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 |
For the transition period from ______to ______.
Commission file number:
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of |
(IRS Employer Identification No.) |
incorporation or organization) |
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(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Common Stock, no par value –
KIRKLAND’S, INC.
TABLE OF CONTENTS
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Notes to Condensed Consolidated Financial Statements (Unaudited) |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
KIRKLAND’S, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share data)
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October 29, |
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January 29, |
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October 30, |
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2022 |
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2022 |
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2021 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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Inventories, net |
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Prepaid expenses and other current assets |
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Total current assets |
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Property and equipment: |
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Equipment |
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Furniture and fixtures |
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Leasehold improvements |
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Computer software and hardware |
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Projects in progress |
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Property and equipment, gross |
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Accumulated depreciation |
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Property and equipment, net |
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Operating lease right-of-use assets |
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Other assets |
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Total assets |
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$ |
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$ |
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$ |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
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Accrued expenses |
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Operating lease liabilities |
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Total current liabilities |
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Operating lease liabilities |
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Revolving line of credit |
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Other liabilities |
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Total liabilities |
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Shareholders’ equity: |
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Preferred stock, |
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Common stock, |
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Accumulated deficit |
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Total shareholders’ equity |
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Total liabilities and shareholders’ equity |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of these financial statements.
3
KIRKLAND’S, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
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13-Week Period Ended |
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39-Week Period Ended |
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October 29, |
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October 30, |
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October 29, |
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October 30, |
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2022 |
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2021 |
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2022 |
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2021 |
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Net sales |
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$ |
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$ |
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$ |
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$ |
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Cost of sales |
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Gross profit |
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Operating expenses: |
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Compensation and benefits |
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Other operating expenses |
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Depreciation (exclusive of depreciation included in cost of sales) |
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Total operating expenses |
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Operating (loss) income |
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Interest expense |
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Other income |
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(Loss) income before income taxes |
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Income tax expense |
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Net (loss) income |
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(Loss) earnings per share: |
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Basic |
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$ |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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Weighted average shares outstanding: |
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Basic |
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Diluted |
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The accompanying notes are an integral part of these financial statements.
4
KIRKLAND’S, INC.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)
(in thousands, except share data)
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Common Stock |
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Accumulated |
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Total |
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Shares |
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Amount |
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Deficit |
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Equity |
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Balance at January 29, 2022 |
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$ |
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$ |
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Exercise of stock options |
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— |
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Restricted stock issued |
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— |
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— |
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— |
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Net share settlement of stock options and restricted stock units |
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( |
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— |
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Stock-based compensation expense |
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— |
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— |
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Repurchase and retirement of common stock |
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— |
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Net loss |
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— |
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— |
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( |
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Balance at April 30, 2022 |
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Restricted stock issued |
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— |
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— |
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Net share settlement of restricted stock units |
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( |
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— |
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Stock-based compensation expense |
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— |
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Net loss |
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— |
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— |
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Balance at July 30, 2022 |
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Stock-based compensation expense |
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— |
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— |
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Net loss |
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— |
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— |
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( |
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Balance at October 29, 2022 |
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$ |
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$ |
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$ |
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Common Stock |
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Accumulated |
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Total |
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Shares |
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Amount |
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Deficit |
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Equity |
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Balance at January 30, 2021 |
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$ |
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$ |
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Exercise of stock options |
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— |
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Restricted stock issued |
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— |
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— |
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— |
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Net share settlement of stock options and restricted stock units |
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— |
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Stock-based compensation expense |
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— |
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— |
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Repurchase and retirement of common stock |
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— |
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Net income |
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— |
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— |
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Balance at May 1, 2021 |
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Exercise of stock options |
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— |
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Restricted stock issued |
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— |
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— |
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— |
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Net share settlement of stock options and restricted stock units |
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( |
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( |
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— |
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Stock-based compensation expense |
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— |
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— |
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Repurchase and retirement of common stock |
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— |
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Net income |
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— |
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— |
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Balance at July 31, 2021 |
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Restricted stock issued |
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— |
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— |
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— |
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Net share settlement of restricted stock units |
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( |
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( |
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— |
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Stock-based compensation expense |
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— |
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Repurchase and retirement of common stock |
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— |
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Net income |
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— |
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— |
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Balance at October 30, 2021 |
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$ |
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$ |
( |
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$ |
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The accompanying notes are an integral part of these financial statements.
5
KIRKLAND’S, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
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39-Week Period Ended |
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October 29, |
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October 30, |
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2022 |
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2021 |
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Cash flows from operating activities: |
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Net (loss) income |
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$ |
( |
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$ |
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Adjustments to reconcile net (loss) income to net cash used in operating activities: |
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Depreciation and amortization of property and equipment |
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Amortization of debt issue costs |
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Asset impairment |
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Loss (gain) on disposal of property and equipment |
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Stock-based compensation expense |
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Changes in assets and liabilities: |
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Inventories, net |
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Prepaid expenses and other current assets |
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Accounts payable |
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Accrued expenses |
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( |
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( |
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Income taxes receivable |
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( |
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( |
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Operating lease assets and liabilities |
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( |
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( |
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Other assets and liabilities |
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Net cash used in operating activities |
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Cash flows from investing activities: |
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Proceeds from sale of property and equipment |
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Capital expenditures |
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( |
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( |
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Net cash used in investing activities |
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Cash flows from financing activities: |
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Borrowings on revolving line of credit |
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Cash used in net share settlement of stock options and restricted stock units |
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Proceeds received from employee stock option exercises |
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Repurchase and retirement of common stock |
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( |
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Net cash provided by (used in) financing activities |
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( |
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Cash and cash equivalents: |
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Net decrease |
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Beginning of the period |
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End of the period |
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$ |
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