Unassociated Document
 

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K

Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):  April 25, 2012

THE GYMBOREE CORPORATION
(Exact Name of Registrant as Specified in its Charter)

Delaware
000-21250
94-2615258
     
(State or Other Jurisdiction of
Incorporation)
(Commission File Number)
(I.R.S. Employer
Identification No.)

500 Howard Street, San Francisco, CA
94105
(Address of Principal Executive Offices, Including Zip Code)

(415) 278-7000
(Registrant’s Telephone Number, Including Area Code)
 

   
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 
Item 2.02
Results of Operations and Financial Condition.
 

On April 25, 2012, The Gymboree Corporation issued an earnings release announcing its financial results for the fourth quarter and the fiscal year ended January 28, 2012.  A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein. 


Item 9.01 
Financial Statements and Exhibits.

(d) Exhibits.
 
No.
  
Description
     
99.1
  
Earnings release of The Gymboree Corporation issued dated April 25, 2012.
 
 
 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
THE GYMBOREE CORPORATION
Date: April 25, 2012
   
 
By:
/s/ LYNDA G. GUSTAFSON
 
 
Name:  Lynda G. Gustafson
 
 
Title:    Vice President and Corporate Controller
 
 
 

EXHIBIT INDEX
 
No. 
  
Description 
     
99.1
  
Earnings release of The Gymboree Corporation dated April 25, 2012.
 
 

EXHIBIT 99.1

  

FOR IMMEDIATE RELEASE: Investor Relations contact:
  Christian Janzen
  Tel: 415-278-7933
  investor_relations@gymboree.com
   
  Media Relations contact:
  Tel: 415-278-7493
  media_relations@gymboree.com

 

 

The Gymboree Corporation Reports Fourth Quarter and Fiscal Year 2011 Results

 

San Francisco, Calif., April 25, 2012 – 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%