EX-99.3 4 supplementalexhibit993fi.htm EXHIBIT 99.3 supplementalexhibit993fi
Exhibit 99.3 Supplemental Reconciliation Data The following pages present reconciliations in support of the amounts presented on page 12 of the Supplemental Slide package included in Exhibit 99.2


 
ascena retail group, inc. Reconciliation of reported earnings to post disposition entity Fiscal Year 2018 Proceeds expected to Ascena Ascena Less Corp. Expenses be received under as adjusted Fiscal 2018 Non - GAAP Adjusted results, Value Fashion included in Value maurices Transition without Value as reported (a) Items (b) as reported Segment (c) Fashion Segment (d) Services agreement (e) Fashion segment Net sales $ 6,578.3 $ (112.8) $ 6,465.5 $ 1,787.9 $ - $ - $ 4,677.6 Cost of goods sold (2,786.8) 51.1 (2,735.7) (806.5) - - (1,929.2) Gross Margin 3,791.5 (61.7) 3,729.8 981.4 - - 2,748.4 Buying, distribution and occupancy expenses (1,281.1) 4.2 (1,276.9) (354.2) (1.8) - (924.5) Selling, general and administrative expenses (2,036.7) 45.8 (1,990.9) (596.4) (84.7) 26.5 (1,452.7) Acquisition and integration expenses (5.4) 5.4 - - - - - Restructuring and other related charges (78.5) 78.5 - - - - - Depreciation and amortization expenses (355.5) 6.0 (349.5) (104.3) (40.3) - (285.5) Operating income 34.3 78.2 112.5 (73.5) (126.8) 26.5 85.7 Interest expense (113.0) Interest and other income, net 2.2 Adjusted EBITDA Calculation: Loss on extinguishement of debt (5.0) Operating income 85.7 Depreciation and amortization expense 285.5 Loss before benefit for income taxes (81.5) EBITDA 371.2 Benefit for income taxes 41.8 Net loss $ (39.7) Net loss per basic and diluted common share (0.20) Weighted average basic and dliuted shares outstanding 196.0 See accompanying notes


 
ascena retail group, inc. Reconciliation of reported earnings to post disposition entity Fiscal Year 2017 Proceeds expected to Ascena Ascena Less Corp. Expenses be received under as adjusted Fiscal 2018 Non - GAAP Adjusted results, Value Fashion included in Value maurices Transition without Value as reported (a) Items (b) as reported Segment (f) Fashion Segment (d) Services agreement (e) Fashion segment Net sales $ 6,649.8 $ 2.7 $ 6,652.5 $ 1,950.2 $ - $ - $ 4,702.3 Cost of goods sold (2,790.2) - (2,790.2) (852.4) - - (1,937.8) Gross Margin 3,859.6 2.7 3,862.3 1,097.8 - - 2,764.5 Buying, distribution and occupancy expenses (1,274.3) 2.8 (1,271.5) (366.0) (1.0) - (906.5) Selling, general and administrative expenses (2,068.5) 6.3 (2,062.2) (608.4) (71.5) 26.5 (1,498.8) Acquisition and integration expenses (39.4) 39.4 - - - - - Restructuring and other related charges (81.9) 81.9 - - - - - Impaiment of goodwill (596.3) 596.3 - - - - - Impairment of intangible assets (728.1) 728.1 - - - - - Depreciation and amortization expenses (384.9) 32.1 (352.8) (111.2) (35.1) - (276.7) Operating (loss) income (1,313.8) 1,489.6 175.8 12.2 (107.6) 26.5 82.5 Interest expense (102.2) Interest and other income, net 1.8 EBITDA Calculation: Loss on extinguishement of debt - Operating income 82.5 Depreciation and amortization expense 276.7 Loss before benefit for income taxes (1,414.2) EBITDA 359.2 Benefit for income taxes 346.9 Net loss $ (1,067.3) Net loss per basic and diluted common share (5.48) 194.8 See accompanying notes


 
ascena retail group, inc. Reconciliation of reported earnings to post disposition entity Trailing Twelve Months ended May 4, 2019 Note: This reconciliation presents the results of all of the Company's operations, inclusive of maurices, over the last twelve months ended as of May 4, 2019. Ascena Less: Add: Add: Fiscal 2018 9 months FY 18 9 months FY 19 9 months FY 19 Non - GAAP Adjusted results, as reported (a) as reported (g) as reported (h) maurices (i) Subtotal Items (j) as reported Net sales $ 6,578.3 $ 4,812.0 $ 4,039.2 $ 749.4 $ 6,554.9 $ (88.4) $ 6,466.5 Cost of goods sold (2,786.8) (2,035.3) (1,767.1) (335.4) (2,854.0) 38.2 (2,815.8) Gross Margin 3,791.5 2,776.7 2,272.1 414.0 3,700.9 (50.2) 3,650.7 Buying, distribution and occupancy expenses (1,281.1) (956.7) (845.1) (94.6) (1,264.1) 3.1 (1,261.0) Selling, general and administrative expenses (2,036.7) (1,509.6) (1,363.2) (200.3) (2,090.6) 51.7 (2,038.9) Acquisition and integration expenses (5.4) (5.4) - - - - - Restructuring and other related charges (78.5) (59.1) (29.1) (0.2) (48.7) 48.7 - Impairment of goodwill - - (115.1) - (115.1) 115.1 - Impairment of other intangible assets - - (25.0) - (25.0) 25.0 - Depreciation and amortization expenses (355.5) (264.7) (221.5) (21.9) (334.2) (0.1) (334.3) Operating income 34.3 (18.8) (326.9) 97.0 (176.8) 193.3 16.5 Interest expense (113.0) Interest and other income, net 2.2 EBITDA Calculation: Loss on extinguishement of debt (5.0) Operating income 16.5 Depreciation and amortization expense 334.3 Loss before benefit for income taxes (81.5) EBITDA 350.8 Benefit for income taxes 41.8 Net loss $ (39.7) Net loss per basic and diluted common share (0.20) Weighted average basic and dliuted shares outstanding 196.0 See accompanying notes


 
ascena retail group, inc. Footnotes to reconciliation of historical reported financial results to results excluding Value Fashion segment (a) - Represents historical financial statements of the Company as filed in its Form 10-K for the fiscal year ended August 4, 2018 ("Fiscal 2018 10-K") (b) - Represents adjustments to historical results as presented in the Company's Fiscal 2018 year end earnings release on September 24, 2018 and filed on Form 8-K dated September 24, 2018 (c) - Represents historical financial results of the Value Fashioin segment as reported in the Fiscal 2018 10-K, adjusted for the impact of the 53rd week recorded in Fiscal 2018 and the store-related asset impairment charge recorded by dressbarn in the third quarter of Fiscal 2018. Refer to the Form 8-K dated September 24, 2018 for additional information (d) - Represents historical corporate expenses previously allocated to the Value Fashion segment which will be re-allocated to the remaining segments for presentation purposes (e) - Represented the amount to be received under the transition services agreement and management services agreement entered into in connection with the May 6, 2019 sale of maurices (f) - Represents historical financial results of the Value Fashioin segment as reported in the Fiscal 2018 10-K (g) - Represents historical financial statements of the Company as filed in its Form 10-Q for the fiscal quarter ended April 28, 2018 (h) - Represents historical financial statements of the Company's continuing operations as filed in its Form 10-Q for the fiscal quarter ended May 4, 2019 (i) - Represents historical financial statements of maurices. Refer to Note 2 to the condensed consolidated financial statements in the Form 10-Q for the fiscal quarter ended May 4, 2019 (j) - Represents adjustments to historical results as presented in the Company's earnings release for the fourth quarter of Fiscal 2018 and the third quarter of Fiscal 2019. Refer to the Company's Current Report on Form 8-K filed September 24, 2018 and Current Report on Form 8-k filed on June 10, 2019 for more information