NASHVILLE, Tenn., Sept. 3, 2020 /PRNewswire/ -- Kirkland's,
Inc. (NASDAQ: KIRK) today reported financial results for the 13 and
26-week periods ended August 1,
2020.
"Positive trends and our dramatically improved business model
enabled us to reach second quarter profitability on an adjusted
basis for the first time in a decade. The hard work we have put in
over the last several quarters continues to pay off with our
elevated merchandise assortment and increased brand awareness
driving the positive sales and margin trends through the quarter.
With the accelerated infrastructure improvements, continued margin
expansion and a commitment to maintaining a much leaner cost
structure, we are experiencing tremendous leverage in the business.
Reaching profitability on an adjusted basis during this period and
driving the margin improvement and comparable sales to the extent
we have is a significant and well-earned accomplishment," noted
Woody Woodward, Chief Executive
Officer.
"Our business is experiencing tailwinds from the favorable
dynamics within the home segment and fewer store-based competitors
than a year ago, but we are also seeing momentum created by our own
merchandising, brand, omni-channel, infrastructure and cost
reduction initiatives. We are far from finished on our
journey to build Kirkland's into a stronger brand with a clear
design point of view at an attainable price point, and we are
focused on continuing to make the right decisions for the long-term
benefit of Kirkland's and our shareholders."
Strategic Priorities and Financial Goals
Kirkland's key strategic initiatives include:
- Accelerating product development to reinforce quality and
relevancy and building upon the tabletop and select furniture
assortments we added in 2019;
- Improving omni-channel via website enhancements, more focused
marketing spend, an expanded online assortment, and an in-store
experience that is aligned with our omni-channel capabilities;
- Improving the customer experience with a re-launch of our
loyalty program, extended credit options and broadened delivery
options; and
- Utilizing our leaner infrastructure to be more nimble in our
response to changes in consumer preference and buying
behaviors.
Kirkland's financial goals for the next two to three years
include:
- Improving comparable sales performance, driven by e-commerce
growth, merchandising, brick-and-mortar store productivity and
closure of underperforming stores. The COVID-19 pandemic has
changed the way the customer shops, and within the quarter,
e-commerce sales, as a percent of our total sales, almost doubled
from a year ago. We expect e-commerce to continue to grow as a
percent of our total business, but also intend to focus on
improving the contribution of our remaining store base as they are
an integral part of our omni-channel strategy.
- Stabilizing gross margin by continuing with our current
discipline of limited promotional offers, expanding direct
sourcing, improving supply chain efficiency and reducing occupancy
costs. With two new e-commerce distribution hubs operating by
the third quarter to replace our existing e-commerce distribution
center and direct sourcing expected to increase from approximately
20% of purchases in 2020 to 40% to 50% over the next two to three
years, we have a goal to improve our gross profit margin to a low
to mid-30% range.
- Improving profitability by leveraging the leaner
infrastructure with comparable sales growth. We believe our
ideal store count should be in the range of 300 to 350 stores. With
nearly one-third of our store leases up for renewal within the next
12 months, we believe there will be additional opportunities for
more favorable rent terms. With approximately $45 million in annualized operating expenses
eliminated from the business, we have a goal of reaching EBITDA as
a percent of annual total sales in the high-single-digit range and
a goal of reaching operating income as a percent of annual total
sales in the mid-single-digit range within two to three years.
- Maintaining adequate liquidity and generating free cash flow
while continuing to invest in key strategic initiatives of the
business. Our goal is to continue to build cash throughout
fiscal 2020 and end the year with no debt. Within our two to
three-year timeframe, we also expect to generate increasing free
cash flow.
The key strategic initiatives and financial goals are based on
current information as of September 3,
2020, and are dependent on, among other things, consumer
preferences, economic conditions and our own successful execution
of these initiatives. The information on which these initiatives
and financial goals is based is subject to change, and investors
are cautioned that the Company may update the initiatives and
goals, or any portion thereof, at any time for any reason.
Investor Conference Call and Web Simulcast
Kirkland's will hold its earnings call for the second quarter
later today at 9:00 a.m. ET. Participating on the call will be
Steve Woodward, Chief Executive
Officer and Nicole Strain, Chief
Financial Officer. The number to call for the interactive
teleconference is (412) 542-4163. A replay of the conference
call will be available through Thursday, September 10, 2020 by
dialing (412) 317-0088 and entering the confirmation number
10147185.
A live webcast of Kirkland's quarterly conference call will be
available online on the Company's Investor Relations Page on
September 3, 2020, beginning at
9:00 a.m. ET. The online replay will follow shortly after the
call and continue for one year.
About Kirkland's, Inc.
Kirkland's, Inc. is a specialty retailer of home décor in
the United States, currently
operating 384 stores in 35 states as well as an e-commerce enabled
website, www.kirklands.com. The Company's stores present a curated
selection of distinctive merchandise, including holiday décor,
furniture, wall décor, art, textiles, mirrors, fragrances, lamps
and other home decorating items. The Company's stores offer an
extensive assortment of holiday merchandise during seasonal
periods. The Company provides its customers an engaging shopping
experience characterized by casual, comfortable merchandise with a
southern feel and a modern flair at a discernible value. This
combination of quality and stylish merchandise, value pricing and a
stimulating online and store experience has led the Company to
develop a loyal customer base. More information can be found at
www.kirklands.com.
Forward-Looking Statements
Except for historical information contained herein, the
statements in this release, including all statements related to
future initiatives, financial goals and expectations regarding any
future period, are forward-looking and made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995 and are subject to the finalization of the Company's
quarterly financial and accounting procedures. Forward-looking
statements involve known and unknown risks and uncertainties, which
may cause Kirkland's actual results to differ materially from
forecasted results. Those risks and uncertainties include, among
other things, risks associated with the Company's progress and
anticipated progress towards its long-term objective and the
success of its plans in response to the novel coronavirus
("COVID-19"), the spread of COVID-19 and its impact on the
Company's revenues and supply chain, risks associated with COVID-19
and the governments responses to it, the impact of store closures
in 2020, the effectiveness of the Company's marketing campaigns,
risks related to changes in U.S. policy related to imported
merchandise, particularly with regard to the impact of tariffs on
goods imported from China and
strategies undertaken to mitigate such impact, the Company's
ability to retain its senior management team, continued volatility
in the price of the Company's common stock, the competitive
environment in the home décor industry in general and in Kirkland's
specific market areas, inflation, fluctuations in cost and
availability of products, interruptions in supply chain and
distribution systems, including our e-commerce systems and
channels, the ability to control employment and other operating
costs, availability of suitable retail locations and other growth
opportunities, disruptions in information technology systems
including the potential for security breaches of Kirkland's or its
customers' information, seasonal fluctuations in consumer spending,
and economic conditions in general. Those and other risks are more
fully described in Kirkland's filings with the Securities and
Exchange Commission, including the Company's Annual Report
on Form 10-K filed on April 10,
2020 and subsequent reports. Forward-looking statements
included in this release are made as of the date of this release.
Any changes in assumptions or factors on which such statements are
based could produce materially different results. Kirkland's
disclaims any obligation to update any such factors or to publicly
announce results of any revisions to any of the forward-looking
statements contained herein to reflect future events or
developments.
KIRKLAND'S,
INC.
|
UNAUDITED
CONSOLIDATED CONDENSED STATEMENTS
OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
13-Week Period
Ended
|
|
|
|
August
1,
|
|
|
August
3,
|
|
|
|
2020
|
|
|
2019
|
|
Net sales
|
|
$
|
124,722
|
|
|
$
|
119,885
|
|
Cost of
sales
|
|
|
89,002
|
|
|
|
93,312
|
|
Gross
profit
|
|
|
35,720
|
|
|
|
26,573
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
20,236
|
|
|
|
27,162
|
|
Other operating
expenses
|
|
|
13,594
|
|
|
|
16,656
|
|
Depreciation
(exclusive of depreciation included in cost of sales)
|
|
|
1,569
|
|
|
|
1,736
|
|
Asset
impairment
|
|
|
5,666
|
|
|
|
1,981
|
|
Total operating
expenses
|
|
|
41,065
|
|
|
|
47,535
|
|
Operating
loss
|
|
|
(5,345)
|
|
|
|
(20,962)
|
|
Other expense
(income), net
|
|
|
103
|
|
|
|
(158)
|
|
Loss before income
taxes
|
|
|
(5,448)
|
|
|
|
(20,804)
|
|
Income tax expense
(benefit)
|
|
|
3,915
|
|
|
|
(3,684)
|
|
Net loss
|
|
$
|
(9,363)
|
|
|
$
|
(17,120)
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.66)
|
|
|
$
|
(1.21)
|
|
Diluted
|
|
$
|
(0.66)
|
|
|
$
|
(1.21)
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
14,123
|
|
|
|
14,110
|
|
Diluted
|
|
|
14,123
|
|
|
|
14,110
|
|
KIRKLAND'S,
INC.
|
UNAUDITED
CONSOLIDATED CONDENSED STATEMENTS
OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
26-Week Period
Ended
|
|
|
|
August
1,
|
|
|
August
3,
|
|
|
|
2020
|
|
|
2019
|
|
Net sales
|
|
$
|
201,969
|
|
|
$
|
249,533
|
|
Cost of
sales
|
|
|
156,013
|
|
|
|
186,741
|
|
Gross
profit
|
|
|
45,956
|
|
|
|
62,792
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
|
38,814
|
|
|
|
54,218
|
|
Other operating
expenses
|
|
|
28,161
|
|
|
|
34,790
|
|
Depreciation
(exclusive of depreciation included in cost of sales)
|
|
|
3,070
|
|
|
|
3,575
|
|
Asset
impairment
|
|
|
8,850
|
|
|
|
3,859
|
|
Total operating
expenses
|
|
|
78,895
|
|
|
|
96,442
|
|
Operating
loss
|
|
|
(32,939)
|
|
|
|
(33,650)
|
|
Other expense
(income), net
|
|
|
203
|
|
|
|
(416)
|
|
Loss before income
taxes
|
|
|
(33,142)
|
|
|
|
(33,234)
|
|
Income tax
benefit
|
|
|
(16,341)
|
|
|
|
(7,193)
|
|
Net loss
|
|
$
|
(16,801)
|
|
|
$
|
(26,041)
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(1.20)
|
|
|
$
|
(1.83)
|
|
Diluted
|
|
$
|
(1.20)
|
|
|
$
|
(1.83)
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
14,057
|
|
|
|
14,241
|
|
Diluted
|
|
|
14,057
|
|
|
|
14,241
|
|
KIRKLAND'S,
INC.
|
UNAUDITED
CONSOLIDATED CONDENSED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
August
1,
|
|
|
February
1,
|
|
|
August
3,
|
|
|
|
2020
|
|
|
2020
|
|
|
2019
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
27,565
|
|
|
$
|
30,132
|
|
|
$
|
14,650
|
|
Inventories,
net
|
|
|
77,078
|
|
|
|
94,674
|
|
|
|
108,233
|
|
Income taxes
receivable
|
|
|
6,162
|
|
|
|
243
|
|
|
|
465
|
|
Prepaid expenses and
other current assets
|
|
|
8,467
|
|
|
|
6,462
|
|
|
|
8,197
|
|
Total current
assets
|
|
|
119,272
|
|
|
|
131,511
|
|
|
|
131,545
|
|
Property and
equipment, net
|
|
|
72,676
|
|
|
|
82,863
|
|
|
|
102,566
|
|
Operating lease
right-of-use assets
|
|
|
165,393
|
|
|
|
200,067
|
|
|
|
219,648
|
|
Deferred income
taxes
|
|
|
—
|
|
|
|
1,525
|
|
|
|
9,010
|
|
Other
assets
|
|
|
5,925
|
|
|
|
6,476
|
|
|
|
6,229
|
|
Total
assets
|
|
$
|
363,266
|
|
|
$
|
422,442
|
|
|
$
|
468,998
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
36,890
|
|
|
$
|
59,513
|
|
|
$
|
60,537
|
|
Accrued
expenses
|
|
|
29,056
|
|
|
|
28,773
|
|
|
|
24,646
|
|
Operating lease
liabilities
|
|
|
49,034
|
|
|
|
53,154
|
|
|
|
53,561
|
|
Total current
liabilities
|
|
|
114,980
|
|
|
|
141,440
|
|
|
|
138,744
|
|
Operating lease
liabilities
|
|
|
180,180
|
|
|
|
195,736
|
|
|
|
218,700
|
|
Other
liabilities
|
|
|
7,294
|
|
|
|
8,311
|
|
|
|
9,148
|
|
Total
liabilities
|
|
|
302,454
|
|
|
|
345,487
|
|
|
|
366,592
|
|
Net
shareholders' equity
|
|
|
60,812
|
|
|
|
76,955
|
|
|
|
102,406
|
|
Total liabilities and
shareholders' equity
|
|
$
|
363,266
|
|
|
$
|
422,442
|
|
|
$
|
468,998
|
|
KIRKLAND'S,
INC.
|
UNAUDITED
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
26 Weeks
Ended
|
|
|
|
August
1,
|
|
|
August
3,
|
|
|
|
2020
|
|
|
2019
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(16,801)
|
|
|
$
|
(26,041)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation of
property and equipment
|
|
|
11,986
|
|
|
|
14,295
|
|
Amortization of debt
issue costs
|
|
|
48
|
|
|
|
27
|
|
Asset
impairment
|
|
|
8,850
|
|
|
|
3,859
|
|
Cumulative effect of
change in accounting principle
|
|
|
—
|
|
|
|
(331)
|
|
(Gain) loss on
disposal of property and equipment
|
|
|
(28)
|
|
|
|
139
|
|
Stock-based
compensation expense
|
|
|
636
|
|
|
|
1,291
|
|
Deferred income
taxes
|
|
|
1,525
|
|
|
|
(7,307)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Inventories,
net
|
|
|
17,596
|
|
|
|
(23,799)
|
|
Prepaid expenses and
other current assets
|
|
|
(2,005)
|
|
|
|
2,116
|
|
Accounts
payable
|
|
|
(21,608)
|
|
|
|
19,438
|
|
Accounts payable to
related party vendor
|
|
|
—
|
|
|
|
(8,166)
|
|
Accrued
expenses
|
|
|
315
|
|
|
|
(2,428)
|
|
Income taxes
receivable
|
|
|
(5,951)
|
|
|
|
(959)
|
|
Operating lease assets
and liabilities
|
|
|
8,683
|
|
|
|
(4,295)
|
|
Other assets and
liabilities
|
|
|
(414)
|
|
|
|
635
|
|
Net cash provided by
(used in) operating activities
|
|
|
2,832
|
|
|
|
(31,526)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Proceeds from sale of
property and equipment
|
|
|
154
|
|
|
|
—
|
|
Capital
expenditures
|
|
|
(5,560)
|
|
|
|
(8,457)
|
|
Net cash used in
investing activities
|
|
|
(5,406)
|
|
|
|
(8,457)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Borrowings on
revolving line of credit
|
|
|
40,000
|
|
|
|
—
|
|
Repayments on
revolving line of credit
|
|
|
(40,000)
|
|
|
|
—
|
|
Refinancing
costs
|
|
|
(15)
|
|
|
|
—
|
|
Cash used in net
share settlement of restricted stock
|
|
|
(13)
|
|
|
|
(44)
|
|
Employee stock
purchases
|
|
|
35
|
|
|
|
145
|
|
Repurchase and
retirement of common stock
|
|
|
—
|
|
|
|
(3,414)
|
|
Net cash provided by
(used in) financing activities
|
|
|
7
|
|
|
|
(3,313)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
|
|
Net
decrease
|
|
|
(2,567)
|
|
|
|
(43,296)
|
|
Beginning of the
period
|
|
|
30,132
|
|
|
|
57,946
|
|
End of the
period
|
|
$
|
27,565
|
|
|
$
|
14,650
|
|
|
|
|
|
|
|
|
|
|
Supplemental
schedule of non-cash activities:
|
|
|
|
|
|
|
|
|
Non-cash accruals for
purchases of property and equipment
|
|
$
|
838
|
|
|
$
|
2,367
|
|
Operating lease assets
and liabilities recognized upon adoption of ASC 842
|
|
|
—
|
|
|
|
295,240
|
|
Non-GAAP Financial Measures
To supplement our unaudited consolidated condensed financial
statements presented in accordance with generally accepted
accounting principles ("GAAP"), this earnings release and the
related earnings conference call contain certain non-GAAP financial
measures, including EBITDA, adjusted EBITDA, adjusted income (loss)
and adjusted diluted income (loss) per share. These measures are
not in accordance with, and are not intended as alternatives to,
GAAP. The Company uses these non-GAAP financial measures internally
in analyzing our financial results and believes that they provide
useful information to analysts and investors, as a supplement to
GAAP measures, in evaluating our operational performance.
The Company defines EBITDA as net income or loss before
interest, provision for income tax, and depreciation and
amortization and adjusted EBITDA as EBITDA with non-GAAP
adjustments. The Company defines adjusted net income (loss) and
adjusted diluted income (loss) per share by adjusting the
applicable GAAP measure for non-GAAP adjustments.
Non-GAAP measures are intended to provide additional information
only and do not have any standard meanings prescribed by GAAP. Use
of these terms may differ from similar measures reported by other
companies. Each non-GAAP measure has its limitations as an
analytical tool, and you should not consider them in isolation or
as a substitute for analysis of the Company's results as reported
under GAAP.
The following table shows a reconciliation of operating loss to
EBITDA and adjusted EBITDA for the 13 weeks and 26 weeks ended
August 1, 2020 and August 3, 2019 and a reconciliation of net loss
and diluted loss per share to adjusted net income (loss) and
adjusted diluted income (loss) per share for the 13 weeks and 26
weeks ended August 1, 2020 and
August 3, 2019:
KIRKLAND'S,
INC.
|
UNAUDITED NON-GAAP
MEASURE RECONCILIATION
|
(In thousands,
except per share data)
|
|
|
|
13-Week Period
Ended
|
|
|
26-Week Period
Ended
|
|
|
|
August 1,
2020
|
|
|
August 3,
2019
|
|
|
August 1,
2020
|
|
|
August 3,
2019
|
|
Operating
loss
|
|
$
|
(5,345)
|
|
|
$
|
(20,962)
|
|
|
$
|
(32,939)
|
|
|
$
|
(33,650)
|
|
Depreciation and
amortization
|
|
|
5,933
|
|
|
|
7,051
|
|
|
|
11,986
|
|
|
|
14,295
|
|
EBITDA
|
|
|
588
|
|
|
|
(13,911)
|
|
|
|
(20,953)
|
|
|
|
(19,355)
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed store and lease
termination costs in cost of sales(1)
|
|
|
95
|
|
|
|
—
|
|
|
|
58
|
|
|
|
—
|
|
Asset
impairment(2)
|
|
|
5,666
|
|
|
|
1,981
|
|
|
|
8,850
|
|
|
|
3,859
|
|
Stock-based
compensation expense(3)
|
|
|
329
|
|
|
|
731
|
|
|
|
636
|
|
|
|
1,291
|
|
Severance
charges(4)
|
|
|
85
|
|
|
|
410
|
|
|
|
880
|
|
|
|
787
|
|
Other costs included
in operating expenses(5)
|
|
|
—
|
|
|
|
119
|
|
|
|
134
|
|
|
|
119
|
|
Total adjustments in
operating expenses
|
|
|
6,080
|
|
|
|
3,241
|
|
|
|
10,500
|
|
|
|
6,056
|
|
Total non-GAAP
adjustments
|
|
|
6,175
|
|
|
|
3,241
|
|
|
|
10,558
|
|
|
|
6,056
|
|
Adjusted
EBITDA
|
|
$
|
6,763
|
|
|
$
|
(10,670)
|
|
|
$
|
(10,395)
|
|
|
$
|
(13,299)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(9,363)
|
|
|
$
|
(17,120)
|
|
|
$
|
(16,801)
|
|
|
$
|
(26,041)
|
|
Non-GAAP adjustments,
net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed store and lease
termination costs in cost of sales(1)
|
|
|
73
|
|
|
|
—
|
|
|
|
45
|
|
|
|
—
|
|
Asset
impairment(2)
|
|
|
4,378
|
|
|
|
1,628
|
|
|
|
6,805
|
|
|
|
2,978
|
|
Stock-based
compensation expense, including tax impact(3)
|
|
|
391
|
|
|
|
1,040
|
|
|
|
886
|
|
|
|
1,443
|
|
Severance
charges(4)
|
|
|
71
|
|
|
|
336
|
|
|
|
677
|
|
|
|
607
|
|
Other costs included
in operating expenses(5)
|
|
|
—
|
|
|
|
91
|
|
|
|
103
|
|
|
|
91
|
|
Total adjustments in
operating expenses
|
|
|
4,840
|
|
|
|
3,095
|
|
|
|
8,471
|
|
|
|
5,119
|
|
Tax valuation
allowance(6)
|
|
|
3,274
|
|
|
|
—
|
|
|
|
5,470
|
|
|
|
—
|
|
CARES Act - net
operating loss carry back(7)
|
|
|
1,490
|
|
|
|
—
|
|
|
|
(14,596)
|
|
|
|
—
|
|
Total non-GAAP
adjustments, net of tax
|
|
|
9,677
|
|
|
|
3,095
|
|
|
|
(610)
|
|
|
|
5,119
|
|
Adjusted net income
(loss)
|
|
$
|
314
|
|
|
$
|
(14,025)
|
|
|
$
|
(17,411)
|
|
|
$
|
(20,922)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per
share
|
|
$
|
(0.66)
|
|
|
$
|
(1.21)
|
|
|
$
|
(1.20)
|
|
|
$
|
(1.83)
|
|
Adjusted diluted
income (loss) per share
|
|
$
|
0.02
|
|
|
$
|
(0.99)
|
|
|
$
|
(1.24)
|
|
|
$
|
(1.47)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
|
14,123
|
|
|
|
14,110
|
|
|
|
14,057
|
|
|
|
14,241
|
|
Adjusted diluted
weighted average shares outstanding
|
|
|
14,741
|
|
|
|
14,110
|
|
|
|
14,057
|
|
|
|
14,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Costs associated with
closed stores and lease termination costs, including amounts paid
to third-parties for rent reduction negotiations, lease termination
fees paid to landlords for store closings and gain on lease
terminations.
|
(2)
|
Impairment charges
include both right-of-use asset and property and equipment
impairment charges.
|
(3)
|
Stock-based
compensation expense includes amounts expensed related to equity
incentive plans.
|
(4)
|
Severance charges
include expenses related to severance agreements. This also
includes permanent store closure compensation costs.
|
(5)
|
Other costs include
corporate lease negotiation fees associated with rent reduction in
fiscal 2020 and write-offs of excess and obsolete supplies in
fiscal 2019.
|
(6)
|
The tax valuation
allowance is the change in the Company's valuation allowance
against deferred tax assets. The Company did not have a valuation
allowance against deferred tax assets in the prior year
periods.
|
(7)
|
The Company recorded
an income tax expense (benefit) related to the carry back of fiscal
2019 and estimated fiscal 2020 federal net operating losses to
prior periods included in the CARES Act in fiscal 2020.
|
Contact:
|
Kirkland's
|
Kirkland's
|
|
Nicole
Strain
|
Investor
Relations
|
|
(615)
872-4800
|
IR@Kirklands.com
|
|
|
(615)
872-4898
|
View original content to download
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SOURCE Kirkland's, Inc.