EX-99.2 3 c92677exv99w2.htm RECONCILIATION TABLE OF NON-GAAP NUMBERS exv99w2
 

Exhibit 99.2

Wilsons The Leather Experts Inc. and Subsidiaries
Supplemental Information - Consolidated Statement of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)

Reconciliation of GAAP Consolidated Statement of Operations to Adjusted Statement of Operations:

                         
    For the quarter ended     Restructuring     For the quarter ended  
    January 29,     And Other     January 29,  
    2005 - As Reported (2)     Charges (1)     2005 - Adjusted  
Net sales
   $ 200,067     $ —     $ 200,067  
Cost of goods sold, buying and occupancy costs
     116,590       (55 )     116,645  
 
                  
Gross margin
     83,477       55       83,422  
Selling, general and administrative expenses
     38,634       2,315       36,319  
Depreciation and amortization
     3,708       —       3,708  
 
                  
Operating income
     41,135       (2,260 )     43,395  
Interest expense, net
     1,345       —       1,345  
 
                  
Income from continuing operations before income taxes
     39,790       (2,260 )     42,050  
Income tax benefit
     (2,183 )     —       (2,183 )
 
                  
Income from continuing operations
     41,973       (2,260 )     44,233  
Income from discontinued operations, net of tax
     173       —       173  
 
                  
Net Income
   $ 42,146     $ (2,260 )   $ 44,406  
 
                  
 
                        
Basic earnings per share:
                        
Income from continuing operations
   $ 1.08     $ (0.06 )   $ 1.14  
 
                  
Income from discontinued operations
   $ —     $ —     $ —  
 
                  
Basic earnings per share
   $ 1.08     $ (0.06 )   $ 1.14  
 
                  
 
                        
Basic weighted average shares outstanding
     38,872       —       38,872  
 
                  
 
                        
Diluted earnings per share:
                        
Income from continuing operations
   $ 1.05     $ (0.06 )   $ 1.11  
 
                  
Income from discontinued operations
   $ —     $ —     $ —  
 
                  
Diluted earnings per share
   $ 1.05     $ (0.06 )   $ 1.11  
 
                  
 
                        
Weighted average shares outstanding - diluted
     40,159       —       40,159  
 
                  

(1)   Includes $2.3 million related to performance bonuses related to former officers of the Company, retention bonuses and the remainder of the lease termination costs.
     
(2)   Preliminary – subject to change.

 

 

Wilsons The Leather Experts Inc. and Subsidiaries
Supplemental Information - Consolidated Statement of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)

Reconciliation of GAAP Consolidated Statement of Operations to Adjusted Statement of Operations:

                         
    For the year ended     Restructuring     For the year ended  
    January 29,     And Other     January 29,  
    2005 - As Reported (2)     Charges (1)     2005 - Adjusted  
Net sales
   $ 441,071     $ 20,778     $ 420,293  
Cost of goods sold, buying and occupancy costs
     304,257       19,439       284,818  
 
                  
Gross margin
     136,814       1,339       135,475  
Selling, general and administrative expenses
     129,240       17,442       111,798  
Depreciation and amortization
     26,086       11,285       14,801  
 
                  
Operating income
     (18,512 )     (27,388 )     8,876  
Interest expense, net
     7,427       —       7,427  
 
                  
Income(loss) from continuing operations before income taxes
     (25,939 )     (27,388 )     1,449  
Income tax benefit
     (2,183 )     —       (2,183 )
 
                  
Income(loss) from continuing operations
     (23,756 )     (27,388 )     3,632  
Income from discontinued operations, net of tax
     173       —       173  
 
                  
Net Income(loss)
   $ (23,583 )   $ (27,388 )   $ 3,805  
 
                  
 
                        
Basic earnings per share:
                        
Income(loss) from continuing operations
   $ (0.76 )   $ (0.87 )   $ 0.11  
 
                  
Income(loss) from discontinued operations
   $ 0.01     $ —     $ 0.01  
 
                  
Basic earnings(loss) per share
   $ (0.75 )   $ (0.87 )   $ 0.12  
 
                  
 
                        
Basic weighted average shares outstanding
     31,275       —       31,275  
 
                  
 
                        
Diluted earnings per share:
                        
Income(loss) from continuing operations
   $ (0.74 )   $ (0.85 )   $ 0.11  
 
                  
Income(loss) from discontinued operations
   $ 0.01     $ —     $ 0.01  
 
                  
Diluted earnings(loss) per share
   $ (0.74 )   $ (0.85 )   $ 0.12  
 
                  
 
                        
Weighted average shares outstanding - diluted
     32,057       —       32,057  
 
                  

(1)   Includes $27.4 million related to the transfer of inventory to an independent liquidator in conjunction with the closing of approximately 111 stores, accelerated depreciation, fixed asset write-offs, lease termination costs related to store closings, severance, and other restructuring charges
     
(2)   Preliminary – subject to change.

 

Wilsons The Leather Experts Inc. and Subsidiaries
Supplemental Information - Consolidated Statement of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)

Reconciliation of GAAP Consolidated Statement of Operations to Adjusted Statement of Operations:

                         
    For the quarter ended     Restructuring     For the quarter ended  
    January 31,     And Other     January 31,  
    2004 - As Reported (2)     Charges (1)     2004 - Adjusted  
Net sales
   $ 268,094     $ 3,290     $ 264,804  
Cost of goods sold, buying and occupancy costs
     168,070       7,172       160,898  
 
                  
Gross margin
     100,024       (3,882 )     103,906  
Selling, general and administrative expenses
     50,309       2,805       47,504  
Depreciation and amortization
     6,675       1,912       4,763  
 
                  
Operating income
     43,040       (8,599 )     51,639  
Interest expense, net
     3,237       —       3,237  
 
                  
Income from continuing operations before income taxes
     39,803       (8,599 )     48,402  
Income tax provision
     27,431       —       27,431  
 
                  
Income from continuing operations
     12,372       (8,599 )     20,971  
 
                  
Net Income
   $ 12,372     $ (8,599 )   $ 20,971  
 
                  
 
                        
Basic earnings per share:
                        
Income from continuing operations
   $ 0.60     $ (0.42 )   $ 1.02  
 
                  
Basic earnings per share
   $ 0.60     $ (0.42 )   $ 1.02  
 
                  
 
                        
Weighted average shares outstanding - basic
     20,641       —       20,641  
 
                  
 
                        
Diluted earnings per share:
                        
Income from continuing operations
   $ 0.60     $ (0.41 )   $ 1.01  
 
                  
Diluted earnings per share
   $ 0.60     $ (0.41 )   $ 1.01  
 
                  
 
                        
Weighted average shares outstanding - diluted
     20,776       —       20,776  
 
                  

(1)   Includes $8.6 million related to the transfer of inventory to an independent liquidator in conjunction with the expected closing of approximately 111 stores, severance related to staff reductions; accelerated depreciation related to store closings; a loss on disposal of assets associated with the closing of the Las Vegas distribution center, and other miscellaneous charges.
     
(2)   Preliminary – subject to change.

 

 

Wilsons The Leather Experts Inc. and Subsidiaries
Supplemental Information - Consolidated Statement of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)

Reconciliation of GAAP Consolidated Statement of Operations to Adjusted Statement of Operations

                         
    For the year ended     Restructuring     For the year ended  
    January 31,     And Other     January 31,  
    2004 - As Reported (2)     Charges (1)     2004 - Adjusted  
Net sales
   $ 521,025     $ 3,290     $ 517,735  
Cost of goods sold, buying and occupancy costs
     377,060       7,172       369,888  
 
                  
Gross margin
     143,965       (3,882 )     147,847  
Selling, general and administrative expenses
     150,678       2,805       147,873  
Depreciation and amortization
     19,207       1,912       17,295  
 
                  
Operating loss
     (25,920 )     (8,599 )     (17,321 )
Interest expense, net
     10,868       —       10,868  
 
                  
Loss from continuing operations before income taxes
     (36,788 )     (8,599 )     (28,189 )
Income tax benefit
     (3,205 )     —       (3,205 )
 
                  
Loss from continuing operations
     (33,583 )     (8,599 )     (24,984 )
 
                  
Net Loss
   $ (33,583 )   $ (8,599 )   $ (24,984 )
 
                  
 
                        
Basic and diluted loss per share:
                        
Loss from continuing operations
   $ (1.64 )   $ (0.42 )   $ (1.22 )
 
                  
Basic loss per share
   $ (1.64 )   $ (0.42 )   $ (1.22 )
 
                  
 
                        
Weighted average shares outstanding - basic and diluted
     20,528       —       20,528  
 
                  

(1)   Includes $8.6 million related to the transfer of inventory to an independent liquidator in conjunction with the expected closing of approximately 111 stores, severance related to staff reductions; accelerated depreciation related to store closings; a loss on disposal of assets associated with the closing of the Las Vegas distribution center, and other miscellaneous charges.
     
(2)   Preliminary – subject to change.