~ Second Quarter Net Sales of $88.5 million
~
~ Second Quarter Loss Per Share of ($0.28),
or ($0.07) Excluding Restructuring Plan and Other Items ~
~ Ends Second Quarter with Cash of $170
million ~
~ Announces Licensing Partnership with
Calvin Klein ~
Movado Group, Inc. (NYSE: MOV) today announced second quarter
and six-month results for the period ended July 31, 2020.
Efraim Grinberg, Chairman and Chief Executive Officer, stated,
“We remain focused on ensuring the safety and health of our
employees, customers and the communities where we operate. In a
quarter that was significantly impacted globally by the COVID-19
pandemic, I am proud of our team’s ability to build on our
multi-year investments in our digital center of excellence and
adapt to support our ongoing mission to put consumers first,
allowing them to connect with our great brands, designs and
platforms wherever and whenever they choose to shop. These efforts
allowed us to capture strong online demand where our Movado brand
generated a 130% increase in our own and third party ecommerce
sales. In North America, we reopened our outlet stores in June and
were encouraged by the improved sequential performance in July,
despite reduced stores hours. We are also seeing encouraging demand
in our domestic department store channel. In China, we had a 16%
increase in sales for the quarter with trends continuing to
accelerate and we had positive top line growth in France and
Germany, despite our customers being closed for nearly half of the
quarter.”
Mr. Grinberg continued, “The aggressive actions we took at the
height of the pandemic have positioned us well to continue to
navigate the current environment. We have implemented initiatives
that are expected to generate $90 million in cost savings in this
fiscal year and have strengthened our financial health as evidenced
by our cash balance of $170 million after repaying $37 million on
our revolver at quarter end. As we look to the remainder of the
year, we continue to expect improving sales trends in the second
half relative to the first half with improved profitability and we
will continue to be disciplined and agile in managing the business
given the continued uncertainty. The actions we have taken,
combined with our strong liquidity, enable us to leverage our
powerful portfolio of brands which will be further strengthened by
the exciting new licensing partnership announced today to design
and develop Calvin Klein timepieces and jewelry. As a result, we
have confidence that we will emerge from this extraordinary period
a stronger company that is even better positioned to deliver
long-term shareholder value.”
Non-GAAP Items (See attached table for
GAAP and Non-GAAP measures)
Second quarter fiscal 2021 results of operations included the
following items:
- Operating expenses include a $0.7 million pre-tax charge, or
$0.5 million after tax, representing $0.02 per diluted share,
associated with the amortization of acquired intangible assets
related to the acquisition of Olivia Burton;
- $0.3 million pre-tax charge, or $0.2 million after tax,
representing $0.01 per diluted share, associated with the
amortization of acquired intangible assets and deferred
compensation related to the acquisition of MVMT;
- $7.4 million pre-tax charge, or $5.0 million after tax,
representing $0.22 per diluted share, related to corporate
initiatives primarily in response to the COVID-19 pandemic;
and
- Other non-operating income includes a $1.3 million pre-tax
gain, or $0.8 million after tax, representing $0.04 per diluted
share, associated with the sale of a non-operating asset in
Switzerland.
Second quarter Fiscal 2020 results of operations included the
following items:
- Operating expenses include a $0.7 million pre-tax charge, or
$0.6 million after tax, representing $0.02 per diluted share,
associated with the amortization of acquired intangible assets
related to Olivia Burton;
- $1.1 million pre-tax charge, or $0.9 million after tax,
representing $0.04 per diluted share, associated with the
amortization of acquired intangible assets and deferred
compensation related to the acquisition of MVMT;
- $0.3 million pre-tax gain, or $0.2 million after tax,
representing $0.01 per diluted share, associated with the change in
estimate of the remaining accrual for the fiscal 2018 cost saving
initiatives; and
- Other non-operating income includes a $13.6 million pre-tax
benefit, or $10.4 million after tax, representing $0.44 per diluted
share, associated with the remeasurement of the contingent
consideration liability associated with the MVMT acquisition.
Second Quarter Fiscal 2021 (See
attached table for GAAP and Non-GAAP measures)
- Net sales decreased 43.9% to $88.5 million compared to $157.8
million in the second quarter of fiscal 2020 primarily due to the
impact of the COVID-19 pandemic. Net sales on a constant dollar
basis also decreased 43.9%.
- Gross profit was $45.4 million, or 51.2% of sales, compared to
$85.3 million, or 54.1% of sales, in the second quarter last year.
The decrease in gross margin percentage was primarily the result of
unfavorable changes in channel and product mix, decreased leverage
on fixed costs due to decreased sales, and U.S. special tariff
headwinds.
- Operating expenses were $54.3 million compared to $76.6 million
in the prior year period. For the second quarter of fiscal 2021,
adjusted operating expenses were $45.9 million, which excludes the
operating expense charges mentioned above in the Non-GAAP Items
section. For the second quarter of fiscal 2020, adjusted operating
expenses were $75.1 million, which excludes the operating expense
charges mentioned above in the Non-GAAP Items section. The decrease
in adjusted operating expenses was primarily due to the Company’s
initiative to minimize all non-essential operating expenses such as
certain marketing, selling and payroll related expenses.
- Operating loss was $8.9 million compared to operating income of
$8.8 million in the second quarter of fiscal 2020. Adjusted
operating loss for the second quarter of fiscal 2021 was $0.6
million, which excludes the fiscal 2021 charges listed above in the
Non-GAAP Items section, compared to adjusted operating income for
the second quarter of fiscal 2020 of $10.3 million, which excludes
the fiscal 2020 charges listed above in the Non-GAAP Items
section.
- The Company recorded a tax benefit of $1.6 million compared to
a tax provision of $4.7 million in the second quarter of fiscal
2020. The Company recorded an adjusted tax provision in the second
quarter of fiscal 2021 of $0.6 million compared to an adjusted tax
provision of $1.8 million for the second quarter of fiscal
2020.
- Net loss was $6.6 million, or $0.28 per diluted share, compared
to net income of $17.5 million, or $0.75 per diluted share, in the
second quarter of fiscal 2020 . Adjusted net loss for the fiscal
2021 period was $1.7 million, or $0.07 per diluted share, which
excludes the second quarter fiscal 2021 net charges listed above in
the Non-GAAP Items section after the associated tax effects. This
compares to adjusted net income in the second quarter of fiscal
2020 of $8.3 million, or $0.36 per diluted share, which excludes
the second quarter fiscal 2020 net charges listed above in the
Non-GAAP Items section after the associated tax effects.
First Half Fiscal 2021 (See attached
table for GAAP and Non-GAAP measures)
- Net sales were $158.2 million compared to $304.4 million in the
first six months of fiscal 2020, a decrease of 48.0% primarily due
to the COVID-19 pandemic. Net sales on a constant dollar basis
decreased 47.8%.
- Gross profit was $77.2 million, or 48.8% of sales, compared to
$164.2 million, or 54.0% of sales in the same period last year.
Adjusted gross profit for the first six months of fiscal 2021,
which excludes $3.5 million in corporate initiative charges related
to the impact to the business of the COVID-19 pandemic, was $80.8
million, or 51.0% of net sales. Adjusted gross profit for the first
six months of fiscal 2020, which excludes $0.1 million in
adjustments associated with the amortization of acquisition
accounting adjustments related to the MVMT acquisition, was $164.4
million, or 54.0% of net sales. The decrease in adjusted gross
margin percentage was primarily the result of decreased leverage on
fixed costs due to decreased sales, unfavorable changes in channel
and product mix, unfavorable foreign currency exchange rates and
U.S. special tariff headwinds.
- Operating expenses were $268.3 million as compared to $150.5
million in the first six months of last fiscal year. For the first
six months of fiscal 2021, adjusted operating expenses were $99.0
million, which excludes $155.9 million in adjustments related to
the impairment of goodwill and certain intangible assets, $11.1
million in corporate initiative charges related to the impact to
the business from the COVID-19 pandemic, $1.4 million of expenses
associated with the amortization of acquired intangible assets
related to Olivia Burton and $1.0 million in adjustments associated
with the amortization of acquired intangible assets and deferred
compensation related to the MVMT acquisition. For the first six
months of fiscal 2020, adjusted operating expenses were $146.9
million, which excludes $1.4 million of expenses associated with
the amortization of acquired intangible assets related to Olivia
Burton and $2.5 million in adjustments associated with the
amortization of acquired intangible assets, accounting adjustments
and deferred compensation related to the MVMT acquisition,
partially offset by $0.3 million in adjustments associated with the
change in estimate of the remaining accrual for the fiscal 2018
cost saving initiatives. The decrease in adjusted operating
expenses was primarily due to the Company’s initiative to minimize
all non-essential operating expenses such as certain marketing,
selling and payroll related expenses.
- Operating loss was $191.1 million compared to operating income
of $13.8 million in the first six months of fiscal 2020. Adjusted
operating loss for the first six months of fiscal 2021 was $18.2
million, which excludes the fiscal 2021 charges listed in the
immediately preceding bullet, compared to adjusted operating income
of $17.4 million in the first six months of fiscal 2020 which
excludes the fiscal 2020 net charges listed in the immediately
preceding bullet.
- The Company recorded a tax benefit in the first six months of
fiscal 2021 of $33.9 million as compared to a tax provision of $5.6
million in the first six months of last year. Based upon adjusted
pre-tax income, the adjusted tax benefit was $4.3 million in the
first half of fiscal 2021 compared to an adjusted tax provision of
$3.1 million in the first half of fiscal 2020.
- Net loss was $156.6 million, or $6.75 per diluted share,
compared to net income of $21.4 million, or $0.92 per diluted
share, in the first six months of fiscal 2020. Adjusted net loss
for the first half of fiscal 2021 was $14.7 million, or $0.63 per
diluted shares, which excludes $131.1 million, net of $24.9 million
of tax, in adjustments related to the impairment of goodwill and
certain intangible assets, $10.0 million, net of $4.6 million of
tax, in corporate initiative charges related to the impact to the
business from the COVID-19 pandemic, $1.1 million, net of $0.3
million of tax, of expenses associated with the amortization of
acquired intangible assets related to Olivia Burton and $0.6
million, net of $0.4 million of tax, in adjustments associated with
the amortization of acquired intangible assets and deferred
compensation related to the MVMT acquisition, and $0.8 million, net
of $0.5 million of tax, associated with a gain on the sale of a
non-operating asset in Switzerland. This compares to adjusted net
income for the first half of fiscal 2020 of $13.9 million, or $0.60
per diluted share, which excludes $1.1 million, net of $0.3 million
of tax, of expenses associated with the amortization of acquired
intangible assets related to Olivia Burton; $2.0 million, net of
$0.6 million of tax, of expenses related to the amortization of
acquired intangible assets, accounting adjustments and deferred
compensation related to MVMT; $10.4 million, net of $3.3 million of
tax, of gains associated with the remeasurement of the contingent
consideration liability associated with the MVMT acquisition; and
$0.2 million, net of $0.1 million of tax, of gains associated with
the change in estimate of the remaining accrual for the fiscal 2018
cost saving initiatives.
Fiscal 2021 Outlook
Given the dynamic nature of the COVID-19 crisis and lack of
visibility, the potential financial impact to the business cannot
be reasonably estimated. The Company is not providing fiscal 2021
guidance.
Conference Call
The Company’s management will host a conference call and audio
webcast to discuss its results today, August 27, 2020 at 9:00 a.m.
Eastern Time. The conference call may be accessed by dialing (877)
407-0784. Additionally, a live webcast of the call can be accessed
at www.movadogroup.com. The webcast will be archived on the
Company’s website approximately one hour after the conclusion of
the call. Additionally, a telephonic re-play of the call will be
available at 12:00 p.m. ET on August 27, 2020 until 11:59 p.m. ET
on September 10, 2020 and can be accessed by dialing (844) 512-2921
and entering replay pin number 13708469.
Movado Group, Inc. designs, sources, and distributes MOVADO®,
MVMT®, OLIVIA BURTON®, EBEL®, CONCORD®, COACH®, TOMMY HILFIGER®,
HUGO BOSS®, LACOSTE®, SCUDERIA FERRARI®, REBECCA MINKOFF® and URI
MINKOFF® watches worldwide, and operates Movado company stores in
the United States and Canada.
In this release, the Company presents certain financial measures
that are not calculated according to generally accepted accounting
principles in the United States (“GAAP”). Specifically, the Company
is presenting adjusted gross profit, adjusted gross margin,
adjusted operating expenses and adjusted operating income, which
are gross profit, gross margin, operating expenses and operating
income, respectively, under GAAP, adjusted to eliminate the
amortization of acquisition accounting adjustments related to the
Olivia Burton and MVMT acquisitions, corporate initiatives and the
impairment of goodwill and certain intangible assets. The Company
is also presenting adjusted tax provision, which is the tax
provision under GAAP, adjusted to eliminate the impact of charges
for the Olivia Burton and MVMT acquisitions, corporate initiatives,
the impairment of goodwill and certain intangible assets and the
gain on sale of a non-operating asset. The Company believes these
adjusted measures are useful because they give investors
information about the Company’s financial performance without the
effect of certain items that the Company believes are not
characteristic of its usual operations. The Company is also
presenting adjusted net income, adjusted earnings per share and
adjusted effective tax rate, which are net income, earnings per
share and effective tax rate, respectively, under GAAP, adjusted to
eliminate the after-tax impact of amortization of acquisition
accounting adjustments related to the Olivia Burton and MVMT
acquisitions, corporate initiatives, the impairment of goodwill and
certain intangibles and the gain on sale of a non-operating asset.
The Company believes that adjusted net income, adjusted earnings
per share and adjusted effective tax rate are useful measures of
performance because they give investors information about the
Company’s financial performance without the effect of certain items
that the Company believes are not characteristic of its usual
operations. Additionally, the Company is presenting constant
currency information to provide a framework to assess how its
business performed excluding the effects of foreign currency
exchange rate fluctuations in the current period. Comparisons of
financial results on a constant dollar basis are calculated by
translating each foreign currency at the same US dollar exchange
rate as in effect for the prior-year period for both periods being
compared. The Company believes this information is useful to
investors to facilitate comparisons of operating results. These
non-GAAP financial measures are designed to complement the GAAP
financial information presented in this release. The non-GAAP
financial measures presented should not be considered in isolation
from or as a substitute for the comparable GAAP financial measures,
and the methods of their calculation may differ substantially from
similarly titled measures used by other companies.
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. The Company has tried, whenever possible, to identify
these forward-looking statements using words such as “expects,”
“anticipates,” “believes,” “targets,” “goals,” “projects,”
“intends,” “plans,” “seeks,” “estimates,” “may,” “will,” “should”
and variations of such words and similar expressions. Similarly,
statements in this press release that describe the Company's
business strategy, outlook, objectives, plans, intentions or goals
are also forward-looking statements. Accordingly, such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause the Company's
actual results, performance or achievements and levels of future
dividends to differ materially from those expressed in, or implied
by, these statements. These risks and uncertainties may include,
but are not limited to general economic and business conditions
which may impact disposable income of consumers in the United
States and the other significant markets (including Europe) where
the Company’s products are sold, uncertainty regarding such
economic and business conditions, trends in consumer debt levels
and bad debt write-offs, general uncertainty related to possible
terrorist attacks, natural disasters, pandemics, including the
effect of the COVID-19 pandemic and other diseases on travel and
traffic in our retail stores and the stores of our wholesale
customers, supply disruptions and delivery delays from our Chinese
and other suppliers as a result of the COVID-19 pandemic, adverse
impact on the Company’s wholesale customers and customer traffic in
the Company’s stores as a result of increased uncertainty and
economic disruption caused by the COVID-19 pandemic, the stability
of the European Union (including the impact of the United Kingdom’s
process to exit from the European Union), the stability of the
United Kingdom after its exit from the European Union, and defaults
on or downgrades of sovereign debt and the impact of any of those
events on consumer spending, changes in consumer preferences and
popularity of particular designs, new product development and
introduction, decrease in mall traffic and increase in e-commerce,
the ability of the Company to successfully implement its business
strategies, competitive products and pricing, the impact of “smart”
watches and other wearable tech products on the traditional watch
market, seasonality, availability of alternative sources of supply
in the case of the loss of any significant supplier or any
supplier’s inability to fulfill the Company’s orders, the loss of
or curtailed sales to significant customers, the Company’s
dependence on key employees and officers, the ability to
successfully integrate the operations of acquired businesses
without disruption to other business activities, the possible
impairment of acquired intangible assets including goodwill if the
carrying value of any reporting unit were to exceed its fair value,
volatility in reported earnings resulting from changes in the
estimated fair value of contingent acquisition consideration, the
continuation of the company’s major warehouse and distribution
centers, the continuation of licensing arrangements with third
parties, losses possible from pending or future litigation, the
ability to secure and protect trademarks, patents and other
intellectual property rights, the ability to lease new stores on
suitable terms in desired markets and to complete construction on a
timely basis, the ability of the Company to successfully manage its
expenses on a continuing basis, information systems failure or
breaches of network security, the continued availability to the
Company of financing and credit on favorable terms, business
disruptions, and general risks associated with doing business
outside the United States including, without limitation, import
duties, tariffs (including retaliatory tariffs), quotas, political
and economic stability, changes to existing laws or regulations,
and success of hedging strategies with respect to currency exchange
rate fluctuations, and the other factors discussed in the Company’s
Annual Report on Form 10-K and other filings with the Securities
and Exchange Commission. These statements reflect the Company's
current beliefs and are based upon information currently available
to it. Be advised that developments subsequent to this press
release are likely to cause these statements to become outdated
with the passage of time. The Company assumes no duty to update its
forward looking statements and this release shall not be construed
to indicate the assumption by the Company of any duty to update its
outlook in the future.
(Tables to
follow)
MOVADO GROUP, INC. CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share data)
(Unaudited)
Three Months Ended
Six Months Ended
July 31,
July 31,
2020
2019
2020
2019
Net sales
$
88,538
$
157,816
$
158,204
$
304,365
Cost of sales
43,182
72,477
80,955
140,153
Gross profit
45,356
85,339
77,249
164,212
Operating expenses
54,272
76,563
112,409
150,462
Impairment of goodwill and intangible assets
-
-
155,919
-
Total operating expenses
54,272
76,563
268,328
150,462
Operating (loss)/income
(8,916
)
8,776
(191,079
)
13,750
Non-operating (expense)/income: Gain on sale of a
non-operating asset
1,317
-
1,317
-
Change in contingent consideration
-
13,627
-
13,627
Interest expense
(590
)
(225
)
(861
)
(449
)
Interest income
8
24
23
45
(Loss)/Income before income taxes
(8,181
)
22,202
(190,600
)
26,973
(Benefit)/Provision for income taxes
(1,559
)
4,741
(33,889
)
5,588
Net (loss)/income
(6,622
)
17,461
(156,711
)
21,385
Less: Net loss attributable to noncontrolling interests
(7
)
(44
)
(103
)
(45
)
Net (loss)/income attributable to Movado Group, Inc.
$
(6,615
)
$
17,505
$
(156,608
)
$
21,430
Diluted Income Per Share Information Net
(loss)/income attributable to Movado Group, Inc.
$
(0.28
)
$
0.75
$
(6.75
)
$
0.92
Weighted diluted average shares outstanding
23,240
23,292
23,191
23,370
MOVADO GROUP, INC. GAAP AND NON-GAAP
MEASURES (In thousands, except for percentage data)
(Unaudited)
As Reported
Three Months Ended
July 31,
% Change
2020
2019
Total net sales, as reported
$
88,538
$
157,816
-43.9
%
Total net sales, constant dollar basis
$
88,461
$
157,816
-43.9
%
As Reported
Six Months Ended
July 31,
% Change
2020
2019
Total net sales, as reported
$
158,204
$
304,365
-48.0
%
Total net sales, constant dollar basis
$
158,813
$
304,365
-47.8
%
MOVADO GROUP, INC. GAAP AND NON-GAAP MEASURES
(In thousands, except per share data) (Unaudited)
Net Sales
Gross Profit
Operating
(Loss)/Income
Pre-tax (Loss)/Income
(Benefit)/Provision for Income
Taxes
Net (Loss)/Income Attributable
to Movado Group, Inc.
Diluted EPS
Three Months Ended July 31, 2020 As Reported (GAAP)
$
88,538
$
45,356
$
(8,916
)
$
(8,181
)
$
(1,559
)
$
(6,615
)
$
(0.28
)
Olivia Burton Costs (1)
-
-
671
671
139
532
$
0.02
MVMT Costs (2)
-
-
284
284
108
176
$
0.01
Gain On Sale of a Non-Operating Asset (3)
-
-
-
(1,317
)
(474
)
(843
)
$
(0.04
)
Corporate Initiatives (4)
-
-
7,368
7,368
2,353
5,015
$
0.22
Adjusted Results (Non-GAAP)
$
88,538
$
45,356
$
(593
)
$
(1,175
)
$
567
$
(1,735
)
$
(0.07
)
Three Months Ended July 31, 2019 As
Reported (GAAP)
$
157,816
$
85,339
$
8,776
$
22,202
$
4,741
$
17,505
$
0.75
Olivia Burton Costs (1)
-
-
690
690
131
559
0.02
MVMT Costs (2)
-
-
1,125
1,125
270
855
0.04
Change In Contingent Consideration (5)
-
-
-
(13,627
)
(3,270
)
(10,357
)
(0.44
)
Cost Savings Initiatives (6)
-
-
(320
)
(320
)
(77
)
(243
)
(0.01
)
Adjusted Results (Non-GAAP)
$
157,816
$
85,339
$
10,271
$
10,070
$
1,795
$
8,319
$
0.36
Net Sales Gross Profit
Operating(Loss)/Income Pre-tax(Loss)/Income
(Benefit)/Provisionfor Income Taxes
Net(Loss)/IncomeAttributable toMovado Group,Inc. Diluted
EPS Six Months Ended July 31, 2020 As Reported
(GAAP)
$
158,204
$
77,249
$
(191,079
)
$
(190,600
)
$
(33,889
)
$
(156,608
)
$
(6.75
)
Olivia Burton Costs (1)
-
-
1,356
1,356
258
1,098
$
0.05
MVMT Costs (2)
-
-
981
981
373
608
$
0.03
Goodwill and Intangible Asset Impairment (7)
-
-
155,919
155,919
24,867
131,052
$
5.65
Gain On Sale of a Non-Operating Asset (3)
-
-
-
(1,317
)
(474
)
(843
)
$
(0.04
)
Corporate Initiatives (4)
-
3,508
14,608
14,608
4,592
10,016
$
0.43
Adjusted Results (Non-GAAP)
$
158,204
$
80,757
$
(18,215
)
$
(19,053
)
$
(4,273
)
$
(14,677
)
$
(0.63
)
Six Months Ended July 31, 2019 As Reported
(GAAP)
$
304,365
$
164,212
$
13,750
$
26,973
$
5,588
$
21,430
$
0.92
Olivia Burton Costs (1)
-
-
1,402
1,402
266
1,136
0.05
MVMT Costs (2)
-
140
2,598
2,598
624
1,974
0.08
Change In Contingent Consideration (5)
-
-
-
(13,627
)
(3,270
)
(10,357
)
(0.44
)
Cost Savings Initiatives (6)
-
-
(320
)
(320
)
(77
)
(243
)
(0.01
)
Adjusted Results (Non-GAAP)
$
304,365
$
164,352
$
17,430
$
17,026
$
3,131
$
13,940
$
0.60
(1)
Related to the amortization of acquired intangible assets for
Olivia Burton.
(2)
Related to the amortization of acquired intangible assets,
accounting adjustments and deferred compensation of MVMT, where
applicable.
(3)
Related to a gain on sale of a non-operating asset in Switzerland.
(4)
Related to provision established associated with corporate
initiatives, including restructuring plan.
(5)
Remeasurement of contingent consideration liability.
(6)
Change in estimate in Fiscal 2020 for severance and occupancy
expenses.
(7)
Related to the impairment of goodwill for MVMT, Olivia Burton and
City Time and impairment of certain of MVMT's intangible assets.
MOVADO GROUP, INC. CONSOLIDATED BALANCE SHEETS (In
thousands) (Unaudited)
July 31,
January 31,
July 31,
2020
2020
2019
ASSETS Cash and
cash equivalents
$
170,195
$
185,872
$
134,890
Trade receivables, net
60,128
78,388
93,699
Inventories
173,374
171,406
200,953
Other current assets
29,856
28,888
32,113
Total current assets
433,553
464,554
461,655
Property, plant and equipment, net
25,888
29,238
28,248
Operating lease right-of-use assets
82,169
89,523
91,119
Deferred and non-current income taxes
59,747
25,403
24,621
Goodwill
-
136,366
131,936
Other intangibles, net
18,071
42,359
43,995
Other non-current assets
60,261
59,865
59,057
Total assets
$
679,689
$
847,308
$
840,631
LIABILITIES AND EQUITY
Accounts payable
$
29,929
$
35,488
$
50,281
Accrued liabilities
45,509
44,210
43,874
Accrued payroll and benefits
12,431
6,302
7,333
Current operating lease liabilities
14,766
15,083
14,609
Income taxes payable
6,774
8,217
10,800
Total current liabilities
109,409
109,300
126,897
Loans payable to bank, non current
48,341
51,910
50,300
Deferred and non-current income taxes payable
20,743
25,419
26,593
Non-current operating lease liabilities
75,376
81,877
82,972
Other non-current liabilities
48,124
48,393
50,025
Redeemable noncontrolling interest
3,037
3,165
3,540
Shareholders' equity
373,671
526,537
500,304
Noncontrolling interest
988
707
-
Total equity
374,659
527,244
500,304
Total liabilities, redeemable noncontrolling interest and
equity
$
679,689
$
847,308
$
840,631
MOVADO GROUP, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (In thousands)
(Unaudited)
Six Months Ended
July 31,
2020
2019
Cash flows from operating activities: Net
(loss)/income
$
(156,608
)
$
21,430
Impairment of goodwill and intangible assets
155,919
-
Non-cash corporate initiatives
6,608
-
Change in contingent consideration
-
(13,627
)
Depreciation and amortization
7,200
7,937
Other non-cash adjustments
(33,833
)
2,289
Changes in working capital
9,630
(50,401
)
Changes in non-current assets and liabilities
(292
)
(222
)
Net cash used in operating activities
(11,376
)
(32,594
)
Cash flows from investing activities:
Capital expenditures
(1,891
)
(6,948
)
Proceeds from sale of a non-operating asset
1,317
-
Tradenames and other intangibles
(51
)
(99
)
Net cash used in investing activities
(625
)
(7,047
)
Cash flows from financing activities:
Repayments of bank borrowings
(36,772
)
-
Proceeds from bank borrowings
30,879
-
Dividends paid
-
(9,196
)
Stock repurchase
-
(4,199
)
Stock awards and options exercised and other changes
(474
)
(1,234
)
Debt issuance costs
(300
)
-
Net cash used in financing activities
(6,667
)
(14,629
)
Effect of exchange rate changes on cash, cash
equivalents, and restricted cash
3,022
(751
)
Net change in cash, cash equivalents, and restricted cash
(15,646
)
(55,021
)
Cash, cash equivalents, and restricted cash at beginning of period
186,438
190,459
Cash, cash equivalents, and restricted cash at end
of period
$
170,792
$
135,438
Reconciliation of cash, cash equivalents, and
restricted cash: Cash and cash equivalents
$
170,195
$
134,890
Restricted cash included in other non-current assets
597
548
Cash, cash equivalents, and restricted cash
$
170,792
$
135,438
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200827005233/en/
ICR, Inc. Rachel Schacter/Allison Malkin 203-682-8200
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