Please wait while we load the requested 8-K report or click the link below:
https://last10k.com/sec-filings/report/1060822/000106082218000025/q32018pressreleaseand8k.htm
October 2022
July 2022
May 2022
May 2022
April 2022
April 2022
March 2022
February 2022
November 2021
October 2021
![]() |
Contact: | |
Sean McHugh | |
Vice President & Treasurer | |
(678) 791-7615 |
• | Net sales $924 million |
• | Diluted EPS $1.53; adjusted diluted EPS $1.61 |
• | Returned $209 million to shareholders through share repurchases and dividends in the first three quarters of fiscal 2018 |
• | Q4 fiscal 2018 outlook: net sales growth of approximately 5%; adjusted diluted EPS growth of approximately 10% |
Fiscal Quarter Ended | Three Fiscal Quarters Ended | ||||||||||||||
September 29, 2018 | September 30, 2017 | September 29, 2018 | September 30, 2017 | ||||||||||||
Net sales | $ | 923,907 | $ | 948,046 | $ | 2,375,890 | $ | 2,372,624 | |||||||
Cost of goods sold | 536,457 | 544,468 | 1,346,005 | 1,350,107 | |||||||||||
Gross profit | 387,450 | 403,578 | 1,029,885 | 1,022,517 | |||||||||||
Royalty income, net | 10,224 | 10,350 | 28,573 | 32,118 | |||||||||||
Selling, general, and administrative expenses | 294,117 | 283,480 | 837,621 | 781,420 | |||||||||||
Operating income | 103,557 | 130,448 | 220,837 | 273,215 | |||||||||||
Interest expense | 9,868 | 8,061 | 25,790 | 22,359 | |||||||||||
Interest income | (84 | ) | (41 | ) | (474 | ) | (259 | ) | |||||||
Other (income) expense, net | (66 | ) | (815 | ) | 528 | (1,580 | ) | ||||||||
Income before income taxes | 93,839 | 123,243 | 194,993 | 252,695 | |||||||||||
Provision for income taxes | 22,069 | 40,927 | 43,487 | 85,992 | |||||||||||
Net income | $ | 71,770 | $ | 82,316 | $ | 151,506 | $ | 166,703 | |||||||
Basic net income per common share | $ | 1.55 | $ | 1.73 | $ | 3.24 | $ | 3.46 | |||||||
Diluted net income per common share | $ | 1.53 | $ | 1.71 | $ | 3.20 | $ | 3.42 | |||||||
Dividend declared and paid per common share | $ | 0.45 | $ | 0.37 | $ | 1.35 | $ | 1.11 |
Fiscal Quarter Ended | Three Fiscal Quarters Ended | |||||||||||||||||||||||||||
September 29, 2018 | % of Total Net Sales | September 30, 2017 | % of Total Net Sales | September 29, 2018 | % of Total Net Sales | September 30, 2017 | % of Total Net Sales | |||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||
U.S. Retail (a) | $ | 459,101 | 49.7 | % | $ | 453,843 | 47.9 | % | $ | 1,244,863 | 52.4 | % | $ | 1,209,143 | 50.9 | % | ||||||||||||
U.S. Wholesale | 338,963 | 36.7 | % | 369,577 | 39.0 | % | 829,272 | 34.9 | % | 879,842 | 37.1 | % | ||||||||||||||||
International (b) | 125,843 | 13.6 | % | 124,626 | 13.1 | % | 301,755 | 12.7 | % | 283,639 | 12.0 | % | ||||||||||||||||
Total net sales | $ | 923,907 | 100.0 | % | $ | 948,046 | 100.0 | % | $ | 2,375,890 | 100.0 | % | $ | 2,372,624 | 100.0 | % | ||||||||||||
Operating income (loss): | % of Segment Net Sales | % of Segment Net Sales | % of Segment Net Sales | % of Segment Net Sales | ||||||||||||||||||||||||
U.S. Retail (c) (d) (k) | $ | 47,139 | 10.3 | % | $ | 55,519 | 12.2 | % | $ | 122,086 | 9.8 | % | $ | 127,441 | 10.5 | % | ||||||||||||
U.S. Wholesale (e) (k) | 67,785 | 20.0 | % | 78,572 | 21.3 | % | 148,395 | 17.9 | % | 184,073 | 20.9 | % | ||||||||||||||||
International (f) (g) (k) | 12,434 | 9.9 | % | 16,726 | 13.4 | % | 20,508 | 6.8 | % | 28,008 | 9.9 | % | ||||||||||||||||
Corporate expenses (h) (i) (j) | (23,801 | ) | (20,369 | ) | (70,152 | ) | (66,307 | ) | ||||||||||||||||||||
Total operating income | $ | 103,557 | 11.2 | % | $ | 130,448 | 13.8 | % | $ | 220,837 | 9.3 | % | $ | 273,215 | 11.5 | % |
(a) | Includes retail store and eCommerce results. |
(b) | Includes international retail, eCommerce, and wholesale sales. |
(c) | Three fiscal quarters ended September 29, 2018 includes insurance recovery of approximately $0.4 million associated with unusual storm-related store closures in 2017. |
(d) | Three fiscal quarters ended September 30, 2017 includes approximately $2.7 million of expenses related to store restructuring costs. |
(e) | Three fiscal quarters ended September 30, 2018 includes $12.8 million of charges related to a customer bankruptcy recorded in the first quarter of fiscal 2018. |
(f) | Includes international licensing income. |
(g) | Fiscal quarter and three fiscal quarters ended September 29, 2018 include approximately $3.5 million in costs associated with changes to the Company's business model in China. |
(h) | Corporate expenses include expenses related to incentive compensation, stock-based compensation, executive management, severance and relocation, finance, office occupancy, information technology, legal, consulting, and audit fees. |
(i) | Includes: 1) acquisition-related costs of approximately $0.8 million and $3.3 million for the fiscal quarter and three fiscal quarters ended September 30, 2017, respectively; and 2) an expense credit of $3.6 million for the fiscal quarter and three fiscal quarters ended September 30, 2017 due to an acquisition contingency fair value adjustment. |
(j) | Includes charges related to the Company's direct sourcing initiative of approximately $0.1 million and $0.3 million for the fiscal quarter and three fiscal quarters ended September 30, 2017, respectively. |
(k) | A total of $0.4 million $0.8 million of certain costs related to inventory acquired from Skip Hop is included in operating income between U.S. Wholesale, U.S. Retail, and International for the fiscal quarter and three fiscal quarters ended September 30, 2017, respectively. |
September 29, 2018 | December 30, 2017 | September 30, 2017 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 123,898 | $ | 178,494 | $ | 105,370 | |||||
Accounts receivable, net | 293,489 | 240,561 | 285,651 | ||||||||
Finished goods inventories | 692,985 | 548,722 | 609,996 | ||||||||
Prepaid expenses and other current assets | 57,000 | 52,935 | 50,956 | ||||||||
Total current assets | 1,167,372 | 1,020,712 | 1,051,973 | ||||||||
Property, plant, and equipment, net of accumulated depreciation of $450,460, $404,173, and $387,041, respectively | 360,718 | 377,924 | 382,014 | ||||||||
Tradenames, net | 365,754 | 365,551 | 365,595 | ||||||||
Goodwill | 229,611 | 230,424 | 234,193 | ||||||||
Customer relationships, net | 45,525 | 47,996 | 46,622 | ||||||||
Other assets | 28,966 | 28,435 | 26,539 | ||||||||
Total assets | $ | 2,197,946 | $ | 2,071,042 | $ | 2,106,936 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 185,285 | $ | 182,114 | $ | 193,878 | |||||
Other current liabilities | 133,021 | 149,134 | 137,114 | ||||||||
Total current liabilities | 318,306 | 331,248 | 330,992 | ||||||||
Long-term debt, net | 798,020 | 617,306 | 687,074 | ||||||||
Deferred income taxes | 87,888 | 84,944 | 138,161 | ||||||||
Other long-term liabilities | 182,547 | 180,128 | 178,878 | ||||||||
Total liabilities | 1,386,761 | 1,213,626 | 1,335,105 | ||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity: | |||||||||||
Preferred stock; par value $.01 per share; 100,000 shares authorized; none issued or outstanding at September 29, 2018, December 30, 2017, and September 30, 2017 | — | — | — | ||||||||
Common stock, voting; par value $.01 per share; 150,000,000 shares authorized; 46,041,329, 47,178,346 and 47,419,316 shares issued and outstanding at September 29, 2018, December 30, 2017 and September 30, 2017, respectively | 460 | 472 | 474 | ||||||||
Accumulated other comprehensive loss | (32,318 | ) | (29,093 | ) | (26,496 | ) | |||||
Retained earnings | 843,043 | 886,037 | 797,853 | ||||||||
Total stockholders' equity | 811,185 | 857,416 | 771,831 | ||||||||
Total liabilities and stockholders' equity | $ | 2,197,946 | $ | 2,071,042 | $ | 2,106,936 |
Three Fiscal Quarters Ended | |||||||
September 29, 2018 | September 30, 2017 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 151,506 | $ | 166,703 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation of property, plant, and equipment | 63,441 | 60,455 | |||||
Amortization of intangible assets | 2,783 | 1,687 | |||||
Adjustment to earn-out liability | — | (3,600 | ) | ||||
Amortization of debt issuance costs | 1,303 | 1,143 | |||||
Stock-based compensation expense | 12,110 | 13,451 | |||||
Unrealized foreign currency exchange gain, net | (68 | ) | (1,154 | ) | |||
Provisions for doubtful accounts receivable from customers | 15,547 | 3,723 | |||||
Loss on disposal of property, plant, and equipment, net of recoveries | 516 | 602 | |||||
Deferred income taxes | (3,173 | ) | (1,059 | ) | |||
Effect of changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | (68,333 | ) | (66,021 | ) | |||
Finished goods inventories | (145,709 | ) | (81,285 | ) | |||
Prepaid expenses and other assets | (5,312 | ) | (18,018 | ) | |||
Accounts payable and other liabilities | (3,253 | ) | 40,879 | ||||
Net cash provided by operating activities | 21,358 | 117,506 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (47,844 | ) | (51,656 | ) | |||
Acquisitions of businesses, net of cash acquired | 96 | (159,365 | ) | ||||
Disposals and recoveries from property, plant, and equipment | 376 | — | |||||
Net cash used in investing activities | (47,372 | ) | (211,021 | ) | |||
Cash flows from financing activities: | |||||||
Payment of debt issuance costs | (890 | ) | (2,138 | ) | |||
Borrowings under secured revolving credit facility | 290,000 | 200,000 | |||||
Payments on secured revolving credit facility | (110,000 | ) | (93,965 | ) | |||
Repurchases of common stock | (145,493 | ) | (150,974 | ) | |||
Dividends paid | (63,114 | ) | (53,443 | ) | |||
Withholdings from vestings of restricted stock | (6,747 | ) | (5,654 | ) | |||
Proceeds from exercises of stock options | 8,732 | 5,140 | |||||
Net cash used in financing activities | (27,512 | ) | (101,034 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (1,070 | ) | 561 | ||||
Net decrease in cash and cash equivalents | (54,596 | ) | (193,988 | ) | |||
Cash and cash equivalents, beginning of period | 178,494 | 299,358 | |||||
Cash and cash equivalents, end of period | $ | 123,898 | $ | 105,370 |
Fiscal Quarter Ended September 29, 2018 | ||||||||||||||||||||||||||||
Gross Margin | % Net Sales | SG&A | % Net Sales | Operating Income | % Net Sales | Net Income | Diluted EPS | |||||||||||||||||||||
As reported (GAAP) (a) | $ | 387.5 | 41.9 | % | $ | 294.1 | 31.8 | % | $ | 103.6 | 11.2 | % | $ | 71.8 | $ | 1.53 | ||||||||||||
China business model change (c) (h) | 2.5 | (1.1 | ) | 3.5 | 3.5 | 0.08 | ||||||||||||||||||||||
As adjusted (b) | $ | 389.9 | 42.2 | % | $ | 293.0 | 31.7 | % | $ | 107.1 | 11.6 | % | $ | 75.3 | $ | 1.61 |
Three Fiscal Quarters Ended September 29, 2018 | ||||||||||||||||||||||||||||
Gross Margin | % Net Sales | SG&A | % Net Sales | Operating Income | % Net Sales | Net Income | Diluted EPS | |||||||||||||||||||||
As reported (GAAP) (a) | $ | 1,029.9 | 43.3 | % | $ | 837.6 | 35.3 | % | $ | 220.8 | 9.3 | % | $ | 151.5 | $ | 3.20 | ||||||||||||
Customer bankruptcy charges (d) (h) | — | (12.8 | ) | 12.8 | 9.8 | 0.21 | ||||||||||||||||||||||
China business model change (c) (h) | 2.5 | (1.1 | ) | 3.5 | 3.5 | 0.07 | ||||||||||||||||||||||
Store restructuring costs (e) (h) | — | 0.4 | (0.4 | ) | (0.3 | ) | (0.01 | ) | ||||||||||||||||||||
As adjusted (b) | $ | 1,032.3 | 43.5 | % | $ | 824.1 | 34.7 | % | $ | 236.8 | 10.0 | % | $ | 164.5 | $ | 3.48 |
Fiscal Quarter Ended September 30, 2017 | ||||||||||||||||||||||||||||
Gross Margin | % Net Sales | SG&A | % Net Sales | Operating Income | % Net Sales | Net Income | Diluted EPS | |||||||||||||||||||||
As reported (GAAP) (a) | $ | 403.6 | 42.6 | % | $ | 283.5 | 29.9 | % | $ | 130.4 | 13.8 | % | $ | 82.3 | $ | 1.71 | ||||||||||||
Store restructuring costs (h) | — | (2.7 | ) | 2.7 | 2.0 | 0.04 | ||||||||||||||||||||||
Acquisition costs (f) (h) | 0.4 | (0.8 | ) | 1.2 | 1.2 | 0.02 | ||||||||||||||||||||||
Direct sourcing initiative (h) | — | (0.1 | ) | 0.1 | 0.1 | — | ||||||||||||||||||||||
Acquisition contingency fair value adjustment (h) | — | 3.6 | (3.6 | ) | (3.6 | ) | (0.07 | ) | ||||||||||||||||||||
As adjusted (b) | $ | 404.0 | 42.6 | % | $ | 283.4 | 29.9 | % | $ | 130.9 | 13.8 | % | $ | 82.0 | $ | 1.70 |
Three Fiscal Quarters Ended September 30, 2017 | ||||||||||||||||||||||||||||
Gross Margin | % Net Sales | SG&A | % Net Sales | Operating Income | % Net Sales | Net Income | Diluted EPS | |||||||||||||||||||||
As reported (GAAP) (a) | $ | 1,022.5 | 43.1 | % | $ | 781.4 | 32.9 | % | $ | 273.2 | 11.5 | % | $ | 166.7 | $ | 3.42 | ||||||||||||
Acquisition costs (f) (h) | 0.8 | (3.3 | ) | 4.1 | 3.3 | 0.07 | ||||||||||||||||||||||
Store restructuring costs (h) | — | (2.7 | ) | 2.7 | 1.7 | 0.04 | ||||||||||||||||||||||
Direct sourcing initiative (g) (h) | — | (0.3 | ) | 0.3 | 0.2 | — | ||||||||||||||||||||||
Acquisition contingency fair value adjustment (h) | — | 3.6 | (3.6 | ) | (3.6 | ) | (0.07 | ) | ||||||||||||||||||||
As adjusted (b) | $ | 1,023.3 | 43.1 | % | $ | 778.6 | 32.8 | % | $ | 276.8 | 11.7 | % | $ | 168.4 | $ | 3.45 |
(a) | Beginning in fiscal 2018, the Company adopted the Financial Accounting Standards Board’s Accounting Standards Codification No. 606, Revenue from Contracts with Customers, and related amendments (“ASC 606”) using the full retrospective adoption method. All periods in fiscal 2017 and fiscal 2016 were amended to reflect these provisions, and retained earnings at January 2, 2016 (beginning of fiscal 2016) were adjusted for the cumulative effect of periods prior to fiscal 2016. The adoption of ASC 606 had no material effect on the Company’s consolidated financial position, results of operations, and cash flows. |
(b) | In addition to the results provided in this earnings release in accordance with GAAP, the Company has provided adjusted, non-GAAP financial measurements that present gross margin, SG&A, operating income, net income, and net income on a diluted share basis excluding the adjustments discussed above. The Company believes these adjustments provide a meaningful comparison of the Company’s results and afford investors a view of |
(c) | Costs associated with changes to the Company's business model in China. |
(d) | Related to the Toys "R" Us bankruptcy. |
(e) | Insurance recovery associated with unusual storm-related store closures. |
(f) | Non-recurring costs related to the Skip Hop and Mexico acquisitions. |
(g) | Costs associated with the Company's direct sourcing initiative, which include severance and relocation. |
(h) | The difference between the impacts on operating income and net income represents the income taxes related to the adjustment item (calculated using the applicable tax rate of the underlying jurisdiction). |
Fiscal Quarter Ended December 30, 2017 | |||||||||||||||||||
Gross Margin | SG&A | Operating Income | Net Income | Diluted EPS | |||||||||||||||
As reported (GAAP) (a) | $ | 460.8 | $ | 325.5 | $ | 146.4 | $ | 136.1 | $ | 2.85 | |||||||||
Special employee compensation provision (c) (h) | — | (21.2 | ) | 21.2 | 15.1 | 0.32 | |||||||||||||
Acquisition costs (d) (h) | 0.4 | (0.1 | ) | 0.5 | 0.3 | 0.01 | |||||||||||||
Store restructuring costs (e) (h) | — | — | — | (0.2 | ) | (0.01 | ) | ||||||||||||
Tax reform (f) | — | — | — | (40.0 | ) | (0.84 | ) | ||||||||||||
As adjusted (b) | $ | 461.2 | $ | 304.3 | $ | 168.0 | $ | 111.4 | $ | 2.33 |
Fiscal Year Ended December 30, 2017 | |||||||||||||||||||
Gross Margin | SG&A | Operating Income | Net Income | Diluted EPS | |||||||||||||||
As reported (GAAP) (a) | $ | 1,483.4 | $ | 1,106.9 | $ | 419.6 | $ | 302.8 | $ | 6.24 | |||||||||
Special employee compensation provision (c) (h) | — | (21.2 | ) | 21.2 | 15.1 | 0.31 | |||||||||||||
Store restructuring costs (e) (h) | — | (2.7 | ) | 2.7 | 1.5 | 0.03 | |||||||||||||
Acquisition costs (d) (h) | 1.2 | 0.2 | 1.0 | 0.2 | — | ||||||||||||||
Direct sourcing initiative (g) (h) | — | (0.3 | ) | 0.3 | 0.2 | — | |||||||||||||
Tax reform (f) (h) | — | — | — | (40.0 | ) | (0.83 | ) | ||||||||||||
As adjusted (b) | $ | 1,484.6 | $ | 1,082.9 | $ | 444.8 | $ | 279.8 | $ | 5.77 |
(a) | Beginning in fiscal 2018, the Company adopted the Financial Accounting Standards Board’s Accounting Standards Codification No. 606, Revenue from Contracts with Customers, and related amendments (“ASC 606”) using the full retrospective adoption method. All periods in fiscal 2017 and fiscal 2016 were amended to reflect these provisions, and retained earnings at January 2, 2016 (beginning of fiscal 2016) were adjusted for the cumulative effect of periods prior to fiscal 2016. The adoption of ASC 606 had no material effect on the Company’s consolidated financial position, results of operations, and cash flows. |
(b) | In addition to the results provided in this earnings release in accordance with GAAP, the Company has provided adjusted, non-GAAP financial measurements that present SG&A, operating income, net income, and net income on a diluted share basis excluding the adjustments discussed above. The Company believes these adjustments provide a meaningful comparison of the Company’s results and afford investors a view of what management considers to be the Company's core performance. The adjusted, non-GAAP financial measurements included in this earnings release should not be considered as an alternative to net income or as any other measurement of performance derived in accordance with GAAP. The adjusted, non-GAAP financial measurements are presented for informational purposes only and are not necessarily indicative of the Company’s future condition or results of operations. |
(c) | Special employee compensation provided as a result of the significant benefit related to the enactment of the Tax Cuts and Jobs Act of 2017. |
(d) | Non-recurring costs related to the Skip Hop and Mexico acquisitions. |
(e) | Amount for fiscal quarter ended December 30, 2017 reflects tax credit received for certain payroll costs incurred during unusual storm-related closures. Amount for fiscal year ended December 30, 2017 reflects net costs arising from unusual storm damage and related store closures. |
(f) | Reflects the $40 million net benefit of the Tax Cuts and Jobs Act of 2017. |
(g) | Costs associated with the Company's direct sourcing initiative, which include severance and relocation. |
(h) | The difference between the impacts on operating income and net income represents the income taxes related to the adjustment item (calculated using the applicable tax rate of the underlying jurisdiction). |
Fiscal Quarter Ended | Three Fiscal Quarters Ended | ||||||||||||||
September 29, 2018 | September 30, 2017 | September 29, 2018 | September 30, 2017 | ||||||||||||
Weighted-average number of common and common equivalent shares outstanding: | |||||||||||||||
Basic number of common shares outstanding | 45,990,039 | 47,303,074 | 46,399,746 | 47,829,794 | |||||||||||
Dilutive effect of equity awards | 490,283 | 541,325 | 538,422 | 549,213 | |||||||||||
Diluted number of common and common equivalent shares outstanding | 46,480,322 | 47,844,399 | 46,938,168 | 48,379,007 | |||||||||||
As reported on a GAAP Basis: | |||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
Basic net income per common share: | |||||||||||||||
Net income | $ | 71,770 | $ | 82,316 | $ | 151,506 | $ | 166,703 | |||||||
Income allocated to participating securities | (540 | ) | (651 | ) | (1,142 | ) | (1,311 | ) | |||||||
Net income available to common shareholders | $ | 71,230 | $ | 81,665 | $ | 150,364 | $ | 165,392 | |||||||
Basic net income per common share | $ | 1.55 | $ | 1.73 | $ | 3.24 | $ | 3.46 | |||||||
Diluted net income per common share: | |||||||||||||||
Net income | $ | 71,770 | $ | 82,316 | 151,506 | 166,703 | |||||||||
Income allocated to participating securities | (536 | ) | (645 | ) | (1,134 | ) | (1,301 | ) | |||||||
Net income available to common shareholders | $ | 71,234 | $ | 81,671 | 150,372 | 165,402 | |||||||||
Diluted net income per common share | $ | 1.53 | $ | 1.71 | $ | 3.20 | $ | 3.42 | |||||||
As adjusted (a): | |||||||||||||||
Basic net income per common share: | |||||||||||||||
Net income | $ | 75,301 | $ | 82,000 | $ | 164,525 | $ | 168,368 | |||||||
Income allocated to participating securities | (567 | ) | (649 | ) | (1,244 | ) | (1,325 | ) | |||||||
Net income available to common shareholders | $ | 74,734 | $ | 81,351 | $ | 163,281 | $ | 167,043 | |||||||
Basic net income per common share | $ | 1.63 | $ | 1.72 | $ | 3.52 | $ | 3.49 | |||||||
Diluted net income per common share: | |||||||||||||||
Net income | $ | 75,301 | $ | 82,000 | $ | 164,525 | $ | 168,368 | |||||||
Income allocated to participating securities | (563 | ) | (643 | ) | (1,235 | ) | (1,315 | ) | |||||||
Net income available to common shareholders | $ | 74,738 | $ | 81,357 | $ | 163,290 | $ | 167,053 | |||||||
Diluted net income per common share | $ | 1.61 | $ | 1.70 | $ | 3.48 | $ | 3.45 |
(a) | In addition to the results provided in this earnings release in accordance with GAAP, the Company has provided adjusted, non-GAAP financial measurements that present per share data excluding the adjustments discussed above. The Company has excluded $3.5 million and $13.0 million in after-tax expenses from these results for the fiscal quarter and three fiscal quarters ended September 29, 2018, respectively. The Company has excluded $0.3 million in after-tax income and $1.7 million in after-tax expenses from these results for the fiscal quarter and three fiscal quarters ended September 30, 2017, respectively. |
Fiscal Quarter Ended | Three Fiscal Quarters Ended | Four Fiscal Quarters Ended | ||||||||||||||||||
September 29, 2018 | September 30, 2017 | September 29, 2018 | September 30, 2017 | September 29, 2018 | ||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Net income | $ | 71.8 | $ | 82.3 | $ | 151.5 | $ | 166.7 | $ | 287.7 | ||||||||||
Interest expense | 9.9 | 8.1 | 25.8 | 22.4 | 33.5 | |||||||||||||||
Interest income | (0.1 | ) | — | (0.5 | ) | (0.3 | ) | (0.6 | ) | |||||||||||
Income tax expense | 22.1 | 40.9 | 43.5 | 86.0 | 45.7 | |||||||||||||||
Depreciation and amortization | 22.4 | 21.5 | 66.2 | 62.1 | 88.5 | |||||||||||||||
EBITDA | $ | 126.0 | $ | 152.8 | $ | 286.5 | $ | 336.9 | $ | 454.8 | ||||||||||
Adjustments to EBITDA | ||||||||||||||||||||
Special employee compensation provision (a) | $ | — | $ | — | $ | — | $ | — | $ | 21.2 | ||||||||||
Customer bankruptcy charges (b) | — | — | 12.8 | — | 12.8 | |||||||||||||||
China business model change (c) | 3.5 | — | 3.5 | — | 3.5 | |||||||||||||||
Acquisition-related costs (d) | — | 1.2 | — | 4.1 | 0.5 | |||||||||||||||
Store restructuring costs (e) | — | 2.7 | (0.4 | ) | 2.7 | (0.5 | ) | |||||||||||||
Direct sourcing initiative (f) | — | 0.1 | — | 0.3 | — | |||||||||||||||
Acquisition contingency fair value adjustment (g) | — | (3.6 | ) | — | (3.6 | ) | — | |||||||||||||
Adjusted EBITDA | $ | 129.5 | $ | 153.2 | $ | 302.5 | $ | 340.5 | $ | 492.3 |
(a) | Special employee compensation provision related to significant benefit related to the enactment of the Tax Cuts and Jobs Act of 2017; includes $1.2 million in related payroll taxes. |
(b) | Related to the Toys "R" Us bankruptcy. |
(c) | Costs associated with changes to the Company's business model in China. |
(d) | Non-recurring costs incurred in connection with the Skip Hop and Mexico business acquisitions. |
(e) | Net costs arising from unusual storm damage and related store closures. |
(f) | Costs associated with the Company's direct sourcing initiative, which include severance and relocation. |
(g) | Revaluation of the contingent consideration liability associated with the Company's acquisition of Skip Hop. |
Fiscal Quarter Ended | ||||||||||||||||||||||
Reported Net Sales September 29, 2018 | Impact of Foreign Currency Translation | Constant-Currency Net Sales September 29, 2018 | Reported Net Sales September 30, 2017 | Reported Net Sales % Change | Constant-Currency Net Sales % Change | |||||||||||||||||
Consolidated net sales | $ | 923.9 | $ | (4.1 | ) | $ | 928.0 | $ | 948.0 | (2.5 | )% | (2.1 | )% | |||||||||
International segment net sales | $ | 125.8 | $ | (4.1 | ) | $ | 129.9 | $ | 124.6 | 1.0 | % | 4.2 | % |
Three Fiscal Quarters Ended | ||||||||||||||||||||||
Reported Net Sales September 29, 2018 | Impact of Foreign Currency Translation | Constant-Currency Net Sales September 29, 2018 | Reported Net Sales September 30, 2017 | Reported Net Sales % Change | Constant-Currency Net Sales % Change | |||||||||||||||||
Consolidated net sales | $ | 2,375.9 | $ | 1.3 | $ | 2,374.6 | $ | 2,372.6 | 0.1 | % | 0.1 | % | ||||||||||
International segment net sales | $ | 301.8 | $ | 1.3 | $ | 300.5 | $ | 283.6 | 6.4 | % | 5.9 | % |
Please wait while we load the requested 8-K report or click the link below:
https://last10k.com/sec-filings/report/1060822/000106082218000025/q32018pressreleaseand8k.htm
Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were removed , added and changed by Carters Inc.
Carters Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2018 10-K Annual Report includes:
Material Contracts, Statements, Certifications & more
Carters Inc provided additional information to their SEC Filing as exhibits
Ticker: CRIEvents:
CIK: 1060822
Form Type: 8-K Corporate News
Accession Number: 0001060822-18-000025
Submitted to the SEC: Thu Oct 25 2018 6:28:55 AM EST
Accepted by the SEC: Thu Oct 25 2018
Period: Thursday, October 25, 2018
Industry: Apparel And Other Finishd Prods Of Fabrics And Similar Matl