RH Reports First Quarter Fiscal 2016 Financial Results
The Company will post a video presentation between approximately
First Quarter Highlights
- Net revenues increased 8% on top of a 15% increase last year
- Comparable brand revenues increased 4% on top of a 15% increase last year
- GAAP net loss of
$13.5 million compared to net income of$7.2 million for the same period last year - Adjusted net loss of
$2.1 million compared to adjusted net income of$9.8 million last year - GAAP diluted loss per share of
$0.33 compared to diluted earnings per share of$0.17 for the same period last year - Adjusted diluted loss per share of
$0.05 compared to adjusted diluted earnings per share of$0.23 last year
Mr. Friedman continued, “Our recent move from a promotional to a membership model, with the introduction of the RH Grey Card, further supports the evolution of our business from selling products to facilitating projects. While we are learning that the selling cycle with members is longer, as transactions are not closed with the urgency of artificially imposed sale deadlines, and the timing of recognizing membership revenues will put pressure on margins in the short term, we are pleased with the early adoption rate and growth in average order size. At this point we have every reason to believe membership will prove to be a success, elevating our brand, improving the customer experience, and streamlining our business.”
Mr. Friedman added, “In May, Waterworks officially became part of the RH family. Waterworks has long been the definition of the well-appointed bath, and is the only complete bath and kitchen business offering fittings, fixtures, furniture, accessories, lighting and surfaces under one brand in the market. We are thrilled to add this prestigious brand to our product platform, as it not only positions RH as an authority in two of the most important rooms of the home – the bath and kitchen – but also creates the first fully integrated luxury home platform in the world.”
Mr. Friedman concluded, “Despite our recent difficulties, we remain the leading luxury home brand in the world, with a clear path to
First Quarter Fiscal 2016 Results
Revenue - Net revenues for the first quarter of fiscal 2016 increased 8% to
- Comparable brand revenue growth, which includes direct, was 4% in the first quarter of fiscal 2016 on top of 15% for the same period last year.
- Stores revenues increased 19% to
$256.1 million in the first quarter of fiscal 2016. This growth is on top of a 13% increase in stores revenues in the first quarter of fiscal 2015. - Direct revenues decreased 4% to
$199.4 million in the first quarter of fiscal 2016. Direct revenues during the first quarter of fiscal 2016 represented 44% of total net revenues.
Revenue Metrics* | ||||||||||
Three Months Ended | ||||||||||
April 30, | May 2, | |||||||||
2016 | 2015 | |||||||||
Stores as a percentage of net revenues | 56 | % | 51 | % | ||||||
Direct as a percentage of net revenues | 44 | % | 49 | % | ||||||
Growth in net revenues: | ||||||||||
Stores | 19 | % | 13 | % | ||||||
Direct | -4 | % | 18 | % | ||||||
Total | 8 | % | 15 | % | ||||||
Comparable brand revenue growth | 4 | % | 15 | % | ||||||
* See the Company’s most recent Form 10-K and Form 10-Q filings for the definitions of stores, direct, and comparable brand revenue. | ||||||||||
Retail Galleries - As of
Retail Gallery Metrics* | |||||||||||||||
Three Months Ended | |||||||||||||||
April 30, | May 2, | ||||||||||||||
2016 | 2015 | ||||||||||||||
Total Leased Selling |
Total Leased Selling |
||||||||||||||
Store Count | Square Footage | Store Count | Square Footage | ||||||||||||
(in thousands) | (in thousands) | ||||||||||||||
Beginning of period | 69 | 725 | 67 | 607 | |||||||||||
Retail galleries opened | |||||||||||||||
Tampa Temporary Gallery |
— |
— |
|
|
1 |
4.3 | |||||||||
Retail galleries closed | |||||||||||||||
Tampa Legacy Gallery | — | — |
|
(1 |
) |
|
(6.1 |
) | |||||||
End of period | 69 | 725 | 67 | 605 | |||||||||||
% Growth | 20 | % | 10 | % | |||||||||||
Weighted-average leased selling square footage |
725 |
606 |
|||||||||||||
% Growth | 20 | % | 10 | % | |||||||||||
* See the Company’s most recent Form 10-K and Form 10-Q filings for square footage definitions. | |||||||||||||||
Total leased square footage as of April 30, 2016 and May 2, 2015 was 1,011,000 and 857,000, respectively. | |||||||||||||||
Weighted-average leased square footage for the three months ended April 30, 2016 and May 2, 2015 was 1,011,000 and 846,000, respectively. | |||||||||||||||
Retail sales per leased selling square foot for the three months ended April 30, 2016 and May 2, 2015 was $315 and $304, respectively. | |||||||||||||||
Operating Income and Margin** - On an unadjusted basis, GAAP operating loss was
Adjusted operating income in the first quarter of fiscal 2016 was
Net Income (Loss) ** - On an unadjusted basis, GAAP net loss for the first quarter of fiscal 2016 was
Adjusted net loss in the first quarter of fiscal 2016 was
Earnings (Loss) Per Share** - On an unadjusted basis, GAAP diluted loss per share for the first quarter of fiscal 2016 was
Adjusted diluted loss per share for the first quarter of fiscal 2016 was
A reconciliation of GAAP to non-GAAP financial measures is provided in the tables accompanying this release.
Outlook
The Company’s results for fiscal 2016 will be impacted by certain short term operational items including costs associated with RH Modern production delays and investments to elevate the customer experience, timing issues related to the transition from a promotional to a membership model, and a more aggressive approach to rationalizing its SKU count and optimizing inventory. These factors are negatively impacting the Company’s fiscal 2016 adjusted diluted EPS outlook by approximately
The Company is providing the following outlook for the second quarter of fiscal 2016 (including an approximate
- Net revenues in the range of
$505 million to $520 million - Adjusted net income in the range of
$11.5 million to $13.5 million - Adjusted diluted EPS in the range of
$0.28 to $0.33 - Income tax rate of approximately 39%
- Diluted shares outstanding of approximately 41 million
The Company is lowering its outlook for fiscal year 2016 (including an approximate
- Net revenues growth in the range of 1% to 3%
- Adjusted diluted EPS in the range of
$1.60 to $1.80 - Capital expenditures in the range of
$180 million to $210 million
Note: The Company’s adjusted net income (loss) and adjusted diluted earnings (loss) per share guidance does not include certain charges and costs. The adjustments to net income (loss) and diluted earnings (loss) per share in future periods are generally expected to be similar to the kinds of charges and costs excluded from adjusted net income (loss) and adjusted diluted earnings (loss) per share in prior quarters, such as non-cash and other compensation expense; one-time income tax expense; legal claim related expenses; reorganization costs including severance; and charges and costs in connection with the acquisition of Waterworks, among others. The exclusion of these charges and costs in future periods will have a significant impact on the Company’s adjusted net income (loss) and adjusted diluted earnings (loss). The Company is not able to provide a reconciliation of the Company’s non-GAAP financial guidance to the corresponding GAAP measures without unreasonable effort because of the uncertainty and variability of the nature and amount of these future charges and costs.
Video Presentation and Q&A Conference Call Information
Accompanying this release, RH will today post a video presentation highlighting the Company’s first quarter fiscal 2016 performance and outlook on the Company’s Investor Relations website, ir.restorationhardware.com. Management will then host a live question and answer conference call at
About RH
RH (
**Non-GAAP Financial Measures
To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles (“GAAP”), the Company uses the following non-GAAP financial measures: adjusted operating income, adjusted operating margin, adjusted net income (loss), and adjusted diluted earnings (loss) per share (collectively, “non-GAAP financial measures”). We compute these measures by adjusting the applicable GAAP measures to remove the impact of certain recurring and non-recurring charges and gains and the tax effect of these adjustments. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP financial measures used by the Company in this press release may be different from the non-GAAP financial measures, including similarly titled measures, used by other companies.
For more information on the non-GAAP financial measures, please see the Reconciliation of GAAP to non-GAAP Financial Measures tables in this press release. These accompanying tables include details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.
Forward-Looking Statements
This release and the accompanying video presentation contain forward-looking statements within the meaning of the federal securities laws including statements related to our future financial guidance, including for the second and subsequent quarters of fiscal 2016 and the fiscal year ended
RESTORATION HARDWARE HOLDINGS, INC. | |||||||||||||||||||||||||||||||||||||
RECONCILIATION OF ADJUSTED INCOME STATEMENT ITEMS | |||||||||||||||||||||||||||||||||||||
(In thousands, except share and per share amounts) | |||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||
Reported | Adjusted | Reported | Adjusted | ||||||||||||||||||||||||||||||||||
April 30, | April 30, | % of Net | May 2, | May 2, | % of Net | ||||||||||||||||||||||||||||||||
2016 | Adjustments | 2016 | Revenues | 2015 | Adjustments | 2015 | Revenues | ||||||||||||||||||||||||||||||
Net revenues | $ | 455,456 | $ | — | $ | 455,456 |
100.0 |
% |
$ |
422,445 |
|
$ |
— |
$ | 422,445 | 100.0 | % | ||||||||||||||||||||
Cost of goods sold [a] | 327,981 | (7,729 | ) | 320,252 | 70.3 | % | 279,027 | (1,379 | ) | 277,648 | 65.7 | % | |||||||||||||||||||||||||
Gross profit | 127,475 | 7,729 | 135,204 | 29.7 | % | 143,418 | 1,379 | 144,797 | 34.3 | % | |||||||||||||||||||||||||||
Selling, general and administrative expenses [a] |
138,950 | (4,456 | ) | 134,494 | 29.5 | % | 126,389 | (189 | ) | 126,200 | 29.9 | % | |||||||||||||||||||||||||
Income (loss) from operations |
(11,475 | ) | 12,185 | 710 | 0.2 | % | 17,029 | 1,568 | 18,597 | 4.4 | % | ||||||||||||||||||||||||||
Interest expense—net [a] |
10,528 | (6,442 | ) | 4,086 | 0.9 | % | 5,649 | (2,702 | ) | 2,947 | 0.7 | % | |||||||||||||||||||||||||
Income (loss) before income taxes | (22,003 | ) | 18,627 | (3,376 | ) | -0.7 | % | 11,380 | 4,270 | 15,650 | 3.7 | % | |||||||||||||||||||||||||
Income tax expense (benefit) [a] | (8,533 | ) | 7,223 | (1,310 | ) | -0.2 | % | 4,224 | 1,584 | 5,808 | 1.4 | % | |||||||||||||||||||||||||
Net income (loss) [b] |
$ | (13,470 | ) | $ | 11,404 | $ | (2,066 | ) | -0.5 | % | $ | 7,156 | $ | 2,686 | $ | 9,842 | 2.3 | % | |||||||||||||||||||
Weighted-average shares used in computing basic net income (loss) per share |
40,588,081 | 40,588,081 | 39,913,946 | 39,913,946 | |||||||||||||||||||||||||||||||||
Basic net income (loss) per share | $ | (0.33 | ) | $ | (0.05 | ) | $ | 0.18 | $ | 0.25 | |||||||||||||||||||||||||||
Weighted-average shares used in computing diluted net income (loss) per share |
40,588,081 | 40,588,081 | 41,959,718 | 41,959,718 | |||||||||||||||||||||||||||||||||
Diluted net income (loss) per share |
$ | (0.33 | ) | $ | (0.05 | ) | $ | 0.17 | $ | 0.23 | |||||||||||||||||||||||||||
[a] |
Refer to table titled “Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (Loss)” and the related footnotes for additional information. |
||
[b] |
Adjusted net income (loss) is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. We define adjusted net income (loss) as net income (loss), adjusted for the impact of certain non-recurring and other items that we do not consider representative of our ongoing operating performance. Adjusted net income (loss) is included in this press release because management believes that adjusted net income (loss) provides meaningful supplemental information for investors regarding the performance of our business and facilitates a meaningful evaluation of operating results on a comparable basis with historical results. Our management uses this non-GAAP financial measure in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. |
||
RESTORATION HARDWARE HOLDINGS, INC. | ||||||||||
RECONCILIATION OF DILUTED NET INCOME (LOSS) PER SHARE TO | ||||||||||
ADJUSTED DILUTED NET INCOME (LOSS) PER SHARE | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | ||||||||||
April 30, | May 2, | |||||||||
2016 | 2015 | |||||||||
Diluted net income (loss) per share | $ | (0.33 | ) | $ | 0.17 | |||||
EPS impact of adjustments (pre-tax) [a]: |
||||||||||
Legal claim | $ | 0.21 | $ | 0.04 | ||||||
Amortization of debt discount | 0.16 | 0.06 | ||||||||
Acquisition related costs | 0.05 | — | ||||||||
Reorganization related costs | 0.04 | — | ||||||||
Subtotal adjusted items | 0.46 | 0.10 | ||||||||
Impact of income tax on adjusted items [a] | (0.18 | ) | (0.04 | ) | ||||||
Adjusted diluted net income (loss) per share [b] | $ | (0.05 | ) | $ | 0.23 | |||||
[a] | Refer to table titled “Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (Loss)” and the related footnotes for additional information. | ||
[b] | Adjusted diluted net income (loss) per share is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. We define adjusted diluted net income (loss) per share as net income (loss), adjusted for the impact of certain non-recurring and other items that we do not consider representative of our ongoing operating performance divided by the Company’s share count. Adjusted diluted net income (loss) per share is included in this press release because management believes that adjusted diluted net income (loss) per share provides meaningful supplemental information for investors regarding the performance of our business and facilitates a meaningful evaluation of operating results on a comparable basis with historical results. Our management uses this non-GAAP financial measure in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. | ||
RESTORATION HARDWARE HOLDINGS, INC. | ||||||||||
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | ||||||||||
April 30, | May 2, | |||||||||
2016 | 2015 | |||||||||
GAAP net income (loss) | $ | (13,470 | ) | $ | 7,156 | |||||
Adjustments (pre-tax): | ||||||||||
Legal claim [a] | $ | 8,701 | $ | 1,568 | ||||||
Amortization of debt discount [b] | 6,442 | 2,702 | ||||||||
Acquisition related costs [c] | 2,069 | — | ||||||||
Reorganization related costs [d] | 1,415 | — | ||||||||
Subtotal adjusted items | 18,627 | 4,270 | ||||||||
Impact of income tax on adjusted items [e] | (7,223 | ) | (1,584 | ) | ||||||
Adjusted net income (loss) [f] | $ | (2,066 | ) | $ | 9,842 | |||||
[a] |
Adjustments represent the estimated cumulative impact of coupons redeemed in connection with a legal claim alleging that the Company violated California’s Song-Beverly Credit Card Act of 1971 by requesting and recording ZIP codes from customers paying with credit cards. |
||
[b] | Under GAAP, certain convertible debt instruments that may be settled in cash on conversion are required to be separately accounted for as liability and equity components of the instrument in a manner that reflects the issuer’s non-convertible debt borrowing rate. Accordingly, in accounting for GAAP purposes for the $350 million aggregate principal amount of convertible senior notes that were issued in June 2014 (the “2019 Notes”) and for the $300 million aggregate principal amount of convertible senior notes that were issued in June and July 2015 (the “2020 Notes”), we separated the 2019 Notes and 2020 Notes into liability (debt) and equity (conversion option) components and we are amortizing as debt discount an amount equal to the fair value of the equity components as interest expense on the 2019 Notes and 2020 Notes over their respective terms. The equity components represent the difference between the proceeds from the issuance of the 2019 Notes and 2020 Notes and the fair value of the liability components of the 2019 Notes and 2020 Notes, respectively. Amounts are presented net of interest capitalized for capital projects of $0.6 million and $0.5 million during the three months ended April 30, 2016 and May 2, 2015, respectively. | ||
[c] | Represents costs incurred in connection with our acquisition of Waterworks including professional fees. | ||
[d] | Represents costs associated with a reorganization, which include severance and related taxes. | ||
[e] | The adjustments for the three months ended April 30, 2016 and May 2, 2015 represent the tax effect of the adjusted items based on our effective tax rates of 38.8% and 37.1%, respectively. | ||
[f] | Adjusted net income (loss) is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. We define adjusted net income (loss) as net income (loss), adjusted for the impact of certain non-recurring and other items that we do not consider representative of our ongoing operating performance. Adjusted net income (loss) is included in this press release because management believes that adjusted net income (loss) provides meaningful supplemental information for investors regarding the performance of our business and facilitates a meaningful evaluation of operating results on a comparable basis with historical results. Our management uses this non-GAAP financial measure in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. | ||
RESTORATION HARDWARE HOLDINGS, INC. | ||||||||||
RECONCILIATION OF NET INCOME (LOSS) TO OPERATING INCOME (LOSS) |
||||||||||
AND ADJUSTED OPERATING INCOME | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | ||||||||||
April 30, | May 2, | |||||||||
2016 | 2015 | |||||||||
Net income (loss) | $ | (13,470 | ) | $ | 7,156 | |||||
Interest expense—net | 10,528 | 5,649 | ||||||||
Income tax expense (benefit) | (8,533 | ) | 4,224 | |||||||
Operating income (loss) | (11,475 | ) | 17,029 | |||||||
Legal claim [a] |
8,701 | 1,568 | ||||||||
Acquisition related costs [a] |
2,069 | — | ||||||||
Reorganization related costs [a] |
1,415 | — | ||||||||
Adjusted operating income | $ | 710 | $ | 18,597 | ||||||
Net revenues | $ | 455,456 | $ | 422,445 | ||||||
Operating margin [b] | -2.5 | % | 4.0 | % | ||||||
Adjusted operating margin [b] | 0.2 | % | 4.4 | % | ||||||
[a] | Refer to table titled “Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (Loss)” and the related footnotes for additional information. | ||
[b] | Operating margin is defined as operating income (loss) divided by net revenues. Adjusted operating margin is defined as adjusted operating income divided by net revenues. | ||
RESTORATION HARDWARE HOLDINGS, INC. | |||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
(In thousands, except share and per share amounts) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
April 30, | % of Net | May 2, | % of Net | ||||||||||||||
2016 | Revenues | 2015 | Revenues | ||||||||||||||
Net revenues | $ | 455,456 | 100.0 | % | $ | 422,445 | 100.0 | % | |||||||||
Cost of goods sold | 327,981 | 72.0 | % | 279,027 | 66.1 | % | |||||||||||
Gross profit | 127,475 | 28.0 | % | 143,418 | 33.9 | % | |||||||||||
Selling, general and administrative expenses |
138,950 | 30.5 | % | 126,389 | 29.9 | % | |||||||||||
Income (loss) from operations | (11,475 | ) | -2.5 | % | 17,029 | 4.0 | % | ||||||||||
Interest expense—net | 10,528 | 2.3 | % | 5,649 | 1.3 | % | |||||||||||
Income (loss) before income taxes | (22,003 | ) | -4.8 | % | 11,380 | 2.7 | % | ||||||||||
Income tax expense (benefit) | (8,533 | ) | -1.8 | % | 4,224 | 1.0 | % | ||||||||||
Net income (loss) | $ | (13,470 | ) | -3.0 | % | $ | 7,156 | 1.7 | % | ||||||||
Weighted-average shares used in computing basic net income (loss) per share |
40,588,081 | 39,913,946 | |||||||||||||||
Basic net income (loss) per share | $ | (0.33 | ) | $ | 0.18 | ||||||||||||
Weighted-average shares used in computing diluted net income (loss) per share |
40,588,081 | 41,959,718 | |||||||||||||||
Diluted net income (loss) per share | $ | (0.33 | ) | $ | 0.17 | ||||||||||||
RESTORATION HARDWARE HOLDINGS, INC. | ||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
April 30, | January 30, | May 2, | ||||||||||
2016 |
|
2016 | 2015 | |||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 237,156 | $ | 349,897 | $ | 103,767 | ||||||
Short-term investments | 100,095 | 130,801 | 75,507 | |||||||||
Merchandise inventories | 763,055 | 725,392 | 601,739 | |||||||||
Other current assets | 144,129 | 107,587 | 125,434 | |||||||||
Total current assets | 1,244,435 | 1,313,677 | 906,447 | |||||||||
Long-term investments | 10,859 | 22,054 | 9,277 | |||||||||
Property and equipment—net | 558,431 | 515,605 | 458,113 | |||||||||
Goodwill and intangible assets | 173,005 | 172,837 | 173,018 | |||||||||
Other non-current assets | 64,278 | 62,201 | 54,769 | |||||||||
Total assets | $ | 2,051,008 | $ | 2,086,374 | $ | 1,601,624 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Liabilities | ||||||||||||
Accounts payable and accrued expenses | $ | 248,971 | $ | 280,714 | $ | 240,422 | ||||||
Other current liabilities | 157,966 | 171,841 | 112,515 | |||||||||
Total current liabilities | 406,937 | 452,555 | 352,937 | |||||||||
Convertible senior notes due 2019—net | 301,311 | 297,703 | 287,121 | |||||||||
Convertible senior notes due 2020—net |
223,895 |
220,000 | — | |||||||||
Financing obligations under build-to-suit lease transactions | 154,953 | 146,621 | 172,174 | |||||||||
Other non-current obligations | 84,384 | 83,335 | 70,883 | |||||||||
Total liabilities | 1,171,480 | 1,200,214 | 883,115 | |||||||||
Stockholders’ equity | 879,528 | 886,160 | 718,509 | |||||||||
Total liabilities and stockholders’ equity | $ | 2,051,008 | $ | 2,086,374 | $ | 1,601,624 | ||||||
RESTORATION HARDWARE HOLDINGS, INC. |
||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | ||||||||||
April 30, | May 2, | |||||||||
2016 | 2015 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
Net income (loss) | $ | (13,470 | ) | $ | 7,156 | |||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
||||||||||
Depreciation and amortization | 12,554 | 9,979 | ||||||||
Other non-cash items |
12,257 |
8,010 |
|
|||||||
Change in assets and liabilities: | ||||||||||
Merchandise inventories | (37,228 | ) | (42,253 | ) | ||||||
Accounts payable, accrued expenses and other | (80,405 | ) | 2,729 | |||||||
Net cash used in operating activities | (106,292 | ) | (14,379 | ) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
Capital expenditures—including construction related deposits and purchase of trademarks and domain names |
(48,991 |
) | (29,227 | ) | ||||||
Net proceeds (purchases) of investments | 41,660 | (4,471 | ) | |||||||
Net cash used in investing activities | (7,331 | ) | (33,698 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
Payments on capital leases | (85 | ) | (83 | ) | ||||||
Net proceeds from equity related transactions |
79 |
2,920 |
||||||||
Net cash provided by (used in) financing activities | (6 | ) | 2,837 | |||||||
Effects of foreign currency exchange rate translation | 888 | 73 | ||||||||
Net decrease in cash and cash equivalents | (112,741 | ) | (45,167 | ) | ||||||
Cash and cash equivalents | ||||||||||
Beginning of period | 349,897 | 148,934 | ||||||||
End of period | $ | 237,156 | $ | 103,767 | ||||||
RESTORATION HARDWARE HOLDINGS, INC. | ||||||||||
CALCULATION OF FREE CASH FLOW | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | ||||||||||
April 30, | May 2, | |||||||||
|
2016 | 2015 | ||||||||
Net cash used in operating activities | $ | (106,292 | ) | $ | (14,379 | ) | ||||
Capital expenditures—including construction related deposits and purchase of trademarks and domain names |
(48,991 |
) |
(29,227 |
) |
||||||
Payments on capital leases | (85 | ) | (83 | ) | ||||||
Free cash flow [a] | $ | (155,368 | ) | $ | (43,689 | ) | ||||
[a] | Free cash flow is calculated as net cash used in operating activities less capital expenditures, construction related deposits, purchase of trademarks and domain names, and payments on capital leases. Free cash flow excludes all non-cash items, such as the non-cash additions of property and equipment due to build-to-suit lease transactions. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160608006426/en/
Source:
Restoration Hardware Holdings, Inc.
Cammeron McLaughlin, 415-945-4998
SVP, Investor Relations and Strategy
cmclaughlin@rh.com