The Michaels Companies Announces Fourth Quarter and Full Year Fiscal 2020 Results

IRVING, Texas , March 04 /Businesswire/ - The Michaels Companies, Inc. (NASDAQ: MIK) today announced financial results for the fourth quarter and full year fiscal 2020 ended January 30, 2021.

Key Financial Results:

¹ See additional information in this release for a reconciliation of non-GAAP financial measures to the respective GAAP measures.

Conference Call

Given the recently announced agreement for Michaels to be acquired by funds affiliated with Apollo Global Management, the Company will not be hosting a conference call to discuss its financial results.

Non-GAAP Information

This press release includes non-GAAP measures including adjusted operating income, adjusted net income, adjusted diluted earnings per share, EBITDA and adjusted EBITDA. The Company has reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures in a table accompanying this release. The Company believes that these non-GAAP financial measures not only provide its management with comparable financial data for internal financial analysis but also provide meaningful supplemental information to investors. Specifically, these non-GAAP financial measures allow investors to better understand the performance of the Company's business and facilitate a meaningful evaluation of its quarterly and fiscal 2020 results on a comparable basis with its quarterly and fiscal 2019 results.

The Company has provided this information as a means to evaluate the results of its ongoing operations. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP. The Company's presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. Other companies in the Company's industry may calculate these items differently than it does.

IMPORTANT INFORMATION

The tender offer for the outstanding shares of The Michaels Companies, Inc. (“Michaels”) common stock has not yet commenced. This communication is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell shares of Michaels common stock. The solicitation and offer to buy shares of Michaels common stock will only be made pursuant to the tender offer materials that Magic MergeCo, Inc. (“Merger Sub”) intends to file with the U.S. Securities and Exchange Commission (the “SEC”). Merger Sub is beneficially owned by certain equity funds managed by Apollo Management IX, L.P. At the time the tender offer is commenced, Merger Sub will file a tender offer statement on Schedule TO with the SEC, and Michaels will file a solicitation/recommendation statement on Schedule 14D-9 with respect to the tender offer. MICHAELS’ STOCKHOLDERS ARE ADVISED TO READ THE SCHEDULE TO (INCLUDING AN OFFER TO PURCHASE, A RELATED LETTER OF TRANSMITTAL AND OTHER OFFER DOCUMENTS) AND THE SCHEDULE 14D-9, AS EACH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BEFORE THEY MAKE ANY DECISION WITH RESPECT TO THE TENDER OFFER BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES THERETO. Both the tender offer statement and the solicitation/recommendation statement will be mailed to Michaels’ stockholders free of charge. Investors and stockholders may obtain free copies of the Schedule TO and Schedule 14D-9, as each may be amended or supplemented from time to time, and other documents filed by the parties (when available) at the SEC’s web site at www.sec.gov, by contacting Michaels’ Investor Relations either by telephone at 972-409-1393, e-mail at james.mathias@Michaels.com or on Michaels’ website at www.Michaels.com.

About The Michaels Companies, Inc.:

The Michaels Companies, Inc. is North America's largest specialty provider of arts, crafts, framing, floral, wall décor, and seasonal merchandise for Makers and do-it-yourself home decorators. The Company operates more than 1,250 Michaels stores in 49 states and Canada. Additionally, the Company serves customers through digital platforms including Michaels.com and Canada.michaels.com. The Michaels Companies, Inc., also owns Artistree, a manufacturer of high-quality custom and specialty framing merchandise. For a list of store locations or to shop online, visit www.michaels.com or download the Michaels app.

The Michaels Companies, Inc.
Consolidated Statements of Comprehensive Income
(Unaudited)
	13 Weeks Ended								52 Weeks Ended
	January 30,				February 1,				January 30,				February 1,
(in thousands, except per share data)	2021				2020				2021				2020
Net sales	$	1,916,842			$	1,722,608			$	5,271,112			$	5,072,037
Cost of sales and occupancy expense		1,106,815				1,076,610				3,315,035				3,199,780
Gross profit		810,027				645,998				1,956,077				1,872,257
Selling, general and administrative		447,032				370,803				1,390,620				1,304,280
Restructure and impairment charges		19,447				—				28,835				48,332
Store pre-opening costs		1,554				238				3,082				4,608
Operating income		341,994				274,957				533,540				515,037
Interest expense		40,209				37,816				152,442				154,090
Losses on early extinguishments of debt and refinancing costs		—				—				22,044				1,316
Other (income) expense, net		(124	)			(1,671	)			(1,550	)			1,260
Income before income taxes		301,909				238,812				360,604				358,371
Income taxes		46,834				57,161				65,669				85,776
Net income	$	255,075			$	181,651			$	294,935			$	272,595
Other comprehensive income, net of tax:
Foreign currency and cash flow hedges		10,853				85				9,387				(8,273	)
Comprehensive income	$	265,928			$	181,736			$	304,322			$	264,322
Earnings per common share:
Basic	$	1.76			$	1.24			$	2.01			$	1.78
Diluted	$	1.72			$	1.24			$	1.98			$	1.78
Weighted-average common shares outstanding:
Basic		144,598				146,638				146,541				153,134
Diluted		147,844				146,701				148,531				153,202
The following table sets forth the percentage relationship to net sales of each line item of our unaudited consolidated statements of comprehensive income:
		13 Weeks Ended								52 Weeks Ended
		January 30,				February 1,				January 30,				February 1,
		2021				2020				2021				2020
Net sales		100.0	%			100.0	%			100.0	%			100.0	%
Cost of sales and occupancy expense		57.7				62.5				62.9				63.1
Gross profit		42.3			STORY TAGS: Home Goods, Other Retail, Other Manufacturing, Specialty, Consumer, Other Consumer, Manufacturing, Retail, Webcast, Conference Call, Earnings, Texas, United States, North America, Back to top | Back to home page LIVE VIDEO EVERY SATURDAY Rev. Al Sharpton 9 to 11 am EST Rev. Jesse Jackson 10 to noon CST LIVE BROADCASTS Sounds Make the News ® Atlanta - WAOK-Urban Berkley / San Francisco - KPFA-Progressive Chicago - WVON-Urban Los Angeles - KJLH - Urban New York - WKDM-Mandarin Chinese New York - WADO-Spanish New York - WBAI - Progressive Washington - WOL-Urban To Reach Us Email: news@blackradionetwork.com news@minoritynews.net news@minoritynewsservice.com Address: Black Radio Network 375 Fifth Avenue New York, NY 10016 Phone Numbers: Ph # (212) 686-6850 Fx # (212) 686-7308 Advertiser Inquiries Welcomed © 2024 Black Radio Network, Inc. All rights reserved. About | Privacy Policy | Terms of Use | Archive