NEW YORK--(BUSINESS WIRE)--
Vince Holding Corp. (NYSE:VNCE), a leading contemporary fashion brand
(“Vince” or the “Company”), today reported unaudited results for the
fourth quarter and fiscal year 2015 ended January 30, 2016.
For the fourth quarter ended January 30, 2016:
-
Net sales decreased 13.6% to $81.8 million from $94.7 million in the
fourth quarter of fiscal 2014. Wholesale segment sales decreased 30.2%
to $48.1 million and direct-to-consumer segment sales increased 30.5%
to $33.7 million over the fourth quarter of fiscal 2014. Comparable
store sales increased 10.7%, including e-commerce sales.
-
Gross profit was $41.0 million, or 50.1% of net sales, which includes
a $2.2 million benefit from the recovery on inventory write-downs
taken in the second quarter. Excluding this benefit, gross profit was
$38.8 million, or 47.5% of net sales. This compares to gross profit of
$45.8 million, or 48.3% of net sales, in the fourth quarter of fiscal
2014.
-
Selling, general, and administrative expenses were $36.2 million, or
44.2% of sales. This includes a $0.3 million favorable adjustment to
management transition costs taken in the second quarter. Excluding
this favorable impact, selling, general and administrative costs were
$36.5 million, or 44.6% of net sales, in the quarter. In the fourth
quarter of fiscal 2014, selling, general and administrative costs were
$25.5 million, or 26.9% of sales.
-
Operating income was $4.8 million, compared to operating income of
$20.3 million for the fourth quarter of fiscal 2014. Excluding the
benefit from the recovery on the inventory write-down and a favorable
adjustment to management transition costs, operating income for the
fourth quarter of fiscal 2015 was $2.3 million.
-
Net income was $1.8 million, or $0.05 per diluted share, compared to
net income of $10.5 million, or $0.28 per diluted share, for the
fourth quarter of fiscal 2014. Excluding the benefit from the recovery
on the inventory write-down and a favorable adjustment of the
transition costs, net income for the fourth quarter of fiscal 2015 was
$0.3 million, or $0.01 per diluted share based on 36.8 million
weighted average shares outstanding.
-
During the fourth quarter of 2015, the Company opened two new stores,
ending the quarter with 48 company-operated stores.
For the fiscal year ended January 30, 2016:
-
Net sales decreased 11.1% to $302.5 million from $340.4 million during
fiscal year 2014. The wholesale segment decreased 22.4% to $201.2
million and the direct-to-consumer segment increased 25.1% to $101.3
million over fiscal year 2014. Comparable store sales increased 4.2%
over the prior year period, including ecommerce sales.
-
Net income was $5.1 million, or $0.14 per diluted share, which
includes a $6.1 million, or $0.16 per share, net charge associated
with the write-down of excess inventory and aged product to expected
net realizable value incurred in the second quarter and subsequent
recovery of inventory in each of the third and fourth quarters; and
$1.6 million, or $0.04 per share, in net management transition costs.
This compares to net income of $35.7 million, or $0.93 per diluted
share, in fiscal 2014, including the impact of Secondary Offering
costs. Adjusted net income was $12.8 million, or $0.34 per diluted
share based on 37.5 million weighted average shares outstanding, in
fiscal 2015, compared to adjusted net income of $36.1 million, or
$0.94 per diluted share, for fiscal year 2014.
Brendan Hoffman, Chief Executive Officer, commented, “While 2015 was a
difficult year for the business, we took important measures toward
positioning the Company for sustainable long-term growth. Our first
priority was product, where we are making significant headway in
recapturing the Vince DNA with the return of our founders and our
enhanced design team. The initial response to our Fall collection has
been extremely positive, with our wholesale partners and retail team
excited to see the return of the signature Vince look and feel in a
fresh and relevant way. That said, we are prepared for a tough first
half, as we strategically reduce shipments and receipts while we reset
the product assortment. While the pullback in deliveries is expected to
impact our sales results in the short term, we believe this is a
necessary step for the long term health of the brand. We look forward to
the holiday season when we expect to see the new product line drive a
turn in our business. In the meantime, we are carefully managing our
inventory levels and diligently controlling costs while making strategic
investments to support our business for the long term. We are also
taking steps to increase our financial flexibility with the rights
offering, which we commenced today. Overall, while we still have a long
road ahead of us, we believe that the initiatives we have in place will
enable us to achieve the full potential of the Vince brand.”
Balance Sheet
The Company’s debt decreased by $17.9 million to $60.0 million during
the fourth quarter of fiscal 2015. The Company had availability under
its Revolving Credit Facility of $28.1 million as of January 30, 2016.
Inventory at the end of the fourth quarter of fiscal 2015 was $36.6
million compared to $37.4 million at the end of the fourth quarter of
fiscal 2014. The year-over-year inventory decline was driven primarily
by the increase in inventory reserves. Partially offsetting the
additional reserves were increases from the 11 new store openings since
the end of the fourth quarter of last year.
Capital expenditures for the fourth quarter of fiscal 2015 totaled $3.5
million, $2.0 million of which was primarily attributable to new stores.
2016 Outlook
For fiscal 2016, the Company continues to expect:
-
Total net sales between $290 million and $305 million, including
revenues from six new retail stores and comparable sales growth
inclusive of ecommerce sales in the flat to low-single digit range.
The Company expects sales to decrease in the mid- to high-single digit
range for the first half of the year and to increase in the low- to
mid-single digit range in the second half of the year as compared to
the same prior year periods;
-
Gross margin of approximately 47%;
-
SG&A to be between $132 million and $135 million;
-
Interest expense of approximately $4 million;
-
Diluted EPS of $0.00 to $0.06. The company expects net loss per share
to be in the mid-teen’s range in the first half of the year due to
higher SG&A growth as the result of continued store and strategic
investments in early fiscal 2016 and the annualization of store
openings and strategic investments made in fiscal 2015. Note that the
EPS guidance reflects a share count of approximately 46.9 million,
which takes into account the expected completion of the $65 million
rights offering; and
-
Capital expenditures between $10 million and $12 million.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with GAAP, the
Company has provided, with respect to financial results relating to the
fourth quarter and fifty-two week period of fiscal 2015, adjusted cost
of products sold, adjusted gross margin, adjusted selling, general and
administrative expenses, adjusted operating income, adjusted income
before taxes, adjusted income taxes, adjusted net income and adjusted
earnings per share, which are non-GAAP financial measures, in order to
eliminate the effect on operating results of the inventory write-down
and management transition costs. The Company has also provided, with
respect to financial results relating to the fifty-two week period of
fiscal 2014, adjusted selling, general and administrative expenses,
adjusted operating income, adjusted provision for taxes, adjusted net
income and adjusted earnings per share, which are non-GAAP financial
measures, in order to eliminate the effect on operating results the
costs related to the secondary offering by certain stockholders (the
“Secondary Offering”). The Company believes that the presentation of
adjusted results facilitates an understanding of the Company’s
continuing operations without the non-recurring impact associated with
the inventory write-down and management transition costs as well as the
Secondary Offering costs. Non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. A reconciliation of GAAP
to non-GAAP results has been provided in Exhibits 3 through 5 to this
press release.
2015 Fourth Quarter Earnings Conference Call
A conference call to discuss the fourth quarter results will be held
today, March 29, 2016, at 4:30 pm. ET, hosted by Vince Holding Corp.
Chief Executive Officer, Brendan Hoffman, and Chief Financial Officer,
David Stefko. During the conference call, the Company may answer
questions concerning business and financial developments, trends and
other business or financial matters. The Company's responses to these
questions, as well as other matters discussed during the conference
call, may contain or constitute information that has not been previously
disclosed.
Those who wish to participate in the call may do so by dialing (877)
201-0168 conference ID 72235401. Any interested party will also have the
opportunity to access the call via the Internet at http://investors.vince.com/.
To listen to the live call, please go to the website at least 15 minutes
early to register and download any necessary audio software. For those
who cannot listen to the live broadcast, a recording will be available
for 30 days after the date of the event. Recordings may be accessed at http://investors.vince.com/.
ABOUT VINCE
VINCE is a leading contemporary fashion brand best known for modern
effortless style and everyday luxury essentials. Established in 2002,
the brand now offers a wide range of women's and men's apparel, women's
and men's footwear, and handbags. Vince products are sold in prestige
distribution worldwide, including approximately 2,500 distribution
locations across 38 countries. With corporate headquarters in New York
and its design studio in Los Angeles, the Company has 35
company-operated full-price retail stores, 14 company-operated outlet
stores and its e-commerce site, VINCE.com. Please visit www.VINCE.com
for more information.
This document, and any statements incorporated by reference herein,
contains forward-looking statements under the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include the
statements under “2016 Outlook” and statements regarding, among other
things, our current expectations about the Company's future results and
financial condition, revenues, store openings and closings, margins,
expenses and earnings and are indicated by words or phrases such as
"may," "will," "should," "believe," "expect," "seek," "anticipate,"
"intend," "estimate," "plan," "target," "project," "forecast,"
"envision" and other similar phrases. Although we believe the
assumptions and expectations reflected in these forward-looking
statements are reasonable, these assumptions and expectations may not
prove to be correct and we may not achieve the results or benefits
anticipated. These forward-looking statements are not guarantees of
actual results, and our actual results may differ materially from those
suggested in the forward-looking statements. These forward-looking
statements involve a number of risks and uncertainties, some of which
are beyond our control, including, without limitation: our ability to
maintain adequate cash flow from operations or availability under our
revolving credit facility to meet our liquidity needs (including our
obligations under the tax receivable agreement); our ability to
successfully complete the migration of our systems and processes from
Kellwood Company; our ability to successfully transition our
distribution system from Kellwood Company to a third party logistics
provider; our ability to remain competitive in the areas of merchandise
quality, price, breadth of selection, and customer service; our ability
to anticipate and/or react to changes in customer demand and attract new
customers, including in connection with making inventory commitments;
our ability to control the level of sales in the off-price channels; our
ability to manage current excess inventory in a way that will promote
the long-term health of the brand; changes in consumer confidence and
spending; our ability to maintain projected profit margins; unusual,
unpredictable and/or severe weather conditions; the execution and
management of our retail store growth, including the availability and
cost of acceptable real estate locations for new store openings; the
execution and management of our international expansion, including our
ability to promote our brand and merchandise outside the U.S. and find
suitable partners in certain geographies; our ability to expand our
product offerings into new product categories, including the ability to
find suitable licensing partners; our ability to successfully implement
our marketing initiatives; our ability to protect our trademarks in the
U.S. and internationally; our ability to maintain the security of
electronic and other confidential information; serious disruptions and
catastrophic events; changes in global economies and credit and
financial markets; competition; the impact of recent turnover in the
senior management team; the fact that a number of members of the
management team have less than one year of tenure with the Company, and
the current senior management team has not had a long period of time
working together; our ability to attract and retain key personnel;
commodity, raw material and other cost increases; compliance with
domestic and international laws, regulations and orders; changes in laws
and regulations; outcomes of litigation and proceedings and the
availability of insurance, indemnification and other third-party
coverage of any losses suffered in connection therewith; tax matters;
our ability to commence and complete the proposed rights offering and
related backstop commitment; and other factors as set forth from time to
time in our Securities and Exchange Commission filings, including under
the heading "Item 1A—Risk Factors" in our Annual Report on Form 10-K and
our Quarterly Reports on Form 10Q. We intend these forward-looking
statements to speak only as of the time of this release and do not
undertake to update or revise them as more information becomes available.
This press release is also available on the Vince Holding Corp. website (http://investors.vince.com/).
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Vince Holding Corp. and Subsidiaries
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Exhibit (1)
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Condensed Consolidated Statements of Operations
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(Unaudited, amounts in thousands except
percentages,
share and per share data )
|
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Three Months Ended
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Twelve Months Ended
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|
January 30,
|
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January 31,
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|
|
January 30,
|
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|
|
January 31,
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|
|
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|
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|
2016
|
|
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|
|
2015
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|
2016
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2015
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|
Net sales
|
|
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|
|
$
|
81,763
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|
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|
$
|
94,671
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|
$
|
302,457
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$
|
340,396
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|
Cost of products sold
|
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|
40,782
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|
48,915
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|
|
169,941
|
|
|
|
|
|
173,567
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|
Gross profit
|
|
|
|
|
|
40,981
|
|
|
|
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|
45,756
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|
|
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|
132,516
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|
|
|
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|
166,829
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as a % of net sales
|
|
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|
50.1
|
%
|
|
|
|
|
48.3
|
%
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|
|
|
|
43.8
|
%
|
|
|
|
|
49.0
|
%
|
|
Selling, general and administrative expenses
|
|
|
|
|
|
36,157
|
|
|
|
|
|
25,487
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|
|
|
|
|
116,790
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|
|
|
|
|
96,579
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|
|
as a % of net sales
|
|
|
|
|
|
44.2
|
%
|
|
|
|
|
26.9
|
%
|
|
|
|
|
38.6
|
%
|
|
|
|
|
28.4
|
%
|
|
Income from operations
|
|
|
|
|
|
4,824
|
|
|
|
|
|
20,269
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|
|
|
|
|
15,726
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|
|
|
|
|
70,250
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|
|
as a % of net sales
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|
|
|
|
|
5.9
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%
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|
|
|
|
21.4
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%
|
|
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|
|
5.2
|
%
|
|
|
|
|
20.6
|
%
|
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Interest expense, net
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|
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|
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|
1,313
|
|
|
|
|
|
2,128
|
|
|
|
|
|
5,680
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|
|
|
|
|
9,698
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|
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Other expense, net
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|
|
|
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|
343
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|
|
|
|
|
278
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|
|
|
|
|
1,733
|
|
|
|
|
|
835
|
|
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Income before taxes
|
|
|
|
|
|
3,168
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|
|
|
|
|
17,863
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|
|
|
|
|
8,313
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|
|
|
|
|
59,717
|
|
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Provision for Income taxes
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|
|
|
|
|
1,390
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|
|
|
|
|
7,336
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|
|
|
|
|
3,214
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|
|
|
|
|
23,994
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|
|
Net income
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|
|
|
|
$
|
1,778
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|
|
|
|
$
|
10,527
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|
|
|
|
|
5,099
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|
|
|
|
|
35,723
|
|
|
Earnings per share:
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Basic earnings per share
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|
$
|
0.05
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$
|
0.29
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$
|
0.14
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$
|
0.97
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Diluted earnings per share
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|
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|
|
$
|
0.05
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|
$
|
0.28
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|
|
|
$
|
0.14
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|
|
|
$
|
0.93
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|
Weighted average shares outstanding:
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Basic
|
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|
36,778,413
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36,742,943
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36,770,430
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36,730,490
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Diluted
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36,779,438
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|
38,186,236
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|
37,529,227
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|
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|
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|
38,244,906
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Vince Holding Corp. and Subsidiaries
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Exhibit (2)
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Condensed Consolidated Balance Sheets
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(Unaudited, amounts in thousands)
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January 30,
|
|
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|
January 31,
|
|
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|
2016
|
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|
2015
|
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|
ASSETS
|
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Current assets:
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|
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Cash and cash equivalents
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|
$
|
|
6,230
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|
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|
$
|
|
112
|
|
|
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Trade receivables, net
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|
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|
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9,400
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|
|
|
|
|
33,797
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Inventories, net
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|
|
|
|
|
|
36,576
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|
|
|
|
|
37,419
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|
Prepaid expenses and other current assets
|
|
|
|
|
|
|
8,027
|
|
|
|
|
|
9,812
|
|
|
|
Total current assets
|
|
|
|
|
|
|
60,233
|
|
|
|
|
|
81,140
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|
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|
Property, plant and equipment, net
|
|
|
|
|
|
|
37,769
|
|
|
|
|
|
28,349
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|
|
|
Intangible assets, net
|
|
|
|
|
|
|
109,046
|
|
|
|
|
|
109,644
|
|
|
|
Goodwill
|
|
|
|
|
|
|
63,746
|
|
|
|
|
|
63,746
|
|
|
|
Deferred income taxes and other assets
|
|
|
|
|
|
|
92,774
|
|
|
|
|
|
95,769
|
|
|
|
Total assets
|
|
|
|
|
$
|
|
363,568
|
|
|
|
$
|
|
378,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
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|
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|
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|
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Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
|
|
28,719
|
|
|
|
$
|
|
29,118
|
|
|
|
Accrued salaries and employee benefits
|
|
|
|
|
|
|
5,755
|
|
|
|
|
|
7,380
|
|
|
|
Other accrued expenses
|
|
|
|
|
|
|
37,174
|
|
|
|
|
|
27,992
|
|
|
|
Total current liabilities
|
|
|
|
|
|
|
71,648
|
|
|
|
|
|
64,490
|
|
|
|
Long-term debt
|
|
|
|
|
|
|
57,615
|
|
|
|
|
|
84,450
|
|
|
|
Deferred rent
|
|
|
|
|
|
|
14,965
|
|
|
|
|
|
11,676
|
|
|
|
Other liabilities
|
|
|
|
|
|
|
140,838
|
|
|
|
|
|
146,063
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
78,502
|
|
|
|
|
|
71,969
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
|
|
$
|
|
363,568
|
|
|
|
$
|
|
378,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vince Holding Corp. and Subsidiaries
|
|
Exhibit (3)
|
|
|
Reconciliation of net income on a GAAP basis to “Adjusted net
income”
|
|
|
|
|
(Unaudited, amounts in thousands except percentages, share and
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended January 30, 2016
|
|
|
|
|
|
|
As Reported
|
|
|
|
|
Adjustments
|
|
|
|
|
As Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
81,763
|
|
|
|
|
|
|
|
|
|
|
$
|
81,763
|
|
|
Cost of products sold
|
|
|
|
|
40,782
|
|
|
|
|
$
|
2,161
|
|
|
(a)
|
|
|
42,943
|
|
|
Gross profit
|
|
|
|
|
40,981
|
|
|
|
|
|
(2,161
|
)
|
|
|
|
|
38,820
|
|
|
as a % of sales
|
|
|
|
|
50.1
|
%
|
|
|
|
|
|
|
|
|
|
|
47.5
|
%
|
|
Selling, general and administrative expenses
|
|
|
|
|
36,157
|
|
|
|
|
|
323
|
|
|
(b)
|
|
|
36,480
|
|
|
as a % of sales
|
|
|
|
|
44.2
|
%
|
|
|
|
|
|
|
|
|
|
|
44.6
|
%
|
|
Income from operations
|
|
|
|
|
4,824
|
|
|
|
|
|
(2,484
|
)
|
|
|
|
|
2,340
|
|
|
as a % of sales
|
|
|
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
2.9
|
%
|
|
Interest expense, net
|
|
|
|
|
1,313
|
|
|
|
|
|
|
|
|
|
|
|
1,313
|
|
|
Other expense, net
|
|
|
|
|
343
|
|
|
|
|
|
|
|
|
|
|
|
343
|
|
|
Income before income taxes
|
|
|
|
|
3,168
|
|
|
|
|
|
(2,484
|
)
|
|
|
|
|
684
|
|
|
Provision for Income taxes
|
|
|
|
|
1,390
|
|
|
|
|
|
(1,018
|
)
|
|
(c)
|
|
|
372
|
|
|
Net Income
|
|
|
|
$
|
1,778
|
|
|
|
|
$
|
(1,466
|
)
|
|
|
|
$
|
312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
$
|
0.05
|
|
|
|
|
$
|
(0.04
|
)
|
|
|
|
$
|
0.01
|
|
|
Diluted earnings per share
|
|
|
|
$
|
0.05
|
|
|
|
|
$
|
(0.04
|
)
|
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares
|
|
|
|
|
36,778,413
|
|
|
|
|
|
|
|
|
|
|
|
36,778,413
|
|
|
Diluted shares
|
|
|
|
|
36,779,438
|
|
|
|
|
|
|
|
|
|
|
|
36,779,438
|
|
|
(a) To adjust cost of products sold to remove the favorable impact
of the recovery on inventory write downs taken in the second
quarter of approximately $2.2 million.
|
|
(b) To adjust selling, general and administrative expenses to
remove the favorable adjustment to management transition costs
taken in the second quarter of approximately $0.3 million.
|
|
(c) Adjusted amount represents adjusted pretax income multiplied
by a normalized tax rate of 41%. The normalized tax rate was
derived by reference to statutory tax rates in the jurisdictions
in
which the Company operates, without giving effect to the Company’s
valuation allowance or potential use of its net operating loss
carryforwards.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vince Holding Corp. and Subsidiaries
|
|
|
Exhibit (4)
|
|
|
|
Reconciliation of net income on a GAAP basis to “Adjusted net
income”
|
|
|
|
|
|
|
(Unaudited, amounts in thousands except percentages, share and
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the twelve months ended January 30, 2016
|
|
|
|
|
|
|
|
|
As Reported
|
|
|
|
|
Adjustments
|
|
|
|
|
|
As Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
$
|
302,457
|
|
|
|
|
|
|
|
|
|
|
|
$
|
302,457
|
|
|
|
Cost of products sold
|
|
|
|
|
|
169,941
|
|
|
|
|
$
|
(10,300
|
)
|
|
(a)
|
|
|
|
159,641
|
|
|
|
Gross profit
|
|
|
|
|
|
132,516
|
|
|
|
|
|
10,300
|
|
|
|
|
|
|
142,816
|
|
|
|
as a % of sales
|
|
|
|
|
|
43.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
47.2
|
%
|
|
|
Selling, general and administrative expenses
|
|
|
|
|
|
116,790
|
|
|
|
|
|
(2,702
|
)
|
|
(b)
|
|
|
|
114,088
|
|
|
|
as a % of sales
|
|
|
|
|
|
38.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
37.7
|
%
|
|
|
Income from operations
|
|
|
|
|
|
15,726
|
|
|
|
|
|
13,002
|
|
|
|
|
|
|
28,728
|
|
|
|
as a % of sales
|
|
|
|
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
9.5
|
%
|
|
|
Interest expense, net
|
|
|
|
|
|
5,680
|
|
|
|
|
|
|
|
|
|
|
|
|
5,680
|
|
|
|
Other expense, net
|
|
|
|
|
|
1,733
|
|
|
|
|
|
|
|
|
|
|
|
|
1,733
|
|
|
|
Income before income taxes
|
|
|
|
|
|
8,313
|
|
|
|
|
|
13,002
|
|
|
|
|
|
|
21,315
|
|
|
|
Provision for Income taxes
|
|
|
|
|
|
3,214
|
|
|
|
|
|
5,331
|
|
|
(c)
|
|
|
|
8,545
|
|
|
|
Net Income
|
|
|
|
|
$
|
5,099
|
|
|
|
|
$
|
7,671
|
|
|
|
|
|
$
|
12,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
|
$
|
0.14
|
|
|
|
|
$
|
0.21
|
|
|
|
|
|
$
|
0.35
|
|
|
|
Diluted earnings per share
|
|
|
|
|
$
|
0.14
|
|
|
|
|
$
|
0.20
|
|
|
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares
|
|
|
|
|
|
36,770,430
|
|
|
|
|
|
|
|
|
|
|
|
|
36,770,430
|
|
|
|
Diluted shares
|
|
|
|
|
|
37,529,227
|
|
|
|
|
|
|
|
|
|
|
|
|
37,529,227
|
|
|
|
(a) To adjust cost of products sold to remove the net impact of
inventory write downs of approximately $10.3 million primarily
related to excess out of season and current inventory.
|
|
(b) To adjust selling, general and administrative expenses to
remove executive severance costs of $3.4 million and executive
search costs of $0.6 million partially offset by the favorable
impact
of $(1.3) million related to executive stock option forfeitures.
|
|
(c) Adjusted amount represents adjusted pretax income multiplied
by a normalized tax rate of 41%. The normalized tax rate was
derived by reference to statutory tax rates in the jurisdictions
in
which the Company operates, without giving effect to the Company’s
valuation allowance or potential use of its net operating loss
carryforwards.
|
|
|
|
|
|
|
|
|
|
|
|
Vince Holding Corp. and Subsidiaries
|
|
|
Exhibit (5)
|
|
|
|
|
Reconciliation of net income on a GAAP basis to “Adjusted net
income”
|
|
|
|
|
|
|
|
(Unaudited, amounts in thousands except percentages, share and
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the twelve months ended January 31, 2015
|
|
|
|
|
|
|
|
|
As Reported
|
|
|
|
|
Adjustments
|
|
|
|
|
As Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
340,396
|
|
|
|
|
$
|
-
|
|
|
|
|
$
|
340,396
|
|
|
|
|
Cost of products sold
|
|
|
|
|
173,567
|
|
|
|
|
|
-
|
|
|
|
|
|
173,567
|
|
|
|
|
Gross profit
|
|
|
|
|
166,829
|
|
|
|
|
|
-
|
|
|
|
|
|
166,829
|
|
|
|
|
as a % of net sales
|
|
|
|
|
49.0
|
%
|
|
|
|
|
|
|
|
|
|
|
49.0
|
%
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
|
96,579
|
|
|
|
|
|
(571
|
)
|
(a)
|
|
|
|
96,008
|
|
|
|
|
as a % of net sales
|
|
|
|
|
28.4
|
%
|
|
|
|
|
|
|
|
|
|
|
28.2
|
%
|
|
|
|
Income from operations
|
|
|
|
|
70,250
|
|
|
|
|
|
571
|
|
|
|
|
|
70,821
|
|
|
|
|
as a % of net sales
|
|
|
|
|
20.6
|
%
|
|
|
|
|
|
|
|
|
|
|
20.8
|
%
|
|
|
|
Interest expense, net
|
|
|
|
|
9,698
|
|
|
|
|
|
-
|
|
|
|
|
|
9,698
|
|
|
|
|
Other expense, net
|
|
|
|
|
835
|
|
|
|
|
|
-
|
|
|
|
|
|
835
|
|
|
|
|
Income before taxes
|
|
|
|
|
59,717
|
|
|
|
|
|
571
|
|
|
|
|
|
60,288
|
|
|
|
|
Income taxes
|
|
|
|
|
23,994
|
|
|
|
|
|
228
|
|
(b)
|
|
|
|
24,222
|
|
|
|
|
Net income
|
|
|
|
$
|
35,723
|
|
|
|
|
$
|
343
|
|
|
|
|
$
|
36,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
$
|
0.97
|
|
|
|
|
$
|
0.01
|
|
|
|
|
$
|
0.98
|
|
|
|
|
Diluted earnings per share
|
|
|
|
$
|
0.93
|
|
|
|
|
$
|
0.01
|
|
|
|
|
$
|
0.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares
|
|
|
|
|
36,730,490
|
|
|
|
|
|
|
|
|
|
|
|
36,730,490
|
|
|
|
|
Diluted shares
|
|
|
|
|
38,244,906
|
|
|
|
|
|
|
|
|
|
|
|
38,244,906
|
|
|
|
|
(a) To adjust selling, general and administrative expenses to remove
the costs incurred by the Company related to the Secondary Offering
completed in July 2014.
|
|
(b) Represents the tax effect on the Secondary Offering costs
incurred at the Company's estimated annual effective tax rate of 40%.
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160329006452/en/
Source: Vince Holding Corp.