Kirkland's 10-Q: Credit Agreements and Financial Update

TL;DR

Kirkland's 10-Q shows new credit deals and financial data. Keep an eye on debt.

AI Summary

Kirkland's, Inc. filed a 10-Q for the period ending November 2, 2024. The company reported on its financial performance and disclosed details regarding its credit agreements, including a Beyond Credit Agreement entered into on October 21, 2024, and a Term Loan Credit Agreement dated January 25, 2024. The filing also references retained earnings as of January 29, 2023.

Why It Matters

This filing provides insight into Kirkland's financial health and its debt structure, which can impact its operational flexibility and future investment capabilities.

Risk Assessment

Risk Level: medium — The company's financial performance and debt structure, as detailed in the 10-Q, present potential risks.

Key Numbers

• 2024-11-02 — Reporting Period End Date (Indicates the latest financial data available.)
• 2024-10-21 — Beyond Credit Agreement Date (Marks a significant financing event.)
• 2024-01-25 — Term Loan Credit Agreement Date (Details a key debt instrument.)

Key Players & Entities

• Kirkland's, Inc. (company) — Filer of the 10-Q
• November 2, 2024 (date) — End of reporting period
• October 21, 2024 (date) — Date of Beyond Credit Agreement
• January 25, 2024 (date) — Date of Term Loan Credit Agreement
• January 29, 2023 (date) — Date for retained earnings

FAQ

Filing Documents

• kirk-20241102.htm (10-Q) — 1614KB
• kirk-ex31_1.htm (EX-31.1) — 14KB
• kirk-ex31_2.htm (EX-31.2) — 14KB
• kirk-ex32_1.htm (EX-32.1) — 8KB
• kirk-ex32_2.htm (EX-32.2) — 8KB
• img245230104_0.jpg (GRAPHIC) — 80KB
• 0000950170-24-134116.txt ( ) — 5253KB
• kirk-20241102.xsd (EX-101.SCH) — 646KB
• kirk-20241102_htm.xml (XML) — 607KB

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets (Unaudited) as of November 2, 2024, February 3, 2024, and October 28, 2023 3 Condensed Consolidated Statements of Operations (Unaudited) for the 13-week and 39-week periods ended November 2, 2024 and October 28, 2023 4 Condensed Consolidated Statements of Shareholders' (Deficit) Equity (Unaudited) for the 13-week and 39-week periods ended November 2, 2024 and October 28, 2023 5 Condensed Consolidated Statements of Cash Flows (Unaudited) for the 39-week periods ended November 2, 2024 and October 28, 2023 6 Notes to Condensed Consolidated Financial Statements (Unaudited) 7 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 23 PART II OTHER INFORMATION 24 Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25 Item 5. Other Information 25 Item 6. Exhibits 25

SIGNATURES

SIGNATURES 26 2 Table of Contents

- FINANC IAL INFORMATION

PART I - FINANC IAL INFORMATION

FINANC IAL STATEMENTS

ITEM 1. FINANC IAL STATEMENTS KIRKLAND'S, INC. CONDENSED CONSOLIDATED BA LANCE SHEETS (UNAUDITED) (in thousands, except share data) November 2, February 3, October 28, 2024 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 6,756 $ 3,805 $ 5,765 Inventories, net 111,219 74,090 105,190 Prepaid expenses and other current assets 6,494 7,614 5,863 Total current assets 124,469 85,509 116,818 Property and equipment: Equipment 19,067 19,144 19,556 Furniture and fixtures 62,846 63,823 65,302 Leasehold improvements 99,923 100,393 101,925 Computer software and hardware 78,765 78,580 83,236 Projects in progress 526 647 643 Property and equipment, gross 261,127 262,587 270,662 Accumulated depreciation ( 237,289 ) ( 232,882 ) ( 239,014 ) Property and equipment, net 23,838 29,705 31,648 Operating lease right-of-use assets 123,916 126,725 130,513 Other assets 7,591 8,634 6,848 Total assets $ 279,814 $ 250,573 $ 285,827 LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY Current liabilities: Accounts payable $ 61,177 $ 46,010 $ 55,729 Accrued expenses 23,830 23,163 23,484 Operating lease liabilities 38,541 40,018 39,966 Total current liabilities 123,548 109,191 119,179 Operating lease liabilities 99,222 99,772 108,248 Long-term debt, net 80,397 34,000 62,000 Other liabilities 3,779 4,486 3,685 Total liabilities 306,946 247,449 293,112 Shareholders' (deficit) equity: Preferred stock, no par value, 10,000,000 shares authorized; no shares issued or outstanding at November 2, 2024, February 3, 2024, and October 28, 2023, respectively — — — Common stock, no par value; 100,000,000 shares authorized; 13,117,942 ; 12,926,022 ; and 12,923,677 , shares issued and outstanding at November 2, 2024, February 3, 2024, and October 28, 2023, respecti

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View this 10-Q filing on SEC EDGAR