

%

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) earnings

$

(82,276

)

(2.9

)

%

 

$

83,240

 

2.8

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings from continuing operations per diluted common share

$

0.51

 

 

 

 

$

1.94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from discontinued operations per diluted common share

$

(2.16

)

 

 

 

$

(0.30

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per diluted common share

$

(1.65

)

 

 

 

$

1.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average diluted common shares outstanding:

 

49,929

 

 

 

 

 

50,725

 

 

 

 

(a)

Gross margin percent of sales is calculated as a percentage of related sales.

 

 

 

 

 

 

 

TAILORED BRANDS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

February 1,

 

February 2,

 

 

2020

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

$

14,420

 

 

$

32,671

 

 

Accounts receivable, net

 

39,973

 

 

 

34,686

 

 

Inventories

 

696,657

 

 

 

724,086

 

 

Assets held for sale

 

34,935

 

 

 

-

 

 

Other current assets

 

49,130

 

 

 

66,823

 

 

Current assets - discontinued operations

 

-

 

 

 

171,376

 

 

Total current assets

 

835,115

 

 

 

1,029,642

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

395,812

 

 

 

424,316

 

 

Operating lease right-of-use assets

 

880,291

 

 

 

-

 

 

Rental product, net

 

92,897

 

 

 

99,770

 

 

Goodwill

 

79,271

 

 

 

79,491

 

 

Intangible assets, net

 

116,843

 

 

 

153,711

 

 

Other assets

 

18,730

 

 

 

8,489

 

 

Non-current assets - discontinued operations

 

-

 

 

 

25,071

 

 

Total assets

$

2,418,959

 

 

$

1,820,490

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

$

183,897

 

 

$

204,775

 

 

Accrued expenses and other current liabilities

 

246,110

 

 

 

268,698

 

 

Current portion of operating lease liabilities

 

186,304

 

 

 

-

 

 

Income taxes payable

 

3,416

 

 

 

13,478

 

 

Current portion of long-term debt

 

9,000

 

 

 

11,619

 

 

Current liabilities - discontinued operations

 

-

 

 

 

40,025

 

 

Total current liabilities

 

628,727

 

 

 

538,595

 

 

 

 

 

 

 

 

 

Long-term debt, net

 

1,094,398

 

 

 

1,153,242

 

 

Operating lease liabilities

 

726,327

 

 

 

-

 

 

Deferred taxes and other liabilities

 

67,813

 

 

 

119,545

 

 

Non-current liabilities - discontinued operations

 

-

 

 

 

5,477

 

 

Total liabilities

 

2,517,265

 

 

 

1,816,859

 

 

 

 

 

 

 

 

 

Shareholders' (deficit) equity:

 

 

 

 

 

 

Preferred stock

 

-

 

 

 

-

 

 

Common stock

 

508

 

 

 

501

 

 

Capital in excess of par

 

514,397

 

 

 

505,157

 

 

Accumulated deficit

 

(568,697

)

 

 

(468,048

)

 

Accumulated other comprehensive loss

 

(34,514

)

 

 

(33,979

)

 

Treasury stock, at cost

 

(10,000

)

 

 

-

 

 

Total shareholders' (deficit) equity

 

(98,306

)

 

 

3,631

 

 

Total liabilities and shareholders' (deficit) equity

$

2,418,959

 

 

$

1,820,490

 

 

 

 

 

 

 

 

 

TAILORED BRANDS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

For the Year Ended February 1, 2020 and February 2, 2019

(In thousands)

 

 

 

 

 

 

 

 

Fiscal Year

 

 

 

2019

 

 

2018

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net (loss) earnings

$

(82,276

)

 

$

83,240

 

 

Adjustments to net (loss) earnings:

 

 

 

 

 

 

Depreciation and amortization

 

107,174

 

 

 

104,216

 

 

Non-cash lease expense

 

194,529

 

 

 

-

 

 

Rental product amortization

 

34,289

 

 

 

35,058

 

 

Goodwill impairment charge

 

-

 

 

 

23,991

 

 

Asset impairment charges

 

3,404

 

 

 

1,026

 

 

Loss on extinguishment of debt, net

 

77

 

 

 

30,253

 

 

Amortization of deferred financing costs and discount on long-term debt

 

1,878

 

 

 

3,422

 

 

Loss on divestiture of business

 

83,513

 

 

 

3,766

 

 

Loss on release of cumulative foreign currency translation adjustment

 

26,885

 

 

 

-

 

 

Loss on disposition of assets

 

2,628

 

 

 

4,821

 

 

Other

 

(4,479

)

 

 

7,033

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

3,161

 

 

 

2,264

 

 

Inventories

 

26,243

 

 

 

(4,482

)

 

Rental product

 

(30,513

)

 

 

(16,217

)

 

Other assets

 

(20,015

)

 

 

9,385

 

 

Accounts payable, accrued expenses and other current liabilities

 

(39,325

)

 

 

43,706

 

 

Income taxes payable

 

(11,750

)

 

 

9,993

 

 

Operating lease and other liabilities

 

(195,782

)

 

 

(18,803

)

 

Net cash provided by operating activities

 

99,641

 

 

 

322,672

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Capital expenditures

 

(88,502

)

 

 

(82,286

)

 

Proceeds from divestiture of business, net

 

45,034

 

 

 

17,755

 

 

Proceeds from sales of property and equipment

 

311

 

 

 

-

 

 

Net cash used in investing activities

 

(43,157

)

 

 

(64,531

)

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Payments on old term loan

 

-

 

 

 

(993,420

)

 

Proceeds from new term loan

 

-

 

 

 

895,500

 

 

Payments on new term loan

 

(9,370

)

 

 

(9,000

)

 

Proceeds from asset-based revolving credit facility

 

1,333,000

 

 

 

655,500

 

 

Payments on asset-based revolving credit facility

 

(1,331,500

)

 

 

(607,000

)

 

Repurchase and retirement of senior notes

 

(54,425

)

 

 

(199,365

)

 

Deferred financing costs

 

-

 

 

 

(6,713

)

 

Cash dividends paid

 

(28,071

)

 

 

(36,946

)

 

Proceeds from issuance of common stock

 

1,561

 

 

 

6,649

 

 

Tax payments related to vested deferred stock units

 

(1,216

)

 

 

(7,901

)

 

Repurchases of common stock

 

(10,000

)

 

 

-

 

 

Net cash used in financing activities

 

(100,021

)

 

 

(302,696

)

 

Effect of exchange rate changes

 

2,526

 

 

 

(3,621

)

 

 

 

 

 

 

 

 

DECREASE IN CASH AND CASH EQUIVALENTS

 

(41,011

)

 

 

(48,176

)

 

Balance at beginning of period

 

55,431

 

 

 

103,607

 

 

Balance at end of period

$

14,420

 

 

$

55,431

 

 

TAILORED BRANDS, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)

Use of Non-GAAP Financial Measures

In addition to providing financial results in accordance with GAAP, we have provided adjusted information for the fiscal fourth quarters and years ended February 1, 2020 and February 2, 2019. This non-GAAP financial information is provided to enhance the user’s overall understanding of the Company’s financial performance by removing the impacts of large, unusual or unique transactions that we believe are not indicative of our core business results. In addition, we have recast our non-GAAP presentation for prior periods to remove the results of the corporate apparel business and provide results from continuing operations. The Company believes that disclosure of non-GAAP results for its continuing operations is meaningful to the user’s overall understanding of the Company’s financial performance.

For fiscal 2019, adjusted items consist of costs related to our previously announced sale of the Joseph Abboud trademarks and our multi-year cost savings and operational excellence programs and the net release of tax-related valuation allowances. For fiscal 2018, adjusted items consisted of a favorable adjustment to net sales reflecting a reduction of the deferred revenue liability as a result of changes made to our loyalty programs during the fourth quarter of 2018, losses on extinguishment of debt related to the refinancing and re-pricing of the Company’s term loan and the partial redemption of senior notes, costs related to the retirement of our former CEO, costs related to the closure of a rental product distribution center, a loss upon sale of our divestiture of the MW Cleaners business and finalization of the tax effects of the Tax Cuts and Jobs Act of 2017.

Management uses these adjusted results to assess the Company’s performance, to make decisions about how to allocate resources and to develop expectations for future performance. In addition, adjusted EPS from continuing operations is used as a performance measure in the Company’s executive compensation program to determine the number of performance units that are ultimately earned for certain equity awards.

The non-GAAP financial information should be considered in addition to, not as a substitute for or as being superior to, financial information prepared in accordance with GAAP. Management strongly encourages investors and shareholders to review the Company’s financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

Reconciliations of non-GAAP information to our actual results follow and amounts may not sum due to rounded numbers. In addition, only the line items affected by adjustments are shown in the tables.

GAAP to Non-GAAP Adjusted Consolidated Statements of (Loss) Earnings Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP to Non-GAAP Adjusted - Three Months Ended February 1, 2020

 

 

 

 

 

Multi-Year Cost

 

Costs Related to the

 

 

 

 

 

 

 

GAAP

 

Savings and Operational

 

Agreement to Sell the

 

Total

 

Non-GAAP

 

Consolidated Results

 

Results

 

Excellence Program(1)

 

Joseph Abboud Trademarks(2)

 

Adjustments

 

Adjusted Results

 

Retail clothing product gross margin

 

$

296,187

 

 

$

-

 

 

$

13,381

 

 

$

13,381

 

 

$

309,568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total gross margin

 

 

236,834

 

 

 

-

 

 

 

13,381

 

 

 

13,381

 

 

 

250,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

$

224,308

 

 

$

(5,238

)

 

 

(4,040

)

 

$

(9,278

)

 

$

215,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(35,000

)

 

 

5,238

 

 

 

17,421

 

 

 

22,659

 

 

 

(12,341

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit for income taxes(3)

 

 

(13,099

)

 

 

 

 

 

 

 

 

6,600

 

 

 

(6,499

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from continuing operations

 

 

(38,557

)

 

 

 

 

 

 

 

 

16,059

 

 

 

(22,498

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from continuing operations per diluted common share

 

$

(0.80

)

 

 

 

 

 

 

 

$

0.34

 

 

$

(0.46

)

 

(1)

Consists of $3.2 million in consulting costs, $1.8 million in severance costs, and $0.2 million in lease termination costs.

(2)

Consists of a $13.4 million write-off of inventory related to the Joseph Abboud store and e-commerce site, $2.6 million of impairment/accelerated depreciation charges for the Joseph Abboud store and $1.4 million of other transaction-related costs.

(3)

The tax effect of the excluded items is computed as the difference between tax expense on a GAAP basis and tax expense on an adjusted non-GAAP basis.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP to Non-GAAP Adjusted - Year Ended February 1, 2020

 

 

 

 

 

Multi-Year Cost

 

Costs Related to the

 

 

 

 

 

 

 

GAAP

 

Savings and Operational

 

Agreement to Sell the

 

Total

 

Non-GAAP

 

Consolidated Results

 

Results

 

Excellence Program(1)

 

Joseph Abboud Trademarks(2)

 

Adjustments

 

Adjusted Results

 

Retail clothing product gross margin

 

$

1,250,750

 

$

-

 

 

$

13,381

 

 

$

13,381

 

 

$

1,264,131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental services gross margin

 

$

326,771

 

$

2,938

 

 

$

-

 

 

$

2,938

 

 

$

329,709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alteration and other services gross margin

 

 

7,046

 

 

213

 

 

 

-

 

 

 

213

 

 

 

7,259

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total gross margin

 

 

1,168,612

 

 

3,151

 

 

 

13,381

 

 

 

16,532

 

 

 

1,185,144

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

911,722

 

 

(23,978

)

 

 

(4,040

)

 

 

(28,018

)

 

 

883,704

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

97,838

 

 

27,129

 

 

 

17,421

 

 

 

44,550

 

 

 

142,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes(3)

 

 

1,645

 

 

 

 

 

 

 

 

15,771

 

 

 

17,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings from continuing operations

 

 

25,367

 

 

 

 

 

 

 

 

28,779

 

 

 

54,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings from continuing operations per diluted common share

 

$

0.51

 

 

 

 

 

 

 

$

0.57

 

 

$

1.08

 

(1)

Consists of $17.9 million in consulting costs, $5.7 million in severance costs, $2.9 million of rental product write-offs related to the closure of a distribution center in Canada and $0.6 million in lease termination costs.

(2)

Consists of a $13.4 million write-off of inventory related to the Joseph Abboud store and e-commerce site, $2.6 million of impairment/accelerated depreciation charges for the Joseph Abboud store and $1.4 million of other transaction-related costs.

(3)

The tax effect of the excluded items is computed as the difference between tax expense on a GAAP basis and tax expense on an adjusted non-GAAP basis. The adjusted non-GAAP rate also excludes a $5.9 million net valuation allowance release.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP to Non-GAAP Adjusted - Three Months Ended February 2, 2019 (Restated)

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

Changes to

 

Total

 

Non-GAAP

 

Consolidated Results

 

Results

 

Loyalty Program(1)

 

Adjustments

 

Adjusted Results

 

Total net sales

 

$

730,013

 

 

$

(17,630

)

 

$

(17,630

)

 

$

712,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total gross margin

 

 

283,278

 

 

 

(17,630

)

 

 

(17,630

)

 

 

265,648

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

220,964

 

 

 

-

 

 

 

-

 

 

 

220,964

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

13,307

 

 

 

(17,630

)

 

 

(17,630

)

 

 

(4,323

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes(2)

 

 

(8,310

)

 

 

 

 

 

3,209

 

 

 

(5,101

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations

 

 

3,798

 

 

 

 

 

 

(20,839

)

 

 

(17,041

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss) from continuing operations per diluted common share

 

$

0.08

 

 

 

 

 

$

(0.41

)

 

$

(0.34

)

 

(1)

Consists of a favorable adjustment to net sales totaling $17.6 million reflecting the impact of changes made to our loyalty programs.

(2)

The tax effect of the excluded items is computed as the difference between tax expense on a GAAP basis and tax expense on an adjusted non-GAAP basis. The adjusted non-GAAP rate also excludes a credit related to the finalization of the effects of the Tax Cuts and Jobs Act of 2017 totaling $6.1 million.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP to Non-GAAP Adjusted - Year Ended February 2, 2019 (Restated)

 

 

 

 

 

 

 

 

 

Partial

 

Closure of U.S. Rental

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

Divestiture of

 

Refinancing of

 

Redemption of

 

Product Distribution

 

 

CEO Retirement

Changes to

 

Total

 

Non-GAAP

 

Consolidated Results

 

Results

 

MW Cleaners(1)

 

Term Loan(2)

 

Senior Notes(3)

 

Center(4)

 

 

Costs(5)

Loyalty Program(6)

 

Adjustments

 

Adjusted Results

 

Total net sales

 

$

3,004,511

 

 

$

-

 

 

$

-

 

$

-

 

$

-

 

 

$

-

 

 

$

(17,630

)

 

$

(17,630

)

 

$

2,986,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental services gross margin

 

 

339,903

 

 

 

-

 

 

 

-

 

 

-

 

 

4,029

 

 

 

-

 

 

 

-

 

 

 

4,029

 

 

 

343,932

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total gross margin

 

 

1,310,608

 

 

 

-

 

 

 

-

 

 

-

 

 

4,029

 

 

 

-

 

 

 

(17,630

)

 

 

(13,601

)

 

 

1,297,007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

919,798

 

 

 

(3,766

)

 

 

-

 

 

-

 

 

(925

)

 

 

(6,417

)

 

 

-

 

 

 

(11,108

)

 

 

908,690

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

225,562

 

 

 

3,766

 

 

 

-

 

 

-

 

 

4,954

 

 

 

6,417

 

 

 

(17,630

)

 

 

(2,493

)

 

 

223,069

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on extinguishment of debt

 

 

(30,253

)

 

 

-

 

 

 

21,278

 

 

8,122

 

 

-

 

 

 

-

 

 

 

-

 

 

 

29,400

 

 

 

(853

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes(7)

 

 

17,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,277

 

 

 

33,983

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings from continuing operations

 

 

98,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,630

 

 

 

109,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings from continuing operations per diluted common share

 

$

1.94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0.21

 

 

$

2.15

 

 

(1)

Consists of a $3.8 million loss upon divestiture of MW Cleaners business.

(2)

Consists of the elimination of unamortized deferred financing costs and original issue discount related to the refinancing and repricing of the Term Loan totaling $21.3 million.

(3)

Consists of the $6.1 million premium and elimination of unamortized deferred financing costs totaling $2.0 million related to the partial redemption of senior notes.

(4)

Consists of $4.0 million of rental product write-offs, $0.4 million of severance, $0.3 million of closure related costs and $0.3 million of accelerated depreciation.

(5)

Consists of $5.4 million of severance and consulting costs, $0.7 million related to accelerated vesting of certain share-based awards (net of the impact of forfeited awards) and $0.3 million of other costs.

(6)

Consists of a favorable adjustment to net sales totaling $17.6 million reflecting the impact of changes made to our loyalty programs.

(7)

The tax effect of the excluded items is computed as the difference between tax expense on a GAAP basis and tax expense on an adjusted non-GAAP basis. The adjusted non-GAAP rate also excludes a credit related to the finalization of the effects of the Tax Cuts and Jobs Act of 2017 totaling $6.1 million.

 

Investor Relations
(281) 776-7575
ir@tailoredbrands.com

Julie MacMedan, VP, Investor Relations
Tailored Brands, Inc.

Source: Tailored Brands, Inc.