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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/08/22 Mattress Firm Group Inc. S-1/A 19:23M Toppan Merrill/FA |
Document/Exhibit Description Pages Size 1: S-1/A Pre-Effective Amendment to Registration Statement HTML 2.42M (General Form) 2: EX-10.1 Material Contract HTML 16K 11: EX-10.10 Material Contract HTML 39K 12: EX-10.11 Material Contract HTML 37K 13: EX-10.12 Material Contract HTML 21K 14: EX-10.13 Material Contract HTML 135K 3: EX-10.2 Material Contract HTML 55K 15: EX-10.20 Material Contract HTML 124K 16: EX-10.21 Material Contract HTML 27K 17: EX-10.22 Material Contract HTML 55K 4: EX-10.3 Material Contract HTML 31K 5: EX-10.4 Material Contract HTML 43K 6: EX-10.5 Material Contract HTML 35K 7: EX-10.6 Material Contract HTML 92K 8: EX-10.7 Material Contract HTML 49K 9: EX-10.8 Material Contract HTML 15K 10: EX-10.9 Material Contract HTML 14K 18: EX-23.1 Consent of Expert or Counsel HTML 7K 19: EX-FILING FEES Filing Fees HTML 13K
tm2127589-16_s1a - block - 57.0627706s |
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Delaware
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5712
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38-4012800
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(State or Other Jurisdiction of
Incorporation or Organization) |
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(Primary Standard Industrial
Classification Code Number) |
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(I.R.S. Employer
Identification No.) |
|
| | | |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | | | Non-accelerated filer ☒ | | |
Smaller reporting company ☐
Emerging growth company ☐ |
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| | |
Per share
|
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Total
|
| ||||||
Initial public offering price
|
| | | $ | | | | | $ | | | ||
Underwriting discount(1)
|
| | | $ | | | | | $ | | | ||
Proceeds, before expenses, to the selling stockholders
|
| | | $ | | | | | $ | | | |
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| | | | | 88 | | | |
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| | | | | 135 | | | |
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| | | | | 159 | | | |
| | | | | 159 | | | |
| | | | | 159 | | | |
| | | | | F-1 | | |
| | |
Fiscal Year Ended
|
| |
Thirteen Weeks Ended
|
| ||||||||||||||||||||||||
(in millions, except share and per share data)
|
| | | | | | | | | | | ||||||||||||||||||||
Net revenue
|
| | | $ | 2,962.3 | | | | | $ | 3,256.6 | | | | | $ | 4,392.9 | | | | | $ | 929.1 | | | | | $ | 1,130.5 | | |
Cost of sales
|
| | | | 2,046.1 | | | | | | 2,142.6 | | | | | | 2,530.3 | | | | | | 569.0 | | | | | | 652.9 | | |
Total gross profit
|
| | | | 916.2 | | | | | | 1,114.0 | | | | | | 1,862.6 | | | | | | 360.1 | | | | | | 477.6 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Sales and marketing expenses
|
| | | | 708.9 | | | | | | 704.9 | | | | | | 950.0 | | | | | | 183.0 | | | | | | 237.6 | | |
General and administrative expenses
|
| | | | 276.1 | | | | | | 247.2 | | | | | | 316.1 | | | | | | 62.1 | | | | | | 82.5 | | |
Special bonus and director fees
|
| | | | — | | | | | | — | | | | | | 151.9 | | | | | | — | | | | | | — | | |
Impairment of intangible assets
|
| | | | 568.9 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Impairment of goodwill
|
| | | | 244.2 | | | | | | — | | | | | | 47.2 | | | | | | — | | | | | | — | | |
Total operating expenses
|
| | | | 1,798.1 | | | | | | 952.1 | | | | | | 1,465.2 | | | | | | 245.1 | | | | | | 320.1 | | |
(Loss) income from operations
|
| | | | (881.9) | | | | | | 161.9 | | | | | | 397.4 | | | | | | 115.0 | | | | | | 157.5 | | |
Other expense (income): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net
|
| | | | 107.3 | | | | | | 122.3 | | | | | | 54.6 | | | | | | 25.9 | | | | | | 18.0 | | |
Remeasurement of embedded derivatives
|
| | | | 12.2 | | | | | | (131.7) | | | | | | — | | | | | | — | | | | | | — | | |
Loss from debt extinguishments
|
| | | | 8.5 | | | | | | — | | | | | | 490.3 | | | | | | 471.3 | | | | | | — | | |
(Loss) income before income taxes
|
| | | | (1,009.9) | | | | | | 171.3 | | | | | | (147.5) | | | | | | (382.2) | | | | | | 139.5 | | |
Income tax (benefit) expense
|
| | | | (44.1) | | | | | | 45.7 | | | | | | 17.6 | | | | | | (5.3) | | | | | | 19.6 | | |
Net (loss) income
|
| | | $ | (965.8) | | | | | $ | 125.6 | | | | | $ | (165.1) | | | | | $ | (376.9) | | | | | $ | 119.9 | | |
(Loss) income per common share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | | | | | $ | | | | | $ | | | | | | $ | | | | | $ | | | ||||
Diluted
|
| | | $ | | | | | $ | | | | | $ | | | | | | $ | | | | | $ | | | ||||
Weighted average common shares outstanding:
|
| | | | | | |||||||||||||||||||||||||
Basic
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions)
|
| | | | | | | ||||||||||||
Cash and cash equivalents(1)
|
| | | $ | 504.6 | | | | | $ | 209.7 | | | | | $ | 173.2 | | |
Inventories(2)
|
| | | | 216.4 | | | | | | 210.2 | | | | | | 216.9 | | |
Working capital(3)
|
| | | | (7.4) | | | | | | (443.6) | | | | | | (339.9) | | |
Total assets
|
| | | | 3,797.7 | | | | | | 3,539.1 | | | | | | 3,488.4 | | |
Net long-term debt(4)
|
| | | | 235.0 | | | | | | 1,199.6 | | | | | | 1,197.4 | | |
Total stockholders’ equity
|
| | | | 1,441.6 | | | | | | 77.2 | | | | | | 197.1 | | |
| | |
Fiscal Year Ended
|
| |
Thirteen Weeks Ended
|
| ||||||||||||||||||||||||
(in millions)
|
| | | | | | | | | | | ||||||||||||||||||||
Net cash (used in) provided by operating activities
|
| | | $ | (9.3) | | | | | $ | 379.0 | | | | | $ | 452.6 | | | | | $ | (48.1) | | | | | $ | (8.2) | | |
Net cash used in investing activities
|
| | | $ | (41.1) | | | | | $ | (46.3) | | | | | $ | (102.2) | | | | | $ | (8.2) | | | | | $ | (28.0) | | |
Net cash provided by (used in) financing activities
|
| | | $ | 209.3 | | | | | $ | (3.1) | | | | | $ | (645.3) | | | | | $ | (103.3) | | | | | $ | (0.3) | | |
(in millions, except percentages, number
of stores at period-end and average order value) |
| |
Fiscal Year Ended
|
| |
Thirteen Weeks Ended
|
| ||||||||||||||||||||||||
| | | | | | | | | | ||||||||||||||||||||||
Comparable sales growth(2)
|
| | | | 7.5% | | | | | | 13.0% | | | | | | 36.1% | | | | | | 25.8% | | | | | | 21.1% | | |
Revenue per store(3)
|
| | | $ | 1.0 | | | | | $ | 1.2 | | | | | $ | 1.7 | | | | | $ | 0.4 | | | | | $ | 0.4 | | |
Number of stores at period-end
|
| | | | 2,534 | | | | | | 2,419 | | | | | | 2,353 | | | | | | 2,386 | | | | | | 2,344 | | |
Average order value(4)
|
| | | $ | 999 | | | | | $ | 970 | | | | | $ | 1,111 | | | | | $ | 998 | | | | | $ | 1,176 | | |
Website visitors(5)
|
| | | | 27 | | | | | | 56 | | | | | | 62 | | | | | | 14 | | | | | | 15 | | |
Adjusted EBITDA(6)
|
| | | $ | 153.4 | | | | | $ | 256.3 | | | | | $ | 669.2 | | | | | $ | 135.4 | | | | | $ | 180.8 | | |
Net income margin(7)
|
| | | | NM | | | | | | 3.9% | | | | | | NM | | | | | | NM | | | | | | 10.6% | | |
Adjusted EBITDA margin(6)
|
| | | | 5.2% | | | | | | 7.9% | | | | | | 15.2% | | | | | | 14.6% | | | | | | 16.0% | | |
Adjusted Net (Loss) Income(8)
|
| | | $ | (34.9) | | | | | $ | 71.5 | | | | | $ | 444.6 | | | | | $ | 81.3 | | | | | $ | 124.7 | | |
Capital expenditures
|
| | | $ | 41.1 | | | | | $ | 47.4 | | | | | $ | 97.2 | | | | | $ | 8.2 | | | | | $ | 28.0 | | |
Adjusted Free Cash Flow (As Restated)(9)
|
| | | $ | (50.4) | | | | | $ | 331.6 | | | | | $ | 445.9 | | | | | $ | 34.2 | | | | | $ | (36.2) | | |
| | |
Fiscal Year Ended
|
| |
Thirteen Weeks Ended
|
| ||||||||||||||||||||||||
(in millions, except for percentages)
|
| | | | | | | | | | | ||||||||||||||||||||
Net (loss) income
|
| | | $ | (965.8) | | | | | $ | 125.6 | | | | | $ | (165.1) | | | | | $ | (376.9) | | | | | $ | 119.9 | | |
Interest expense, net
|
| | | | 107.3 | | | | | | 122.3 | | | | | | 54.6 | | | | | | 25.9 | | | | | | 18.0 | | |
Remeasurement of embedded derivatives
|
| | | | 12.2 | | | | | | (131.7) | | | | | | — | | | | | | — | | | | | | — | | |
Income tax (benefit)
expense |
| | | | (44.1) | | | | | | 45.7 | | | | | | 17.6 | | | | | | (5.3) | | | | | | 19.6 | | |
Depreciation and amortization expense
|
| | | | 69.1 | | | | | | 57.6 | | | | | | 57.3 | | | | | | 14.0 | | | | | | 17.7 | | |
Impairment of intangible assets
|
| | | | 568.9 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Impairment of goodwill
|
| | | | 244.2 | | | | | | — | | | | | | 47.2 | | | | | | — | | | | | | — | | |
Impairment of property and equipment and operating lease right-of-use assets and loss on disposal of property and
equipment(a) |
| | | | 12.5 | | | | | | 15.0 | | | | | | 8.6 | | | | | | 4.7 | | | | | | 1.4 | | |
Loss from debt extinguishments(b)
|
| | | | 8.5 | | | | | | — | | | | | | 490.3 | | | | | | 471.3 | | | | | | — | | |
Stock and other non-cash compensation(c)
|
| | | | 8.2 | | | | | | 13.2 | | | | | | 3.7 | | | | | | 1.7 | | | | | | 0.5 | | |
Inventory reconfiguration initiative(d)
|
| | | | 9.9 | | | | | | 8.6 | | | | | | — | | | | | | — | | | | | | — | | |
Restructuring costs, net(e)
|
| | | | 122.5 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Special bonus and director fees(f)
|
| | | | — | | | | | | — | | | | | | 151.9 | | | | | | — | | | | | | — | | |
Offering cost(g)
|
| | | | — | | | | | | — | | | | | | 3.1 | | | | | | — | | | | | | 3.7 | | |
Adjusted EBITDA
|
| | | $ | 153.4 | | | | | $ | 256.3 | | | | | $ | 669.2 | | | | | $ | 135.4 | | | | | $ | 180.8 | | |
Net revenue
|
| | | $ | 2,962.3 | | | | | $ | 3,256.6 | | | | | $ | 4,392.9 | | | | | $ | 929.1 | | | | | $ | 1,130.5 | | |
Adjusted EBITDA Margin
|
| | | | 5.2% | | | | | | 7.9% | | | | | | 15.2% | | | | | | 14.6% | | | | | | 16.0% | | |
| | |
Fiscal Year Ended
|
| |
Thirteen Weeks Ended
|
| ||||||||||||||||||||||||
(in millions)
|
| | | | | | | | | | | ||||||||||||||||||||
Net (loss) income
|
| | | $ | (965.8) | | | | | $ | 125.6 | | | | | $ | (165.1) | | | | | $ | (376.9) | | | | | $ | 119.9 | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Remeasurement of embedded derivatives
|
| | | | 12.2 | | | | | | (131.7) | | | | | | — | | | | | | — | | | | | | — | | |
Impairment of intangible assets
|
| | | | 568.9 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Impairment of goodwill
|
| | | | 244.2 | | | | | | — | | | | | | 47.2 | | | | | | — | | | | | | — | | |
Impairment of property and equipment and
operating lease right-of-use asset lease and loss on disposal of property and equipment(a) |
| | | | 12.5 | | | | | | 15.0 | | | | | | 8.6 | | | | | | 4.7 | | | | | | 1.4 | | |
Loss from debt extinguishments(b)
|
| | | | 8.5 | | | | | | — | | | | | | 490.3 | | | | | | 471.3 | | | | | | — | | |
Stock and other non-cash compensation(c)
|
| | | | 8.2 | | | | | | 13.2 | | | | | | 3.7 | | | | | | 1.7 | | | | | | 0.5 | | |
Inventory reconfiguration initiative(d)
|
| | | | 9.9 | | | | | | 8.6 | | | | | | — | | | | | | — | | | | | | — | | |
Restructuring costs, net(e)
|
| | | | 122.5 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Special bonus and director fees(f)
|
| | | | — | | | | | | — | | | | | | 151.9 | | | | | | — | | | | | | — | | |
Offering cost(g)
|
| | | | — | | | | | | — | | | | | | 3.1 | | | | | | — | | | | | | 3.7 | | |
Total Adjustments
|
| | | | 986.9 | | | | | | (94.9) | | | | | | 704.8 | | | | | | 477.7 | | | | | | 5.6 | | |
Net tax (expense) benefit of adjustments(h)
|
| | | | (56.0) | | | | | | 25.2 | | | | | | (95.1) | | | | | | (19.5) | | | | | | (0.8) | | |
Discrete tax items(i)
|
| | | | — | | | | | | 15.6 | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted Net (Loss) Income
|
| | | $ | (34.9) | | | | | $ | 71.5 | | | | | $ | 444.6 | | | | | $ | 81.3 | | | | | $ | 124.7 | | |
| | |
Fiscal Year Ended
|
| |
Thirteen Weeks Ended
|
| ||||||||||||||||||||||||
(in millions)
|
| | | | | | | | | | | ||||||||||||||||||||
Net cash (used in) provided by operating activities
|
| | | $ | (9.3) | | | | | $ | 379.0 | | | | | $ | 452.6 | | | | | $ | (48.1) | | | | | $ | (8.2) | | |
Less: Capital expenditures
|
| | | | 41.1 | | | | | | 47.4 | | | | | | 97.2 | | | | | | 8.2 | | | | | | 28.0 | | |
Plus: Cash payment of deferred paid-in-kind interest(a)
|
| | | | — | | | | | | — | | | | | | 90.5 | | | | | | 90.5 | | | | | | — | | |
Adjusted Free Cash Flow
|
| | | $ | (50.4) | | | | | $ | 331.6 | | | | | $ | 445.9 | | | | | $ | 34.2 | | | | | $ | (36.2) | | |
(in millions, except per share data)
|
| |
As of December 28, 2021
|
| |||
Cash and cash equivalents
|
| | | $ | 173.2 | | |
Long-term debt, including current maturities: | | | | | | | |
2021 ABL Facility(1)
|
| | | $ | — | | |
2021 Term Loan
|
| | | | 1,250.0 | | |
Finance leases
|
| | | | 2.3 | | |
Total long-term debt, including current maturities
|
| | | | 1,252.3 | | |
Stockholders’ equity: | | | | | | | |
Preferred stock (par value $0.01 per share; 200,000,000 shares authorized; 0 shares issued and outstanding)
|
| | | | — | | |
Common stock (par value $0.01 per share; 1,000,000,000 shares authorized; shares issued and outstanding)(2)
|
| | | | — | | |
Additional paid-in-capital
|
| | | | 4,748.1 | | |
Accumulated deficit
|
| | | | (4,551.0) | | |
Treasury stock ( shares at cost)
|
| | | | — | | |
Total stockholders’ equity(2)
|
| | | | 197.1 | | |
Total capitalization
|
| | | $ | 1,449.4 | | |
|
Assumed initial public offering price per share
|
| | | $ | | | |
|
Net tangible book value (deficit) per share as of , 2021 before this offering
|
| | | $ | | | |
|
Increase in as adjusted net tangible book value per share attributable to new investors purchasing common stock in this offering
|
| | | | | | |
|
As adjusted net tangible book value per share after this offering
|
| | | | | | |
|
Dilution per share to new investors purchasing common stock in this offering
|
| | | $ | | | |
| | |
Shares Purchased
|
| |
Total consideration
|
| | ||||||||||||||
| | |
Number
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| |
Average Price Per Share
|
| ||||||
Existing stockholders
|
| | | | | | | % | | | | | | | | | % | | | | | |
New investors
|
| | | | | | | % | | | | | | | | | % | | | | | |
Total
|
| | | | | | | % | | | | | | | | | % | | | | | |
| | |
Fiscal 2019
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
| |
Thirteen Weeks Ended
December 28, 2021 |
| ||||||||||||
Stores, beginning of period
|
| | | | 3,241 | | | | | | 2,534 | | | | | | 2,419 | | | | | | 2,353 | | |
New stores
|
| | | | 37 | | | | | | 10 | | | | | | 33 | | | | | | 7 | | |
Acquired stores
|
| | | | — | | | | | | 3 | | | | | | 1 | | | | | | — | | |
Closed stores
|
| | | | (744) | | | | | | (128) | | | | | | (100) | | | | | | (16) | | |
Stores, end of period
|
| | | | 2,534 | | | | | | 2,419 | | | | | | 2,353 | | | | | | 2,344 | | |
| | | | | | | | | | | | | | |
Percentage of
Net Revenue |
| |
Basis Point
Increase/ (Decrease) Percentage of Net Revenue |
| |
Percentage
Increase/ (Decrease) Dollar Amounts |
| |||||||||||||||
| | |
Thirteen Weeks Ended
|
| |
Thirteen Weeks Ended
|
| ||||||||||||||||||||||||||||||
(in millions, except percentages)
|
| | | | | | | | | |
Thirteen Weeks
Ended 2021 vs 2020 |
| |
Thirteen Weeks
Ended 2021 vs 2020 |
| ||||||||||||||||||||||
Net revenue
|
| | | $ | 929.1 | | | | | $ | 1,130.5 | | | | | | 100.0% | | | | | | 100.0% | | | | | | — | | | | | | 21.7% | | |
Cost of sales
|
| | | | 569.0 | | | | | | 652.9 | | | | | | 61.2% | | | | | | 57.8% | | | | | | (340) | | | | | | 14.7% | | |
Total gross profit
|
| | | | 360.1 | | | | | | 477.6 | | | | | | 38.8% | | | | | | 42.2% | | | | | | 340 | | | | | | 32.6% | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sales and marketing expenses
|
| | | | 183.0 | | | | | | 237.6 | | | | | | 19.7% | | | | | | 21.0% | | | | | | 130 | | | | | | 29.8% | | |
General and administrative expenses
|
| | | | 62.1 | | | | | | 82.5 | | | | | | 6.7% | | | | | | 7.3% | | | | | | 60 | | | | | | 32.9% | | |
Total operating expenses
|
| | | | 245.1 | | | | | | 320.1 | | | | | | 26.4% | | | | | | 28.3% | | | | | | 190 | | | | | | 30.6% | | |
Income from operations
|
| | | | 115.0 | | | | | | 157.5 | | | | | | 12.4% | | | | | | 13.9% | | | | | | 150 | | | | | | 37.0% | | |
Interest expense, net
|
| | | | 25.9 | | | | | | 18.0 | | | | | | 2.8% | | | | | | 1.6% | | | | | | (120) | | | | | | (30.5)% | | |
Loss from debt extinguishments
|
| | | | 471.3 | | | | | | — | | | | | | 50.7% | | | | | | —% | | | | | | NM | | | | | | NM | | |
Income (loss) before income taxes
|
| | | | (382.2) | | | | | | 139.5 | | | | | | (41.1)% | | | | | | 12.3% | | | | | | NM | | | | | | NM | | |
Income tax (benefit) expense
|
| | | | (5.3) | | | | | | 19.6 | | | | | | (0.6)% | | | | | | 1.7% | | | | | | 230 | | | | | | NM | | |
Net income (loss)
|
| | | $ | (376.9) | | | | | $ | 119.9 | | | | | | (40.6)% | | | | | | 10.6% | | | | | | NM | | | | | | NM | | |
| | |
Thirteen Weeks Ended
|
| | | | |||||||||
(in millions, except percentages, number of stores at period end and
average order value) |
| | | | | | ||||||||||
Comparable sales growth
|
| | | | 25.8% | | | | | | 21.1% | | | | ||
Number of stores at period-end
|
| | | | 2,386 | | | | | | 2,344 | | | | ||
Average order value(1)
|
| | | $ | 998 | | | | | $ | 1,176 | | | | ||
Website visitors(2)
|
| | | | 14 | | | | | | 15 | | | |
| | |
Thirteen Weeks Ended
|
| | | | |||||||||
(in millions, except percentages, number of stores at period end and
average order value) |
| | | | | | ||||||||||
Adjusted EBITDA(3)
|
| | | $ | 135.4 | | | | | $ | 180.8 | | | | ||
Net income margin(4)
|
| | | | NM | | | | | | 10.6% | | | | ||
Adjusted EBITDA margin(3)
|
| | | | 14.6% | | | | | | 16.0% | | | | ||
Adjusted Net Income(5)
|
| | | $ | 81.3 | | | | | $ | 124.7 | | | |
| | |
Thirteen Weeks Ended
|
| |||||||||
(in millions, except percentages)
|
| | | | | ||||||||
Adjusted EBITDA: | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (376.9) | | | | | $ | 119.9 | | |
Interest expense, net
|
| | | | 25.9 | | | | | | 18.0 | | |
Income tax (benefit) provision
|
| | | | (5.3) | | | | | | 19.6 | | |
Depreciation and amortization expense
|
| | | | 14.0 | | | | | | 17.7 | | |
Impairment of property and equipment and operating lease right-of-use assets and loss on disposal of property and equipment(a)
|
| | | | 4.7 | | | | | | 1.4 | | |
Loss from debt extinguishments(b)
|
| | | | 471.3 | | | | | | — | | |
Stock and other non-cash compensation(c)
|
| | | | 1.7 | | | | | | 0.5 | | |
Offering cost(d)
|
| | | | — | | | | | | 3.7 | | |
Adjusted EBITDA
|
| | | $ | 135.4 | | | | | $ | 180.8 | | |
Net revenue
|
| | | $ | 929.1 | | | | | $ | 1,130.5 | | |
Adjusted EBITDA margin(e)
|
| | | | 14.6% | | | | | | 16.0% | | |
| | |
Thirteen Weeks Ended
|
| | | | |||||||||
(in millions)
|
| | | | | | ||||||||||
Net (loss) income
|
| | | $ | (376.9) | | | | | $ | 119.9 | | | | ||
Adjustments: | | | | | | | | | | | | | | | ||
Impairment of property and equipment and operating lease
right-of-use asset lease and loss on disposal of property and equipment(a) |
| | | | 4.7 | | | | | | 1.4 | | | | ||
Loss from debt extinguishments(b)
|
| | | | 471.3 | | | | | | — | | | | ||
Stock and other non-cash compensation(c)
|
| | | | 1.7 | | | | | | 0.5 | | | | ||
Offering cost(d)
|
| | | | — | | | | | | 3.7 | | | | ||
Total Adjustments
|
| | | | 477.7 | | | | | | 5.6 | | | | ||
Net tax (expense) benefit of adjustments(e)
|
| | | | (19.5) | | | | | | (0.8) | | | | ||
Adjusted Net Income
|
| | | $ | 81.3 | | | | | $ | 124.7 | | | |
| | |
Thirteen Weeks Ended
|
| |||||||||
(in millions)
|
| | | | | ||||||||
Interest expense
|
| | | $ | 15.3 | | | | | $ | 15.5 | | |
Amortization of original issue discount and loan costs and other
|
| | | | 10.7 | | | | | | 2.6 | | |
Interest income
|
| | | | (0.1) | | | | | | (0.1) | | |
Interest expense, net
|
| | | $ | 25.9 | | | | | $ | 18.0 | | |
| | | | | | | | | | | | | | |
Percentage of
Net Revenue |
| |
Basis Point
Increase/ (Decrease) Percentage of Net Revenue |
| |
Percentage
Increase/ (Decrease) Dollar Amounts |
| |||||||||||||||
(in millions, except percentages)
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
| |
Fiscal 2021
vs. Fiscal 2020 |
| |
Fiscal 2021
vs. Fiscal 2020 |
| ||||||||||||||||||
Net revenue
|
| | | $ | 3,256.6 | | | | | $ | 4,392.9 | | | | | | 100.0% | | | | | | 100.0% | | | | | | — | | | | | | 34.9% | | |
Cost of sales
|
| | | | 2,142.6 | | | | | | 2,530.3 | | | | | | 65.8% | | | | | | 57.6% | | | | | | (820) | | | | | | 18.1% | | |
Total gross profit
|
| | | | 1,114.0 | | | | | | 1,862.6 | | | | | | 34.2% | | | | | | 42.4% | | | | | | 820 | | | | | | 67.2% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sales and marketing expenses
|
| | | | 704.9 | | | | | | 950.0 | | | | | | 21.6% | | | | | | 21.6% | | | | | | — | | | | | | 34.8% | | |
General and administrative expenses
|
| | | | 247.2 | | | | | | 316.1 | | | | | | 7.6% | | | | | | 7.2% | | | | | | (40) | | | | | | 27.9% | | |
Special bonus and director fees
|
| | | | — | | | | | | 151.9 | | | | | | —% | | | | | | 3.5% | | | | | | 350 | | | | | | NM | | |
Impairment of goodwill
|
| | | | — | | | | | | 47.2 | | | | | | —% | | | | | | 1.1% | | | | | | 110 | | | | | | NM | | |
Total operating expenses
|
| | | | 952.1 | | | | | | 1,465.2 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from operations
|
| | | | 161.9 | | | | | | 397.4 | | | | | | 5.0% | | | | | | 9.0% | | | | | | 400 | | | | | | 145.5% | | |
Interest expense, net
|
| | | | 122.3 | | | | | | 54.6 | | | | | | 3.8% | | | | | | 1.2% | | | | | | (260) | | | | | | (55.4)% | | |
Remeasurement of embedded derivatives
|
| | | | (131.7) | | | | | | — | | | | | | (4.0)% | | | | | | —% | | | | | | 400 | | | | | | (100.0)% | | |
Loss from debt extinguishments
|
| | | | — | | | | | | 490.3 | | | | | | —% | | | | | | 11.2% | | | | | | 1,120 | | | | | | NM | | |
Income (loss) before income taxes
|
| | | | 171.3 | | | | | | (147.5) | | | | | | 5.3% | | | | | | (3.4)% | | | | | | (870) | | | | | | (186.1)% | | |
Income tax expense
|
| | | | 45.7 | | | | | | 17.6 | | | | | | 1.4% | | | | | | 0.4% | | | | | | (100) | | | | | | (61.5)% | | |
Net income (loss)
|
| | | $ | 125.6 | | | | | $ | (165.1) | | | | | | 3.9% | | | | | | (3.8)% | | | | | | (770) | | | | | | (231.4)% | | |
(in millions, except percentages, number of stores at year end and average
order value) |
| |
Fiscal 2020
|
| |
Fiscal 2021
|
| ||||||
Comparable sales growth
|
| | | | 13.0% | | | | | | 36.1% | | |
Number of stores at year-end
|
| | | | 2,419 | | | | | | 2,353 | | |
Average order value(1)
|
| | | $ | 970 | | | | | $ | 1,111 | | |
Website visitors(2)
|
| | | | 56 | | | | | | 62 | | |
Adjusted EBITDA(3)
|
| | | $ | 256.3 | | | | | $ | 669.2 | | |
Net income margin(4)
|
| | | | 3.9% | | | | | | NM | | |
Adjusted EBITDA margin(3)
|
| | | | 7.9% | | | | | | 15.2% | | |
Adjusted Net Income(5)
|
| | | $ | 71.5 | | | | | $ | 444.6 | | |
(in millions, except percentages)
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
| ||||||
Adjusted EBITDA: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 125.6 | | | | | $ | (165.1) | | |
Interest expense, net
|
| | | | 122.3 | | | | | | 54.6 | | |
Remeasurement of embedded derivatives
|
| | | | (131.7) | | | | | | — | | |
Income tax expense
|
| | | | 45.7 | | | | | | 17.6 | | |
Depreciation and amortization expense
|
| | | | 57.6 | | | | | | 57.3 | | |
Impairment of goodwill
|
| | | | — | | | | | | 47.2 | | |
Impairment of property and equipment and operating lease right-of-use assets and loss on disposal of property and equipment(a)
|
| | | | 15.0 | | | | | | 8.6 | | |
Loss from debt extinguishments(b)
|
| | | | — | | | | | | 490.3 | | |
Stock and other non-cash compensation(c)
|
| | | | 13.2 | | | | | | 3.7 | | |
Inventory reconfiguration initiative(d)
|
| | | | 8.6 | | | | | | — | | |
Special bonus and director fees(e)
|
| | | | — | | | | | | 151.9 | | |
Offering cost(f)
|
| | | | — | | | | | | 3.1 | | |
Adjusted EBITDA
|
| | | $ | 256.3 | | | | | $ | 669.2 | | |
Net revenue
|
| | | $ | 3,256.6 | | | | | $ | 4,392.9 | | |
Adjusted EBITDA Margin(g)
|
| | | | 7.9% | | | | | | 15.2% | | |
(in millions)
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
| ||||||
Net Income (loss)
|
| | | $ | 125.6 | | | | | $ | (165.1) | | |
Adjustments: | | | | | | | | | | | | | |
Remeasurement of embedded derivatives
|
| | | | (131.7) | | | | | | — | | |
Impairment of goodwill
|
| | | | — | | | | | | 47.2 | | |
Impairment of property and equipment and operating lease right-of-use asset lease and loss on disposal of property and equipment(a)
|
| | | | 15.0 | | | | | | 8.6 | | |
Loss from debt extinguishments(b)
|
| | | | — | | | | | | 490.3 | | |
Stock and other non-cash compensation(c)
|
| | | | 13.2 | | | | | | 3.7 | | |
Inventory reconfiguration initiative(d)
|
| | | | 8.6 | | | | | | — | | |
Special bonus and director fees(e)
|
| | | | — | | | | | | 151.9 | | |
Offering cost(f)
|
| | | | — | | | | | | 3.1 | | |
Total Adjustments
|
| | | | (94.9) | | | | | | 704.8 | | |
Net tax (expense) benefit of adjustments(g)
|
| | | | 25.2 | | | | | | (95.1) | | |
Discrete tax items(h)
|
| | | | 15.6 | | | | | | — | | |
Adjusted Net Income
|
| | | $ | 71.5 | | | | | $ | 444.6 | | |
(in millions)
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
| ||||||
Interest expense
|
| | | $ | 83.0 | | | | | $ | 40.1 | | |
Amortization of original issue discount and loan costs and other
|
| | | | 42.4 | | | | | | 15.0 | | |
Interest income
|
| | | | (3.1) | | | | | | (0.5) | | |
Interest expense, net
|
| | | $ | 122.3 | | | | | $ | 54.6 | | |
| | | | | | | | | | | | | | |
Percentage
of Net Revenue |
| |
Basis Point
Increase / (Decrease) Percentage of Net Revenue |
| |
Percentage
Increase / (Decrease) Dollar Amounts |
| |||||||||||||||
(in millions, except percentages)
|
| |
Fiscal
2019 |
| |
Fiscal
2020 |
| |
Fiscal
2019 |
| |
Fiscal
2020 |
| |
Fiscal
2020 vs. Fiscal 2019 |
| |
Fiscal
2020 vs. Fiscal 2019 |
| ||||||||||||||||||
Net revenue
|
| | | $ | 2,962.3 | | | | | $ | 3,256.6 | | | | | | 100.0% | | | | | | 100.0% | | | | | | — | | | | | | 9.9% | | |
Cost of sales
|
| | | | 2,046.1 | | | | | | 2,142.6 | | | | | | 69.1% | | | | | | 65.8% | | | | | | (330) | | | | | | 4.7% | | |
Total gross profit
|
| | | | 916.2 | | | | | | 1,114.0 | | | | | | 30.9% | | | | | | 34.2% | | | | | | 330 | | | | | | 21.6% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sales and marketing expenses
|
| | | | 708.9 | | | | | | 704.9 | | | | | | 23.9% | | | | | | 21.6% | | | | | | (230) | | | | | | (0.6)% | | |
General and administrative
expenses |
| | | | 276.1 | | | | | | 247.2 | | | | | | 9.3% | | | | | | 7.6% | | | | | | (170) | | | | | | (10.5)% | | |
Impairment of intangible assets
|
| | | | 568.9 | | | | | | — | | | | | | 19.2% | | | | | | — | | | | | | (1,920) | | | | | | (100.0)% | | |
Impairment of goodwill
|
| | | | 244.2 | | | | | | — | | | | | | 8.2% | | | | | | — | | | | | | (820) | | | | | | (100.0)% | | |
Total operating expenses
|
| | | | 1,798.1 | | | | | | 952.1 | | | | | | 60.7% | | | | | | 29.2% | | | | | | (3,150) | | | | | | (47.0)% | | |
Income (loss) from operations
|
| | | | (881.9) | | | | | | 161.9 | | | | | | (29.8)% | | | | | | 5.0% | | | | | | 3,480 | | | | | | NM | | |
Interest expense, net
|
| | | | 107.3 | | | | | | 122.3 | | | | | | 3.6% | | | | | | 3.8% | | | | | | 20 | | | | | | 14.0% | | |
Remeasurement of embedded derivatives
|
| | | | 12.2 | | | | | | (131.7) | | | | | | 0.4% | | | | | | (4.0)% | | | | | | (440) | | | | | | NM | | |
Loss from debt extinguishments
|
| | | | 8.5 | | | | | | — | | | | | | 0.3% | | | | | | — | | | | | | (30) | | | | | | (100.0)% | | |
Income (loss) before income taxes
|
| | | | (1,009.9) | | | | | | 171.3 | | | | | | (34.1)% | | | | | | 5.3% | | | | | | 3,940 | | | | | | NM | | |
Income tax (benefit) expense
|
| | | | (44.1) | | | | | | 45.7 | | | | | | (1.5)% | | | | | | 1.4% | | | | | | 290 | | | | | | NM | | |
Net income (loss)
|
| | | $ | (965.8) | | | | | $ | 125.6 | | | | | | (32.6)% | | | | | | 3.9% | | | | | | 3,650 | | | | | | NM | | |
(in millions, except percentages, number of stores at year end and average order
value) |
| |
Fiscal
2019 |
| |
Fiscal
2020 |
| ||||||
Comparable sales growth
|
| | | | 7.5% | | | | | | 13.0% | | |
Number of stores at year-end
|
| | | | 2,534 | | | | | | 2,419 | | |
Average order value(1)
|
| | | $ | 999 | | | | | $ | 970 | | |
Website visitors(2)
|
| | | | 27 | | | | | | 56 | | |
Adjusted EBITDA(3)
|
| | | $ | 153.4 | | | | | $ | 256.3 | | |
Net income margin(4)
|
| | | | NM | | | | | | 3.9% | | |
Adjusted EBITDA margin(3)
|
| | | | 5.2% | | | | | | 7.9% | | |
Adjusted Net (Loss) Income(5)
|
| | | $ | (34.9) | | | | | $ | 71.5 | | |
(in millions, except percentages)
|
| |
Fiscal 2019
|
| |
Fiscal 2020
|
| ||||||
Adjusted EBITDA: | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (965.8) | | | | | $ | 125.6 | | |
Interest expense, net
|
| | | | 107.3 | | | | | | 122.3 | | |
Remeasurement of embedded derivatives
|
| | | | 12.2 | | | | | | (131.7) | | |
Income tax (benefit) expense
|
| | | | (44.1) | | | | | | 45.7 | | |
Depreciation and amortization expense
|
| | | | 69.1 | | | | | | 57.6 | | |
Impairment of intangible assets
|
| | | | 568.9 | | | | | | — | | |
Impairment of goodwill
|
| | | | 244.2 | | | | | | — | | |
Impairment of property and equipment and operating lease right-of-use assets and loss on disposal of property and equipment(a)
|
| | | | 12.5 | | | | | | 15.0 | | |
Loss from debt extinguishments(b)
|
| | | | 8.5 | | | | | | — | | |
Stock and other non-cash compensation(c)
|
| | | | 8.2 | | | | | | 13.2 | | |
Inventory reconfiguration initiative(d)
|
| | | | 9.9 | | | | | | 8.6 | | |
Restructuring costs, net(e)
|
| | | | 122.5 | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | 153.4 | | | | | $ | 256.3 | | |
Net revenue
|
| | | $ | 2,962.3 | | | | | $ | 3,256.6 | | |
Adjusted EBITDA Margin(f)
|
| | | | 5.2% | | | | | | 7.9% | | |
(in millions)
|
| |
Fiscal 2019
|
| |
Fiscal 2020
|
| ||||||
Net (loss) income
|
| | | $ | (965.8) | | | | | $ | 125.6 | | |
Adjustments: | | | | | | | | | | | | | |
Remeasurement of embedded derivatives
|
| | | | 12.2 | | | | | | (131.7) | | |
Impairment of intangible assets
|
| | | | 568.9 | | | | | | — | | |
Impairment of goodwill
|
| | | | 244.2 | | | | | | — | | |
Impairment of property and equipment and operating lease right-of-use asset lease and loss on disposal of property and equipment(a)
|
| | | | 12.5 | | | | | | 15.0 | | |
Loss from debt extinguishments(b)
|
| | | | 8.5 | | | | | | — | | |
Stock and other non-cash compensation(c)
|
| | | | 8.2 | | | | | | 13.2 | | |
Inventory reconfiguration initiative(d)
|
| | | | 9.9 | | | | | | 8.6 | | |
Restructuring costs, net(e)
|
| | | | 122.5 | | | | | | — | | |
Total Adjustments
|
| | | | 986.9 | | | | | | (94.9) | | |
Net tax benefit (expense) of adjustments(f)
|
| | | | (56.0) | | | | | | 25.2 | | |
Discrete tax items(g)
|
| | | | — | | | | | | 15.6 | | |
Adjusted Net (Loss) Income
|
| | | $ | (34.9) | | | | | $ | 71.5 | | |
(in millions)
|
| |
Fiscal 2019
|
| |
Fiscal 2020
|
| ||||||
Interest expense
|
| | | $ | 102.9 | | | | | $ | 83.0 | | |
Amortization of original issue discount and loan costs and other
|
| | | | 6.7 | | | | | | 42.4 | | |
Interest income
|
| | | | (2.3) | | | | | | (3.1) | | |
Interest expense, net
|
| | | $ | 107.3 | | | | | $ | 122.3 | | |
| | | | | | | | | | | | | | | | | | | | |
Thirteen Weeks Ended
|
| |||||||||
(in millions)
|
| |
Fiscal
2019 |
| |
Fiscal
2020 |
| |
Fiscal 2021
(As Restated) |
| | | | | |||||||||||||||||
Net cash (used in) provided by operating activities
|
| | | $ | (9.3) | | | | | $ | 379.0 | | | | | $ | 452.6 | | | | | $ | (48.1) | | | | | $ | (8.2) | | |
Net cash used in investing activities
|
| | | | (41.1) | | | | | | (46.3) | | | | | | (102.2) | | | | | | (8.2) | | | | | | (28.0) | | |
Net cash provided by (used in) financing activities
|
| | | | 209.3 | | | | | | (3.1) | | | | | | (645.3) | | | | | | (103.3) | | | | | | (0.3) | | |
| | | | | | | | | | | | | | | | | | | | |
Thirteen Weeks Ended
|
| |||||||||
(in millions)
|
| |
Fiscal
2019 |
| |
Fiscal
2020 |
| |
Fiscal
2021 |
| | | | | |||||||||||||||||
Existing store and distribution center investments
|
| | | $ | 9.7 | | | | | $ | 7.2 | | | | | $ | 48.5 | | | | | $ | 3.0 | | | | | $ | 9.6 | | |
Strategic initiatives
|
| | | | 24.3 | | | | | | 36.0 | | | | | | 36.0 | | | | | | 3.7 | | | | | | 9.6 | | |
New store construction
|
| | | | 7.1 | | | | | | 4.2 | | | | | | 12.7 | | | | | | 1.5 | | | | | | 8.8 | | |
Total capital expenditures
|
| | | $ | 41.1 | | | | | $ | 47.4 | | | | | $ | 97.2 | | | | | $ | 8.2 | | | | | $ | 28.0 | | |
| | |
Fiscal 2019
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
| | | |||||||||||||
Stores, beginning of period
|
| | | | 3,241 | | | | | | 2,534 | | | | | | 2,419 | | | | | | 2,353 | | |
New stores
|
| | | | 37 | | | | | | 10 | | | | | | 33 | | | | | | 7 | | |
Acquired stores
|
| | | | — | | | | | | 3 | | | | | | 1 | | | | | | — | | |
Closed stores
|
| | | | (744) | | | | | | (128) | | | | | | (100) | | | | | | (16) | | |
Stores, end of period
|
| | | | 2,534 | | | | | | 2,419 | | | | | | 2,353 | | | | | | 2,344 | | |
Name
|
| |
Age
|
| |
Position
|
|
Executive Officers | | | | | | | |
John W. Eck | | |
62
|
| | President, Chief Executive Officer and Director | |
Maarten O. Jager | | |
56
|
| | Chief Financial Officer | |
Randy Carlin | | |
64
|
| | Chief Real Estate Officer | |
Anne Dament | | |
55
|
| | Chief Merchandising Officer and Executive Vice President | |
Larry L. Fultz | | |
67
|
| | Chief Human Capital Officer | |
Jody W. Putnam | | |
45
|
| | Chief Retail Officer | |
Jonathan L. Sider | | |
42
|
| | Chief Information Officer and Chief Operating Officer of E-commerce | |
Richard J. Bingle Jr. | | |
53
|
| | Executive Vice President, Supply Chain | |
Sumit Goyal | | |
37
|
| | Executive Vice President, Product and Omni Technology | |
Kindel L. Nuño | | |
41
|
| | Executive Vice President, Legal, General Counsel and Secretary | |
Non-Executive Directors | | | | ||||
Paul W. Soldatos | | |
72
|
| | Chair of the Board of Directors | |
Robert F. Hull Jr. | | |
57
|
| | Director | |
Peter R. Sachse | | |
63
|
| | Director | |
Anne Donovan Bodnar | | |
65
|
| | Director Nominee | |
Helen Lee Bouygues | | |
49
|
| | Director Nominee | |
William Kim | | |
49
|
| | Director Nominee | |
Component
|
| |
Objective
|
|
Base Salary............................................................
|
| | Provide reasonable and market-competitive fixed pay reflective of an executive’s role, responsibilities and individual performance. | |
Annual Short-Term Incentive Awards.....................
|
| | An annual cash incentive based on our performance intended to promote and reward achievement of our annual financial and strategic objectives. Bonuses under the Annual Short-Term Incentive Plan (the “STIP”) are paid out in the first quarter of each fiscal year, following the release of our audited financial statements, to reward executive officers for their efforts during the prior fiscal year. The Adjusted EBITDA (as defined below) targets for the annual cash bonuses payable under the STIP, which align with our budget expectations for the fiscal year, are set in the fourth quarter of the preceding fiscal year to provide executive officers with clear guidance as to our board of director’s expectations of our performance for the current fiscal year. | |
Long-Term Incentive Cash Awards........................
|
| | Grants of Phantom PIK Loan Awards (as defined below) that are intended to replicate the amounts payable under the 2018 PIK Loan and designed to promote repayment of the 2018 PIK Loan and retain executive talent. | |
Equity Awards........................................................
|
| | Grants of time-based and performance-based restricted stock units under the 2019 Plan which are intended to align the executive officer’s interests with those of our stockholders by focusing on long-term value creation and achievement of a liquidity event. | |
Benefits and Perquisites.........................................
|
| | Provide market competitive benefits and perquisites that reflect industry and best practices. | |
Name
|
| |
Base Salary
|
| |||
John Eck
|
| | | $ | 850,000 | | |
Maarten Jager
|
| | | $ | 600,000 | | |
Jody Putnam
|
| | | $ | 400,000 | | |
Larry Fultz
|
| | | $ | 350,000 | | |
Jon Sider
|
| | | $ | 350,000 | | |
| | |
Below
Threshold |
| |
Threshold
|
| |
Target
|
| |
Maximum
|
| |
Fiscal 2021
Actual |
|
Adjusted EBITDA ($)
|
| |
<$270.0 million
|
| |
$270.0 million
|
| |
$300.0 million
|
| |
$330.00 million
|
| |
$669.2 million
|
|
Bonus Payout as a % of Target Cash Bonus
|
| |
No bonus
|
| |
50%
|
| |
100%
|
| |
200%
|
| |
200%
|
|
Name
|
| |
Applicable
Threshold Percentage |
| |
Applicable
Target Percentage |
| |
Applicable
Maximum Percentage |
| |||||||||
John Eck
|
| | | | 50% | | | | | | 100% | | | | | | 200% | | |
Maarten Jager
|
| | | | 25% | | | | | | 50% | | | | | | 100% | | |
Jody Putnam
|
| | | | 25% | | | | | | 50% | | | | | | 100% | | |
Larry Fultz
|
| | | | 25% | | | | | | 50% | | | | | | 100% | | |
Jon Sider
|
| | | | 25% | | | | | | 50% | | | | | | 100% | | |
Name
|
| |
Target
Bonus Opportunity ($) |
| |
2021
Weighted Achievement Factor (%) |
| |
Actual
Payout ($) |
| |||||||||
John Eck
|
| | | | 850,000 | | | | | | 200 | | | | | | 1,700,000 | | |
Maarten Jager
|
| | | | 300,000 | | | | | | 200 | | | | | | 600,000 | | |
Jody Putnam
|
| | | | 200,000 | | | | | | 200 | | | | | | 400,000 | | |
Larry Fultz
|
| | | | 175,000 | | | | | | 200 | | | | | | 350,000 | | |
Jon Sider
|
| | | | 175,000 | | | | | | 200 | | | | | | 350,000 | | |
Name
|
| |
Percentage
Allocation of 2019 Plan(1) |
| |
One-time
Performance Bonus |
| ||||||
John Eck
|
| | | | 29.78% | | | | | $ | 39,183,172 | | |
Maarten Jager
|
| | | | 8.94% | | | | | $ | 11,754,952 | | |
Jody Putnam
|
| | | | 5.96% | | | | | $ | 7,836,634 | | |
Larry Fultz
|
| | | | 6.40% | | | | | $ | 8,424,382 | | |
Jon Sider
|
| | | | 5.96% | | | | | $ | 7,836,634 | | |
Name
|
| |
Principal
Amount |
| |
Grant Date
|
| |||
John Eck
|
| | | $ | 337,838 | | | | | |
Jody Putnam
|
| | | $ | 118,243 | | | | | |
Jon Sider
|
| | | $ | 118,243 | | | | |
Name
|
| |
Principal
Amount(1) |
| |||
John Eck
|
| | | $ | 1,520,270 | | |
Maarten Jager
|
| | | $ | 253,378 | | |
Jody Putnam
|
| | | $ | 278,716 | | |
Larry Fultz
|
| | | $ | 363,176 | | |
Jon Sider
|
| | | $ | 278,716 | | |
Name
|
| |
Unvested
Principal Amount |
| |||
John Eck
|
| | | $ | 1,858,108 | | |
Maarten Jager
|
| | | $ | 760,135 | | |
Jody Putnam
|
| | | $ | 396,959 | | |
Larry Fultz
|
| | | $ | 363,176 | | |
Jon Sider
|
| | | $ | 396,959 | | |
|
Enterprise Value
|
| |
Less than
$900,000,000 |
| | | $ | 900,000,000 | | | | | $ | 1,200,000,000 | | | | | $ | 1,500,000,000 | | |
|
Percentage of Performance-
Based RSUs That Vest |
| |
0%
|
| | | | 50% | | | | | | 75% | | | | | | 100% | | |
Name
|
| |
Number of
RSUs(1) |
| |
Grant Date
|
| |||
John Eck
|
| | | | 45.6260 | | | | | |
Jody Putnam
|
| | | | 15.9691 | | | | | |
Jon Sider
|
| | | | 15.9691 | | | | |
Name
|
| |
Number of Time-Based
RSUs that Satisfied Time-Based Vesting in Fiscal 2021 |
| |
Number of Time-Based
RSUs that will be Settled in Shares of Common Stock following the Closing of this Offering(1)(3) |
| |
Number of
Performance-Based RSUs that will be Settled in Shares of Common Stock following the Closing of this Offering(2)(3) |
| ||||||
John Eck
|
| | | | 102.6590 | | | | | | 157.2577 | | | | ||
Maarten Jager
|
| | | | 17.1098 | | | | | | 24.8302(4) | | | | ||
Jody Putnam
|
| | | | 18.8207 | | | | | | 43.8666 | | | | ||
Larry Fultz
|
| | | | 24.5240 | | | | | | 53.3848 | | | | ||
Jon Sider
|
| | | | 18.8207 | | | | | | 43.8666 | | | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($)(1) |
| |
Bonus
($)(2) |
| |
Stock
Awards ($)(3) |
| |
Non-
Equity Incentive Plan Compensation ($)(4) |
| |
Change
in Pension Value and Nonqualified Deferred Compensation Earnings ($) |
| |
All
Other Compensation ($)(5) |
| |
Total
($) |
| ||||||||||||||||||||||||
John Eck, Chief Executive Officer
|
| | | | 2021 | | | | | | 850,000 | | | | | | 39,183,172 | | | | | | — | | | | | | 1,700,000 | | | | | | — | | | | | | 20,767 | | | | | | 41,753,939 | | |
Maarten Jager, Chief Financial Officer
|
| | | | 2021 | | | | | | 600,000 | | | | | | 11,754,952 | | | | | | — | | | | | | 600,000 | | | | | | — | | | | | | 6,062 | | | | | | 12,961,014 | | |
Jody Putnam, Chief Retail Officer
|
| | | | 2021 | | | | | | 383,333 | | | | | | 7,836,634 | | | | | | — | | | | | | 400,000 | | | | | | — | | | | | | 5,292 | | | | | | 8,625,259 | | |
Larry Fultz, Chief Human Capital
Officer |
| | | | 2021 | | | | | | 350,000 | | | | | | 8,424,382 | | | | | | — | | | | | | 350,000 | | | | | | — | | | | | | — | | | | | | 9,124,382 | | |
Jon Sider, Chief Information Officer and Chief Operating Officer of E-commerce
|
| | | | 2021 | | | | | | 350,000 | | | | | | 7,836,634 | | | | | | — | | | | | | 350,000 | | | | | | — | | | | | | 6,357 | | | | | | 8,542,991 | | |
Name
|
| |
Grant Date
|
| |
Estimated Future Payouts
Under Non-Equity Incentive Plan Awards |
| |
Estimated Future Payouts
Under Equity Incentive Plan Awards |
| |
All Other
Stock Awards: Number of Shares of Stock or Units (#) |
| |
Grant
Date Fair Value of Stock Awards(5) |
| |||||||||||||||||||||||||||||||||||||||
|
Threshold
($) |
| |
Target
($) |
| |
Maximum
($) |
| |
Threshold
(#) |
| |
Target
(#) |
| |
Maximum
(#) |
| ||||||||||||||||||||||||||||||||||||||
John Eck
|
| | | | —(1) | | | | | | 425,000 | | | | | | 850,000 | | | | | | 1,700,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 10/20/2020(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 22.8130 | | | | | | 0 | | |
| | | | | 10/20/2020(3) | | | | | | | | | | | | | | | | | | | | | | | | 11.4065 | | | | | | 17.10975 | | | | | | 22.8130 | | | | | | | | | | | | 0 | | |
| | | | | 10/20/2020(4) | | | | | | | | | | | | 337,838 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Maarten Jager
|
| | | | —(1) | | | | | | 150,000 | | | | | | 300,000 | | | | | | 600,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Jody Putnam
|
| | | | —(1) | | | | | | 100,000 | | | | | | 200,000 | | | | | | 400,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 10/20/2020(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7.9846 | | | | | | 0 | | |
| | | | | 10/20/2020(3) | | | | | | | | | | | | | | | | | | | | | | | | 3.9923 | | | | | | 5.9884 | | | | | | 7.9846 | | | | | | | | | | | | 0 | | |
| | | | | 10/20/2020(4) | | | | | | | | | | | | 118,243 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Larry Fultz
|
| | | | —(1) | | | | | | 87,500 | | | | | | 175,000 | | | | | | 350,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Jon Sider
|
| | | | —(1) | | | | | | 87,500 | | | | | | 175,000 | | | | | | 350,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 10/20/2020(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7.9846 | | | | | | 0 | | |
| | | | | 10/20/2020(3) | | | | | | | | | | | | | | | | | | | | | | | | 3.9923 | | | | | | 5.9884 | | | | | | 7.9846 | | | | | | | | | | | | 0 | | |
| | | | | 10/20/2020(4) | | | | | | | | | | | | 118,243 | | | | | | | | |
| | |
Stock Awards
|
| |||||||||||||||||||||||||||
Name
|
| |
Grant Date
|
| |
Number of
Shares or Units of Stock That Have Not Vested (#) |
| |
Market
Value of Shares or Units of Stock That Have Not Vested ($)(2) |
| |
Equity Incentive Plan
Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
| |
Equity Incentive Plan
Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(4) |
| |||||||||||||||
John Eck
|
| | | | 12/1/2019 | | | | | | 205.3170(1) | | | | | | 59,624,057 | | | | | | 205.3170(3) | | | | | | 59,624,057 | | |
| | | | | 10/20/2020 | | | | | | 22.8130(1) | | | | | | 6,624,895 | | | | | | 22.8130(3) | | | | | | 6,624,895 | | |
Maarten Jager
|
| | | | 2/10/2020 | | | | | | 68.4390(1) | | | | | | 19,874,686 | | | | | | 68.4390(3) | | | | | | 19,874,686 | | |
Jody Putnam
|
| | | | 7/8/2019 | | | | | | 37.6415(1) | | | | | | 10,931,092 | | | | | | 37.6415(3) | | | | | | 10,931,092 | | |
| | | | | 10/20/2020 | | | | | | 7.9846(1) | | | | | | 2,318,728 | | | | | | 7.9846(3) | | | | | | 2,318,728 | | |
Larry Fultz
|
| | | | 7/8/2019 | | | | | | 49.0480(1) | | | | | | 14,243,539 | | | | | | 49.0480(3) | | | | | | 14,243,539 | | |
Jon Sider
|
| | | | 7/8/2019 | | | | | | 37.6415(1) | | | | | | 10,931,092 | | | | | | 37.6415(3) | | | | | | 10,931,092 | | |
| | | | | 10/20/2020 | | | | | | 7.9846(1) | | | | | | 2,318,728 | | | | | | 7.9846(3) | | | | | | 2,318,728 | | |
Name
|
| |
Executive
Contributions in FY 2021 ($) |
| |
Registrant
Contributions in FY 2021 ($) |
| |
Aggregate
Earnings in FY 2021 ($) |
| |
Aggregate
Withdrawals/ Distributions ($) |
| |
Aggregate
Balance at 9/28/21 ($) |
| |||||||||||||||
Jody Putnam
|
| | | | — | | | | | | — | | | | | | — | | | | | $ | 2,858 | | | | | | — | | |
Name
|
| |
Benefit
|
| |
Change of
Control ($)(d) |
| |
Without
Cause ($)(e) |
| |
Death ($)(e)
|
| |
Disability
($)(e) |
| ||||||||||||
John Eck
|
| | Cash Severance(a) | | | | | 850,000 | | | | | | 850,000 | | | | | | 850,000 | | | | | | 850,000 | | |
| | | Time-Based RSUs—Vested | | | | | 29,812,028 | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Time-Based RSUs—Unvested/Accelerated(b)
|
| | | | 36,436,924 | | | | | | — | | | | | | — | | | | | | — | | |
| | | Performance-Based RSUs(b)(c) | | | | | 66,248,952 | | | | | | — | | | | | | — | | | | | | — | | |
| | | Phantom PIK Loan Awards—Vested | | | | | 1,520,270 | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Phantom PIK Loan Awards—Unvested/Accelerated(b)
|
| | | | 1,858,108 | | | | | | — | | | | | | — | | | | | | — | | |
Maarten Jager
|
| | Cash Severance(a) | | | | | 600,000 | | | | | | 600,000 | | | | | | 600,000 | | | | | | 600,000 | | |
| | | Time-Based RSUs—Vested | | | | | 4,968,671 | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Time-Based RSUs—Unvested/Accelerated(b)
|
| | | | 14,906,014 | | | | | | — | | | | | | — | | | | | | — | | |
| | | Performance-Based RSUs(b)(c) | | | | | 19,874,686 | | | | | | — | | | | | | — | | | | | | — | | |
| | | Phantom PIK Loan Awards—Vested | | | | | 253,378 | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Phantom PIK Loan Awards—Unvested/Accelerated(b)
|
| | | | 760,135 | | | | | | — | | | | | | — | | | | | | — | | |
Jody Putnam
|
| | Cash Severance(a) | | | | | 400,000 | | | | | | 400,000 | | | | | | 400,000 | | | | | | 400,000 | | |
| | | Time-Based RSUs—Vested | | | | | 5,465,539 | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Time-Based RSUs—Unvested/Accelerated(b)
|
| | | | 7,784,252 | | | | | | — | | | | | | — | | | | | | — | | |
| | | Performance-Based RSUs(b)(c) | | | | | 13,249,790 | | | | | | — | | | | | | — | | | | | | — | | |
| | | Phantom PIK Loan Awards—Vested | | | | | 278,716 | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Phantom PIK Loan Awards—Unvested/Accelerated(b)
|
| | | | 396,959 | | | | | | — | | | | | | — | | | | | | — | | |
Larry Fultz
|
| | Cash Severance(a) | | | | | 350,000 | | | | | | 350,000 | | | | | | 350,000 | | | | | | 350,000 | | |
| | | Time-Based RSUs—Vested | | | | | 7,121,762 | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Time-Based RSUs—Unvested/Accelerated(b)
|
| | | | 7,121,762 | | | | | | — | | | | | | — | | | | | | — | | |
| | | Performance-Based RSUs(b)(c) | | | | | 14,243,525 | | | | | | — | | | | | | — | | | | | | — | | |
| | | Phantom PIK Loan Awards—Vested | | | | | 363,176 | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Phantom PIK Loan Awards—Unvested/Accelerated(b)
|
| | | | 363,176 | | | | | | — | | | | | | — | | | | | | — | | |
Jon Sider
|
| | Cash Severance(a) | | | | | 350,000 | | | | | | 350,000 | | | | | | 350,000 | | | | | | 350,000 | | |
| | | Time-Based RSUs—Vested | | | | | 5,465,539 | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Time-Based RSUs—Unvested/Accelerated(b)
|
| | | | 7,784,252 | | | | | | — | | | | | | — | | | | | | — | | |
| | | Performance-Based RSUs(b)(c) | | | | | 13,249,790 | | | | | | — | | | | | | — | | | | | | — | | |
| | | Phantom PIK Loan Awards—Vested | | | | | 278,716 | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Phantom PIK Loan Awards—Unvested/Accelerated(b)
|
| | | | 396,959 | | | | | | — | | | | | | — | | | | | | — | | |
Name
|
| |
Fees Earned
or Paid in Cash ($)(1) |
| |
Option
Awards ($)(2)(3) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| ||||||||||||
Paul Soldatos
|
| | | | — | | | | | | — | | | | | | — | | | | | | —(4) | | |
Kevin Conroy
|
| | | | 3,845,000 | | | | | | — | | | | | | — | | | | | | 3,845,000 | | |
Chris Cook
|
| | | | 3,845,000 | | | | | | — | | | | | | — | | | | | | 3,845,000 | | |
Robert Hull
|
| | | | 3,845,000 | | | | | | 229,073 | | | | | | — | | | | | | 4,074,073 | | |
Peter Sachse
|
| | | | 3,845,000 | | | | | | — | | | | | | — | | | | | | 3,845,000 | | |
Name
|
| |
Options
|
| |
RSUs
|
| ||||||
Paul Soldatos
|
| | | | — | | | | | | — | | |
Kevin Conroy
|
| | | | 11.26 | | | | | | 68.439 | | |
Chris Cook
|
| | | | 11.26 | | | | | | 68.439 | | |
Robert Hull
|
| | | | 11.26 | | | | | | 68.439 | | |
Peter Sachse
|
| | | | 11.26 | | | | | | 68.439 | | |
| | |
Common Stock
Beneficially Owned Before Offering |
| |
Common Stock
Beneficially Owned After Offering Assuming the Underwriters’ Option is Not Exercised(1) |
| |
Common Stock
Beneficially Owned After Offering Assuming the Underwriters’ Option is Exercised in Full(1) |
| | |||||||||||
Name and Address of Beneficial Owner
|
| |
Number
|
| |
%
|
| |
Number
|
| |
%
|
| |
Number
|
| |
%
|
| | ||
5% or Greater Stockholders | | | | | | | | | | | | | | | | | | | | | | |
Steinhoff International(2)
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
Other Selling Stockholders | | | | | | | | | | | | | | | | | | | | | | |
Named Executive Officers, Directors and Director Nominees
|
| | | | | | | | | | | | | | | | | | | | | |
John W. Eck(3)
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Larry L. Fultz(5)
|
| | | | | | | | | | | | | | | | | | | | | |
Jody W. Putnam(6)
|
| | | | | | | | | | | | | | | | | | | | | |
Jonathan Sider(7)
|
| | | | | | | | | | | | | | | | | | | | | |
Paul W. Soldatos
|
| | | | | | | | | | | | | | | | | | | | | |
Robert F. Hull Jr
|
| | | | | | | | | | | | | | | | | | | | | |
Peter R. Sachse
|
| | | | | | | | | | | | | | | | | | | | | |
Anne Donovan Bodnar
|
| | | | | | | | | | | | | | | | | | | | | |
Helen Lee Bouygues
|
| | | | | | | | | | | | | | | | | | | | | |
William Kim
|
| | | | | | | | | | | | | | | | | | | | | |
All current directors and executive officers as a group ( persons)
|
| | | | | | | | | | | | | | | | | | | | | |
Average Historical Excess Availability as a percentage of
Maximum Credit |
| |
Applicable Rate for
Eurodollar Loans and Letter of Credit Fees |
| |
Applicable Rate
for ABR Loans |
| ||||||
Greater than or equal to 66.7%
|
| | | | 1.25% | | | | | | 0.25% | | |
Less than 66.7% and greater than or equal to 33.3%
|
| | | | 1.50% | | | | | | 0.50% | | |
Less than 33.3%
|
| | | | 1.75% | | | | | | 0.75% | | |
Underwriters
|
| |
Number of
Shares |
| |||
Goldman Sachs & Co. LLC
|
| | | | | | |
Barclays Capital Inc.
|
| | | | | | |
Jefferies LLC
|
| |
|
| |||
UBS Securities LLC
|
| | | | | | |
Guggenheim Securities, LLC
|
| | | | | | |
Piper Sandler & Co.
|
| | | | | | |
Truist Securities, Inc.
|
| | | | | | |
KeyBanc Capital Markets Inc.
|
| | | | | | |
Raymond James & Associates, Inc.
|
| | | | | | |
Wedbush Securities Inc.
|
| | | | | | |
Telsey Advisory Group LLC
|
| | | | | | |
Loop Capital Markets LLC
|
| | | | | | |
Academy Securities, Inc.
|
| | | | | | |
Samuel A. Ramirez & Company, Inc.
|
| | | | | | |
Total
|
| | | | | |
| | |
No Exercise
|
| |
Full Exercise
|
| ||||||
Per Share
|
| | | $ | | | | | $ | | | ||
Total
|
| | | $ | | | | | $ | | | |
| | | | | | Pages | | |
| Unaudited Condensed Consolidated Financial Statements | | | |||||
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| Audited Consolidated Financial Statements | | | |||||
| | | | | F-20 | | | |
| | | | | F-22 | | | |
| | | | | F-23 | | | |
| | | | | F-24 | | | |
| | | | | F-25 | | | |
| | | | | F-26 | | | |
| | | | | F-68 | | |
| | | | | | ||||||||
ASSETS | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 209.7 | | | | | $ | 173.2 | | |
Accounts receivables and other, net
|
| | | | 67.2 | | | | | | 61.8 | | |
Inventories, net
|
| | | | 210.2 | | | | | | 216.9 | | |
Other prepaid expenses & other current assets
|
| | | | 62.0 | | | | | | 59.6 | | |
Total current assets
|
| | | | 549.1 | | | | | | 511.5 | | |
Property and equipment, net
|
| | | | 170.8 | | | | | | 177.3 | | |
Operating lease right-of-use asset
|
| | | | 1,320.9 | | | | | | 1,298.2 | | |
Intangibles−trade names
|
| | | | 589.8 | | | | | | 589.8 | | |
Other intangible assets, net
|
| | | | 54.5 | | | | | | 55.5 | | |
Goodwill
|
| | | | 826.9 | | | | | | 826.9 | | |
Other non-current assets
|
| | | | 27.1 | | | | | | 29.2 | | |
Total assets
|
| | | $ | 3,539.1 | | | | | $ | 3,488.4 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 280.8 | | | | | $ | 253.7 | | |
Operating lease liability, current portion
|
| | | | 241.6 | | | | | | 244.0 | | |
Other accrued liabilities
|
| | | | 339.7 | | | | | | 259.2 | | |
Customer deposits
|
| | | | 119.9 | | | | | | 80.7 | | |
Current portion of long-term debt
|
| | | | 10.7 | | | | | | 13.8 | | |
Total current liabilities
|
| | | | 992.7 | | | | | | 851.4 | | |
Long-term debt: | | | | | | | | | | | | | |
Principal amount
|
| | | | 1,242.0 | | | | | | 1,238.5 | | |
Less unamortized discount and debt issuance costs
|
| | | | (42.4) | | | | | | (41.1) | | |
Net long-term debt
|
| | | | 1,199.6 | | | | | | 1,197.4 | | |
Deferred income taxes
|
| | | | 34.2 | | | | | | 34.1 | | |
Operating lease liability, net of current portion
|
| | | | 1,189.4 | | | | | | 1,159.0 | | |
Other non-current liabilities
|
| | | | 46.0 | | | | | | 49.4 | | |
Total liabilities
|
| | | | 3,461.9 | | | | | | 3,291.3 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Common stock ($0.01 par; 19,960 shares issued and outstanding
as of September 28, 2021 and December 28, 2021) |
| | | | — | | | | | | — | | |
Additional paid-in-capital
|
| | | | 4,748.1 | | | | | | 4,748.1 | | |
Preferred stock ($0.01 par, no shares issued and outstanding as of September 28, 2021 and December 28, 2021)
|
| | | | — | | | | | | — | | |
Accumulated deficit
|
| | | | (4,670.9) | | | | | | (4,551.0) | | |
Less: Treasury stock (202 shares at cost as of September 28, 2021 and December 28, 2021)
|
| | | | — | | | | | | — | | |
Total stockholders’ equity
|
| | | | 77.2 | | | | | | 197.1 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 3,539.1 | | | | | $ | 3,488.4 | | |
| | |
Thirteen Weeks Ended
|
| |||||||||
| | | | | | ||||||||
Net revenue
|
| | | $ | 929.1 | | | | | $ | 1,130.5 | | |
Cost of sales
|
| | | | 569.0 | | | | | | 652.9 | | |
Total gross profit
|
| | | | 360.1 | | | | | | 477.6 | | |
Operating expenses: | | | | | | | | | | | | | |
Sales and marketing expenses
|
| | | | 183.0 | | | | | | 237.6 | | |
General and administrative expenses
|
| | | | 62.1 | | | | | | 82.5 | | |
Total operating expenses
|
| | | | 245.1 | | | | | | 320.1 | | |
Income from operations
|
| | | | 115.0 | | | | | | 157.5 | | |
Other expense: | | | | | | | | | | | | | |
Interest expense, net
|
| | | | 25.9 | | | | | | 18.0 | | |
Loss from debt extinguishments
|
| | | | 471.3 | | | | | | — | | |
Total other expenses
|
| | | | 497.2 | | | | | | 18.0 | | |
(Loss) income before income taxes
|
| | | | (382.2) | | | | | | 139.5 | | |
Income tax (benefit) expense
|
| | | | (5.3) | | | | | | 19.6 | | |
Net (loss) income
|
| | | $ | (376.9) | | | | | $ | 119.9 | | |
(Loss) income per common share: | | | | | | | | | | | | | |
Basic
|
| | | $ | (18,883) | | | | | $ | 6,007 | | |
Diluted
|
| | | $ | (18,883) | | | | | $ | 5,995 | | |
Weighted-average common shares outstanding: | | | | | | | | | | | | | |
Basic
|
| | | | 19,960 | | | | | | 19,960 | | |
Diluted
|
| | | | 19,960 | | | | | | 20,001 | | |
| | |
Common Stock
|
| |
Preferred Stock
|
| |
Treasury
|
| | | | | | | | | | | | | |||||||||||||||||||||||||||
| | |
Outstanding
Shares, $0.01 par |
| |
Additional
Paid in Capital |
| |
Outstanding
Shares |
| |
Additional
Paid in Capital |
| |
Shares
|
| |
at cost,
$0.01 |
| |
Accumulated
Deficit |
| |
Total
Equity |
| ||||||||||||||||||||||||
Balance at September 29, 2020
|
| | | | 19,960 | | | | | $ | 4,732.6 | | | | | | — | | | | | $ | 14.4 | | | | | | 202 | | | | | $ | 0.0 | | | | | $ | (3,305.4) | | | | | $ | 1,441.6 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (376.9) | | | | | | (376.9) | | |
Stock-based compensation
|
| | | | — | | | | | | 1.1 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1.1 | | |
Balance at December 29, 2020
|
| | | | 19,960 | | | | | $ | 4,733.7 | | | | | | — | | | | | $ | 14.4 | | | | | | 202 | | | | | $ | 0.0 | | | | | $ | (3,682.3) | | | | | $ | 1,065.8 | | |
| | |
Common Stock
|
| |
Preferred Stock
|
| |
Treasury
|
| | | | | | | | | | | | | |||||||||||||||||||||||||||
| | |
Outstanding
Shares, $0.01 par |
| |
Additional
Paid in Capital |
| |
Outstanding
Shares |
| |
Additional
Paid in Capital |
| |
Shares
|
| |
at cost,
$0.01 |
| |
Accumulated
Deficit |
| |
Total
Equity |
| ||||||||||||||||||||||||
Balance at September 28, 2021
|
| | | | 19,960 | | | | | $ | 4,733.7 | | | | | | — | | | | | $ | 14.4 | | | | | | 202 | | | | | $ | 0.0 | | | | | $ | (4,670.9) | | | | | $ | 77.2 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 119.9 | | | | | | 119.9 | | |
Balance at December 28, 2021
|
| | | | 19,960 | | | | | $ | 4,733.7 | | | | | | — | | | | | $ | 14.4 | | | | | | 202 | | | | | $ | 0.0 | | | | | $ | (4,551.0) | | | | | $ | 197.1 | | |
| | |
Thirteen Weeks Ended
|
| |||||||||
| | | | | | ||||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (376.9) | | | | | $ | 119.9 | | |
Adjustments to reconcile net (loss) income to cash flows provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 14.0 | | | | | | 17.7 | | |
Impairment of property and equipment and operating lease right-of-use asset and loss on the disposal of property and equipment
|
| | | | 4.7 | | | | | | 1.4 | | |
Loss from debt extinguishments
|
| | | | 471.3 | | | | | | — | | |
Change in deferred taxes
|
| | | | (65.3) | | | | | | (0.2) | | |
Interest paid-in-kind
|
| | | | 4.4 | | | | | | — | | |
Deferred paid-in-kind interest paid on 2018 Term Loan and 2018
PIK Loan |
| | | | (90.5) | | | | | | — | | |
Amortization of deferred financing costs and discounts
|
| | | | 9.6 | | | | | | 1.3 | | |
Non-cash rent expense
|
| | | | 45.9 | | | | | | 57.3 | | |
Stock and other non-cash compensation
|
| | | | 1.7 | | | | | | 0.5 | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Change in accounts receivable and other net, other prepaid expenses and other current assets
|
| | | | (3.3) | | | | | | 6.1 | | |
Change in inventories, net
|
| | | | 0.6 | | | | | | (6.6) | | |
Change in other non-current assets
|
| | | | (0.7) | | | | | | (2.2) | | |
Change in accounts payable
|
| | | | (36.6) | | | | | | (66.3) | | |
Change in other accrued liabilities
|
| | | | 19.5 | | | | | | (78.9) | | |
Change in operating lease liability and other non-current liabilities
|
| | | | (46.5) | | | | | | (58.2) | | |
Net cash used in operating activities
|
| | | | (48.1) | | | | | | (8.2) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Additions to property, equipment and software
|
| | | | (8.2) | | | | | | (28.0) | | |
Net cash used in investing activities
|
| | | | (8.2) | | | | | | (28.0) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Repayment of debt and debt repayment premiums
|
| | | | (627.5) | | | | | | — | | |
Proceeds from borrowings
|
| | | | 536.3 | | | | | | — | | |
Payments of debt issuance costs
|
| | | | (11.8) | | | | | | — | | |
Principal payments on finance leases
|
| | | | (0.3) | | | | | | (0.3) | | |
Net cash used in financing activities
|
| | | | (103.3) | | | | | | (0.3) | | |
Net decrease in cash and cash equivalents
|
| | | | (159.6) | | | | | | (36.5) | | |
Cash and cash equivalents at beginning of the period
|
| | | | 504.6 | | | | | | 209.7 | | |
Cash and cash equivalents at end of the period
|
| | | $ | 345.0 | | | | | $ | 173.2 | | |
Cash paid for: | | | | | | | | | | | | | |
Interest
|
| | | $ | 113.4 | | | | | $ | 15.8 | | |
Income tax (refunds) payments
|
| | | $ | (1.0) | | | | | $ | — | | |
Supplemental disclosure of noncash investing activity: | | | | | | | | | | | | | |
Unpaid liabilities for additions to property, equipment and
software |
| | | $ | (1.8) | | | | | $ | (2.6) | | |
| | | | | | ||||||||
| | |
(in millions)
|
| |||||||||
Leasehold improvements
|
| | | $ | 210.0 | | | | | $ | 217.7 | | |
Computer equipment
|
| | | | 30.1 | | | | | | 34.0 | | |
Other property and equipment
|
| | | | 22.2 | | | | | | 24.3 | | |
Office equipment and furniture
|
| | | | 30.2 | | | | | | 32.5 | | |
Finance lease assets
|
| | | | 11.0 | | | | | | 11.0 | | |
Land and buildings
|
| | | | 4.8 | | | | | | 4.2 | | |
Construction in process
|
| | | | 14.3 | | | | | | 14.5 | | |
Graphics
|
| | | | 7.4 | | | | | | 8.7 | | |
Material handling equipment
|
| | | | 17.8 | | | | | | 18.2 | | |
Building signs
|
| | | | 39.7 | | | | | | 40.1 | | |
Property and equipment
|
| | | | 387.5 | | | | | | 405.2 | | |
Accumulated depreciation
|
| | | | (216.7) | | | | | | (227.9) | | |
Property and equipment, net
|
| | | $ | 170.8 | | | | | $ | 177.3 | | |
| | |
Gross Cost
|
| |
Accumulated
Amortization |
| |
Net Carrying
Value |
| |||||||||
| | |
(in millions)
|
| |||||||||||||||
Balance at September 28, 2021
|
| | | $ | 143.0 | | | | | $ | (88.5) | | | | | $ | 54.5 | | |
Additions
|
| | | | 6.4 | | | | | | — | | | | | | 6.4 | | |
Amortization expense
|
| | | | — | | | | | | (5.4) | | | | | | (5.4) | | |
Balance at December 28, 2021
|
| | | $ | 149.4 | | | | | $ | (93.9) | | | | | $ | 55.5 | | |
| | |
Useful Life
(Years) |
| | | | | ||||||||
| | | | | |
(in millions)
|
| |||||||||
Non-amortizing: | | | | | | | | | | | | | | | | |
Trade names
|
| | | | | | $ | 589.8 | | | | | $ | 589.8 | | |
Amortizing: | | | | | | | | | | | | | | | | |
Patents and trademarks
|
| |
10
|
| | | | 0.8 | | | | | | 0.8 | | |
Non-compete contracts
|
| |
5
|
| | | | 7.1 | | | | | | 7.1 | | |
Franchise rights and licensing
|
| |
10
|
| | | | 20.2 | | | | | | 20.2 | | |
Software costs
|
| |
3 to 10
|
| | | | 114.9 | | | | | | 121.3 | | |
Total intangibles
|
| | | | | | | 732.8 | | | | | | 739.2 | | |
Accumulated amortization
|
| | | | | | | (88.5) | | | | | | (93.9) | | |
Intangibles, net
|
| | | | | | $ | 644.3 | | | | | $ | 645.3 | | |
Fiscal year
|
| |
Amortization
Expense |
| |||
| | |
(in millions)
|
| |||
Remainder of 2022
|
| | | $ | 17.6 | | |
2023
|
| | | | 15.1 | | |
2024
|
| | | | 11.0 | | |
Fiscal year
|
| |
Amortization
Expense |
| |||
| | |
(in millions)
|
| |||
2025
|
| | | | 4.4 | | |
2026
|
| | | | 2.4 | | |
Thereafter
|
| | | | 5.0 | | |
| | |
Thirteen Weeks Ended
|
| |||||||||||||||||||||
| | | | | | ||||||||||||||||||||
| | |
(in millions, except percentages)
|
| |||||||||||||||||||||
Brick and Mortar
|
| | | $ | 853.1 | | | | | | 91.9% | | | | | $ | 1,027.7 | | | | | | 90.9% | | |
Digital
|
| | | | 71.9 | | | | | | 7.7% | | | | | | 82.1 | | | | | | 7.3% | | |
Other Business(1)
|
| | | | 4.1 | | | | | | 0.4% | | | | | | 20.7 | | | | | | 1.8% | | |
Total net revenue
|
| | | $ | 929.1 | | | | | | 100.0% | | | | | $ | 1,130.5 | | | | | | 100.0% | | |
| | | | | | ||||||||||||||||||||
| | |
Principal
|
| |
Unamortized
Discount and Debt Issuance Costs |
| |
Principal
|
| |
Unamortized
Discount and Debt Issuance Costs |
| ||||||||||||
| | |
(in millions)
|
| |||||||||||||||||||||
Capitalized finance lease
agreements |
| | | $ | 2.7 | | | | | $ | — | | | | | $ | 2.3 | | | | | $ | — | | |
2021 Term Loan
|
| | | | 1,250.0 | | | | | | (42.4) | | | | | | 1,250.0 | | | | | | (41.1) | | |
Total long-term debt
|
| | | | 1,252.7 | | | | | | (42.4) | | | | | | 1,252.3 | | | | | | (41.1) | | |
Less: current maturities of long-term debt
|
| | | | (10.7) | | | | | | — | | | | | | (13.8) | | | | | | — | | |
Long-term debt, net of current maturities
|
| | | $ | 1,242.0 | | | | | $ | (42.4) | | | | | $ | 1,238.5 | | | | | $ | (41.1) | | |
Debt Instruments
|
| |
Thirteen Weeks Ended
December 29, 2020 |
| |||
| | |
(in millions)
|
| |||
2018 Term Loan
|
| | | $ | 269.2 | | |
2018 PIK Loan
|
| | | | 201.2 | | |
2018 ABL Facility
|
| | | | 0.9 | | |
Total
|
| | | $ | 471.3 | | |
Fiscal Year
|
| |
Aggregate
Future Maturities |
| |||
| | |
(in millions)
|
| |||
Remainder of 2022
|
| | | $ | 10.3 | | |
2023
|
| | | | 17.0 | | |
2024
|
| | | | 12.5 | | |
2025
|
| | | | 12.5 | | |
2026
|
| | | | 9.4 | | |
Thereafter
|
| | | | 1,190.6 | | |
Total
|
| | | $ | 1,252.3 | | |
| | |
Thirteen Weeks Ended
|
| |||||||||
| | | | | | ||||||||
| | |
(in millions, except share and per
share amounts) |
| |||||||||
Net (loss) income: | | | | | | | | | | | | | |
(Loss) income available to common stockholders–basic
|
| | | $ | (376.9) | | | | | $ | 119.9 | | |
(Loss) income available to common stockholders–diluted
|
| | | $ | (376.9) | | | | | $ | 119.9 | | |
| | |
Thirteen Weeks Ended
|
| |||||||||
| | | | | | ||||||||
| | |
(in millions, except share and per
share amounts) |
| |||||||||
Shares: | | | | | | | | | | | | | |
Weighted average number of common shares outstanding–
basic |
| | | | 19,960 | | | | | | 19,960 | | |
Net effect of dilutive stock options based on the treasury stock method
|
| | | | — | | | | | | 41 | | |
Weighted average number of common shares outstanding–diluted
|
| | | | 19,960 | | | | | | 20,001 | | |
Basic (loss) income per common share
|
| | | $ | (18,883) | | | | | $ | 6,007 | | |
Diluted (loss) income per common share
|
| | | $ | (18,883) | | | | | $ | 5,995 | | |
|
| | |
Thirteen Weeks Ended
|
| |||||||||
| | | | | | ||||||||
| | |
(in millions)
|
| |||||||||
Balance at beginning of period
|
| | | $ | 19.4 | | | | | $ | 23.3 | | |
Payments made for warranties satisfied
|
| | | | (1.9) | | | | | | (2.0) | | |
Warranties reserved for new products delivered
|
| | | | 1.8 | | | | | | 2.1 | | |
Change in estimate for pre-existing warranty liabilities
|
| | | | 1.1 | | | | | | 0.3 | | |
Balance at end of period
|
| | | | 20.4 | | | | | | 23.7 | | |
Less: current portion included in accrued liabilities
|
| | | | (5.6) | | | | | | (6.1) | | |
Non-current portion included in other non-current liabilities
|
| | | $ | 14.8 | | | | | $ | 17.6 | | |
| | |
Thirteen Weeks Ended
|
| |||||||||
| | | | | | ||||||||
| | |
(in millions)
|
| |||||||||
Operating lease cost
|
| | | $ | 87.2 | | | | | $ | 86.0 | | |
Short-term lease cost
|
| | | | 1.0 | | | | | | 0.7 | | |
Variable lease cost
|
| | | | 24.9 | | | | | | 23.8 | | |
Total lease cost
|
| | | $ | 113.1 | | | | | $ | 110.5 | | |
| | |
Thirteen Weeks Ended
|
| |||||||||
| | | | | | ||||||||
| | |
(in millions)
|
| |||||||||
Cash paid for operating leases
|
| | | $ | 90.1 | | | | | $ | 91.3 | | |
ROU asset obtained in exchange for new operating lease
liabilities |
| | | $ | 79.0 | | | | | $ | 34.9 | | |
| | | | | | ||||||||
Weighted-average remaining lease term (years)
|
| | | | 6.1 | | | | | | 6.0 | | |
Weighted-average incremental borrowing rate
|
| | | | 8.7% | | | | | | 8.5% | | |
Fiscal Year
|
| |
Aggregate
Future Maturities |
| |||
| | |
(in millions)
|
| |||
Remainder of 2022
|
| | | $ | 259.2 | | |
2023
|
| | | | 368.3 | | |
2024
|
| | | | 302.4 | | |
2025
|
| | | | 238.1 | | |
2026
|
| | | | 202.7 | | |
Thereafter
|
| | | | 398.4 | | |
Total undiscounted lease payments
|
| | | | 1,769.1 | | |
Less: imputed interest
|
| | | | 366.1 | | |
Total operating lease liabilities
|
| | | | 1,403.0 | | |
Less: current operating lease liabilities
|
| | | | 244.0 | | |
Total non-current operating lease liabilities
|
| | | $ | 1,159.0 | | |
| | | | | | ||||||||
Assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 504.6 | | | | | $ | 209.7 | | |
Accounts receivables and other, net
|
| | | | 64.7 | | | | | | 67.2 | | |
Inventories, net
|
| | | | 216.4 | | | | | | 210.2 | | |
Other prepaid expenses & other current assets
|
| | | | 47.9 | | | | | | 62.0 | | |
Total current assets
|
| | | | 833.6 | | | | | | 549.1 | | |
Property and equipment, net
|
| | | | 138.7 | | | | | | 170.8 | | |
Operating lease right-of-use asset
|
| | | | 1,297.4 | | | | | | 1,320.9 | | |
Intangibles−trade names
|
| | | | 589.8 | | | | | | 589.8 | | |
Other intangible assets, net
|
| | | | 48.7 | | | | | | 54.5 | | |
Goodwill
|
| | | | 874.1 | | | | | | 826.9 | | |
Other non-current assets
|
| | | | 15.4 | | | | | | 27.1 | | |
Total assets
|
| | | $ | 3,797.7 | | | | | $ | 3,539.1 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 247.4 | | | | | $ | 280.8 | | |
Operating lease liability, current portion
|
| | | | 247.4 | | | | | | 241.6 | | |
Other accrued liabilities
|
| | | | 232.4 | | | | | | 339.7 | | |
Customer deposits
|
| | | | 92.2 | | | | | | 119.9 | | |
Current portion of long-term debt
|
| | | | 21.6 | | | | | | 10.7 | | |
Total current liabilities
|
| | | | 841.0 | | | | | | 992.7 | | |
Long term debt: | | | | | | | | | | | | | |
Principal amount
|
| | | | 650.9 | | | | | | 1,242.0 | | |
Less unamortized discount and debt issuance costs
|
| | | | (415.9) | | | | | | (42.4) | | |
Net long-term debt
|
| | | | 235.0 | | | | | | 1,199.6 | | |
Deferred income taxes
|
| | | | 60.2 | | | | | | 34.2 | | |
Operating lease liability, net of current portion
|
| | | | 1,190.7 | | | | | | 1,189.4 | | |
Other non-current liabilities
|
| | | | 29.2 | | | | | | 46.0 | | |
Total liabilities
|
| | | | 2,356.1 | | | | | | 3,461.9 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Common stock ($.01 par; 19,960 shares issued and outstanding as of September 29, 2020 and September 28, 2021)
|
| | | | — | | | | | | — | | |
Additional paid-in-capital
|
| | | | 4,747.0 | | | | | | 4,748.1 | | |
Preferred shares ($.01 par, 0 shares issued and outstanding as of
September 29, 2020 and September 28, 2021) |
| | | | — | | | | | | — | | |
Accumulated deficit
|
| | | | (3,305.4) | | | | | | (4,670.9) | | |
Less: Treasury stock (202.4 shares of common stock at cost as of September 29, 2020 and September 28, 2021)
|
| | | | — | | | | | | — | | |
Total stockholders’ equity
|
| | | | 1,441.6 | | | | | | 77.2 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 3,797.7 | | | | | $ | 3,539.1 | | |
| | |
Fiscal Year Ended
|
| |||||||||||||||
| | | | | | | | ||||||||||||
Net revenue
|
| | | $ | 2,962.3 | | | | | $ | 3,256.6 | | | | | $ | 4,392.9 | | |
Cost of sales
|
| | | | 2,046.1 | | | | | | 2,142.6 | | | | | | 2,530.3 | | |
Total gross profit
|
| | | | 916.2 | | | | | | 1,114.0 | | | | | | 1,862.6 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | |
Sales and marketing expenses
|
| | | | 708.9 | | | | | | 704.9 | | | | | | 950.0 | | |
General and administrative expenses
|
| | | | 276.1 | | | | | | 247.2 | | | | | | 316.1 | | |
Special bonus and director fees
|
| | | | — | | | | | | — | | | | | | 151.9 | | |
Impairment of intangible assets
|
| | | | 568.9 | | | | | | — | | | | | | — | | |
Impairment of goodwill
|
| | | | 244.2 | | | | | | — | | | | | | 47.2 | | |
Total operating expenses
|
| | | | 1,798.1 | | | | | | 952.1 | | | | | | 1,465.2 | | |
(Loss) income from operations
|
| | | | (881.9) | | | | | | 161.9 | | | | | | 397.4 | | |
Other expense (income): | | | | | | | | | | | | | | | | | | | |
Interest expense, net
|
| | | | 107.3 | | | | | | 122.3 | | | | | | 54.6 | | |
Remeasurement of embedded derivatives
|
| | | | 12.2 | | | | | | (131.7) | | | | | | — | | |
Loss from debt extinguishments
|
| | | | 8.5 | | | | | | — | | | | | | 490.3 | | |
Total other expenses (income)
|
| | | | 128.0 | | | | | | (9.4) | | | | | | 544.9 | | |
(Loss) income before income taxes
|
| | | | (1,009.9) | | | | | | 171.3 | | | | | | (147.5) | | |
Income tax (benefit) expense
|
| | | | (44.1) | | | | | | 45.7 | | | | | | 17.6 | | |
Net (loss) income
|
| | | $ | (965.8) | | | | | $ | 125.6 | | | | | $ | (165.1) | | |
(Loss) income per common share: | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | (51,871) | | | | | $ | 6,293 | | | | | $ | (8,272) | | |
Diluted
|
| | | $ | (51,871) | | | | | $ | 6,288 | | | | | $ | (8,272) | | |
Weighted-average common shares outstanding: | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 18,619 | | | | | | 19,960 | | | | | | 19,960 | | |
Diluted
|
| | | | 18,619 | | | | | | 19,973 | | | | | | 19,960 | | |
| | |
Common Stock
|
| |
Preferred
|
| |
Treasury
|
| | | | | | | | | | | | | |||||||||||||||||||||||||||
| | |
Outstanding,
$0.01 par |
| |
Additional
Paid in Capital |
| |
Outstanding
|
| |
Additional
Paid in Capital |
| |
Shares
|
| |
at cost,
$.01 |
| |
Accumulated
Deficit |
| |
Total
Equity |
| ||||||||||||||||||||||||
Balance at October 3, 2018
|
| | | | 10,000 | | | | | $ | 1,112.0 | | | | | | 202.4 | | | | | $ | 14.4 | | | | | | — | | | | | $ | — | | | | | $ | (2,434.0) | | | | | $ | (1,307.6) | | |
Cumulative effect of the adoption
of ASC Topic 606(1) |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (26.0) | | | | | | (26.0) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (965.8) | | | | | | (965.8) | | |
Repurchase of preferred
shares |
| | | | — | | | | | | — | | | | | | (202.4) | | | | | | — | | | | | | 202.4 | | | | | | — | | | | | | — | | | | | | — | | |
Issuance of common stock to exit
lenders |
| | | | 9,960 | | | | | | 152.2 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 152.2 | | |
Stock-based compensation
|
| | | | — | | | | | | 6.2 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6.2 | | |
Conversion of debt to equity
|
| | | | — | | | | | | 3,451.9 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,451.9 | | |
Balance at October 1, 2019
|
| | | | 19,960 | | | | | | 4,722.3 | | | | | | — | | | | | | 14.4 | | | | | | 202.4 | | | | | | — | | | | | | (3,425.8) | | | | | | 1,310.9 | | |
Cumulative effect of the adoption
of ASC Topic 842(2) |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5.2) | | | | | | (5.2) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 125.6 | | | | | | 125.6 | | |
Stock-based compensation
|
| | | | — | | | | | | 10.3 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 10.3 | | |
Balance at September 29, 2020
|
| | | | 19,960 | | | | | | 4,732.6 | | | | | | — | | | | | | 14.4 | | | | | | 202.4 | | | | | | — | | | | | | (3,305.4) | | | | | | 1,441.6 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (165.1) | | | | | | (165.1) | | |
Dividends on common stock ($60,141 per share)(3)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,200.4) | | | | | | (1,200.4) | | |
Stock-based compensation
|
| | | | — | | | | | | 1.1 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1.1 | | |
Balance at September 28, 2021
|
| | | | 19,960 | | | | | $ | 4,733.7 | | | | | | — | | | | | $ | 14.4 | | | | | | 202.4 | | | | | $ | — | | | | | $ | (4,670.9) | | | | | $ | 77.2 | | |
| | |
Fiscal Year Ended
|
| |||||||||||||||
| | | | | | | | ||||||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (965.8) | | | | | $ | 125.6 | | | | | $ | (165.1) | | |
Adjustments to reconcile net (loss) income to cash flows (used in)
provided by operating activities: |
| | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 69.1 | | | | | | 57.6 | | | | | | 57.3 | | |
Impairment of property and equipment and operating lease right-of-use asset and loss on the disposal of property and equipment
|
| | | | 12.5 | | | | | | 15.0 | | | | | | 8.6 | | |
Loss from debt extinguishments
|
| | | | — | | | | | | — | | | | | | 490.3 | | |
Impairment of goodwill
|
| | | | 244.2 | | | | | | — | | | | | | 47.2 | | |
Impairment of intangible assets
|
| | | | 568.9 | | | | | | — | | | | | | — | | |
Change in deferred taxes
|
| | | | (45.3) | | | | | | 43.5 | | | | | | (26.0) | | |
Interest paid-in-kind
|
| | | | 89.6 | | | | | | 26.0 | | | | | | 4.4 | | |
Deferred paid-in-kind interest paid on 2018 Term Loan and 2018 PIK Loan
|
| | | | — | | | | | | — | | | | | | (90.5) | | |
Amortization of deferred financing costs and discounts
|
| | | | 18.1 | | | | | | 40.0 | | | | | | 13.0 | | |
Remeasurement of embedded derivatives
|
| | | | 12.2 | | | | | | (131.7) | | | | | | — | | |
Non-cash rent expense
|
| | | | — | | | | | | 158.8 | | | | | | 204.9 | | |
Lease purchase accounting adjustments
|
| | | | (26.0) | | | | | | — | | | | | | — | | |
Stock and other non-cash compensation
|
| | | | 8.2 | | | | | | 13.2 | | | | | | 3.7 | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | | | | | | | |
Change in accounts receivable and other net, other prepaid expenses and other current assets
|
| | | | (5.4) | | | | | | 2.8 | | | | | | (13.9) | | |
Change in inventories, net
|
| | | | 46.3 | | | | | | (50.1) | | | | | | 6.2 | | |
Change in other non-current assets
|
| | | | 8.5 | | | | | | 2.6 | | | | | | (5.9) | | |
Change in accounts payable
|
| | | | (4.3) | | | | | | 146.6 | | | | | | 61.0 | | |
Change in other accrued liabilities
|
| | | | (30.3) | | | | | | 8.7 | | | | | | 85.4 | | |
Change in operating lease liability and other non-current liabilities
|
| | | | (9.8) | | | | | | (79.6) | | | | | | (228.0) | | |
Net cash (used in) provided by operating activities
|
| | | | (9.3) | | | | | | 379.0 | | | | | | 452.6 | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | |
Additions to property, equipment and software
|
| | | | (41.1) | | | | | | (47.4) | | | | | | (97.2) | | |
Proceeds on the sale of property and equipment
|
| | | | — | | | | | | 1.6 | | | | | | — | | |
Investment in Convertible Note Receivable
|
| | | | — | | | | | | — | | | | | | (5.0) | | |
Acquisition of subsidiaries & businesses, net of cash
acquired |
| | | | — | | | | | | (0.5) | | | | | | — | | |
Net cash used in investing activities
|
| | | | (41.1) | | | | | | (46.3) | | | | | | (102.2) | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Proceeds from common stock issued
|
| | | | 152.2 | | | | | | — | | | | | | — | | |
Proceeds from debtor in possession facilities
|
| | | | 153.0 | | | | | | — | | | | | | — | | |
Payments on debtor in possession facilities
|
| | | | (153.0) | | | | | | — | | | | | | — | | |
Payment of dividend
|
| | | | — | | | | | | — | | | | | | (1,200.4) | | |
Repayment of debt and debt repayment premiums
|
| | | | (87.8) | | | | | | (61.8) | | | | | | (1,187.9) | | |
Proceeds from borrowings
|
| | | | 248.8 | | | | | | 60.0 | | | | | | 1,773.8 | | |
Payments of debt issuance costs
|
| | | | (18.3) | | | | | | — | | | | | | (29.7) | | |
Principal payments on finance leases
|
| | | | (2.1) | | | | | | (1.3) | | | | | | (1.1) | | |
Payment on Steinhoff Term Loan
|
| | | | (83.5) | | | | | | — | | | | | | — | | |
Net cash provided by (used in) financing activities
|
| | | | 209.3 | | | | | | (3.1) | | | | | | (645.3) | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | 158.9 | | | | | | 329.6 | | | | | | (294.9) | | |
Cash and cash equivalents at beginning of the period
|
| | | | 16.1 | | | | | | 175.0 | | | | | | 504.6 | | |
Cash and cash equivalents at end of the period
|
| | | $ | 175.0 | | | | | $ | 504.6 | | | | | $ | 209.7 | | |
| | |
Years
|
|
Buildings
|
| |
30
|
|
Equipment, computers and other
|
| |
2 to 5
|
|
Furniture and fixtures
|
| |
7
|
|
Store signs
|
| |
7
|
|
Vehicles
|
| |
5
|
|
| | |
Fiscal 2020
|
| |
Fiscal 2021
|
| ||||||
| | |
(in millions)
|
| |||||||||
Balance at beginning of fiscal year
|
| | | $ | 19.2 | | | | | $ | 19.4 | | |
Payments made for warranties satisfied
|
| | | | (6.8) | | | | | | (7.8) | | |
Warranties reserved for new products delivered
|
| | | | 6.1 | | | | | | 8.3 | | |
Change in estimate for pre-existing warranty liabilities
|
| | | | 0.9 | | | | | | 3.4 | | |
Balance at end of fiscal year
|
| | | | 19.4 | | | | | | 23.3 | | |
Less: current portion included in accrued liabilities
|
| | | | (5.4) | | | | | | (6.0) | | |
Non-current portion included in other non-current liabilities
|
| | | $ | 14.0 | | | | | $ | 17.3 | | |
| | |
Fiscal 2019
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
| |||||||||
| | |
(in millions)
|
| |||||||||||||||
Cost of sales
|
| | | $ | 0.2 | | | | | $ | 0.1 | | | | | $ | 0.3 | | |
Sales and marketing expenses
|
| | | | 1.6 | | | | | | 1.0 | | | | | | 4.3 | | |
General and administrative expenses
|
| | | | 0.8 | | | | | | 0.6 | | | | | | 1.9 | | |
Total matching contributions
|
| | | $ | 2.6 | | | | | $ | 1.7 | | | | | $ | 6.5 | | |
| | | | | | ||||||||
| | |
(in millions)
|
| |||||||||
Vendor incentives
|
| | | $ | 48.8 | | | | | $ | 35.9 | | |
Finance companies
|
| | | | 4.2 | | | | | | 10.1 | | |
Franchisees
|
| | | | 1.5 | | | | | | 1.1 | | |
Income tax receivable
|
| | | | 2.1 | | | | | | 9.8 | | |
Tenant improvement allowances
|
| | | | 0.3 | | | | | | 1.4 | | |
Insurance
|
| | | | 9.0 | | | | | | 7.7 | | |
Other receivables
|
| | | | 0.9 | | | | | | 2.6 | | |
Less: Allowance for doubtful accounts
|
| | | | (2.1) | | | | | | (1.4) | | |
Total
|
| | | $ | 64.7 | | | | | $ | 67.2 | | |
| | | | | | ||||||||
| | |
(in millions)
|
| |||||||||
Leasehold improvements
|
| | | $ | 177.7 | | | | | $ | 210.0 | | |
Computer equipment
|
| | | | 21.1 | | | | | | 30.1 | | |
Other property and equipment
|
| | | | 19.5 | | | | | | 22.2 | | |
Office equipment and furniture
|
| | | | 28.3 | | | | | | 30.2 | | |
Finance lease assets
|
| | | | 11.1 | | | | | | 11.0 | | |
Land and buildings
|
| | | | 4.8 | | | | | | 4.8 | | |
Construction in process
|
| | | | 2.6 | | | | | | 14.3 | | |
Graphics
|
| | | | 10.0 | | | | | | 7.4 | | |
Material handling equipment
|
| | | | 17.0 | | | | | | 17.8 | | |
Building signs
|
| | | | 39.0 | | | | | | 39.7 | | |
Property and equipment
|
| | | | 331.1 | | | | | | 387.5 | | |
Accumulated depreciation
|
| | | | (192.4) | | | | | | (216.7) | | |
Property and equipment, net
|
| | | $ | 138.7 | | | | | $ | 170.8 | | |
| | |
Goodwill
|
| |
Trade Names
|
| ||||||
| | |
(in millions)
|
| |||||||||
Balance at October 2, 2019
|
| | | $ | 873.6 | | | | | $ | 589.8 | | |
Additions
|
| | | | 0.5 | | | | | | — | | |
Balance at September 29, 2020
|
| | | | 874.1 | | | | | | 589.8 | | |
Impairment loss
|
| | | | (47.2) | | | | | | — | | |
Balance at September 28, 2021
|
| | | $ | 826.9 | | | | | $ | 589.8 | | |
| | |
Gross Cost
|
| |
Accumulated
Amortization |
| |
Net Carrying
Value |
| |||||||||
| | |
(in millions)
|
| |||||||||||||||
Balance at October 2, 2019
|
| | | $ | 102.0 | | | | | $ | (54.0) | | | | | $ | 48.0 | | |
Additions
|
| | | | 18.1 | | | | | | — | | | | | | 18.1 | | |
Amortization expense
|
| | | | — | | | | | | (17.4) | | | | | | (17.4) | | |
Balance at September 29, 2020
|
| | | $ | 120.1 | | | | | $ | (71.4) | | | | | $ | 48.7 | | |
Additions
|
| | | | 22.9 | | | | | | — | | | | | | 22.9 | | |
Amortization expense
|
| | | | — | | | | | | (17.1) | | | | | | (17.1) | | |
Balance at September 28, 2021
|
| | | $ | 143.0 | | | | | $ | (88.5) | | | | | $ | 54.5 | | |
| | |
Useful Life
(Years) |
| | | | | ||||||||
| | |
(in millions)
|
| ||||||||||||
Non-amortizing: | | | | | | | | | | | | | | | | |
Trade names
|
| | | | | | $ | 589.8 | | | | | $ | 589.8 | | |
Amortizing: | | | | | | | | | | | | | | | | |
Patents and trademarks
|
| |
10
|
| | | | 0.8 | | | | | | 0.8 | | |
Non-compete contracts
|
| |
5
|
| | | | 7.1 | | | | | | 7.1 | | |
Franchise rights and licensing
|
| |
10
|
| | | | 18.9 | | | | | | 20.2 | | |
Software costs
|
| |
3 to 10
|
| | | | 93.3 | | | | | | 114.9 | | |
Total intangibles
|
| | | | | | | 709.9 | | | | | | 732.8 | | |
Accumulated amortization
|
| | | | | | | (71.4) | | | | | | (88.5) | | |
Intangibles, net
|
| | | | | | $ | 638.5 | | | | | $ | 644.3 | | |
Fiscal year
|
| |
Amortization
Expenses |
| |||
| | |
(in millions)
|
| |||
2022
|
| | | $ | 19.1 | | |
2023
|
| | | | 15.6 | | |
2024
|
| | | | 9.3 | | |
2025
|
| | | | 3.3 | | |
2026
|
| | | | 2.4 | | |
Thereafter
|
| | | | 4.8 | | |
| | | | | | ||||||||||||||||||||
| | |
Principal
|
| |
Unamortized
Discount and Debt Issuance Costs |
| |
Principal
|
| |
Unamortized
Discount and Debt Issuance Costs |
| ||||||||||||
| | |
(in millions)
|
| |||||||||||||||||||||
Capitalized finance lease agreements
|
| | | $ | 4.0 | | | | | $ | — | | | | | $ | 2.7 | | | | | $ | — | | |
2021 Term Loan
|
| | | | — | | | | | | — | | | | | | 1,250.0 | | | | | | (42.4) | | |
2018 Term Loan
|
| | | | 464.9 | | | | | | (234.5) | | | | | | — | | | | | | — | | |
2018 PIK Loan
|
| | | | 203.6 | | | | | | (163.1) | | | | | | — | | | | | | — | | |
Embedded derivatives
|
| | | | — | | | | | | (18.3) | | | | | | — | | | | | | — | | |
Total long-term debt
|
| | | | 672.5 | | | | | | (415.9) | | | | | | 1,252.7 | | | | | | (42.4) | | |
Less: current maturities of long-term debt
|
| | | | (21.6) | | | | | | — | | | | | | (10.7) | | | | | | — | | |
Long-term debt, net of current maturities
|
| | | $ | 650.9 | | | | | $ | (415.9) | | | | | $ | 1,242.0 | | | | | $ | (42.4) | | |
Debt Instruments
|
| |
(in millions)
|
| |||
2018 Term Loan
|
| | | $ | 269.2 | | |
2018 PIK Loan
|
| | | | 201.2 | | |
2020 Term Loan
|
| | | | 18.6 | | |
2018 and 2020 ABL Facility
|
| | | | 1.3 | | |
Total
|
| | | $ | 490.3 | | |
| | |
Fair Value
Upon Issuance (A) |
| |
Allocation
Percentage (B) |
| |
Allocated
Proceeds (C = $400M * B) |
| |
Fair
Value of Bifurcated Embedded Derivatives (D) |
| |
Value
Assigned to the Debt Hosts (E = C−D) |
| |||||||||||||||
| | |
(in millions, except for percentages)
|
| |||||||||||||||||||||||||||
2018 Term Loan
|
| | | $ | 400.0 | | | | | | 48.3% | | | | | $ | 193.3 | | | | | $ | 56.0 | | | | | $ | 137.3 | | |
2018 PIK Loan
|
| | | | 112.7 | | | | | | 13.6% | | | | | | 54.5 | | | | | | 45.3 | | | | | | 9.2 | | |
Mattress Firm
Shares |
| | | | 315.0 | | | | | | 38.1% | | | | | | 152.2 | | | | | | N/A | | | | | | N/A | | |
Total
|
| | | $ | 827.7 | | | | | | 100.0% | | | | | $ | 400.0 | | | | | | N/A | | | | | | N/A | | |
Average Historical Excess Availability as a percentage of
Maximum Credit |
| |
Applicable Rate for
Eurodollar Loans and Letter of Credit Fees |
| |
Applicable Rate
for ABR Loans |
| ||||||
Greater than or equal to 66.7%
|
| | | | 1.25% | | | | | | 0.25% | | |
Less than 66.7% and greater than or equal to 33.3%
|
| | | | 1.50% | | | | | | 0.50% | | |
Less than 33.3%
|
| | | | 1.75% | | | | | | 0.75% | | |
Fiscal Year
|
| |
Aggregate Future
Maturities |
| |||
| | |
(in millions)
|
| |||
2022
|
| | | $ | 10.7 | | |
2023
|
| | | | 17.0 | | |
2024
|
| | | | 12.5 | | |
2025
|
| | | | 9.4 | | |
2026
|
| | | | 12.5 | | |
Thereafter
|
| | | | 1,190.6 | | |
Total
|
| | | $ | 1,252.7 | | |
| | | | |
Fair Value Measurements
|
| |
Fiscal 2019
Impairments |
| ||||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||||||||
| | |
(in millions)
|
| |||||||||||||||||||||||||||
Goodwill and intangibles (Note 3)
|
| | | $ | 1,463.4 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,463.4 | | | | | $ | 813.1 | | |
Property and equipment (Note 2)
|
| | | | 154.7 | | | | | | — | | | | | | — | | | | | | 154.7 | | | | | | 9.3 | | |
| | | | |
Fair Value Measurements
|
| |
Fiscal 2020
Impairments |
| ||||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||||||||
| | |
(in millions)
|
| |||||||||||||||||||||||||||
Goodwill and intangibles (Note 3)
|
| | | $ | 1,463.9 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,463.9 | | | | | $ | — | | |
Operating lease ROU asset (Note 6)
|
| | | | 1,297.4 | | | | | | — | | | | | | — | | | | | | 1,297.4 | | | | | | 9.5 | | |
Property and equipment (Note 2)
|
| | | | 138.7 | | | | | | — | | | | | | — | | | | | | 138.7 | | | | | | 3.7 | | |
| | | | |
Fair Value Measurements
|
| |
Fiscal 2021
Impairments |
| ||||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||||||||
| | |
(in millions)
|
| |||||||||||||||||||||||||||
Goodwill and intangibles (Note 3)
|
| | | $ | 1,416.7 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,416.7 | | | | | $ | 47.2 | | |
Operating lease ROU asset (Note 6)
|
| | | | 1,320.9 | | | | | | — | | | | | | — | | | | | | 1,320.9 | | | | | | 4.7 | | |
Property and equipment (Note 2)
|
| | | | 170.8 | | | | | | — | | | | | | — | | | | | | 170.8 | | | | | | 1.3 | | |
Performance Warrants (Note 1)
|
| | | | 1.1 | | | | | | — | | | | | | — | | | | | | 1.1 | | | | | | — | | |
Valuation Technique
|
| |
Significant
unobservable Inputs |
| |
Unobservable
Input |
| |||
Goodwill | | | | | | | | | | |
Income approach and Market approach
|
| |
WACC
|
| | | | 10.1% | | |
Intangible assets | | | | | | | | | | |
Income approach
|
| |
WACC
|
| | | | 11.1% | | |
Income approach
|
| |
Royalty rate
|
| | | | 2% | | |
Property and equipment | | | | | | | | | | |
Income approach
|
| |
WACC
|
| | | | 11.1% | | |
Valuation Technique
|
| |
Significant
unobservable Inputs |
| |
Unobservable
Input |
| |||
ROU assets | | | | | | | | | | |
Income approach and Market approach
|
| |
WACC
|
| | | | 9.25% | | |
Property and equipment | | | | | | | | | | |
Income approach
|
| |
WACC
|
| | | | 13% | | |
Valuation Technique
|
| |
Significant
unobservable Inputs |
| |
Unobservable
Input |
|
ROU assets | | | | | | | |
Income approach and Market approach
|
| |
WACC
|
| |
7−9%
|
|
Property and equipment | | | | | | | |
Income approach
|
| |
WACC
|
| |
11−13%
|
|
Goodwill | | | | | | | |
Income approach
|
| |
WACC
|
| |
11%
|
|
| | | | |
Fair Value Measurements
|
| |||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||
| | |
(in millions)
|
| |||||||||||||||||||||
2018 PIK Loan−Embedded Derivative
|
| | | $ | (18.3) | | | | | $ | — | | | | | $ | (18.3) | | | | | $ | — | | |
| | | | |
Fair Value Measurements
|
| |||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||
| | |
(in millions)
|
| |||||||||||||||||||||
Convertible Note Receivable (Note 1)
|
| | | $ | 5.1 | | | | | $ | — | | | | | $ | — | | | | | $ | 5.1 | | |
| | | | ||||||||||||||||
| | |
Estimated
Fair Value |
| |
Fair Value of
Bifurcated Embedded Derivatives |
| |
Carrying
Value |
| |||||||||
| | |
(in millions)
|
| |||||||||||||||
2018 Term Loan−Level 2
|
| | | $ | 515.2 | | | | | $ | — | | | | | $ | 230.4 | | |
2018 PIK Loan−Level 2
|
| | | $ | 210.2 | | | | | $ | (18.3) | | | | | $ | 22.2 | | |
| | |
As Reported
under Topic 840(1) |
| |
Topic 842
(Leases) |
| |
As Reported
under Topic 842 |
| |||||||||
| | |
(in millions)
|
| |||||||||||||||
Cash and cash equivalents
|
| | | $ | 175.0 | | | | | $ | — | | | | | $ | 175.0 | | |
Accounts receivables, net
|
| | | | 65.5 | | | | | | — | | | | | | 65.5 | | |
Inventories, net
|
| | | | 166.3 | | | | | | — | | | | | | 166.3 | | |
Prepaid rent
|
| | | | 37.3 | | | | | | (36.8) | | | | | | 0.5 | | |
Other prepaid expenses & other current assets
|
| | | | 43.6 | | | | | | 7.4 | | | | | | 51.0 | | |
Total current assets
|
| | | | 487.7 | | | | | | (29.4) | | | | | | 458.3 | | |
Property and equipment, net
|
| | | | 154.7 | | | | | | — | | | | | | 154.7 | | |
Operating lease right-of-use asset(2)
|
| | | | — | | | | | | 1,142.1 | | | | | | 1,142.1 | | |
Intangibles−trade names
|
| | | | 589.8 | | | | | | — | | | | | | 589.8 | | |
Other intangible assets, net
|
| | | | 48.0 | | | | | | — | | | | | | 48.0 | | |
Goodwill
|
| | | | 873.6 | | | | | | — | | | | | | 873.6 | | |
Other non-current assets
|
| | | | 20.3 | | | | | | (2.3) | | | | | | 18.0 | | |
Total assets
|
| | | $ | 2,174.1 | | | | | $ | 1,110.4 | | | | | $ | 3,284.5 | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 154.4 | | | | | $ | — | | | | | $ | 154.4 | | |
Operating lease liability, current(3)
|
| | | | — | | | | | | 159.5 | | | | | | 159.5 | | |
Other accrued liabilities
|
| | | | 230.7 | | | | | | (7.3) | | | | | | 223.4 | | |
Customer deposits
|
| | | | 38.6 | | | | | | — | | | | | | 38.6 | | |
Current portion of long-term debt
|
| | | | 1.3 | | | | | | — | | | | | | 1.3 | | |
Total current liabilities
|
| | | | 425.0 | | | | | | 152.2 | | | | | | 577.2 | | |
Net long-term debt
|
| | | | 321.3 | | | | | | — | | | | | | 321.3 | | |
Deferred income taxes
|
| | | | 16.7 | | | | | | — | | | | | | 16.7 | | |
Deferred rent liability
|
| | | | 55.4 | | | | | | (55.4) | | | | | | — | | |
Operating lease liability, net of current portion(3)
|
| | | | — | | | | | | 1,043.1 | | | | | | 1,043.1 | | |
Other non-current liabilities
|
| | | | 44.8 | | | | | | (24.3) | | | | | | 20.5 | | |
Total liabilities
|
| | | | 863.2 | | | | | | 1,115.6 | | | | | | 1,978.8 | | |
Stockholders’ equity: | | | | | | | | | | | | | | | | | | | |
Additional paid-in-capital
|
| | | | 4,736.7 | | | | | | — | | | | | | 4,736.7 | | |
Accumulated deficit(4)
|
| | | | (3,425.8) | | | | | | (5.2) | | | | | | (3,431.0) | | |
Total stockholders’ equity
|
| | | | 1,310.9 | | | | | | (5.2) | | | | | | 1,305.7 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 2,174.1 | | | | | $ | 1,110.4 | | | | | $ | 3,284.5 | | |
| | | | | | ||||||||
| | |
(in millions)
|
| |||||||||
Operating lease ROU asset
|
| | | $ | 1,297.4 | | | | | $ | 1,320.9 | | |
Operating lease liability, current portion
|
| | | $ | 247.4 | | | | | $ | 241.6 | | |
Operating lease liability, net of current portion
|
| | | | 1,190.7 | | | | | | 1,189.4 | | |
Total operating lease liabilities
|
| | | $ | 1,438.1 | | | | | $ | 1,431.0 | | |
| | |
Fiscal 2020
|
| |
Fiscal 2021
|
| ||||||
| | |
(in millions)
|
| |||||||||
Operating lease cost
|
| | | $ | 360.0 | | | | | $ | 343.9 | | |
Short-term lease cost
|
| | | | 7.7 | | | | | | 7.1 | | |
Variable lease cost
|
| | | | 93.5 | | | | | | 98.2 | | |
Total lease cost
|
| | | $ | 461.2 | | | | | $ | 449.2 | | |
| | |
Fiscal 2020
|
| |
Fiscal 2021
|
| ||||||
| | |
(in millions)
|
| |||||||||
Cash paid for operating leases
|
| | | $ | 279.9 | | | | | $ | 359.2 | | |
ROU asset obtained in exchange for new operating lease liabilities(1)
|
| | | $ | 321.5 | | | | | $ | 233.0 | | |
| | | | | | ||||||||
Weighted-average remaining lease term (years)
|
| | | | 6.4 | | | | | | 6.1 | | |
Weighted-average incremental borrowing rate
|
| | | | 11.3% | | | | | | 8.7% | | |
Fiscal Year
|
| |
Aggregate Future
Maturities |
| |||
| | |
(in millions)
|
| |||
2022
|
| | | $ | 348.6 | | |
2023
|
| | | | 361.6 | | |
2024
|
| | | | 296.1 | | |
2025
|
| | | | 232.5 | | |
2026
|
| | | | 196.7 | | |
Thereafter
|
| | | | 384.1 | | |
Total lease payments
|
| | | | 1,819.6 | | |
Less: imputed interest
|
| | | | 388.6 | | |
Total operating lease liabilities
|
| | | | 1,431.0 | | |
Less: current operating lease liabilities
|
| | | | 241.6 | | |
Total non-current operating lease liabilities
|
| | | $ | 1,189.4 | | |
Fiscal Year
|
| |
(in millions)
|
| |||
2020
|
| | | $ | 359.0 | | |
2021
|
| | | | 336.4 | | |
2022
|
| | | | 311.6 | | |
2023
|
| | | | 276.0 | | |
2024
|
| | | | 231.5 | | |
Thereafter
|
| | | | 541.1 | | |
Total
|
| | | $ | 2,055.6 | | |
| | |
Fiscal 2019
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
| |||||||||||||||||||||||||||
| | |
(in millions, except percentages)
|
| |||||||||||||||||||||||||||||||||
Brick and Mortar
|
| | | $ | 2,752.3 | | | | | | 92.9% | | | | | $ | 2,942.5 | | | | | | 90.4% | | | | | $ | 4,056.8 | | | | | | 92.3% | | |
Digital
|
| | | | 113.7 | | | | | | 3.8% | | | | | | 263.7 | | | | | | 8.1% | | | | | | 305.5 | | | | | | 7.0% | | |
Other Business(1)
|
| | | | 96.3 | | | | | | 3.3% | | | | | | 50.4 | | | | | | 1.5% | | | | | | 30.6 | | | | | | 0.7% | | |
Total net revenue
|
| | | $ | 2,962.3 | | | | | | 100.0% | | | | | $ | 3,256.6 | | | | | | 100.0% | | | | | $ | 4,392.9 | | | | | | 100.0% | | |
| | |
Fiscal 2019
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
| |||||||||
| | |
(in millions)
|
| |||||||||||||||
Current: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | (1.0) | | | | | $ | (0.2) | | | | | $ | 36.1 | | |
State
|
| | | | 1.7 | | | | | | 2.4 | | | | | | 7.5 | | |
Total current tax
|
| | | | 0.7 | | | | | | 2.2 | | | | | | 43.6 | | |
Deferred: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | | (23.8) | | | | | | 45.0 | | | | | | (20.7) | | |
State
|
| | | | (21.0) | | | | | | (1.5) | | | | | | (5.3) | | |
Total deferred tax
|
| | | | (44.8) | | | | | | 43.5 | | | | | | (26.0) | | |
Total income tax (benefit) expense
|
| | | $ | (44.1) | | | | | $ | 45.7 | | | | | $ | 17.6 | | |
| | |
Fiscal 2019
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
| |||||||||
| | |
(in millions, except for percentages)
|
| |||||||||||||||
Reconciliation of rate of taxation: | | | | | | | | | | | | | | | | | | | |
Income tax expense (benefit) at federal statutory rate
of 21% |
| | | $ | (212.1) | | | | | $ | 36.0 | | | | | $ | (31.0) | | |
State tax expense (benefit), net of federal income tax
effect |
| | | | (37.0) | | | | | | 7.0 | | | | | | (9.5) | | |
State rate change
|
| | | | (6.4) | | | | | | 6.7 | | | | | | (1.4) | | |
Federal valuation allowance
|
| | | | 147.1 | | | | | | 8.1 | | | | | | 39.5 | | |
State valuation allowance
|
| | | | 21.3 | | | | | | (10.8) | | | | | | 12.6 | | |
Non-deductible goodwill
|
| | | | 30.7 | | | | | | — | | | | | | 6.5 | | |
Other adjustments
|
| | | | 12.3 | | | | | | (1.3) | | | | | | 0.9 | | |
Total income tax expense (benefit)
|
| | | $ | (44.1) | | | | | $ | 45.7 | | | | | $ | 17.6 | | |
Effective income tax rate
|
| | | | 4.4% | | | | | | 26.7% | | | | | | (11.9)% | | |
| | | | | | ||||||||
| | |
(in millions)
|
| |||||||||
Deferred tax assets: | | | | ||||||||||
Allowance for doubtful accounts
|
| | | $ | 0.5 | | | | | $ | 0.3 | | |
Inventory
|
| | | | 1.9 | | | | | | 2.4 | | |
Accrued liabilities and reserves
|
| | | | 16.6 | | | | | | 20.4 | | |
Other non-current liabilities
|
| | | | 17.5 | | | | | | 25.6 | | |
Tax credits and contribution carryforward
|
| | | | 1.7 | | | | | | 1.1 | | |
Net operating loss carryforwards
|
| | | | 250.3 | | | | | | 272.6 | | |
Goodwill
|
| | | | 91.3 | | | | | | 76.4 | | |
Amortizable intangible assets
|
| | | | 25.7 | | | | | | 22.7 | | |
Lease liability
|
| | | | 359.2 | | | | | | 360.3 | | |
Disallowed interest expense
|
| | | | 107.4 | | | | | | 127.7 | | |
Valuation allowance
|
| | | | (391.8) | | | | | | (441.3) | | |
Total deferred tax assets
|
| | | | 480.3 | | | | | | 468.2 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Non-amortizing intangible assets
|
| | | | (147.7) | | | | | | (148.0) | | |
Operating lease ROU asset
|
| | | | (330.2) | | | | | | (331.0) | | |
Property and equipment
|
| | | | (11.4) | | | | | | (17.8) | | |
Other current assets
|
| | | | (4.6) | | | | | | (5.6) | | |
Loan discount
|
| | | | (46.6) | | | | | | — | | |
Total deferred tax liabilities
|
| | | | (540.5) | | | | | | (502.4) | | |
Net deferred tax liability
|
| | | $ | (60.2) | | | | | $ | (34.2) | | |
| | |
Fiscal 2020
|
| |
Fiscal 2021
|
| ||||||
| | |
(in millions)
|
| |||||||||
Balance at beginning of fiscal year
|
| | | $ | (390.8) | | | | | $ | (391.8) | | |
Additional allowances
|
| | | | (1.0) | | | | | | (49.5) | | |
Balance at end of fiscal year
|
| | | $ | (391.8) | | | | | $ | (441.3) | | |
| | | | | | ||||||||
| | |
(in millions)
|
| |||||||||
Right of return asset
|
| | | $ | 22.0 | | | | | $ | 28.5 | | |
Software and hardware maintenance
|
| | | | 13.2 | | | | | | 19.8 | | |
Insurance and employee benefits
|
| | | | 8.8 | | | | | | 5.7 | | |
Space rental and booth set-up
|
| | | | 0.6 | | | | | | 1.8 | | |
Other current assets
|
| | | | 3.3 | | | | | | 6.2 | | |
Total
|
| | | $ | 47.9 | | | | | $ | 62.0 | | |
| | | | | | ||||||||
| | |
(in millions)
|
| |||||||||
Sales returns and exchanges
|
| | | $ | 49.6 | | | | | $ | 66.4 | | |
Advertising
|
| | | | 35.2 | | | | | | 85.4 | | |
Bonus
|
| | | | 30.8 | | | | | | 31.9 | | |
Sales and property tax
|
| | | | 26.5 | | | | | | 29.1 | | |
Other accrued operating expense
|
| | | | 24.3 | | | | | | 41.4 | | |
Insurance and insurance premiums
|
| | | | 21.6 | | | | | | 21.5 | | |
Employee wages, payroll taxes & withholdings
|
| | | | 10.3 | | | | | | 30.9 | | |
Real property tax
|
| | | | 9.4 | | | | | | 9.4 | | |
Vacation
|
| | | | 7.5 | | | | | | 6.4 | | |
Product warranty
|
| | | | 5.4 | | | | | | 6.0 | | |
Interest
|
| | | | 5.7 | | | | | | 0.7 | | |
Legal
|
| | | | 4.7 | | | | | | 7.2 | | |
Severance
|
| | | | 1.4 | | | | | | 3.4 | | |
Total
|
| | | $ | 232.4 | | | | | $ | 339.7 | | |
| | | | | | ||||||||
| | |
(in millions)
|
| |||||||||
Product warranty
|
| | | | 14.0 | | | | | | 17.3 | | |
Deferred payroll tax
|
| | | | 12.1 | | | | | | 9.5 | | |
Deferred vendor incentives
|
| | | | 2.7 | | | | | | 2.9 | | |
Long-term incentive and deferred compensation plans
|
| | | | 0.4 | | | | | | 16.3 | | |
Total
|
| | | $ | 29.2 | | | | | $ | 46.0 | | |
| | |
Award
quantity |
| |
Grant date
fair value |
| |
Weighted
Average Remaining Life |
| |
Estimated
Aggregate Value |
| ||||||||||||
| | |
(in thousands, except for shares and years)
|
| |||||||||||||||||||||
Options granted
|
| | | | 33.8 | | | | | $ | 25.9 | | | | | | 10.0 | | | | | $ | 873.2 | | |
Options exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Options forfeited
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance, October 1, 2019
|
| | | | 33.8 | | | | | | | | | | | | 9.8 | | | | | | 873.2 | | |
Vested as of October 1, 2019
|
| | | | 33.8 | | | | | | | | | | | | | | | | | | 873.2 | | |
Options granted
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Options exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Options forfeited
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance, September 29, 2020
|
| | | | 33.8 | | | | | | | | | | | | 8.8 | | | | | | 873.2 | | |
Vested as of September 29, 2020
|
| | | | 33.8 | | | | | | | | | | | | | | | | | | 873.2 | | |
Options granted
|
| | | | 11.3 | | | | | | 20.3 | | | | | | — | | | | | | 229.1 | | |
Options exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Options forfeited
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance, September 28, 2021
|
| | | | 45.1 | | | | | | | | | | | | 8.1 | | | | | $ | 1,102.3 | | |
Vested as of September 28, 2021
|
| | | | 45.1 | | | | | | | | | | | | | | | | | $ | 1,102.3 | | |
| | |
Fiscal 2019
|
| |
Fiscal 2020(1)
|
| |
Fiscal 2021
|
| |||||||||
Expected terms (in years)
|
| | | | 10 | | | | | | 0 | | | | | | 10 | | |
Expected volatility
|
| | | | 44.0% | | | | | | —% | | | | | | 47.0% | | |
Expected dividend yield
|
| | | | —% | | | | | | —% | | | | | | —% | | |
Risk-free interest rate
|
| | | | 1.80% | | | | | | —% | | | | | | 0.81% | | |
Weighted average grant date fair value
|
| | | $ | 25,850 | | | | | $ | 0 | | | | | $ | 20,344 | | |
| | |
Fiscal 2019
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
|
Discount rate
|
| |
10.6 to 10.7%
|
| |
10.8 to 15.5%
|
| |
11.7% to 12.2%
|
|
Tax rate
|
| |
25.5%
|
| |
25.5%
|
| |
25.5%
|
|
Long-term growth rate
|
| |
2.5%
|
| |
2.5%
|
| |
2.5%
|
|
Discount for lack of marketability
|
| |
11.0%
|
| |
11.0%
|
| |
11.0%
|
|
| | |
Award
quantity |
| |
Weighted
Average Exercise Price |
| |
Weighted
Average Remaining Life |
| |
Estimated
Aggregate Value |
| ||||||||||||
| | |
(in thousands, except for shares and years)
|
| |||||||||||||||||||||
Awards granted−employees
|
| | | | 1,209.1 | | | | | $ | 37.0 | | | | | | 3.3 | | | | | $ | 44,736.7 | | |
Awards granted−NEDs
|
| | | | 273.8 | | | | | | 38.1 | | | | | | 3.3 | | | | | | 10,431.8 | | |
Awards exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Awards forfeited
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance, October 1, 2019
|
| | | | 1,482.9 | | | | | | | | | | | | | | | | | | 55,168.5 | | |
Vested as of October 1, 2019
|
| | | | — | | | | | | | | | | | | | | | | | | — | | |
Awards granted−employees
|
| | | | 772.2 | | | | | | 34.2 | | | | | | 3.0 | | | | | | 26,409.2 | | |
Awards granted−NEDs
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Awards exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Awards forfeited
|
| | | | (455.4) | | | | | | 37.0 | | | | | | — | | | | | | (16,849.8) | | |
Balance, September 29, 2020
|
| | | | 1,799.7 | | | | | | | | | | | | 2.6 | | | | | | 64,727.9 | | |
Vested as of September 29, 2020
|
| | | | 297.7 | | | | | | 37.3 | | | | | | | | | | | | 11,104.2 | | |
Awards granted−employees
|
| | | | 141.4 | | | | | | 36.3 | | | | | | 3.0 | | | | | | 5,132.8 | | |
Awards granted−NEDs
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Awards exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Awards forfeited
|
| | | | (77.3) | | | | | | 36.3 | | | | | | — | | | | | | (2,806.0) | | |
Balance, September 28, 2021
|
| | | | 1,863.8 | | | | | | | | | | | | 1.68 | | | | | $ | 67,054.7 | | |
Vested as of September 28, 2021
|
| | | | 537.1 | | | | | $ | 36.3 | | | | | | | | | | | $ | 19,496.7 | | |
| | |
Fiscal 2019
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
| |||||||||
| | |
(in millions, except share and per share amounts)
|
| |||||||||||||||
(Loss) income: | | | | | | | | | | | | | | | | | | | |
(Loss) income available to common stockholders−
basic |
| | | $ | (965.8) | | | | | $ | 125.6 | | | | | $ | (165.1) | | |
(Loss) income available to common stockholders−
diluted |
| | | $ | (965.8) | | | | | $ | 125.6 | | | | | $ | (165.1) | | |
Shares: | | | | | | | | | | | | | | | | | | | |
Weighted average number of common shares outstanding−basic
|
| | | | 18,619 | | | | | | 19,960 | | | | | | 19,960 | | |
Net effect of dilutive stock options based on the treasury stock method
|
| | | | — | | | | | | 13 | | | | | | — | | |
Weighted average number of common shares outstanding−diluted
|
| | | | 18,619 | | | | | | 19,973 | | | | | | 19,960 | | |
Basic (loss) income per common share
|
| | | $ | (51,871) | | | | | $ | 6,293 | | | | | $ | (8,272) | | |
Diluted (loss) income per common share
|
| | | $ | (51,871) | | | | | $ | 6,288 | | | | | $ | (8,272) | | |
| | |
Fiscal 2019
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
| |||||||||
| | |
(in millions)
|
| |||||||||||||||
Interest paid(1)
|
| | | $ | 1.9 | | | | | $ | 57.2 | | | | | $ | 142.3 | | |
Income taxes (refund) paid
|
| | | | 1.2 | | | | | | (28.1) | | | | | | 49.4 | | |
Unpaid liabilities for capital expenditures
|
| | | | (1.6) | | | | | | (0.4) | | | | | | 4.0 | | |
Investment in performance warrants
|
| | | | — | | | | | | — | | | | | | 1.1 | | |
| | |
As Previously
Reported |
| |
Adjustments
|
| |
As Restated
|
| |||||||||
| | |
(in millions)
|
| |||||||||||||||
Deferred paid-in-kind interest paid on 2018 Term Loan and 2018 PIK Loan
|
| | | $ | — | | | | | $ | (90.5) | | | | | $ | (90.5) | | |
Net cash provided by operating activities
|
| | | | 543.1 | | | | | | (90.5) | | | | | | 452.6 | | |
Repayment of debt and debt repayment premiums
|
| | | | (1,278.4) | | | | | | 90.5 | | | | | | (1,187.9) | | |
Net cash used in financing activities
|
| | | | (735.8) | | | | | | 90.5 | | | | | | (645.3) | | |
| | | | | | ||||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Intracompany receivable from subsidiary
|
| | | $ | 568.5 | | | | | $ | 195.2 | | |
Total current assets
|
| | | | 568.5 | | | | | | 195.2 | | |
Deferred tax asset
|
| | | | 10.9 | | | | | | 38.3 | | |
Investment in subsidiary
|
| | | | 697.7 | | | | | | — | | |
Total assets
|
| | | $ | 1,277.1 | | | | | $ | 233.5 | | |
LIABILITIES & STOCKHOLDERS’ EQUITY (DEFICIT) | | | | | | | | | | | | | |
Long term debt, net of discounts and debt issuance costs
|
| | | $ | 22.1 | | | | | $ | — | | |
Investment in subsidiary
|
| | | | — | | | | | | 330.5 | | |
Other non-current liabilities
|
| | | | — | | | | | | 12.4 | | |
Total liabilities
|
| | | | 22.1 | | | | | | 342.9 | | |
Commitments and contingencies
|
| | | | | | | | | | | | |
Total stockholder’s equity (deficit)
|
| | | | 1,255.0 | | | | | | (109.4) | | |
Total liabilities and stockholders’ equity
|
| | | $ | 1,277.1 | | | | | $ | 233.5 | | |
| | |
Fiscal Year Ended
|
| |||||||||||||||
| | | | | | | | ||||||||||||
Operating Expenses: | | | | | | | | | | | | | | | | | | | |
General and administrative expenses
|
| | | $ | 7.4 | | | | | $ | 13.2 | | | | | $ | 7.8 | | |
Special bonus and director fees
|
| | | | — | | | | | | — | | | | | | 151.9 | | |
Total operating expenses
|
| | | | 7.4 | | | | | | 13.2 | | | | | | 159.7 | | |
Loss from operations
|
| | | | (7.4) | | | | | | (13.2) | | | | | | (159.7) | | |
Other expenses (income): | | | | | | | | | | | | | | | | | | | |
Interest expense, net
|
| | | | 32.2 | | | | | | 18.8 | | | | | | 3.7 | | |
Remeasurement of embedded derivatives
|
| | | | 4.6 | | | | | | (68.1) | | | | | | — | | |
Loss from debt extinguishment
|
| | | | — | | | | | | — | | | | | | 201.2 | | |
Total other expenses (income)
|
| | | | 36.8 | | | | | | (49.3) | | | | | | 204.9 | | |
(Loss) income before income taxes and share of subsidiary loss (income)
|
| | | | (44.2) | | | | | | 36.1 | | | | | | (364.6) | | |
Income tax (expense) benefit
|
| | | | (27.8) | | | | | | (9.0) | | | | | | 27.3 | | |
Share of subsidiary (loss) income
|
| | | | (893.8) | | | | | | 98.5 | | | | | | 172.2 | | |
Net (loss) income
|
| | | $ | (965.8) | | | | | $ | 125.6 | | | | | $ | (165.1) | | |
| | |
Fiscal Year Ended
|
| |||||||||||||||
| | | | | | | | ||||||||||||
Net cash (used in) provided by operating activities
|
| | | $ | (206.7) | | | | | $ | — | | | | | $ | 166.6 | | |
Net cash provided by investing activities
|
| | | | — | | | | | | — | | | | | | 1,200.4 | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Proceeds from common stock issued
|
| | | | 152.2 | | | | | | — | | | | | | — | | |
Proceeds from borrowings
|
| | | | 54.6 | | | | | | — | | | | | | — | | |
Payments of debt issuance costs
|
| | | | (0.1) | | | | | | — | | | | | | — | | |
Payment of dividend
|
| | | | — | | | | | | — | | | | | | (1,200.4) | | |
Repayment of debt and debt redemption premiums
|
| | | | — | | | | | | — | | | | | | (166.6) | | |
Net cash provided by (used in) financing activities
|
| | | | 206.7 | | | | | | — | | | | | | (1,367.0) | | |
Net increase in cash and cash equivalents
|
| | | | — | | | | | | — | | | | | | — | | |
Cash and cash equivalents at beginning of the period
|
| | | | — | | | | | | — | | | | | | — | | |
Cash and cash equivalents at end of the period
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | | | ||||||||||
| | |
Principal
|
| |
Unamortized Discount
and Debt Issuance Costs |
| ||||||
| | |
(in millions)
|
| |||||||||
2018 PIK loan
|
| | | $ | 203.6 | | | | | $ | (163.1) | | |
PIK loan embedded derivatives
|
| | | | — | | | | | | (18.3) | | |
Total long-term debt
|
| | | $ | 203.6 | | | | | $ | (181.4) | | |
| | |
Fair Value
Upon Issuance (A) |
| |
Allocation
Percentage (B) |
| |
Allocated
Proceeds (C = $400M * B) |
| |
Fair Value
of Bifurcated Embedded Derivatives (D) |
| |
Value
Assigned to the Debt Hosts (E = C−D) |
| |||||||||||||||
| | |
(in millions, except for percentages)
|
| |||||||||||||||||||||||||||
2018 Term Loan
|
| | | $ | 400.0 | | | | | | 48.3% | | | | | $ | 193.3 | | | | | $ | 56.0 | | | | | $ | 137.3 | | |
2018 PIK Loan
|
| | | | 112.7 | | | | | | 13.6% | | | | | | 54.5 | | | | | | 45.3 | | | | | | 9.2 | | |
Mattress Firm
Shares |
| | | | 315.0 | | | | | | 38.1% | | | | | | 152.2 | | | | | | N/A | | | | | | N/A | | |
Total
|
| | | $ | 827.7 | | | | | | 100.0% | | | | | $ | 400.0 | | | | | | N/A | | | | | | N/A | | |
| | |
Award
quantity |
| |
Grant date
fair value |
| |
Weighted
Average Remaining Life |
| |
Estimated
Aggregate Value |
| ||||||||||||
| | |
(in thousands, except for shares and years)
|
| |||||||||||||||||||||
Options granted
|
| | | | 33.8 | | | | | $ | 25.9 | | | | | | 10.0 | | | | | $ | 873.2 | | |
Options exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Options forfeited
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance, October 1, 2019
|
| | | | 33.8 | | | | | | | | | | | | 9.8 | | | | | | 873.2 | | |
Vested as of October 1, 2019
|
| | | | 33.8 | | | | | | | | | | | | | | | | | | 873.2 | | |
Options granted
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Options exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Options forfeited
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance, September 29, 2020
|
| | | | 33.8 | | | | | | | | | | | | 8.8 | | | | | | 873.2 | | |
Vested as of September 29, 2020
|
| | | | 33.8 | | | | | | | | | | | | | | | | | | 873.2 | | |
Options granted
|
| | | | 11.3 | | | | | | 20.3 | | | | | | — | | | | | | 229.1 | | |
Options exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Options forfeited
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance, September 28, 2021
|
| | | | 45.1 | | | | | | | | | | | | 8.1 | | | | | $ | 1,102.3 | | |
Vested as of September 28, 2021
|
| | | | 45.1 | | | | | | | | | | | | | | | | | $ | 1,102.3 | | |
| | |
Fiscal 2019
|
| |
Fiscal 2020(1)
|
| |
Fiscal 2021
|
| |||||||||
Expected terms (in years)
|
| | | | 10 | | | | | | 0 | | | | | | 10 | | |
Expected volatility
|
| | | | 44.0% | | | | | | —% | | | | | | 47.0% | | |
Expected dividend yield
|
| | | | —% | | | | | | —% | | | | | | —% | | |
Risk-free interest rate
|
| | | | 1.80% | | | | | | —% | | | | | | 0.81% | | |
| | |
Fiscal 2019
|
| |
Fiscal 2020(1)
|
| |
Fiscal 2021
|
| |||||||||
Weighted average grant date fair value
|
| | | $ | 25,850 | | | | | $ | 0 | | | | | $ | 20,344 | | |
| | |
Fiscal 2019
|
| |
Fiscal 2020
|
| |
Fiscal 2021
|
|
Discount rate
|
| |
10.6 to 10.7%
|
| |
10.8 to 15.5%
|
| |
11.7% to 12.2%
|
|
Tax rate
|
| |
25.5%
|
| |
25.5%
|
| |
25.5%
|
|
Long-term growth rate
|
| |
2.5%
|
| |
2.5%
|
| |
2.5%
|
|
Discount for lack of marketability
|
| |
11.0%
|
| |
11.0%
|
| |
11.0%
|
|
| | |
Award quantity
|
| |
Weighted
Average Exercise Price |
| |
Weighted
Average Remaining Life |
| |
Estimated
Aggregate Value |
| ||||||||||||
| | |
(in thousands, except for shares and years)
|
| |||||||||||||||||||||
Awards granted−employees
|
| | | | 1,209.1 | | | | | $ | 37.0 | | | | | | 3.3 | | | | | $ | 44,736.7 | | |
Awards granted−NEDs
|
| | | | 273.8 | | | | | | 38.1 | | | | | | 3.3 | | | | | | 10,431.8 | | |
Awards exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Awards forfeited
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance, October 1, 2019
|
| | | | 1,482.9 | | | | | | | | | | | | | | | | | | 55,168.5 | | |
Vested as of October 1, 2019
|
| | | | — | | | | | | | | | | | | | | | | | | — | | |
Awards granted−employees
|
| | | | 772.2 | | | | | | 34.2 | | | | | | 3.0 | | | | | | 26,409.2 | | |
Awards granted−NEDs
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Awards exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Awards forfeited
|
| | | | (455.4) | | | | | | 37.0 | | | | | | — | | | | | | (16,849.8) | | |
Balance, September 29, 2020
|
| | | | 1,799.7 | | | | | | | | | | | | 2.6 | | | | | | 64,727.9 | | |
Vested as of September 29, 2020
|
| | | | 297.7 | | | | | | 37.3 | | | | | | | | | | | | 11,104.2 | | |
Awards granted−employees
|
| | | | 141.4 | | | | | | 36.3 | | | | | | 3.0 | | | | | | 5,132.8 | | |
Awards granted−NEDs
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Awards exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Awards forfeited
|
| | | | (77.3) | | | | | | 36.3 | | | | | | — | | | | | | (2,806.0) | | |
Balance, September 28, 2021
|
| | | | 1,863.8 | | | | | | | | | | | | 1.68 | | | | | $ | 67,054.7 | | |
Vested as of September 28, 2021
|
| | | | 537.1 | | | | | $ | 36.3 | | | | | | | | | | | $ | 19,496.7 | | |
| | |
As Previously
Reported |
| |
Adjustments
|
| |
As Restated
|
| |||||||||
| | |
(in millions)
|
| |||||||||||||||
Net cash provided by operating activities
|
| | | $ | 208.5 | | | | | $ | (41.9) | | | | | $ | 166.6 | | |
Repayment of debt and debt repayment premiums
|
| | | | (208.5) | | | | | | 41.9 | | | | | | (166.6) | | |
Net cash used in financing activities
|
| | | | (1,408.9) | | | | | | 41.9 | | | | | | (1,367.0) | | |
|
SEC Registration Fee
|
| | | $ | * | | |
|
FINRA Filing Fee
|
| | | | * | | |
|
Stock Exchange Listing Fee
|
| | | | * | | |
|
Printing Fees and Expenses
|
| | | | * | | |
|
Accounting Fees and Expenses
|
| | | | * | | |
|
Legal Fees and Expenses
|
| | | | * | | |
|
Blue Sky Fees and Expenses
|
| | | | * | | |
|
Transfer Agent Fees and Expenses
|
| | | | * | | |
|
Directors and Officers Insurance
|
| | | | * | | |
|
Miscellaneous
|
| | | | * | | |
|
Total:
|
| | | $ | * | | |
|
Exhibit
Number |
| |
Exhibit Description
|
|
|
1.1**
|
| | Form of Underwriting Agreement | |
|
3.1†
|
| | | |
|
3.2†
|
| | | |
|
3.3**
|
| | Form of Amended and Restated Certificate of Incorporation | |
|
3.4**
|
| | Form of Amended and Restated Bylaws | |
|
4.1**
|
| | Form of Common Stock Certificate | |
|
4.2**
|
| | Form of Registration Rights Agreement | |
|
5.1**
|
| | Opinion of Simpson Thacher & Bartlett LLP | |
|
10.1*
|
| | | |
|
10.2*
|
| | | |
|
10.3*
|
| | | |
|
10.4*
|
| | | |
|
10.5*
|
| | | |
|
10.6*
|
| | | |
|
10.7*
|
| | | |
|
10.8*
|
| | | |
|
10.9*
|
| | | |
|
10.10*
|
| | | |
|
10.11*
|
| | | |
|
10.12*
|
| | |
|
Exhibit
Number |
| |
Exhibit Description
|
|
|
10.13*
|
| | | |
|
10.14†‡
|
| | | |
|
10.15†‡
|
| | | |
|
10.16†‡
|
| | | |
|
10.17†‡
|
| | | |
|
10.18†
|
| | | |
|
10.19†
|
| | | |
|
10.20*
|
| | | |
|
10.21*
|
| | | |
|
10.22*
|
| | | |
|
21.1†
|
| | | |
|
23.1*
|
| | | |
|
23.2**
|
| | Consent of Simpson Thacher & Bartlett LLP (included in Exhibit 5.1 hereto) | |
|
24.1†
|
| | | |
|
99.1†
|
| | | |
|
99.2†
|
| | | |
|
99.3†
|
| | | |
|
107*
|
| | |
|
Signature
|
| |
Title
|
|
|
/s/ John W. Eck
|
| |
President, Chief Executive Officer and Director (principal executive officer) |
|
|
/s/ Maarten O. Jager
|
| |
Chief Financial Officer (principal financial officer) |
|
|
/s/ Douglas Manko
|
| |
Senior Vice President & Controller (principal accounting officer) |
|
|
*
Paul W. Soldatos
|
| |
Director and Chair of the Board of Directors |
|
|
*
Kevin C. Conroy
|
| |
Director |
|
|
*
Christopher T. Cook
|
| |
Director |
|
|
*
Robert F. Hull, Jr.
|
| |
Director |
|
|
*
Peter R. Sachse
|
| |
Director |
|
This ‘S-1/A’ Filing | Date | Other Filings | ||
---|---|---|---|---|
9/24/28 | ||||
11/25/27 | ||||
9/25/26 | ||||
11/25/25 | ||||
11/21/25 | ||||
9/30/25 | ||||
11/21/23 | ||||
10/3/23 | ||||
6/30/23 | ||||
1/1/23 | ||||
12/31/22 | ||||
11/21/22 | ||||
9/29/22 | ||||
9/28/22 | ||||
9/27/22 | ||||
9/24/22 | ||||
2/15/22 | ||||
2/11/22 | ||||
Filed on: | 2/8/22 | |||
12/31/21 | ||||
12/28/21 | ||||
12/21/21 | DRS/A | |||
11/24/21 | DRS/A | |||
11/21/21 | ||||
9/28/21 | ||||
9/24/21 | ||||
9/7/21 | ||||
9/1/21 | ||||
8/13/21 | ||||
6/30/21 | ||||
3/5/21 | ||||
2/22/21 | ||||
2/5/21 | ||||
2/1/21 | ||||
12/29/20 | ||||
11/25/20 | ||||
10/26/20 | ||||
10/20/20 | ||||
10/1/20 | ||||
9/30/20 | ||||
9/29/20 | ||||
7/28/20 | ||||
6/30/20 | ||||
3/27/20 | ||||
3/12/20 | ||||
2/10/20 | ||||
1/21/20 | ||||
1/1/20 | ||||
12/16/19 | ||||
12/1/19 | ||||
11/15/19 | ||||
10/2/19 | ||||
10/1/19 | ||||
9/18/19 | ||||
7/26/19 | ||||
7/8/19 | ||||
6/17/19 | ||||
1/1/19 | ||||
11/21/18 | ||||
10/3/18 | ||||
10/1/18 | ||||
12/31/17 | ||||
11/8/17 | ||||
7/27/17 | ||||
7/1/17 | ||||
1/1/17 | ||||
8/3/16 | ||||
2/3/16 | ||||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 1/07/22 Mattress Firm Group Inc. S-1 14:17M Toppan Merrill/FA |