Condensed Consolidating Information (Tables)

6 Months Ended

Aug. 04, 2018

Condensed Consolidating Information

Condensed Consolidating Balance Sheet

Tailored Brands, Inc.

Condensed Consolidating Balance Sheet

August 4, 2018

(in thousands)

	Tailored		The Men’s		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	2,086	$	2,215	$	63,914	$	—	$	68,215
Accounts receivable, net		—		25,994		321,918		50,882		(333,695)		65,099
Inventories		—		162,588		434,499		189,423		—		786,510
Other current assets		3,719		18,975		53,284		11,513		—		87,491
Total current assets		3,719		209,643		811,916		315,732		(333,695)		1,007,315
Property and equipment, net		—		191,503		201,939		33,665		—		427,107
Rental product, net		—		91,843		4,066		15,436		—		111,345
Goodwill		—		6,160		53,422		44,104		—		103,686
Intangible assets, net		—		—		154,580		11,301		—		165,881
Investments in subsidiaries		141,149		1,377,602		—		—		(1,518,751)		—
Other assets		—		12,290		655		81,087		(80,535)		13,497
Total assets	$	144,868	$	1,889,041	$	1,226,578	$	501,325	$	(1,932,981)	$	1,828,831
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	126,871	$	237,341	$	53,847	$	61,617	$	(333,695)	$	145,981
Accrued expenses and other current liabilities		13,049		146,213		124,928		35,788		—		319,978
Current portion of long-term debt		—		9,000		—		—		—		9,000
Total current liabilities		139,920		392,554		178,775		97,405		(333,695)		474,959
Long-term debt, net		—		1,207,377		—		—		—		1,207,377
Deferred taxes, net and other liabilities		4,937		147,961		47,365		26,756		(80,535)		146,484
Shareholders'  equity		11		141,149		1,000,438		377,164		(1,518,751)		11
Total liabilities and shareholders'  equity	$	144,868	$	1,889,041	$	1,226,578	$	501,325	$	(1,932,981)	$	1,828,831

Tailored Brands, Inc.

Condensed Consolidating Balance Sheet

July 29, 2017

(in thousands)

	Tailored		The Men’s		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	13,482	$	1,924	$	97,335	$	—	$	112,741
Accounts receivable, net		7,380		18,103		430,884		102,613		(487,080)		71,900
Inventories		—		186,831		403,875		354,077		—		944,783
Other current assets		7,310		204,477		26,431		9,346		(192,132)		55,432
Total current assets		14,690		422,893		863,114		563,371		(679,212)		1,184,856
Property and equipment, net		—		218,122		204,641		36,767		—		459,530
Rental product, net		—		116,525		4,894		17,978		—		139,397
Goodwill		—		6,160		68,510		45,210		—		119,880
Intangible assets, net		—		24		156,307		13,782		—		170,113
Investments in subsidiaries		(16,512)		1,436,555		—		—		(1,420,043)		—
Other assets		—		4,790		897		6,861		(6,600)		5,948
Total assets	$	(1,822)	$	2,205,069	$	1,298,363	$	683,969	$	(2,105,855)	$	2,079,724
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY
CURRENT LIABILITIES:
Accounts payable	$	26,528	$	480,565	$	60,420	$	59,723	$	(487,080)	$	140,156
Accrued expenses and other current liabilities		17,967		119,314		113,058		217,443		(184,856)		282,926
Current portion of long-term debt		—		8,750		—		—		—		8,750
Total current liabilities		44,495		608,629		173,478		277,166		(671,936)		431,832
Long-term debt, net		—		1,532,255		—		—		—		1,532,255
Deferred taxes, net and other liabilities		359		80,697		84,509		10,624		(13,876)		162,313
Shareholders' (deficit) equity		(46,676)		(16,512)		1,040,376		396,179		(1,420,043)		(46,676)
Total liabilities and shareholders' (deficit) equity	$	(1,822)	$	2,205,069	$	1,298,363	$	683,969	$	(2,105,855)	$	2,079,724

Tailored Brands, Inc.

Condensed Consolidating Balance Sheet

February 3, 2018

(in thousands)

	Tailored		The Men’s		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	51,818	$	2,180	$	49,609	$	—	$	103,607
Accounts receivable, net		—		23,712		368,328		58,573		(370,830)		79,783
Inventories		—		207,504		445,126		199,301		—		851,931
Other current assets		3,666		26,951		38,217		9,418		—		78,252
Total current assets		3,666		309,985		853,851		316,901		(370,830)		1,113,573
Property and equipment, net		—		203,204		220,979		36,491		—		460,674
Rental product, net		—		103,664		3,658		16,408		—		123,730
Goodwill		—		6,160		67,010		47,122		—		120,292
Intangible assets, net		—		—		155,438		13,549		—		168,987
Investments in subsidiaries		128,458		1,424,647		—		—		(1,553,105)		—
Other assets		—		11,183		805		81,846		(81,135)		12,699
Total assets	$	132,124	$	2,058,843	$	1,301,741	$	512,317	$	(2,005,070)	$	1,999,955
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	110,326	$	281,838	$	57,756	$	66,016	$	(370,830)	$	145,106
Accrued expenses and other current liabilities		14,061		87,597		155,813		34,187		—		291,658
Current portion of long-term debt		—		7,000		—		—		—		7,000
Total current liabilities		124,387		376,435		213,569		100,203		(370,830)		443,764
Long-term debt, net		—		1,389,808		—		—		—		1,389,808
Deferred taxes, net and other liabilities		5,545		164,142		46,641		28,998		(81,135)		164,191
Shareholders' equity		2,192		128,458		1,041,531		383,116		(1,553,105)		2,192
Total liabilities and shareholders' equity	$	132,124	$	2,058,843	$	1,301,741	$	512,317	$	(2,005,070)	$	1,999,955

Condensed Consolidating Statement of Earnings (Loss)

Tailored Brands, Inc.

Condensed Consolidating Statement of Earnings (Loss)

(in thousands)

	Tailored		The Men’s		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Three Months Ended August 4, 2018
Net sales	$	—	$	443,685	$	386,319		164,525	$	(171,099)	$	823,430
Cost of sales		—		220,210		288,057		117,360		(171,099)		454,528
Gross margin		—		223,475		98,262		47,165		—		368,902
Operating expenses		1,083		132,573		132,681		29,064		(14,485)		280,916
Operating (loss) income		(1,083)		90,902		(34,419)		18,101		14,485		87,986
Other income and expenses, net		—		—		14,485		—		(14,485)		—
Interest expense, net		(923)		(22,458)		2,131		508		—		(20,742)
Loss on extinguishment of debt, net		—		(8,122)		—		—		—		(8,122)
(Loss) earnings before income taxes		(2,006)		60,322		(17,803)		18,609		—		59,122
(Benefit) provision for income taxes		(461)		9,505		(2,557)		3,397		—		9,884
(Loss) earnings before equity in net income of subsidiaries		(1,545)		50,817		(15,246)		15,212		—		49,238
Equity in earnings (loss) of subsidiaries		50,783		(34)		—		—		(50,749)		—
Net earnings (loss)	$	49,238	$	50,783	$	(15,246)	$	15,212	$	(50,749)	$	49,238
Comprehensive income (loss)	$	42,583	$	50,681	$	(15,246)	$	8,659	$	(44,094)	$	42,583
Three Months Ended July 29, 2017
Net sales	$	—	$	457,870	$	369,476	$	135,125	$	(111,713)	$	850,758
Cost of sales		—		208,789		265,051		91,935		(111,713)		454,062
Gross margin		—		249,081		104,425		43,190		—		396,696
Operating expenses		779		134,389		138,023		28,904		(13,864)		288,231
Operating (loss) income		(779)		114,692		(33,598)		14,286		13,864		108,465
Other income and expenses, net		—		—		14,138		(274)		(13,864)		—
Interest expense, net		242		(25,329)		1,703		(1,685)		—		(25,069)
Gain on extinguishment of debt, net		—		3,281		—		—		—		3,281
(Loss) earnings before income taxes		(537)		92,644		(17,757)		12,327		—		86,677
(Benefit) provision for income taxes		(167)		30,215		(6,205)		4,363		—		28,206
(Loss) earnings before equity in net income of subsidiaries		(370)		62,429		(11,552)		7,964		—		58,471
Equity in earnings (loss) of subsidiaries		58,841		(3,588)		—		—		(55,253)		—
Net earnings (loss)	$	58,471	$	58,841	$	(11,552)	$	7,964	$	(55,253)	$	58,471
Comprehensive income (loss)	$	72,498	$	58,544	$	(11,552)	$	22,288	$	(69,280)	$	72,498

	Tailored		The Men’s		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Six Months Ended August 4, 2018
Net sales	$	—	$	889,932	$	767,740	$	292,192	$	(308,470)	$	1,641,394
Cost of sales		—		445,183		579,000		211,555		(308,470)		927,268
Gross margin		—		444,749		188,740		80,637		—		714,126
Operating expenses		1,965		269,846		271,076		57,507		(27,151)		573,243
Operating (loss) income		(1,965)		174,903		(82,336)		23,130		27,151		140,883
Other income and expenses, net		—		—		27,151		—		(27,151)		—
Interest expense, net		(1,687)		(46,124)		4,145		1,028		—		(42,638)
Loss on extinguishment of debt, net		—		(20,833)		—		—		—		(20,833)
(Loss) earnings before income taxes		(3,652)		107,946		(51,040)		24,158		—		77,412
(Benefit) provision for income taxes		(1,119)		20,578		(10,568)		5,374		—		14,265
(Loss) earnings before equity in net income of subsidiaries		(2,533)		87,368		(40,472)		18,784		—		63,147
Equity in earnings (loss) of subsidiaries		65,680		(21,688)		—		—		(43,992)		—
Net earnings (loss)	$	63,147	$	65,680	$	(40,472)	$	18,784	$	(43,992)	$	63,147
Comprehensive income (loss)	$	45,149	$	66,772	$	(40,472)	$	(306)	$	(25,994)	$	45,149
Six Months Ended July 29, 2017
Net sales	$	—	$	876,795	$	741,740	$	270,383	$	(255,254)	$	1,633,664
Cost of sales		—		421,288		543,682		194,812		(255,254)		904,528
Gross margin		—		455,507		198,058		75,571		—		729,136
Operating expenses		1,682		290,172		271,555		54,856		(28,596)		589,669
Operating (loss) income		(1,682)		165,335		(73,497)		20,715		28,596		139,467
Other income and expenses, net		—		—		28,870		(274)		(28,596)		—
Interest expense, net		352		(51,221)		3,261		(3,015)		—		(50,623)
Gain on extinguishment of debt, net		—		3,996		—		—		—		3,996
(Loss) earnings before income taxes		(1,330)		118,110		(41,366)		17,426		—		92,840
Provision (benefit) for income taxes		1,778		38,684		(13,957)		6,025		—		32,530
(Loss) earnings before equity in net income of subsidiaries		(3,108)		79,426		(27,409)		11,401		—		60,310
Equity in earnings (loss) of subsidiaries		63,418		(16,008)		—		—		(47,410)		—
Net earnings (loss)	$	60,310	$	63,418	$	(27,409)	$	11,401	$	(47,410)	$	60,310
Comprehensive income (loss)	$	72,212	$	61,464	$	(27,409)	$	25,257	$	(59,312)	$	72,212

Condensed Consolidating Statement of Cash Flows

Tailored Brands, Inc.

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended August 4, 2018

(in thousands)

	Tailored		The Men’s		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	21,132	$	320,774	$	(2,235)	$	(122,936)	$	(18,744)	$	197,991
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		—		(6,058)		(15,485)		(3,102)		—		(24,645)
Proceeds from divestiture of business		—		—		17,755		—		—		17,755
Intercompany activities		—		(142,775)		—		—		142,775		—
Net cash (used in) provided by investing activities		—		(148,833)		2,270		(3,102)		142,775		(6,890)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on original term loan		—		(993,420)		—		—		—		(993,420)
Proceeds from new term loan		—		895,500		—		—		—		895,500
Payments on new term loan		—		(4,500)		—		—		—		(4,500)
Proceeds from asset-based revolving credit facility		—		199,500		—		—		—		199,500
Payments on asset-based revolving credit facility		—		(95,000)		—		—		—		(95,000)
Repurchase and retirement of senior notes		—		(199,365)		—		—		—		(199,365)
Deferred financing costs		—		(5,644)		—		—		—		(5,644)
Intercompany activities		—		(18,744)		—		142,775		(124,031)		—
Cash dividends paid		(18,744)		—		—		—		—		(18,744)
Proceeds from issuance of common stock		4,113		—		—		—		—		4,113
Tax payments related to vested deferred stock units		(6,501)		—		—		—		—		(6,501)
Net cash (used in) provided by financing activities		(21,132)		(221,673)		—		142,775		(124,031)		(224,061)
Effect of exchange rate changes		—		—		—		(2,432)		—		(2,432)
(Decrease) increase in cash and cash equivalents		—		(49,732)		35		14,305		—		(35,392)
Cash and cash equivalents at beginning of period		—		51,818		2,180		49,609		—		103,607
Cash and cash equivalents at end of period	$	—	$	2,086	$	2,215	$	63,914	$	—	$	68,215

Tailored Brands, Inc.

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended July 29, 2017

(in thousands)

	Tailored		The Men’s		Guarantor		Non-Guarantor
	Brands, Inc.		Wearhouse, Inc.		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	18,750	$	288,017	$	17,196	$	(165,401)	$	(18,033)	$	140,529
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		—		(11,384)		(19,310)		(3,279)		—		(33,973)
Acquisition of business, net of cash		—		—		—		(457)		—		(457)
Intercompany activities		—		(192,824)		—		—		192,824		—
Proceeds from sale of property and equipment		—		—		2,157		—		—		2,157
Net cash used in investing activities		—		(204,208)		(17,153)		(3,736)		192,824		(32,273)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on original term loan		—		(8,129)		—		—		—		(8,129)
Proceeds from asset-based revolving credit facility		—		181,550		—		—		—		181,550
Payments on asset-based revolving credit facility		—		(181,550)		—		—		—		(181,550)
Repurchase and retirement of senior notes		—		(45,167)		—		—		—		(45,167)
Intercompany activities		—		(18,033)		—		192,824		(174,791)		—
Cash dividends paid		(18,033)		—		—		—		—		(18,033)
Proceeds from issuance of common stock		927		—		—		—		—		927
Tax payments related to vested deferred stock units		(1,644)		—		—		—		—		(1,644)
Net cash (used in) provided by financing activities		(18,750)		(71,329)		—		192,824		(174,791)		(72,046)
Effect of exchange rate changes		—		—		—		5,642		—		5,642
Increase in cash and cash equivalents		—		12,480		43		29,329		—		41,852
Cash and cash equivalents at beginning of period		—		1,002		1,881		68,006		—		70,889
Cash and cash equivalents at end of period	$	—	$	13,482	$	1,924	$	97,335	$	—	$	112,741