Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 01, 2021 | Jun. 02, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | May 1, 2021 | |
Entity File Number | 001-37849 | |
Entity Registrant Name | AT HOME GROUP INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3229563 | |
Entity Address, Address Line One | 1600 East Plano Parkway | |
Entity Address, City or Town | Plano | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75074 | |
City Area Code | 972 | |
Local Phone Number | 265-6227 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | HOME | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 65,572,833 | |
Current Fiscal Year End Date | --01-29 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001646228 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 01, 2021 | Jan. 30, 2021 | Apr. 25, 2020 |
Current assets: | |||
Cash and cash equivalents | $ 150,547 | $ 125,842 | $ 43,640 |
Inventories, net | 369,014 | 364,473 | 406,972 |
Prepaid expenses | 14,665 | 13,456 | 12,254 |
Income taxes receivable | 22,223 | 38,536 | |
Other current assets | 16,967 | 11,619 | 10,325 |
Total current assets | 551,193 | 537,613 | 511,727 |
Operating lease right-of-use assets | 1,313,104 | 1,289,991 | 1,237,563 |
Property and equipment, net | 713,187 | 688,295 | 715,427 |
Trade name | 1,458 | 1,458 | 1,458 |
Debt issuance costs, net | 4,984 | 5,264 | 1,096 |
Other assets | 1,845 | 2,292 | 1,091 |
Total assets | 2,585,771 | 2,524,913 | 2,468,362 |
Current liabilities: | |||
Accounts payable | 123,219 | 130,327 | 114,504 |
Accrued and other current liabilities | 162,537 | 184,850 | 78,099 |
Revolving line of credit | 342,000 | ||
Current portion of operating lease liabilities | 78,106 | 78,634 | 82,040 |
Current portion of long-term debt | 1,037 | 4,563 | 5,050 |
Income taxes payable | 19,637 | ||
Total current liabilities | 384,536 | 398,374 | 621,693 |
Operating lease liabilities | 1,337,578 | 1,315,625 | 1,257,430 |
Long-term debt | 308,555 | 314,300 | 334,174 |
Deferred income taxes | 6,034 | 9,716 | |
Other long-term liabilities | 2,864 | 2,738 | 3,349 |
Total liabilities | 2,039,567 | 2,040,753 | 2,216,646 |
Stockholders' Equity | |||
Common stock; $0.01 par value; 500,000,000 shares authorized; 65,484,047, 65,342,489 and 64,185,751 shares issued and outstanding, respectively | 655 | 653 | 642 |
Additional paid-in capital | 688,023 | 682,304 | 659,084 |
Accumulated deficit | (142,474) | (198,797) | (408,010) |
Total stockholders' equity | 546,204 | 484,160 | 251,716 |
Total liabilities and stockholders' equity | $ 2,585,771 | $ 2,524,913 | $ 2,468,362 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | May 01, 2021 | Jan. 30, 2021 | Apr. 25, 2020 |
Condensed Consolidated Balance Sheets | |||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, authorized | 500,000,000 | 500,000,000 | 500,000,000 |
Common stock, shares issued | 65,484,047 | 65,342,489 | 64,185,751 |
Common stock, outstanding shares | 65,484,047 | 65,342,489 | 64,185,751 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
May 01, 2021 | Apr. 25, 2020 | |
Condensed Consolidated Statements of Operations | ||
Net sales | $ 537,078 | $ 189,846 |
Cost of sales | 336,803 | 173,496 |
Gross profit | 200,275 | 16,350 |
Operating expenses | ||
Selling, general and administrative expenses | 108,536 | 66,466 |
Impairment charges | 319,732 | |
Depreciation and amortization | 2,317 | 2,213 |
Total operating expenses | 110,853 | 388,411 |
Operating income (loss) | 89,422 | (372,061) |
Interest expense, net | 8,119 | 6,971 |
Loss on extinguishment of debt | 5,253 | |
Income (loss) before income taxes | 76,050 | (379,032) |
Income tax provision (benefit) | 19,727 | (20,090) |
Net income (loss) | $ 56,323 | $ (358,942) |
Net income (loss) per common share: | ||
Basic | $ 0.86 | $ (5.60) |
Diluted | $ 0.81 | $ (5.60) |
Weighted average shares outstanding: | ||
Basic | 65,405,610 | 64,130,000 |
Diluted | 69,544,441 | 64,130,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance - Stockholder's Equity at Jan. 25, 2020 | $ 641 | $ 657,038 | $ (49,068) | $ 608,611 |
Balance - Stockholder's Equity (in shares) at Jan. 25, 2020 | 64,106,061 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation | 2,063 | 2,063 | ||
Exercise of stock options and other awards | $ 1 | (17) | (16) | |
Exercise of stock options and other awards (in shares) | 79,690 | |||
Net income (loss) | (358,942) | (358,942) | ||
Balance - Stockholder's Equity at Apr. 25, 2020 | $ 642 | 659,084 | (408,010) | 251,716 |
Balance - Stockholder's Equity (in shares) at Apr. 25, 2020 | 64,185,751 | |||
Balance - Stockholder's Equity at Jan. 30, 2021 | $ 653 | 682,304 | (198,797) | 484,160 |
Balance - Stockholder's Equity (in shares) at Jan. 30, 2021 | 65,342,489 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation | 4,116 | 4,116 | ||
Exercise of stock options and other awards | $ 2 | 1,603 | 1,605 | |
Exercise of stock options and other awards (in shares) | 141,558 | |||
Net income (loss) | 56,323 | 56,323 | ||
Balance - Stockholder's Equity at May. 01, 2021 | $ 655 | $ 688,023 | $ (142,474) | $ 546,204 |
Balance - Stockholder's Equity (in shares) at May. 01, 2021 | 65,484,047 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
May 01, 2021 | Apr. 25, 2020 | |
Operating Activities | ||
Net income (loss) | $ 56,323 | $ (358,942) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 18,323 | 18,148 |
Non-cash lease expense | 21,076 | 19,420 |
Impairment charges | 319,732 | |
Loss on extinguishment of debt | 5,253 | |
Non-cash interest expense | 1,496 | 550 |
Deferred income taxes | (3,681) | 16,965 |
Stock-based compensation | 4,116 | 2,063 |
Other non-cash losses, net | 237 | 7 |
Changes in operating assets and liabilities: | ||
Inventories | (4,541) | 10,791 |
Prepaid expenses and other current assets | 15,666 | (43,213) |
Other assets | 457 | (48) |
Accounts payable | (9,047) | (7,261) |
Accrued liabilities | (23,971) | (31,933) |
Income taxes payable | 19,280 | (137) |
Operating lease liabilities | (23,207) | (1,345) |
Net cash provided by (used in) operating activities | 77,780 | (55,203) |
Investing Activities | ||
Purchase of property and equipment | (19,272) | (19,236) |
Net proceeds from sale of property and equipment | 59 | |
Net cash used in investing activities | (19,213) | (19,236) |
Financing Activities | ||
Payments under lines of credit | (98,310) | |
Proceeds from lines of credit | 204,640 | |
Payment of Term Loan | (880) | |
Payment of FILO Loans and prepayment premium | (35,225) | |
Payments on long-term debt | (232) | (102) |
Proceeds from issuance of long-term debt | 664 | |
Proceeds from (payments for) stock, including tax | 1,605 | (16) |
Net cash (used in) provided by financing activities | (33,852) | 105,996 |
Increase in cash, cash equivalents and restricted cash | 24,715 | 31,557 |
Cash, cash equivalents and restricted cash, beginning of period | 125,877 | 12,085 |
Cash, cash equivalents and restricted cash, end of period | 150,592 | 43,642 |
Supplemental Cash Flow Information | ||
Cash paid for interest | 13,579 | 6,689 |
Cash received for income taxes | (18,076) | (10) |
Supplemental Information for Non-cash Investing and Financing Activities | ||
Increase in current liabilities of property and equipment | 4,079 | $ 157 |
Property and equipment acquired under finance lease, net | $ 20,160 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
May 01, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation These The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information in accordance with Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented have been included. The condensed consolidated balance sheets as of May 1, 2021 and April 25, 2020, the condensed consolidated statements of operations for the thirteen weeks ended May 1, 2021 and April 25, 2020, the condensed consolidated statements of stockholders’ equity ended May 1, 2021 and April 25, 2020 and the condensed consolidated statements of cash flows for the thirteen weeks ended May 1, 2021 and April 25, 2020 have been prepared by the Company and are unaudited. The consolidated balance sheet as of January 30, 2021 has been derived from the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2021 as filed with the Securities and Exchange Commission (“SEC”) on March 24, 2021 (the “Annual Report”), but does not include all of the information and notes required by GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the fiscal years ended January 30, 2021 and January 25, 2020 and the related notes thereto included in the Annual Report. The Company does not have any components of other comprehensive income recorded within its condensed consolidated financial statements, and, therefore, does not separately present a statement of comprehensive income in its condensed consolidated financial statements. Fiscal Year We report on the basis of a 52- or 53-week fiscal year, which ends on the last Saturday in January. References to a fiscal year mean the year in which that fiscal year ends. References herein to “first fiscal quarter 2022” relate to the thirteen weeks ended May 1, 2021 and references herein to “first fiscal quarter 2021” relate to the thirteen weeks ended April 25, 2020. Consolidation The accompanying condensed consolidated financial statements include the accounts of At Home Group Inc. and its consolidated wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates Preparing condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of certain assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Because of the use of estimates inherent in the financial reporting process, actual results may differ from these estimates. Seasonality Our business has historically been moderately seasonal in nature and, therefore, the results of operations for the thirteen weeks ended May 1, 2021 are not necessarily indicative of the operating results that may be expected for a full fiscal year. Historically, our business has realized a slightly higher portion of net sales and operating income in the second and fourth fiscal quarters attributable primarily to the impact of summer and the year-end holiday decorating seasons, respectively. Restricted Cash Restricted cash consists of cash and cash equivalents reserved for a specific purpose that is not readily available for immediate or general business use. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows (in thousands): May 1, 2021 January 30, 2021 April 25, 2020 Cash and cash equivalents $ 150,547 $ 125,842 $ 43,640 Restricted cash 45 35 2 Cash, cash equivalents and restricted cash $ 150,592 $ 125,877 $ 43,642 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
May 01, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | 2 . Fair Value Measurements We follow the provisions of Accounting Standards Codification (“ASC”) 820 (Topic 820, “Fair Value Measurements and Disclosures” ● Level 1 - Unadjusted quoted market prices for identical assets or liabilities in active markets that we have the ability to access. ● Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable ( e.g. , interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. ● Level 3 - Valuations based on models where significant inputs are not observable. The unobservable inputs reflect our own assumptions about the assumptions that market participants would use. ASC 820 requires us to maximize the use of observable inputs and minimize the use of unobservable inputs. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument is categorized based upon the lowest level of input that is significant to the fair value calculation. The fair value of all current financial instruments approximates carrying value because of the short-term nature of these instruments. We have variable and fixed rates on our long-term debt. We determine fair value on our fixed rate long-term debt by using quoted market prices and current interest rates. We had no variable rate debt outstanding as of May 1, 2021. At May 1, 2021, the fair value of our $275.0 million aggregate principal amount of 8.750% Senior Secured Notes maturing on September 1, 2025 (the “Notes”) was $299.8 million, which was $24.8 million above the carrying value of $275.0 million. Fair value for the Notes was determined using Level 2 inputs. At May 1, 2021, the fair value of our fixed rate mortgage due August 22, 2022 approximated the carrying value of $5.6 million. Fair value for the fixed rate mortgage was determined using Level 2 inputs. |
Goodwill
Goodwill | 3 Months Ended |
May 01, 2021 | |
Goodwill | |
Goodwill | 3. Goodwill During the first fiscal quarter 2021, because we continued to experience a decline in operating performance and a sustained decline in our market capitalization substantially driven by the global outbreak of COVID-19, coupled with a decision to further reduce our near-term growth model, we conducted an interim impairment testing of goodwill. Based on the results of that test, we concluded that goodwill was fully impaired and we recognized a non-cash impairment charge of $319.7 million, which is presented on the condensed consolidated statement of operations for the thirteen weeks ended April 25, 2020. The projected cash flows used in the income approach for assessing goodwill valuation included numerous assumptions, such as sales projections assuming positive comparable store sales growth, operating margins, store count and capital expenditures, all of which were derived from our long-term forecasts as of such testing date. Additionally, the assumptions regarding weighted average cost of capital used information from comparable companies and management's judgment related to risks associated with the operations of our reporting unit. |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 3 Months Ended |
May 01, 2021 | |
Accrued and Other Current Liabilities | |
Accrued and Other Current Liabilities | 4. Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following (in thousands): May 1, 2021 January 30, 2021 April 25, 2020 Inventory in-transit $ 22,878 $ 30,553 $ 2,161 Accrued payroll and other employee-related liabilities 28,293 42,592 10,239 Accrued taxes, other than income 29,398 25,124 19,830 Accrued inbound freight 25,207 27,511 4,760 Accrued interest 4,234 11,304 5,069 Insurance liabilities 4,252 1,344 2,494 Gift card liability 10,631 10,732 8,898 Construction costs 7,906 5,231 5,550 Sales returns reserve 7,420 3,790 4,129 Accrued marketing 3,372 5,831 855 Other 18,946 20,838 14,114 Total accrued liabilities $ 162,537 $ 184,850 $ 78,099 |
Revolving Line of Credit
Revolving Line of Credit | 3 Months Ended |
May 01, 2021 | |
Revolving Line of Credit | |
Revolving Line of Credit | 5. Revolving Line of Credit In October 2011, we entered into a senior secured asset-based lending credit facility (the “ABL Facility”), which originally provided for cash borrowings or issuances of letters of credit of up to $80.0 million based on defined percentages of eligible inventory and credit card receivable balances. We have subsequently amended the credit agreement that governs the ABL Facility (the “ABL Agreement”) from time to time to, among other things, increase the aggregate revolving commitments available thereunder. After giving effect to prior amendments to the ABL Agreement, the ABL Agreement currently provides for (i) aggregate revolving commitments of $425.0 million, with a sublimit for the issuance of letters of credit of $50.0 million and a sublimit for the issuance of swingline loans of $20.0 million and (ii) a tranche of term loans in a principal amount of $35.0 million on a “first-in, last out” basis (the “FILO Loans”). The ABL Agreement was further amended in fiscal year 2021 to extend the maturity date of the revolving credit loans under the ABL Facility as described below. For more information on the FILO Loans, see “ Note 6 – Long-Term Debt On August 28, 2020, At Home Holding III Inc. (“At Home III” or the “Issuer”), and At Home Stores LLC (collectively, the “ABL Borrowers”) and the guarantors under the ABL Facility entered into an amendment to the ABL Agreement (the “Ninth Amendment”) with Bank of America, N.A., which, among other things, extended the maturity of revolving credit loans provided thereunder to the earlier of (i) August 28, 2025 and (ii) the date of termination of the commitments under such revolving credit facility pursuant to the terms of the ABL Agreement. As of May 1, 2021, we had no borrowings outstanding in respect of the revolving credit loans under the ABL Facility, $1.2 million in face amount of letters of credit had been issued and we had availability of $325.2 million. Revolving credit loans outstanding under the ABL Facility bear interest at a rate per annum equal to, at our option: (x) the higher of (i) the Federal Funds Rate plus 1/2 of 1.00% plus each applicable margin The ABL Facility contains a number of covenants that, among other things, restrict the ability of the ABL Borrowers, subject to specified exceptions, to incur additional debt; incur additional liens and contingent liabilities; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve ourselves; engage in businesses that are not in a related line of business; make loans, advances or guarantees; pay dividends; engage in transactions with affiliates; and make investments. In addition, the ABL Agreement contains certain cross-default provisions. The ABL Agreement includes a minimum availability covenant whereby the ABL Borrowers and their restricted subsidiaries must maintain at all times availability (i.e., an amount equal to (i) the lesser of (A) the aggregate revolving credit commitments at such time and (B) the revolving borrowing base minus (ii) the total revolving credit loans outstanding) in excess of the greater of (x) $35.0 million and 10.0% of the combined loan cap specified in the ABL Agreement (i.e., the sum of (i) the lesser of (A) the aggregate revolving credit commitments at such time and (B) the revolving borrowing base and (ii) the total outstanding amount of FILO Loans). As of May 1, 2021, the minimum availability required by the covenant was $35.0 million. The ABL Agreement also includes a mandatory prepayment provision requiring the ABL Borrowers to prepay any outstanding revolving credit loans to the extent the total amount of cash and cash equivalents of At Home Holding II Inc. (“At Home II”), the ABL Borrowers and their restricted subsidiaries (subject to certain exclusions) exceeds $35.0 million. As of May 1, 2021, we were in compliance with all covenants prescribed in the ABL Facility. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
May 01, 2021 | |
Long-Term Debt | |
Long-Term Debt | 6. Long-Term Debt Long-term debt consists of the following (in thousands): May 1, 2021 January 30, 2021 April 25, 2020 Senior Secured Notes $ 275,000 $ 275,000 $ — Term Loan — — 335,102 FILO Loans — 33,250 — Note payable, bank (a) 5,635 5,675 5,800 Note payable — — 664 Obligations under finance leases 36,064 16,260 1,456 Total debt 316,699 330,185 343,022 Less: current maturities 1,037 4,563 5,050 Less: unamortized deferred debt issuance costs 7,107 11,322 3,798 Long-term debt $ 308,555 $ 314,300 $ 334,174 (a) Matures August 22, 2022; $34.5 thousand payable monthly, including interest at 4.50% with the remaining balance due at maturity; secured by the location’s land and building. On June 5, 2015, our indirect wholly owned subsidiary, At Home III, entered into the first lien credit agreement (as amended from time to time), by and among At Home III, At Home II, certain indirect subsidiaries of At Home II, various lenders and Bank of America, N.A., as administrative agent and collateral agent, which provided for a term loan in an aggregate principal amount of $350 million (the “Term Loan”) maturing on June 3, 2022. On August 20, 2020, in connection with the issuance of the Notes, we used the net proceeds of the issuance of the Notes together with cash on our balance sheet to repay in full the principal amount of indebtedness outstanding under the Term Loan. The repayment resulted in a loss on extinguishment of debt in the amount of $3.2 million, which was recognized during the third fiscal quarter 2021. On June 12, 2020, we entered into the Eighth Amendment to the ABL Agreement to provide for the FILO Loans, subject to a borrowing base. The net proceeds of the FILO Loans were used to repay a portion of the outstanding revolving credit loans under the ABL Facility. On April 30, 2021, we used currently available cash to repay in full the principal amount of indebtedness outstanding under the FILO Loans for total cash consideration of $34.6 million. The repayment included a $2.0 million prepayment premium, $0.3 million of accrued interest and resulted in a loss on extinguishment of debt in the amount of $5.3 million, which was recognized during the first fiscal quarter 2022. On August 20, 2020, At Home III completed the offering (the “Notes Offering”) of $275.0 million aggregate principal amount of the Notes. The Notes Offering was conducted pursuant to Rule 144A and Regulation S promulgated under the Securities Act, and the Notes have not been registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The Notes are governed by an indenture dated August 20, 2020 (the “Indenture”), by and among At Home III, the guarantors from time to time party thereto, and Wells Fargo Bank, National Association, as trustee (the “Trustee) and as collateral agent (the “Collateral Agent”). Net proceeds of the issuance of the Notes were used, together with cash on our balance sheet, to repay all amounts outstanding under the Term Loan. The Notes bear interest at a fixed rate of 8.750% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2021, and will mature on September 1, 2025. The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by (i) At Home II, a Delaware corporation and direct parent of At Home III and (ii) certain of At Home III’s existing and future wholly owned domestic restricted subsidiaries (collectively, the “Guarantors”), all of which also guarantee the ABL Facility. The Notes and the related guarantees are secured (i) on a first-priority basis by substantially all of the assets of At Home III and the Guarantors other than the ABL Priority Collateral (as defined below) (such assets, the “Notes Priority Collateral”) and (ii) on a second-priority basis by substantially all of the cash, cash equivalents, deposit accounts, accounts receivables, other receivables, tax refunds and inventory, and certain related assets of At Home III and the Guarantors that secure the ABL Facility on a first priority basis (such assets, the “ABL Priority Collateral”), in each case subject to certain exceptions. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
May 01, 2021 | |
Related Party Transactions | |
Related Party Transactions | 7. Related Party Transactions 360 Holdings III Corp (“360 Holdings”) has historically been a related party to us by virtue of common ownership through funds of AEA Investors LP, one of our prior significant stockholders. We are parties to a royalty agreement with 360 Holdings whereby we develop and sell branded product that incorporates intellectual property of 360 Holdings. Additionally, MerchSource LLC is a direct subsidiary of 360 Holdings (and together with 360 Holdings, “360 Brands”) from which we purchase inventory. On November 5, 2020, AEA Investors LP sold the remainder of its stockholdings and ceased to be a stockholder of the Company and 360 Brands is no longer a related party. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
May 01, 2021 | |
Revenue Recognition | |
Revenue Recognition | 8. Revenue Recognition We sell a broad assortment of home décor, including home furnishings and accent décor, and recognize revenue when the customer takes possession or control of goods at the time the sale is completed at the store register. Accordingly, we implicitly enter into a contract with customers at the point of sale. In addition to retail store sales, we also generate revenue through the sale of gift cards and through incentive arrangements associated with our credit card program. As noted in the segment information in the notes to the consolidated financial statements included in our Annual Report, our business consists of one reportable segment. In accordance with ASC 606, we disaggregate net sales into the following product categories: Thirteen Weeks Ended May 1, 2021 April 25, 2020 Home furnishings 49 % 48 % Accent décor 48 48 Other 3 4 Total 100 % 100 % Contract liabilities are recognized primarily for gift card sales. Cash received from the sale of gift cards is recorded as a contract liability in accrued and other current liabilities, and we recognize revenue upon the customer’s redemption of the gift card. Gift card breakage is recognized as revenue in proportion to the pattern of customer redemptions by applying an estimated breakage rate that takes into account historical patterns of redemptions and deactivations of gift cards. We recognized $5.0 million and $2.3 million in gift card redemption revenue for the thirteen weeks ended May 1, 2021 and April 25, 2020, respectively, and recognized an immaterial amount in gift card breakage revenue for each of the thirteen weeks ended May 1, 2021 and April 25, 2020. Of the total gift card redemption revenue, $1.8 million and $1.2 million for the thirteen weeks ended May 1, 2021 and April 25, 2020, respectively, related to gift cards issued in prior periods. We had outstanding gift card liabilities of $10.6 million, $10.7 million and $8.9 million as of May 1, 2021, January 30, 2021 and April 25, 2020, respectively, which are included in accrued and other current liabilities. In fiscal year 2018, we launched a credit card program by which credit is extended to eligible customers through At Home branded credit cards with Synchrony Bank (“Synchrony”). Through the launch of the credit card program, we received reimbursement of costs associated with the launch of the credit card program as well as a one-time payment which has been deferred over the initial seven-year term of the agreement with Synchrony. We receive ongoing payments from Synchrony based on sales transacted on our credit cards and for reimbursement of joint marketing and advertising activities. During the thirteen weeks ended May 1, 2021 and April 25, 2020, we recognized $0.8 million and $0.5 million, respectively, in revenue from our credit card program within net sales when earned. Customers may return purchased items for an exchange or refund. We utilize the expected value methodology in which different scenarios, including current sales return data and historical quarterly sales return rates, are used to develop an estimated sales return rate. We present the sales returns reserve within other current liabilities and the estimated value of the inventory that will be returned within other current assets in the condensed consolidated balance sheets. |
Income Taxes
Income Taxes | 3 Months Ended |
May 01, 2021 | |
Income Taxes | |
Income Taxes | 9. Income Taxes Our effective tax rate for the thirteen weeks ended May 1, 2021 was 25.9% compared to 5.3% for the thirteen weeks ended April 25, 2020. The effective tax rate for the thirteen weeks ended May 1, 2021 differs from the federal statutory rate primarily due to the impact of state and local income taxes and executive compensation limitations. The effective tax rate for the thirteen weeks ended April 25, 2020 differs from the federal statutory rate primarily due to the goodwill impairment charge that was non-deductible for income tax purposes, the income tax benefit of $5.2 million from a tax loss carryback under the CARES Act and to a lesser extent the impact of state and local income taxes. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 01, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. Commitments and Contingencies Leases We assess whether a contract contains a lease on its execution date. If the contract contains a lease, lease classification is assessed upon its commencement date under ASC 842. For leases that are determined to qualify for treatment as operating leases, rent expense is recognized on a straight-line basis over the lease term. Leases that are determined to qualify for treatment as finance leases recognize interest expense as determined using the effective interest method with corresponding amortization of the right-of-use assets. We enter into leases primarily for real estate assets to support our operations in the normal course of business. As of May 1, 2021, our material operating leases consisted of our corporate headquarters, distribution centers and the majority of our store properties. We also had four real estate leases for store properties that qualify for treatment as finance leases. Our leases generally have terms of 5 to 20 years , with renewal options that generally range from 5 to 20 years in the aggregate and are subject to escalating rent increases. Our leases may include variable charges at the discretion of the lessor. Certain of our leases include rent escalations based on inflation indexes and/or contingent rental provisions that include a fixed base rent plus an additional percentage of the respective stores’ sales in excess of stipulated amounts. Operating lease liabilities are calculated using the prevailing index or rate at the commencement of the lease. Subsequent escalations in the index or rate and contingent rental payments are recognized as variable lease expenses. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease cost were as follows (in thousands): Thirteen Weeks Ended May 1, 2021 April 25, 2020 Operating lease cost (a) $ 41,780 $ 39,646 Variable lease cost 6,603 6,212 Finance lease cost: Amortization of right-of-use assets 326 74 Interest on lease liabilities 252 29 Total lease cost (b) $ 48,961 $ 45,961 (a) Net of an immaterial amount of sublease income. (b) Short-term lease cost for the thirteen weeks ended May 1, 2021 and April 25, 2020 was immaterial. The table below presents additional information related to our leases as of May 1, 2021. Weighted average remaining lease term Operating leases 11.8 years Finance leases 14.2 years Weighted average discount rate Operating leases 6.06 % Finance leases 5.82 % Supplemental disclosures of cash flow information related to leases were as follows (in thousands): Thirteen Weeks Ended May 1, 2021 April 25, 2020 Cash paid for operating lease liabilities (a) $ 43,798 $ 22,414 Right-of-use assets obtained in exchange for operating lease liabilities $ 44,189 $ 60,643 Cash paid for finance lease liabilities $ 193 $ 77 (a) During the thirteen weeks ended April 25, 2020, we had negotiated or were in the process of negotiating rent deferral or abatement with certain lessors. In response to the COVID-19 pandemic, we began renegotiating certain store lease agreements in the first and second fiscal quarters 2021 to obtain rent relief in an effort to partially offset the negative financial impacts. On April 10, 2020, the Financial Accounting Standards Board (“FASB”) staff issued guidance for lease concessions provided to lessees in response to the effects of the COVID-19 pandemic. This guidance allows lessees to make an election not to evaluate whether a lease concession provided by a lessor should be accounted for as a lease modification in the event the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. We elected this practical expedient in our accounting for any lease concessions provided in connection with our renegotiated lease agreements that did not result in a substantial increase in the rights of the lessor or obligations to the lessee. As a result of this election, we had deferred payments of $9.6 million in operating lease costs on our condensed consolidated balance sheet as of May 1, 2021. Litigation We are subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on our consolidated financial position, results of operations or liquidity. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
May 01, 2021 | |
Earnings Per Share | |
Earnings Per Share | 11. Earnings Per Share In accordance with ASC 260 (Topic 260, “Earnings Per Share” The following table sets forth the calculation of basic and diluted earnings (loss) per share for the thirteen weeks ended May 1, 2021 and April 25, 2020 as follows (dollars in thousands, except share and per share data): Thirteen Weeks Ended May 1, 2021 April 25, 2020 Numerator: Net income (loss) $ 56,323 $ (358,942) Denominator: Weighted average common shares outstanding-basic 65,405,610 64,130,000 Effect of dilutive securities: Stock options and restricted stock units 4,138,831 — Weighted average common shares outstanding-diluted 69,544,441 64,130,000 Net income (loss) per common share: Basic $ 0.86 $ (5.60) Diluted $ 0.81 $ (5.60) For the thirteen weeks ended May 1, 2021 and April 25, 2020, 812,457 and 6,534,874, respectively, of stock options and other awards were excluded from the calculation of diluted net income (loss) per common share since their effect was anti-dilutive, of which 24,709 stock options and other awards would have been included as dilutive had we not recognized a net loss for the thirteen weeks ended April 25, 2020. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
May 01, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | 12. Stock-Based Compensation On March 30, 2021, we made grants of 347,408 stock options and 229,250 performance share units (“PSUs”) to members of our senior management team and 61,777 restricted stock units (“RSUs”) to our independent directors and members of our senior management team under the 2016 Equity Plan. Non-cash, stock-based compensation expense associated with the grant of stock options is $5.6 million, which will be expensed over the requisite service period of three years. Non-cash, stock-based compensation expense associated with the grant of RSUs is $1.6 million, which will be expensed over the requisite service period of one The PSUs will be earned based on the achievement of the following performance metrics: (i) adjusted net income (representing 50% of the PSU target value) and (ii) total sales growth (representing 50% of the PSU target value), in each case, with three discrete performance target goals, the first of which was approved on March 30, 2021 with the remaining two performance target goals to be approved at or near the beginning of fiscal year 2023 and fiscal year 2024, respectively. Non-cash, stock-based compensation expense associated with the first performance target goal of the PSUs is $1.8 million at target, which will be expensed over the requisite service period of approximately three years. Following approval of each remaining performance target goal, the related expense will commence being recognized for the applicable service period. Any earned PSUs shall vest in full on the later of (i) the third anniversary of the grant date or (ii) the performance determination date, subject to the participant's continued employment through each vesting date, or other vesting conditions specified therein. Forfeiture assumptions for the grants were estimated based on historical experience. |
Subsequent Events
Subsequent Events | 3 Months Ended |
May 01, 2021 | |
Subsequent Events | |
Subsequent Events | 13. Subsequent Event On May 6, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Ambience Parent, Inc., a Delaware corporation (“Parent”), and Ambience Merger Sub, Inc., a Delaware corporation and an indirect wholly owned subsidiary of Parent (“Merger Sub”). Parent and Merger Sub are affiliates of investment funds advised by Hellman & Friedman LLC. The Merger Agreement provides that Merger Sub will be merged with and into the Company, with the Company continuing as the surviving corporation and as an indirect wholly owned subsidiary of Parent. The Merger Agreement provides that each outstanding share of common stock of the Company will automatically be cancelled and converted into the right to receive $36.00 in cash, without interest and subject to applicable withholding taxes. The obligation of the parties to complete the merger is subject to customary closing conditions, including, among others, (i) the adoption of the Merger Agreement by a majority of outstanding shares of common stock entitled to vote thereon, (ii) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and (iii) the expiration of a 40-day “go-shop” period. The Merger Agreement contains certain termination rights for the parties. Upon termination of the Merger Agreement under specified circumstances, the Company will be required to pay Parent a termination fee of $77.2 million; provided, that if the Company terminates the Merger Agreement during the 40-day go-shop period to enter into a definitive agreement for an alternative acquisition, then the termination fee payable by the Company to Parent will be $38.6 million. The Merger Agreement further provides that Parent will be required to pay the Company a termination fee of $128.7 million if the Merger Agreement is terminated under specified circumstances. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
May 01, 2021 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation These The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information in accordance with Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented have been included. The condensed consolidated balance sheets as of May 1, 2021 and April 25, 2020, the condensed consolidated statements of operations for the thirteen weeks ended May 1, 2021 and April 25, 2020, the condensed consolidated statements of stockholders’ equity ended May 1, 2021 and April 25, 2020 and the condensed consolidated statements of cash flows for the thirteen weeks ended May 1, 2021 and April 25, 2020 have been prepared by the Company and are unaudited. The consolidated balance sheet as of January 30, 2021 has been derived from the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2021 as filed with the Securities and Exchange Commission (“SEC”) on March 24, 2021 (the “Annual Report”), but does not include all of the information and notes required by GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the fiscal years ended January 30, 2021 and January 25, 2020 and the related notes thereto included in the Annual Report. The Company does not have any components of other comprehensive income recorded within its condensed consolidated financial statements, and, therefore, does not separately present a statement of comprehensive income in its condensed consolidated financial statements. |
Fiscal Year | Fiscal Year We report on the basis of a 52- or 53-week fiscal year, which ends on the last Saturday in January. References to a fiscal year mean the year in which that fiscal year ends. References herein to “first fiscal quarter 2022” relate to the thirteen weeks ended May 1, 2021 and references herein to “first fiscal quarter 2021” relate to the thirteen weeks ended April 25, 2020. |
Consolidation | Consolidation The accompanying condensed consolidated financial statements include the accounts of At Home Group Inc. and its consolidated wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates Preparing condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of certain assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Because of the use of estimates inherent in the financial reporting process, actual results may differ from these estimates. |
Seasonality | Seasonality Our business has historically been moderately seasonal in nature and, therefore, the results of operations for the thirteen weeks ended May 1, 2021 are not necessarily indicative of the operating results that may be expected for a full fiscal year. Historically, our business has realized a slightly higher portion of net sales and operating income in the second and fourth fiscal quarters attributable primarily to the impact of summer and the year-end holiday decorating seasons, respectively. |
Restricted Cash | Restricted Cash Restricted cash consists of cash and cash equivalents reserved for a specific purpose that is not readily available for immediate or general business use. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows (in thousands): May 1, 2021 January 30, 2021 April 25, 2020 Cash and cash equivalents $ 150,547 $ 125,842 $ 43,640 Restricted cash 45 35 2 Cash, cash equivalents and restricted cash $ 150,592 $ 125,877 $ 43,642 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
May 01, 2021 | |
Summary of Significant Accounting Policies | |
Schedule of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows (in thousands): May 1, 2021 January 30, 2021 April 25, 2020 Cash and cash equivalents $ 150,547 $ 125,842 $ 43,640 Restricted cash 45 35 2 Cash, cash equivalents and restricted cash $ 150,592 $ 125,877 $ 43,642 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 3 Months Ended |
May 01, 2021 | |
Accrued and Other Current Liabilities | |
Schedule of accrued and other current liabilities | Accrued and other current liabilities consisted of the following (in thousands): May 1, 2021 January 30, 2021 April 25, 2020 Inventory in-transit $ 22,878 $ 30,553 $ 2,161 Accrued payroll and other employee-related liabilities 28,293 42,592 10,239 Accrued taxes, other than income 29,398 25,124 19,830 Accrued inbound freight 25,207 27,511 4,760 Accrued interest 4,234 11,304 5,069 Insurance liabilities 4,252 1,344 2,494 Gift card liability 10,631 10,732 8,898 Construction costs 7,906 5,231 5,550 Sales returns reserve 7,420 3,790 4,129 Accrued marketing 3,372 5,831 855 Other 18,946 20,838 14,114 Total accrued liabilities $ 162,537 $ 184,850 $ 78,099 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
May 01, 2021 | |
Long-Term Debt | |
Schedule of long-term debt | Long-term debt consists of the following (in thousands): May 1, 2021 January 30, 2021 April 25, 2020 Senior Secured Notes $ 275,000 $ 275,000 $ — Term Loan — — 335,102 FILO Loans — 33,250 — Note payable, bank (a) 5,635 5,675 5,800 Note payable — — 664 Obligations under finance leases 36,064 16,260 1,456 Total debt 316,699 330,185 343,022 Less: current maturities 1,037 4,563 5,050 Less: unamortized deferred debt issuance costs 7,107 11,322 3,798 Long-term debt $ 308,555 $ 314,300 $ 334,174 (a) Matures August 22, 2022; $34.5 thousand payable monthly, including interest at 4.50% with the remaining balance due at maturity; secured by the location’s land and building. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
May 01, 2021 | |
Revenue Recognition | |
Schedule of disaggregation of revenue | In accordance with ASC 606, we disaggregate net sales into the following product categories: Thirteen Weeks Ended May 1, 2021 April 25, 2020 Home furnishings 49 % 48 % Accent décor 48 48 Other 3 4 Total 100 % 100 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
May 01, 2021 | |
Commitments and Contingencies | |
Schedule of lease costs | The components of lease cost were as follows (in thousands): Thirteen Weeks Ended May 1, 2021 April 25, 2020 Operating lease cost (a) $ 41,780 $ 39,646 Variable lease cost 6,603 6,212 Finance lease cost: Amortization of right-of-use assets 326 74 Interest on lease liabilities 252 29 Total lease cost (b) $ 48,961 $ 45,961 (a) Net of an immaterial amount of sublease income. (b) Short-term lease cost for the thirteen weeks ended May 1, 2021 and April 25, 2020 was immaterial. |
Schedule of weighted average remaining lease term and discount rate | The table below presents additional information related to our leases as of May 1, 2021. Weighted average remaining lease term Operating leases 11.8 years Finance leases 14.2 years Weighted average discount rate Operating leases 6.06 % Finance leases 5.82 % |
Schedule of supplemental cash flow information | Supplemental disclosures of cash flow information related to leases were as follows (in thousands): Thirteen Weeks Ended May 1, 2021 April 25, 2020 Cash paid for operating lease liabilities (a) $ 43,798 $ 22,414 Right-of-use assets obtained in exchange for operating lease liabilities $ 44,189 $ 60,643 Cash paid for finance lease liabilities $ 193 $ 77 (a) During the thirteen weeks ended April 25, 2020, we had negotiated or were in the process of negotiating rent deferral or abatement with certain lessors. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
May 01, 2021 | |
Earnings Per Share | |
Schedule of calculation of basic and diluted earnings per share | The following table sets forth the calculation of basic and diluted earnings (loss) per share for the thirteen weeks ended May 1, 2021 and April 25, 2020 as follows (dollars in thousands, except share and per share data): Thirteen Weeks Ended May 1, 2021 April 25, 2020 Numerator: Net income (loss) $ 56,323 $ (358,942) Denominator: Weighted average common shares outstanding-basic 65,405,610 64,130,000 Effect of dilutive securities: Stock options and restricted stock units 4,138,831 — Weighted average common shares outstanding-diluted 69,544,441 64,130,000 Net income (loss) per common share: Basic $ 0.86 $ (5.60) Diluted $ 0.81 $ (5.60) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | May 01, 2021 | Jan. 30, 2021 | Apr. 25, 2020 | Jan. 25, 2020 |
Summary of Significant Accounting Policies | ||||
Cash and cash equivalents | $ 150,547 | $ 125,842 | $ 43,640 | |
Restricted cash | 45 | 35 | 2 | |
Cash, cash equivalents and restricted cash | $ 150,592 | $ 125,877 | $ 43,642 | $ 12,085 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | May 01, 2021 | Aug. 20, 2020 | Jun. 05, 2015 |
8.750 Senior Notes | |||
Fair Value Measurements | |||
Principal amount | $ 275 | ||
Interest rate, stated percentage | 8.75% | ||
First Lien Agreement | Term Loan | |||
Fair Value Measurements | |||
Principal amount | $ 350 | ||
Level 2 | Senior Secured Notes | |||
Fair Value Measurements | |||
Carrying value of debt | $ 275 | ||
Principal amount | $ 275 | ||
Interest rate, stated percentage | 8.75% | ||
Notes payable | $ 299.8 | ||
Excess of carrying amount | 24.8 | ||
Level 2 | Fixed rate mortgage | |||
Fair Value Measurements | |||
Carrying value of debt | $ 5.6 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 3 Months Ended |
Apr. 25, 2020USD ($) | |
Goodwill | |
Impairment charges | $ 319.7 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | May 01, 2021 | Jan. 30, 2021 | Apr. 25, 2020 |
Accrued and Other Current Liabilities | |||
Inventory in-transit | $ 22,878 | $ 30,553 | $ 2,161 |
Accrued payroll and other employee-related liabilities | 28,293 | 42,592 | 10,239 |
Accrued taxes, other than income | 29,398 | 25,124 | 19,830 |
Accrued inbound freight | 25,207 | 27,511 | 4,760 |
Accrued interest | 4,234 | 11,304 | 5,069 |
Insurance liabilities | 4,252 | 1,344 | 2,494 |
Gift card liability | 10,631 | 10,732 | 8,898 |
Construction costs | 7,906 | 5,231 | 5,550 |
Sales returns reserve | 7,420 | 3,790 | 4,129 |
Accrued marketing | 3,372 | 5,831 | 855 |
Other | 18,946 | 20,838 | 14,114 |
Total accrued liabilities | $ 162,537 | $ 184,850 | $ 78,099 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 01, 2021 | Apr. 25, 2020 | Oct. 31, 2011 | |
Revolving Line of Credit | |||
Outstanding under the ABL credit agreement | $ 342,000 | ||
Additional borrowings | $ 204,640 | ||
ABL Credit Facility | |||
Revolving Line of Credit | |||
Maximum borrowing capacity | $ 425,000 | $ 80,000 | |
Principal amount | 35,000 | ||
Effective interest rate (as a percent) | 2.80% | ||
Outstanding under the ABL credit agreement | 0 | ||
Available borrowing capacity | $ 325,200 | ||
Floor interest rate | 1.00% | ||
Financial covenants, minimum loan cap, amount | $ 35,000 | ||
Additional borrowings | $ 0 | ||
Loan cap rate | 10.00% | ||
Minimum capacity currently available under the terms of credit facility | $ 35,000 | ||
ABL Credit Facility | Maximum | |||
Revolving Line of Credit | |||
Cash limit for prepayment provision | $ 35,000 | ||
ABL Credit Facility | Federal Funds Rate | |||
Revolving Line of Credit | |||
Basis spread on variable rate | 0.50% | ||
ABL Credit Facility | Federal Funds Rate | Minimum | |||
Revolving Line of Credit | |||
Applicable margin | 0.75% | ||
ABL Credit Facility | Federal Funds Rate | Maximum | |||
Revolving Line of Credit | |||
Applicable margin | 1.25% | ||
ABL Credit Facility | LIBOR | |||
Revolving Line of Credit | |||
Basis spread on variable rate | 1.00% | ||
ABL Credit Facility | LIBOR | Minimum | |||
Revolving Line of Credit | |||
Applicable margin | 0.75% | ||
Applicable margin on bank's LIBOR | 1.75% | ||
ABL Credit Facility | LIBOR | Maximum | |||
Revolving Line of Credit | |||
Applicable margin | 1.25% | ||
Applicable margin on bank's LIBOR | 2.25% | ||
ABL Credit Facility | Bank's Prime rate | Minimum | |||
Revolving Line of Credit | |||
Applicable margin | 0.75% | ||
ABL Credit Facility | Bank's Prime rate | Maximum | |||
Revolving Line of Credit | |||
Applicable margin | 1.25% | ||
Letters of Credit | |||
Revolving Line of Credit | |||
Maximum borrowing capacity | $ 50,000 | ||
Outstanding under the ABL credit agreement | 1,200 | ||
Swingline loan | |||
Revolving Line of Credit | |||
Maximum borrowing capacity | $ 20,000 |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Details) - USD ($) | 3 Months Ended | ||
May 01, 2021 | Jan. 30, 2021 | Apr. 25, 2020 | |
Long-Term Debt | |||
Total debt | $ 316,699,000 | $ 330,185,000 | $ 343,022,000 |
Less: current maturities | 1,037,000 | 4,563,000 | 5,050,000 |
Less: unamortized deferred debt issuance costs | 7,107,000 | 11,322,000 | 3,798,000 |
Long-term debt | 308,555,000 | 314,300,000 | 334,174,000 |
Senior Secured Notes | |||
Long-Term Debt | |||
Total debt | 275,000,000 | 275,000,000 | |
Term Loan | |||
Long-Term Debt | |||
Total debt | 335,102,000 | ||
FILO Loans | |||
Long-Term Debt | |||
Total debt | 33,250,000 | ||
Note payable, bank | |||
Long-Term Debt | |||
Total debt | 5,635,000 | 5,675,000 | 5,800,000 |
Installment payable | $ 34,500 | ||
Interest rate, stated percentage | 4.50% | ||
Note payable | |||
Long-Term Debt | |||
Total debt | 664,000 | ||
Obligations under finance leases | |||
Long-Term Debt | |||
Obligations under finance leases | $ 36,064,000 | $ 16,260,000 | $ 1,456,000 |
Long-Term Debt - First Lien and
Long-Term Debt - First Lien and Second Lien Agreement (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | May 01, 2021 | Oct. 24, 2020 | Jun. 05, 2015 |
Long-Term Debt | ||||
Loss on extinguishment of debt | $ 5,253 | |||
First Lien Agreement | ||||
Long-Term Debt | ||||
Loss on extinguishment of debt | $ 3,200 | |||
Term Loan | First Lien Agreement | ||||
Long-Term Debt | ||||
Debt instrument, face value | $ 350,000 | |||
FILO Loans | ||||
Long-Term Debt | ||||
Loss on extinguishment of debt | 5,300 | |||
Payments on long-term debt | $ 34,600 | |||
Prepayment premium | 2,000 | |||
Accrued interest | $ 300 |
Long-Term Debt - Senior Notes (
Long-Term Debt - Senior Notes (Details) - 8.750 Senior Notes $ in Millions | Aug. 20, 2020USD ($) |
Long-term Debt, by Current and Noncurrent [Abstract] | |
Debt instrument, face value | $ 275 |
Interest rate, stated percentage | 8.75% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of revenue (Details) - segment | 3 Months Ended | |
May 01, 2021 | Apr. 25, 2020 | |
Revenue Recognition | ||
Number of reportable segments | 1 | |
Revenue percentage | 100.00% | 100.00% |
Home furnishings | ||
Revenue Recognition | ||
Revenue percentage | 49.00% | 48.00% |
Accent decor | ||
Revenue Recognition | ||
Revenue percentage | 48.00% | 48.00% |
Other | ||
Revenue Recognition | ||
Revenue percentage | 3.00% | 4.00% |
Revenue Recognition - Narrative
Revenue Recognition - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 01, 2021 | Apr. 25, 2020 | Jan. 30, 2021 | |
Revenue Recognition | |||
Revenue | $ 537,078 | $ 189,846 | |
Gift card liability | $ 10,631 | 8,898 | $ 10,732 |
Synchrony Bank | |||
Revenue Recognition | |||
Amortization period of capitalized contract costs | 7 years | ||
Gift Card Redemption | |||
Revenue Recognition | |||
Revenue | $ 5,000 | 2,300 | |
Revenue recognized | 1,800 | 1,200 | |
Credit Card Program | |||
Revenue Recognition | |||
Revenue | $ 800 | $ 500 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 01, 2021 | Apr. 25, 2020 | |
Effective tax rate (as a percent) | 25.90% | 5.30% |
Income tax benefit | $ 19,727 | $ (20,090) |
CARES Act | ||
Income tax benefit | $ 5,200 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | |
May 01, 2021USD ($)lease | Apr. 25, 2020USD ($) | |
Number of real estate leases for store properties that qualify for treatment as finance leases | lease | 4 | |
Option to extend leases | true | |
Weighted average remaining lease term -Operating leases (years) | 11 years 9 months 18 days | |
Weighted average remaining lease term - Finance leases (years) | 14 years 2 months 12 days | |
Weighted average discount rate - Operating leases | 6.06% | |
Weighted average discount rate - Finance leases | 5.82% | |
Lease cost | ||
Operating lease cost | $ 41,780 | $ 39,646 |
Variable lease cost | 6,603 | 6,212 |
Amortization of right-of-use assets | 326 | 74 |
Interest on lease liabilities | 252 | 29 |
Total lease cost | 48,961 | 45,961 |
Supplemental disclosures of cash flow information related to leases | ||
Cash paid for operating lease liabilities | 43,798 | 22,414 |
Right-of-use assets obtained in exchange for operating lease liabilities | 44,189 | 60,643 |
Cash paid for finance lease liabilities | 193 | $ 77 |
Deferred operating lease costs | $ 9,600 | |
Minimum | ||
Lease term | 5 years | |
Renewal term | 5 years | |
Maximum | ||
Lease term | 20 years | |
Renewal term | 20 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
May 01, 2021 | Apr. 25, 2020 | |
Numerator: | ||
Net income (loss) | $ 56,323 | $ (358,942) |
Denominator: | ||
Weighted average common shares outstanding-basic | 65,405,610 | 64,130,000 |
Effect of dilutive securities: | ||
Stock options and restricted stock units | 4,138,831 | |
Weighted average common shares outstanding-diluted | 69,544,441 | 64,130,000 |
Net income (loss) per common share: | ||
Basic | $ 0.86 | $ (5.60) |
Diluted | $ 0.81 | $ (5.60) |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | |
May 01, 2021 | Apr. 25, 2020 | |
Antidilutive securities excluded from computation of earnings per share | ||
Stock options and other awards that are not considered diluted due to net loss | 4,138,831 | |
Stock options | ||
Antidilutive securities excluded from computation of earnings per share | ||
Antidilutive shares excluded from calculation of diluted net income (loss) per common share | 812,457 | 6,534,874 |
Stock options and other awards that are not considered diluted due to net loss | 24,709 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - 2016 Equity Plan $ in Millions | Mar. 30, 2021USD ($)shares |
Stock options | |
Stock-Based Compensation | |
Stock-based compensation expense | $ | $ 5.6 |
Service period | 3 years |
Stock options | Senior management | |
Stock-Based Compensation | |
Granted (in shares) | shares | 347,408 |
RSUs | |
Stock-Based Compensation | |
Stock-based compensation expense | $ | $ 1.6 |
RSUs | Minimum | |
Stock-Based Compensation | |
Service period | 1 year |
RSUs | Maximum | |
Stock-Based Compensation | |
Service period | 3 years |
RSUs | Independent Directors | |
Stock-Based Compensation | |
Granted (in shares) | shares | 61,777 |
PSU | |
Stock-Based Compensation | |
Stock-based compensation expense | $ | $ 1.8 |
Service period | 3 years |
Percentage of adjusted net income | 50.00% |
Percentage of total sales growth | 50.00% |
PSU | Senior management | |
Stock-Based Compensation | |
Granted (in shares) | shares | 229,250 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | May 06, 2021 | May 01, 2021 | Jan. 30, 2021 | Apr. 25, 2020 |
Subsequent Event [Line Items] | ||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |
Subsequent events. | Ambience Parent, Inc. and Ambience Merger Sub, Inc | ||||
Subsequent Event [Line Items] | ||||
Cash | $ 36 | |||
Go shop period | 40 days | |||
Subsequent events. | Termination of Agreement under Specified Circumstances by the Company | Ambience Parent, Inc. and Ambience Merger Sub, Inc | ||||
Subsequent Event [Line Items] | ||||
Termination fee payable | $ 77.2 | |||
Subsequent events. | Termination of Agreement During 40-Days Go Shop Period by the Company | Ambience Parent, Inc. and Ambience Merger Sub, Inc | ||||
Subsequent Event [Line Items] | ||||
Go shop period | 40 days | |||
Termination fee payable | $ 38.6 | |||
Subsequent events. | Termination of Agreement by Parent | Ambience Parent, Inc. and Ambience Merger Sub, Inc | ||||
Subsequent Event [Line Items] | ||||
Termination fee receivable | $ 128.7 |