CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Tables)

3 Months Ended

Apr. 30, 2016

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Schedule of Condensed Consolidated Balance Sheets

Michaels Stores, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

	April 30,		January 30,		May 2,
ASSETS	2016		2016		2015
Current assets:
Cash and equivalents	$	167,126	$	404,650	$	267,831
Merchandise inventories		1,057,642		1,002,607		985,376
Prepaid expenses and other current assets		108,631		87,573		83,611
Total current assets		1,333,399		1,494,830		1,336,818
Property and equipment, net		402,762		378,507		387,890
Goodwill		119,074		94,290		94,290
Other assets		77,292		56,004		59,655
Total assets	$	1,932,527	$	2,023,631	$	1,878,653
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	373,492	$	457,704	$	367,587
Accrued liabilities and other		350,183		375,992		324,437
Current portion of long-term debt		24,900		24,900		24,900
Other current liabilities		81,956		89,996		40,511
Total current liabilities		830,531		948,592		757,435
Long-term debt		2,740,064		2,744,942		2,906,833
Other liabilities		93,198		95,400		93,410
Total stockholders’ deficit		(1,731,266)		(1,765,303)		(1,879,025)
Total liabilities and stockholders’ deficit	$	1,932,527	$	2,023,631	$	1,878,653

Schedule of Condensed Consolidated Statements of Comprehensive Income

Michaels Stores, Inc.

Condensed Consolidated Statements of Comprehensive Income

(in thousands)

	13 Weeks Ended
	April 30,		May 2,
	2016		2015
Net sales	$	1,158,880	$	1,077,600
Cost of sales and occupancy expense		694,129		635,803
Gross profit		464,751		441,797
Selling, general and administrative		317,265		295,349
Other operating expense		1,626		2,244
Operating income		145,860		144,204
Interest and other expense		32,670		34,352
Income before income taxes		113,190		109,852
Provision for income taxes		42,092		40,671
Net income	$	71,098	$	69,181
Other comprehensive income, net of tax:
Foreign currency translation adjustment and other		14,209		4,316
Comprehensive income	$	85,307	$	73,497

Schedule of Condensed Consolidated Statements of Cash Flows

Michaels Stores, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

	13 Weeks Ended
	April 30,		May 2,
	2016		2015
Cash flows from operating activities:
Net cash used in operating activities	$	(17,149)	$	(75,507)
Cash flows from investing activities:
Additions to property and equipment		(14,664)		(34,964)
Acquisition of Lamrite West, net of cash acquired		(144,600)		—
Net cash used in investing activities		(159,264)		(34,964)
Cash flows from financing activities:
Net repayments of debt		(6,225)		(6,225)
Payment of dividend to Michaels Funding, Inc.		(59,348)		—
Other financing costs		4,462		10,968
Net cash (used in) provided by financing activities		(61,111)		4,743
Net change in cash and equivalents		(237,524)		(105,728)
Cash and equivalents at beginning of period		404,650		373,559
Cash and equivalents at end of period	$	167,126	$	267,831