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 12, 2013

 

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 12, 2013, The Gymboree Corporation issued an earnings release announcing its financial results for the company’s second fiscal quarter ended August 3, 2013. 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 dated September 12, 2013.

 

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 12, 2013  
  By: /s/ Evan Price
    Name: Evan Price
    Title: Chief Financial Officer
       

 

 
 

EXHIBIT INDEX

 

No.    Description 
     
99.1   Earnings release of The Gymboree Corporation dated September 12, 2013.

 

 

 

 

 

 

 

 

FOR IMMEDIATE RELEASE:

  Investor Relations contact:
  Marc Passalacqua
  Tel: 415-278-7933
  investor_relations@gymboree.com
   
  Media Relations contact:
  Tel: 415-278-7493
  media_relations@gymboree.com

 

The Gymboree Corporation Reports Second Quarter 2013 Results

 

San Francisco, Calif., September 12, 2013 – The Gymboree Corporation (the “Company”) today reported consolidated financial results for its quarter ended August 3, 2013.

 

Net sales for the quarter were $290.9 million, an increase of 8.2% compared to $268.8 million in net sales for the same quarter last year. Comparable sales for the quarter decreased 3% versus the same quarter last year.

 

Gross profit for the quarter was $107.1 million, or 36.8% of net sales, compared to $89.2 million, or 33.2% of net sales, for the same quarter last year. Excluding purchase accounting adjustments of $2.5 million and $3.0 million for the second 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 $109.6 million, or 37.7% of net sales, and $92.2 million, or 34.3% of net sales, for the second quarter of this year and last year, respectively (see Exhibit D).

 

SG&A expense for the quarter was $102.0 million, or 35.1% of net sales, compared to $95.6 million, or 35.6% of net sales, in the same quarter last year. Results for the second quarter of this year and last year include $3.3 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 second quarter of this year and last year was $98.7 million, or 33.9% of net sales, and $90.3 million, or 33.6% of net sales, respectively (see Exhibit D).

 

Net loss for the quarter was $9.3 million compared to a net loss of $14.1 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”), increased 50.9% to $24.8 million for the quarter compared to $16.4 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 no borrowings outstanding under the ABL as of the end of the quarter and approximately $139.4 million of undrawn availability.

 

Cash at the end of the quarter was $26.8 million compared to $54.6 million at the end of the same quarter last year, reflecting the pay down of approximately $51.6 million of debt since the end of the second quarter last year.

 

Capital expenditures for the fiscal year to date were $23.2 million, with the majority of the cash used to fund the opening of 26 new stores during the quarter.

 

Inventory balances at the end of the quarter were $215.0 million compared to $220.2 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 12%, while inventory units on a per square foot basis were down in the mid single digits.

 

Fiscal 2013 Business Outlook

 

Full Year

 

For the fiscal year ending February 1, 2014, the Company continues to expect Adjusted EBITDA to grow modestly over last year and comparable sales are now expected to be down low single digits compared to last year. Based on this guidance, the Company expects to generate sufficient cash flow to service its debt and invest in the business to drive long term growth.

 

New Stores

 

The Company now 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 second quarter fiscal 2013 results today at 1:00p.m. Pacific 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, September 19, 2013, at 855-859-2056, passcode 32575799.

 

About The Gymboree Corporation

 

The Gymboree Corporation’s specialty retail brands offer unique, high-quality products delivered with personalized customer service. As of August 3, 2013, the Company operated a total of 1,302 retail stores: 632 Gymboree® stores (582 in the United States, 43 in Canada, 1 in Puerto Rico and 6 in Australia), 163 Gymboree Outlet stores (161 in the United States and 2 in Puerto Rico), 135 Janie and Jack® shops and 372 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 710 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 second fiscal quarter ended August 3, 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 store 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, 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   26 Weeks Ended 
   August 3, 2013   July 28, 2012   August 3, 2013   July 28, 2012 
                 
   (in thousands) 
Net sales:                    
Retail  $278,944   $259,114   $559,821   $547,230 
Gymboree Play & Music   6,260    5,799    12,588    11,591 
Retail Franchise   5,712    3,839    11,290    7,682 
Total net sales   290,916    268,752    583,699    566,503 
                     
Cost of goods sold, including buying and occupancy expenses   (183,830)   (179,564)   (355,640)   (355,491)
Gross profit   107,086    89,188    228,059    211,012 
Selling, general and administrative expenses   (102,023)   (95,595)   (206,152)   (187,334)
Operating income (loss)   5,063    (6,407)   21,907    23,678 
Interest income   61    45    102    104 
Interest expense   (20,467)   (21,193)   (40,869)   (42,851)
Loss on extinguishment of debt   -    -    -    (1,237)
Other income (expense), net   (111)   (24)   (102)   (90)
Loss before income taxes   (15,454)   (27,579)   (18,962)   (20,396)
Income tax benefit   6,129    13,513    6,789    10,500 
Net loss   (9,325)   (14,066)   (12,173)   (9,896)
Net (income) loss attributable to noncontrolling interest   (25)   798    287    1,624 
                     
Net loss attributable to The Gymboree Corporation  $(9,350)  $(13,268)  $(11,886)  $(8,272)

 

 
 

 

EXHIBIT B

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

   August 3, 2013   February 2, 2013   July 28, 2012 
   (in thousands) 
Current assets               
Cash and cash equivalents  $26,831   $33,328   $54,555 
Accounts receivable   26,916    27,542    25,173 
Merchandise inventories   214,981    197,935    220,209 
Prepaid income taxes   4,037    2,903    5,295 
Prepaid expenses   18,081    17,341    4,498 
Deferred income taxes   36,378    31,383    41,328 
Total current assets   327,224    310,432    351,058 
                
Property and equipment, net   206,460    205,325    202,635 
Goodwill   898,983    898,966    899,097 
Other intangible assets   577,782    580,641    589,943 
Deferred financing costs   36,819    40,040    44,695 
Other assets   8,293    7,809    5,006 
                
Total assets  $2,055,561   $2,043,213   $2,092,434 
                
Current liabilities               
Accounts payable  $100,794   $90,133   $84,964 
Accrued liabilities   93,947    90,443    89,906 
Total current liabilities   194,741    180,576    174,870 
                
Long-term liabilities               
Long-term debt   1,138,595    1,138,455    1,192,312 
Lease incentives and other deferred liabilities   45,529    40,104    34,045 
Unrecognized tax benefits   8,894    7,848    7,407 
Deferred income taxes   229,548    234,593    239,985 
Total liabilities   1,617,307    1,601,576    1,648,619 
                
Stockholders' equity   438,254    441,637    443,815 
                
Total liabilities and stockholders' equity  $2,055,561   $2,043,213   $2,092,434 

 

 
 

 

EXHIBIT C

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

   26 Weeks Ended 
   August 3, 2013   July 28, 2012 
   (in thousands) 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net loss  $(12,173)  $(9,896)
Adjustments to reconcile net loss to net cash provided by operating activities:          
Loss on extinguishment of debt   -    1,237 
Depreciation and amortization   23,684    28,923 
Amortization of deferred financing costs and accretion of original issue discount   3,362    3,471 
Interest rate cap contracts - adjustment to market   432    114 
Deferred income taxes   (9,498)   (10,880)
Share-based compensation expense   2,974    2,917 
Loss on disposal/impairment of assets   1,949    1,264 
Other   -    1,430 
Change in assets and liabilities:          
Accounts receivable   645    (312)
Merchandise inventories   (16,803)   (10,084)
Prepaid income taxes   (1,166)   (1,557)
Prepaid expenses and other assets   (1,083)   933 
Accounts payable   10,661    5,944 
Accrued liabilities   (456)   (9,680)
Lease incentives and other deferred liabilities   8,062    6,612 
Net cash provided by operating activities   10,590    10,436 
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Capital expenditures   (23,228)   (18,516)
Other   (162)   (231)
Net cash used in investing activities   (23,390)   (18,747)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Payments on Term Loan   -    (17,698)
Payments of deferred financing costs   -    (1,347)
Investment by affiliate of Parent   -    2,400 
Dividend payment to Parent   (201)   - 
Capital contribution received by noncontrolling interest   6,506    1,595 
Net cash provided by (used in) financing activities   6,305    (15,050)
Effect of exchange rate fluctuations on cash and cash equivalents   (2)   6 
Net decrease in cash and cash equivalents   (6,497)   (23,355)
CASH AND CASH EQUIVALENTS:          
Beginning of period   33,328    77,910 
End of period  $26,831   $54,555 

 

 
 

 

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   26 Weeks Ended 
   August 3, 2013   July 28, 2012   August 3, 2013   July 28, 2012 
                 
Net loss attributable to The Gymboree Corporation  $(9,350)  $(13,268)  $(11,886)  $(8,272)
Reconciling items (a):                    
Interest expense   20,467    21,193    40,869    42,851 
Interest income   (47)   (36)   (73)   (84)
Income tax benefit   (5,854)   (13,229)   (6,715)   (10,275)
Depreciation and amortization (b)   10,662    14,578    23,282    28,740 
Non-cash share-based compensation expense   1,477    1,510    2,974    2,917 
Loss on disposal/impairment on assets   1,571    1,202    1,871    1,264 
Loss on extinguishment of debt   -    -    -    1,237 
Other (c)   1,974    -    2,463    - 
Acquisition-related adjustments (d)   3,899    4,481    7,992    8,879 
Adjusted EBITDA  $24,799   $16,431   $60,777   $67,257 
                     
(a) Excludes amounts related to noncontrolling interest, which are already excluded from net loss attributable to The Gymboree Corporation.
                     
(b) Includes the following (in thousands):                    
Amortization of intangible assets (impacts SG&A)  $384   $4,340   $2,642   $8,680 
Amortization of below and above market leases (impacts COGS)   (376)   (487)   (762)   (1,035)
   $8   $3,853   $1,880   $7,645 
                     
(c) Other is comprised of a non-recurring change in reserves, restructuring charges, and executive-related hiring expenses.
                     
(d) Include the following (in thousands):                    
Additional rent expense recognized due to the elimination of deferred rent and construction allowances in purchase accounting (impacts COGS)  $2,226   $2,308   $4,458   $4,632 
                     
Sponsor fees, legal and  accounting,  as well as other costs incurred as a result of the Acquisition or refinancing (impacts SG&A)   975    976    2,095    1,848 
                     
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)   698    1,197    1,439    2,399 
   $3,899   $4,481   $7,992   $8,879 

 

OTHER NON-GAAP FINANCIAL MEASURES:

 

   13 Weeks Ended   26 Weeks Ended 
   August 3, 2013   July 28, 2012   August 3, 2013   July 28, 2012 
                 
Gross profit as reported  $107,086   $89,188   $228,059   $211,012 
Acquisition-related adjustments   2,548    3,018    5,135    5,996 
Adjusted gross profit excluding Acquisition-related adjustments (non-GAAP measure)  $109,634   $92,206   $233,194   $217,008 

 

 

   13 Weeks Ended   26 Weeks Ended 
   August 3, 2013   July 28, 2012   August 3, 2013   July 28, 2012 
                 
SG&A as reported  $(102,023)  $(95,595)  $(206,152)  $(187,334)
                     
Acquisition-related adjustments   1,359    5,316    4,737    10,528 
Other adjustments   1,974    -    2,463    - 
    3,333    5,316    7,200    10,528 
Adjusted SG&A excluding Acquisition-related and other adjustments (non-GAAP measure)  $(98,690)  $(90,279)  $(198,952)  $(176,806)

 

 
 

 

EXHIBIT E

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)

 

   13 Weeks Ended August 3, 2013 
   Balance Before             
   Consolidation of VIEs   VIEs*   Eliminations   As Reported 
   (in thousands) 
Net sales  $287,145   $4,998   $(1,227)  $290,916 
Cost of goods sold, including buying and occupancy expenses   (182,693)   (1,341)   204    (183,830)
Gross profit   104,452    3,657    (1,023)   107,086 
Selling, general and administrative expenses   (99,131)   (3,930)   1,038    (102,023)
Operating income (loss)   5,321    (273)   15    5,063 
Other non operating (expense) income, net   (20,540)   23    -    (20,517)
Loss before income taxes   (15,219)   (250)   15    (15,454)
Income tax benefit   5,854    275    -    6,129 
Net (loss) income   (9,365)   25    15    (9,325)
Net income attributable to noncontrolling interest   -    (25)   -    (25)
                     
Net loss attributable to The Gymboree Corporation  $(9,365)  $-   $15   $(9,350)

 

   26 Weeks Ended August 3, 2013 
   Balance Before             
   Consolidation of VIEs   VIEs*   Eliminations   As Reported 
   (in thousands) 
Net sales  $576,625   $9,632   $(2,558)  $583,699 
Cost of goods sold, including buying and occupancy expenses   (353,475)   (2,571)   406    (355,640)
Gross profit   223,150    7,061    (2,152)   228,059 
Selling, general and administrative expenses   (200,762)   (7,576)   2,186    (206,152)
Operating income (loss)   22,388    (515)   34    21,907 
Other non operating (expense) income, net   (41,023)   154    -    (40,869)
Loss before income taxes   (18,635)   (361)   34    (18,962)
Income tax benefit   6,715    74    -    6,789 
Net loss   (11,920)   (287)   34    (12,173)
Net loss attributable to noncontrolling interest   -    287    -    287 
                     
Net loss attributable to The Gymboree Corporation  $(11,920)  $-   $34   $(11,886)

 

   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)
Other non operating (expense) income, net   (21,201)   29    -    (21,172)
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 
Other non operating (expense) income, net   (44,090)   16    -    (44,074)
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)

 

 
 

 

EXHIBIT E (continued)

THE GYMBOREE CORPORATION

CONDENSED CONSOLIDATING BALANCE SHEETS

(Unaudited)

 

   August 3, 2013 
   Balance Before             
   Consolidation of VIEs   VIEs*   Eliminations   As Reported 
   (in thousands) 
Current assets  $316,457   $12,708   $(1,941)  $327,224 
Non-current assets   1,725,168    3,169    -    1,728,337 
Total assets  $2,041,625   $15,877   $(1,941)  $2,055,561 
                     
Current liabilities  $189,637   $6,850   $(1,746)  $194,741 
Non-current liabilities   1,422,337    229    -    1,422,566 
Total liabilities  $1,611,974   $7,079   $(1,746)  $1,617,307 
                     
Total stockholders' equity   429,651    -    (195)   429,456 
Noncontrolling interest   -    8,798    -    8,798 
Total liabilities and stockholders' equity  $2,041,625   $15,877   $(1,941)  $2,055,561 

 

   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 

 

   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 

 

* 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.