<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended April 29, 2000
-------------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended _______________________to _______________________
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Commission File No.0-20234
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Today's Man, Inc.
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(Exact name of registrant as specified in its charter)
Pennsylvania 23-1743137
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(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
835 Lancer Drive, Moorestown, NJ 08057
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number 856-235-5656
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Not Applicable
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Former name, former address and former fiscal year,
if changed since last report
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days.
YES X NO .
--------- ------------
APPLICABLE ONLY TO REGISTRANTS INVOLVED IN A BANKRUPTCY DURING THE PRECEDING
FIVE YEARS
Indicate by check mark whether the Registrant has filed all documents
and reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
YES X NO .
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27,040,725 common shares were outstanding as of June 8, 2000.
<PAGE>
TODAY'S MAN INC.
----------------
INDEX
-----
<TABLE>
<CAPTION>
PAGE
----
<S> <C> <C>
PART I. FINANCIAL INFORMATION:
Item 1. Condensed Consolidated Financial Statements - Unaudited
Consolidated Balance Sheets
April 29, 2000 and January 29, 2000......................................................1
Consolidated Statements of Operations
Thirteen weeks ended April 29, 2000 and May 1, 1999......................................2
Consolidated Statements of Cash Flows
Thirteen weeks ended April 29, 2000 and May 1, 1999......................................3
Notes to Consolidated Financial Statements.............................................4-5
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations..............................................................6-9
Item 3. Quantitative and Qualitative Disclosures about Market Risks.............................10
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.......................................................................11
Item 2. Changes in Securities and Use of Proceeds...............................................11
Item 3. Defaults Upon Senior Securities.........................................................11
Item 4. Submission of Matters to a Vote of Security Holders.....................................11
Item 5. Other Information.......................................................................11
Item 6. Exhibits and Reports on Form 8-K........................................................11
Signatures.......................................................................................12
</TABLE>
<PAGE>
TODAY'S MAN, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
April 29, January 29,
2000 2000
---- ----
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 726,600 $ 392,700
Due from credit card companies and other receivables, net 2,616,700 1,692,900
Inventory 37,428,100 39,334,700
Prepaid expenses and other current assets 2,511,000 2,270,700
Prepaid inventory purchases 860,300 1,847,900
----------- -----------
Total current assets 44,142,700 45,538,900
Property and equipment, less accumulated depreciation and
Amortization 31,339,400 34,235,300
Loans to shareholders 228,400 228,400
Rental deposits and other noncurrent assets 2,269,600 1,864,600
----------- -----------
$77,980,100 $81,867,200
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 8,973,500 $ 9,014,700
Accrued expenses and other current liabilities 5,992,400 6,408,300
Capital lease obligations 401,600 401,600
------------ -----------
Total current liabilities 15,367,500 15,824,600
Capital lease obligations, less current maturities 681,400 936,600
Deferred rent and other 4,505,000 4,559,800
Obligation under revolving credit facility 23,258,500 21,145,100
------------ -----------
43,812,400 42,466,100
Shareholders' equity:
Preferred stock, no par value, 5,000,000 shares authorized, none issued - -
Common stock, no par value, 100,000,000 shares authorized,
27,040,725 and 27,040,725 shares issued and outstanding at
April 29, 2000 and January 29, 2000 respectively 48,513,700 48,513,700
Accumulated deficit (14,346,000) (9,112,600)
------------ -----------
Total shareholders' equity 34,167,700 39,401,100
------------ -----------
$ 77,980,100 $81,867,200
=========== ===========
</TABLE>
See accompanying notes.
1
<PAGE>
TODAY'S MAN, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
FOR THIRTEEN WEEKS ENDED
April 29, May 1,
2000 1999
---- ----
<S> <C> <C>
Net sales $41,071,400 $42,777,200
Cost of goods sold 25,157,200 26,528,300
----------- -----------
Gross profit 15,914,200 16,248,900
Selling, general and administrative expenses (includes
$3,987,600 in asset impairment charges and lease
termination costs in fiscal 2000) 20,541,900 16,709,500
----------- -----------
Loss from operations (4,627,700) (460,600)
Interest expense and other income, net 605,700 246,800
----------- -----------
Loss before income taxes (5,233,400) (707,400)
Income tax (benefit) - (203,500)
----------- -----------
Net loss $(5,233,400) $ (503,900)
=========== ===========
Loss per share - basic and assuming dilution $ (0.19) $ (0.02)
=========== ===========
Weighted average shares outstanding - basic and assuming
dilution 27,040,725 27,014,533
=========== ===========
</TABLE>
See accompanying notes.
2
<PAGE>
TODAY'S MAN, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
FOR THIRTEEN WEEKS ENDED
April 29, 2000 May 1, 1999
-------------- -----------
<S> <C> <C>
Operating activities
Net income (loss) $ (5,233,400) $ (503,900)
Adjustments to reconcile net income (loss) to net cash used in operating
activities:
Depreciation and amortization 1,021,600 901,100
Reserve for asset impairment charges and lease termination costs 3,987,600 -
Deferred credits (54,800) (55,700)
Tax benefit of net operating loss carryforward - (261,700)
Changes in operating assets and liabilities:
(Increase) decrease in receivables (923,800) (274,000)
Decrease in inventory 1,906,600 (3,551,000)
Decrease in prepaid expenses and other current assets and
prepaid inventory purchases 747,300 1,489,500
Increase in rental deposits and other non current assets (405,000) (53,300)
Decrease in payables and accrued expenses (2,228,200) (3,080,800)
-------------------- -------------------
Total adjustments 4,051,300 (4,885,900)
-------------------- -------------------
Net cash used in operating activities (1,182,100) (5,389,800)
Cash flow used in investing activities:
Capital expenditures (342,200) (397,600)
Fixtures and equipment in process - (1,011,900)
-------------------- -------------------
Net cash used in investing activities (342,200) (1,409,500)
Cash flow provided by (used in) financing activities:
Repayment of capital leases (255,200) (370,100)
Borrowings under revolving credit facility 40,498,000 44,126,800
Repayment of revolving credit facility (38,384,600) (38,079,400)
Proceeds from exercise of stock options and common stock purchase
warrants - 400
-------------------- -------------------
Net cash provided by financing activities 1,858,200 5,677,700
Net increase (decrease) in cash and cash equivalents 333,900 (1,121,600)
Cash and cash equivalents at beginning of period 392,700 1,181,100
-------------------- -------------------
Cash and cash equivalents at end of period $ 726,600 $ 59,500
==================== ===================
</TABLE>
See accompanying notes.
3
<PAGE>
TODAY'S MAN, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Financial Statement Presentation
The accompanying unaudited consolidated financial statements, which
include the accounts of the Company and its wholly owned subsidiaries, have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. All significant intercompany transactions and accounts
have been eliminated in consolidation. In the opinion of management, all
adjustments (consisting of normal recurring accruals and the asset write-offs
and lease termination costs disclosed in Note 5) considered necessary for a fair
presentation have been included. Due to the seasonal nature of the Company's
sales, operating results for the interim period are not necessarily indicative
of results that may be expected for the fiscal year ending February 3, 2001. For
further information, refer to the consolidated financial statements and
footnotes thereto which are included in the Company's Annual Report on Form 10-K
for the fiscal year ended January 29, 2000.
As of January 31, 1998, the Company effected a quasi-reorganization
through the application of $27,316,200 of its $74,115,700 Common Stock account
to eliminate its retained deficit. The Company's Board of Directors decided to
effect a quasi-reorganization given that the Company had completed its
restructuring, obtained long-term financing and successfully emerged from
bankruptcy. The Company's retained deficit at January 31, 1998 was related to
operations that resulted in the restructuring of the Company and the losses
incurred during the Chapter 11 proceeding and was not, in management's view,
reflective of the Company's current financial condition.
2. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
3. Earnings (Loss) per Common Share
Earnings (loss) per share is calculated following Financial Accounting
Standards Board issued Statement No. 128 Earnings per Share. Statement 128
requires companies to present basic and diluted earnings per share. Basic
earnings per share excludes any dilutive effect of outstanding stock options
whereas diluted earnings per share includes the effect of such items. There is
no difference between basic and diluted earnings per share because the effect of
the Company's common share equivalents would be anti-dilutive.
4
<PAGE>
TODAY'S MAN, INC.
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
4. Recent Accounting Pronouncements
In December 1999, the Securities and Exchange Commission (SEC) issued
Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial
Statements", which effectively changes previous guidance related to revenue
recognition and the recording of license business revenues for retail companies.
In the quarter ended April 29, 2000, the Company changed its method of recording
licensed shoe department sales. This change reduces reported sales and reported
expenses, but has no impact on operating or net income. Net licensed shoe
department sales were $446,800 and $417,000 in the first quarter of fiscal 2000
and 1999, respectively. Prior year sales have been reduced by $2,106,800 with a
corresponding reduction in cost of sales. The Company will adopt the remaining
provisions of SAB 101 as of the fiscal quarter ended July 29, 2000. The Company
is currently in the process of evaluating the impact that SAB 101 will have on
its consolidated financial position and results of operations.
5. Store Closings
During the quarter ended April 29, 2000, the Company recorded a charge to
operations of approximately $4.0 million relating to the announced closing of
three underperforming store locations. The Company recognized $1,990,500 in
fixed asset write-offs and $1,997,100 in lease termination costs related to the
anticipated closing of the stores in the third quarter of fiscal 2000. The
Company has included $1,997,100 in accrued expenses and other current
liabilities related to the lease termination costs. The three stores generated
sales of $2.7 million and $2.9 million in the quarters ended April 29, 2000 and
May 1, 1999, respectively.
5
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Investment Considerations
In analyzing whether to make, or to continue, an investment in the
Company, investors should consider, among other factors, certain investment
considerations more particularly described in "Item 1: Business - Investment
Considerations" in the Company's Annual Report on Form 10-K for the year ended
January 29, 2000, a copy of which can be obtained, without charge except for
exhibits to the Report, upon written request to Mr. Frank E. Johnson, Executive
Vice President and Chief Financial Officer, Today's Man, Inc., 835 Lancer Drive,
Moorestown, New Jersey 08057.
Safe Harbor Statement under Private Securities Litigation Reform Act of 1995
Certain statements in this Form 10-Q which are not historical facts,
including, without limitation, statements as to the Company's plans for 2000,
e-commerce strategy, or as to management's beliefs, expectations, or opinions,
are forward looking statements that involve risks and uncertainties and are
subject to change at any time. Certain factors, including, without limitation
the risk that the assumptions upon which the forward-looking statements are
based ultimately may prove incorrect. Risks relating to the Company's growth
strategy, small store base and geographic concentration, the declining unit
sales of men's tailored clothing, seasonality and global economic conditions,
and the other risks detailed from time to time in the Company's filings with the
Securities and Exchange Commission, including, without limitation, its Annual
Report on Form 10-K, can cause actual results and developments to be materially
different from those expressed or implied by such forward-looking statements.
See "Investment Considerations" above, for instructions on how to receive a copy
of the Company's Annual Report.
RESULTS OF OPERATIONS:
---------------------
The following table sets forth, as a percentage of net sales, certain
items appearing in the consolidated statements of operations for the thirteen
week periods ended April 29, 2000 and May 1, 1999, respectively.
PERCENTAGE OF NET SALES
THIRTEEN WEEKS ENDED
April 29, May 1,
2000 1999
----------------------------
Net sales 100.0% 100.0%
Cost of goods sold 61.3 62.0
----------------------------
Gross profit 38.7 38.0
Selling, general and administrative expenses 50.0 39.1
----------------------------
Loss from operations (11.3) (1.1)
Interest expense and other income, net 1.5 0.6
----------------------------
Loss before income taxes (12.8) (1.7)
Income taxes (0.0) (0.5)
----------------------------
Net loss (12.8%) (1.2%)
============================
THIRTEEN WEEKS ENDED APRIL 29, 2000 AND MAY 1, 1999:
----------------------------------------------------
NET SALES. Net sales decreased $1,705,800 or 4.0% in the first quarter of fiscal
2000 compared to the year ago period. Comparative store sales decreased 9.1%.
The decrease in net sales is a result of the decline in foot traffic the Company
has experienced. There were 29 and 25 superstores in operation at April 29, 2000
and May 1, 1999, respectively.
6
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
GROSS PROFIT. Gross profit as a percentage of net sales increased to 38.7% for
the first quarter of fiscal 2000 compared to 38.0% in the first quarter of
fiscal 1999. The increase in the gross profit percentage is a result of the
Company's strategy of higher initial mark-ups to accommodate pre-planned
markdowns on various point of sale events.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses increased $3,832,400 or 22.9% in the first quarter of
fiscal 2000, and increased as a percentage of sales to 50.0% from 39.1% in the
first quarter of fiscal 1999. The increase was due to the charge taken in the
first quarter of fiscal 2000 related to the announced planned closing of three
underperforming store locations. The Company recognized $1,990,500 in fixed
asset write-offs and $1,997,100 in lease termination costs related to the
anticipated third quarter fiscal 2000 store closings, as discussed below.
INTEREST EXPENSE AND OTHER INCOME, NET. Interest expense, interest income and
other expense, net increased by $358,900 from the first quarter of fiscal 1999.
The increase in interest expense was attributable to the increased amount of
average borrowings incurred due to the decline in sales revenues as discussed
above, as well as the increase in the interest rate charged as per the Company's
amended Loan and Security Agreement with Mellon Bank as of March 15, 2000. The
Company had average borrowings under its revolving credit facility of
$24,243,700 during the quarter ended April 29, 2000 as compared to average
borrowings of $13,648,000 under its revolving credit facility during the quarter
ended May 1, 1999. The interest rate in effect was 9.75% as of April 29, 2000 as
compared to 7.75% as of May 1, 1999. As a result of revolving credit borrowings,
the Company recorded interest expense of $605,700 during the quarter ended April
29, 2000.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
Net cash used in operating activities amounted to $1,182,100 and $5,389,800
in the first quarter of fiscal 2000 and the first quarter of fiscal 1999,
respectively. These amounts primarily represented net loss plus depreciation,
amortization and other changes in operating assets and liabilities, including
the reserve for asset impairment charges and lease terminations costs of
$3,987,600.
Net cash used in investing activities amounted to $342,500 and $1,409,500
in the first quarter of fiscal 2000 and the first quarter of fiscal 1999,
respectively. The decrease in the first quarter of fiscal 2000 from the first
quarter of fiscal 1999 was primarily due to the Company not incurring capital
expenditures related to new store openings, as well as not having to upgrade or
replace computer systems for year 2000 compliance purposes as was the case in
fiscal 1999.
Net cash provided by financing activities amounted to $1,858,200 and
$5,677,700 in the first quarter of fiscal 2000 and the first quarter of fiscal
1999, respectively. These amounts primarily represented activity under the
Company's revolving credit facility and repayment of capital leases.
The Company's primary sources of working capital are cash flow from
operations and borrowings under the revolving credit facility. At April 29,
2000, the Company had working capital of $28,775,200 as compared with
$29,714,300 at January 29, 2000.
On December 4, 1998, the Company entered into a Loan and Security Agreement
with Mellon Bank, N.A., ("Mellon") individually and as agent. The Loan and
Security Agreement provided for a $45.0 million revolving credit facility with a
$20.0 million sublimit for letters of credit. The Mellon Loan and Security
Agreement contains financial covenants including tangible net worth,
indebtedness to tangible
7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
net worth and fixed charge coverage ratios, and limitations on new store
openings and capital expenditures as well as restrictions on the payment of
dividends. The Company granted Mellon a lien on its tangible and intangible
assets to secure this revolving credit facility. Proceeds from this loan were
used to refinance the Company's previous revolving credit facility and term loan
from Foothill Capital Corporation. In accordance with the early termination
provisions of the Foothill Capital Corporation loan document, the Company paid
an early termination fee of $720,000 to Foothill.
The Mellon revolving credit facility bore interest at the option of the
Company at prime (9.00% at April 29, 2000) or LIBOR plus a margin ranging from
1.75% to 3.25% depending upon the Company's EBITDA. Availability under the
revolver is determined by a formula based on inventory and credit card
receivables, less applicable reserves.
In April 1999, the Company and Mellon amended the Loan Agreement to allow
for the inclusion of participant lenders and to modify certain other provisions
including the tangible net worth and fixed charge coverage ratio covenants.
During the fourth quarter of fiscal 1999, the Company was projecting a
liquidity shortfall in early fiscal 2000 under its revolving credit facility. To
address the liquidity shortfall, the Company obtained a temporary over-advance
of $4.5 million above its calculated borrowing base from Mellon on February 11,
2000. In addition, the Company and Mellon agreed to recast certain financial
covenants to reflect the year-end operating results. On March 15, 2000, the
Company and Mellon entered into amendment No. 3 to the Loan and Security
Agreement. The revolving credit facility was reduced to $35.0 million with a
$15.0 million sublimit for letters of credit. Within the credit facility is an
over-advance facility of $4.5 million above the calculated borrowing base which
is reduced to $3.4 million on May 16, 2000 and $2.5 million on June 16, 2000 and
expires on June 30, 2000. The revolving credit facility expires on March 15,
2002 and bears interest at 0.75% per annum above Mellon Bank's prime rate. The
amended Agreement recast all of the Company's financial covenants as of and for
the year ended January 29, 2000 and for the remaining term of the loan
agreement. The amended Agreement contains financial covenants related to
tangible net worth, indebtedness to tangible net worth, fixed charge coverage
ratios, maximum net loss per month, and limitations on new store openings and
capital expenditures as well as restrictions on the payments of dividends.
Additionally, Mr. David Feld, the Chairman and CEO, agreed to provide additional
collateral to secure the credit facility. The Company was in compliance with all
covenants under the amended Agreement as of January 29, 2000. The amended
Agreement also includes a termination fee of $1.0 million if the Company
terminates the facility before March 15, 2001, and $700,000 if termination
occurs from March 16, 2001 through March 14, 2002.
The Company announced on March 15, 2000 that it had engaged Wasserstein
Perella & Co., Inc., an investment-banking firm, to enhance the Company's
shareholder value. This may take the form of an equity investment in the Company
or debt.
On May 1, 2000, the Company and Mellon entered into Amendment 4 to include
Todaysman.com, a subsidiary of the Company, in the revolving credit facility.
In April 2000, the Company decided to close three under-performing stores,
including one store located in a building owned by Mr. David Feld, the Company's
CEO. The planned closing of the three stores resulted in a charge to operations
in the first quarter of fiscal 2000 of $4.0 million consisting of $1,990,500 for
the write-off of furniture and fixtures and $1,997,100 for lease termination
costs. The lease termination costs are expected to be incurred ratably from the
date of the store closings through the end of the anticipated lease terms
estimated to be approximately 18 months. The three stores generated sales of
$2.7 million and $2.9 million and cost of sales of $1.7 million and $1.8 million
in the quarters ended April 29, 2000 and May 1, 1999, respectively. The three
stores, which generated sales of
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
$12,590,000 and cost of sales of $8,156,000 in fiscal 1999, are expected to be
closed by September 2000. The estimated lease termination costs may increase if
a sub-lessor is not obtained in 18 months of the store closings. Also, the
Company may incur additional costs related to the store closings, such as
employee termination costs, however, these amounts are not determinable at this
time.
On May 11, 2000, the Company and Mellon entered into Amendment 5 to the
revolving credit facility. The agreement amends the credit facility to extend
the over-advance facility of $2,500,000 which previously expired on June 30,
2000 to August 15, 2000. The over-advance is reduced to $2,250,000 on August 16,
2000, $1,250,000 on September 16, 2000, $1,000,000 on October 16, 2000 and
expires on November 30, 2000. Amendment 5 also revised certain financial
covenants to provide a waiver for the $4.0 million charge to operations caused
by the store closings discussed above. The amendment also provided for a
reduction in the credit facility from $35 million to $30 million effective on
November 30, 2000. The termination fee was also increased to $1,050,000 if the
facility is terminated on or before March 14, 2002.
The Company has been substantially dependent upon borrowings under its
credit facility to finance its operations and received an amended credit
facility from Mellon in May 2000, which allows the Company additional liquidity
through an over-advance facility through November 30, 2000 as discussed above.
Additionally, the Company is in the process of implementing a plan to reverse
the trend of losses noted above. Management's plans implemented thus far, as
well as actions initiated that will continue into fiscal 2000, include the
execution of the amended credit facility, a layoff of non-operating personnel in
January 2000, the reduction in advertising spending and the focus on the
Company's traditional advertising approach, and the announcement of the closing
of three under-performing stores in May 2000.
Management believes the Company's cash requirements in 2000 will be
generated by operations and borrowings on the Company's credit facility.
Management also believes that the actions initiated and its 2000 plans will
result in the successful funding of its working capital and cash requirements
while enabling the Company to meet its financial covenants under the credit
facility.
Year 2000 Compliance
In prior years, the Company discussed the nature and progress of its plans
to become year 2000 compliant. In late 1999, the Company completed its
remediation and testing of systems. As a result of those planning and
implementation efforts, the Company experienced no significant disruptions in
mission critical information technology and non-information technology systems
and believes those systems successfully responded to the year 2000 date change.
The Company incurred costs of approximately $127,200 during 1999 in connection
with remediating its systems, and additional costs of $1,454,900 to replace its
existing merchandise and financial accounting systems. The Company is not aware
of any material problems resulting from year 2000 issues, either with its
internal systems, or the products and services of third parties. The Company
will continue to monitor its mission critical computer applications and those of
its suppliers and vendors throughout the year 2000 to ensure that any latent
year 2000 matters that may arise are addressed promptly.
9
<PAGE>
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
--------------------------------------------------------------------
The Company is a retail company doing business within the United States.
Its primary market risk is exposure to interest rates fluctuations on its debt
instruments. The Company's bank revolving credit facility bears interest at
variable rates. The variable interest rate is the rate in effect at the quarter
ended April 29, 2000, and it fluctuates with the lending bank's prime rate. The
change in interest expense of the Company's bank revolving credit facility
resulting from a hypothetical 2% increase in interest rates would not be
material.
10
<PAGE>
PART II - OTHER INFORMATION
---------------------------
Item 1. Legal Proceedings
-----------------
None - not applicable
Item 2. Changes in Securities and Use of Proceeds
-----------------------------------------
None - not applicable
Item 3. Defaults Upon Senior Securities
-------------------------------
None - not applicable
Item 4. Submission of Matters to a Vote of Shareholders
-----------------------------------------------
None - not applicable
Item 5. Other Information
-----------------
None - not applicable
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
Exhibits
10.23 - Consulting Agreement between Leonard Wasserman and
Today's Man, Inc.
Reports on Form 8-K
None - not applicable
11
<PAGE>
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 thereunto duly authorized.
TODAY'S MAN, INC.
(Registrant)
Date: June 13, 2000 /s/David Feld
-----------------------------------------
David Feld
Chairman of the Board and
Chief Executive Officer
Date: June 13, 2000 /s/Frank E. Johnson
-----------------------------------------
Frank E. Johnson
Executive Vice President, Chief Financial
Officer and Treasurer
Principal Financial Officer
Date: June 13, 2000 /s/Barry S. Pine
-----------------------------------------
Barry S. Pine
Vice President and Controller
Principal Accounting Officer
12
