EX-99.1 2 giii-20200728xex99d1.htm EX-99.1

Exhibit 99.1

Summary Historical Financial and Other Data

The following is a reconciliation of net income (loss) to Consolidated Adjusted EBITDA (as reported) and Consolidated Adjusted EBITDA:

Twelve
Months Ended
April 30,

Three Months Ended
April 30,

Year Ended
January 31,

2020

2020

2019

2020

2019

2018

2017

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Net income (loss)

$ 92,499

$ (39,295)

$ 12,043

$ 143,837

$ 138,067

$ 62,124

$ 51,938

Transitional expenses and professional fees associated with the DKI Acquisition

$ 2,050

$ 11,699

Asset impairments and loss (gain) on lease terminations

23,387

3,187

(829)

19,371

2,813

7,884

10,480

Depreciation and amortization

39,129

9,867

9,473

38,735

38,819

37,783

32,481

Interest and financing charges,net

44,466

10,379

10,320

44,407

43,924

43,488

15,675

Income tax (benefit) expense

19,298

(16,413)

2,550

38,261

45,763

47,925

25,824

Consolidated Adjusted EBITDA (as reported)

218,779

(32,275)

33,557

284,611

269,386

201,254

148,097

Share-based compensation expense (reversal)

12,521

(811)

4,227

17,559

19,694

19,665

16,901

Equity loss (gain) of unconsolidated businesses

176

580

63

(341)

1,543

454

27

Wilsons and Bass Retail operating losses(a)

48,888

22,998

14,600

Q1 Bad Debt Reserves above normalized historical levels(b)

9,767

9,767

Q1 Inventory reserves above normalized historical levels(c)

10,875

10,875

Excess royalty expense relief obtained (d)

8,329

8,329

Accrued health benefits for furloughed employees(e)

2,217

2,217

Run-rate cost savings from furloughed employees who will be permanently eliminated

17,955

Consolidated Adjusted EBITDA(f)

$ 329,507

$ 21,680

$ 52,447

$ 301,829

$ 290,623

$ 221,373

$ 165,025

(a)

Represents operating losses at our Wilsons Leather and G.H. Bass stores for the fiscal year ended January 31, 2020 and the fiscal quarters ended April 30, 2020 and April 30, 2019, respectively. On June 5, 2020, we announced the restructuring of our retail operations segment, including the closing of all 110 Wilsons Leather, all 89 G.H. Bass stores and all 4 Calvin Klein Performance stores. See “Summary—Recent Developments—Restructuring of Our Retail Operations Segment.”  We have not included this adjustment to any historical period shown above other than the twelve months ended April 30, 2020 and the fiscal quarters ended April 30, 2020 and April 30, 2019. In the fiscal year ended January 31, 2020, Wilsons and Bass Retail operating losses were $40.5 million, which was not included in the Consolidated Adjusted EBITDA (as reported) for the fiscal year ended January 31, 2020 and is not reflected in the fiscal 2020 column in the table above.

(b)

Relates to a reserve for doubtful accounts, which was primarily due to allowances recorded against the outstanding receivables of certain department store customers that have publicly announced bankruptcy filings or possible bankruptcy filings.

(c)

Consists of additional reserves above our normal operating levels of inventory.

(d)

Represents a portion of minimum royalty payments that we are required to make under certain of our license agreements, some of which have been waived by certain of our license partners due to decreased sales.

(e)

Represents healthcare deductions that we paid on behalf of furloughed employees, which would normally have been deducted from such furloughed employees’ paychecks if they had been employed and were being paid during the period.

(f)

For the three month period ended April 30, 2020, we also included one-time COVID-19 related items in the calculation of Consolidated Adjusted EBITDA, totaling $63.0 million, for purposes of calculating certain ratios under our credit agreements governing the Existing ABL Facility and Term Loan Facility, which included the following items: (i) a license agreement minimum royalty, (ii) salaries we paid for employees who were not furloughed, but who were not permitted to come to work (due to government orders related to COVID-19), (iii) facility expenses for facilities that were not used as a result of COVID-19 and (iv) run-rate cost savings related to the furlough of certain employees in such calculations. We have not included these additional items in the presentation of Consolidated Adjusted EBITDA presented herein.


(3)

The following is a reconciliation of Free Cash Flow to Consolidated Adjusted EBITDA:

Twelve
Months Ended
April 30,

Three Months Ended
April 30,

Fiscal Year Ended
January 31,

2020

2020

2019

2020

2019

2018

2017

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Consolidated Adjusted EBITDA

$329,507

$21,680

$52,447

$301,829

$290,623

$221,373

$165,025

Capital Expenditures

31,090

6,391

13,291

37,990

29,205

34,507

24,928

Free Cash Flow

$298,417

$15,289

$39,156

$263,839

$261,418

$186,866

$140,097