Exhibit 99.1

J. C. PENNEY COMPANY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

     Month Ended     Four Months Ended  
     June 6,     June 8,     June 6,     June 8,  
(In millions, except per share data)    2020     2019     2020     2019  

Total net sales

   $ 266     $ 1,003     $ 1,348     $ 3,442  

Credit income and other

     7       32       121       148  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     273       1,035       1,469       3,590  

Costs and expenses/(income):

        

Cost of goods sold (exclusive of depreciation and amortization shown separately below)

     166       645       979       2,275  

Selling, general and administrative (SG&A)

     113       313       685       1,169  

Depreciation and amortization

     50       56       185       203  

Real estate and other, net

     (3     6       (5     1  

Restructuring and management transition

     7       2       162       22  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     333       1,022       2,006       3,670  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income/(loss)

     (60     13       (537     (80

Other components of net periodic pension cost/(income)

     (8     (4     (31     (18

Net interest expense

     25       27       100       100  

Loss due to discontinuance of hedge accounting

                 77        

Reorganization items, net

     72             72        
  

 

 

   

 

 

   

 

 

   

 

 

 

Income/(loss) before income taxes

     (149     (10     (755     (162

Income tax expense/(benefit)

     (1     1       (61     3  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income/(loss)

   $ (148   $ (11   $ (694   $ (165
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings/(loss) per share - basic

   $ (0.46   $ (0.03   $ (2.14   $ (0.52

Earnings/(loss) per share - diluted

   $ (0.46   $ (0.03   $ (2.14   $ (0.52


J. C. PENNEY COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

     June 6,     June 8,  
     2020     2019  

(In millions)

            

Assets

    

Current assets:

    

Cash in banks and in transit

   $ 154     $ 148  

Cash short-term investments

     583       7  
  

 

 

   

 

 

 

Cash and cash equivalents

     737       155  

Merchandise inventory

     2,124       2,398  

Prepaid expenses and other

     300       297  
  

 

 

   

 

 

 

Total current assets

     3,161       2,850  

Property and equipment, net

     3,306       3,626  

Operating lease assets

     929       912  

Prepaid pension

     144       159  

Other assets

     626       662  
  

 

 

   

 

 

 

Total assets

   $ 8,166     $ 8,209  
  

 

 

   

 

 

 

Liabilities and stockholders’ equity

    

Current liabilities:

    

Merchandise accounts payable

   $ 583     $ 807  

Other accounts payable and accrued expenses

     919       881  

Current operating lease liabilities

     101       83  

Current portion of finance leases and note payable

           2  

Current portion of long-term debt, net

     4,884       92  
  

 

 

   

 

 

 

Total current liabilities

     6,487       1,865  

Noncurrent operating lease liabilities

     1,080       1,076  

Long-term debt

           3,793  

Deferred taxes

     47       119  

Other liabilities

     355       330  
  

 

 

   

 

 

 

Total liabilities

     7,969       7,183  

Stockholders’ equity

    

Common stock

     161       159  

Additional paid-in capital

     4,721       4,719  

Reinvested earnings/(accumulated deficit)

     (4,363     (3,566

Accumulated other comprehensive income/(loss)

     (322     (286
  

 

 

   

 

 

 

Total stockholders’ equity

     197       1,026  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 8,166     $ 8,209  
  

 

 

   

 

 

 


J. C. PENNEY COMPANY, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

 

                         Reinvested     Accumulated        
     Number of             Additional     Earnings/     Other        
     Common      Common      Paid-in     (Accumulated     Comprehensive     Total Stockholders’  
(In millions)    Shares      Stock      Capital     Deficit)     Income/(Loss)     Equity  

February 1, 2020

     320.5      $ 160      $ 4,723     $ (3,667   $ (387   $ 829  

Net income/(loss)

                         (546           (546

Discontinuance of hedge accounting

                               63       63  

Other comprehensive income/(loss)

                               1       1  

Stock-based compensation and other

     1.4        1        2       (2           1  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

May 2, 2020

     321.9        161        4,725       (4,215     (323     348  

Net income/(loss)

                         (148           (148

Other comprehensive income/(loss)

                               1       1  

Stock-based compensation and other

                   (4                 (4
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

June 6, 2020

     321.9      $ 161      $ 4,721     $ (4,363   $ (322   $ 196  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
                         Reinvested     Accumulated        
     Number of             Additional     Earnings/     Other        
     Common      Common      Paid-in     (Accumulated     Comprehensive     Total Stockholders’  
(In millions)    Shares      Stock      Capital     Deficit)     Income/(Loss)     Equity  

February 2, 2019

     316.1      $ 158      $ 4,713     $ (3,373   $ (328   $ 1,170  

ASC 842 (Leases) and ASU 2018-02 (Stranded Taxes) adoption

                         (26     53       27  

Net income/(loss)

                         (154           (154

Other comprehensive income/(loss)

                               (11     (11

Stock-based compensation and other

     0.7               2                   2  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

May 4, 2019

     316.8        158        4,715       (3,553     (286     1,034  

Net income/(loss)

                         (11           (11

Stock-based compensation and other

     0.3        1        4       (2           3  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

June 8, 2019

     317.1      $ 159      $ 4,719     $ (3,566   $ (286   $ 1,026  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 


J. C. PENNEY COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

     Month Ended     Four Months Ended  
     June 6,     June 8,     June 6,     June 8,  
(In millions)    2020     2019     2020     2019  

Cash flows from operating activities:

        

Net income/(loss)

   $ (148   $ (11   $ (694   $ (165

Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:

        

Restructuring and management transition

                 139       15  

Net gain on sale of operating assets

           7             3  

Discontinuance of hedge accounting

                 77        

Depreciation and amortization

     50       56       185       203  

Benefit plans

     (5     (9     (27     (23

Stock-based compensation

     (5     3       (3     5  

Deferred taxes

                 (60     (3

Change in cash from:

        

Inventory

     97       79       42       39  

Prepaid expenses and other assets

     (28     (10     (126     (108

Merchandise accounts payable

     4       (35     (203     (40

Income taxes

           (4     (1     (1

Accrued expenses and other

     124       (44     (54     (98
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by/(used in) operating activities

     89       32       (725     (173
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

        

Capital expenditures

           (18     (33     (89

Proceeds from sale of operating assets

           4             12  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by/(used in) investing activities

           (14     (33     (77
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

        

Proceeds from borrowings under the credit facility

           221       1,950       629  

Payments of borrowings under the credit facility

           (255     (771     (545

Payments of finance leases and note payable

                 (1     (1

Payments of long-term debt

                 (19     (11

Debtor-in-possession financing costs

     (50           (50      
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by/(used in) financing activities

     (50     (34     1,109       72  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase/(decrease) in cash and cash equivalents

     39       (16     351       (178

Cash and cash equivalents at beginning of period

     698       171       386       333  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 737     $ 155     $ 737     $ 155  
  

 

 

   

 

 

   

 

 

   

 

 

 


LOGO

 

LOGO

  (1)    

4-Wall EBITDA is an internal store performance metric, which excludes most corporate overhead and other fixed allocated costs. Monthly 4-Wall EBITDA numbers do not reflect certain allocations made only on an annual basis.

 

 

LOGO

  (1)    

Operating Profit is an internal store performance metric, which excludes most corporate overhead and other fixed allocated costs.

 


LOGO

  (1)    

Controllable expenses include store salaries, facilities expenses and utilities expenses, among others.

 

LOGO

  (1)    

Noncontrollable expenses include expenses relating to marketing, display, maintenance and repairs, among others.

 

LOGO


LOGO

LOGO

  (1)    

4-Wall EBITDA is an internal store performance metric, which excludes most corporate overhead and other fixed allocated costs. Monthly 4-Wall EBITDA numbers do not reflect certain allocations made only on an annual basis.

 

 

LOGO

  (1)    

Operating Profit is an internal store performance metric, which excludes most corporate overhead and other fixed allocated costs.

 


LOGO

  (1)    

Controllable expenses include store salaries, facilities expenses and utilities expenses, among others.

 

 

LOGO

  (1)    

Noncontrollable expenses include expenses relating to marketing, display, maintenance and repairs, among others.

 

 

LOGO


LOGO

LOGO

  (1)    

4-Wall EBITDA is an internal store performance metric, which excludes most corporate overhead and other fixed allocated costs. Monthly 4-Wall EBITDA numbers do not reflect certain allocations made only on an annual basis.

 

 

LOGO

  (1)    

Operating Profit is an internal store performance metric, which excludes most corporate overhead and other fixed allocated costs.

 


LOGO

  (1)    

Controllable expenses include store salaries, facilities expenses and utilities expenses, among others.

 

LOGO

  (1)    

Noncontrollable expenses include expenses relating to marketing, display, maintenance and repairs, among others.

 

 

LOGO


LOGO

 

LOGO

  (1)    

4-Wall EBITDA is an internal store performance metric, which excludes most corporate overhead and other fixed allocated costs. Monthly 4-Wall EBITDA numbers do not reflect certain allocations made only on an annual basis.

 

LOGO

  (1)    

Operating Profit is an internal store performance metric, which excludes most corporate overhead and other fixed allocated costs.

 


LOGO

  (1)    

Controllable expenses include store salaries, facilities expenses and utilities expenses, among others.

 

LOGO

  (1)    

Noncontrollable expenses include expenses relating to marketing, display, maintenance and repairs, among others.

 

LOGO