Delaware
|
000-20969
|
20-8159608
|
(State of Incorporation)
|
(Commission
|
(IRS Employer
|
File Number)
|
Identification No.)
|
Exhibit No.
|
Description
|
23.1
|
Consent of Mayer Hoffman McCann P.C.
|
99.1
|
Audited financial statements of City Gear, LLC as of and for the fiscal year ended February 4, 2018
|
99.2
|
Unaudited condensed financial statements of City Gear, LLC as of and for the thirty-nine weeks ended November 4, 2018 and October 29,
2017
|
99.3
|
Unaudited pro forma condensed combined financial information of Hibbett Sports, Inc. and City Gear, LLC as of and for the thirty-nine
weeks ended November 3, 2018 and for the fiscal year ended February 3, 2018
|
HIBBETT SPORTS, INC.
|
||
By:
|
/s/ Scott J. Bowman
|
|
Scott J. Bowman
|
||
January 16, 2019
|
Senior Vice President and Chief Financial Officer
|
Exhibit No.
|
Description
|
23.1
|
|
99.1
|
|
99.2
|
|
99.3
|
Page
|
|
2-3
|
|
4
|
|
5
|
|
6
|
|
7
|
|
8-16
|
Assets
|
||||
Current assets
|
||||
Cash
|
$
|
4,433
|
||
Accounts receivable
|
1,490
|
|||
Inventories, net
|
52,936
|
|||
Prepaid expenses
|
1,852
|
|||
Total current assets
|
60,711
|
|||
Property and equipment, net
|
10,274
|
|||
Other assets
|
||||
Prepaid expenses, long-term
|
516
|
|||
Goodwill
|
31,080
|
|||
Deposits
|
625
|
|||
Other assets
|
349
|
|||
Total other assets
|
32,570
|
|||
$
|
103,555
|
|||
Liabilities and Members' Equity
|
||||
Current liabilities
|
||||
Line of credit
|
$
|
17,262
|
||
Current maturities of long-term debt
|
3,370
|
|||
Accounts payable
|
27,063
|
|||
Current maturities of capital leases
|
68
|
|||
Accrued expenses
|
777
|
|||
Accrued compensation
|
1,041
|
|||
Sales tax payable
|
998
|
|||
Total current liabilities
|
50,579
|
|||
Long-term liabilities
|
||||
Capital leases, less current portion
|
77
|
|||
Long-term debt, net
|
33,245
|
|||
Total long-term liabilities
|
33,322
|
|||
Total liabilities
|
83,901
|
|||
Redeemable preferred members' interests
|
16,270
|
|||
Members' equity
|
3,384
|
|||
$
|
103,555
|
Net sales
|
$
|
190,483
|
||
Cost of goods sold
|
120,617
|
|||
Gross profit
|
69,866
|
|||
Operating expenses less depreciation and amortization
|
55,312
|
|||
Operating income before depreciation and amortization
|
14,554
|
|||
Depreciation and amortization
|
5,198
|
|||
Operating income
|
9,356
|
|||
Other expenses
|
||||
Interest expense
|
5,599
|
|||
Loss on disposal of property and equipment
|
566
|
|||
Other expenses
|
140
|
|||
Total other expenses
|
6,305
|
|||
Net income
|
$
|
3,051
|
Members' equity as of January 29, 2017
|
$
|
2,066
|
||
Distributions to members
|
(371
|
)
|
||
Net income attributable to members' equity
|
1,689
|
|||
Members' equity as of February 4, 2018
|
$
|
3,384
|
Cash flows from operating activities:
|
||||
Net income
|
$
|
3,051
|
||
Adjustments to reconcile net income to net
|
||||
cash provided by operating activities
|
||||
Depreciation and amortization
|
5,198
|
|||
Amortization of debt issuance cost
|
140
|
|||
Loss on the disposal of property and equipment
|
566
|
|||
Original issue discount amortization
|
103
|
|||
Changes in operating assets and liabilities
|
||||
Accounts receivable
|
(20
|
)
|
||
Inventories
|
(1,361
|
)
|
||
Deposits
|
(484
|
)
|
||
Prepaid expenses
|
(420
|
)
|
||
Other assets
|
19
|
|||
Accounts payable
|
3,135
|
|||
Accrued expenses
|
(125
|
)
|
||
Accrued compensation
|
(82
|
)
|
||
Sales tax payable
|
235
|
|||
Net cash provided by operating activities
|
9,955
|
|||
Cash flows from investing activities:
|
||||
Purchases of property and equipment
|
(3,997
|
)
|
||
Proceeds from the sale of property and equipment
|
13
|
|||
Net cash used in investing activities
|
(3,984
|
)
|
||
Cash flows from financing activities:
|
||||
Net borrowings on line of credit
|
2,682
|
|||
Payments on long-term debt
|
(3,370
|
)
|
||
Principal payments on capital leases
|
(61
|
)
|
||
Distributions to preferred member interests
|
(1,362
|
)
|
||
Distributions to members
|
(371
|
)
|
||
Net cash used in financing activities
|
(2,482
|
)
|
||
Net increase in cash
|
3,489
|
|||
Cash at beginning of year
|
944
|
|||
Cash at end of year
|
$
|
4,433
|
||
Supplemental cash flow information:
|
||||
Interest paid
|
$
|
5,220
|
Leasehold improvements
|
$
|
10,901
|
||
Office furniture and equipment
|
4,728
|
|||
Signs
|
1,652
|
|||
Computer and equipment
|
4,366
|
|||
Software
|
4,635
|
|||
Automobiles
|
442
|
|||
Construction
|
979
|
|||
27,703
|
||||
Less accumulated depreciation and amortization
|
17,429
|
|||
Net property and equipment
|
$
|
10,274
|
Notes payable to financial institutions
|
$
|
6,035
|
||
Subordinated and other notes payable
|
31,000
|
|||
Total long-term debt
|
37,035
|
|||
Less current maturities
|
3,370
|
|||
Less unamortized debt issuance costs
|
48
|
|||
Less unamortized original issue discount
|
372
|
|||
Net long-term debt
|
$
|
33,245
|
Fiscal Year
|
||||
2019
|
$
|
3,370
|
||
2020
|
33,665
|
|||
Less debt issuance costs
|
420
|
|
||
$
|
36,615
|
Equipment
|
$
|
309
|
||
Less accumulated depreciation
|
164
|
|||
$
|
145
|
Fiscal Year
|
||||
2019
|
$
|
68
|
||
2020
|
94
|
|||
2021
|
1
|
|||
Total minimum lease payments
|
163
|
|||
Less: amount representing interest
|
18
|
|||
Present value of minimum lease payments
|
$
|
145
|
Fiscal Year
|
||||
2019
|
$
|
11,412
|
||
2020
|
10,499
|
|||
2021
|
9,227
|
|||
2022
|
7,663
|
|||
2023
|
5,557
|
|||
Thereafter
|
7,738
|
|||
$
|
52,096
|
Logistic services
|
$
|
7,300
|
||
Merchandise supplier (Inventory purchased)
|
4,953
|
|||
Advertising services
|
1,335
|
|||
Office leasing
|
265
|
|||
$
|
13,853
|
Assets
|
||||
Current assets
|
||||
Cash
|
$
|
1,687
|
||
Inventories, net
|
41,833
|
|||
Other current assets
|
3,660
|
|||
Total current assets
|
47,180
|
|||
Property and equipment, net
|
9,662
|
|||
Other assets
|
||||
Goodwill
|
31,080
|
|||
Other assets, net
|
1,262
|
|||
Total other assets
|
32,342
|
|||
Total Assets
|
$
|
89,184
|
||
Liabilities and Members' Equity
|
||||
Current liabilities
|
||||
Line of credit and current maturities of long-term debt
|
$
|
22,001
|
||
Accounts payable
|
23,614
|
|||
Current maturities of capital leases
|
178
|
|||
Other current liabilities
|
2,127
|
|||
Total current liabilities
|
47,920
|
|||
Long-term liabilities
|
||||
Capital leases, less current portion
|
44
|
|||
Long-term debt, net
|
30,842
|
|||
Total long-term liabilities
|
30,886
|
|||
Total liabilities
|
78,806
|
|||
Members' equity and redeemable preferred members' interests
|
10,378
|
|||
Total Liabilities and Members' Equity
|
$
|
89,184
|
Nov 4, 2018
|
Oct 29, 2017
|
|||||||
Net sales
|
$
|
143,946
|
$
|
140,918
|
||||
Cost of goods sold
|
98,314
|
89,942
|
||||||
Gross profit
|
45,632
|
50,976
|
||||||
Operating expenses less depreciation and amortization
|
43,284
|
40,484
|
||||||
Operating income before depreciation and amortization
|
2,348
|
10,492
|
||||||
Depreciation and amortization
|
3,892
|
3,584
|
||||||
Operating (loss) income
|
(1,544
|
)
|
6,908
|
|||||
Interest expense
|
4,544
|
4,100
|
||||||
Net (loss) income
|
$
|
(6,088
|
)
|
$
|
2,808
|
Nov 4, 2018
|
Oct 29, 2017
|
|||||||
Cash flows from operating activities:
|
||||||||
Net (loss) income
|
$
|
(6,088
|
)
|
$
|
2,808
|
|||
Adjustments to reconcile net income to net
|
||||||||
cash provided by operating activities
|
||||||||
Depreciation and amortization
|
3,892
|
3,584
|
||||||
Loss on the disposal of property and equipment
|
120
|
126
|
||||||
Changes in operating assets and liabilities
|
||||||||
Accounts receivable
|
9
|
(831
|
)
|
|||||
Inventories
|
11,103
|
3,927
|
||||||
Accounts payable
|
(4,489
|
)
|
(695
|
)
|
||||
Other assets and liabilities, net
|
192
|
(950
|
)
|
|||||
Net cash provided by operating activities
|
4,739
|
7,969
|
||||||
Cash flows from investing activities:
|
||||||||
Purchases of property and equipment
|
(3,413
|
)
|
(3,217
|
)
|
||||
Proceeds from the sale of property and equipment
|
12
|
5
|
||||||
Net cash used in investing activities
|
(3,401
|
)
|
(3,212
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net borrowings on line of credit
|
1,369
|
234
|
||||||
Payments on long-term debt
|
(2,418
|
)
|
(2,405
|
)
|
||||
Principal payments on capital leases, net
|
76
|
(45
|
)
|
|||||
Distributions to members and preferred member interests
|
(3,111
|
)
|
(1,308
|
)
|
||||
Net cash used in financing activities
|
(4,084
|
)
|
(3,524
|
)
|
||||
Net (decrease) increase in cash
|
(2,746
|
)
|
1,233
|
|||||
Cash at beginning of year
|
4,433
|
944
|
||||||
Cash at end of year
|
$
|
1,687
|
$
|
2,177
|
Leasehold improvements
|
$
|
12,085
|
||
Office furniture and equipment
|
5,477
|
|||
Signs
|
1,746
|
|||
Computer and equipment
|
4,580
|
|||
Software
|
4,961
|
|||
Automobiles
|
507
|
|||
Construction
|
590
|
|||
29,946
|
||||
Less accumulated depreciation and amortization
|
20,284
|
|
||
Net property and equipment
|
$
|
9,662
|
Notes payable to financial institutions
|
$
|
3,508
|
||
Subordinated and other notes payable
|
31,000
|
|||
Total long-term debt
|
34,508
|
|||
Less current maturities
|
3,370
|
|||
Less unamortized original issue discount
|
295
|
|||
Net long-term debt
|
$
|
30,842
|
Equipment
|
$
|
309
|
||
Automobiles
|
126
|
|||
Less accumulated depreciation
|
195
|
|
||
$
|
240
|
Nov 4, 2018
|
Oct 29, 2017
|
|||||||
Logistic services
|
$
|
5,680
|
$
|
5,264
|
||||
Merchandise supplier (inventory purchased)
|
2,639
|
3,519
|
||||||
Advertising services
|
505
|
911
|
||||||
Office leasing
|
382
|
199
|
||||||
Property management services
|
2,317
|
--
|
||||||
$
|
11,523
|
$
|
9,893
|
Hibbett | City Gear |
Pro Forma
|
Pro Forma
|
||||||||||||||
(historical)
|
(historical)
|
Adjustments
|
Note 4
|
Combined
|
|||||||||||||
Assets
|
|||||||||||||||||
Current Assets:
|
|||||||||||||||||
Cash and cash equivalents
|
$
|
121,177
|
$
|
1,687
|
$
|
(62,666
|
)
|
(a)
|
$
|
60,198
|
|||||||
Inventories, net
|
256,854
|
41,833
|
2,867
|
(b)
|
301,554
|
||||||||||||
Short-term below-market lease intangible
|
--
|
--
|
884
|
(f)
|
884
|
||||||||||||
Other current assets
|
23,395
|
3,660
|
(1,044
|
)
|
(c)
|
26,011
|
|||||||||||
Total current assets
|
401,426
|
47,180
|
(59,959
|
)
|
388,647
|
||||||||||||
Property and equipment, net
|
103,899
|
9,662
|
6,510
|
(d)
|
120,071
|
||||||||||||
Goodwill
|
--
|
31,080
|
(10,970
|
)
|
(e)
|
20,110
|
|||||||||||
Intangible assets
|
--
|
--
|
35,229
|
(f)
|
35,229
|
||||||||||||
Other assets, net
|
4,690
|
1,262
|
876
|
(g)
|
6,828
|
||||||||||||
Total Assets
|
$
|
510,015
|
$
|
89,184
|
$
|
(28,314
|
)
|
$
|
570,885
|
||||||||
Liabilities and
Stockholders' Investment
|
|||||||||||||||||
Accounts payable
|
$
|
109,445
|
$
|
23,614
|
$
|
(1,620
|
)
|
(h)
|
$
|
131,439
|
|||||||
Deferred rent
|
5,855
|
--
|
--
|
5,855
|
|||||||||||||
Credit facilities and current maturities of
|
|||||||||||||||||
long-term debt
|
25,000
|
22,001
|
2,999
|
(i)
|
50,000
|
||||||||||||
Capital lease obligations
|
644
|
178
|
--
|
822
|
|||||||||||||
Short-term above-market lease intangible
|
--
|
--
|
284
|
(f)
|
284
|
||||||||||||
Other current liabilities
|
15,403
|
2,127
|
366 |
(j)
|
17,896
|
||||||||||||
Total current liabilities
|
156,347
|
47,920
|
2,029
|
206,296
|
|||||||||||||
Deferred rent
|
19,330
|
--
|
--
|
19,330
|
|||||||||||||
Long-term debt, net
|
--
|
30,842
|
(30,842
|
)
|
(i)
|
--
|
|||||||||||
Long-term above-market lease intangible
|
--
|
--
|
909
|
(f)
|
909
|
||||||||||||
Other liabilities
|
5,857
|
44
|
10,620
|
(k)
|
16,521
|
||||||||||||
Total liabilities
|
181,534
|
78,806
|
(17,284
|
)
|
243,056
|
||||||||||||
Stockholders' Investment:
|
|||||||||||||||||
Preferred stock
|
--
|
--
|
--
|
--
|
|||||||||||||
Common stock
|
390
|
--
|
--
|
390
|
|||||||||||||
Paid-in-capital
|
184,753
|
--
|
--
|
184,753
|
|||||||||||||
Retained earnings
|
753,042
|
--
|
(652
|
)
|
(l)
|
752,390
|
|||||||||||
Members' equity and redeemable preferred
|
|||||||||||||||||
members' interests
|
--
|
10,378
|
(10,378
|
)
|
(l)
|
--
|
|||||||||||
Treasury stock
|
(609,704
|
)
|
--
|
--
|
(609,704
|
)
|
|||||||||||
Total stockholders' investment
|
328,481
|
10,378
|
(11,030
|
)
|
327,829
|
||||||||||||
Total Liabilities and Stockholders' Investment
|
$
|
510,015
|
$
|
89,184
|
$
|
(28,314
|
)
|
$
|
570,885
|
Hibbett | City Gear |
Pro Forma
|
Pro Forma
|
||||||||||||||
(historical)
|
(historical)
|
Adjustments
|
Note 4
|
Combined
|
|||||||||||||
Net sales
|
$
|
702,718
|
$
|
143,946
|
$
|
--
|
$
|
846,664
|
|||||||||
Cost of goods sold
|
469,082
|
98,314
|
12,959
|
(f) (m)
|
580,355
|
||||||||||||
Gross margin
|
233,636
|
45,632
|
(12,959
|
)
|
266,309
|
||||||||||||
Store operating, selling and administrative
|
|||||||||||||||||
expenses
|
186,211
|
43,284
|
(14,129
|
)
|
(n)
|
215,366
|
|||||||||||
Depreciation and amortization
|
18,847
|
3,892
|
(2,899
|
)
|
(d)
|
19,840
|
|||||||||||
Operating income (loss)
|
28,578
|
(1,544
|
)
|
4,069
|
31,103
|
||||||||||||
Interest income
|
563
|
--
|
--
|
563
|
|||||||||||||
Interest expense
|
(176
|
)
|
(4,544
|
)
|
2,931
|
(i)
|
(1,789
|
)
|
|||||||||
Interest expense, net
|
387
|
(4,544
|
)
|
2,931
|
(1,226
|
)
|
|||||||||||
Income (loss) before provision for income taxes
|
28,965
|
(6,088
|
)
|
7,000
|
29,877
|
||||||||||||
Provision for income taxes
|
7,179
|
-
|
217
|
(o)
|
7,396
|
||||||||||||
Net income (loss)
|
$
|
21,786
|
$
|
(6,088
|
)
|
$
|
6,783
|
$
|
22,481
|
||||||||
Basic earnings per share
|
$
|
1.16
|
$
|
--
|
$
|
--
|
$
|
1.20
|
|||||||||
Diluted earnings per share
|
$
|
1.15
|
$
|
--
|
$
|
--
|
$
|
1.19
|
|||||||||
Weighted average shares outstanding:
|
|||||||||||||||||
Basic
|
18,763
|
--
|
--
|
18,763
|
|||||||||||||
Diluted
|
18,944
|
--
|
--
|
18,944
|
Hibbett | City Gear |
Pro Forma
|
Pro Forma
|
||||||||||||||
(historical)
|
(historical)
|
Adjustments
|
Note 4
|
Combined
|
|||||||||||||
Net sales
|
$
|
968,219
|
$
|
190,483
|
$
|
-
|
$
|
1,158,702
|
|||||||||
Cost of goods sold
|
655,502
|
120,617
|
15,460
|
(f) (m)
|
791,579
|
||||||||||||
Gross margin
|
312,717
|
69,866
|
(15,460
|
)
|
367,123
|
||||||||||||
Store operating, selling and administrative
|
|||||||||||||||||
expenses
|
231,832
|
56,018
|
(14,860
|
)
|
(n)
|
272,990
|
|||||||||||
Depreciation and amortization
|
24,207
|
5,198
|
(3,874
|
)
|
(d)
|
25,531
|
|||||||||||
Operating income
|
56,678
|
8,650
|
3,274
|
68,602
|
|||||||||||||
Interest income
|
39
|
--
|
39
|
||||||||||||||
Interest expense
|
(270
|
)
|
(5,599
|
)
|
3,830
|
(i)
|
(2,039
|
)
|
|||||||||
Interest expense, net
|
(231
|
)
|
(5,599
|
)
|
3,830
|
(2,000
|
)
|
||||||||||
Income before provision for income taxes
|
56,447
|
3,051
|
7,104
|
66,602
|
|||||||||||||
Provision for income taxes
|
21,417
|
--
|
3,226
|
(o)
|
24,643
|
||||||||||||
Net income
|
$
|
35,030
|
$
|
3,051
|
$
|
3,878
|
$
|
41,959
|
|||||||||
Basic earnings per share
|
$
|
1.72
|
$
|
--
|
$
|
--
|
$
|
2.06
|
|||||||||
Diluted earnings per share
|
$
|
1.71
|
$
|
--
|
$
|
--
|
$
|
2.05
|
|||||||||
Weighted average shares outstanding:
|
|||||||||||||||||
Basic
|
20,347
|
--
|
--
|
20,347
|
|||||||||||||
Diluted
|
20,450
|
--
|
--
|
20,450
|
ASSETS
|
||||
Current assets:
|
||||
Cash and cash equivalents
|
$
|
2,732
|
||
Receivables
|
436
|
|||
Inventories
|
44,700
|
|||
Prepaid expenses and other current assets
|
3,064
|
|||
Total current assets
|
50,932
|
|||
Goodwill
|
20,110
|
|||
Property and equipment
|
16,172
|
|||
Intangible assets
|
35,229
|
|||
Deposits and other assets
|
565
|
|||
Deferred tax asset
|
1,573
|
|||
Total assets
|
$
|
124,581
|
||
LIABILITIES:
|
||||
Current liabilities:
|
||||
Accounts payable
|
$
|
23,615
|
||
Above-market lease intangible
|
284
|
|||
Other current liabilities
|
2,272
|
|||
Total current liabilities
|
26,171
|
|||
Other liabilities
|
2,373
|
|||
Total liabilities
|
28,544
|
|||
Net assets
|
$
|
96,037
|
(a)
|
Cash and cash equivalents
|
Additional borrowings under Hibbett's credit facility to fund the Acquisition
|
$
|
25,000
|
||
Net working capital adjustment
|
(1,872
|
)
|
||
Cash paid at closing to acquire City Gear (1)
|
(86,838
|
)
|
||
Reclassification of debit/credit card clearing accounts (2)
|
1,044
|
|||
Pro forma adjustment to cash and cash equivalents
|
$
|
(62,666
|
)
|
(1)
|
Cash paid at closing consisted of:
|
Debt and preferred equity payments
|
$
|
68,598
|
||
Cash to warrant and membership interest holders
|
13,483
|
|||
Transaction expense payments paid on behalf of membership interest holders
|
2,988
|
|||
Other
|
1,769
|
|||
$
|
86,838
|
(2)
|
Reclassification made to conform City Gear presentation to Hibbett presentation.
|
(b)
|
Inventories, net
|
(c)
|
Other current assets
|
(d)
|
Property and equipment, net
|
39-Weeks Ended
|
Fiscal Year Ended
|
|||||||
Nov 3, 2018
|
Feb 3, 2018
|
|||||||
Estimated depreciation expense
|
$
|
993
|
$
|
1,324
|
||||
Historical City Gear depreciation and amortization expense
|
(3,892
|
)
|
(5,198
|
)
|
||||
Pro forma adjustment to depreciation and amortization expense
|
$
|
(2,899
|
)
|
$
|
(3,874
|
)
|
(e)
|
Goodwill
|
Excess of purchase price over estimated fair value of City Gear's net assets (preliminary)
|
$
|
20,110
|
||
Elimination of historical City Gear goodwill
|
(31,080
|
)
|
||
Pro forma adjustment to goodwill
|
$
|
(10,970
|
)
|
(f)
|
Intangible assets and liabilities
|
Pro Forma Amortization
|
||||||||||||||||
Estimated
|
39 Weeks Ended
|
Fiscal Year Ended
|
||||||||||||||
Amount
|
Useful Lives
|
Nov 3, 2018
|
Feb 3, 2018
|
|||||||||||||
(thousands)
|
(years)
|
(thousands)
|
||||||||||||||
Assets acquired:
|
||||||||||||||||
Tradenames/trademarks
|
$
|
32,400
|
N/A
|
$
|
--
|
$
|
--
|
|||||||||
Below-market lease intangible
|
3,713
|
4.2
|
663
|
884
|
||||||||||||
$
|
36,113
|
|||||||||||||||
Liabilities assumed:
|
||||||||||||||||
Above-market lease intangible
|
$
|
(1,193
|
)
|
4.2
|
(213
|
)
|
(284
|
)
|
||||||||
Total
|
$
|
450
|
$
|
600
|
Amount
|
||||
Short-term below-market lease intangible
|
$
|
884
|
||
Long-term below-market lease intangible
|
2,829
|
|||
Total lease intangible assets acquired
|
$
|
3,713
|
||
Short-term above-market lease intangible
|
$
|
284
|
||
Long-term above-market lease intangible
|
909
|
|||
Total lease intangible liabilities assumed
|
$
|
1,193
|
(g)
|
Other assets, net
|
Deferred tax asset
|
$
|
1,573
|
||
Elimination of landlord buildout concessions
|
(546
|
)
|
||
Elimination of City Gear historical debt issue costs
|
(151
|
)
|
||
Pro forma adjustment to other assets, net
|
$
|
876
|
(h)
|
Accounts payable
|
(i) |
Credit facilities, current maturities of long-term debt and long-term debt
|
Increase in credit facility to acquire City Gear
|
$
|
25,000
|
||
Elimination of historical City Gear credit facility and current maturities of long-term debt
|
(22,001
|
)
|
||
Pro forma adjustment to credit facilities and current maturities of long-term debt
|
$
|
2,999
|
||
Elimination of historical City Gear long-term debt
|
$
|
(30,842
|
)
|
Pro Forma Interest Expense
|
||||||||
39 Weeks Ended
|
Fiscal Year Ended
|
|||||||
Nov 3, 2018
|
Feb 3, 2018
|
|||||||
Estimated interest expense on borrowing under the credit facilities
|
$
|
(1,613
|
)
|
$
|
(1,769
|
)
|
||
Elimination of historical City Gear interest expense
|
4,544
|
5,599
|
||||||
Pro forma adjustment to interest expense
|
$
|
2,931
|
$
|
3,830
|
(j)
|
Other current liabilities
|
Short-term capital lease
|
$
|
178
|
||
Income tax payable
|
220
|
|||
Elimination of City Gear historical deferred rent balance
|
(32
|
)
|
||
Pro forma adjustment to other current liabilities
|
$
|
366 |
(k)
|
Other liabilities
|
Contingent earnout payments (preliminary)
|
$
|
9,200
|
||
Deferred tax liability
|
968
|
|||
Other
|
452
|
|||
$
|
10,620
|
(l)
|
Retained earnings and members’ equity and redeemable preferred members’ interests
|
(m)
|
Cost of goods sold
|
39 Weeks Ended
|
Fiscal Year Ended
|
|||||||
Nov 3, 2018
|
Feb 3, 2018
|
|||||||
Reclassification of store occupancy expense
|
$
|
14,553
|
$
|
17,517
|
||||
Reclassification of inbound freight
|
(2,044
|
)
|
(2,657
|
)
|
||||
Pro forma amortization - intangible assets acquired and liabilities assumed
|
450
|
600
|
||||||
Pro forma adjustment to cost of goods sold
|
$
|
12,959
|
$
|
15,460
|
(n)
|
Store operating, selling and administrative expenses in City Gear’s statements of operations.
|
39 Weeks Ended
|
Fiscal Year Ended
|
|||||||
Nov 3, 2018
|
Feb 3, 2018
|
|||||||
Reclassification of store occupancy expense
|
$
|
(14,553
|
)
|
$
|
(17,517
|
)
|
||
Reclassification of inbound freight
|
2,044
|
2,657
|
||||||
Elimination of transaction expenses
|
(1,620
|
)
|
--
|
|||||
Pro forma adjustment to store operating, selling and administrative expenses
|
$
|
(14,129
|
)
|
$
|
(14,860
|
)
|
(o)
|
Income tax provision
|
@0<4<8% '/X4