Fourth Quarter Highlights:
Cherokee Global Brands (NASDAQ:CHKE), a global brand marketing
platform that manages a growing portfolio of fashion and lifestyle
brands, today reported financial results for its fourth quarter and
fiscal year ended February 3, 2018.
Non-GAAP Financial MeasuresThis press release
includes non-GAAP financial measures as that term is defined in
Regulation G. Reconciliations of amounts on a GAAP basis to
amounts on a non-GAAP basis are presented in tabular form later in
this release under the heading “Reconciliation of GAAP to Non-GAAP
Financial Data.”
CEO Commentary “2018 was a difficult year as we
continued transitioning our namesake brand from our legacy partner
and admittedly under-estimated the challenges of integrating
Hi-Tec, a vast global operating business, into our historical
licensing model,” said Henry Stupp, chief executive officer. “We
are fortunate that our brands and portfolio and our team are poised
to achieve meaningful future progress and profitability for
Cherokee Global Brands. We took actions to shore up our financial
controls this past year and strengthen our brand portfolio.
Importantly, we successfully converted our Hi-Tec indirect sales
business to a fully licensed model, and while doing so, we
restructured our Hi-Tec operations. This resulted in a 60%
reduction in headcount and a significantly improved cost structure.
We will continue to evaluate the costs associated with our
infrastructure as we focus our efforts on revenue
growth.”
“We expect to generate meaningful new royalty streams beginning
in fiscal 2019,” added Stupp. “Most notably, we’re pleased to
announce our partnership with Lidl, a global discount supermarket
chain, for the distribution of our namesake Cherokee brand in over
10,000 Lidl locations across Europe and Scandinavia. Our
initial launch is set for Fall 2018 and will include our full
assortment of men’s, women’s and children’s fall and winter
apparel, footwear and accessories. In collaboration with
Lidl’s own brands, we look forward to bringing Cherokee’s iconic
styles, offered at great value to Lidl’s customers.”Mr. Stupp
noted, “We are making progress to a future where Cherokee Global
Brands is more diversified than ever before – across brands,
geographies, categories and channel partners. Today, more
than 50% of our licensing revenues are generated outside of the
United States with best-in-class licensees, franchisees, retail
partners and distributors. Our licensees supply a broad
assortment of products from our brand portfolio to the rapidly
growing e-commerce retail platform.”
Brand Developments
Cherokee Cherokee brand revenues for the fourth
quarter were $2.4 million, a decrease of $2.2 million from the
fourth quarter in the prior year. Cherokee brand revenues for
fiscal 2018 were $11.1 million compared to $23.0 million in the
prior year. For both the fourth quarter and fiscal 2018 the
year-over-year declines reflect the transition of Cherokee brand’s
U.S. business from a direct-to-retail model, or “DTR”, to a
wholesale model. Through fiscal 2017, the Company earned
substantial royalties from its primary DTR license with Target
Corporation in the U.S. Beginning with fiscal 2018, the
Company has been transitioning from this DTR license to a wholesale
model whereby the Company now has license agreements with multiple
manufacturers and wholesalers who sell a broad assortment of
Cherokee branded products to various retailers, including all major
ecommerce platforms in the U.S. The Company believes its licensees
are experts in the category of products they manufacture under the
Cherokee brand, and that royalty revenues from these licensees will
grow over time.
The Company also announced today its partnership with Lidl, a
German global discount supermarket chain, to launch a broad
family-assortment of Cherokee lifestyle products in Lidl stores
throughout Western Europe and Scandinavia. Cherokee’s family
fashion assortment launch will be one of its most comprehensive
yet, offering a full assortment of men’s, women’s and children’s
fall and winter apparel, footwear and accessories categories.
Cherokee’s debut at Lidl in Fall 2018 will be accompanied by a
fully integrated marketing campaign, which will include in-store
branded signage, social and digital media, and consumer-focused
promotions.
Tony HawkTony Hawk brand revenues for the
fourth quarter were $1.4 million, which was consistent with $1.4
million in the fourth quarter of the prior year. Tony Hawk
brand revenues for fiscal 2018 were $5.5 million compared to $5.1
million in the prior year.
Hi-Tec Indirect Sales and Conversion to Royalty
ModelEffective January 2018, the Company completed the
conversion of its Hi-Tec indirect sales to a licensed royalty
model, with the International Brand Group assuming the legacy
Hi-Tec distribution business in Latin America, Asia Pacific and
Eastern Europe. In the past, the Company sold product
to distributors in certain territories and reported indirect
sales and cost of goods sold. Going forward, these
territories are now licensed to International Brand Group who has
taken over the related sales and distribution operations, and as
the brand owner, the Company will earn royalties from these sales.
The indirect sales and associated cost of goods sold previously
reflected in the Company’s P&L are now classified as
“discontinued operations”. As part of this transition, the
Company completed a restructuring of its Hi-Tec operations,
resulting in a 60% reduction in headcount and a significantly
reduced cost structure.
Hi-Tec brand revenues for the fourth quarter were $2.7 million
compared to $1.2 million in the fourth quarter of the prior year,
which reflected only a partial quarter of revenue contribution from
the Company’s December 2017 acquisition of Hi-Tec. Revenues
for the current and prior year period are only comprised of royalty
revenues. Previously reported indirect sales have been
reclassified as discontinued operations. Hi-Tec brand royalty
revenues for fiscal 2018 were $9.7 million.
Flip Flop Shops and Other BrandsFlip Flop Shops
and other brand revenues for the fourth quarter were $0.4 million,
compared to $1.2 million in the fourth quarter of the prior year.
Flip Flop Shops and other brand revenues for fiscal 2018 were $3.1
million compared to $4.7 million in the prior year. The Company is
finalizing a shop-in-shop program with a national retailer that is
set to launch this Summer.
Trademark Impairments In the fourth
quarter of fiscal 2018, the Company conducted the annual evaluation
of its goodwill and indefinite lived trademarks as required under
accounting standards. It was determined that the indefinite lived
trademarks related to four of its brands were impaired, and as a
result, the Company recognized an impairment charge of $35.5
million related to its Tony Hawk, Liz Lange, Flip Flop Shops and
Everyday California trademarks. These impairment charges were the
outcome of significant changes to the Company’s cash flow
projections based on recent experience, which resulted in reduced
estimates of fair value. In conjunction with these impairment
assessments, the Company concluded that the competitive and
economic environment for the use of these trademarks no longer
supported indefinite useful lives. Accordingly, these trademarks
will be amortized prospectively over their estimated remaining
useful lives.
Operating ExpensesSelling, general and
administrative expenses for the fourth quarter, which comprise the
Company’s normal operating expenses, were $6.9 million,
compared to $5.7 million in the fourth quarter of the
prior year. Selling, general and administrative expenses
were $25.4 million for fiscal 2018, compared to $19.1
million in the prior year. Hi-Tec is included in the Company’s
results for the full year of fiscal 2018 compared to only a partial
quarter in fiscal 2017, which is the primary driver of the
year-over-year increase in operating expenses.
The Company incurred restructuring charges of $2.0 million in
the fourth quarter of fiscal 2018 as it completed the conversion of
Hi-Tec to a fully licensed model and took steps to align its
staffing to appropriately support its current operations.
Business acquisition and integration costs related to the
integration of the Hi-Tec acquisition totaled $2.2 million in the
fourth quarter of fiscal 2018. The Company expects business
acquisition and integration costs in fiscal 2019 to be
significantly less. In addition, the Company incurred non-cash
stock warrant charges related to its debt refinancings, which
totaled $1.3 million in fiscal 2018.
Net Loss and Adjusted EBITDAThe Company’s net
loss for the fourth quarter was $45.6 million, or $3.26 per
share on a diluted basis with 14.0 million average shares
outstanding, reflecting the $35.5 million impairment charge
described above. Net loss in the fourth quarter of the prior
year was $11.1 million, or $0.96 per share on a diluted
basis with 11.5 million average shares outstanding.
Net loss for fiscal 2018 was $56.0 million, or $4.17 per share
on a diluted basis with 13.4 million average shares outstanding,
compared to a net loss in fiscal 2017 of $7.9 million, or $0.84 per
share on a diluted basis with 9.4 million average shares
outstanding.
After adding back the non-cash charges and the business
acquisition and integration costs, fiscal 2018 Adjusted EBITDA was
$3.9 million compared to Adjusted EBITDA of $14.9 million in the
prior year. This decrease was primarily due to the Company’s
transition from its previous DTR license agreement with Target
Corporation to a wholesale model, which began contributing to
royalty revenues at the beginning of fiscal 2018 and is expected to
grow as Cherokee branded products begin to gain traction with new
retailers and their customers.
Balance SheetAt February 3, 2018, the Company
had cash and cash equivalents of $3.2 million and $49.5 million of
debt.
Going ConcernBased on the Company’s current
forecasts, management anticipates that it will violate the
liquidity covenant in its credit agreement within the next twelve
months, which raises substantial doubt about the ability of
Cherokee to continue as a going concern. The Company has
disclosed this information in its audited financial statements and
has classified its debt obligations as current liabilities as of
February 3, 2018. Please refer to Note 1 of the Company's
consolidated financial statements for the year ended February 3,
2018 for more information.
The Company is in the process of negotiating with its lender to
amend its credit agreement and give the Company incremental
liquidity, either through an increase in its borrowing capacity, or
through additional liquidity from another lender. The Company
expects these discussions to result in an acceptable amendment.
As a result of the Company’s projections, the Company's
independent registered public accounting firm has included an
explanatory paragraph in its audit opinion related to the Company's
fiscal 2018 financial statements, which indicates that there is
substantial doubt about the Company's ability to continue as a
going concern. Such paragraph in the independent auditor’s report
causes the Company to fail to comply with the affirmative covenants
of its credit facility with Cerberus, and as a result of such
failure to comply, Cerberus has the right to terminate its
obligations under the credit facility, declare all or any portion
of the borrowed amounts then outstanding to be accelerated and due
and payable, and/or exercise any other rights or remedies it may
have under applicable law, including foreclosing on the Company’s
and/or its subsidiaries assets that serve as collateral for the
borrowed amounts.
Notwithstanding the foregoing, the Company's financial
statements have been prepared on a going concern basis, meaning
that the Company will be able to realize its assets and discharge
its liabilities in the normal course of business. The financial
statements do not reflect adjustments that would be necessary if
the going concern assumption was not appropriate. If the going
concern assumption was not appropriate for these financial
statements, adjustments to the carrying value of the assets and
liabilities, reported expenses and statement of financial position
classifications would be necessary. Such adjustments could be
material.
Fiscal 2019 Outlook Cherokee Global
Brands is updating its guidance for its fiscal year
ending February 2, 2019, which accounts for the transition of
Hi-Tec’s indirect sales to a licensing model.
- Revenues are anticipated to range from $29.0 to $31.0
million
- Adjusted EBITDA is anticipated to range from $8.0 to $10.0
million
- SG&A run rate is expected to approximate $21.0
million
Conference CallThe Company will host a
conference call today at 1:30 p.m. PT / 4:30 p.m. ET. To
participate in the call, please dial (877) 407-0784 (U.S.) or (201)
689-8560 (international). The earnings call will also be broadcast
over the Internet and can be accessed on the Investor Relations
section of the Company’s website at
http://www.cherokeeglobalbrands.com.
For those unable to participate during the live broadcast, a
replay will be available through Thursday, April 26, 2018, at 8:59
p.m. PT / 11:59 p.m. ET. To access the replay, dial (844)
512-2921 (U.S.) or (412) 317-6671 (international) and use
conference ID: 13677858.
About Cherokee Inc. Cherokee is a global
brand marketing platform that manages a growing portfolio of
fashion and lifestyle brands including Cherokee®, Carole Little®,
Tony Hawk® Signature Apparel and Hawk Brands®, Liz Lange®, Everyday
California®, Sideout®, Hi-Tec®, Magnum®, 50 Peaks®, Interceptor®
and Flip Flop Shops®, a franchise retail chain, across multiple
consumer product categories and retail tiers around the world. The
Company currently maintains license and franchise agreements with
leading retailers and manufacturers that span approximately 80
countries and approximately 20,000 retail doors plus ecommerce.
Safe Harbor Statement This news release
may contain forward-looking statements regarding future events and
the future performance of Cherokee. Forward-looking statements in
this press release include, without limitation, express or implied
statements regarding: the Company’s forecasted operating results
for fiscal year 2019; the ability of the Company’s to amend its
credit facility on reasonable terms, or at all; the Company’s
expectations regarding its new and existing license agreements and
the performance of its licensees thereunder; the Company’s ability
to sustain necessary liquidity and grow its business; and
anticipated market developments and opportunities. A
forward-looking statement is neither a prediction nor a guarantee
of future events or circumstances and is based on currently
available market, operating, financial and competitive information
and assumptions. Forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those expected or projected, including, among others, risks
that: Cerberus will exercise its rights to foreclose on all of the
Company’s assets; the Company will not be able to amend its credit
facility on reasonable terms or at all; the Company and its
partners will not achieve the results anticipated in the statements
made in this release; global economic conditions and the financial
condition of the apparel and retail industry and/or adverse changes
in licensee or consumer acceptance of products bearing the
Company’s brands may lead to reduced royalties; the ability and/or
commitment of the Company’s licensees to design, manufacture and
market Cherokee®, Hi-Tec®, Magnum®, 50 Peaks®, Interceptor®, Carole
Little®, Tony Hawk® and Hawk Brands®, Liz Lange®, Everyday
California® and Sideout® branded products could cause our results
to differ from our anticipations; the Company’s dependence on a
select group of licensees for most of the Company’s revenues makes
us susceptible to changes in those organizations; and the Company’s
dependence on its key management personnel could leave us exposed
to disruption on any termination of service. The risks
included here are not exhaustive. Other risks and uncertainties are
described in our annual report on Form 10-K filed on April 19,
2018, its periodic reports on Forms 10-Q and 8-K, and subsequent
filings with the SEC we make from time to time. Except as
required by law, we undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
The Company’s guidance is based on current plans and
expectations and is subject to a number of known and unknown
uncertainties and risks, including those set forth under the
Company’s safe harbor statement. This forecast is made as of the
date of this release, and Company undertakes no obligation to
update or amend this guidance whether as a result of new
information, future events or otherwise.
Note Regarding Use of Non-GAAP Financial
Measures Certain of the information set forth herein,
including Adjusted EBITDA, may be considered non-GAAP financial
measures. Cherokee believes this information is useful to investors
as a measure of profitability, because it helps us compare our
performance on a consistent basis by removing from our operating
results the impact of our capital structure, the effect of
operating in different tax jurisdictions, the impact of our asset
base, which can differ depending on the book value of assets and
the accounting methods used to compute depreciation and
amortization, and the cost of acquiring businesses and
restructuring our operations. In addition, the company’s
management uses these non-GAAP financial measures along with the
most directly comparable GAAP financial measures in evaluating the
company’s operating performance and cash flow. Non-GAAP financial
measures should not be considered in isolation from, or as a
substitute for, financial information presented in compliance with
GAAP, and non-GAAP financial measures as reported by the company
may not be comparable to similarly titled amounts reported by other
companies. A reconciliation of net loss from continuing operations
as reported in our consolidated statements of operations is
reconciled to Adjusted EBITDA in tabular form later in this release
under the heading “Reconcilation of GAAP to Non-GAAP Financial
Data“.
Investor Contact:Cherokee Global BrandsSteve Brink,
CFO818-908-9868
Addo Investor RelationsLaura Bainbridge/Patricia
Nir310-829-5400
CHEROKEE INC. |
CONSOLIDATED BALANCE SHEETS |
UNAUDITED |
(In thousands, except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February 3, 2018 |
|
|
January 28, 2017 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
3,174 |
|
|
$ |
8,378 |
|
Accounts
receivable, net |
|
|
9,805 |
|
|
|
11,759 |
|
Other
receivables |
|
|
472 |
|
|
|
3,961 |
|
Prepaid
expenses and other current assets |
|
|
1,258 |
|
|
|
5,010 |
|
Current
assets of discontinued operations |
|
|
1,868 |
|
|
|
12,032 |
|
Total current
assets |
|
|
16,577 |
|
|
|
41,140 |
|
Property and equipment,
net |
|
|
1,090 |
|
|
|
1,300 |
|
Intangible assets,
net |
|
|
69,548 |
|
|
|
105,701 |
|
Goodwill |
|
|
16,352 |
|
|
|
15,394 |
|
Other assets |
|
|
30 |
|
|
|
1,578 |
|
Noncurrent assets of
discontinued operations |
|
|
— |
|
|
|
903 |
|
Total assets |
|
$ |
103,597 |
|
|
$ |
166,016 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
7,205 |
|
|
$ |
12,635 |
|
Other
current liabilities |
|
|
7,370 |
|
|
|
11,822 |
|
Current
portion of long term debt |
|
|
46,105 |
|
|
|
1,241 |
|
Related
party Ravich loan |
|
|
— |
|
|
|
3,896 |
|
Deferred
revenue—current |
|
|
2,229 |
|
|
|
6,493 |
|
Current
liabilities of discontinued operations |
|
|
1,103 |
|
|
|
4,083 |
|
Total
current liabilities |
|
|
64,012 |
|
|
|
40,170 |
|
Long term
liabilities: |
|
|
|
|
|
|
|
Long term
debt |
|
|
—- |
|
|
|
41,595 |
|
Deferred
income taxes |
|
|
10,466 |
|
|
|
7,718 |
|
Other
liabilities |
|
|
5,004 |
|
|
|
4,215 |
|
Total liabilities |
|
|
79,482 |
|
|
|
93,698 |
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
Stockholders’
Equity |
|
|
|
|
|
|
|
Preferred stock, $.02
par value, 1,000,000 shares authorized, none issued |
|
|
— |
|
|
|
— |
|
Common stock, $.02 par
value, 20,000,000 shares authorized, shares issued 13,997,200
(2018) and 12,951,284 (2017) |
|
|
280 |
|
|
|
259 |
|
Additional paid-in
capital |
|
|
74,377 |
|
|
|
66,612 |
|
Retained earnings
(accumulated deficit) |
|
|
(50,542 |
) |
|
|
5,447 |
|
Total stockholders’
equity |
|
|
24,115 |
|
|
|
72,318 |
|
Total liabilities and
stockholders’ equity |
|
$ |
103,597 |
|
|
$ |
166,016 |
|
CHEROKEE INC. |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
UNAUDITED |
(In thousands, except per share
amounts) |
|
|
Quarter Ended |
|
Year Ended |
|
February 3, |
January 28, |
|
February 3, |
January 28, |
|
2018 |
2017 |
|
2018 |
2017 |
Revenues |
$ |
6,884 |
$ |
8,376 |
|
$ |
29,365 |
$ |
34,022 |
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses |
|
6,906 |
|
5,706 |
|
|
25,446 |
|
19,106 |
Stock-based compensation and stock warrant charges |
|
1,485 |
|
587 |
|
|
3,789 |
|
2,380 |
Business
acquisition and integration costs |
|
2,169 |
|
7,685 |
|
|
7,537 |
|
11,498 |
Restructuring charges |
|
1,951 |
|
3,782 |
|
|
2,080 |
|
3,782 |
Intangible asset impairment charge |
|
35,500 |
|
— |
|
|
35,500 |
|
— |
Depreciation and amortization |
|
270 |
|
407 |
|
|
1,408 |
|
1,483 |
Total operating
expenses |
|
48,281 |
|
18,167 |
|
|
75,760 |
|
38,249 |
Operating
(loss) income |
|
(41,397) |
|
(9,791) |
|
|
(46,395) |
|
(4,227) |
Other income
(expense): |
|
|
|
|
|
|
|
|
|
Interest
expense |
|
(1,695) |
|
(1,147) |
|
|
(6,500) |
|
(1,661) |
Other
income (expense), net |
|
299 |
|
313 |
|
|
64 |
|
424 |
Total
other expense, net |
|
(1,396) |
|
(834) |
|
|
(6,436) |
|
(1,237) |
(Loss) income from
continuing operations before income taxes |
|
(42,793) |
|
(10,625) |
|
|
(52,831) |
|
(5,464) |
Provision for income
taxes |
|
2,364 |
|
1,323 |
|
|
3,030 |
|
3,258 |
Net (loss) income from
continuing operations |
|
(45,157) |
|
(11,948) |
|
|
(55,861) |
|
(8,722) |
(Loss) Income from
discontinued operations, net of income taxes |
|
(428) |
|
828 |
|
|
(128) |
|
828 |
Net (loss) income |
$ |
(45,585) |
$ |
(11,120) |
|
$ |
(55,989) |
$ |
(7,894) |
Net (loss) income per
share: |
|
|
|
|
|
|
|
|
|
Basic
(loss) earnings per share from continuing operations |
$ |
($3.23) |
$ |
($1.04) |
|
$ |
($4.16) |
$ |
($0.93) |
Diluted
(loss) earnings per share from continuing operations |
$ |
($3.23) |
$ |
($1.04) |
|
$ |
($4.16) |
$ |
($0.93) |
Basic
(loss) earnings from discontinued operations per share |
$ |
($0.03) |
$ |
$0.07 |
|
$ |
($0.01) |
$ |
$0.09 |
Diluted
(loss) earnings from discontinued operations per share |
$ |
($0.03) |
$ |
$0.07 |
|
$ |
($0.01) |
$ |
$0.09 |
Basic
(loss) earnings per share |
$ |
($3.26) |
$ |
($0.96) |
|
$ |
($4.17) |
$ |
($0.84) |
Diluted
(loss) earnings per share |
$ |
($3.26) |
$ |
($0.96) |
|
$ |
($4.17) |
$ |
($0.84) |
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
13,994 |
|
11,539 |
|
|
13,431 |
|
9,424 |
Diluted |
|
13,994 |
|
11,539 |
|
|
13,431 |
|
9,424 |
CHEROKEE INC.RECONCILIATION OF GAAP
TO NON-GAAP FINANCIAL DATA (In thousands,
except per share amounts)
Adjusted EBITDA is defined as net income before (i) interest
expense, (ii) interest income and other income, (iii) provision for
income taxes, (iv) depreciation and amortization, (v) intangible
asset impairment loss, (vi) restructuring charges, (vii) business
acquisition and integration costs and (viii) stock-based
compensation and stock warrant charges. Adjusted EBITDA is
not defined under generally accepted accounting principles (“GAAP”)
and it may not be comparable to similarly titled measures reported
by other companies. We use Adjusted EBITDA, along with other
GAAP measures, as a measure of profitability, because Adjusted
EBITDA helps us compare our performance on a consistent basis by
removing from our operating results the impact of our capital
structure, the effect of operating in different tax jurisdictions,
the impact of our asset base, which can differ depending on the
book value of assets and the accounting methods used to compute
depreciation and amortization, and the cost of acquiring businesses
and restructuring our operations. We believe it is useful to
investors for the same reasons. Adjusted EBITDA has
limitations as a profitability measure in that it does not include
the interest expense on our long-term debt, our provision for
income taxes, the effect of our expenditures for capital assets and
certain intangible assets, or the costs of acquiring businesses and
restructuring our operations, or our non-cash charges for
stock-based compensation and stock warrants. A reconciliation
from net (loss) from continuing operations as reported in our
consolidated statement of operations to Adjusted EBITDA is as
follows:
|
|
February 3, |
|
|
January 28, |
|
February 3, |
|
January 28, |
(In
thousands) |
|
2018 |
|
|
2017 |
|
2018 |
|
2017 |
Net (loss) income from
continuing operations |
$ |
(45,157 |
) |
$ |
(11,948 |
) |
$ |
(55,861 |
) |
$ |
(8,722 |
) |
Provision
for income taxes |
|
2,364 |
|
|
1,323 |
|
|
3,030 |
|
|
3,258 |
|
Interest
expense |
|
1,695 |
|
|
1,147 |
|
|
6,500 |
|
|
1,661 |
|
Interest
income and other income |
|
(299 |
) |
|
(313 |
) |
|
(64 |
) |
|
(424 |
) |
Depreciation and amortization |
|
270 |
|
|
407 |
|
|
1,408 |
|
|
1,483 |
|
Intangible asset impairment loss |
|
35,500 |
|
|
|
|
|
35,500 |
|
|
— |
|
Restructuring charges |
|
1,951 |
|
|
3,782 |
|
|
2,080 |
|
|
3,782 |
|
Business
acquisition and integration costs |
|
2,169 |
|
|
7,685 |
|
|
7,537 |
|
|
11,498 |
|
Stock-based compensation and stock warrant charges |
|
1,485 |
|
|
587 |
|
|
3,789 |
|
|
2,380 |
|
Adjusted EBITDA |
$ |
(22 |
) |
$ |
2,670 |
|
$ |
3,919 |
|
$ |
14,916 |
|
Cherokee Inc. (MM) (NASDAQ:CHKE)
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