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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 3, 2019

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to

Commission file number: 001-35720

Graphic

(Exact name of registrant as specified in its charter)

Delaware

    

45-3052669

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification Number)

15 Koch Road, Suite K
Corte Madera, CA

 

94925

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: (415924-1005

Securities registered pursuant to Section 12(b) of the Act:

 

Common Stock, $0.0001 par value

RH

New York Stock Exchange, Inc.

(Title of each class)

(Trading symbol)

(Name of each exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes     No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

 

  

Accelerated filer

 

Non-accelerated filer

 

  

  

Smaller reporting company

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes      No  

As of September 6, 2019, 18,676,038 shares of registrant’s common stock were outstanding.

Table of Contents

RH

INDEX TO FORM 10-Q

    

    

Page

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements

3

Condensed Consolidated Balance Sheets (Unaudited) as of August 3, 2019 and February 2, 2019

3

Condensed Consolidated Statements of Income (Unaudited) for the three and six months ended August 3, 2019 and August 4, 2018

4

Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three and six months ended August 3, 2019 and August 4, 2018

5

Condensed Consolidated Statements of Stockholders’ Equity (Deficit) (Unaudited) for the three and six months ended August 3, 2019 and August 4, 2018

6

Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended August 3, 2019 and August 4, 2018

7

Notes to Condensed Consolidated Financial Statements (Unaudited)

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

36

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

68

Item 4.

Controls and Procedures

70

PART II. OTHER INFORMATION

Item 1.

Legal Proceedings

71

Item 1A.

Risk Factors

71

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

77

Item 3.

Defaults Upon Senior Securities

77

Item 4.

Mine Safety Disclosures

77

Item 5.

Other Information

77

Item 6.

Exhibits

78

Signatures

79

2

Table of Contents

PART I

Item 1. Financial Statements

RH

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

(Unaudited)

    

August 3,

    

February 2,

2019

2019

ASSETS

 

  

 

  

Current assets:

 

  

 

  

Cash and cash equivalents

$

11,555

$

5,803

Accounts receivable—net

 

44,287

 

40,224

Merchandise inventories

 

480,688

 

531,947

Asset held for sale

21,795

21,795

Prepaid expense and other current assets

 

99,297

 

104,198

Total current assets

 

657,622

 

703,967

Property and equipment—net

 

950,594

 

952,957

Operating lease right-of-use assets

421,001

440,504

Goodwill

 

124,370

 

124,379

Tradenames, trademarks and domain names

 

86,022

 

86,022

Deferred tax assets

 

35,946

 

35,603

Other non-current assets

 

112,253

 

79,586

Total assets

$

2,387,808

$

2,423,018

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

  

 

  

Current liabilities:

 

  

 

  

Accounts payable and accrued expenses

$

289,713

$

320,497

Deferred revenue and customer deposits

 

165,511

 

152,595

Convertible senior notes due 2019—net

 

 

343,789

Convertible senior notes due 2020—net

280,688

Operating lease liabilities

57,162

66,249

Other current liabilities

 

131,883

 

109,456

Total current liabilities

 

924,957

 

992,586

Asset based credit facility

 

145,000

 

57,500

FILO term loan—net

 

119,086

 

Second lien term loan—net

197,262

Equipment promissory notes—net

 

42,113

 

Convertible senior notes due 2020—net

 

 

271,157

Convertible senior notes due 2023—net

 

257,766

 

249,151

Non-current operating lease liabilities

 

415,803

 

437,557

Non-current finance lease liabilities

433,591

421,245

Other non-current obligations

 

30,148

 

32,512

Total liabilities

 

2,565,726

 

2,461,708

Commitments and contingencies (Note 15)

 

 

Stockholders’ deficit:

 

  

 

  

Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized, no shares issued or outstanding as of August 3, 2019 and February 2, 2019

 

 

Common stock, $0.0001 par value per share, 180,000,000 shares authorized, 18,591,763 shares issued and outstanding as of August 3, 2019; 20,480,613 shares issued and 20,477,813 shares outstanding as of February 2, 2019

 

2

 

2

Additional paid-in capital

 

355,010

 

356,422

Accumulated other comprehensive loss

 

(2,780)

 

(2,333)

Accumulated deficit

 

(530,150)

 

(392,538)

Treasury stock—at cost, no shares as of August 3, 2019 and 2,800 shares as of February 2, 2019

 

 

(243)

Total stockholders’ deficit

 

(177,918)

 

(38,690)

Total liabilities and stockholders’ deficit

$

2,387,808

$

2,423,018

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

3

Table of Contents

RH

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share amounts)

(Unaudited)

Three Months Ended

Six Months Ended

August 3,

August 4,

August 3,

August 4,

    

2019

    

2018

    

2019

    

2018

Net revenues

$

706,514

$

640,798

$

1,304,935

$

1,198,204

Cost of goods sold

 

411,556

 

372,454

 

777,163

 

720,527

Gross profit

 

294,958

 

268,344

 

527,772

 

477,677

Selling, general and administrative expenses

 

190,977

 

186,521

355,158

347,707

Income from operations

 

103,981

 

81,823

 

172,614

 

129,970

Other expenses

 

  

 

  

 

  

 

  

Interest expense—net

24,513

15,467

45,631

30,565

(Gain) loss on extinguishment of debt

 

(954)

 

917

 

(954)

 

917

Total other expenses

 

23,559

 

16,384

 

44,677

 

31,482

Income before income taxes

 

80,422

 

65,439

 

127,937

 

98,488

Income tax expense

 

16,665

 

2,533

 

28,458

 

10,121

Net income

$

63,757

$

62,906

$

99,479

$

88,367

Weighted-average shares used in computing
basic net income per share

 

18,465,876

 

21,925,702

 

19,221,367

 

21,735,364

Basic net income per share

$

3.45

$

2.87

$

5.18

$

4.07

Weighted-average shares used in computing
diluted net income per share

 

22,324,112

 

27,496,561

 

23,629,050

 

26,363,395

Diluted net income per share

$

2.86

$

2.29

$

4.21

$

3.35

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

4

Table of Contents

RH

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

August 3,

August 4,

August 3,

August 4,

2019

    

2018

    

2019

    

2018

Net income

$

63,757

$

62,906

$

99,479

$

88,367

Net gains (losses) from foreign currency translation

 

490

(482)

 

(447)

 

(1,746)

Total comprehensive income

$

64,247

$

62,424

$

99,032

$

86,621

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

5

Table of Contents

RH

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

(In thousands, except share amounts)

(Unaudited)

Three Months Ended

 

Accumulated

 

Retained

 

Total

 

Additional

 

Other

 

Earnings

 

Stockholders’

 

Common Stock

 

Paid-In

 

Comprehensive

 

(Accumulated

 

Treasury Stock

 

Equity

    

Shares

    

Amount

    

Capital

    

Income (Loss)

    

Deficit)

    

Shares

    

Amount

    

(Deficit)

Balances—May 5, 2018

 

21,612,197

 

$

2

 

$

851,228

 

$

(1,435)

 

$

156,000

 

20,222,932

 

$

(1,000,569)

 

$

5,226

Stock-based compensation

 

 

 

5,988

 

 

 

 

 

5,988

Issuance of restricted stock

 

6,405

 

 

 

 

 

 

 

Vested and delivered restricted stock units

 

82,906

 

 

(7,512)

 

 

 

 

 

(7,512)

Exercise of stock options

 

527,931

 

 

26,286

 

 

 

 

 

26,286

Equity component value of convertible note issuance—net

 

 

89,933

 

 

 

 

 

89,933

Sale of common stock warrant

 

 

51,021

 

 

 

 

 

51,021

Purchase of convertible note hedge

 

 

(91,857)

 

 

 

 

 

(91,857)

Net income

 

 

 

 

 

62,906

 

 

 

62,906

Net gains (losses) from foreign currency
translation

 

 

 

 

(482)

 

 

 

 

(482)

Balances—August 4, 2018

 

22,229,439

 

$

2

 

$

925,087

 

$

(1,917)

 

$

218,906

 

20,222,932

 

$

(1,000,569)

 

$

141,509

Balances—May 4, 2019

 

18,357,816

 

$

2

 

$

362,986

 

$

(3,270)

 

$

(356,816)

 

2,170,196

 

$

(250,275)

 

$

(247,373)

Stock-based compensation

 

 

 

5,191

 

 

 

 

 

5,191

Issuance of restricted stock

 

7,014

 

 

 

 

 

 

 

Vested and delivered restricted stock units

 

80,400

 

 

(5,984)

 

 

 

 

 

(5,984)

Exercise of stock options

 

146,491

 

 

5,997

 

 

 

 

 

5,997

Retirement of treasury stock

 

 

 

(13,180)

 

 

(237,091)

 

(2,170,154)

 

250,271

 

Net income

 

 

 

 

 

63,757

 

 

 

63,757

Net gains (losses) from foreign currency translation

 

 

 

 

490

 

 

 

 

490

Conversion of convertible senior notes

42

(42)

4

4

Balances—August 3, 2019

 

18,591,763

 

$

2

 

$

355,010

 

$

(2,780)

 

$

(530,150)

 

 

$

 

$

(177,918)

Six Months Ended

 

Accumulated

 

Retained

 

Total

 

Additional

 

Other

 

Earnings

 

Stockholders’

 

Common Stock

 

Paid-In

 

Comprehensive

 

(Accumulated

 

Treasury Stock

 

Equity

    

Shares

    

Amount

    

Capital

    

Income (Loss)

    

Deficit)

    

Shares

    

Amount

    

(Deficit)

Balances—February 3, 2018

 

21,517,338

 

$

2

 

$

840,765

 

$

(171)

 

$

151,575

 

20,220,132

 

$

(1,000,326)

 

$

(8,155)

Stock-based compensation

 

 

 

13,879

 

 

 

 

 

13,879

Issuance of restricted stock

 

6,405

 

 

 

 

 

 

 

Vested and delivered restricted stock units

 

103,016

 

 

(7,863)

 

 

 

 

 

(7,863)

Exercise of stock options

 

605,480

 

 

29,209

 

 

 

 

 

29,209

Repurchases of common stock

 

(2,800)

 

 

 

 

 

2,800

 

(243)

 

(243)

Equity component value of convertible note issuance—net

 

 

89,933

 

 

 

 

 

89,933

Sale of common stock warrant

 

 

51,021

 

 

 

 

 

51,021

Purchase of convertible note hedge

 

 

(91,857)

 

 

 

 

 

(91,857)

Impact of Topic 606 adoption

 

 

 

 

(21,036)

 

 

 

(21,036)

Net income

 

 

 

 

 

88,367

 

 

 

88,367

Net gains (losses) from foreign currency translation

 

 

 

 

(1,746)

 

 

 

 

(1,746)

Balances—August 4, 2018

 

22,229,439

 

$

2

 

$

925,087

 

$

(1,917)

 

$

218,906

 

20,222,932

 

$

(1,000,569)

 

$

141,509

Balances—February 2, 2019

 

20,477,813

 

$

2

 

$

356,422

 

$

(2,333)

 

$

(392,538)

 

2,800

 

$

(243)

 

$

(38,690)

Stock-based compensation

 

 

 

10,779

 

 

 

 

 

10,779

Issuance of restricted stock

 

7,014

 

 

 

 

 

 

 

Vested and delivered restricted stock units

 

101,641

 

 

(6,234)

 

 

 

 

 

(6,234)

Exercise of stock options

 

172,649

 

 

7,223

 

 

 

 

 

7,223

Repurchases of common stock

 

(2,167,396)

 

 

 

 

 

2,167,396

 

(250,032)

 

(250,032)

Retirement of treasury stock

 

 

 

(13,180)

 

 

(237,091)

 

(2,170,154)

 

250,271

 

Net income

 

 

 

 

 

99,479

 

 

 

99,479

Net gains (losses) from foreign currency translation

 

 

 

 

(447)

 

 

 

 

(447)

Conversion of convertible senior notes

42

(42)

4

4

Balances—August 3, 2019

 

18,591,763

 

$

2

 

$

355,010

 

$

(2,780)

 

$

(530,150)

 

 

$

 

$

(177,918)

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

6

Table of Contents

RH

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Six Months Ended

August 3,

August 4,

    

2019

    

2018

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

99,479

$

88,367

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

Depreciation and amortization

 

52,510

 

41,939

Non-cash operating lease cost

33,227

34,118

Amortization of debt discount

 

22,962

 

17,645

Accretion of debt discount upon settlement of debt

(70,482)

Stock-based compensation expense

 

10,993

 

14,092

Non-cash finance lease interest expense

11,186

6,411

Product recalls

(2,106)

Net non-cash charges resulting from inventory step-up

 

 

380

(Gain) loss on extinguishment of debt

(954)

917

Other non-cash interest expense

 

2,251

 

1,276

Change in assets and liabilities:

 

 

Accounts receivable

 

(504)

 

(9,050)

Merchandise inventories

 

51,189

 

(24,995)

Prepaid expense and other assets

 

(2,882)

 

(40,646)

Landlord assets under construction

 

(27,555)

 

(27,645)

Accounts payable and accrued expenses

 

(40,073)

 

(31,707)

Deferred revenue and customer deposits

 

12,987

 

20,800

Other current liabilities

 

3,179

 

8,179

Current and non-current operating lease liability

 

(44,513)

 

(43,025)

Other non-current obligations

 

(13,761)

 

(8,036)

Net cash provided by operating activities

 

97,133

 

49,020

CASH FLOWS FROM INVESTING ACTIVITIES

 

  

 

  

Capital expenditures

 

(25,283)

 

(42,916)

Net cash used in investing activities

 

(25,283)

 

(42,916)

CASH FLOWS FROM FINANCING ACTIVITIES

 

  

 

  

Borrowing under asset based credit facility

 

302,000

 

510,000

Repayments under asset based credit facility

 

(214,500)

 

(709,970)

Borrowings under term loans

 

320,000

 

Repayments under term loans

(80,000)

Borrowing under equipment security notes

 

69,000

 

Repayments under promissory and equipment security notes

 

(4,993)

 

(31,974)

Debt issuance costs

 

(4,636)

 

Proceeds from issuance of convertible senior notes

 

 

335,000

Proceeds from issuance of warrants

 

 

51,021

Purchase of convertible note hedges

 

 

(91,857)

Debt issuance costs related to convertible senior notes

 

 

(6,349)

Repayments of convertible senior notes

(278,560)

Principal payments under finance leases

(4,399)

(3,567)

Repurchases of common stock—including commissions

 

(250,032)

 

Proceeds from exercise of stock options

 

7,223

 

29,209

Tax withholdings related to issuance of stock-based awards

(6,234)

 

(7,863)

Payments under promissory notes related to share repurchases

(892)

Net cash used in financing activities

 

(66,023)

 

(6,350)

Effects of foreign currency exchange rate translation

 

(75)

 

(124)

Net increase (decrease) in cash and cash equivalents and restricted cash equivalents

 

5,752

 

(370)

Cash and cash equivalents and restricted cash equivalents

 

  

 

  

Beginning of period—cash and cash equivalents

 

5,803

 

17,907

Beginning of period—restricted cash equivalents (construction related deposits)

 

 

7,407

Beginning of period—cash and cash equivalents and restricted cash equivalents

$

5,803

$

25,314

 

  

 

  

End of period—cash and cash equivalents

 

11,555

 

22,199

End of period—restricted cash equivalents (construction related deposits)

 

 

2,745

End of period—cash and cash equivalents and restricted cash equivalents

$

11,555

$

24,944

Non-cash transactions:

 

 

Property and equipment additions in accounts payable and accrued expenses at period-end

$

10,875

$

7,713

Landlord asset additions in accounts payable and accrued expenses at period-end

21,055

17,183

Landlord asset additions from unpaid construction related deposits

 

195

 

517

Reclassification of assets from landlord assets under construction to finance lease right-of-use assets

31,131

Issuance of non-current notes payable related to share repurchases from former employees

 

 

243

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

7

Table of Contents

RH

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1—THE COMPANY

Nature of Business

RH, a Delaware corporation, together with its subsidiaries (collectively, the “Company”), is a luxury home furnishings retailer that offers a growing number of categories including furniture, lighting, textiles, bathware, décor, outdoor and garden, and child and teen furnishings. These products are sold through the Company’s stores, catalogs and websites.

As of August 3, 2019, the Company operated a total of 70 RH Galleries and 40 RH outlet stores in 32 states, the District of Columbia and Canada, as well as 15 Waterworks showrooms throughout the United States and in the U.K., and had sourcing operations in Shanghai and Hong Kong.

Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements have been prepared from the Company’s records and, in management’s opinion, include all adjustments, consisting of normal recurring adjustments, and revisions due to the adoption of the new lease accounting standard described in Note 2—Recently Issued Accounting Standards, necessary to fairly state the Company’s financial position as of August 3, 2019, and the results of operations for the three and six months ended August 3, 2019 and August 4, 2018. The Company’s current fiscal year, which consists of 52 weeks, ends on February 1, 2020 (“fiscal 2019”).

Certain information and disclosures normally included in the notes to annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted for purposes of these interim condensed consolidated financial statements.

These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2019 (the “2018 Form 10-K”). Certain prior year amounts have been adjusted to conform to the current period presentation due to the adoption of the new lease accounting standard. Refer to Note 2—Recently Issued Accounting Standards.

The results of operations for the three and six months ended August 3, 2019 presented herein are not necessarily indicative of the results to be expected for the full fiscal year.

Revisions

As previously disclosed in our Annual Report on Form 10-K as of and for the year ended February 2, 2019, during the third quarter of fiscal 2018, management determined that the Company had incorrectly reported the impact during the fiscal year ended February 3, 2018 of retiring its common stock in accordance with Accounting Standards Codification (“ASC”) 505Equity, which resulted in the Company revising its previously issued financial statements as of and for the year ended February 3, 2018. The common stock being retired was related to shares repurchased under the Company’s equity plans. This error resulted in an overstatement of additional paid-in capital of $19.5 million, from $944.6 million as reported to $925.1 million as revised, and an overstatement of treasury stock of $19.5 million, from $1,020.1 million as reported to $1,000.6 million as revised, on the condensed consolidated balance sheet as of August 4, 2018. There was no impact on the condensed consolidated statements of income or condensed cash flows related to this misstatement. Although this error was not considered to be material to any of the previously issued financial statements, the Company has revised the accompanying unaudited interim financial statements to reflect the correction of this error.

8

Table of Contents

During the adoption process of the new lease accounting standard (refer to Note 2—Recently Issued Accounting Standards), the Company identified a lease agreement that was incorrectly accounted for as an impaired lease under ASC 420—Exit or Disposal Cost Obligations in fiscal 2017 and the first quarter of fiscal 2018. This error resulted in an overstatement of net income of $1.4 million and $0.9 million for the year ended February 3, 2018 and the six months ended August 4, 2018, respectively. This error also resulted in an overstatement of retained earnings as of February 3, 2018 of $1.4 million, from $152.4 million as reported to $151.0 million as revised, and as of August 4, 2018 of $2.3 million, from $223.5 million as reported to $221.2 million as revised, prior to the impact of the modified retrospective application of the new lease accounting standard as further discussed in Note 2. In addition, as of February 2, 2019, this error resulted in an understatement of other non-current obligations of $3.3 million, an overstatement of other current liabilities of $1.0 million and understatement of accumulated deficit of $2.3 million, from $376.8 million as reported to $379.1 million as revised. Although these errors are not considered to be material to any of the previously issued financial statements, the Company has revised the accompanying unaudited interim financial statements to reflect the correction of these errors.

In addition, during the adoption process of the new lease accounting standard, the Company identified an error in its previously reported consolidated statement of cash flows for the quarterly and annual periods in fiscal 2018. This error resulted in an understatement of $9.2 million of net cash provided by operating activities and an understatement of $9.2 million of net cash used in investing activities for each reporting period in fiscal 2018. There was no impact on the condensed consolidated balance sheets, condensed consolidated statements of income or the condensed consolidated statement of stockholders’ equity (deficit) related to this error. Although these errors are not considered to be material to any of the previously issued financial statements, the Company has revised the accompanying unaudited interim financial statements to reflect the correction of these errors.

The following are selected line items from the Company’s condensed consolidated statements of cash flows illustrating the effect of the corrections, prior to the adoption of the modified retrospective application of the new lease accounting standard (in thousands):

Six Months Ended August 4, 2018

    

As Reported

    

Adjustment

As Revised

Cash flows from operating activities:

Change in accounts payable and accrued expenses

$

(42,717)

$

9,201

$

(33,516)

Net cash provided by operating activities

 

70,229

 

9,201

 

79,430

Cash flows from investing activities:

 

Capital expenditures

 

(61,212)

 

(9,201)

 

(70,413)

Net cash used in investing activities

 

(61,212)

 

(9,201)

 

(70,413)

Nine Months Ended November 3, 2018

    

As Reported

    

Adjustment

As Revised

Cash flows from operating activities:

Change in accounts payable and accrued expenses

$

(23,601)

$

9,201

$

(14,400)

Net cash provided by operating activities

 

127,592

 

9,201

 

136,793

Cash flows from investing activities:

 

Capital expenditures

 

(104,403)

 

(9,201)

 

(113,604)

Net cash used in investing activities

 

(104,403)

 

(9,201)

 

(113,604)

Fiscal Year Ended February 2, 2019

    

As Reported

    

Adjustment

As Revised

Cash flows from operating activities:

Change in accounts payable and accrued expenses

$

(452)

$

9,201

$

8,749

Net cash provided by operating activities

 

300,556

 

9,201

 

309,757

Cash flows from investing activities:

 

Capital expenditures

 

(136,736)

 

(9,201)

 

(145,937)

Net cash used in investing activities

 

(136,736)