UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): September 4, 2012
FRANCESCA’S HOLDINGS CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
Delaware | ||||
001-35239 | (State or Other Jurisdiction of Incorporation) | 20-8874704 | ||
(Commission File Number) | (I.R.S. Employer Identification No.) | |||
3480 West 12th Street Houston, Texas |
77008 | |||
(Address of Principal Executive Offices) | (Zip Code) |
(713) 864-1358
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
£ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
£ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
£ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
£ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On September 4, 2012, Francesca’s Holdings Corporation (the “Company”) issued a press release announcing its consolidated financial results for the thirteen weeks and twenty-six weeks ended July 28, 2012. A copy of the press release is furnished as Exhibit 99.1 to this report. This information shall not be deemed “filed” for purposes of Section 18 of the Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
(b) On August 29, 2012, Mr. John De Meritt provided notice of his intention to retire from his position as Chief Executive Officer of the Company and as a member of the Board of Directors of the Company (the “Board”), effective as of December 31, 2012.
As discussed in (c) below, on August 29, 2012, the Board appointed Mr. Davis to succeed Mr. De Merritt as the Chief Executive Officer of the Company, effective as of January 1, 2013. In connection with this appointment, Mr. Davis will no longer be President of the Company, effective as of December 31, 2012. As discussed in (c) below, Ms. Theresa Backes will succeed Mr. Davis as the Company’s President, effective as of January 1, 2013.
(c) On August 29, 2012, the Board appointed Mr. Neill Davis to succeed Mr. De Meritt as Chief Executive Officer, effective as of January 1, 2013. Additionally, the Board appointed Ms. Backes to succeed Mr. Davis as the Company’s President, effective as of January 1, 2013.
Mr. Davis, age 56, has served as a member of the Company’s Board of Directors since May 2007 and as the Company’s President since August 2012. Prior to joining the Company, Mr. Davis held various management positions at Men’s Wearhouse beginning in 1997, including Executive Vice President, Chief Financial Officer, Principal Financial Officer and Treasurer. Mr. Davis holds a Bachelor of Business Administration degree from Southern Methodist University and a Master of Business Administration degree from the University of Arkansas.
Ms. Backes, age 55, has served as our Chief Operating Officer since 2007. Prior to joining the Company, from 2004 to 2007, Ms. Backes was the Vice President, Store Operations of David’s Bridal. From 2002 to 2004, Ms. Backes was the Senior Director, Store Operations, at Banana Republic. Ms. Backes graduated from Arizona State University in 1981 and attended the Executive Education Program in Retail Finance at the University of Michigan and Leadership Studies program at the Aspen Institute.
No new compensatory or severance arrangements were entered into in connection with Mr. Davis’ appointment as Chief Executive Officer or Ms. Backes’ appointment as President. A description of Mr. Davis’ current compensation arrangement with the Company is contained in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the “Commission”) on July 2, 2012 and is incorporated herein by reference. A description of Ms. Backes’ current compensation arrangement with the Company is contained in the Company’s Proxy Statement for its 2012 Annual Meeting of Stockholders filed with the Commission on May 25, 2012 and is incorporated herein by reference.
There was no arrangement or understanding between Mr. Davis or Ms. Backes and any other person pursuant to which Mr. Davis was appointed Chief Executive Officer or Ms. Backes was appointed President. There are no family relationships between Mr. Davis or Ms. Backes and any director or executive officer of the Company, and Mr. Davis and Ms. Backes each have no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.
(e) It has not yet been determined if any severance arrangement will be entered into in connection with Mr. De Meritt’s retirement.
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Item 7.01. Regulation FD Disclosure
The press release issued on September 4, 2012 that is discussed in Item 2.02 above also announced the management changes set forth in Item 5.02 of this Form 8-K. A copy of such press release is furnished as Exhibit 99.1 to this report. This information shall not be deemed “filed” for purposes of Section 18 of the Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements and Exhibits.
99.1 | Press Release issued by Francesca’s Holdings Corporation on September 4, 2012. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
FRANCESCA’S HOLDINGS CORPORATION | ||||
Date: | September 4, 2012 | By: | /s/ Kal Malik | |
Kal Malik | ||||
Executive Vice President and General Counsel |
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EXHIBIT INDEX
Exhibit No. |
Description | |
99.1 | Press Release issued by Francesca’s Holdings Corporation on September 4, 2012. |
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Francesca’s Holdings Corporation
Reports
Fiscal 2012 Second Quarter Results, Increased Guidance for the Full Year 2012 and Senior Leadership Transition Plan
· | Total sales for the second quarter was up 49.1% driven by Comparable boutique sales increase of 20.7% | |
· | Diluted EPS for the second quarter increased to $0.28, an 87% increase over the prior year adjusted diluted EPS of $0.15 | |
· | Senior leadership transition to take place effective January 2013 |
HOUSTON, TEXAS — September 4, 2012 — Francesca’s Holdings Corporation (NASDAQ: FRAN) today announced financial results for the fiscal second quarter ended July 28, 2012, as well as a transition plan for the Company’s senior leadership.
Second Quarter Summary:
The Company’s second quarter results exceeded previously provided guidance on the strength of a 20.7% increase in comparable boutique sales; its thirteenth consecutive quarterly comparable boutique sales increase. Strong customer responses across all merchandise categories, most notable in jewelry, contributed to better than planned sales and product margin.
• | Net sales increased $25.1 million, or 49.1%, compared with the same period in fiscal 2011. Comparable boutique sales increased 20.7% following an increase of 5.4% in the same prior year period. |
• | Gross profit as a percentage of net sales increased 205 basis points compared with last year’s second quarter. The increase is primarily the result of leveraging occupancy costs. |
• | Selling, general and administrative expenses as a percentage of net sales decreased 69 basis points compared with last year’s second quarter. |
• | Income from operations increased 65.7% to $20.9 million compared to $12.6 million in the same prior year period. As a percentage of net sales, income from operations increased 274 basis points to 27.35% driven by gross margin expansion as well as leverage in selling, general and administrative expenses. |
• | Net earnings for the second quarter was $12.7 million or $0.28 per diluted share compared to net earnings for the second quarter of 2011 of $5.5 million, or $0.13 per diluted share. Adjusted net earnings for the second quarter of fiscal 2011 was $6.5 million, or $0.15 per diluted share excluding a $1.6 million pretax ($1.0 million after tax) or $0.02 per diluted share charge for the early extinguishment of debt under the Company’s prior secured credit facility. |
• | At the end of the second fiscal quarter of 2012, the Company operated 357 boutiques in 44 states compared to 279 boutiques in 41 states at the end of the same prior year period and 283 boutiques at the end of fiscal year 2011. |
• | Inventory per boutique was up 11.5% while overall sales productivity per boutique increased by 16.5% in the second quarter. |
• | Debt decreased $7.0 million in the second quarter to $5.0 million as the Company used a portion of its cash flow to reduce its borrowing under its revolving credit facility. Subsequent to the end of the second quarter, borrowing was reduced an additional $3.0 million to $2.0 million. |
Third Quarter and Fiscal 2012 Outlook
For the third quarter ending October 27, 2012, net sales are expected to be between $70.5 million and $71.5 million assuming a low double digit comparable boutique sales increase and the opening of two additional new boutiques. Earnings per diluted share are expected to be in the range of $0.20 to $0.21 compared to earnings per diluted share in the prior year quarter of $0.11. Excluding $0.7 million pretax ($0.4 million, net of tax) or $0.01 per diluted share for relocation costs of the Company’s headquarters and distribution facilities, adjusted earnings per diluted share are expected to be in the range of $0.21 to $0.22 an increase of 50% to 57% over the same prior year period adjusted earnings per diluted share of $0.14 excluding a $2.3 million pretax ($1.4 million, net of tax) or $0.03 per diluted share charge for the acceleration of stock options.
For the full fiscal year ending February 2, 2013, net sales are expected to be in the range of $290.0 million to $292.0 million assuming a low double digit comparable boutique sales increase and the opening of 76 new boutiques and an outlet boutique. Earnings per diluted share are expected to be in the range of $0.94 to $0.96 compared to earnings per diluted share in the prior year of $0.52. Excluding $0.7 million pretax ($0.4 million, net of tax) or $0.01 per diluted share for relocation costs of the Company’s headquarters and distribution facilities and $0.7 million pretax ($0.4 million, net of tax) or $0.01 per diluted share for a secondary equity offering and option acceleration costs, adjusted earnings per diluted share are expected to be in the range of $0.96 to $0.98 an increase of 66% to 69% over the same prior year period adjusted earnings per diluted share of $0.58 excluding a $2.3 million pretax or $0.03 per diluted share ($1.4 million, net of tax) charge for the acceleration of stock options, a $1.6 million ($1.0 million, net of tax) or $0.02 per diluted share for the Company’s initial public offering, and a $0.6 million ($0.4 million, net of tax) or $0.01 per diluted share for secondary equity offering costs. The Company uses the NRF calendar; therefore fiscal year 2012 will be a 53-week year. We estimate that the additional week will contribute approximately $3.0 million in net sales and $0.02 per diluted share in incremental earnings.
Senior Leadership Transition Plan
The Company also announced today a senior leadership transition plan. Effective December 31, 2012, Chief Executive Officer John De Meritt has decided to retire from the Company and the Board to pursue personal endeavors. The Board has appointed Neill P. Davis, current President and director since 2007, to serve as the Chief Executive Officer effective January 1, 2013. Additionally, the Board has promoted Theresa Backes, current Chief Operating Officer, to serve as the President effective January 1, 2013.
Greg Brenneman, Non-Executive Chairman of the Board, said “John has done an amazing job building Francesca’s into one of the country’s fastest growing and profitable specialty retailers. While we will miss John’s many talents, we understand and support his decision to begin a new chapter in his life. We are fortunate that John has assembled an experienced team of high performing executives who have helped John drive the Company’s outstanding performance and we are confident that the business model and infrastructure established will allow that success to continue.”
Mr. Brenneman concluded, “Neill is a highly qualified and seasoned retail executive. His experience in helping Men’s Wearhouse realize double-digit compound annual growth rates in sales and profitability during his 15-year tenure will be invaluable in the coming years. The board looks forward to working closely with Neill, Theresa and the rest of Francesca’s executive team in the years to come.”
Mr. De Meritt said, “I have been involved with Francesca’s for over 10 years and overseeing the daily operations for the last six years. I have decided that it is an ideal time for me to pursue my many other interests and to allow those who have worked closely with me during that time to take over leadership of the Company. I have enjoyed recruiting and fostering this talented senior executive team and together with them, building the foundation to continue to deliver outstanding results. With Francesca’s performing exceptionally well and its strong financial and competitive position, I believe the Company has a very bright future.”
Mr. Davis has been with Francesca’s since 2007, first joining as a member of the Board of Directors. Until his appointment as President, Mr. Davis also served as Chairman of the Audit Committee of the Board. Mr. Davis has extensive leadership experience in the retail industry including 15 years at The Men’s Wearhouse where he served in the senior executive positions of Executive Vice President, Chief Financial Officer, Treasurer and Principal Financial Officer.
Mr. Davis stated, “I am honored and very excited to be taking the reins of an incredible company which John has skillfully and thoughtfully built and set on a strong path for long-term success. As is evident from our guidance for next quarter and full year 2012, we are in a great position to fulfill the Company’s financial goals. We have already secured 62 sites for our planned 75 boutique openings for the next fiscal year. We intend to continue to execute our successful four-pronged strategy of great merchandise, boutique excellence, uncompromised real estate and solid infrastructure.”
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Ms. Backes has been with Francesca’s since 2007 serving as its Chief Operating Officer and Head of Stores. Ms. Backes has over 25 years of retail experience including as Vice President Store Operations at David’s Bridal, Director of Store Operations at Banana Republic, Senior Vice President of Stores at Gymboree and various executive positions at the Target Corporation.
Conference Call Information
A conference call to discuss second quarter results is scheduled for September 4, 2012, at 4:30 p.m. ET. A live web cast of the conference call will be available in the investor relations section of the Company’s website, www.francescas.com. In addition, a replay of the call will be available after the call and remain available until October 4, 2012. To access the telephone replay, listeners should dial (877) 870-5176. The access code for the replay is 9772740. A replay of the web cast will also be available shortly after the call and will remain on the website for ninety days.
SEC Regulation G – Non-GAAP Information
This press release includes non-GAAP adjusted net earnings and adjusted diluted earnings per share, each a non-GAAP financial measure. We have reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures in the text above. We believe that these non-GAAP financial measures not only provide our management with comparable financial data for internal financial analysis but also provide meaningful supplemental information to investors. Specifically, these non-GAAP financial measures allow investors to better understand the performance of our business and facilitate a meaningful evaluation of our quarterly and fiscal year 2012 diluted earnings per share and actual results on a comparable basis with our quarterly and fiscal year 2011 results. These non-GAAP measures should be considered a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
Forward-Looking Statements
Certain statements in this release are "forward-looking statements" made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected. For a discussion of these and other risks and uncertainties that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to "Risk Factors" in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 21, 2012. We undertake no obligation to publicly update or revise any forward-looking statement. Financial schedules are attached to this release.
About Francesca’s Holdings Corporation
Francesca’s Collections is a growing specialty retailer with retail locations designed and merchandised to feel like independently owned, upscale boutiques providing customers a fun and differentiated shopping experience. The merchandise assortment is a diverse and balanced mix of apparel, jewelry, accessories and gifts. Francesca’s Collections appeals to the 18-35 year-old, fashion conscious, female customers, although the Company finds that women of all ages are attracted to the eclectic and sophisticated merchandise selection and boutique setting. Francesca’s Collections’ boutiques carry a broad selection but limited quantities of individual styles and new merchandise is introduced five days a week. For additional information on Francesca’s, please visit www.francescascollections.com
CONTACT:
ICR, Inc.
Jean Fontana : 646-277-1214
jean.fontana@icrinc.com
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Francesca’s Holdings Corporation
Unaudited Consolidated Statements of Operations
(In thousands, except per share data and percentages)
Thirteen Weeks Ended | ||||||||||||||||||||||||||||
July 28, 2012 | July 30, 2011 | Variance | ||||||||||||||||||||||||||
In USD | As a % of Net Sales | In USD | As a % of Net Sales | In USD | % | As a % of Net Sales | ||||||||||||||||||||||
Net sales | $ | 76,365 | 100.00 | % | $ | 51,221 | 100.00 | % | $ | 25,144 | 49.1 | % | 0.00 | % | ||||||||||||||
Cost of goods sold and occupancy costs | 34,549 | 45.24 | % | 24,220 | 47.29 | % | 10,329 | 42.6 | % | (2.05 | %) | |||||||||||||||||
Gross profit | 41,816 | 54.76 | % | 27,001 | 52.71 | % | 14,815 | 54.9 | % | 2.05 | % | |||||||||||||||||
Selling, general and administrative expenses | 20,931 | 27.41 | % | 14,394 | 28.10 | % | 6,537 | 45.4 | % | (0.69 | %) | |||||||||||||||||
Income from operations | 20,885 | 27.35 | % | 12,607 | 24.61 | % | 8,278 | 65.7 | % | 2.74 | % | |||||||||||||||||
Interest expense | (177 | ) | (0.23 | %) | (2,048 | ) | (4.00 | %) | 1,871 | (91.4 | %) | 3.77 | % | |||||||||||||||
Loss on early extinguishment of debt | — | — | (1,591 | ) | (3.11 | %) | 1,591 | (100.0 | %) | 3.11 | % | |||||||||||||||||
Other income | 115 | 0.15 | % | 15 | 0.03 | % | 100 | 666.7 | % | 0.12 | % | |||||||||||||||||
Income before income tax expense | 20,823 | 27.27 | % | 8,983 | 17.54 | % | 11,840 | 131.8 | % | 9.73 | % | |||||||||||||||||
Income tax expense | 8,171 | 10.70 | % | 3,498 | 6.83 | % | 4,673 | 133.6 | % | 3.87 | % | |||||||||||||||||
Net earnings | $ | 12,652 | 16.57 | % | $ | 5,485 | 10.71 | % | $ | 7,167 | 130.7 | % | 5.86 | % | ||||||||||||||
Diluted earnings (loss) per common share | $ | 0.28 | $ | 0.13 | ||||||||||||||||||||||||
Weighted average diluted shares outstanding: | 44,739 | 41,513 | ||||||||||||||||||||||||||
Change in Comparable Boutique Sales | +20.7% | +5.4% |
Twenty Six Weeks Ended | ||||||||||||||||||||||||||||
July 28, 2012 | July 30, 2011 | Variance | ||||||||||||||||||||||||||
In USD | As a % of Net Sales | In USD | As a % of Net Sales | In USD | % | As a % of Net Sales | ||||||||||||||||||||||
Net sales | $ | 137,687 | 100.00 | % | $ | 92,486 | 100.00 | % | $ | 45,201 | 48.9 | % | 0.00 | |||||||||||||||
Cost of goods sold and occupancy costs | 63,328 | 45.99 | % | 43,861 | 47.42 | % | 19,467 | 44.4 | % | (1.43 | %) | |||||||||||||||||
Gross profit | 74,359 | 54.01 | % | 48,625 | 52.58 | % | 25,734 | 52.9 | % | 1.43 | % | |||||||||||||||||
Selling, general and administrative expenses | 38,816 | 28.19 | % | 27,599 | 29.84 | % | 11,217 | 40.6 | % | (1.65 | %) | |||||||||||||||||
Income from operations | 35,543 | 25.81 | % | 21,026 | 22.73 | % | 14,517 | 69.0 | % | 3.08 | % | |||||||||||||||||
Interest expense | (432 | ) | (0.31 | %) | (4,056 | ) | (4.39 | %) | 3,624 | (89.3 | %) | 4.08 | % | |||||||||||||||
Loss on early extinguishment of debt | — | — | (1,591 | ) | (1.72 | %) | 1,591 | (100.0 | %) | 1.72 | % | |||||||||||||||||
Other income | 152 | 0.11 | % | 49 | 0.05 | % | 103 | 210.2 | % | 0.06 | % | |||||||||||||||||
Income before income tax expense | 35,263 | 25.61 | % | 15,428 | 16.68 | % | 19,835 | 128.6 | % | 8.93 | % | |||||||||||||||||
Income tax expense | 13,869 | 10.07 | % | 6,025 | 6.51 | % | 7,844 | 130.2 | % | 3.56 | % | |||||||||||||||||
Net earnings | $ | 21,394 | 15.54 | % | $ | 9,403 | 10.17 | % | $ | 11,991 | 127.5 | % | 5.37 | % | ||||||||||||||
Diluted earnings (loss) per common share | $ | 0.48 | $ | 0.23 | ||||||||||||||||||||||||
Weighted average diluted shares outstanding: | 44,721 | 41,296 | ||||||||||||||||||||||||||
Change in Comparable Boutique Sales | +18.3% | +9.5% |
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Francesca’s Holdings Corporation
Unaudited Consolidated Balance Sheets
(In thousands)
July 28, 2012 | January 28, | July 30, 2011 | ||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 7,312 | $ | 14,046 | $ | 13,412 | ||||||
Accounts receivable | 6,925 | 2,156 | 5,564 | |||||||||
Inventories | 19,720 | 14,688 | 13,809 | |||||||||
Deferred income taxes | 2,556 | 2,352 | 1,722 | |||||||||
Prepaid expenses and other current assets | 4,195 | 2,799 | 2,300 | |||||||||
Total current assets | 40,708 | 36,041 | 36,807 | |||||||||
Property and equipment, net | 43,687 | 33,199 | 30,483 | |||||||||
Deferred income taxes | 2,200 | 952 | — | |||||||||
Other assets, net | 2,156 | 2,120 | 2,431 | |||||||||
TOTAL ASSETS | $ | 88,751 | $ | 72,312 | $ | 69,721 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 11,621 | $ | 8,627 | $ | 8,331 | ||||||
Accrued liabilities | 7,623 | 9,893 | 5,639 | |||||||||
Total current liabilities | 19,244 | 18,520 | 13,970 | |||||||||
Deferred and accrued rents | 21,926 | 14,890 | 14,602 | |||||||||
Deferred income taxes | — | — | 289 | |||||||||
Long-term debt | 5,000 | 22,000 | 41,000 | |||||||||
Total liabilities | 46,170 | 55,410 | 69,861 | |||||||||
Commitments and contingencies | ||||||||||||
Stockholders’ equity (deficit): | ||||||||||||
Common stock - $.01 par value, 80.0 million shares authorized; 43.8 million shares issued and outstanding at July 28, 2012; 43.5 million shares issued and outstanding at January 28, 2012; 43.5 million shares issued and outstanding at July 30, 2011 | 438 | 435 | 435 | |||||||||
Additional paid-in capital | 81,353 | 77,071 | 73,127 | |||||||||
Accumulated deficit | (39,210 | ) | (60,604 | ) | (73,702 | ) | ||||||
Total stockholders’ equity (deficit) | 42,581 | 16,902 | (140 | ) | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | 88,751 | $ | 72,312 | $ | 69,721 |
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Francesca’s Holdings Corporation
Unaudited Consolidated Statements of Cash Flows
(In thousands)
Twenty Six Weeks Ended | ||||||||
July 28, 2012 | July 30, 2011 | |||||||
Cash Flows From Operating Activities: | ||||||||
Net income | $ | 21,394 | $ | 9,403 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation expense | 3,422 | 2,154 | ||||||
Stock-based compensation expense | 1,648 | 987 | ||||||
Excess tax benefit from stock-based compensation | (1,907 | ) | (364 | ) | ||||
Loss on sale of assets | 20 | 7 | ||||||
Amortization of debt issuance costs | 147 | 390 | ||||||
Loss on early extinguishment of debt | — | 1,591 | ||||||
Deferred income taxes | (1,452 | ) | 2,592 | |||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (4,769 | ) | (1,146 | ) | ||||
Inventories | (5,032 | ) | (1,850 | ) | ||||
Prepaid expenses and other assets | (1,578 | ) | 25 | |||||
Accounts payable | 2,994 | 2,185 | ||||||
Accrued liabilities | (363 | ) | (771 | ) | ||||
Deferred and accrued rents | 7,036 | 6,379 | ||||||
Net cash provided by operating activities | 21,560 | 21,582 | ||||||
Cash Flows Used by Investing Activities: | ||||||||
Purchase of property and equipment | (13,931 | ) | (11,374 | ) | ||||
Other | — | 30 | ||||||
Net cash used by investing activities | (13,931 | ) | (11,344 | ) | ||||
Cash Flows Used by Financing Activities: | ||||||||
Repayments of borrowings under the prior senior secured credit facility | — | (93,813 | ) | |||||
Proceeds from issuance of stock in initial public offering, net of costs | — | 44,118 | ||||||
Proceeds from borrowing under the new revolving credit facility | — | 41,000 | ||||||
Payment of debt issue costs | — | (1,468 | ) | |||||
Repayments of borrowings under the new revolving credit facility | (17,000 | ) | — | |||||
Proceeds from the exercise of stock options | 730 | 457 | ||||||
Excess tax benefit from stock-based compensation | 1,907 | 364 | ||||||
Net cash used by financing activities | (14,363 | ) | (9,342 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (6,734 | ) | 896 | |||||
Cash and cash equivalents, beginning of year | 14,046 | 12,516 | ||||||
Cash and cash equivalents, end of period | $ | 7,312 | $ | 13,412 | ||||
Supplemental Disclosures of Cash Flow Information: | ||||||||
Cash paid for income taxes | $ | 18,328 | $ | 2,688 | ||||
Interest paid | $ | 315 | $ | 4,979 |
6 |
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