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): September 5, 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 September 5, 2012, The Gymboree Corporation issued an earnings release announcing its financial results for the second fiscal quarter ended July 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 September 5, 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: September 5, 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 September 5, 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 Second Fiscal Quarter 2012 Results

 

San Francisco, Calif., September 5, 2012 – The Gymboree Corporation (the “Company”) today reported consolidated financial results for the second fiscal quarter ended July 28, 2012.

 

For the second quarter of the fiscal year ending February 2, 2013 (“fiscal 2012”), net sales were $268.8 million, an increase of 3.8% compared to $259.0 million in net sales for the second quarter of the fiscal year ended January 28, 2012 (“fiscal 2011”). Comparable store sales for the second quarter of fiscal 2012 decreased 1% compared to the second quarter of fiscal 2011.

 

Gross profit for the second quarter of fiscal 2012 was $89.2 million, or 33.2% of net sales, compared to $92.0 million, or 35.5% of net sales, for the second quarter of fiscal 2011. Excluding purchase accounting adjustments of $3.0 million and $3.4 million for the second quarter of fiscal 2012 and the second 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 $92.2 million, or 34.3% of net sales, and $95.4 million, or 36.8% of net sales, for the second quarter of fiscal 2012 and the second quarter of fiscal 2011, respectively (see Exhibit D).

 

SG&A expense for the second quarter of fiscal 2012 was $95.6 million, or 35.6% of net sales, compared to $88.9 million, or 34.3% of net sales, in the second quarter of the prior year. Results for the second quarter of fiscal 2012 and fiscal 2011 include $5.3 million and $5.3 million, respectively, of additional costs resulting from the Acquisition, including the effect of purchase accounting adjustments. Excluding these charges, adjusted SG&A expense for the second quarter of fiscal 2012 and fiscal 2011 was $90.3 million, or 33.6% of net sales, and $83.5 million, or 32.3% of net sales, respectively, which represents an increase of 130 basis points over fiscal 2011 (see Exhibit D).

 

Net loss for the second quarter of fiscal 2012 was $14.1 million compared to a net loss of $6.9 million for the same period last year. The increase in net loss primarily resulted from higher average unit costs resulting from higher commodity prices and from slight SG&A deleverage due to the comparable store sales decrease of 1%.

 

 
 

Net income attributable to The Gymboree Corporation before interest (income) expense, income tax benefit and depreciation and amortization, adjusted for other items (“Adjusted EBITDA”), for the second quarter of fiscal 2012 decreased 35.5% to $16.4 million, compared to $25.5 million for the second 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 Gymboree Corporation to Adjusted EBITDA presented herein is included in Exhibit D of this press release.

 

Balance Sheet Highlights

 

Effective March 2012, the Company’s $225 million asset-backed loan (“ABL”) facility was refinanced to take advantage of improved rates and to extend the maturity date. There were no borrowings outstanding under the ABL as of the end of the second fiscal quarter and approximately $176.7 million of undrawn availability.

Cash at the end of the second quarter of fiscal 2012 decreased to $54.6 million from $54.8 million at the end of the second quarter of fiscal 2011. During the quarter, the Company made a $15.6 million prepayment on its senior secured term loan facility.

Capital expenditures for the second quarter of fiscal 2012 were $9.9 million, with the majority of the cash used to fund the opening of 27 new stores during the quarter.

Inventory balances at the end of the second quarter of fiscal 2012 were $220.2 million compared to $215.9 million at the end of the second quarter of fiscal 2011. Inventory cost on a per square foot basis was down 6% and inventory units on a per square foot basis were also down in the low single-digits.

 

Fiscal 2012 Business Outlook

 

Adjusted EBITDA

 

The Company expects Adjusted EBITDA for fiscal 2012 to increase modestly over fiscal 2011. The Company also 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 approximately 115 new stores, including approximately 90 Crazy 8 stores.

 

Capital Expenditures

 

During fiscal 2012, the Company anticipates spending approximately $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 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 second quarter fiscal 2012 financial results will be available to interested parties at 1:00 p.m. PT (4:00 p.m. ET) on Wednesday, September 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, Tuesday, September 11, 2012, at 855-859-2056, passcode 12416891.

 

About The Gymboree Corporation

 

The Gymboree Corporation’s specialty retail brands offer unique, high-quality products delivered with personalized customer service. As of July 28, 2012, the Company operated a total of 1,191 retail stores, as follows: 631 Gymboree® stores (including 586 in the United States, 41 in Canada, 1 in Puerto Rico and 3 in Australia), 155 Gymboree Outlet stores, 127 Janie and Jack® shops, and 278 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 712 franchised and Company-operated Gymboree Play & Music® centers in the United States and 40 other countries.

 

 
 

Forward-Looking Statements

 

The foregoing financial information for the second fiscal quarter ended July 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 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 “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   26 Weeks Ended   26 Weeks Ended 
   July 28, 2012   July 30, 2011   July 28, 2012   July 30, 2011 
   ($ in thousands)   ($ in thousands) 
Net sales:                
Retail  $259,114   $253,407   $547,230   $519,290 
Gymboree Play & Music   5,799    3,349    11,591    6,274 
Retail Franchise   3,839    2,280    7,682    3,729 
Total net sales   268,752    259,036    566,503    529,293 
Cost of goods sold, including buying and occupancy expenses   (179,564)   (167,004)   (355,491)   (326,400)
Gross profit   89,188    92,032    211,012    202,893 
Selling, general and administrative expenses   (95,595)   (88,881)   (187,334)   (173,448)
Operating (loss) income   (6,407)   3,151    23,678    29,445 
Interest income   45    34    104    87 
Interest expense   (21,193)   (21,927)   (42,851)   (45,930)
Loss on extinguishment of debt   -    -    (1,237)   (19,563)
Other expense, net   (24)   (80)   (90)   (51)
Loss before income taxes   (27,579)   (18,822)   (20,396)   (36,012)
Income tax benefit   13,513    11,891    10,500    18,640 
Net loss   (14,066)   (6,931)   (9,896)   (17,372)
Net loss attributable to noncontrolling interest   798    -    1,624    - 
Net loss attributable to The Gymboree Corporation  $(13,268)  $(6,931)  $(8,272)  $(17,372)

  

 
 

EXHIBIT B

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

  

   July 28,   January 28,   July 30, 
   2012   2012   2011 
   ($ in thousands)  
Current Assets            
Cash and cash equivalents  $54,555   $77,910   $54,762 
Accounts receivable   25,173    27,277    19,342 
Merchandise inventories   220,209    210,212    215,866 
Prepaid income taxes   5,295    3,736    15,467 
Prepaid expenses and deferred income taxes   45,826    41,647    52,678 
Total current assets   351,058    360,782    358,115 
                
Property and Equipment, net   202,635    202,152    207,901 
Goodwill   899,097    899,097    927,397 
Other Intangible Assets   589,943    599,195    609,009 
Deferred Financing Costs   44,695    47,915    51,237 
Other Assets   5,006    4,646    9,939 
                
Total Assets  $2,092,434   $2,113,787   $2,163,598 
                
Current Liabilities               
Accounts payable  $84,964   $79,027   $72,397 
Accrued liabilities   89,906    94,178    74,581 
Line of credit   -    -    40,000 
Current portion of long-term debt   -    17,698    8,200 
Total current liabilities   174,870    190,903    195,178 
                
Long-Term Liabilities               
Long-term debt   1,192,312    1,192,171    1,205,631 
Lease incentives and other deferred liabilities   41,452    36,579    32,841 
Deferred income taxes   239,985    245,495    248,473 
Total Liabilities   1,648,619    1,665,148    1,682,123 
                
Stockholders' Equity   443,815    448,639    481,475 
                
Total Liabilities and Stockholders' Equity  $2,092,434   $2,113,787   $2,163,598 

 

 
 

EXHIBIT C

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

  

   26 Weeks Ended   26 Weeks Ended 
   July 28, 2012   July 30, 2011 
   ($ in thousands) 
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net loss  $(9,896)  $(17,372)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:          
Write-off of deferred financing costs and original issue discount   1,237    15,860 
Depreciation and amortization   28,923    28,617 
Amortization of deferred financing costs and accretion of original issue discount   3,471    3,370 
Interest rate cap contracts - adjustment to market   114    - 
Loss on disposal/impairment of assets   1,264    2,260 
Benefit for deferred income taxes   (10,880)   (19,913)
Share-based compensation expense   2,917    2,872 
Other non-cash expense   1,430    - 
Change in assets and liabilities:          
Accounts receivable   (312)   (5,667)
Merchandise inventories   (10,084)   (31,467)
Prepaid expenses and other assets   933    (606)
Prepaid income taxes   (1,557)   (198)
Accounts payable   5,944    17,890 
Accrued liabilities   (9,680)   (7,148)
Lease incentives and other deferred liabilities   6,612    8,184 
Net cash provided by (used in) operating activities   10,436    (3,318)
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Capital expenditures   (18,516)   (16,784)
Acquisition of business, net of cash acquired   -    (1,352)
Other   (231)   (213)
Net cash used in investing activities   (18,747)   (18,349)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Proceeds from Term Loan   -    820,000 
Payments on Term Loan   (17,698)   (824,100)
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)   44,100 
           
Effect of exchange rate fluctuations on cash   6    205 
           
Net (decrease) increase in cash and cash equivalents   (23,355)   22,638 
           
CASH AND CASH EQUIVALENTS:          
Beginning of period   77,910    32,124 
End of period  $54,555   $54,762 

 

 
 

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 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.

 

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

  

   13 Weeks Ended   13 Weeks Ended   26 Weeks Ended   26 Weeks Ended 
   July 28, 2012   July 30, 2011   July 28, 2012   July 30, 2011 
Net loss attributable to The Gymboree Corporation  $(13,268)  $(6,931)  $(8,272)  $(17,372)
Reconciling items (a):                    
Interest expense   21,193    21,927    42,851    45,930 
Interest income   (36)   (34)   (84)   (87)
Income tax benefit   (13,229)   (11,891)   (10,275)   (18,640)
Depreciation and amortization (b)   14,578    14,372    28,740    28,617 
Non-cash share-based compensation expense   1,510    1,469    2,917    2,872 
Loss on disposal/impairment on assets   1,202    1,492    1,264    2,260 
Loss on extinguishment of debt   -    -    1,237    19,563 
Acquisition-related adjustments (c)   4,481    5,085    8,879    21,691 
Adjusted EBITDA  $16,431   $25,489   $67,257   $84,834 
                     
(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   $4,145   $8,680   $8,289 
Amortization of below and above market leases (impacts COGS)   (487)   (508)   (1,035)   (1,021)
   $3,853   $3,637   $7,645   $7,268 
                     
(c) Includes 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)   2,308    2,415    4,632    4,837 
Legal, accounting and sponsor fees, as well as other costs incurred as a result of the Acquisition (impacts SG&A)   976    1,194    1,848    3,160 
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    1,476    2,399    2,963 
   $4,481   $5,085   $8,879   $21,691 
                     

 

 
 

OTHER NON-GAAP FINANCIAL MEASURES:

  

           as a % of Total Net Sales 
   13 Weeks Ended   13 Weeks Ended   13 Weeks Ended   13 Weeks Ended 
   July 28, 2012   July 30, 2011   July 28, 2012   July 30, 2011 
   ($ in thousands)         
Gross profit as reported  $89,188   $92,032    33.2%   35.5%
Acquisition-related adjustments   3,018    3,383    1.1%   1.3%
Adjusted gross profit excluding acquisition related adjustments (non-GAAP measure)  $92,206   $95,415    34.3%   36.8%
                     

  

           as a % of Total Net Sales 
   26 Weeks Ended   26 Weeks Ended   26 Weeks Ended   26 Weeks Ended 
   July 28, 2012   July 30, 2011   July 28, 2012   July 30, 2011 
   ($ in thousands)         
Gross profit as reported  $211,012   $202,893    37.2%   38.3%
Acquisition-related adjustments   5,996    17,510    1.1%   3.3%
Adjusted gross profit excluding acquisition related adjustments (non-GAAP measure)  $217,008   $220,403    38.3%   41.6%
                     

  

           as a % of Total Net Sales 
   13 Weeks Ended   13 Weeks Ended   13 Weeks Ended   13 Weeks Ended 
   July 28, 2012   July 30, 2011   July 28, 2012   July 30, 2011 
   ($ in thousands)         
SG&A as reported  $(95,595)  $(88,881)   -35.6%   -34.3%
Acquisition-related adjustments   5,316    5,339    2.0%   2.1%
Adjusted SG&A excluding acquisition related adjustments (non-GAAP measure)  $(90,279)  $(83,542)   -33.6%   -32.3%
                     

  

           as a % of Total Net Sales 
   26 Weeks Ended   26 Weeks Ended   26 Weeks Ended   26 Weeks Ended 
   July 28, 2012   July 30, 2011   July 28, 2012   July 30, 2011 
   ($ in thousands)         
SG&A as reported  $(187,334)  $(173,448)   -33.1%   -32.8%
Acquisition-related adjustments   10,528    11,449    1.9%   2.2%
Adjusted SG&A excluding acquisition related adjustments (non-GAAP measure)  $(176,806)  $(161,999)   -31.2%   -30.6%

 

 
 

EXHIBIT E

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)

  

   13 Weeks Ended July 28, 2012  
   Balance Before             
   Consolidation of VIEs   VIEs*   Eliminations   As Reported 
   (in thousands)  
Net sales  $267,491   $3,056   $(1,795)  $268,752 
Cost of goods sold, including buying and occupancy expenses   (178,513)   (1,202)   151    (179,564)
Gross profit   88,978    1,854    (1,644)   89,188 
Selling, general and administrative expenses   (94,308)   (2,965)   1,678    (95,595)
Operating loss   (5,330)   (1,111)   34    (6,407)
Interest income   36    9    -    45 
Interest expense   (21,193)   -    -    (21,193)
Loss on extinguishment of debt   -    -    -    - 
Other (expense) income, net   (44)   20    -    (24)
Loss before income taxes   (26,531)   (1,082)   34    (27,579)
Income tax benefit   13,229    284    -    13,513 
Net loss   (13,302)   (798)   34    (14,066)
Net loss attributable to noncontrolling interest   -    798    -    798 
Net loss attributable to The Gymboree Corporation  $(13,302)  $-   $34   $(13,268)

 

 

   26 Weeks Ended July 28, 2012  
   Balance Before             
   Consolidation of VIEs   VIEs*   Eliminations   As Reported 
   (in thousands) 
Net sales  $565,422   $5,199   $(4,118)  $566,503 
Cost of goods sold, including buying and occupancy expenses   (354,562)   (1,444)   515    (355,491)
Gross profit   210,860    3,755    (3,603)   211,012 
Selling, general and administrative expenses   (185,202)   (5,620)   3,488    (187,334)
Operating income (loss)   25,658    (1,865)   (115)   23,678 
Interest income   84    20    -    104 
Interest expense   (42,851)   -    -    (42,851)
Loss on extinguishment of debt   (1,237)   -    -    (1,237)
Other expense, net   (86)   (4)   -    (90)
Loss before income taxes   (18,432)   (1,849)   (115)   (20,396)
Income tax benefit   10,275    225    -    10,500 
Net loss   (8,157)   (1,624)   (115)   (9,896)
Net loss attributable to noncontrolling interest   -    1,624    -    1,624 
Net loss attributable to The Gymboree Corporation  $(8,157)  $-   $(115)  $(8,272)

 

 
 

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEETS

(Unaudited)

  

   July 28, 2012 
   Balance Before             
   Consolidation of VIEs   VIEs*   Eliminations   As Reported 
   (in thousands) 
Current assets  $342,064   $11,594   $(2,600)  $351,058 
Non-current assets   1,740,298    1,078    -    1,741,376 
Total assets  $2,082,362   $12,672   $(2,600)  $2,092,434 
                     
Current liabilities  $169,413   $7,950   $(2,493)  $174,870 
Non-current liabilities   1,473,671    78    -    1,473,749 
Total liabilities  $1,643,084   $8,028   $(2,493)  $1,648,619 
                     
Total stockholders' equity   439,278    -    (107)   439,171 
Noncontrolling interest   -    4,644    -    4,644 
Total liabilities and stockholders' equity  $2,082,362   $12,672   $(2,600)  $2,092,434 

  

   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") include 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.