| CONDENSED CONSOLIDATED FINANCIAL INFORMATION |
11. CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Our debt covenants restrict MSI, and certain subsidiaries of MSI, from various activities including the incurrence of additional debt, payment of dividends and the repurchase of MSI’s capital stock (subject to certain exceptions), among other things. The following condensed consolidated financial information represents the financial information of MSI and its wholly-owned subsidiaries subject to these restrictions. The information is presented in accordance with the requirements of Rule 12-04 under the SEC’s Regulation S-X.
Michaels Stores, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
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May 4,
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February 2,
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May 5,
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ASSETS
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2019
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2019
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2018
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Current assets:
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Cash and equivalents
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$
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245,944
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$
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245,108
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$
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421,685
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Merchandise inventories
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1,101,729
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1,108,715
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1,121,563
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Prepaid expenses and other current assets
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101,423
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160,767
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141,229
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Total current assets
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1,449,096
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1,514,590
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1,684,477
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Property and equipment, net
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433,882
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439,077
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424,905
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Operating lease assets
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1,613,719
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—
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—
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Goodwill
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112,069
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112,069
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119,074
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Other assets
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69,607
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61,667
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84,608
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Total assets
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$
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3,678,373
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$
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2,127,403
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$
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2,313,064
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LIABILITIES AND STOCKHOLDERS’ DEFICIT
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Current liabilities:
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Accounts payable
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$
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406,947
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$
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485,004
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$
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449,687
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Accrued liabilities and other
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353,961
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378,313
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384,170
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Current portion of operating lease liabilities
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300,489
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—
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—
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Current portion of long-term debt
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24,900
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24,900
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24,900
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Other current liabilities
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55,339
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43,907
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127,568
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Total current liabilities
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1,141,636
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932,124
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986,325
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Long-term debt
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2,675,602
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2,681,000
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2,696,408
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Long-term operating lease liabilities
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1,380,175
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—
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—
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Other liabilities
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125,761
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199,705
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173,162
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Total stockholders’ deficit
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(1,644,801)
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(1,685,426)
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(1,542,831)
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Total liabilities and stockholders’ deficit
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$
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3,678,373
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$
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2,127,403
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$
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2,313,064
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Michaels Stores, Inc.
Condensed Consolidated Statements of Comprehensive Income
(in thousands)
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13 Weeks Ended
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May 4,
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May 5,
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2019
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2018
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Net sales
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$
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1,093,720
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$
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1,155,511
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Cost of sales and occupancy expense
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676,080
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698,948
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Gross profit
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417,640
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456,563
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Selling, general and administrative
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320,387
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328,392
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Restructure charges
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3,087
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47,498
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Store pre-opening costs
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1,226
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1,505
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Operating income
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92,940
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79,168
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Interest and other expense, net
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40,469
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32,904
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Income before income taxes
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52,471
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46,264
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Income taxes
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14,624
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19,211
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Net income
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$
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37,847
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$
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27,053
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Other comprehensive income, net of tax:
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Foreign currency translation and other
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(4,826)
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(7,053)
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Comprehensive income
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$
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33,021
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$
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20,000
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Michaels Stores, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
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13 Weeks Ended
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May 4,
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May 5,
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2019
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2018
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Cash flows from operating activities:
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Net cash provided by operating activities
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$
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32,162
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$
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30,605
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Cash flows used in investing activities:
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Additions to property and equipment
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(25,101)
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(27,824)
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Cash flows used in financing activities:
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Net repayments of debt
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(6,225)
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(6,225)
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Net change in cash and equivalents
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836
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(3,444)
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Cash and equivalents at beginning of period
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245,108
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425,129
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Cash and equivalents at end of period
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$
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245,944
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$
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421,685
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