The Gymboree Corporation Reports Third Quarter 2013 Results

SAN FRANCISCO - Dec. 12, 2013 // PRNewswire // - The Gymboree Corporation (the "Company") today reported consolidated financial results for its quarter ended November 2, 2013.

Net sales for the quarter were $309.8 million, a decrease of 0.5% compared to $311.5 million in net sales for the same quarter last year. Comparable sales for the quarter decreased 4% versus the same quarter last year.

Gross profit for the quarter was $123.5 million, or 39.8% of net sales, compared to $125.6 million, or 40.3% of net sales, for the same quarter last year. Excluding purchase accounting adjustments of $2.6 million and $3.1 million for the third quarter of this year and last year, respectively, relating to the November 2010 acquisition of the Company by Giraffe Holding, Inc., an entity majority-owned by investment funds sponsored by Bain Capital Partners, LLC (the "Acquisition"), gross profit was $126.0 million, or 40.7% of net sales, and $128.7 million, or 41.3% of net sales, for the third quarter of this year and last year, respectively (see Exhibit D).

SG&A expense for the quarter was $111.2 million, or 35.9% of net sales, compared to $99.0 million, or 31.8% of net sales, in the same quarter last year. Results for the third quarter of this year and last year include $2.1 million and $5.3 million, respectively, of additional costs resulting from the Acquisition, including the effect of purchase accounting adjustments, and other adjustments. Excluding these expenses, SG&A expense for the third quarter of this year and last year was $109.1 million, or 35.2% of net sales, and $93.8 million, or 30.1% of net sales, respectively (see Exhibit D).

Net loss for the quarter was $24.4 million compared to net income of $4.9 million for the same quarter last year.

Net loss attributable to The Gymboree Corporation before interest, income taxes and depreciation and amortization, adjusted for other items ("Adjusted EBITDA"), decreased 27.7% to $33.9 million for the quarter compared to $46.9 million for the same quarter last year. Adjusted EBITDA is not a performance measure under GAAP. See "Non-GAAP Financial Measures" below. A reconciliation of net income (loss) attributable to The Gymboree Corporation to Adjusted EBITDA presented herein is included in Exhibit D of this press release.

Balance Sheet Highlights

There were $24.0 million in borrowings outstanding under the ABL as of the end of the quarter and approximately $165.9 million of undrawn availability.

Cash at the end of the quarter was $19.1 million compared to $42.6 million at the end of the same quarter last year, reflecting the pay down of approximately $25 million of the term loan and the repurchase of $54.0 million in notes since the end of the third quarter last year.

Capital expenditures for the fiscal year to date were $35.2 million, with the majority of the cash used to fund the opening of 70 new stores during the year.

Inventory balances at the end of the quarter were $222.4 million compared to $255.7 million at the end of the same quarter last year. Compared to the same quarter last year, inventory cost on a per square foot basis was down 20% this quarter, while inventory units on a per square foot basis were down mid teens in the quarter.

Fiscal 2013 Business Outlook

Full Year

For the fiscal year ending February 1, 2014, the Company now expects Adjusted EBITDA to be in the range of $125 million to $130 million. Comparable sales are now expected to be down mid single digits compared to last year. Based on this guidance, the Company still expects to generate sufficient cash flow to service its debt and invest in the business to drive long term growth.

New Stores

The Company plans to open approximately 85 new stores during the fiscal year, with the majority being Crazy 8 stores.

Capital Expenditures

The Company anticipates capital expenditures of approximately $50 million during the fiscal year.

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 frequently used 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 loss attributable to The Gymboree Corporation.

Webcast and Conference Call Information

The Gymboree Corporation will host a conference call to discuss its third quarter fiscal 2013 results today at 1:00 p.m. Pacific Time/4:00 p.m. Eastern Time. To listen live over the internet, please log on to www.gymboree.com, click on "Company Information" at the bottom of the page, go to "Investors & Media" and then "Conference Calls & Webcasts." A replay of the call will be available two hours after the broadcast through midnight PT, Thursday, December 19, 2013, at 855-859-2056, passcode 10055574.

About The Gymboree Corporation

The Gymboree Corporation's specialty retail brands offer unique, high-quality products delivered with personalized customer service. As of November 2, 2013, the Company operated a total of 1,319 retail stores: 633 Gymboree® stores (583 in the United States, 43 in Canada, 1 in Puerto Rico and 6 in Australia), 164 Gymboree Outlet stores (162 in the United States and 2 in Puerto Rico), 139 Janie and Jack® shops and 383 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 708 franchised and Company-operated Gymboree Play & Music® centers in the United States and 41 other countries.

Forward-Looking Statements

The foregoing financial information for the third fiscal quarter ended November 2, 2013 is unaudited and subject to quarter-end and year-end adjustments. This press release contains forward-looking statements, including those relating to The Gymboree Corporation's anticipated future financial performance, such as those relating to its comparable sales growth, Adjusted EBITDA, capital expenditures, cash flows and new store openings. 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, holiday spending levels and patterns, 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 February 2, 2013 filed with the Securities and Exchange Commission ("SEC") on May 2, 2013, and its subsequent SEC filings. 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

 

39 Weeks Ended

         

November 2, 2013

 

October 27, 2012

 

November 2, 2013

 

October 27, 2012

                                
         

(in thousands)

Net sales:

                 
 

Retail

   

$                 297,352

 

$                 299,965

 

$                 857,173

 

$                 847,195

 

Gymboree Play & Music 

   

6,821

 

6,390

 

19,409

 

17,981

 

Retail Franchise

   

5,665

 

5,163

 

16,955

 

12,845

   

Total net sales

   

309,838

 

311,518

 

893,537

 

878,021

 

Cost of goods sold, including buying and occupancy expenses

   

(186,370)

 

(185,915)

 

(542,010)

 

(541,406)

   

Gross profit

   

123,468

 

125,603

 

351,527

 

336,615

 

Selling, general and administrative expenses

   

(111,199)

 

(99,016)

 

(317,351)

 

(286,350)

   

Operating income

   

12,269

 

26,587

 

34,176

 

50,265

 

Interest income

   

41

 

42

 

143

 

146

 

Interest expense

   

(20,483)

 

(21,312)

 

(61,352)

 

(64,163)

 

Loss on extinguishment of debt

   

(834)

 

-

 

(834)

 

(1,237)

 

Other income (expense), net

   

853

 

86

 

751

 

(4)

   

(Loss) income before income taxes

   

(8,154)

 

5,403

 

(27,116)

 

(14,993)

 

Income tax (expense) benefit 

   

(16,244)

 

(493)

 

(9,455)

 

10,007

   

Net (loss) income

   

(24,398)

 

4,910

 

(36,571)

 

(4,986)

 

Net loss attributable to noncontrolling interest

   

413

 

1,211

 

700

 

2,835

   

Net (loss) income attributable to The Gymboree Corporation

   

$                  (23,985)

 

$                     6,121

 

$                  (35,871)

 

$                    (2,151)

                       
                       
                       

EXHIBIT B

               

THE GYMBOREE CORPORATION

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(Unaudited)

 
                   
     

November 2, 2013

 

February 2, 2013

 

October 27, 2012

   
     

(in thousands)

 

Current assets

                     
 

Cash and cash equivalents

 

$                  19,079

 

$               33,328

 

$                42,586

   
 

Accounts receivable

 

32,485

 

27,542

 

27,232

   
 

Merchandise inventories

 

222,414

 

197,935

 

255,722

   
 

Prepaid income taxes

 

1,815

 

2,903

 

5,165

   
 

Prepaid expenses

 

19,986

 

17,341

 

6,539

   
 

Deferred income taxes

 

11,721

 

31,383

 

38,660

   
 

    Total current assets

 

307,500

 

310,432

 

375,904

   
                   

Property and equipment, net

 

209,267

 

205,325

 

205,486

   

Goodwill

 

898,983

 

898,966

 

899,097

   

Other intangible assets

 

576,744

 

580,641

 

585,277

   

Deferred financing costs

 

34,067

 

40,040

 

43,018

   

Other assets

 

12,604

 

7,809

 

5,816

   
 

    Total assets

 

$             2,039,165

 

$          2,043,213

 

$           2,114,598

   
                   

Current liabilities

               
 

Accounts payable

 

$                  87,323

 

$               90,133

 

$                88,824

   
 

Accrued liabilities

 

113,472

 

90,443

 

101,573

   
 

Line of credit

 

24,000

 

-

 

-

   
 

Current obligation under capital lease

 

492

 

-

 

-

   
 

    Total current liabilities

 

225,287

 

180,576

 

190,397

   
                   

Long-term liabilities

               
 

Long-term debt

 

1,113,668

 

1,138,455

 

1,192,383

   
 

Long-term obligation under capital lease

 

3,532

 

-

 

-

   
 

Lease incentives and other deferred liabilities

 

49,772

 

40,104

 

38,955

   
 

Unrecognized tax benefits

 

12,416

 

7,848

 

7,685

   
 

Deferred income taxes

 

217,908

 

234,593

 

235,935

   
 

    Total liabilities

 

1,622,583

 

1,601,576

 

1,665,355

   
                   

Stockholders' equity

 

416,582

 

441,637

 

449,243

   
 

Total liabilities and stockholders' equity

 

$             2,039,165

 

$          2,043,213

 

$           2,114,598

   
                   

EXHIBIT C

           

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

           
 

39 Weeks Ended

   
 

November 2, 2013

 

October 27, 2012

   
 

(in thousands)

   

CASH FLOWS FROM OPERATING ACTIVITIES:

         

Net loss

$                 (36,571)

    

$                (4,986)

   

Adjustments to reconcile net loss to net cash

         

  provided by operating activities:

         
 

Loss on extinguishment of debt

834

 

1,237

   
 

Depreciation and amortization

34,825

 

43,776

   
 

Amortization of deferred financing costs and accretion of original issue discount

5,112

 

5,216

   
 

Interest rate cap contracts - adjustment to market

742

 

182

   
 

Loss on disposal/impairment of assets

5,662

 

2,090

   
 

Deferred income taxes

2,969

 

(12,986)

   
 

Share-based compensation expense

4,417

 

3,220

   
 

Other

40

 

1,685

   
 

Change in assets and liabilities:

         
 

        Accounts receivable

4,382

 

(2,317)

   
 

        Merchandise inventories

(24,264)

 

(45,850)

   
 

        Prepaid income taxes

1,223

 

(769)

   
 

        Prepaid expenses and other assets

(5,144)

 

(1,021)

   
 

        Accounts payable

(2,807)

 

9,785

   
 

        Accrued liabilities

17,344

 

70

   
 

        Lease incentives and other deferred liabilities

14,522

 

12,547

   
 

Net cash provided by operating activities

23,286

 

11,879

   
             

CASH FLOWS FROM INVESTING ACTIVITIES:

         

Capital expenditures

(35,213)

 

(31,902)

   

Other

(235)

 

(584)

   
 

Net cash used in investing activities

(35,448)

 

(32,486)

   
             

CASH FLOWS FROM FINANCING ACTIVITIES:

         

Payments on Term Loan

-

 

(17,698)

   

Proceeds from ABL facility

79,000

 

-

   

Payments on ABL facility

(55,000)

 

-

   

Repurchase of notes

(24,760)

 

-

   

Payments of deferred financing costs

-

 

(1,347)

   

Payments on capital lease

(78)

 

-

   

Investment by affiliate of Parent

-

 

2,400

   

Dividend payment to Parent

(7,475)

 

-

   

Capital contribution received by noncontrolling interest

6,506

 

1,595

   
 

Net cash used in financing activities

(1,807)

 

(15,050)

   

Effect of exchange rate fluctuations on cash and cash equivalents

(280)

 

333

   

Net decrease in cash and cash equivalents

(14,249)

 

(35,324)

   

CASH AND CASH EQUIVALENTS:

         

Beginning of period

33,328

 

77,910

   

End of period

$                  19,079

 

$                42,586

   
             

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 tax expense (benefit), and depreciation and amortization ("EBITDA") adjusted for other items, including gain or loss on extinguishment of debt, non-cash share-based compensation, loss on disposal/impairment of assets, 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"), non-recurring and unusual items. 

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 loss attributable to The Gymboree Corporation to Adjusted EBITDA (in thousands):

                 
                 
 

13 Weeks Ended

 

39 Weeks Ended

 
 

November 2, 2013

 

October 27, 2012

 

November 2, 2013

 

October 27, 2012

 
                 

Net (loss) income attributable to The Gymboree Corporation

$                 (23,985)

  

$                  6,121

  

$                 (35,871)

  

$                 (2,151)

 

Reconciling items (a):

               

     Interest expense 

20,483

 

21,312

 

61,352

 

64,163

 

     Interest income 

(41)

 

(32)

 

(114)

 

(116)

 

     Income tax expense (benefit)

15,917

 

(776)

 

9,202

 

(11,051)

 

     Depreciation and amortization (b)

10,874

 

14,727

 

34,156

 

43,467

 

     Non-cash share-based compensation expense 

1,443

 

303

 

4,417

 

3,220

 

     Loss on disposal/impairment on assets

3,712

 

827

 

5,583

 

2,090

 

     Loss on extinguishment of debt

834

 

-

 

834

 

1,237

 

     Other (c)

775

 

-

 

3,238

 

-

 

     Acquisition-related adjustments (d)

3,890

 

4,409

 

11,882

 

13,288

 

Adjusted EBITDA

$                  33,902

 

$                46,891

 

$                  94,679

 

$              114,147

 
                 

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

 
                 

(b) Includes the following (in thousands):

               

Amortization of intangible assets (impacts SG&A)

$                       383

 

$                  4,340

 

$                    3,025

 

$                13,020

 

Amortization of below and above market leases (impacts COGS)

(348)

 

(406)

 

(1,110)

 

(1,442)

 
 

$                         35

 

$                  3,934

 

$                    1,915

 

$                11,578

 
                 

(c) Other is comprised of a non-recurring change in reserves, restructuring charges, and executive-related hiring expenses.

 
                 

(d) Includes the following (in thousands):

               

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

$                    2,217

 

$                  2,293

 

$                    6,675

 

$                  6,925

 
                 

Sponsor fees, legal and  accounting,  as well as other costs incurred as a result of the Acquisition or refinancing (impacts SG&A)

974

 

919

 

3,069

 

2,767

 
                 

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)

699

 

1,197

 

2,138

 

3,596

 
 

$                    3,890

 

$                  4,409

 

$                  11,882

 

$                13,288

 
                 
                 

OTHER NON-GAAP FINANCIAL MEASURES:

               
                 
 

13 Weeks Ended

 

39 Weeks Ended

 
 

November 2, 2013

 

October 27, 2012

 

November 2, 2013

 

October 27, 2012

 
                 
                 

Gross profit as reported

$                123,468

 

$              125,603

 

$                351,527

 

$              336,615

 

Acquisition-related adjustments

2,568

 

3,084

 

7,703

 

9,079

 

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

$                126,036

 

$              128,687

 

$                359,230

 

$              345,694

 
                 
                 
 

13 Weeks Ended

 

39 Weeks Ended

 
 

November 2, 2013

 

October 27, 2012

 

November 2, 2013

 

October 27, 2012

 
                 
                 

SG&A as reported

$               (111,199)

 

$               (99,016)

 

$               (317,351)

 

$             (286,350)

 
                 

Acquisition-related adjustments

1,357

 

5,259

 

6,094

 

15,787

 

Other adjustments

775

 

-

 

3,238

 

-

 
 

2,132

 

5,259

 

9,332

 

15,787

 

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

$               (109,067)

 

$               (93,757)

 

$               (308,019)

 

$             (270,563)

 
                 

EXHIBIT E

               

THE GYMBOREE CORPORATION

 

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

 

(Unaudited)

 
                     
     

13 Weeks Ended November 2, 2013

 
     

Balance Before 

                      
     

Consolidation of VIEs

 

VIEs*

 

Eliminations

 

As Reported

 
     

(in thousands)

 
 

Net sales

$                     305,639

 

$                          5,395

 

$                    (1,196)

 

$               309,838

 
 

Cost of goods sold, including buying and occupancy expenses

(185,116)

 

(1,297)

 

43

 

(186,370)

 
   

Gross profit

120,523

 

4,098

 

(1,153)

 

123,468

 
 

Selling, general and administrative expenses

(107,471)

 

(4,901)

 

1,173

 

(111,199)

 
   

Operating income (loss)

13,052

 

(803)

 

20

 

12,269

 
 

Other non operating (expense) income, net

(21,140)

 

717

 

-

 

(20,423)

 
   

Loss before income taxes

(8,088)

 

(86)

 

20

 

(8,154)

 
 

Income tax expense

(15,917)

 

(327)

 

-

 

(16,244)

 
   

Net loss

(24,005)

 

(413)

 

20

 

(24,398)

 
 

Net loss attributable to noncontrolling interest

-

 

413

 

-

 

413

 
   

Net loss attributable to The Gymboree Corporation

$                      (24,005)

 

$                                -

 

$                          20

 

$               (23,985)

 
                     
                     
     

39 Weeks Ended Novermber 2, 2013

 
     

Balance Before 

             
     

Consolidation of VIEs

 

VIEs*

 

Eliminations

 

As Reported

 
     

(in thousands)

 
 

Net sales

$                     882,264

 

$                        15,027

 

$                    (3,754)

 

$               893,537

 
 

Cost of goods sold, including buying and occupancy expenses

(538,591)

 

(3,868)

 

449

 

(542,010)

 
   

Gross profit

343,673

 

11,159

 

(3,305)

 

351,527

 
 

Selling, general and administrative expenses

(308,233)

 

(12,477)

 

3,359

 

(317,351)

 
   

Operating income (loss)

35,440

 

(1,318)

 

54

 

34,176

 
 

Other non operating (expense) income, net

(62,163)

 

871

 

-

 

(61,292)

 
   

Loss before income taxes

(26,723)

 

(447)

 

54

 

(27,116)

 
 

Income tax expense

(9,202)

 

(253)

 

-

 

(9,455)

 
   

Net loss

(35,925)

 

(700)

 

54

 

(36,571)

 
 

Net loss attributable to noncontrolling interest

-

 

700

 

-

 

700

 
   

Net loss attributable to The Gymboree Corporation

$                      (35,925)

 

$                                -

 

$                          54

 

$               (35,871)

 
                     
                     
     

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

 
 

Other non operating (expense) income, net

(21,265)

 

81

 

-

 

(21,184)

 
   

Income 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

 
 

Other non operating (expense) income, net

(65,356)

 

98

 

-

 

(65,258)

 
   

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)

 

EXHIBIT E (continued)

               

THE GYMBOREE CORPORATION

 

CONDENSED CONSOLIDATING BALANCE SHEETS

 

(Unaudited)

 
     

November 2, 2013

 
     

Balance Before 

                   
     

Consolidation of VIEs

    

VIEs*

 

Eliminations

 

As Reported

 
     

(in thousands)

 

Current assets

$                     287,541

 

$                        21,429

 

$                    (1,470)

 

$               307,500

 

Non-current assets

1,727,065

 

4,599

 

1

 

1,731,665

 

Total assets

$                  2,014,606

 

$                        26,028

 

$                    (1,469)

 

$            2,039,165

 
                     

Current liabilities

$                     218,665

 

$                          7,916

 

$                    (1,294)

 

$               225,287

 

Non-current liabilities

1,397,034

 

262

 

-

 

1,397,296

 

Total liabilities

$                  1,615,699

 

$                          8,178

 

$                    (1,294)

 

$            1,622,583

 

Total stockholders' equity

398,907

 

-

 

(175)

 

398,732

 

Noncontrolling interest

-

 

17,850

 

-

 

17,850

 

Total liabilities and stockholders' equity

$                  2,014,606

 

$                        26,028

 

$                    (1,469)

 

$            2,039,165

 
                     
     

February 2, 2013

 
     

Balance Before 

             
     

Consolidation of VIEs

 

VIEs*

 

Eliminations

 

As Reported

 
     

(in thousands)

 

Current assets

$                     303,344

 

$                        11,553

 

$                    (4,465)

 

$               310,432

 

Non-current assets

1,730,865

 

1,916

 

-

 

1,732,781

 

Total assets

$                  2,034,209

 

$                        13,469

 

$                    (4,465)

 

$            2,043,213

 
                     

Current liabilities

$                     175,555

 

$                          9,244

 

$                    (4,223)

 

$               180,576

 

Non-current liabilities

1,420,870

 

130

 

-

 

1,421,000

 

Total liabilities

$                  1,596,425

 

$                          9,374

 

$                    (4,223)

 

$            1,601,576

 

Total stockholders' equity

437,784

 

-

 

(242)

 

437,542

 

Noncontrolling interest

-

 

4,095

 

-

 

4,095

 

Total liabilities and stockholders' equity

$                  2,034,209

 

$                        13,469

 

$                    (4,465)

 

$            2,043,213

 
                     
     

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

 
                   

* 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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