8-K
STEVEN MADDEN, LTD. (SHOO)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
| Date of Report (Date of earliest event<br> reported): | February<br> 24, 2022 | |
|---|---|---|
| STEVEN MADDEN, LTD. | ||
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| (Exact name of registrant as specified in<br>its chapter) | ||
| Delaware | 000-23702 | 13-3588231 |
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| (State or Other Jurisdiction<br> <br><br> of Incorporation) | (Commission File Number) | (IRS Employer<br><br> Identification No.) |
| 52-16 Barnett Avenue, Long Island City, New York 11104 | ||
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| (Address of Principal Executive Offices) (Zip Code) | ||
| Registrant’s telephone number, including area code: | (718) 446-1800 | |
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| (Former name or former address, if changed since last report) | ||
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| o | Written communications pursuant to Rule<br> 425 under the Securities Act (17 CFR 230.425) |
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| o | Soliciting material pursuant to Rule 14a-12<br> under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant<br> to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant<br> to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.0001 per share | SHOO | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
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. o
| Item 2.02. | Results of Operations and Financial Condition. |
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On February 24, 2022, Steven Madden, Ltd. (the “Company”) issued a press release, furnished as Exhibit 99.1 and incorporated into this Item 2.02 by reference, announcing the Company’s financial results for the fourth quarter and fiscal year ended December 31, 2021.
| Item 8.01. | Other Events. |
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The Company’s press release on February 24, 2022 also announced that the Company’s Board of Directors has declared a quarterly cash dividend of $0.21 per share on the Company’s outstanding shares of common stock. The dividend is payable on March 25, 2022 to stockholders of record as of the close of business on March 11, 2022.
The full text of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished, and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of Section 18. Furthermore, the information contained in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. The furnishing of the information in Item 2.02 of this Current Report is not intended to, and does not, constitute a determination or admission by the Company that the information in Item 2.02 of this Current Report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company.
| Item 9.01 | Financial Statements andExhibits. |
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(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release, dated February 24, 2022, announcing the Company’s Fourth Quarter and Full Year 2021 Results and Declaration of a Cash Dividend. |
| 104 | Cover Page Interactive Data File (formatted<br> as Inline XBRL). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: February 24, 2022
| STEVEN MADDEN, LTD. | |
|---|---|
| By: | /s/ Edward<br> R. Rosenfeld |
| Edward R. Rosenfeld | |
| Chief Executive Officer |
Exhibit 99.1
SteveMadden Announces Fourth Quarter and Full Year 2021 Results
~Increases Quarterly Cash Dividend ~
LONG ISLAND CITY, N.Y., February 24, 2022 – Steve Madden (Nasdaq: SHOO), a leading designer and marketer of fashion-forward footwear, accessories and apparel for women, men and children, today announced financial results for the fourth quarter and full year ended December 31, 2021.
Amountsreferred to as “Adjusted” exclude the items defined as “Non-GAAP Adjustments” in the “Non-GAAP Reconciliation”section.
FourthQuarter 2021 Review
| · | Revenue<br> increased 63.9% to $578.5 million compared to $353.0 million in the same period of 2020. |
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| · | Gross<br> profit as a percentage of revenue increased to 41.2% compared to 38.3% in the same period<br> of 2020. Adjusted gross profit as a percentage of revenue was 38.2% in fourth quarter 2020. |
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| · | Operating<br> expenses as a percentage of revenue decreased to 27.0% compared to 31.8% in the same period<br> of 2020. Adjusted operating expenses as a percentage of revenue decreased to 26.2% compared<br> to 30.9% in fourth quarter 2020. |
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| · | Income<br> from operations was $79.4 million, or 13.7% of revenue, compared to $21.3 million, or 6.0%<br> of revenue, in the same period of 2020. Adjusted income from operations was $86.9 million,<br> or 15.0% of revenue, compared to $25.6 million, or 7.3% of revenue, in fourth quarter 2020. |
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| · | Net<br> income attributable to Steven Madden, Ltd. was $66.0 million, or $0.81 per diluted share,<br> compared to $22.6 million, or $0.28 per diluted share, in the same period of 2020. Adjusted<br> net income attributable to Steven Madden, Ltd. was $70.4 million, or $0.87 per diluted share,<br> compared to $21.8 million, or $0.27 per diluted share, in fourth quarter 2020. |
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Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We delivered outstanding results in the fourth quarter, with revenue increasing 38% and diluted EPS more than doubling compared to 2019 – performance that reflects the strength of our brands and the robust consumer demand for the on-trend merchandise assortments created by Steve and our design teams. The exceptional momentum in our direct-to-consumer business continued, with revenue up 63% compared to 2019, and our wholesale business accelerated significantly, with revenue increasing 31% compared to 2019.
“Overall, 2021 was a record year for Steve Madden, as we recorded the highest annual revenue and earnings in our history. Looking ahead, we are confident that, by building on the strong momentum in our business and continuing the disciplined execution of our strategic initiatives, we can drive robust top- and bottom-line growth in 2022 and beyond.”
FourthQuarter 2021 Segment Results
Revenue for the wholesale business was $410.5 million, a 56.1% increase compared to the fourth quarter of 2020, with a 61.9% increase in wholesale footwear and a 41.7% increase in wholesale accessories/apparel. Gross profit as a percentage of wholesale revenue rose to 31.8% compared to 28.3% in the fourth quarter of 2020.
Direct-to-consumer revenue was $164.7 million, a 91.3% increase compared to the fourth quarter of 2020. Gross profit as a percentage of retail revenue declined to 63.5% compared to 66.2% in the fourth quarter of 2020. Adjusted gross profit as a percentage of direct-to-consumer revenue was 65.6% in fourth quarter of 2020.
The Company ended the quarter with 214 brick-and-mortar retail stores and 6 e-commerce websites, as well as 17 company-operated concessions in international markets.
FullYear Ended December 31, 2021 Review
For the full year ended December 31, 2021, revenue increased 55.3% to $1.9 billion from $1.2 billion in 2020.
Net income attributable to Steven Madden, Ltd. was $190.7 million, or $2.34 per diluted share, for the year ended December 31, 2021 compared to a net loss attributable to Steven Madden, Ltd. of ($18.4) million, or ($0.23) per basic share, for the year ended December 31, 2020. On an Adjusted basis, net income attributable to Steven Madden, Ltd. was $203.7 million, or $2.50 per diluted share, for the year ended December 31, 2021 compared to net income attributable to Steven Madden, Ltd. of $51.8 million, or $0.64 per diluted share, for the year ended December 31, 2020.
BalanceSheet and Cash Flow
As of December 31, 2021, cash, cash equivalents and short-term investments totaled $263.5 million.
During the fourth quarter of 2021, the Company repurchased 1,038,061 shares of the Company’s common stock for approximately $48.5 million, which includes shares acquired through the net settlement of employee stock awards. For the full year ended December 31, 2021, the Company repurchased 2,841,405 shares of the Company’s common stock for approximately $123.2 million, which includes shares acquired through the net settlement of employee stock awards.
IncreasedQuarterly Cash Dividend
The Company’s Board of Directors approved a quarterly cash dividend of $0.21 per share, reflecting a 40% increase over the previous quarterly dividend. The dividend is payable on March 25, 2022 to stockholders of record as of the close of business on March 11, 2022.
Fiscal2022 Outlook
For fiscal 2022, the Company expects revenue will increase 10% to 13% over fiscal 2021. The Company expects diluted EPS will be in the range of $2.66 to $2.76. The Company expects Adjusted diluted EPS will be in the range of $2.73 to $2.83.
ConferenceCall Information
Interested stockholders are invited to listen to the conference call scheduled for today, February 24, 2022 at 8:30 a.m. Eastern Time relating to fourth quarter and fiscal year 2021 earnings and fiscal 2022 outlook. The call will be broadcast live over the Internet and can be accessed by logging onto https://investor.stevemadden.com. An online archive of the broadcast will be available within two hours of the conclusion of the call and will remain available for 12 months following the live call.
AboutSteve Madden
Steve Madden designs, sources and markets fashion-forward footwear, accessories and apparel for women, men and children. In addition to marketing products under its own brands including Steve Madden®, Dolce Vita®, Betsey Johnson®, Blondo®, GREATS®, BB Dakota® and Mad Love®, Steve Madden is a licensee of various brands, including Anne Klein® and Superga®. Steve Madden also designs and sources products under private label brand names for various retailers. Steve Madden’s wholesale distribution includes department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers and independent stores. Steve Madden also operates retail stores and e-commerce websites. Steve Madden licenses certain of its brands to third parties for the marketing and sale of certain products, including outerwear, eyewear, hosiery, jewelry, hair accessories, sunglasses, swimwear, activewear, fragrance, luggage, bedding and bath products as well as other select product categories. For local store information and the latest Steve Madden boots, booties, dress shoes, fashion sneakers, sandals, slippers and more, please visit www.stevemadden.com.
SafeHarbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, among others, statements regarding revenue and earnings guidance, plans, strategies, objectives, expectations and intentions. Forward-looking statements can be identified by words such as: “may”, “will”, “expect”, “believe”, “should”, “anticipate”, “project”, “predict”, “plan”, “intend”, “estimate”, or “confident” and similar expressions or the negative of these expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent the Company’s current beliefs, expectations and assumptions regarding anticipated events and trends affecting its business and industry based on information available as of the time such statements are made. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which may be outside of the Company’s control. The Company’s actual results and financial condition may differ materially from those indicated in these forward-looking statements. As such, investors should not rely upon them. Important risk factors include:
| · | the<br> Company’s ability to maintain adequate liquidity when negatively impacted by unforeseen<br> events such as an epidemic or the ongoing COVID-19 pandemic, which may cause disruption to<br> the Company’s business operations for an indeterminable period of time; |
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| · | the<br> Company’s ability to accurately anticipate fashion trends and promptly respond to consumer<br> demand; |
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| · | the<br> Company’s ability to compete effectively in a highly competitive market; |
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| · | the<br> Company’s ability to adapt its business model to rapid changes in the retail industry; |
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| · | the<br> Company’s dependence on the retention and hiring of key personnel; |
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| · | the<br> Company’s ability to successfully implement growth strategies and integrate acquired<br> businesses; |
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| · | the<br> Company’s reliance on independent manufacturers to produce and deliver products in<br> a timely manner, especially when faced with adversities such as work stoppages, transportation<br> delays, public health emergencies, social unrest, changes in local economic conditions, and<br> political upheavals as well as meet the Company’s quality standards; |
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| · | changes<br> in trade policies and tariffs imposed by the United States government and the governments<br> of other nations in which the Company manufactures and sells products; |
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| · | disruptions<br> to product delivery systems and the Company’s ability to properly manage inventory; |
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| · | the<br> Company’s ability to adequately protect its trademarks and other intellectual property<br> rights; |
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| · | legal,<br> regulatory, political and economic risks that may affect the Company’s sales in international<br> markets; |
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| · | changes<br> in U.S. and foreign tax laws that could have an adverse effect on the Company’s financial<br> results; |
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| · | additional<br> tax liabilities resulting from audits by various taxing authorities; |
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| · | the<br> Company’s ability to achieve operating results that are consistent with prior financial<br> guidance; and |
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| · | other<br> risks and uncertainties indicated from time to time in the Company’s filings with the<br> Securities and Exchange Commission. |
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The Company does not undertake any obligation to publicly update any forward-looking statement, including, without limitation, any guidance regarding revenue or earnings, whether as a result of new information, future developments or otherwise.
STEVENMADDEN, LTD. AND SUBSIDIARIES
CONDENSEDCONSOLIDATED STATEMENT OF OPERATIONS DATA
(In thousands, except per share amounts)
| Three Months Ended | Twelve Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31,<br><br> 2021 | December 31,<br><br> 2020 | December 31,<br><br> 2021 | December 31,<br><br> 2020 | |||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
| Net sales | $ | 575,137 | $ | 349,066 | $ | 1,853,902 | $ | 1,188,943 | ||||
| Commission and licensing fee income | 3,344 | 3,901 | 12,240 | 12,871 | ||||||||
| Total revenue | 578,481 | 352,967 | 1,866,142 | 1,201,814 | ||||||||
| Cost of sales | 340,141 | 217,655 | 1,098,645 | 737,273 | ||||||||
| Gross profit | 238,340 | 135,312 | 767,497 | 464,541 | ||||||||
| Operating expenses | 155,960 | 112,224 | 519,848 | 414,978 | ||||||||
| Impairment of intangibles | 2,620 | 1,745 | 2,620 | 44,273 | ||||||||
| Impairment of lease right-of-use assets and fixed assets | 343 | — | 1,432 | 36,895 | ||||||||
| Income / (loss) from operations | 79,417 | 21,343 | 243,597 | (31,605 | ) | |||||||
| Interest and other (expense) / income, net | (513 | ) | 129 | (1,529 | ) | 1,620 | ||||||
| Income / (loss) before provision / (benefit) for income taxes | 78,904 | 21,472 | 242,068 | (29,985 | ) | |||||||
| Provision / (benefit) for income taxes | 12,781 | (2,338 | ) | 49,609 | (11,704 | ) | ||||||
| Net income / (loss) | 66,123 | 23,810 | 192,459 | (18,281 | ) | |||||||
| Less: net income attributable to noncontrolling interest | 136 | 1,219 | 1,781 | 116 | ||||||||
| Net income / (loss) attributable to Steven Madden, Ltd. | $ | 65,987 | $ | 22,591 | $ | 190,678 | $ | (18,397 | ) | |||
| Basic income / (loss) per share | $ | 0.85 | $ | 0.29 | $ | 2.43 | $ | (0.23 | ) | |||
| Diluted income / (loss) per share | $ | 0.81 | $ | 0.28 | $ | 2.34 | $ | (0.23 | ) | |||
| Basic weighted average common shares outstanding | 77,718 | 78,588 | 78,442 | 78,635 | ||||||||
| Diluted weighted average common shares outstanding | 81,207 | 81,414 | 81,628 | 78,635 | ||||||||
| Cash dividends declared per common share | $ | 0.15 | $ | — | $ | 0.60 | $ | 0.15 |
STEVENMADDEN, LTD. AND SUBSIDIARIES
CONDENSEDCONSOLIDATED BALANCE SHEET DATA
(In thousands)
| As of | ||||
|---|---|---|---|---|
| December 31,<br><br> 2021 | December 31,<br><br> 2020 | |||
| (Unaudited) | ||||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 219,499 | $ | 247,864 |
| Short-term investments | 44,037 | 39,302 | ||
| Accounts receivable, net of allowances | 26,546 | 25,044 | ||
| Factor accounts receivable | 364,982 | 252,671 | ||
| Inventories | 255,213 | 101,420 | ||
| Prepaid expenses and other current assets | 20,845 | 17,415 | ||
| Income tax receivable and prepaid income taxes | 13,538 | 14,525 | ||
| Total current assets | 944,660 | 698,241 | ||
| Note receivable – related party | 794 | 1,180 | ||
| Property and equipment, net | 35,790 | 43,268 | ||
| Operating lease right-of-use asset | 85,449 | 101,379 | ||
| Deferred tax assets | 4,581 | 5,415 | ||
| Deposits and other | 4,180 | 4,822 | ||
| Goodwill – net | 167,995 | 168,265 | ||
| Intangibles – net | 112,093 | 115,191 | ||
| Total Assets | $ | 1,355,542 | $ | 1,137,761 |
| LIABILITIES | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 136,766 | $ | 73,904 |
| Accrued expenses | 243,163 | 118,083 | ||
| Operating leases - current portion | 30,759 | 34,257 | ||
| Income taxes payable | 4,522 | 5,799 | ||
| Contingent payment liability – current portion | 5,109 | — | ||
| Accrued incentive compensation | 14,871 | 3,873 | ||
| Total current liabilities | 435,190 | 235,916 | ||
| Contingent payment liability | 6,960 | 207 | ||
| Operating leases – long-term portion | 80,072 | 98,592 | ||
| Deferred tax liabilities | 3,378 | 2,562 | ||
| Other liabilities | 9,404 | 10,115 | ||
| Total Liabilities | 535,004 | 347,392 | ||
| STOCKHOLDERS’ EQUITY | ||||
| Total Steven Madden, Ltd. stockholders’ equity | 812,098 | 776,586 | ||
| Noncontrolling interest | 8,440 | 13,783 | ||
| Total stockholders’ equity | 820,538 | 790,369 | ||
| Total Liabilities and Stockholders’ Equity | $ | 1,355,542 | $ | 1,137,761 |
STEVENMADDEN, LTD. AND SUBSIDIARIES
CONDENSEDCONSOLIDATED CASH FLOW DATA
(In thousands)
| Twelve Months Ended | ||||||
|---|---|---|---|---|---|---|
| December 31,<br><br> 2021 | December 31,<br><br> 2020 | |||||
| (Unaudited) | ||||||
| Cash flows from operating activities: | ||||||
| Net income/(loss) | $ | 192,459 | $ | (18,281 | ) | |
| Adjustments to reconcile net income/(loss) to net cash provided by operating activities | ||||||
| Stock-based compensation | 22,278 | 22,639 | ||||
| Depreciation and amortization | 15,208 | 17,360 | ||||
| Loss on disposal of fixed assets | 526 | 561 | ||||
| Impairment of intangibles | 2,620 | 44,273 | ||||
| Impairment of lease right-of-use asset and fixed assets | 1,432 | 36,895 | ||||
| Deferred taxes | 1,280 | (8,353 | ) | |||
| Accrued interest on note receivable – related party | (23 | ) | (31 | ) | ||
| Note receivable – related party | 409 | 409 | ||||
| Change in valuation of contingent liability | 11,862 | (8,917 | ) | |||
| Gain on sale of trademark | (8,000 | ) | — | |||
| Recovery of receivables, related to the Payless ShoeSource bankruptcy | (919 | ) | — | |||
| Changes, net of acquisitions, in: | ||||||
| Accounts receivable | (583 | ) | 13,122 | |||
| Factor accounts receivable | (112,311 | ) | (36,200 | ) | ||
| Inventories | (153,793 | ) | 35,476 | |||
| Prepaid expenses, income tax receivables, prepaid taxes, and other current assets | (1,899 | ) | (10,129 | ) | ||
| Accounts payable and accrued expenses | 185,741 | (34,207 | ) | |||
| Accrued incentive compensation | 10,998 | (7,061 | ) | |||
| Leases and other liabilities | (7,822 | ) | (3,350 | ) | ||
| Net cash provided by operating activities | 159,463 | 44,206 | ||||
| Cash flows from investing activities: | ||||||
| Capital expenditures | (6,608 | ) | (6,562 | ) | ||
| Purchases of short-term investments | (68,471 | ) | (73,792 | ) | ||
| Maturity/sale of marketable securities and short-term investments | 63,867 | 75,470 | ||||
| Proceeds from sale of a trademark | 8,000 | — | ||||
| Net cash used in investing activities | (3,212 | ) | (4,884 | ) | ||
| Cash flows from financing activities: | ||||||
| Proceeds from exercise of stock options | 9,732 | 1,609 | ||||
| Investment of noncontrolling interest | — | 359 | ||||
| Acquisition of incremental ownership of joint ventures | (18,942 | ) | — | |||
| Distributions to noncontrolling interest earnings | (3,121 | ) | — | |||
| Common stock purchased for treasury | (123,161 | ) | (46,583 | ) | ||
| Cash dividends paid on common stock | (49,161 | ) | (12,459 | ) | ||
| Advances from factor | — | 176,784 | ||||
| Repayments of advances from factor | — | (176,784 | ) | |||
| Net cash used in financing activities | (184,653 | ) | (57,074 | ) | ||
| Effect of exchange rate changes on cash and cash equivalents | 37 | 1,515 | ||||
| Net decrease in cash, cash equivalents | (28,365 | ) | (16,237 | ) | ||
| Cash and cash equivalents – beginning of year | 247,864 | 264,101 | ||||
| Cash and cash equivalents – end of year | $ | 219,499 | $ | 247,864 |
STEVENMADDEN, LTD. AND SUBSIDIARIES
NON-GAAPRECONCILIATION
(In thousands, except per share amounts)
(Unaudited)
The Company uses non-GAAP financial information to evaluate its operating performance and in order to represent the manner in which the Company conducts and views its business. Additionally, the Company believes the information assists investors in comparing the Company’s performance across reporting periods on a consistent basis by excluding items that are not indicative of its core business. The non-GAAP financial information is provided in addition to, and not as an alternative to, the Company’s reported results prepared in accordance with GAAP.
| Table 1 - Reconciliation<br> of GAAP gross profit to Adjusted gross profit | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three<br> Months Ended | Twelve<br> Months Ended | |||||||||||
| December<br> 31,<br><br> 2021 | December<br> 31,<br><br> 2020 | December<br> 31,<br><br> 2021 | December<br> 31,<br><br> 2020 | |||||||||
| GAAP gross profit | $ | 238,340 | $ | 135,312 | $ | 767,497 | $ | 464,541 | ||||
| Non-GAAP<br> Adjustments | — | (532 | ) | — | (532 | ) | ||||||
| Adjusted<br> gross profit | $ | 238,340 | $ | 134,780 | $ | 767,497 | $ | 464,009 | ||||
| Table<br> 2 - Reconciliation of GAAP operating expenses to Adjusted operating expenses | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Three<br> Months Ended | Twelve<br> Months Ended | |||||||||||
| December<br> 31,<br><br> 2021 | December<br> 31,<br><br> 2020 | December<br> 31,<br><br> 2021 | December<br> 31,<br><br> 2020 | |||||||||
| GAAP operating expenses | $ | 155,960 | $ | 112,224 | $ | 519,848 | $ | 414,978 | ||||
| Non-GAAP<br> Adjustments | (4,499 | ) | (3,038 | ) | (14,216 | ) | (15,985 | ) | ||||
| Adjusted<br> operating expenses | $ | 151,461 | $ | 109,186 | $ | 505,632 | $ | 398,993 | ||||
| Table<br> 3 - Reconciliation of GAAP income / (loss) from operations to Adjusted income from operations | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Three<br> Months Ended | Twelve<br> Months Ended | |||||||||||
| December<br> 31,<br><br> 2021 | December<br> 31,<br><br> 2020 | December<br> 31,<br><br> 2021 | December<br> 31,<br><br> 2020 | |||||||||
| GAAP income / (loss)<br> from operations | $ | 79,417 | $ | 21,343 | $ | 243,597 | $ | (31,605 | ) | |||
| Non-GAAP<br> Adjustments | 7,462 | 4,251 | 18,267 | 96,621 | ||||||||
| Adjusted<br> income from operations | $ | 86,879 | $ | 25,594 | $ | 261,864 | $ | 65,016 | ||||
| Table<br> 4 - Reconciliation of GAAP interest and other (expense) / income, net to Adjusted interest and other (expense) / income, net | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Three<br> Months Ended | Twelve<br> Months Ended | |||||||||||
| December<br> 31,<br><br> 2021 | December<br> 31,<br><br> 2020 | December<br> 31,<br><br> 2021 | December<br> 31,<br><br> 2020 | |||||||||
| GAAP interest and<br> other (expense) / income, net | $ | (513 | ) | $ | 129 | $ | (1,529 | ) | $ | 1,620 | ||
| Non-GAAP<br> Adjustments | — | — | 500 | — | ||||||||
| Adjusted<br> interest and other (expense) / income, net | $ | (513 | ) | $ | 129 | $ | (1,029 | ) | $ | 1,620 | ||
| Table<br> 5 - Reconciliation of GAAP provision / (benefit) for income taxes to Adjusted provision for income taxes | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Three<br> Months Ended | Twelve<br> Months Ended | |||||||||||
| December<br> 31,<br><br> 2021 | December<br> 31,<br><br> 2020 | December<br> 31,<br><br> 2021 | December<br> 31,<br><br> 2020 | |||||||||
| GAAP provision /<br> (benefit) for income taxes | $ | 12,781 | $ | (2,338 | ) | $ | 49,609 | $ | (11,704 | ) | ||
| Non-GAAP<br> Adjustments | 3,015 | 5,763 | 5,726 | 25,453 | ||||||||
| Adjusted<br> provision for income taxes | $ | 15,796 | $ | 3,425 | $ | 55,335 | $ | 13,749 | ||||
| Table<br> 6 - Reconciliation of GAAP net income attributable to noncontrolling interest to Adjusted net income attributable to noncontrolling<br> interest | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Three<br> Months Ended | Twelve<br> Months Ended | |||||||||||
| December<br> 31,<br><br> 2021 | December<br> 31,<br><br> 2020 | December<br> 31,<br><br> 2021 | December<br> 31,<br><br> 2020 | |||||||||
| GAAP net income<br> attributable to noncontrolling interest | $ | 136 | $ | 1,219 | $ | 1,781 | $ | 116 | ||||
| Non-GAAP<br> Adjustments | 13 | (698 | ) | 37 | 933 | |||||||
| Adjusted<br> net income attributable to noncontrolling interest | $ | 149 | $ | 521 | $ | 1,818 | $ | 1,049 | ||||
| Table 7 - Reconciliation of GAAP net income / (loss) attributable to Steve Madden, Ltd. to Adjusted net income attributable to Steve Madden, Ltd. | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Three Months Ended | Twelve Months Ended | |||||||||||
| December 31,<br><br> 2021 | December 31,<br><br> 2020 | December 31,<br><br> 2021 | December 31,<br><br> 2020 | |||||||||
| GAAP net income / (loss) attributable to Steven Madden, Ltd. | $ | 65,987 | $ | 22,591 | $ | 190,678 | $ | (18,397 | ) | |||
| Non-GAAP Adjustments | 4,433 | (814 | ) | 13,004 | 70,233 | |||||||
| Adjusted net income attributable to Steven Madden, Ltd. | $ | 70,420 | $ | 21,777 | $ | 203,682 | $ | 51,836 | ||||
| GAAP diluted income / (loss) per share | $ | 0.81 | $ | 0.28 | $ | 2.34 | $ | (0.23 | ) | |||
| Adjusted diluted income per share | $ | 0.87 | $ | 0.27 | $ | 2.50 | $ | 0.64 |
Non-GAAP Adjustments include the items below.
For the fourth quarter 2021:
| · | $4.0<br> million pre-tax ($3.1 million after-tax) expense in connection with the change in valuation<br> of contingent considerations, included in operating expenses. |
|---|---|
| · | $2.6<br> million pre-tax ($2.0 million after-tax) expense in connection with the impairment of a trademark. |
| --- | --- |
| · | $0.4<br> million pre-tax ($0.2 million after-tax) expense in connection with a sublease and related<br> exit costs, included in operating expenses. |
| --- | --- |
| · | $0.3<br> million pre-tax ($0.3 million after-tax) expense in connection with the impairment of fixed<br> assets and lease right-of-use assets. |
| --- | --- |
| · | $0.1<br> million pre-tax ($0.1 million after-tax) expense in connection with restructuring and related<br> charges, included in operating expenses. |
| --- | --- |
| · | $1.3<br> million tax benefit in connection with the release of a liability for an uncertain tax position. |
| --- | --- |
For the fourth quarter 2020:
| · | $5.1<br> million pre-tax ($3.9 million after-tax) expense in connection with rent restructuring of<br> various leases, included in operating expenses. |
|---|---|
| · | $1.7<br> million pre-tax ($1.4 million after-tax) expense in connection with the impairment of a trademark. |
| --- | --- |
| · | $1.2<br> million pre-tax ($0.9 million after-tax) benefit in connection with the change in valuation<br> of contingent considerations, included in operating expenses. |
| --- | --- |
| · | $1.1<br> million pre-tax ($0.9 million after-tax) benefit in connection with the recovery from the<br> Payless ShoeSource bankruptcy, included in operating expenses. |
| --- | --- |
| · | $0.5<br> million pre-tax ($0.4 million after-tax) benefit in connection with the termination of a<br> joint venture, included in cost of goods sold. |
| --- | --- |
| · | $0.2<br> million pre-tax ($0.2 million after-tax) expense in connection with restructuring and related<br> charges, included in operating expenses. |
| --- | --- |
| · | $4.2<br> million tax benefit in connection with the net operating loss carryback provision of the<br> CARES Act. |
| --- | --- |
| · | $0.5<br> million tax benefit in connection with the tax treatment of a prior-year bad debt. |
| --- | --- |
| · | $0.7<br> million benefit in connection with adjustments attributable to noncontrolling interest. |
| --- | --- |
For the fiscal year 2021:
| · | $11.9<br> million pre-tax ($9.1 million after-tax) expense in connection with the change in valuation<br> of contingent considerations, included in operating expenses. |
|---|---|
| · | $9.9<br> million pre-tax ($7.4 million after-tax) expense in connection with rent restructuring of<br> various leases, included in operating expenses. |
| --- | --- |
| · | $8.0<br> million pre-tax ($6.1 million after-tax) benefit in connection with the sale of a trademark,<br> included in operating expenses. |
| --- | --- |
| · | $2.6<br> million pre-tax ($2.0 million after-tax) expense in connection with the impairment of a trademark. |
| --- | --- |
| · | $1.5<br> million pre-tax ($1.2 million after-tax) expense in connection with restructuring and related<br> charges, included in operating expenses. |
| --- | --- |
| · | $1.4<br> million pre-tax ($0.9 million after-tax) expense in connection with the impairment of fixed<br> assets and lease right-of-use assets. |
| --- | --- |
| · | $0.9<br> million pre-tax ($0.7 million after-tax) benefit in connection with a recovery in connection<br> with the Payless ShoeSource bankruptcy, included in operating expenses. |
| --- | --- |
| · | $0.5<br> million pre-tax ($0.4 million after-tax) expense in connection with the write-off of an investment,<br> included in interest and other (expense) / income, net. |
| --- | --- |
| · | $1.3<br> million tax benefit in connection with the release of a liability for an uncertain tax position. |
| --- | --- |
For the fiscal year 2020:
| · | $44.3<br> million pre-tax ($33.8 million after-tax) expense in connection with the impairment of certain<br> trademarks. |
|---|---|
| · | $36.9<br> million pre-tax ($27.9 million after-tax) expense in connection with the impairment of fixed<br> assets and lease right-of-use assets. |
| --- | --- |
| · | $13.5<br> million pre-tax ($10.3 million after-tax) expense in connection with rent restructuring of<br> various leases, included in operating expenses. |
| --- | --- |
| · | $7.1<br> million pre-tax ($5.4 million after-tax) expense in connection with restructuring and related<br> charges, included in operating expenses. |
| --- | --- |
| · | $6.2<br> million pre-tax ($4.8 million after-tax) benefit in connection with the change in valuation<br> of contingent considerations, included in operating expenses. |
| --- | --- |
| · | $2.0<br> million pre-tax ($1.5 million after-tax) expense in connection with benefits provided to<br> furloughed employees, included in operating expenses. |
| --- | --- |
| · | $1.1<br> million pre-tax ($0.9 million after-tax) benefit in connection with the recovery from the<br> Payless ShoeSource bankruptcy, included in operating expenses. |
| --- | --- |
| · | $0.7<br> million pre-tax ($0.5 million after-tax) expense in connection with a provision for a loan<br> receivable, included in operating expenses. |
| --- | --- |
| · | $0.5<br> million pre-tax ($0.4 million after-tax) benefit in connection with the termination of a<br> joint venture, included in cost of goods sold. |
| --- | --- |
| · | $0.9<br> million loss in connection with adjustments attributable to noncontrolling interest. |
| --- | --- |
| · | $4.2<br> million tax benefit in connection with the net operating loss carryback provision of the<br> CARES Act. |
| --- | --- |
| · | $1.9<br> million net tax expense in connection with deferred and foreign uncertain tax position adjustments. |
| --- | --- |
For the fiscal year 2022 outlook:
| · | $7.1<br> million pre-tax ($5.3 million after-tax) expense in connection with the accelerated amortization<br> of a trademark. |
|---|
Contact
Steven Madden, Ltd.
Director of Corporate Development & Investor Relations
Danielle McCoy
718-308-2611
InvestorRelations@stevemadden.com