Restoration Hardware 2012 Annual Report Download - page 165

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Retail Store Closures
In June and July 2011, the Company closed four retail store locations prior to their respective lease
termination dates. As a result, during fiscal 2011, the Company incurred $3.2 million in exit related costs,
including contract termination fees, one-time employee termination benefits and other associated costs. During
fiscal 2012, the Company recorded income of $0.4 million related to a change in estimate of liabilities related to
closed stores. At February 2, 2013, the Company had remaining future liabilities existing under the lease
agreements of $0.3 million which consist of contract termination fees. The Company does not expect to incur
additional costs associated with these retail store closures in future periods.
NOTE 18—SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
Quarterly financial data for fiscal 2012 and fiscal 2011 are set forth below (in thousands, except share and
per share amounts):
Three Months Ended
Fiscal 2012
April 28,
2012
July 28,
2012
October 27,
2012
February 2,
2013
Net revenues $217,914 $292,906 $284,171 $ 398,055
Gross profit 75,268 114,127 101,880 145,174
Net income (loss) (3,728) 17,616 1,685 (28,362)
Weighted-average shares used in computing
basic and diluted net income (loss) per share 1,000 1,000 1,000 35,692,064
Basic and diluted net income (loss) per share $ (3,728) $ 17,616 $ 1,685 $ (0.79)
Three Months Ended
Fiscal 2011
April 30,
2011
July 30,
2011
October 29,
2011
January 28,
2012
Net revenues $184,760 $235,623 $232,459 $305,242
Gross profit 63,184 91,246 84,393 117,526
Net income (loss) (6,218) 7,582 (4,830) 24,054
Weighted-average shares used in computing basic
and diluted net income (loss) per share 100 100 674 1,000
Basic and diluted net income (loss) per share $ (62,180) $ 75,820 $ (7,166) $ 24,054
The three months ended February 2, 2013 includes (i) a $92.0 million non-cash compensation charge related
to equity grants at the time of the Reorganization, (ii) a non-cash compensation charge of $23.1 million related to
the performance-based vesting of certain shares granted to Mr. Alberini and Mr. Friedman, (iii) costs incurred in
connection with the initial public offering, including a fee of $7.0 million to Catterton, Tower Three and Glenhill
in accordance with the Company’s management services agreement, payments of $2.2 million to certain former
executives and bonus payments to employees of $1.3 million and (iv) $3.3 million incurred as a result of
increased tariff obligations of one of the Company’s foreign suppliers following the U.S. Department of
Commerce’s review of the anti-dumping duty order on wooden bedroom furniture from China for the period
from January 1, 2011 through December 31, 2011. In addition, as of the end of fiscal 2012, the Company’s U.S.
operations had returned to a position of cumulative profits (adjusted for permanent differences) for the most
recent three-year period. The Company concluded that this record of cumulative profitability in recent years,
coupled with its business plan for profitability in future periods, provided assurance that the Company’s future
tax benefits more likely than not would be realized. Accordingly, in the three months ended February 2, 2013, the
Company released all of its U.S. valuation allowance of $57.2 million against net deferred tax assets.
109
Form 10-K