Company Quick10K Filing
⚲
Children's Place
Financials
Price79.02 EPS3
Shares16 P/E26
MCap1,251 P/FCF12
Net Debt-66 EBIT58
TEV1,185 TEV/EBIT21
TTM 2019-11-02, in MM, except price, ratios
Filings
10-Q 2020-08-01 Filed 2020-09-03
10-Q 2020-05-02 Filed 2020-06-12
10-K 2020-02-01 Filed 2020-03-19
10-Q 2019-11-02 Filed 2019-12-11
10-Q 2019-08-03 Filed 2019-08-27
10-Q 2019-05-04 Filed 2019-05-29
10-K 2019-02-02 Filed 2019-03-21
10-Q 2018-11-03 Filed 2018-12-06
10-Q 2018-08-04 Filed 2018-08-28
10-Q 2018-05-05 Filed 2018-05-29
10-K 2018-02-03 Filed 2018-03-22
10-Q 2017-10-28 Filed 2017-11-21
10-Q 2017-07-29 Filed 2017-08-22
10-Q 2017-04-29 Filed 2017-05-24
10-K 2017-01-28 Filed 2017-03-23
10-Q 2016-10-29 Filed 2016-11-22
10-Q 2016-07-30 Filed 2016-08-31
10-Q 2016-04-30 Filed 2016-05-25
10-K 2016-01-30 Filed 2016-03-24
10-Q 2015-10-31 Filed 2015-12-08
10-Q 2015-08-01 Filed 2015-09-03
10-Q 2015-05-02 Filed 2015-05-20
10-K 2015-01-31 Filed 2015-03-26
10-Q 2014-11-01 Filed 2014-12-04
10-Q 2014-08-02 Filed 2014-09-02
10-Q 2014-05-03 Filed 2014-06-03
10-K 2014-02-01 Filed 2014-03-20
10-Q 2013-08-03 Filed 2013-09-03
10-Q 2013-05-04 Filed 2013-06-06
10-K 2013-02-02 Filed 2013-03-28
10-Q 2012-10-27 Filed 2012-11-29
10-Q 2012-07-28 Filed 2012-08-30
10-Q 2012-04-28 Filed 2012-05-31
10-K 2012-01-28 Filed 2012-03-23
10-Q 2011-10-29 Filed 2011-12-02
10-Q 2011-07-30 Filed 2011-09-07
10-Q 2011-04-30 Filed 2011-06-06
10-K 2011-01-29 Filed 2011-03-28
10-Q 2010-10-30 Filed 2010-12-02
10-Q 2010-07-31 Filed 2010-09-03
10-Q 2010-05-01 Filed 2010-06-04
10-K 2010-01-30 Filed 2010-03-26
Reports
8-K 2020-08-25 Earnings, Exhibits
8-K 2020-06-28 Regulation FD, Exhibits
8-K 2020-06-11
8-K 2020-05-22
8-K 2020-05-18
8-K 2020-05-14
8-K 2020-04-24
8-K 2020-03-31
8-K 2020-03-17
8-K 2020-03-17
8-K 2019-12-11
8-K 2019-10-22
8-K 2019-08-21
8-K 2019-05-15
8-K 2019-05-08
8-K 2019-04-04
8-K 2019-03-21
8-K 2019-03-01
8-K 2018-12-06
8-K 2018-11-08
8-K 2018-11-02
8-K 2018-08-23
8-K 2018-05-17
8-K 2018-05-09
8-K 2018-03-22
8-K 2018-03-20
8-K 2018-01-08
8-K 2018-01-02

PLCE 10Q Quarterly Report

Content
Part I. Financial Information
Item 1.Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II - Other Information
Item 1.Legal Proceedings.
Item 1A.Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 6. Exhibits.
Exhibits
EX-31.1 exhibit3112020q2.htm
EX-31.2 exhibit3122020q2.htm
EX-32 exhibit322020q2.htm

Children's Place Earnings 2020-08-01

Balance SheetIncome StatementCash Flow
1.41.10.80.60.30.02012201420172020
Assets, Equity
 0.60.50.30.20.0-0.12012201420172020
Rev, G Profit, Net Income
 0.10.0-0.0-0.1-0.1-0.22012201420172020
Ops, Inv, Fin
plce-20200801
000104185901-30Large Accelerated FilerFalseFalse2020Q2FALSESecaucusNJ0.100.100.10100,000100,000100,00014,63714,76215,72014,58514,71115,6711.001.001.001,0001,0001,000——————52514900010418592020-02-022020-08-01xbrli:shares00010418592020-09-01iso4217:USD00010418592020-08-0100010418592020-02-0100010418592019-08-03iso4217:USDxbrli:shares00010418592020-05-032020-08-0100010418592019-05-052019-08-0300010418592019-02-032019-08-0300010418592019-02-0200010418592018-02-042018-08-04xbrli:pure0001041859plce:A2015250MShareRepurchaseProgramMemberDomainDomainDomain2020-08-010001041859us-gaap:RetainedEarningsMember2020-02-022020-08-010001041859us-gaap:RetainedEarningsMember2019-02-032019-08-030001041859us-gaap:RestrictedStockUnitsRSUMember2020-05-032020-08-010001041859us-gaap:RestrictedStockUnitsRSUMember2019-05-052019-08-030001041859us-gaap:RestrictedStockUnitsRSUMember2020-02-022020-08-010001041859us-gaap:RestrictedStockUnitsRSUMember2019-02-032019-08-030001041859plce:PerformanceAwardsMember2020-05-032020-08-010001041859plce:PerformanceAwardsMember2019-05-052019-08-030001041859plce:PerformanceAwardsMember2020-02-022020-08-010001041859plce:PerformanceAwardsMember2019-02-032019-08-030001041859us-gaap:CostOfSalesMember2020-05-032020-08-010001041859us-gaap:CostOfSalesMember2019-05-052019-08-030001041859us-gaap:CostOfSalesMember2020-02-022020-08-010001041859us-gaap:CostOfSalesMember2019-02-032019-08-030001041859plce:DeferredAndRestrictedStockDeferredAwardsMember2020-02-010001041859plce:DeferredAndRestrictedStockDeferredAwardsMember2020-02-022020-08-010001041859plce:DeferredAndRestrictedStockDeferredAwardsMember2020-08-010001041859plce:PerformanceAwardsMember2020-02-010001041859plce:PerformanceAwardsMember2020-08-010001041859us-gaap:LandAndLandImprovementsMember2020-08-010001041859us-gaap:LandAndLandImprovementsMember2020-02-010001041859us-gaap:LandAndLandImprovementsMember2019-08-030001041859us-gaap:BuildingAndBuildingImprovementsMember2020-08-010001041859us-gaap:BuildingAndBuildingImprovementsMember2020-02-010001041859us-gaap:BuildingAndBuildingImprovementsMember2019-08-030001041859plce:MaterialHandlingEquipmentMember2020-08-010001041859plce:MaterialHandlingEquipmentMember2020-02-010001041859plce:MaterialHandlingEquipmentMember2019-08-030001041859us-gaap:LeaseholdImprovementsMember2020-08-010001041859us-gaap:LeaseholdImprovementsMember2020-02-010001041859us-gaap:LeaseholdImprovementsMember2019-08-030001041859plce:StoreFixturesAndEquipmentMember2020-08-010001041859plce:StoreFixturesAndEquipmentMember2020-02-010001041859plce:StoreFixturesAndEquipmentMember2019-08-030001041859us-gaap:ComputerSoftwareIntangibleAssetMember2020-08-010001041859us-gaap:ComputerSoftwareIntangibleAssetMember2020-02-010001041859us-gaap:ComputerSoftwareIntangibleAssetMember2019-08-030001041859us-gaap:ConstructionInProgressMember2020-08-010001041859us-gaap:ConstructionInProgressMember2020-02-010001041859us-gaap:ConstructionInProgressMember2019-08-030001041859plce:NumberOfStoresTestedForImpairmentMember2020-08-010001041859plce:NumberOfStoresTestedForImpairmentMember2019-08-030001041859plce:A2008CreditAgreementMember2020-08-010001041859us-gaap:PrimeRateMemberplce:A2008CreditAgreementMember2020-02-022020-08-010001041859plce:LiborMemberplce:A2008CreditAgreementMember2020-02-022020-08-010001041859plce:A2008CreditAgreementMember2020-02-022020-08-010001041859us-gaap:LetterOfCreditMemberplce:A2008CreditAgreementMember2020-02-022020-08-010001041859us-gaap:StandbyLettersOfCreditMemberplce:A2008CreditAgreementMember2020-02-022020-08-010001041859us-gaap:StandbyLettersOfCreditMember2020-08-010001041859us-gaap:StandbyLettersOfCreditMember2020-02-010001041859us-gaap:StandbyLettersOfCreditMember2019-08-0300010418592019-02-032019-11-020001041859plce:ChildrensPlaceUsMember2020-08-010001041859plce:ChildrensPlaceCanadaMember2020-08-010001041859plce:ChildrensPlaceUsMember2019-08-030001041859plce:ChildrensPlaceCanadaMember2019-08-030001041859plce:ChildrensPlaceUsMember2020-05-032020-08-010001041859plce:ChildrensPlaceUsMember2019-05-052019-08-030001041859plce:ChildrensPlaceUsMember2020-02-022020-08-010001041859plce:ChildrensPlaceUsMember2019-02-032019-08-030001041859plce:ChildrensPlaceCanadaMember2020-05-032020-08-010001041859plce:ChildrensPlaceCanadaMember2019-05-052019-08-030001041859plce:ChildrensPlaceCanadaMember2020-02-022020-08-010001041859plce:ChildrensPlaceCanadaMember2019-02-032019-08-030001041859plce:ChildrensPlaceUsMember2020-02-010001041859plce:ChildrensPlaceCanadaMember2020-02-01
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
______________________________________________________
 FORM 10-Q
 (Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended August 1, 2020
☐ 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 0-23071
______________________________________________________
 THE CHILDRENS PLACE, INC.
(Exact name of registrant as specified in its charter)
Delaware 31-1241495
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
500 Plaza Drive  
Secaucus, New Jersey 07094
(Address of Principal Executive Offices) (Zip Code)

(201) 558-2400
(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act: Common Stock, $0.10 par value
Trading Symbol: PLCE
Name of each exchange on which registered: Nasdaq Global Select Market
___________________________________________
 
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. Yes x No o
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o
 
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 the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one).
Large accelerated filer x
Accelerated filer o
  
Non-accelerated filer o
Smaller reporting company o
(Do not check if a smaller reporting company)
Emerging growth company o
 
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.  o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
 
The number of shares outstanding of the registrant’s common stock with a par value of $0.10 per share, as of September 1, 2020 was 14,587,813 shares.

Table of Contents
THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
 
QUARTERLY REPORT ON FORM 10-Q
 
FOR THE PERIOD ENDED AUGUST 1, 2020
 
TABLE OF CONTENTS
 
  
 
 
Consolidated Statements of Changes in Stockholders' Equity
 
 
  
  


Table of Contents
PART I. FINANCIAL INFORMATION

Item 1.CONSOLIDATED FINANCIAL STATEMENTS
1
Table of Contents
THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
August 1,
2020		February 1,
2020		August 3,
2019
(unaudited)(unaudited)
(in thousands, except par value)
ASSETS   
Current assets:   
Cash and cash equivalents$36,119 $68,487 $65,357 
Accounts receivable29,634 32,812 39,638 
Inventories381,022 327,165 386,174 
Prepaid expenses and other current assets23,085 21,416 30,258 
Total current assets469,860 449,880 521,427 
Long-term assets:   
Property and equipment, net200,963 236,898 248,777 
Right-of-use assets319,796 393,820 430,145 
Tradenames, net72,892 73,291 73,456 
Deferred income taxes91,926 12,941 15,590 
Other assets12,502 14,567 14,142 
Total assets$1,167,939 $1,181,397 $1,303,537 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
LIABILITIES:   
Current liabilities:   
Revolving loan$250,818 $170,808 $196,352 
Accounts payable279,014 213,115 236,619 
Current lease liabilities160,932 121,868 127,695 
Income taxes payable5,666 5,607 5,068 
Accrued expenses and other current liabilities113,112 83,609 108,463 
Total current liabilities809,542 595,007 674,197 
Long-term liabilities:   
Long-term lease liabilities254,187 311,908 341,828 
Other tax liabilities6,811 6,782 5,043 
Income taxes payable17,589 17,589 18,939 
Other long-term liabilities18,295 14,924 14,274 
Total liabilities1,106,424 946,210 1,054,281 
COMMITMENTS AND CONTINGENCIES   
STOCKHOLDERS’ EQUITY:   
Preferred stock, $1.00 par value, 1,000 shares authorized, 0 shares issued and outstanding— — — 
Common stock, $0.10 par value, 100,000 shares authorized; 14,637, 14,762, and 15,719 issued; 14,585, 14,711, and 15,670 outstanding1,464 1,476 1,572 
Additional paid-in capital138,350 139,041 149,140 
Treasury stock, at cost (52, 51, and 49 shares)(3,025)(2,956)(2,816)
Deferred compensation3,025 2,956 2,816 
Accumulated other comprehensive loss(14,437)(13,545)(15,245)
Retained earnings (deficit)(63,862)108,215 113,789 
Total stockholders’ equity61,515 235,187 249,256 
Total liabilities and stockholders’ equity$1,167,939 $1,181,397 $1,303,537 
See accompanying notes to these consolidated financial statements.
2
Table of Contents
THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
 Thirteen Weeks EndedTwenty-six Weeks Ended
 August 1,
2020		August 3,
2019		August 1,
2020		August 3,
2019
(In thousands, except earnings and dividends per share)
Net sales$368,923 $420,470 $624,130 $832,851 
Cost of sales (exclusive of depreciation and amortization)301,843 281,624 576,723 542,030 
Gross profit 67,080 138,846 47,407 290,821 
Selling, general, and administrative expenses114,312 116,417 212,803 244,423 
Depreciation and amortization16,708 18,472 34,596 37,056 
Asset impairment charges544 121 37,635 469 
Operating income (loss)(64,484)3,836 (237,627)8,873 
Interest expense(2,647)(2,321)(4,536)(4,120)
Interest income8 43 57 131 
Income (loss) before benefit for income taxes(67,123)1,558 (242,106)4,884 
Provision (benefit) for income taxes(20,484)35 (80,657)(1,128)
Net income (loss)$(46,639)$1,523 $(161,449)$6,012 
Earnings (loss) per common share
Basic$(3.19)$0.10 $(11.04)$0.38 
Diluted$(3.19)$0.10 $(11.04)$0.38 
Weighted average common shares outstanding
Basic14,634 15,818 14,623 15,832 
Diluted14,634 15,859 14,623 15,983 
Cash dividends declared per common share$— $0.56 $— $1.12 
 
See accompanying notes to these consolidated financial statements.

3
Table of Contents
THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)



 Thirteen Weeks EndedTwenty-six Weeks Ended
 August 1, 2020August 3, 2019August 1, 2020August 3, 2019
(In thousands)
Net income (loss)$(46,639)$1,523 $(161,449)$6,012 
Other comprehensive income (loss):
Foreign currency translation adjustment431 286 (1,092)(397)
Change in fair value of cash flow hedges, net of income taxes45 11 200 86 
Total comprehensive income (loss) $(46,163)$1,820 $(162,341)$5,701 
 
See accompanying notes to these consolidated financial statements.

4
Table of Contents
THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)


Thirteen Weeks Ended August 1, 2020
Accumulated
AdditionalRetainedOtherTotal
Common StockPaid-InDeferredEarningsComprehensiveTreasury StockStockholders'
(in thousands, except dividends per share)SharesAmountCapitalCompensation(Deficit)LossSharesValueEquity
BALANCE, May 2, 202014,581 $1,458 $135,328 $3,025 $(16,838)$(14,913)(52)$(3,025)$105,035 
Vesting of stock awards86 9 (9)— 
Stock-based compensation3,528 3,528 
Purchase and retirement of shares(30)(3)(497)(385)(885)
Change in cumulative translation
adjustment		431 431 
Change in fair value of cash flow
hedges, net of income taxes 		45 45 
Deferral of common stock into
deferred compensation plan		— — — — 
Net income (loss)(46,639)(46,639)
BALANCE, August 1, 202014,637 $1,464 $138,350 $3,025 $(63,862)$(14,437)(52)$(3,025)$61,515 




Twenty-six Weeks Ended August 1, 2020
Accumulated
AdditionalRetainedOtherTotal
Common StockPaid-InDeferredEarningsComprehensiveTreasury StockStockholders'
(in thousands, except dividends per share)SharesAmountCapitalCompensation(Deficit)LossSharesValueEquity
BALANCE, February 1, 202014,762 $1,476 $139,041 $2,956 $108,215 $(13,545)(51)$(2,956)$235,187 
Vesting of stock awards167 17 (17)— 
Stock-based compensation4,113 4,113 
Purchase and retirement of shares(292)(29)(4,787)(10,628)(15,444)
Change in cumulative translation
adjustment		(1,092)(1,092)
Change in fair value of cash flow
hedges, net of income taxes 		200 200 
Deferral of common stock into
deferred compensation plan		69 (1)(69)— 
Net income (loss)(161,449)(161,449)
BALANCE, August 1, 202014,637 $1,464 $138,350 $3,025 $(63,862)$(14,437)(52)$(3,025)$61,515 

















5
Table of Contents
THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)


Thirteen Weeks Ended August 3, 2019
Accumulated
AdditionalOtherTotal
Common StockPaid-InDeferredRetainedComprehensiveTreasury StockStockholders'
(in thousands, except dividends per share)SharesAmountCapitalCompensationEarningsLossSharesValueEquity
BALANCE, May 4, 201915,913 $1,592 $149,435 $2,747 $144,889 $(15,542)(48)$(2,747)$280,374 
Vesting of stock awards63 6 (1)5 
Stock-based compensation3,514 3,514 
Purchase and retirement of shares(257)(26)(4,133)(23,428)(27,587)
Dividends declared ($0.56 per share)(8,869)(8,869)
Unvested dividends325 (325)— 
Change in cumulative translation
adjustment		286 286 
Change in fair value of cash flow
hedges, net of income taxes 		11 11 
Deferral of common stock into
deferred compensation plan		69 (1)(69)— 
Net income1,523 1,523 
BALANCE, August 3, 201915,719 $1,572 $149,140 $2,816 $113,789 $(15,245)(49)$(2,816)$249,256 




Twenty-six Weeks Ended August 3, 2019
Accumulated
AdditionalOtherTotal
Common StockPaid-InDeferredRetainedComprehensiveTreasury StockStockholders'
(in thousands, except dividends per share)SharesAmountCapitalCompensationEarningsLossSharesValueEquity
BALANCE, February 2, 201915,873 $1,588 $146,991 $2,685 $180,792 $(14,934)(47)$(2,685)$314,437 
Vesting of stock awards466 46 (5)41 
Stock-based compensation11,273 11,273 
Purchase and retirement of shares(620)(62)(9,659)(53,009)(62,730)
Dividends declared ($0.56 per share)(17,799)(17,799)
Unvested dividends540 (540)— 
ASC Topic 842 Adjustment(1,667)(1,667)
Change in cumulative translation
adjustment		(397)(397)
Change in fair value of cash flow
hedges, net of income taxes 		86 86 
Deferral of common stock into
deferred compensation plan		131 (2)(131)— 
Net income 6,012 6,012 
BALANCE, August 3, 201915,719 $1,572 $149,140 $2,816 $113,789 $(15,245)(49)$(2,816)$249,256 













6
Table of Contents




THE CHILDREN’S PLACE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 Twenty-six Weeks Ended
 August 1,
2020		August 3,
2019
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:  
Net income (loss)$(161,449)$6,012 
Reconciliation of net income (loss) to net cash provided by operating activities:  
Non-cash portion of operating lease expense57,345 66,387 
Depreciation and amortization34,596 37,056 
Stock-based compensation4,113 11,273 
Deferred taxes(79,031)2,132 
Asset impairment charges37,635 469 
Other199 544 
Changes in operating assets and liabilities:
Inventories(53,644)(82,807)
Accounts receivable and other assets4,635 (2,197)
Prepaid expenses and other current assets4,367 10,521 
Income taxes payable, net of prepayments(6,136)(3,290)
Accounts payable and other current liabilities93,634 59,301 
Other long-term liabilities(19,468)(82,106)
Net cash provided by (used in) operating activities(83,204)23,295 
CASH FLOWS FROM INVESTING ACTIVITIES:  
Capital expenditures(14,268)(