The Gymboree Corporation Reports Third Fiscal Quarter 2012 Results

SAN FRANCISCO, Dec. 5, 2012 // PRNewswire // -- The Gymboree Corporation (the "Company") today reported consolidated financial results for the third fiscal quarter ended October 27, 2012.

For the third quarter of the fiscal year ending February 2, 2013 ("fiscal 2012"), net sales were $311.5 million, an increase of 2.8% compared to $303.1 million in net sales for the third quarter of the fiscal year ended January 28, 2012 ("fiscal 2011"). Comparable store sales for the third quarter of fiscal 2012 decreased 4% compared to the third quarter of fiscal 2011.

Gross profit for the third quarter of fiscal 2012 was $125.6 million, or 40.3% of net sales, compared to $130.8 million, or 43.2% of net sales, for the third quarter of fiscal 2011. Excluding purchase accounting adjustments of $3.1 million and $3.4 million for the third quarter of fiscal 2012 and the third quarter of fiscal 2011, respectively, relating to the November 2010 acquisition of the Company by investment funds sponsored by Bain Capital Partners, LLC (the "Acquisition"), adjusted gross profit was $128.7 million, or 41.3% of net sales, and $134.2 million, or 44.3% of net sales, for the third quarter of fiscal 2012 and the third quarter of fiscal 2011, respectively (see Exhibit D for relevant reconciliation information).

SG&A expense for the third quarter of fiscal 2012 was $99.0 million, or 31.8% of net sales, compared to $99.4 million, or 32.8% of net sales, in the third quarter of the prior year. Results for the third quarter of fiscal 2012 and fiscal 2011 include $5.3 million and $5.4 million, respectively, of additional costs resulting from the Acquisition, including the effect of purchase accounting adjustments. Also included in the third quarter of fiscal 2011 was a $7.2 million charge resulting from a termination fee incurred to terminate a master franchisee in China. Excluding these charges, adjusted SG&A expense for the third quarter of fiscal 2012 and fiscal 2011 was $93.8 million, or 30.1% of net sales, and $86.8 million, or 28.6% of net sales, respectively, which represents an increase of 150 basis points over fiscal 2011 (see Exhibit D for relevant reconciliation information).

Operating income for the third quarter of fiscal 2012 was $26.6 million compared to $31.4 million for the same period last year. The decrease in operating income primarily resulted from lower gross profit margins and, to a lesser extent, from SG&A deleveraging due to the comparable store sales decrease of 4%.

Net income attributable to the Company before interest (income) expense, income tax benefit and depreciation and amortization, adjusted for other items ("Adjusted EBITDA"), for the third quarter of fiscal 2012 decreased 22.6% to $46.9 million, compared to $60.6 million for the third quarter of the prior year. Adjusted EBITDA is not a performance measure under U.S. generally accepted accounting principles ("GAAP"). See "Non-GAAP Financial Measures" below. A reconciliation of net income/(loss) attributable to the Company to Adjusted EBITDA presented herein is included in Exhibit D of this press release.

Balance Sheet Highlights

There were no borrowings outstanding under the Company's $225 million asset-backed loan as of the end of the third fiscal quarter and approximately $189.2 million of availability.

Cash at the end of the third quarter of fiscal 2012 decreased to $42.6 million from $45.7 million at the end of the third quarter of fiscal 2011.

Capital expenditures for the third quarter of fiscal 2012 were $13.4 million, with the majority of the cash used to fund the opening of 38 new stores during the quarter.

Inventory balances at the end of the third quarter of fiscal 2012 were $255.7 million compared to $252.7 million at the end of the third quarter of fiscal 2011. Inventory cost on a per square foot basis was down 8% and inventory units on a per square foot basis were also down in the low single-digits.

In November 2012, the Company made a voluntary prepayment of $25 million on the outstanding principal of its senior secured term loan facility.

Fiscal 2012 Business Outlook

Sales Expectations

The Company anticipates comparable store sales to be flat to slightly down for the full year fiscal 2012.

Adjusted EBITDA

The Company expects Adjusted EBITDA for the fourth quarter to be comparable to slightly higher than the prior year. The Company continues to anticipate 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 approximately 124 new stores, including approximately 98 Crazy 8 stores.

Capital Expenditures

During the fourth quarter of fiscal 2012, the Company anticipates spending approximately $15 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 loss on extinguishment of debt, 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 D for a reconciliation of Adjusted EBITDA to net income/(loss).

Management Presentation

The live broadcast of the discussion of third quarter fiscal 2012 financial results will be available to interested parties at 1:00 p.m. PT (4:00 p.m. ET) on Wednesday, December 5, 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, December 12, 2012, at 855-859-2056, passcode 73454037.

About The Gymboree Corporation

The Gymboree Corporation's specialty retail brands offer unique, high-quality products delivered with personalized customer service. As of October 27, 2012, the Company operated a total of 1,228 retail stores, as follows: 634 Gymboree® stores (consisting of 586 in the United States, 41 in Canada, 1 in Puerto Rico and 6 in Australia), 156 Gymboree Outlet stores, 130 Janie and Jack® shops and 308 Crazy 8® stores in the United States. The Company also operates three online stores at www.gymboree.com, www.janieandjack.com and www.crazy8.com, and offers directed parent-child developmental play programs at 714 franchised and Company-operated Gymboree Play & Music® centers in the United States and 42 other countries.

Forward-Looking Statements

The foregoing financial information for the third fiscal quarter ended October 27, 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 Adjusted EBITDA, cash flows, capital expenditures 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 "Item 1A, Risk Factors," of the Company's Annual Report on Form 10-K for the fiscal year ended January 28, 2012, filed with the Securities and Exchange Commission on April 26, 2012. 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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

                   
     

13 Weeks Ended

 

13 Weeks Ended

 

39 Weeks Ended

 

39 Weeks Ended

     

October 27, 2012

 

October 29, 2011

 

October 27, 2012

 

October 29, 2011

     

(in thousands)

 

(in thousands)

Net sales:

             
 

Retail

$              299,965

  

$              296,445

  

$              847,195

  

$              815,735

 

Gymboree Play & Music 

6,390

 

3,195

 

17,981

 

9,469

 

Retail Franchise

5,163

 

3,508

 

12,845

 

7,237

   

Total net sales

311,518

 

303,148

 

878,021

 

832,441

 

Cost of goods sold, including buying and occupancy expenses

(185,915)

 

(172,303)

 

(541,406)

 

(498,704)

                   
   

Gross profit

125,603

 

130,845

 

336,615

 

333,737

 

Selling, general and administrative expenses

(99,016)

 

(99,448)

 

(286,350)

 

(272,896)

                   
   

Operating income

26,587

 

31,397

 

50,265

 

60,841

 

Interest income

42

 

28

 

146

 

115

 

Interest expense

(21,312)

 

(22,051)

 

(64,163)

 

(67,981)

 

Loss on extinguishment of debt

-

 

-

 

(1,237)

 

(19,563)

 

Other income (expense), net

86

 

8

 

(4)

 

(44)

                   
   

Income (loss) before income taxes

5,403

 

9,382

 

(14,993)

 

(26,632)

 

Income tax (expense) benefit 

(493)

 

(12,430)

 

10,007

 

6,210

                   
   

Net income (loss)

4,910

 

(3,048)

 

(4,986)

 

(20,422)

 

Net loss attributable to noncontrolling interest

1,211

 

-

 

2,835

 

-

   

Net income (loss) attributable to The Gymboree Corporation

$                  6,121

 

$                 (3,048)

 

$                 (2,151)

 

$               (20,422)

 

 

 

EXHIBIT B

           

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

               
     

October 27,

 

January 28,

 

October 29,

     

2012

 

2012

 

2011

     

(in thousands)

Current Assets

           
 

Cash and cash equivalents

 

$      42,586

   

$      77,910

   

$      45,721

 

Accounts receivable

 

27,232

 

27,277

 

21,948

 

Merchandise inventories

 

255,722

 

210,212

 

252,685

 

Prepaid income taxes

 

5,165

 

3,736

 

17,049

 

Prepaid expenses and deferred income taxes

 

45,199

 

41,647

 

37,704

 

   Total current assets

 

375,904

 

360,782

 

375,107

               

Property and Equipment, net

 

205,486

 

202,152

 

207,312

Goodwill

 

899,097

 

899,097

 

927,397

Other Intangible Assets

 

585,277

 

599,195

 

604,563

Deferred Financing Costs

 

43,018

 

47,915

 

49,549

Other Assets

 

5,816

 

4,646

 

7,605

               
 

Total Assets

 

$ 2,114,598

 

$ 2,113,787

 

$ 2,171,533

               

Current Liabilities

           
 

Accounts payable

 

$      88,824

 

$      79,027

 

$      68,674

 

Accrued liabilities

 

101,573

 

94,178

 

90,835

 

Line of credit

 

-

 

-

 

40,000

 

Current portion of long-term debt

 

-

 

17,698

 

8,200

 

   Total current liabilities

 

190,397

 

190,903

 

207,709

               

Long-Term Liabilities

           
 

Long-term debt

 

1,192,383

 

1,192,171

 

1,203,650

 

Lease incentives and other deferred liabilities

 

46,640

 

36,579

 

36,411

 

Deferred income taxes

 

235,935

 

245,495

 

243,287

 

Total Liabilities

 

1,665,355

 

1,665,148

 

1,691,057

               

Stockholders' Equity

 

449,243

 

448,639

 

480,476

               
 

Total Liabilities and Stockholders' Equity

 

$ 2,114,598

 

$ 2,113,787

 

$ 2,171,533

 

 

 

EXHIBIT C

 

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

         
   

39 Weeks Ended

 

39 Weeks Ended

   

October 27, 2012

 

October 29, 2011

   

(in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES:

     

Net loss

$                (4,986)

  

$              (20,422)

Adjustments to reconcile net loss to net cash

     

  provided by operating activities:

     
 

Write-off of deferred financing costs and original issue discount

1,237

 

15,860

 

Depreciation and amortization

43,776

 

42,703

 

Amortization of deferred financing costs and accretion of original issue discount

5,216

 

5,126

 

Interest rate cap contracts - adjustment to market

182

 

15

 

Loss on disposal/impairment of assets

2,090

 

3,501

 

Benefit for deferred income taxes

(12,986)

 

(6,269)

 

Share-based compensation expense

3,220

 

4,330

 

Other non-cash expense

1,685

 

-

 

Change in assets and liabilities:

     

        Accounts receivable

(2,317)

 

(8,278)

        Merchandise inventories

(45,850)

 

(68,106)

        Prepaid expenses and other assets

(1,021)

 

(1,097)

        Prepaid income taxes

(769)

 

(2,314)

        Accounts payable

9,785

 

14,178

        Accrued liabilities

70

 

9,066

        Lease incentives and other deferred liabilities

12,547

 

12,778

 

Net cash provided by operating activities

11,879

 

1,071

         

CASH FLOWS FROM INVESTING ACTIVITIES:

     

Capital expenditures

(31,902)

 

(28,080)

Acquisition of business, net of cash acquired

-

 

(1,352)

Other

(584)

 

(296)

 

Net cash used in investing activities

(32,486)

 

(29,728)

         

CASH FLOWS FROM FINANCING ACTIVITIES:

     

Proceeds from Term Loan

-

 

820,000

Payments on Term Loan

(17,698)

 

(826,150)

Proceeds from ABL facility

-

 

60,656

Payments on ABL facility

-

 

(20,656)

Deferred financing costs

(1,347)

 

(6,665)

Capital contribution

2,400

 

14,865

Capital contribution to noncontrolling interest

1,595

 

-

 

Net cash (used in) provided by financing activities

(15,050)

 

42,050

         

Effect of exchange rate fluctuations on cash

333

 

204

         

Net (decrease) increase in cash and cash equivalents

(35,324)

 

13,597

           

CASH AND CASH EQUIVALENTS:

     

Beginning of period

77,910

 

32,124

End of period

 

$               42,586

 

$               45,721

 

 

 

EXHIBIT D

               

THE GYMBOREE CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited)

                 

ADJUSTED EBITDA:

               

The Company defines "Adjusted EBITDA" as net income (loss) attributable to The Gymboree Corporation before interest income/expense, income taxes, and depreciation and amortization ("EBITDA") adjusted for other items, including loss on extinguishment of debt, 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 of the Company by investment funds sponsored by Bain Capital Partners, LLC (the "Acquisition").

Adjusted EBITDA is not a performance measure under U.S. generally accepted accounting principles ("GAAP"), 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.

The table below provides a reconciliation of net income (loss) attributable to The Gymboree Corporation to Adjusted EBITDA (in thousands):

                 
   

13 Weeks Ended

 

13 Weeks Ended

 

39 Weeks Ended

 

39 Weeks Ended

   

October 27, 2012

 

October 29, 2011

 

October 27, 2012

 

October 29, 2011

Net income (loss) attributable to The Gymboree Corporation

 

$                 6,121

 

$                (3,048)

 

$                (2,151)

 

$              (20,422)

Reconciling items (a):

               

Interest expense 

 

21,312

 

22,051

 

64,163

 

67,981

Interest income 

 

(32)

 

(28)

 

(116)

 

(115)

Income tax (benefit) expense

 

(776)

 

12,430

 

(11,051)

 

(6,210)

Depreciation and amortization (b)

 

14,727

 

14,086

 

43,467

 

42,703

Non-cash share-based compensation expense 

303

 

1,458

 

3,220

 

4,330

Loss on disposal/impairment on assets

 

827

 

1,241

 

2,090

 

3,501

Loss on extinguishment of debt

 

-

 

-

 

1,237

 

19,563

Gymboree Play & Music franchise transition

 

-

 

7,200

 

-

 

7,200

Acquisition-related adjustments (c)

 

4,409

 

5,174

 

13,288

 

26,865

Adjusted EBITDA

 

$               46,891

 

$               60,564

 

$             114,147

 

$             145,396

                 

(a) Exclude amounts related to noncontrolling interest, which are already excluded from net income (loss) attributable to The Gymboree Corporation.

                 

(b) Includes the following (in thousands):

       

Amortization of intangible assets (impacts SG&A)

 

$                 4,340

 

$                 4,144

 

$               13,020

 

$               12,433

Amortization of below and above market leases (impacts COGS)

 

(406)

 

(508)

 

(1,442)

 

(1,528)

   

$                 3,934

 

$                 3,636

 

$               11,578

 

$               10,905

                 

(c) Include the following (in thousands):

       

Adjustment to cost of goods sold from an increase in the net book value of inventory as a result of purchase accounting (impacts COGS)

 

$                       -

 

$                       -

 

$                       -

 

$               10,731

Additional rent expense recognized due to the elimination of deferred rent and construction allowances in purchase accounting (impacts COGS)

 

2,293

 

2,437

 

6,925

 

7,274

Legal, accounting and sponsor fees, as well as other costs incurred as a result of the Acquisition (impacts SG&A)

 

919

 

1,276

 

2,767

 

4,436

Decrease in net sales due to the elimination of deferred revenue related to the Company's co-branded credit card program in purchase accounting (impacts net sales)

 

1,197

 

1,461

 

3,596

 

4,424

   

$                 4,409

 

$                 5,174

 

$               13,288

 

$               26,865

                 

OTHER NON-GAAP FINANCIAL MEASURES:

             
           

as a % of Total Net Sales

   

13 Weeks Ended

 

13 Weeks Ended

 

13 Weeks Ended

 

13 Weeks Ended

   

October 27, 2012

 

October 29, 2011

 

October 27, 2012

 

October 29, 2011

   

(in thousands)

       

Gross profit as reported

 

$             125,603

 

$             130,845

 

40.3%

 

43.2%

Acquisition-related adjustments

 

3,084

 

3,390

 

1.0%

 

1.1%

Adjusted gross profit excluding Acquisition related adjustments (non-GAAP measure)

 

$             128,687

 

$             134,235

 

41.3%

 

44.3%

                 
           

as a % of Total Net Sales

   

39 Weeks Ended

 

39 Weeks Ended

 

39 Weeks Ended

 

39 Weeks Ended

   

October 27, 2012

 

October 29, 2011

 

October 27, 2012

 

October 29, 2011

   

(in thousands)

       

Gross profit as reported

 

$             336,615

  

$             333,737

 

38.3%

 

40.1%

Acquisition-related adjustments

 

9,079

 

20,901

 

1.0%

 

2.5%

Adjusted gross profit excluding Acquisition related adjustments (non-GAAP measure)

 

$             345,694

 

$             354,638

 

39.4%

 

42.6%

                 
                 
           

as a % of Total Net Sales

   

13 Weeks Ended

 

13 Weeks Ended

 

13 Weeks Ended

 

13 Weeks Ended

   

October 27, 2012

 

October 29, 2011

 

October 27, 2012

 

October 29, 2011

   

(in thousands)

       

SG&A as reported

 

$              (99,016)

 

$              (99,448)

 

-31.8%

 

-32.8%

Acquisition-related adjustments

 

5,259

 

5,420

 

1.7%

 

1.8%

Adjusted SG&A excluding Acquisition related adjustments (non-GAAP measure)

 

$              (93,757)

 

  $              (94,028)

 

-30.1%

 

-31.0%

                 
                 
           

as a % of Total Net Sales

   

39 Weeks Ended

 

39 Weeks Ended

 

39 Weeks Ended

 

39 Weeks Ended

   

October 27, 2012

 

October 29, 2011

 

October 27, 2012

 

October 29, 2011

   

(in thousands)

       

SG&A as reported

 

$            (286,350)

 

$            (272,896)

 

-32.6%

 

-32.8%

Acquisition-related adjustments

 

15,787

 

16,869

 

1.8%

 

2.0%

Adjusted SG&A excluding Acquisition related adjustments (non-GAAP measure)

 

$            (270,563)

 

$            (256,027)

 

-30.8%

 

-30.8%

                 

 

 

 

EXHIBIT E

             

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)

                   
     

13 Weeks Ended October 27, 2012

     

Balance Before 

           
     

Consolidation of VIEs

 

VIEs*

 

Eliminations

 

As Reported

     

(in thousands)

 

Net sales

$                      311,008

 

$   3,123

 

$       (2,613)

 

$     311,518

 

Cost of goods sold, including buying and occupancy expenses

(185,529)

 

(818)

 

432

 

(185,915)

                   
   

Gross profit

125,479

 

2,305

 

(2,181)

 

125,603

 

Selling, general and administrative expenses

(98,785)

 

(2,328)

 

2,097

 

(99,016)

                   
   

Operating income (loss)

26,694

 

(23)

 

(84)

 

26,587

 

Interest income

32

 

10

 

-

 

42

 

Interest expense

(21,312)

 

-

 

-

 

(21,312)

 

Loss on extinguishment of debt

-

 

-

 

-

 

-

 

Other income (expense), net

15

 

71

 

-

 

86

                   
   

Income (loss) before income taxes

5,429

 

58

 

(84)

 

5,403

 

Income tax benefit (expense)

776

 

(1,269)

 

-

 

(493)

                   
   

Net income (loss)

6,205

 

(1,211)

 

(84)

 

4,910

 

Net loss attributable to noncontrolling interest

-

 

1,211

 

-

 

1,211

   

Net income attributable to The Gymboree Corporation

$                          6,205

 

$         -

 

$            (84)

 

$         6,121

                   
                   
     

39 Weeks Ended October 27, 2012

     

Balance Before 

           
     

Consolidation of VIEs

 

VIEs*

 

Eliminations

 

As Reported

     

(in thousands)

 

Net sales

$                      876,430

 

$   8,322

 

$       (6,731)

 

$     878,021

 

Cost of goods sold, including buying and occupancy expenses

(540,091)

 

(2,262)

 

947

 

(541,406)

                   
   

Gross profit

336,339

 

6,060

 

(5,784)

 

336,615

 

Selling, general and administrative expenses

(283,987)

 

(7,949)

 

5,586

 

(286,350)

                   
   

Operating income (loss)

52,352

 

(1,889)

 

(198)

 

50,265

 

Interest income

116

 

30

 

-

 

146

 

Interest expense

(64,163)

 

-

 

-

 

(64,163)

 

Loss on extinguishment of debt

(1,237)

 

-

 

-

 

(1,237)

 

Other (expense) income, net

(72)

 

68

 

-

 

(4)

                   
   

Loss before income taxes

(13,004)

 

(1,791)

 

(198)

 

(14,993)

 

Income tax benefit (expense)

11,051

 

(1,044)

 

-

 

10,007

                   
   

Net loss

(1,953)

 

(2,835)

 

(198)

 

(4,986)

 

Net loss attributable to noncontrolling interest

-

 

2,835

 

-

 

2,835

   

Net loss attributable to The Gymboree Corporation

$                        (1,953)

 

$         -

 

$          (198)

 

$        (2,151)

                   
                   

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEETS

(Unaudited)

     

October 27, 2012

     

Balance Before 

           
     

Consolidation of VIEs

 

VIEs*

 

Eliminations

 

As Reported

     

(in thousands)

Current assets

$                      366,563

 

$ 13,270

 

$       (3,929)

 

$     375,904

Non-current assets

1,737,460

 

1,234

 

-

 

1,738,694

Total assets

$                   2,104,023

 

$ 14,504

 

$       (3,929)

 

$  2,114,598

                   

Current liabilities

$                      183,479

 

$ 10,658

 

$       (3,740)

 

$     190,397

Non-current liabilities

1,474,878

 

80

 

-

 

1,474,958

Total liabilities

$                   1,658,357

 

$ 10,738

 

$       (3,740)

 

$  1,665,355

                   

Total stockholders' equity

445,666

 

-

 

(189)

 

445,477

Noncontrolling interest

-

 

3,766

 

-

 

3,766

Total liabilities and stockholders' equity

$                   2,104,023

 

$ 14,504

 

$       (3,929)

 

$  2,114,598

                   
     

January 28, 2012

     

Balance Before 

           
     

Consolidation of VIEs

 

VIEs*

 

Eliminations

 

As Reported

     

(in thousands)

Current assets

$                      355,073

  

$   6,692

  

$          (983)

  

$     360,782

Non-current assets

1,752,303

 

702

 

-

 

1,753,005

Total assets

$                   2,107,376

 

$   7,394

 

$          (983)

 

$  2,113,787

                   

Current liabilities

$                      187,812

 

$   4,074

 

$          (983)

 

$     190,903

Non-current liabilities

1,474,189

 

56

 

-

 

1,474,245

Total liabilities

$                   1,662,001

 

$   4,130

 

$          (983)

 

$  1,665,148

                   

Total stockholders' equity

445,375

 

-

 

-

 

445,375

Noncontrolling interest

-

 

3,264

 

-

 

3,264

Total liabilities and stockholders' equity

$                   2,107,376

 

$   7,394

 

$          (983)

 

$  2,113,787

                   

*  The Variable Interest Entities ("VIEs") includes the results of Gymboree (China) Commercial and Trading Co. Ltd. and Gymboree (Tianjin) Educational Information Consultation Co. Ltd..  While the Company does not control these two entities, they have been determined to be variable interest entities and their results have been consolidated by the Company.

SOURCE The Gymboree Corporation

###

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