HOFFMAN ESTATES, Ill.,
May 26, 2016 /PRNewswire/
-- Sears Holdings Corporation ("Holdings," "we," "us," "our,"
or the "Company")(NASDAQ: SHLD) today announced financial results
for its first quarter ended April 30, 2016. As a supplement to
this announcement, a presentation, pre-recorded conference and
audio webcast are available at our
website http://searsholdings.com/invest.
In summary, we reported:
- Reported net loss attributable to Holdings' shareholders of
$471 million ($4.41 loss per diluted share) for the first
quarter of 2016 compared to a net loss attributable to Holdings'
shareholders of $303 million
($2.85 loss per diluted share) for
the prior year first quarter.
- Adjusted for significant items, we would have reported a net
loss attributable to Holdings' shareholders of $199 million ($1.86
loss per diluted share) for the quarter compared to a net loss
attributable to Holdings' shareholders of $213 million ($2.00
loss per diluted share) in the prior year quarter;
- Adjusted EBITDA of $(127)
million, excluding Seritage Growth Properties and joint
venture rent, in the first quarter of 2016 improved from
$(141) million in the prior year
first quarter. We have shown improvements in six of the last seven
quarters;
- Kmart and Sears Domestic comparable store sales declined 5.0%
and 7.1%, respectively, in the first quarter of 2016; and
- During the first quarter of 2016, the Company closed a
$750 million Senior Secured Term Loan
(the "2016 Term Loan") and received approximately $722 million in net proceeds from the 2016 Term
Loan. The Company also entered into a $500
million committed secured loan facility (the "Secured Loan
Facility") maturing in July 2017 and received net proceeds of
approximately $485 million from the
Secured Loan Facility. The proceeds were used to reduce outstanding
borrowings under its asset-based revolving credit facility and for
general corporate purposes. The 2016 Term Loan, together with the
Secured Loan Facility, provide the Company with additional
financial flexibility as it executes on its transformation to a
more asset-light integrated retailer leveraging its membership
based Shop Your Way® program.
Edward S. Lampert, Holdings'
Chairman and Chief Executive Officer, said, "While our operating
performance still remains well below our goals, I am pleased to
report that our first quarter Adjusted EBITDA, excluding Seritage
Growth Properties and joint venture rent, improved by $14 million compared to the first quarter of
2015, largely driven by reductions in overall expenses. Our Sears
Domestic and Kmart apparel businesses continue to be negatively
impacted by a heavily promotional competitive environment. We
continue to focus on improving the overall performance of these
businesses through changes to our assortment, sourcing, pricing and
inventory management practices. We remain focused on restoring
Sears Holdings to profitability by concentrating on our best
stores, our best members and our best categories through innovative
solutions leveraging our Shop Your Way membership program and our
Integrated Retail offerings."
Rob Schriesheim, Holdings' Chief
Financial Officer, said, "We have an asset rich portfolio which
provides us with numerous options to finance our transformation
strategy. The closing of the previously announced $750
million Term Loan, together with the $500
million Secured Loan Facility, provides $1.25
billion of committed financing. When considered together with
our previously announced intention to monetize at least $300
million of assets, this set of actions would result in an
aggregate of $1.5 billion of enhanced liquidity. As we
have consistently demonstrated, we will continue to take actions to
adjust our capital structure and manage our business to enable us
to execute on our transformation while meeting all of our financial
obligations."
Financial Results
Revenues decreased approximately $488
million to $5.4 billion for the quarter ended April 30,
2016, compared to revenues of $5.9
billion for the quarter ended May 2, 2015. The decrease
in revenue was primarily driven by a 6.1% decline in comparable
store sales during the quarter, which accounted for $268 million of the revenue decline, and by
having fewer Kmart and Sears Full-line stores in operation, which
accounted for $149 million of the
decline.
At Kmart, comparable store sales decreased 5.0% driven by
declines in the consumer electronics, grocery & household,
pharmacy, drugstore and home categories. Sears Domestic comparable
store sales decreased 7.1% primarily driven by decreases in home
appliances, apparel, consumer electronics, footwear and Sears Auto
Centers.
During the quarter, gross margin decreased $341 million due to the above noted decline in
sales, as well as a decline in our gross margin rate. Kmart's gross
margin rate for the first quarter declined 310 basis points
compared to the prior year first quarter, while Sears Domestic's
gross margin rate declined 470 basis points. Excluding the impact
of significant items noted in our Adjusted Earnings Per Share
tables, Kmart's gross margin rate would have declined 110 basis
points, while Sears Domestic's gross margin rate would have
declined 230 basis points compared to the prior year first quarter,
driven by increased markdowns, including an increase in Shop Your
Way expense, in both formats, as well as significantly lower margin
in our apparel business and home appliances business experienced in
Sears Domestic.
Selling and administrative expenses decreased $178 million in the first quarter of 2016
compared to the prior year quarter. Excluding significant items
noted in our Adjusted Earnings Per Share tables, selling and
administrative expenses declined $176
million primarily due to a decrease in payroll expense. In
addition, advertising expense also declined as we shift away from
traditional advertising to use of Shop You Way® points
expense, which is included within gross margin.
Our effective tax rate for the first quarter of 2016 was an
expense of 3.3%, compared to an expense of 6.3% in the prior year
quarter. The application of the requirements for accounting for
income taxes in interim periods, after consideration of our
valuation allowance, causes a significant variation in the typical
relationship between income tax expense and pretax income.
The Company reported a net loss attributable to Holdings'
shareholders of $471 million for the
first quarter of 2016 compared to a net loss attributable to
Holdings' shareholders of $303
million for the prior year period. Net loss attributable to
Holdings' shareholders for the first quarter of 2016 and 2015
included significant items noted in our Adjusted Earnings Per Share
tables, which aggregated to expense of $272
million and $90 million,
respectively. Adjusting for these significant items, we would have
reported a net loss attributable to Holdings' shareholders of
$199 million and $213 million in the first quarter of 2016 and
2015, respectively.
Financial Position
The Company's cash balances were $286
million at April 30, 2016 compared with $238 million at January 30, 2016.
Merchandise inventories at April 30, 2016 were $5.0 billion, compared to $5.1 billion at May 2, 2015, while
merchandise payables were $1.3
billion and $1.7 billion at
April 30, 2016 and May 2, 2015, respectively. Short-term
borrowings totaled $380 million at
the end of the first quarter of 2016 compared to $797 million at January 30, 2016.
At April 30, 2016, we had utilized approximately
$896 million of our $1.971 billion revolving credit facility due in
2020 (consisting of $244 million of
borrowings and $652 million of
letters of credit outstanding). The amount available to borrow
under our credit facility was approximately $265 million, which reflects the effect of our
springing fixed charge coverage ratio covenant and the borrowing
base limitation in our revolving credit facility, which varies
primarily based on our overall inventory and receivables
balances.
Total long-term debt (long-term debt and capital lease
obligations) was $3.4 billion and
$2.2 billion at April 30, 2016
and January 30, 2016, respectively.
Other Corporate Developments
As we continue to evaluate opportunities to accelerate our
transformation and drive growth, we recognize there is significant
potential to further develop our Kenmore®,
Craftsman® and
DieHard® ("KCD") and Sears Home Services
("SHS") businesses. Accordingly, our Board of Directors has decided
to explore alternatives for KCD and SHS. Our iconic KCD brands are
beloved by the American consumer and we believe that we can realize
significant growth by further expanding the presence of these
brands outside of Sears and Kmart. Similarly, our SHS business,
which is the nation's leading provider of in-home services
(Protection Agreements, Parts Direct, Delivery/Installation/Repair
and Home Improvement), has greater potential than what we have
delivered in the past. As the "internet of things" develops and as
more of our lives become connected, we believe SHS and KCD stand to
benefit significantly from broader accessibility. By evaluating
potential partnerships or other transactions that could expand
distribution of our brands and service offerings, we can position
both businesses to achieve greater success.
We have retained Citigroup Global Markets and LionTree Advisors
to assist us in these efforts. There can be no assurance that we
will complete one or more transactions, but we intend to
aggressively evaluate all of the potential alternatives available
to these businesses.
Finally, Sears announced today that its Chief Financial Officer,
Robert Schriesheim, will be
departing from his position with the Company to focus on his other
business interests and pursue other career opportunities. To ensure
a smooth transition, Mr. Schriesheim has agreed to continue in his
current role until we have identified his replacement.
Additionally, Mr. Schriesheim will continue to remain an advisor to
the Company through January 31, 2017.
"On behalf of Sears and its Board of Directors, I would like to
thank Rob for his many contributions to the Company since he joined
in 2011," said Mr. Lampert.
Adjusted EBITDA
In addition to our net loss attributable to Sears Holdings'
shareholders determined in accordance with Generally Accepted
Accounting Principles ("GAAP"), for purposes of evaluating
operating performance, we use Adjusted Earnings Before Interest,
Taxes, Depreciation and Amortization ("Adjusted EBITDA"), Adjusted
EBITDA excluding Seritage/JV rent and Adjusted Earnings Per Share
("Adjusted EPS"), which are non-GAAP measures. The tables attached
to this press release provide a reconciliation of GAAP to as
adjusted amounts. Adjusted EBITDA, excluding Seritage/JV rent,
reflects the impact of the additional rent expense and assigned
sub-tenant rental income as a result of the Seritage and JV
transactions. The terms of our leases with Seritage and the JVs
provide us with the ability to accelerate the transformation of our
physical stores. We expect that our cash rent obligations will
decrease significantly as space in these stores is recaptured. We
believe that our use of Adjusted EBITDA, Adjusted EBITDA excluding
Seritage/JV rent and Adjusted EPS provides an appropriate measure
for investors to use in assessing our performance across periods,
given that these measures provide adjustments for certain
significant items which may vary significantly from period to
period, improving the comparability of year-to-year results and is
therefore representative of our ongoing performance. Therefore, we
have adjusted our results for them to make our statements more
useful and comparable. However, we do not, and do not recommend
that you, solely use Adjusted EBITDA, Adjusted EBITDA excluding
Seritage/JV rent or Adjusted EPS to assess our financial and
earnings performance. We also use, and recommend that you use,
diluted earnings per share in addition to Adjusted EPS in assessing
our earnings performance.
Forward-Looking Statements
Results are unaudited. This press release contains
forward-looking statements intended to qualify for the safe harbor
from liability established by the Private Securities Litigation
Reform Act of 1995, including, but not limited to, statements about
our transformation through our integrated retail strategy, our
plans to redeploy and reconfigure our assets, our liquidity, our
ability to exercise financial flexibility as we meet our
obligations and pursue possible strategic transactions and other
statements that describe the Company's plans. Whenever used, words
such as "will," "expect," and other terms of similar meaning are
intended to identify such forward-looking statements.
Forward-looking statements, including these, are based on the
current beliefs and expectations of our management and are subject
to significant risks, assumptions and uncertainties, many of which
are beyond the Company's control, that may cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by these forward-looking statements. Detailed
descriptions of risks, uncertainties and factors relating to
Sears Holdings are discussed in our most recent Annual Report on
Form 10-K and other filings with the Securities and Exchange
Commission. While we believe that our forecasts and assumptions are
reasonable, we caution that actual results may differ materially.
We intend the forward-looking statements to speak only as of the
time made and do not undertake to update or revise them as more
information becomes available, except as required by law.
About Sears Holdings Corporation
Sears Holdings Corporation (NASDAQ: SHLD) is a leading
integrated retailer focused on seamlessly connecting the digital
and physical shopping experiences to serve our members - wherever,
whenever and however they want to shop. Sears Holdings is home
to Shop Your Way®, a social shopping platform offering
members rewards for shopping at Sears and Kmart, as well as with
other retail partners across categories important to them. The
Company operates through its subsidiaries, including Sears, Roebuck
and Co. and Kmart Corporation, with full-line and specialty retail
stores across the United States.
For more information, visit www.searsholdings.com.
NEWS MEDIA CONTACT:
Sears Holdings Public
Relations
(847) 286-8371
Sears Holdings
Corporation
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
|
|
|
|
Amounts are
Preliminary and Subject to Change
|
|
|
|
|
13 Weeks
Ended
|
millions, except
per share data
|
April 30,
2016
|
|
May 2,
2015
|
REVENUES
|
|
|
|
Merchandise sales and
services
|
$
|
5,394
|
|
|
$
|
5,882
|
|
COSTS AND
EXPENSES
|
|
|
|
Cost of sales, buying
and occupancy
|
4,217
|
|
|
4,364
|
|
Gross margin
dollars
|
1,177
|
|
|
1,518
|
|
Gross margin
rate
|
21.8
|
%
|
|
25.8
|
%
|
Selling and
administrative
|
1,503
|
|
|
1,681
|
|
Selling and
administrative expense as a percentage of total
revenues
|
27.9
|
%
|
|
28.6
|
%
|
Depreciation and
amortization
|
95
|
|
|
122
|
|
Impairment
charges
|
8
|
|
|
—
|
|
Gain on sales of
assets
|
(61)
|
|
|
(107)
|
|
Total costs and
expenses
|
5,762
|
|
|
6,060
|
|
Operating
loss
|
(368)
|
|
|
(178)
|
|
Interest
expense
|
(85)
|
|
|
(90)
|
|
Interest and
investment loss
|
(4)
|
|
|
(18)
|
|
Other
income
|
1
|
|
|
1
|
|
Loss before income
taxes
|
(456)
|
|
|
(285)
|
|
Income tax
expense
|
(15)
|
|
|
(18)
|
|
NET LOSS
ATTRIBUTABLE TO HOLDINGS' SHAREHOLDERS
|
$
|
(471)
|
|
|
$
|
(303)
|
|
NET LOSS PER
COMMON SHARE ATTRIBUTABLE TO HOLDINGS' SHAREHOLDERS
|
|
|
|
Diluted loss per
share
|
$
|
(4.41)
|
|
|
$
|
(2.85)
|
|
Diluted weighted
average common shares outstanding
|
106.8
|
|
|
106.5
|
|
Sears Holdings
Corporation
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
Amounts are
Preliminary and Subject to Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
millions
|
|
April 30,
2016
|
|
May 2,
2015
|
|
January
30,
2016
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
286
|
|
|
$
|
286
|
|
|
$
|
238
|
|
Accounts
receivable
|
|
437
|
|
|
474
|
|
|
419
|
|
Merchandise
inventories
|
|
5,028
|
|
|
5,054
|
|
|
5,172
|
|
Prepaid expenses and
other current assets
|
|
369
|
|
|
249
|
|
|
216
|
|
Total current
assets
|
|
6,120
|
|
|
6,063
|
|
|
6,045
|
|
Property and
equipment (net of accumulated depreciation and amortization of
$2,999, $3,954 and $2,960)
|
|
2,520
|
|
|
4,351
|
|
|
2,631
|
|
Goodwill
|
|
269
|
|
|
269
|
|
|
269
|
|
Trade names and other
intangible assets
|
|
1,907
|
|
|
2,094
|
|
|
1,909
|
|
Other
assets
|
|
359
|
|
|
492
|
|
|
483
|
|
TOTAL
ASSETS
|
|
$
|
11,175
|
|
|
$
|
13,269
|
|
|
$
|
11,337
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
380
|
|
|
$
|
714
|
|
|
$
|
797
|
|
Current portion of
long-term debt and capitalized lease obligations
|
|
66
|
|
|
73
|
|
|
71
|
|
Merchandise
payables
|
|
1,337
|
|
|
1,685
|
|
|
1,574
|
|
Other current
liabilities
|
|
1,737
|
|
|
1,912
|
|
|
1,925
|
|
Unearned
revenues
|
|
773
|
|
|
804
|
|
|
787
|
|
Other
taxes
|
|
301
|
|
|
371
|
|
|
284
|
|
Total current
liabilities
|
|
4,594
|
|
|
5,559
|
|
|
5,438
|
|
Long-term debt and
capitalized lease obligations
|
|
3,312
|
|
|
3,080
|
|
|
2,108
|
|
Pension and
postretirement benefits
|
|
2,137
|
|
|
2,329
|
|
|
2,206
|
|
Deferred gain on
sale-leaseback
|
|
718
|
|
|
—
|
|
|
753
|
|
Sale-leaseback
financing obligation
|
|
164
|
|
|
426
|
|
|
164
|
|
Other long-term
liabilities
|
|
1,718
|
|
|
1,859
|
|
|
1,731
|
|
Long-term deferred
tax liabilities
|
|
892
|
|
|
1,198
|
|
|
893
|
|
Total
Liabilities
|
|
13,535
|
|
|
14,451
|
|
|
13,293
|
|
EQUITY
(DEFICIT)
|
|
|
|
|
|
|
Total
Equity (Deficit)
|
|
(2,360)
|
|
|
(1,182)
|
|
|
(1,956)
|
|
TOTAL
LIABILITIES AND EQUITY (DEFICIT)
|
|
$
|
11,175
|
|
|
$
|
13,269
|
|
|
$
|
11,337
|
|
|
|
|
|
|
|
|
Total common shares
outstanding
|
|
106.8
|
|
|
106.6
|
|
|
106.7
|
|
Sears Holdings
Corporation
|
Segment
Results
|
(Unaudited)
|
|
|
|
|
|
|
Amounts are
Preliminary and Subject to Change
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended
April 30, 2016
|
millions, except
store data
|
Kmart
|
|
Sears
Domestic
|
|
Sears
Holdings
|
Merchandise sales and
services
|
$
|
2,139
|
|
|
$
|
3,255
|
|
|
$
|
5,394
|
|
|
|
|
|
|
|
Cost of sales, buying
and occupancy
|
1,735
|
|
|
2,482
|
|
|
4,217
|
|
Gross margin
dollars
|
404
|
|
|
773
|
|
|
1,177
|
|
Gross margin
rate
|
18.9
|
%
|
|
23.7
|
%
|
|
21.8
|
%
|
|
|
|
|
|
|
Selling and
administrative
|
544
|
|
|
959
|
|
|
1,503
|
|
Selling and
administrative expense as a percentage of total
revenues
|
25.4
|
%
|
|
29.5
|
%
|
|
27.9
|
%
|
Depreciation and
amortization
|
19
|
|
|
76
|
|
|
95
|
|
Impairment
charges
|
3
|
|
|
5
|
|
|
8
|
|
Gain on sales of
assets
|
(46)
|
|
|
(15)
|
|
|
(61)
|
|
Total costs and expenses
|
2,255
|
|
|
3,507
|
|
|
5,762
|
|
Operating
loss
|
$
|
(116)
|
|
|
$
|
(252)
|
|
|
$
|
(368)
|
|
|
|
|
|
|
|
Number of:
|
|
|
|
|
|
Kmart
Stores
|
896
|
|
|
—
|
|
|
896
|
|
Full-Line
Stores
|
—
|
|
|
700
|
|
|
700
|
|
Specialty
Stores
|
—
|
|
|
26
|
|
|
26
|
|
Total
Stores
|
896
|
|
|
726
|
|
|
1,622
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended May
2, 2015
|
millions, except
store data
|
Kmart
|
|
Sears
Domestic
|
|
Sears
Holdings
|
Merchandise sales and
services
|
$
|
2,356
|
|
|
$
|
3,526
|
|
|
$
|
5,882
|
|
|
|
|
|
|
|
Cost of sales, buying
and occupancy
|
1,838
|
|
|
2,526
|
|
|
4,364
|
|
Gross margin
dollars
|
518
|
|
|
1,000
|
|
|
1,518
|
|
Gross margin
rate
|
22.0
|
%
|
|
28.4
|
%
|
|
25.8
|
%
|
|
|
|
|
|
|
Selling and
administrative
|
623
|
|
|
1,058
|
|
|
1,681
|
|
Selling and
administrative expense as a percentage of total
revenues
|
26.4
|
%
|
|
30.0
|
%
|
|
28.6
|
%
|
Depreciation and
amortization
|
20
|
|
|
102
|
|
|
122
|
|
Gain on sales of
assets
|
(18)
|
|
|
(89)
|
|
|
(107)
|
|
Total costs and expenses
|
2,463
|
|
|
3,597
|
|
|
6,060
|
|
Operating
loss
|
$
|
(107)
|
|
|
$
|
(71)
|
|
|
$
|
(178)
|
|
|
|
|
|
|
|
Number of:
|
|
|
|
|
|
Kmart
Stores
|
973
|
|
|
—
|
|
|
973
|
|
Full-Line
Stores
|
—
|
|
|
715
|
|
|
715
|
|
Specialty
Stores
|
—
|
|
|
28
|
|
|
28
|
|
Total
Stores
|
973
|
|
|
743
|
|
|
1,716
|
|
Sears Holdings
Corporation
|
Adjusted
EBITDA
|
(Unaudited)
|
|
|
|
|
Amounts are
Preliminary and Subject to Change
|
|
|
|
|
13 Weeks
Ended
|
millions
|
April
30,
2016
|
|
May
2,
2015
|
Net loss attributable
to Holdings per statement of operations
|
$
|
(471)
|
|
|
$
|
(303)
|
|
Income tax
expense
|
15
|
|
|
18
|
|
Interest
expense
|
85
|
|
|
90
|
|
Interest and
investment loss
|
4
|
|
|
18
|
|
Other
income
|
(1)
|
|
|
(1)
|
|
Operating
loss
|
(368)
|
|
|
(178)
|
|
Depreciation and
amortization
|
95
|
|
|
122
|
|
Gain on sales of
assets
|
(61)
|
|
|
(107)
|
|
Before excluded
items
|
(334)
|
|
|
(163)
|
|
|
|
|
|
Closed store reserve
and severance
|
87
|
|
|
39
|
|
Pension
expense
|
72
|
|
|
57
|
|
Other(1)
|
8
|
|
|
(74)
|
|
Amortization of
deferred Seritage gain
|
(22)
|
|
|
—
|
|
Impairment
charges
|
8
|
|
|
—
|
|
Adjusted
EBITDA
|
(181)
|
|
|
(141)
|
|
|
|
|
|
Seritage/JV
rent
|
54
|
|
|
—
|
|
Adjusted EBITDA
excluding Seritage/JV rent
|
$
|
(127)
|
|
|
$
|
(141)
|
|
|
|
(1)
|
The 13 weeks ended
April 30, 2016 consisted of expenses associated with legal matters,
while the 13 weeks ended May 2, 2015 consisted of one-time credits
from vendors, expenses associated with legal matters, transaction
costs associated with strategic initiatives and other
expenses.
|
Sears Holdings
Corporation
|
Adjusted
EBITDA
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Amounts are
Preliminary and Subject to Change
|
|
|
|
13 Weeks
Ended
|
|
April 30,
2016
|
|
May 2,
2015
|
millions
|
Kmart
|
Sears
Domestic
|
Sears
Holdings
|
|
Kmart
|
Sears
Domestic
|
Sears
Holdings
|
Operating loss per
statement of operations
|
$
|
(116)
|
|
$
|
(252)
|
|
$
|
(368)
|
|
|
$
|
(107)
|
|
$
|
(71)
|
|
$
|
(178)
|
|
Depreciation and
amortization
|
19
|
|
76
|
|
95
|
|
|
20
|
|
102
|
|
122
|
|
Gain on sales of
assets
|
(46)
|
|
(15)
|
|
(61)
|
|
|
(18)
|
|
(89)
|
|
(107)
|
|
Before excluded
items
|
(143)
|
|
(191)
|
|
(334)
|
|
|
(105)
|
|
(58)
|
|
(163)
|
|
|
|
|
|
|
|
|
|
Pension
expense
|
—
|
|
72
|
|
72
|
|
|
—
|
|
57
|
|
57
|
|
Closed store reserve
and severance
|
73
|
|
14
|
|
87
|
|
|
36
|
|
3
|
|
39
|
|
Other(1)
|
8
|
|
—
|
|
8
|
|
|
8
|
|
(82)
|
|
(74)
|
|
Amortization of
deferred Seritage gain
|
(4)
|
|
(18)
|
|
(22)
|
|
|
—
|
|
—
|
|
—
|
|
Impairment
charges
|
3
|
|
5
|
|
8
|
|
|
—
|
|
—
|
|
—
|
|
Adjusted
EBITDA
|
$
|
(63)
|
|
$
|
(118)
|
|
$
|
(181)
|
|
|
$
|
(61)
|
|
$
|
(80)
|
|
$
|
(141)
|
|
% to
revenues
|
(2.9)%
|
|
(3.6)%
|
|
(3.4)%
|
|
|
(2.6)%
|
|
(2.3)%
|
|
(2.4)%
|
|
|
|
(1)
|
The 13 weeks ended
April 30, 2016 consisted of expenses associated with legal matters,
while the 13 weeks ended May 2, 2015 consisted of one-time credits
from vendors, expenses associated with legal matters, transaction
costs associated with strategic initiatives and other
expenses.
|
Sears Holdings
Corporation
|
Adjusted Earnings
per Share
|
(Unaudited)
|
|
Amounts are
Preliminary and Subject to Change
|
|
13 Weeks Ended
April 30, 2016
|
|
|
Adjustments
|
|
millions, except
per share data
|
GAAP
|
Pension
Expense
|
Closed Store
Reserve, Store Impairments and Severance
|
Gain on Sales of
Assets
|
Mark-to-Market
Adjustments
|
Amortization of
Deferred Seritage Gain
|
Other(1)
|
Tax
Matters
|
As
Adjusted
|
Gross margin
impact
|
$
|
1,177
|
|
$
|
—
|
|
$
|
60
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(22)
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,215
|
|
Selling and
administrative impact
|
1,503
|
|
(72)
|
|
(27)
|
|
—
|
|
—
|
|
—
|
|
(8)
|
|
—
|
|
1,396
|
|
Depreciation and
amortization impact
|
95
|
|
—
|
|
(4)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
91
|
|
Impairment charges
impact
|
8
|
|
—
|
|
(8)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Gain on sales of
assets impact
|
(61)
|
|
—
|
|
—
|
|
26
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(35)
|
|
Operating loss
impact
|
(368)
|
|
72
|
|
99
|
|
(26)
|
|
—
|
|
(22)
|
|
8
|
|
—
|
|
(237)
|
|
Interest and
investment loss impact
|
(4)
|
|
—
|
|
—
|
|
—
|
|
6
|
|
—
|
|
—
|
|
—
|
|
2
|
|
Income tax expense
impact
|
(15)
|
|
(27)
|
|
(37)
|
|
10
|
|
(2)
|
|
8
|
|
(3)
|
|
186
|
|
120
|
|
After tax and
noncontrolling interests impact
|
(471)
|
|
45
|
|
62
|
|
(16)
|
|
4
|
|
(14)
|
|
5
|
|
186
|
|
(199)
|
|
Diluted loss per
share impact
|
$
|
(4.41)
|
|
$
|
0.42
|
|
$
|
0.58
|
|
$
|
(0.15)
|
|
$
|
0.04
|
|
$
|
(0.13)
|
|
$
|
0.05
|
|
$
|
1.74
|
|
$
|
(1.86)
|
|
|
13 Weeks Ended May
2, 2015
|
|
|
Adjustments
|
|
millions, except
per share data
|
GAAP
|
Pension
Expense
|
Closed Store
Reserve and Severance
|
Gain on Sales of
Assets
|
Mark-to-Market
Adjustments
|
Other(1)
|
Tax
Matters
|
As
Adjusted
|
Gross margin
impact
|
$
|
1,518
|
|
$
|
—
|
|
$
|
6
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(93)
|
|
$
|
—
|
|
$
|
1,431
|
|
Selling and
administrative impact
|
1,681
|
|
(57)
|
|
(33)
|
|
—
|
|
—
|
|
(19)
|
|
—
|
|
1,572
|
|
Gain on sales of
assets impact
|
(107)
|
|
—
|
|
—
|
|
96
|
|
—
|
|
—
|
|
—
|
|
(11)
|
|
Operating loss
impact
|
(178)
|
|
57
|
|
39
|
|
(96)
|
|
—
|
|
(74)
|
|
—
|
|
(252)
|
|
Interest and
investment loss impact
|
(18)
|
|
—
|
|
—
|
|
—
|
|
19
|
|
—
|
|
—
|
|
1
|
|
Income tax expense
impact
|
(18)
|
|
(21)
|
|
(15)
|
|
36
|
|
(7)
|
|
28
|
|
124
|
|
127
|
|
After tax and
noncontrolling interests impact
|
(303)
|
|
36
|
|
24
|
|
(60)
|
|
12
|
|
(46)
|
|
124
|
|
(213)
|
|
Diluted loss per
share impact
|
$
|
(2.85)
|
|
$
|
0.34
|
|
$
|
0.23
|
|
$
|
(0.56)
|
|
$
|
0.11
|
|
$
|
(0.43)
|
|
$
|
1.16
|
|
$
|
(2.00)
|
|
|
|
(1)
|
The 13 weeks ended
April 30, 2016 consisted of expenses associated with legal matters,
while the 13 weeks ended May 2, 2015 consisted of one-time credits
from vendors, expenses associated with legal matters, transaction
costs associated with strategic initiatives and other
expenses.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sears-holdings-reports-first-quarter-2016-results-and-other-corporate-developments-300275311.html
SOURCE Sears Holdings Corporation