UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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As of January 24, 2023, the registrant had
Boot Barn Holdings, Inc. and Subsidiaries
Form 10-Q
For the Thirteen and Thirty-Nine Weeks Ended December 24, 2022
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Part 1. Financial Information
Item 1. | Condensed Consolidated Financial Statements (Unaudited) |
BOOT BARN HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
December 24, |
| March 26, | ||||
| 2022 |
| 2022 | |||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | | $ | | ||
Accounts receivable, net |
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Inventories |
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Prepaid expenses and other current assets |
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Total current assets |
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Property and equipment, net |
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Right-of-use assets, net | | | ||||
Goodwill |
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Intangible assets, net |
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Other assets |
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Total assets | $ | | $ | | ||
Liabilities and stockholders’ equity | ||||||
Current liabilities: | ||||||
Line of credit | $ | | $ | | ||
Accounts payable | | | ||||
Accrued expenses and other current liabilities |
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Short-term lease liabilities | | | ||||
Total current liabilities |
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Deferred taxes |
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Long-term lease liabilities | | | ||||
Other liabilities |
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Total liabilities | | | ||||
Commitments and contingencies (Note 6) | ||||||
Stockholders’ equity: | ||||||
Common stock, $ |
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Preferred stock, $ |
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Additional paid-in capital |
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Retained earnings |
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Less: Common stock held in treasury, at cost, | ( | ( | ||||
Total stockholders’ equity |
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Total liabilities and stockholders’ equity | $ | | $ | |
The accompanying notes are an integral part of these condensed consolidated financial statements.
3
BOOT BARN HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||
December 24, | December 25, | December 24, | December 25, | |||||||||
| 2022 |
| 2021 |
| 2022 |
| 2021 | |||||
$ | | $ | | $ | | $ | | |||||
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Gross profit |
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Selling, general and administrative expenses |
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Income from operations |
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Interest expense |
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Other income/(loss), net | | | ( | | ||||||||
Income before income taxes |
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Income tax expense |
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Net income | $ | | $ | | $ | | $ | | ||||
Earnings per share: | ||||||||||||
Basic | $ | | $ | | $ | | $ | | ||||
Diluted | $ | | $ | | $ | | $ | | ||||
Weighted average shares outstanding: | ||||||||||||
Basic |
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Diluted |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
4
BOOT BARN HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands)
(Unaudited)
Additional |
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Common Stock | Paid-In | Retained | Treasury Shares |
| |||||||||||||||
| Shares |
| Amount |
| Capital |
| Earnings |
| Shares |
| Amount |
| Total | ||||||
Balance at March 26, 2022 | | $ | | $ | | $ | | ( | $ | ( | $ | | |||||||
Net income | — | — | — | | — | — | | ||||||||||||
Issuance of common stock related to stock-based compensation | | — | | — | — | — | | ||||||||||||
Tax withholding for net share settlement | — | — | — | — | ( | ( | ( | ||||||||||||
Stock-based compensation expense | — | — | | — | — | — | | ||||||||||||
Balance at June 25, 2022 | | $ | | $ | | $ | | ( | $ | ( | $ | | |||||||
Net income | — | — | — | | — | — | | ||||||||||||
Issuance of common stock related to stock-based compensation | | — | — | — | — | — | — | ||||||||||||
Tax withholding for net share settlement | — | — | — | — | ( | ( | ( | ||||||||||||
Stock-based compensation expense | — | — | | — | — | — | | ||||||||||||
Balance at September 24, 2022 | | $ | | $ | | $ | | ( | $ | ( | $ | | |||||||
Net income |
| — | — | — | | — | — | | |||||||||||
Issuance of common stock related to stock-based compensation |
| | — | | — | — | — | | |||||||||||
Stock-based compensation expense |
| — | — | | — | — | — | | |||||||||||
Balance at December 24, 2022 | | $ | | $ | | $ | | ( | $ | ( | $ | | |||||||
Additional |
| ||||||||||||||||||
Common Stock | Paid-In | Retained | Treasury Shares |
| |||||||||||||||
| Shares |
| Amount |
| Capital |
| Earnings | Shares |
| Amount | Total | ||||||||
Balance at March 27, 2021 | | $ | | $ | | $ | | ( | $ | ( | $ | | |||||||
Net income |
| — | — | — | | — | — | | |||||||||||
Issuance of common stock related to stock-based compensation | | — | | — | — | — | | ||||||||||||
Tax withholding for net share settlement | — | — | — | — | ( | ( | ( | ||||||||||||
Stock-based compensation expense |
| — | — | | — | — | — | | |||||||||||
Balance at June 26, 2021 |
| | $ | | $ | | $ | | ( | $ | ( | $ | | ||||||
Net income | — | — | — | | — | — | | ||||||||||||
Issuance of common stock related to stock-based compensation | | — | | — | — | — | | ||||||||||||
Tax withholding for net share settlement | — | — | — | — | ( | ( | ( | ||||||||||||
Stock-based compensation expense | — | — | | — | — | — | | ||||||||||||
Balance at September 25, 2021 | | $ | | $ | | $ | | ( | $ | ( | $ | | |||||||
Net income | — | — | — | | — | — | | ||||||||||||
Issuance of common stock related to stock-based compensation | | — | | — | — | — | | ||||||||||||
Tax withholding for net share settlement | — | — | — | — | ( | ( | ( | ||||||||||||
Stock-based compensation expense | — | — | | — | — | — | | ||||||||||||
Balance at December 25, 2021 | | $ | | $ | | $ | | ( | $ | ( | $ | |
The accompanying notes are an integral part of these condensed consolidated financial statements.
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BOOT BARN HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Thirty-Nine Weeks Ended | ||||||
December 24, |
| December 25, | ||||
| 2022 |
| 2021 | |||
Cash flows from operating activities | ||||||
Net income | $ | | $ | | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation |
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Stock-based compensation |
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Amortization of intangible assets |
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Noncash lease expense | | | ||||
Amortization and write-off of debt issuance fees and debt discount |
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Loss on disposal of assets |
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Gain on adjustment of right-of-use assets and lease liabilities | — | ( | ||||
Deferred taxes |
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Changes in operating assets and liabilities: | ||||||
Accounts receivable, net |
| ( |
| | ||
Inventories |
| ( |
| ( | ||
Prepaid expenses and other current assets |
| ( |
| ( | ||
Other assets |
| ( |
| ( | ||
Accounts payable |
| |
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Accrued expenses and other current liabilities |
| |
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Other liabilities |
| |
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Operating leases | ( | ( | ||||
Net cash provided by operating activities | $ | | $ | | ||
Cash flows from investing activities | ||||||
Purchases of property and equipment | $ | ( | $ | ( | ||
Net cash used in investing activities | $ | ( | $ | ( | ||
Cash flows from financing activities | ||||||
Borrowings on line of credit, net | $ | | $ | — | ||
Repayments on debt and finance lease obligations | ( | ( | ||||
Tax withholding payments for net share settlement | ( | ( | ||||
Proceeds from the exercise of stock options | | | ||||
Net cash provided by/(used in) financing activities | $ | | $ | ( | ||
Net increase in cash and cash equivalents |
| |
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Cash and cash equivalents, beginning of period |
| |
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Cash and cash equivalents, end of period | $ | | $ | | ||
Supplemental disclosures of cash flow information: | ||||||
Cash paid for income taxes | $ | | $ | | ||
Cash paid for interest | $ | | $ | | ||
Supplemental disclosure of non-cash activities: | ||||||
Unpaid purchases of property and equipment | $ | | $ | |
The accompanying notes are an integral part of these condensed consolidated financial statements.
6
BOOT BARN HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Description of the Company, Recent Developments and Basis of Presentation
Boot Barn Holdings, Inc. (the “Company”), the parent holding company of the group of operating subsidiaries that conduct the Boot Barn business, was formed on November 17, 2011, and is incorporated in the State of Delaware. The equity of the Company consists of
The Company operates specialty retail stores and e-commerce websites that sell western and work boots and related apparel and accessories. The Company operates retail locations throughout the United States and sells its merchandise via the internet. The Company operated a total of
Recent Developments
Our business and opportunities for growth depend on consumer discretionary spending, and as such, our results are particularly sensitive to economic conditions and consumer confidence. Inflation (which has occurred over the past twelve months and is continuing) and other challenges affecting the global economy could impact our operations and will depend on future developments, which are uncertain. These and other effects make it more challenging for us to estimate the future performance of our business, particularly over the near-to-medium term. For further discussion of the uncertainties and business risks affecting the Company, see Item 1A, Risk Factors, of our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), on May 12, 2022 (the “Fiscal 2022 10-K”).
Basis of Presentation
The Company’s condensed consolidated financial statements as of and for the thirteen and thirty-nine weeks ended December 24, 2022 and December 25, 2021 are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), and include the accounts of the Company and each of its subsidiaries, consisting of Boot Barn, Inc., RCC Western Stores, Inc., Baskins Acquisition Holdings, LLC, Sheplers, LLC and Sheplers Holding LLC (collectively with Sheplers, LLC, “Sheplers”). All intercompany accounts and transactions among the Company and its subsidiaries have been eliminated in consolidation. The vast majority of the Company’s identifiable assets are in the United States. Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements have been condensed or omitted.
In the opinion of management, the interim condensed consolidated financial statements reflect all adjustments that are of a normal and recurring nature necessary to fairly present the Company’s financial position and results of operations and cash flows in all material respects as of the dates and for the periods presented. The results of operations presented in the interim condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the fiscal year ending April 1, 2023.
Fiscal Periods
The Company reports its results of operations and cash flows on a 52- or 53-week basis ending on the last Saturday of March unless April 1st is a Saturday, in which case the fiscal year ends on April 1st. In a 52-week year, each quarter includes thirteen weeks of operations; in a 53-week fiscal year, the first, second and third quarters each include thirteen weeks of operations and the fourth quarter includes fourteen weeks of operations. The current fiscal year ending on April 1, 2023 (“fiscal 2023”) will consist of
7
2. Summary of Significant Accounting Policies
Information regarding the Company’s significant accounting policies is contained in Note 2, “Summary of Significant Accounting Policies”, to the consolidated financial statements included in the Company’s Fiscal 2022 10-K. Presented below in the following notes is supplemental information that should be read in conjunction with those consolidated financial statements.
Comprehensive Income
The Company does not have any components of other comprehensive income recorded within its condensed consolidated financial statements and, therefore, does not separately present a statement of comprehensive income in its condensed consolidated financial statements.
Segment Reporting
GAAP has established guidance for reporting information about a company’s operating segments, including disclosures related to a company’s products and services, geographic areas and major customers. The Company’s retail stores and e-commerce websites represent
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Among the significant estimates affecting the Company’s condensed consolidated financial statements are those relating to revenue recognition, lease accounting, inventories, goodwill, intangible and long-lived assets, stock-based compensation and income taxes. Management regularly evaluates its estimates and assumptions based upon historical experience and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. To the extent actual results differ from those estimates, the Company’s future results of operations may be affected.
Inventories
Inventory consists primarily of purchased merchandise and is valued at the lower of cost or net realizable value. Cost is determined using the weighted-average cost method (which approximates the first-in, first-out method) and includes the cost of merchandise and import-related costs, including freight, duty and agent commissions. The Company assesses the recoverability of inventory through a periodic review of historical usage and present demand. When the inventory on hand exceeds the foreseeable demand, the value of inventory that, at the time of the review, is not expected to be sold at or above cost is written down to its estimated net realizable value.
Leases
Operating and finance lease liabilities are recognized at the lease commencement date based on the present value of the fixed lease payments using the Company's incremental borrowing rates for its population of leases. Related operating and finance lease right-of-use (“ROU”) assets are recognized based on the initial present value of the fixed lease payments, reduced by cash payments received from landlords as lease incentives, plus any prepaid rent and other direct costs from executing the leases. Amortization of both operating and finance lease right-of-use assets is performed on a straight-line basis and recorded as part of rent expense. The majority of total lease costs is recorded as part of cost of goods sold, with the balance recorded in selling, general and administrative expenses on the condensed consolidated
8
statements of operations. The interest expense amortization component of the finance lease liabilities is recorded within interest expense on the condensed consolidated statements of operations.
Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Variable lease payments are recognized as lease expense as they are incurred.
Fair Value of Certain Financial Assets and Liabilities
The Company follows FASB ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), which requires disclosure of the estimated fair value of certain assets and liabilities defined by the guidance as financial instruments. The Company’s financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable and debt. ASC 820 defines the fair value of financial instruments as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities.
● | Level 1 uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. |
● | Level 2 uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates, incremental borrowing rates, and volatility, can be corroborated by readily observable market data. |
● | Level 3 uses one or more significant inputs that are unobservable and supported by little or no market activity, and reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation. The Company’s Level 3 assets include certain acquired businesses and the evaluation of store impairment. |
Cash and cash equivalents, accounts receivable and accounts payable are classified according to the lowest level input that is significant to the fair value measurement. As a result, the asset or liability could be classified as Level 2 or Level 3 even though there may be certain significant inputs that are readily observable. The Company believes that the recorded value of its financial instruments approximates their current fair values because of their nature and respective relatively short maturity dates or duration.
Although market quotes for the fair value of the outstanding debt arrangements discussed in Note 4, “Revolving Credit Facilities and Long-Term Debt” are not readily available, the Company believes its carrying value approximates fair value due to the variable interest rates, which are Level 2 inputs. There were
Recent Accounting Pronouncements
In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), which clarifies some of its guidance around reference rate reform activities as global market participants undertake efforts to transition from using or referencing the London Interbank Offered Rate (LIBOR) and other interbank offered rates to using or referencing alternative reference rates. The amendments in this ASU if elected by an entity, are effective immediately. Unlike other topics, the provisions of this update are only available until December 31, 2022, by which time the reference rate replacement activity is expected to be completed. The revised standard did not have an impact on the Company’s consolidated financial statements.
9
Revenue Recognition
Revenue is recorded for store sales upon the purchase of merchandise by customers. Sales are recorded net of taxes collected from customers. Transfer of control takes place at the point at which the customer receives and pays for the merchandise at the register. E-commerce sales are recorded when control transfers to the customer, which generally occurs upon delivery of the product. Shipping and handling revenues are included in total net sales. Shipping costs incurred by the Company are included in cost of goods sold.
Revenue is recorded net of estimated and actual sales returns and deductions for coupon redemptions, estimated future award redemption and other promotions. The sales returns reserve reflects an estimate of sales returns based on projected merchandise returns determined through the use of historical average return percentages. The total reserve for returns is recorded in accrued expenses and other current liabilities in the consolidated balance sheets. The Company accounts for the return asset and liability separately on a gross basis.
The Company maintains a customer loyalty program. Under the program, customers accumulate points based on purchase activity. For customers to maintain their active point balance, they must make a qualifying purchase of merchandise at least once in a
Customer Loyalty Program |
| |||||
(in thousands) |
| December 24, 2022 | December 25, 2021 | |||
Beginning balance as of March 26, 2022 and March 27, 2021, respectively |
| $ | | $ | | |
Year-to-date provisions | | | ||||
Year-to-date award redemptions | ( | ( | ||||
Ending balance | $ | | $ | |
Proceeds from the sale of gift cards are deferred until the customers use the cards to acquire merchandise. Gift cards, gift certificates and store credits do not have expiration dates, and unredeemed gift cards, gift certificates and store credits are subject to state escheatment laws. Amounts remaining after escheatment are recognized in net sales in the period escheatment occurs and the liability is considered to be extinguished. The Company defers recognition of a layaway sale and its related profit to the accounting period when the customer receives the layaway merchandise. Income from the redemption of gift cards, gift card breakage, and the sale of layaway merchandise is included in net sales. Deferred revenue is recorded in accrued expenses and other current liabilities in the consolidated balance sheets. The following table provides a reconciliation of the activity related to the Company’s gift card program:
Gift Card Program |
| |||||
(in thousands) |
| December 24, 2022 | December 25, 2021 | |||
Beginning balance as of March 26, 2022 and March 27, 2021, respectively |
| $ | | $ | | |
Year-to-date issued | | | ||||
Year-to-date redemptions | ( | ( | ||||
Ending balance | $ | | $ | |
10
Disaggregated Revenue
The Company disaggregates net sales into the following major merchandise categories:
| Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||
% of Net Sales |
| December 24, 2022 | December 25, 2021 | December 24, 2022 | December 25, 2021 | |||||
Footwear |
| |||||||||
Apparel | ||||||||||
Hats, accessories and other | ||||||||||
Total |
The Company further disaggregates net sales between stores and e-commerce:
| Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||
% of Net Sales |
| December 24, 2022 | December 25, 2021 | December 24, 2022 | December 25, 2021 | |||||
Stores |
| |||||||||
E-commerce | ||||||||||
Total |
3. Intangible Assets, Net and Goodwill
Net intangible assets as of December 24, 2022 and March 26, 2022 consisted of the following (in thousands, except for weighted average useful life):
December 24, 2022 | |||||||||||
Gross |
|
|
| Weighted | |||||||
Carrying | Accumulated | Average | |||||||||
| Amount |
| Amortization |
| Net |
| Useful Life | ||||
Customer lists—definite lived | $ | | $ | ( | $ | |
| ||||
Trademarks—indefinite lived |
| |
| — |
| | |||||
Total intangible assets | $ | | $ | ( | $ | |
March 26, 2022 | |||||||||||
Gross | Weighted | ||||||||||
Carrying | Accumulated | Average | |||||||||
| Amount |
| Amortization |
| Net |
| Useful Life | ||||
Customer lists—definite lived | $ | | $ | ( | $ | |
| ||||
Trademarks—indefinite lived |
| |
| — |
| | |||||
Total intangible assets | $ | | $ | ( | $ | |
Amortization expense for intangible assets totaled less than $
As of December 24, 2022, estimated future amortization of intangible assets was as follows:
Fiscal Year |
| (in thousands) | |
2023 |
| $ | |
2024 |
| | |
2025 |
| | |
2026 |
| - | |
2027 |
| - | |
Thereafter |
| - | |
Total | $ | |
11
The Company performs its annual goodwill impairment assessment on the first day of its fourth fiscal quarter, or more frequently if it believes that indicators of impairment exist. The Company’s goodwill balance was $
During both the thirteen and thirty-nine weeks ended December 24, 2022 and December 25, 2021, the Company did
4. Revolving Credit Facility and Long-Term Debt
On June 29, 2015, the Company, as guarantor, and its wholly-owned primary operating subsidiary, Boot Barn, Inc., refinanced a previous Wells Fargo credit facility with the $
The borrowing base of the June 2015 Wells Fargo Revolver is calculated on a monthly basis and is based on the amount of eligible credit card receivables, commercial accounts, inventory, and available reserves.
Borrowings under the June 2015 Wells Fargo Revolver bear interest at per annum rates equal to, at the Company’s option, either (i) London Interbank Offered Rate (“LIBOR”) plus an applicable margin for LIBOR Loans, or (ii) the base rate plus an applicable margin for base rate loans. The base rate is calculated as the highest of (a) the federal funds rate plus
The amounts outstanding under the June 2015 Wells Fargo Revolver and letter of credit commitments as of December 24, 2022 were $
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On December 14, 2021, the Company repaid the remaining outstanding principal under the 2015 Golub Term Loan and terminated the agreement. Total interest expense incurred in the thirteen and thirty-nine weeks ended December 25, 2021 on the 2015 Golub Term Loan was $
All obligations under the June 2015 Wells Fargo Revolver are unconditionally guaranteed by the Company and each of its direct and indirect domestic subsidiaries (other than certain immaterial subsidiaries) which are not named as borrowers under the June 2015 Wells Fargo Revolver.
The June 2015 Wells Fargo Revolver contains customary provisions relating to mandatory prepayments, restricted payments, voluntary payments, affirmative and negative covenants, and events of default, and requires the Company to maintain, on a consolidated basis, a Consolidated Fixed Charge Coverage Ratio of at least
As of December 24, 2022, the Company was in compliance with the June 2015 Wells Fargo Revolver debt covenant.
Debt Issuance Costs
Debt issuance costs totaling $
Total amortization expense of less than $
Total amortization expense of $
5. Stock-Based Compensation
Equity Incentive Plans
On October 19, 2014, the Company approved the 2014 Equity Incentive Plan, which was amended as of August 24, 2016 (as amended, the “2014 Plan”). The 2014 Plan authorizes the Company to issue awards to employees, consultants and directors for up to a total of
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On August 26, 2020, the Company approved the 2020 Equity Incentive Plan (the “2020 Plan”). Following the approval of the 2020 Plan, no further grants have been made under the 2014 Plan. The 2020 Plan authorizes the Company to issue awards to employees and directors for up to a total of
Stock Options
During the thirteen weeks ended December 24, 2022, the Company did
During the thirty-nine weeks ended December 24, 2022, the Company granted its Chief Executive Officer ("CEO") an option to purchase
Stock price |
| $ | |
|
Exercise price | $ | | ||
Expected option term (1) |
| years | ||
Expected volatility (2) |
| | % | |
Risk-free interest rate (3) | % | |||
Expected annual dividend yield | % |
(1) | The Company has limited historical information regarding expected option term. Accordingly, the Company determined the expected life of the options using the simplified method. |
(2) | Stock volatility for each grant is measured using the weighted average of historical daily price changes of the Company’s stock over the most recent period equal to the expected option term of the Company’s awards. |
(3) | The risk-free interest rate is determined using the rate on treasury securities with the same term. |
During both the thirteen and thirty-nine weeks ended December 25, 2021, the Company did
Intrinsic value for stock options is defined as the difference between the market price of the Company’s common stock on the last business day of the fiscal quarter and the weighted average exercise price of in-the-money stock options outstanding at the end of each fiscal period.
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The following table summarizes the stock award activity for the thirty-nine weeks ended December 24, 2022:
Grant Date | Weighted | |||||||||
Weighted | Average | Aggregate | ||||||||
Stock | Average | Remaining | Intrinsic | |||||||
| Options |
| Exercise Price |
| Contractual Life |
| Value | |||
(in years) | (in thousands) | |||||||||
Outstanding at March 26, 2022 |
| | $ | | ||||||
Granted |
| | $ | | ||||||
Exercised | ( | $ | | $ | | |||||
Cancelled, forfeited or expired |
| — | $ | — | ||||||
Outstanding at December 24, 2022 |
| | $ | |
| $ | | |||
Vested and expected to vest after December 24, 2022 |
| | $ | |
| $ | | |||
Exercisable at December 24, 2022 |
| | $ | |
| $ | |
A summary of the status of non-vested stock options as of December 24, 2022 including changes during the thirty-nine weeks ended December 24, 2022 is presented below:
|
| Weighted- | |||
Average | |||||
Grant Date | |||||
| Shares |
| Fair Value | ||
Nonvested at March 26, 2022 |
| | $ | | |
Granted |
| | $ | | |
Vested |
| ( | $ | | |
Nonvested shares forfeited |
| — | $ | — | |
Nonvested at December 24, 2022 |
| | $ | |
Restricted Stock Units
During the thirteen weeks ended December 24, 2022, the Company did
During the thirty-nine weeks ended December 24, 2022, the Company granted
During the thirteen weeks ended December 25, 2021, the Company granted