EXPRESS, INC. - 10-Q filing on 2012-08-30

Guarantor Subsidiaries (Tables)

6 Months Ended

Jul. 28, 2012

Guarantor Financial Information [Abstract]

Guarantor Financial Information [Table Text Block]



	July 28, 2012
	Express, Inc.		Subsidiary Issuers			Guarantor Subsidiaries		Other Subsidiaries		Eliminations			Consolidated Total
Assets
Current assets
Cash and cash equivalents	$	938	$	126,914		$	—	$	2,322	$	—		$	130,174
Receivables, net	—		11,330			—		978		—			12,308
Inventories	—		208,557			—		1,796		—			210,353
Prepaid minimum rent	—		22,943			—		600		—			23,543
Intercompany loan receivable	—		14,245			—		—		(14,245		)	—
Intercompany receivable	—		—			18,672		5,862		(24,534		)	—
Other	843		24,084			—		51		—			24,978
Total current assets	1,781		408,073			18,672		11,609		(38,779		)	401,356
Property and equipment, net	—		242,354			—		9,351		—			251,705
Tradename/domain name	—		197,694			—		—		—			197,694
Investment in subsidiary	294,676		(296		)	—		288,891		(583,271		)	—
Deferred tax assets	852		11,798			—		—					12,650
Other assets	—		11,966			—		4		—			11,970
Total assets	$	297,309	$	871,589		$	18,672	$	309,855	$	(622,050	)	$	875,375
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	—	$	161,186		$	—	$	622	$	—		$	161,808
Deferred revenue	—		4,013			15,116		59		—			19,188
Accrued bonus	—		4,118			—		—		—			4,118
Accrued expenses	10		85,821			—		486		—			86,317
Intercompany payable	—		24,534			—		—		(24,534		)	—
Intercompany loan payable	—		—			—		14,245		(14,245		)	—
Total current liabilities	10		279,672			15,116		15,412		(38,779		)	271,431
Long-term debt	—		198,685			—		—		—			198,685
Other long-term liabilities	—		104,341			—		3,619		—			107,960
Total liabilities	10		582,698			15,116		19,031		(38,779		)	578,076
Commitments and Contingencies (Note 12)
Total stockholders’ equity	297,299		288,891			3,556		290,824		(583,271		)	297,299
Total liabilities and stockholders’ equity	$	297,309	$	871,589		$	18,672	$	309,855	$	(622,050	)	$	875,375

EXPRESS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

(Amounts in thousands)

(Unaudited)



	January 28, 2012
	Express, Inc.			Subsidiary Issuers		Guarantor Subsidiaries		Other Subsidiaries		Eliminations			Consolidated Total
Assets
Current assets
Cash and cash equivalents	$	1,575		$	149,237	$	—	$	1,550	$	—		$	152,362
Receivables, net	—			7,439		—		1,588		—			9,027
Inventories	—			206,507		—		2,447		—			208,954
Prepaid minimum rent	—			22,985		—		476		—			23,461
Intercompany loan receivable	—			12,684		—		—		(12,684		)	—
Intercompany receivable	—			—		26,570		5,862		(32,432		)	—
Other	—			18,228		—		4		—			18,232
Total current assets	1,575			417,080		26,570		11,927		(45,116		)	412,036
Property and equipment, net	—			218,701		—		8,605		—			227,306
Tradename/domain name	—			197,509		—		—		—			197,509
Investment in subsidiary	277,920			127		—		272,135		(550,182		)	—
Deferred tax assets	852			11,610		—		—		—			12,462
Other assets	—			12,882		—		4		—			12,886
Total assets	$	280,347		$	857,909	$	26,570	$	292,671	$	(595,298	)	$	862,199
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	—		$	133,061	$	—	$	618	$	—		$	133,679
Deferred revenue	—			4,493		23,141		50		—			27,684
Accrued bonus	—			14,671		—		18		—			14,689
Accrued expenses	(800		)	108,422		—		1,539		—			109,161
Accounts payable and accrued expenses—related parties	—			5,997		—		—		—			5,997
Intercompany payable	—			32,432		—		—		(32,432		)	—
Intercompany loan payable	—			—		—		12,684		(12,684		)	—
Total current liabilities	(800		)	299,076		23,141		14,909		(45,116		)	291,210
Long-term debt	—			198,539		—		—		—			198,539
Other long-term liabilities	—			88,159		—		3,144		—			91,303
Total liabilities	(800		)	585,774		23,141		18,053		(45,116		)	581,052
Commitments and Contingencies (Note 12)
Total stockholders’ equity	281,147			272,135		3,429		274,618		(550,182		)	281,147
Total liabilities and stockholders’ equity	$	280,347		$	857,909	$	26,570	$	292,671	$	(595,298	)	$	862,199



	Thirteen Weeks Ended July 28, 2012
				Subsidiary		Guarantor			Other						Consolidated
	Express, Inc.			Issuers		Subsidiaries			Subsidiaries			Eliminations			Total
Net sales	$	—		$	451,455	$	—		$	3,424		$	—		$	454,879
Cost of goods sold, buying and occupancy costs	—			304,434		—			3,924			—			308,358
Gross profit	—			147,021		—			(500		)	—			146,521
Selling, general, and administrative expenses	230			113,683		(55		)	1,449			—			115,307
Other operating expense (income), net	—			1,783		—			(1,765		)	—			18
Operating income (loss)	(230		)	31,555		55			(184		)	—			31,196
Interest expense	—			4,773		—			(88		)	88			4,773
Interest income	—			88		—			—			(88		)	—
(Income) loss in subsidiary	(16,059		)	261		—			(16,059		)	31,857			—
Other expense (income), net	—			—		—			220			—			220
Income (loss) before income taxes	15,829			26,433		55			15,743			(31,857		)	26,203
Income tax expense (benefit)	—			10,374		—			—			—			10,374
Net income (loss)	$	15,829		$	16,059	$	55		$	15,743		$	(31,857	)	$	15,829
Foreign currency translation	81			81		—			162			(243		)	81
Comprehensive income	$	15,910		$	16,140	$	55		$	15,905		$	(32,100	)	$	15,910

EXPRESS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

(Amounts in thousands)

(Unaudited)



	Thirteen Weeks Ended July 30, 2011
				Subsidiary			Guarantor			Other						Consolidated
	Express, Inc.			Issuers			Subsidiaries			Subsidiaries			Eliminations			Total
Net sales	$	—		$	446,041		$	—		$	—		$	—		$	446,041
Cost of goods sold, buying and occupancy costs	—			296,113			—			96			—			296,209
Gross profit	—			149,928			—			(96		)	—			149,832
Selling, general, and administrative expenses	257			117,433			(52		)	44			—			117,682
Other operating expense (income), net	—			402			—			—			—			402
Operating income (loss)	(257		)	32,093			52			(140		)	—			31,748
Interest expense	—			10,510			—			—			—			10,510
Interest income	—			(2		)	—			—			—			(2		)
(Income) loss in subsidiary	(12,874		)	90			—			(12,874		)	25,658			—
Income (loss) before income taxes	12,617			21,495			52			12,734			(25,658		)	21,240
Income tax expense (benefit)	(1		)	8,621			—			—			—			8,620
Net income (loss)	$	12,618		$	12,874		$	52		$	12,734		$	(25,658	)	$	12,620
Foreign currency translation	—			—			—			(2		)				(2		)
Comprehensive income	$	12,618		$	12,874		$	52		$	12,732		$	(25,658	)	$	12,618

EXPRESS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

(Amounts in thousands)

(Unaudited)



	Twenty-Six Weeks Ended July 28, 2012
				Subsidiary		Guarantor			Other						Consolidated
	Express, Inc.			Issuers		Subsidiaries			Subsidiaries			Eliminations			Total
Net sales	$	—		$	944,296	$	—		$	6,535		$	—		$	950,831
Cost of goods sold, buying and occupancy costs	—			607,923		—			7,620			—			615,543
Gross profit	—			336,373		—			(1,085		)	—			335,288
Selling, general, and administrative expenses	500			226,395		(127		)	2,734			—			229,502
Other operating expense (income), net	—			3,309		—			(3,276		)	—			33
Operating income (loss)	(500		)	106,669		127			(543		)	—			105,753
Interest expense	—			9,556		—			(2		)	2			9,556
Interest income	—			1		—			—			(2		)	(1		)
(Income) loss in subsidiary	(58,402		)	426		—			(58,402		)	116,378			—
Other expense (income), net	—			—		—			12			—			12
Income (loss) before income taxes	57,902			96,686		127			57,849			(116,378		)	96,186
Income tax expense (benefit)	—			38,284		—			—			—			38,284
Net income (loss)	$	57,902		$	58,402	$	127		$	57,849		$	(116,378	)	$	57,902
Foreign currency translation	3			3		—			6			(9		)	3
Comprehensive income	$	57,905		$	58,405	$	127		$	57,855		$	(116,387	)	$	57,905

EXPRESS, INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

(Amounts in thousands)

(Unaudited)



	Twenty-Six Weeks Ended July 30, 2011
				Subsidiary			Guarantor			Other						Consolidated
	Express, Inc.			Issuers			Subsidiaries			Subsidiaries			Eliminations			Total
Net sales	$	—		$	913,418		$	—		$	—		$	—		$	913,418
Cost of goods sold, buying and occupancy costs	—			585,176			—			96			—			585,272
Gross profit	—			328,242			—			(96		)	—			328,146
Selling, general, and administrative expenses	955			226,298			(122		)	44			—			227,175
Other operating expense (income), net	—			(200		)	—			—			—			(200		)
Operating income (loss)	(955		)	102,144			122			(140		)	—			101,171
Interest expense	—			21,515			—			—			—			21,515
Interest income	—			(5		)	—			—			—			(5		)
(Income) loss in subsidiary	(48,588		)	20			—			(48,588		)	97,156			—
Income (loss) before income taxes	47,633			80,614			122			48,448			(97,156		)	79,661
Income tax expense (benefit)	2			32,026			—			—			—			32,028
Net income (loss)	$	47,631		$	48,588		$	122		$	48,448		$	(97,156	)	$	47,633
Foreign currency translation	—			—			—			(2		)	—			(2		)
Comprehensive income	$	47,631		$	48,588		$	122		$	48,446		$	(97,156	)	$	47,631



	Twenty-Six Weeks Ended July 28, 2012
				Subsidiary			Guarantor		Other						Consolidated
	Express, Inc.			Issuers			Subsidiaries		Subsidiaries			Eliminations			Total
Operating Activities
Net cash provided by (used in) operating activities	$	(1,260	)	$	75,007		$	—	$	535		$	—		$	74,282
Investing Activities
Capital expenditures	—			(44,337		)	—		(1,324		)	—			(45,661		)
Purchase of intangible assets	—			(185		)	—		—			—			(185		)
Distributions received	51,497			—			—		51,497			(102,994		)	—
Net cash provided by (used in) investing activities	51,497			(44,522		)	—		50,173			(102,994		)	(45,846		)
Financing Activities
Payments on capital lease obligation	—			(27		)	—		—			—			(27		)
Excess tax benefit from share-based compensation	—			277			—		—			—			277
Proceeds from share-based compensation	623			—			—		—			—			623
Intercompany loan	—			(1,561		)	—		1,561			—			—
Distributions paid	—			(51,497		)	—		(51,497		)	102,994			—
Repurchase of common stock	(51,497		)	—			—		—			—			(51,497		)
Net cash provided by (used in) financing activities	(50,874		)	(52,808		)	—		(49,936		)	102,994			(50,624		)

Effect of exchange rate on cash	—			—			—		—			—			—

Net increase (decrease) in cash and cash equivalents	(637		)	(22,323		)	—		772			—			(22,188		)
Cash and cash equivalents, beginning of period	1,575			149,237			—		1,550			—			152,362
Cash and cash equivalents, end of period	$	938		$	126,914		$	—	$	2,322		$	—		$	130,174

EXPRESS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(Amounts in thousands)

(Unaudited)



	Twenty-Six Weeks Ended July 30, 2011
				Subsidiary			Guarantor		Other					Consolidated
	Express, Inc.			Issuers			Subsidiaries		Subsidiaries			Eliminations		Total
Operating Activities
Net cash provided by (used in) operating activities	$	(162	)	$	41,407		$	—	$	7		$	—	$	41,252
Investing Activities
Capital expenditures	—			(33,553		)	—		—			—		(33,553		)
Purchase of intangible assets	—			(60		)	—		—			—		(60		)
Net cash provided by (used in) investing activities	—			(33,613		)	—		—			—		(33,613		)
Financing Activities
Repayments of long-term debt arrangements	—			(49,775		)	—		—			—		(49,775		)
Costs incurred in connection with debt arrangements and Senior Notes	—			(1,161		)	—		—			—		(1,161		)
Proceeds from share-based compensation	191			—			—		—			—		191
Repurchase of common stock	(102		)	—			—		—			—		(102		)
Net cash provided by (used in) financing activities	89			(50,936		)	—		—			—		(50,847		)

Effect of exchange rate on cash	—			—			—		(2		)	—		(2		)

Net increase (decrease) in cash and cash equivalents	(73		)	(43,142		)	—		5			—		(43,210		)
Cash and cash equivalents, beginning of period	1,647			186,115			—		—			—		187,762
Cash and cash equivalents, end of period	$	1,574		$	142,973		$	—	$	5		$	—	$	144,552