The Gymboree Corporation Reports Fourth Quarter and Fiscal Year 2011 Results

SAN FRANCISCO, April 25, 2012 // PRNewswire // -- The Gymboree Corporation (the "Company") today reported consolidated financial results for the fourth fiscal quarter and the fiscal year ended January 28, 2012 ("fiscal 2011"). The results for the fourth fiscal quarter and the fiscal year ended January 29, 2011 ("fiscal 2010") presented herein reflect the Company's performance for the "combined period" consisting of the period (the "predecessor period") prior to the November 2010 acquisition of the Company by Giraffe Holding, Inc., an entity controlled by investment funds sponsored by Bain Capital Partners, LLC (the "Acquisition"), as well as the period after completion of the Acquisition (the "successor period"). The addition of the predecessor and successor period amounts is not consistent with accounting principles generally accepted in the United States ("GAAP") and may yield results that are not strictly comparable on a period-to-period basis due to the changes of accounting basis during these periods. For purposes of comparing results of operations, however, the Company believes that it is the most meaningful way to present the results of operations for fiscal 2010 and the fourth quarter of fiscal 2010.

Fourth Fiscal Quarter Ended January 28, 2012

For the fourth quarter of fiscal 2011, net sales were $355.8 million, an increase of 11.9% compared to $318.0 million in net sales for the fourth fiscal quarter of the prior year. Comparable store sales for the quarter increased 6% versus the fourth quarter of the prior year.

Gross profit for the fourth quarter of fiscal 2011 was $126.2 million, or 35.5% of net sales, compared to $92.4 million, or 29.1% of net sales, for the fourth quarter of fiscal 2010. Results for the fourth quarter of 2010 included $45.5 million of additional product costs resulting from purchase accounting adjustments to inventory balances effective upon closing of the Acquisition. Excluding the impact of the purchase accounting adjustments, gross profit for the fourth quarter of fiscal 2010 was $137.9 million, or 43.4% of net sales (see Exhibit D).

SG&A expense for the fourth quarter of fiscal 2011 was $107.2 million, or 30.1% of net sales, compared to $144.7 million, or 45.5% of net sales, in the fourth quarter of the prior year. Results for the fourth quarter of fiscal 2011 and fiscal 2010 include $6.3 million and $58.7 million, respectively, of additional costs resulting from the Acquisition, including the effect of purchase accounting adjustments and Acquisition-related charges recognized during the quarters. Excluding these charges, SG&A expense for the fourth quarter of fiscal 2011 and fiscal 2010 was $101.0 million, or 28.4% of net sales, and $86.0 million, or 27.0% of net sales, respectively, which represents an increase of 140 basis points over fiscal 2010 (see Exhibit D).

During the fourth quarter of fiscal 2011, the Company recorded an impairment charge of $28.3 million related to goodwill allocated to the Company's Gymboree Outlet reporting unit. This impairment charge is a preliminary estimate and remains subject to finalization in fiscal 2012.

Net loss for the fourth quarter of fiscal 2011 was $24.9 million compared to a net loss of $47.3 million for the same period last year. The significant decrease in net loss primarily resulted from higher Acquisition-related costs incurred during the prior fiscal year and was partially offset by the goodwill impairment recorded in the fourth quarter of fiscal 2011.

Net loss attributable to The Gymboree Corporation before interest (income) expense, income tax benefit and depreciation and amortization, adjusted for other items ("Adjusted EBITDA"), for the fourth quarter of fiscal 2011 decreased 28.4% to $47.2 million compared to $65.9 million for the fourth quarter of the prior year. Adjusted EBITDA is not a performance measure under GAAP. See "Non-GAAP Financial Measures" below. A reconciliation of net loss attributable to The Gymboree Corporation to Adjusted EBITDA presented herein is included in Exhibit A of this press release.

Fiscal Year Ended January 28, 2012

Net sales for fiscal 2011 were $1.2 billion, a 10.6% increase from the prior fiscal year. Comparable store sales for fiscal 2011 were up 4% compared to the prior year.

Gross profit for fiscal year 2011 was $459.9 million, or 38.7% of net sales, compared to $458.3 million, or 42.7% of net sales, for fiscal 2010. Excluding purchase accounting adjustments of $10.7 million and $45.5 million in fiscal 2011 and fiscal 2010, respectively, gross profit was $470.7 million, or 39.6% of net sales, and $503.8 million, or 46.9% of net sales, for fiscal 2011 and fiscal 2010, respectively (see Exhibit D).

Adjusted EBITDA for fiscal 2011 decreased 18.7% to $192.6 million, compared to $237.0 million for the prior year (see "Non-GAAP Financial Measures" included in Exhibit A of this press release).

Balance Sheet Highlights

As part of the Acquisition, the Company issued a total of $1.2 billion in debt, consisting of an $820 million term loan and $400 million in high-yield bonds maturing in 8 years. An asset-backed loan ("ABL") in the amount of $225 million was also established to support working capital needs. There were no borrowings outstanding under the ABL as of year end and approximately $127.8 million of undrawn availability. Effective March 2012, the ABL facility was refinanced to take advantage of favorable rates and to extend the maturity date.

Cash at the end of fiscal 2011 increased to $77.9 million from $32.1 million at the end of fiscal 2010.

Capital expenditures for fiscal 2011 were $36.6 million.

Inventory balances at the end of fiscal 2011 were $210.2 million compared to $184.3 million at the end of fiscal 2010. The fiscal 2010 inventory balance included a $10.7 million write-up for purchase accounting adjustments.

Fiscal 2012 Business Outlook

Sales Expectations

The Company anticipates comparable store sales growth to be flat to up in the low single digits for the first quarter and for the full year fiscal 2012.

Adjusted EBITDA

The Company expects Adjusted EBITDA for the first quarter of fiscal 2012 to be in the range of $47 million to $51 million. Overall, the Company expects Adjusted EBITDA in fiscal 2012 to increase modestly over fiscal 2011. The Company anticipates generating sufficient cash flow to service its debt and fund its growth in fiscal 2012.

New Stores

During fiscal 2012, the Company plans to open 105 new stores, including 80 Crazy 8 stores.

Capital Expenditures

During fiscal 2012, the Company anticipates spending $45 million for capital expenditures.

Non-GAAP Financial Measures

The Company defines "Adjusted EBITDA" as net income (loss) attributable to The Gymboree Corporation before interest (income) expense, income tax expense (benefit), and depreciation and amortization ("EBITDA") adjusted for other items, including goodwill impairment, non-cash share-based compensation, loss on disposal/impairment of assets and sponsor management fees and expenses, as well as the impact of purchase accounting adjustments resulting from the Acquisition.

Adjusted EBITDA is a non-GAAP measure but is considered an important supplemental measure of the Company's performance and is believed to be used frequently by securities analysts, investors and other interested parties in the evaluation of similar retail companies. Adjusted EBITDA is not a presentation made in accordance with GAAP and the Company's computation of Adjusted EBITDA may vary from others in the industry. Adjusted EBITDA should not be considered an alternative to operating income or net income, as a measure of operating performance or cash flow, or as a measure of liquidity. Adjusted EBITDA has important limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. See Exhibit A for a reconciliation of Adjusted EBITDA to net income.

Management Presentation

The live broadcast of the discussion of fourth quarter and fiscal 2011 financial results and fiscal 2012 business outlook will be available to interested parties at 1:00 p.m. PT (4:00 p.m. ET) on Wednesday, April 25, 2012. To listen to the live broadcast over the internet, please log on to www.gymboree.com, click on "Company Information" at the bottom of the page, go to "Investor and Media Relations" and then "Conference Calls & Webcasts." A replay of the call will be available two hours after the broadcast through midnight PT, Wednesday, May 9, 2012, at 855-859-2056, passcode 71019106.

About The Gymboree Corporation

The Gymboree Corporation's specialty retail brands offer unique, high-quality products delivered with personalized customer service. As of March 31, 2012, the Company operated a total of 1,155 retail stores: 633 Gymboree® stores (588 in the United States, 41 in Canada, 1 in Puerto Rico and 3 in Australia), 153 Gymboree Outlet stores, 126 Janie and Jack® shops and 243 Crazy 8® stores in the United States. The Company also operates online stores at www.gymboree.com, www.janieandjack.com and www.crazy8.com, and offers directed parent-child developmental play programs at 711 franchised and Company-operated Gymboree Play & Music® centers in the United States and 39 other countries.

Forward-Looking Statements

The foregoing financial information for the fourth fiscal quarter and the fiscal year ended January 28, 2012 is unaudited and subject to quarter-end and year-end adjustments. The foregoing paragraphs contain forward-looking statements relating to The Gymboree Corporation's anticipated future financial performance, such as those relating to its comparable store sales growth, Adjusted EBITDA, cash flows and new store openings in fiscal 2012. Actual results could vary materially as a result of a number of factors, including the ongoing volatility in the commodities market for cotton, uncertainties relating to high levels of unemployment and consumer debt, volatility in the financial markets, general economic conditions, the Company's ability to anticipate and timely respond to changes in trends and consumer preferences and customer reactions to new merchandise, service levels and new concepts, competitive market conditions, success in meeting the Company's delivery targets, the Company's promotional activity, gross margin achievement, the Company's ability to appropriately manage inventory, effects of future embargos from countries used to source product, the Company's ability to attract and retain key personnel and other qualified team members, and other factors, including those discussed under "Risk Factors" in Part II, "Item 1A, Risk Factors," of the Company's Quarterly Report on Form 10-Q for the quarter ended April 30, 2011, filed with the Securities and Exchange Commission on June 29, 2011. The forward-looking statements contained in this press release reflect the Company's expectations as of the date hereof, and the inclusion of a projection or forward-looking statement in this press release should not be regarded as a representation by the Company that its plans or objectives will be achieved. The Company undertakes no obligation to update the information provided herein.

Gymboree, Janie and Jack, Crazy 8, and Gymboree Play & Music are registered trademarks of The Gymboree Corporation.

EXHIBIT A

             

THE GYMBOREE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

         

(Non-GAAP)

       
     

Successor

 

Combined

 

Successor

 

Predecessor

     

Year Ended

 

Year Ended

 

November 23, 2010 to

 

January 31, 2010 to

     

January 28, 2012

 

January 29, 2011

 

January 29, 2011

 

November 22, 2010

     

($ in thousands)

Net sales:

             

   Retail

$   1,164,171

 

$1,059,150

 

$         244,287

 

$          814,863

   Gymboree Play & Music

13,885

 

13,661

 

2,814

 

10,847

   Retail Franchise

10,232

 

1,372

 

447

 

925

   Other

-

 

248

 

-

 

248

           Total net sales

1,188,288

 

1,074,431

 

247,548

 

826,883

   Cost of goods sold, including buying and occupancy expenses

(728,346)

 

(616,158)

 

(184,483)

 

(431,675)

               

           Gross profit

459,942

 

458,273

 

63,065

 

395,208

   Selling, general and administrative expenses

(380,141)

 

(386,204)

 

(78,843)

 

(307,361)

   Goodwill impairment

(28,300)

 

-

 

-

 

-

               

           Operating income (loss)

51,501

 

72,069

 

(15,778)

 

87,847

   Interest income

168

 

331

 

36

 

295

   Interest expense

(89,807)

 

(17,635)

 

(17,387)

 

(248)

   Loss on extinguishment of debt

(19,563)

 

-

 

-

 

-

  Other (expense) income, net

(109)

 

172

 

53

 

119

               

           (Loss) income before income taxes

(57,810)

 

54,937

 

(33,076)

 

88,013

   Income tax benefit (expense)

6,626

 

(26,417)

 

10,032

 

(36,449)

           Net (loss) income 

(51,184)

 

28,520

 

(23,044)

 

51,564

   Net loss attributable to noncontrolling interest

5,839

 

-

 

-

 

-

                   

           Net (loss) income attributable to The Gymboree Corporation

$        (45,345)

 

$        28,520

 

$           (23,044)

 

$         51,564

                   

Net (loss) income attributable to The Gymboree Corporation

$           (45,345)

 

$         28,520

 

$        (23,044)

 

$         51,564

Interest expense

89,807

 

17,635

 

17,387

 

248

Interest income

(168)

 

(331)

 

(36)

 

(295)

Income tax (benefit) expense

(6,626)

 

26,417

 

(10,032)

 

36,449

Goodwill impairment

28,300

 

-

 

-

 

-

Depreciation and amortization

57,930

 

42,800

 

10,250

 

32,550

Non-cash share-based compensation expense 

5,907

 

41,524

 

482

 

41,042

Loss on disposal/impairment on assets

4,339

 

2,030

 

1,150

 

880

Loss on extinguishment of debt

19,563

 

-

 

-

 

-

Gymboree Play & Music franchise transition

7,200

 

-

 

-

 

-

Acquisition-related adjustments

31,678

 

78,357

 

61,755

 

16,602

Adjusted EBITDA

$        192,585

 

$        236,952

 

$          57,912

 

$        179,040

                   
         

(Non-GAAP)

       
     

Successor

 

Combined

 

Successor

 

Predecessor

     

Quarter Ended

 

Quarter Ended

 

November 23, 2010 to

 

October 31, 2010 to

     

January 28, 2012

 

January 29, 2011

 

January 29, 2011

 

November 22, 2010

     

($ in thousands)

Net sales:

             

   Retail

$        348,437

 

$        314,173

 

$         244,287

 

$          69,886

   Gymboree Play & Music

4,416

 

3,310

 

2,814

 

496

   Retail Franchise

2,995

 

524

 

447

 

77

                   

           Total net sales

355,848

 

318,007

 

247,548

 

70,459

   Cost of goods sold, including buying and occupancy expenses

(229,643)

 

(225,609)

 

(184,483)

 

(41,126)

                   

           Gross profit

126,205

 

92,398

 

63,065

 

29,333

   Selling, general and administrative expenses

(107,246)

 

(144,689)

 

(78,843)

 

(65,846)

   Goodwill impairment

(28,300)

 

-

 

-

 

-

                   

           Operating loss

(9,341)

 

(52,291)

 

(15,778)

 

(36,513)

   Interest income

53

 

54

 

36

 

18

   Interest expense

(21,826)

 

(17,423)

 

(17,387)

 

(36)

   Other (expense) income, net

(67)

 

58

 

53

 

5

                   

           Loss before income taxes

(31,181)

 

(69,602)

 

(33,076)

 

(36,526)

   Income tax benefit 

416

 

22,286

 

10,032

 

12,254

           Net loss

(30,765)

 

(47,316)

 

(23,044)

 

(24,272)

   Net loss attributable to noncontrolling interest

5,839

 

-

 

-

 

-

                   

 Net loss attributable to The Gymboree Corporation

$        (24,926)

 

$        (47,316)

 

$         (23,044)

 

$          (24,272)

                   

Net loss attributable to The Gymboree Corporation

$        (24,926)

 

$        (47,316)

 

$          (23,044)

 

$           (24,272)

Interest expense

21,826

 

17,423

 

17,387

 

36

Interest income

(53)

 

(54)

 

(36)

 

(18)

Income tax benefit 

   

(416)

 

(22,286)

 

(10,032)

 

(12,254)

Goodwill impairment

   

28,300

 

-

 

-

 

-

Depreciation and amortization

15,227

 

13,088

 

10,250

 

2,838

Non-cash share-based compensation expense 

1,577

 

28,973

 

482

 

28,491

Loss on disposal/impairment on assets

838

 

1,198

 

1,150

 

48

Acquisition-related adjustments

4,813

 

74,878

 

61,755

 

13,123

Adjusted EBITDA

$        47,186

 

$         65,904

 

$              57,912

 

$               7,992

                   
                   

EXHIBIT B

           

THE GYMBOREE CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and per share data)

             

ASSETS

January 28,

   

January 29,

 

2012

   

2011

Current Assets:

       

    Cash and cash equivalents

$

77,910

   

$

32,124

    Accounts receivable, net of allowance of $114 and $-

 

27,277

     

13,669

    Merchandise inventories

 

210,212

     

184,268

    Prepaid income taxes

 

3,736

     

16,116

    Prepaid expenses

 

5,532

     

4,856

    Deferred income taxes 

 

36,115

     

6,697

         Total current assets

 

360,782

     

257,730

Property and Equipment:

           

    Land and buildings

 

22,428

     

22,397

    Leasehold improvements

 

146,497

     

125,153

    Furniture, fixtures, and equipment

 

82,606

     

71,286

   

251,531

     

218,836

    Less accumulated depreciation and amortization

 

(49,379)

     

(6,345)

   

202,152

     

212,491

Goodwill

 

899,097

     

927,397

Other Intangible Assets 

 

599,195

     

617,810

Deferred Financing Costs

 

47,915

     

61,983

Other Assets

 

4,646

     

15,072

        Total Assets

$

2,113,787

   

$

2,092,483

             

LIABILITIES AND STOCKHOLDERS' EQUITY

           
             

Current Liabilities:

           

    Accounts payable

$

79,027

   

$

54,494

    Accrued liabilities

 

94,178

     

81,100

    Current portion of long-term debt

 

17,698

     

8,200

        Total current liabilities

 

190,903

     

143,794

Long-Term Liabilities:

           

    Long-term debt

 

1,192,171

     

1,207,791

    Lease incentives and other deferred liabilities

 

28,681

     

18,352

    Unrecognized tax benefits

 

7,898

     

7,779

    Deferred income taxes

 

245,495

     

228,956

        Total Liabilities

 

1,665,148

     

1,606,672

Commitments and Contingencies 

 

-

     

-

Stockholders' Equity:

           

    Common stock, including additional paid-in capital 

           

        ($.001 par value: 1,000 shares authorized, issued and

           

        outstanding)

 

519,589

     

508,617

    Accumulated deficit

 

(68,389)

     

(23,044)

    Accumulated other comprehensive (loss) income

 

(5,825)

     

238

        Total Stockholders' Equity

 

445,375

     

485,811

   Noncontrolling interest

 

3,264

     

-

        Total equity

 

448,639

     

485,811

        Total Liabilities and Stockholders' Equity

$

2,113,787

   

$

2,092,483

             

EXHIBIT C

                     

THE GYMBOREE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

                       
 

Successor

   

(Non-GAAP)

           
 

Year Ended

   

Combined

 

Successor

 

Predecessor

 

January 28,

   

Year Ended

 

November 23, 2010 to

 

January 31, 2010 to

 

2012

   

January 29, 2011

 

January 29, 2011

 

November 22, 2010

CASH FLOWS FROM OPERATING ACTIVITIES:

                     

Net (loss) income 

$

(51,184)

 

$

28,520

 

$

(23,044)

 

$

51,564

Adjustments to reconcile consolidated net (loss)  income to net cash

                     

provided by operating activities:

                     

Write-off of deferred financing costs and original issue discount

 

15,860

   

-

   

-

   

-

Depreciation and amortization

 

57,930

   

42,800

   

10,250

   

32,550

Goodwill impairment

 

28,300

   

-

   

-

   

-

Amortization of deferred financing costs and accretion of original issue discount

 

6,830

   

1,357

   

1,357

   

-

Interest rate cap contracts - adjustment to market

 

51

   

-

   

-

   

-

(Benefit) provision for deferred income taxes

 

(8,946)

   

(7,118)

   

(11,246)

   

4,128

Share-based compensation expense

 

5,907

   

41,524

   

482

   

41,042

Loss on disposal/impairment of assets

 

4,339

   

2,030

   

1,150

   

880

Other non-cash expense

 

4,608

   

-

   

-

   

-

Excess tax benefits from exercise and vesting of share-based awards

 

-

   

(12,584)

   

-

   

(12,584)

Tax benefit from exercise of stock options and vesting of restricted

                     

stock awards and units

 

-

   

12,254

   

-

   

12,254

Change in assets and liabilities:

       

-

           

Accounts receivable

 

(11,209)

   

(3,756)

   

7,035

   

(10,791)

Merchandise inventories

 

(25,646)

   

(6,905)

   

48,607

   

(55,512)

Prepaid income taxes

 

12,385

   

(27,657)

   

(345)

   

(27,312)

Prepaid expenses and other assets

 

(743)

   

(51)

   

1,295

   

(1,346)

Accounts payable

 

24,533

   

7,967

   

(11,782)

   

19,749

Accrued liabilities

 

14,515

   

28,139

   

(4,820)

   

32,959

Lease incentives and other deferred liabilities

 

14,015

   

5,511

   

2,141

   

3,370

Net cash provided by operating activities 

 

91,545

   

112,031

   

21,080

   

90,951

                       

CASH FLOWS FROM INVESTING ACTIVITIES:

                     

Capital expenditures

 

(36,565)

   

(47,268)

   

(5,054)

   

(42,214)

Acquisition of business, net of cash acquired

 

(1,352)

   

(1,828,308)

   

(1,828,308)

   

-

Other

 

(295)

   

(1,284)

   

(46)

   

(1,238)

    Net cash used in investing activities

 

(38,212)

   

(1,876,860)

   

(1,833,408)

   

(43,452)

                       

CASH FLOWS FROM FINANCING ACTIVITIES:

                     

Proceeds from Term Loan

 

820,000

   

815,900

   

815,900

   

-

Payments on Term Loan

 

(828,200)

   

-

   

-

   

-

Proceeds from senior notes

 

-

   

400,000

   

400,000

   

-

Proceeds from ABL facility

 

60,656

   

30,000

   

30,000

   

-

Payments on ABL facility

 

(60,656)

   

(30,000)

   

(30,000)

   

-

Deferred financing costs

 

(6,665)

   

(63,266)

   

(63,266)

   

-

Investment by Parent

 

14,865

   

-

   

-

   

-

Dividend payment to Parent

 

(12,200)

   

-

   

-

   

-

Purchase of interest rate cap contracts

 

-

   

(12,079)

   

(12,079)

   

-

Proceeds from issuance of common stock

 

-

   

509,506

   

508,135

   

1,371

Excess tax benefits from exercise and vesting of share-based awards

 

-

   

12,584

   

-

   

12,584

Repurchases of common stock

 

-

   

(124,610)

   

-

   

(124,610)

Capital contribution to noncontrolling interest

 

4,477

   

-

   

-

   

-

    Net cash (used in) provided by financing activities

 

(7,723)

   

1,538,035

   

1,648,690

   

(110,655)

                       

Net increase (decrease) in cash and cash equivalents

 

45,610

   

(226,794)

   

(163,638)

   

(63,156)

                       

Effect of exchange rate fluctuations on cash

 

176

   

1,246

   

852

   

394

                       

CASH AND CASH EQUIVALENTS:

                     

Beginning of Period

 

32,124

   

257,672

   

194,910

   

257,672

End of Period

$

77,910

 

$

32,124

 

$

32,124

 

$

194,910

                       

EXHIBIT D

               

THE GYMBOREE CORPORATION

RECONCILIATION OF NON-GAAP MEASURES

(Unaudited)

           

as a % of Total Net Sales

       

(Non-GAAP)

     

(Non-GAAP)

   

Successor

 

Combined

 

Successor

 

Combined

   

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

   

January 28, 2012

 

January 29, 2011

 

January 28, 2012

 

January 29, 2011

   

($ in thousands)

       

Gross profit as reported

 

$        126,205

 

$          92,398

 

35.5%

 

29.1%

Purchase accounting adjustments

 

-

 

45,508

 

-

 

14.3%

Gross profit excluding purchase accounting adjustments (non-GAAP measure)

 

$           126,205

 

$           137,906

 

35.5%

 

43.4%

                 
                 
           

as a % of Total Net Sales

       

(Non-GAAP)

     

(Non-GAAP)

   

Successor

 

Combined

 

Successor

 

Combined

   

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

   

January 28, 2012

 

January 29, 2011

 

January 28, 2012

 

January 29, 2011

   

($ in thousands)

       

SG&A as reported

 

$      (107,246)

 

$      (144,689)

 

-30.1%

 

-45.5%

Purchase accounting adjustments

 

6,259

 

58,679

 

1.8%

 

18.5%

SG&A excluding purchase accounting adjustments (non-GAAP measure)

 

$         (100,987)

 

$           (86,010)

 

-28.4%

 

-27.0%

                 
                 
                 
           

as a % of Total Net Sales

       

(Non-GAAP)

     

(Non-GAAP)

   

Successor

 

Combined

 

Successor

 

Combined

   

Year Ended

 

Year Ended

 

Year Ended

 

Year Ended

   

January 28, 2012

 

January 29, 2011

 

January 28, 2012

 

January 29, 2011

   

($ in thousands)

       

Gross profit as reported

 

$           459,942

 

$           458,273

 

38.7%

 

42.7%

Purchase accounting adjustments

 

10,731

 

45,508

 

0.9%

 

4.2%

Gross profit excluding purchase accounting adjustments (non-GAAP measure)

 

$        470,673

 

$        503,781

 

39.6%

 

46.9%

                 

###

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