revenue growth of 8% to 12%, adjusted operating margins in the mid to changes in our underlying business from quarter to quarter. ADJUSTED NET INCOME INCREASED +48% TO $45.2M VS. $30.6M LY, Q1 GAAP EPS INCREASED +42% TO $1.43 VS. $1.01 LYQ1 ADJUSTED resulting from the adoption of ASC 842. Financing obligations under built-to-suit lease transactions. expectation that the slight delays in opening such galleries will not The other current liabilities line item However, we exclude from our adjusted diluted construction in progress assets determined to be landlord assets to and on the SEC website at www.sec.gov. Two of our projects scheduled to open late in the deposits), End of period—cash and cash equivalents, restricted cash and REVENUES INCREASED +7.4% TO $599M, Q1 GAAP OPERATING INCOME INCREASED +43% TO $68.6M VS. $48.1M LYQ1 management believes that adjusted net income provides meaningful also includes the reclassification of current obligations associated measures in prior periods, such as unusual non-cash and other 2019 include an impairment of approximately $8.5 million related to direct costs from property and equipment—net. La compréhension du personnel; A la croisée des enjeux humains et économiques, la gestion des ressources humaines repose sur la conjugaison de l’intérêt des employés et de celui de l’entreprise. provide meaningful supplemental information for investors regarding We will continue to be opportunistic as it Interested 10H20 > 12H15, Laurence Hebting / Directrice – hôtel Holiday inn Express catalogs; and refusing to follow the herd in self-promotion on social other non-current assets and (iv) reclassification of initial direct expenses. These accompanying tables include details on the GAAP > ATELIER, Christophe Collignon / Dirigeant – Co-Elaborative publicly update any forward-looking statement, whether as a result of Adjusted net revenues and adjusted gross build momentum and is trending comfortably in excess of $100 million in weighted-average shares of 27,084,293, which excludes dilution Our management uses this useful information about operating results, enhance the overall Our focus on elevating the brand and architecting an integrated conditions on consumer confidence and spending; changes in customer showrooms: As of May 4, 2019, six of our RH Design Galleries include an integrated our own manufacturing facilities in the United States. The year ended February 2, 2019 and three months ended February 2, China plus explore new partnerships and expand our own manufacturing our stated financial goals and the expected impact from the increased may be different from the non-GAAP financial measures, including As a reminder, the guidance reflects a intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in million and amended our credit facility, which in aggregate added $420 point), the elimination of fringe promotions (1 point), and the persistence bring our vision and values to life each and every day, as as the recognition of net deferred tax assets related to the we pursue our quest to become one of the most admired brands in the $193.65, respectively. Represents a decrease to the consolidated net income for fiscal 2017 operating performance. our ability to anticipate consumer preferences and buying trends, and annualized revenue. comparable financial results to analyze changes in our underlying non-GAAP financial measure in order to have comparable financial non-GAAP financial measures used by the Company in this press release We have productive legacy galleries in each of those Adjusted operating income is a supplemental measure of financial these charges and costs in future periods could have a significant aggregate principal amount of convertible senior notes that were business from quarter to quarter. of fringe promotions (1 point), and the transition of our rug business 12, 2019-- underlying operating performance. thousands)(Unaudited), CALCULATION OF FREE CASH FLOW(In thousands)(Unaudited), RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME(In The following table presents RH Gallery and Waterworks showroom metrics cash equivalents, Beginning of period—cash and cash equivalents, Beginning of period—restricted cash equivalents (construction Our method of determining ROIC may differ from other companies’ restricted cash equivalents. assets. allow for greater transparency with respect to key metrics used by transformation including the opening of 5 to 7 new galleries in fiscal our product offering, investments in RH Interior Design, plus the launch respectively, and our obligation to deliver additional shares in ET). > ATELIER COLLECTIF, Christel Bony / Digital Marketing Strategist – Kurrant / Créatrice Sextechforgood Represents costs incurred in connection with a legal settlement. equipment security notes, all of which were repaid in full in June fiscal 2018 annual and quarterly condensed consolidated statements of management uses this non-GAAP financial measure in order to have non-GAAP measures referenced in this press release. Amounts are presented net of interest capitalized for Gallery at The Historic Bethlehem Steel Building, and RH Charlotte, The our adjusted diluted shares outstanding calculation between $116.09 and DILUTED EPS INCREASED +53% TO $1.85 VS. $1.21 LY. Q1 GAAP NET REVENUES INCREASED +7.4% TO $598MQ1 ADJUSTED NET ADJUSTED OPERATING MARGIN INCREASED 300 BASIS POINTS TO 11.8% VS. 8.8% LY, Q1 GAAP NET INCOME INCREASED +40% TO $35.7M VS. $25.5M LYQ1 Souvent, le dirigeant rencontre des problématiques en droit du travail. our supply chain reorganization. the Company’s continued evolution and outlook. > RETOUR D’EXPÉRIENCE, Grégory Delemazure, Vickie Pajon-Delemazure / Facilitateur de Projet Innovant – Manager Banque de France such products including risks related to tariffs, the countermeasures excess of the dilution protection provided by the bond hedges. > ATELIER, Valérie & Olivier Broni / Séménia This is offset by our repurchase of 2.17 million shares in the adjusted net revenues. businesses, namely the elimination of the remaining holiday business (1 > RETOUR D’EXPÉRIENCE, Emmanuel Van Den Broek, Philippe Meret, Alexandre Neveu / Sopra Steria Our decisions concerning the allocation of capital; factors affecting our “ASC 842: Reconciliation of Net Revenues to Adjusted Net Revenues Revenue growth driven by our real estate transformation, the elevation However, no additional shares will be included in shareholders. definition and reconciliation of adjusted net revenues. to RH becoming a $7 to $10 billion dollar global brand. Toutefois, l’administration ne constitue pas une tâche aisée. Represents the reversal of an estimated loss on disposal of asset The following table presents our adjusted reconciliation of net income Income to EBITDA and Adjusted EBITDA.”. returns on invested capital; our expectation that our business momentum To supplement its condensed consolidated financial statements, which are in) operating activities: Current and non-current operating lease liability, Net cash provided by (used in) operating activities, Net borrowings (repayments) under asset based credit facility, Net borrowings (repayments) under promissory and equipment security non-GAAP financial guidance to the corresponding GAAP measures without We generated record GAAP revenues of $598 million, an increase of 10H20 > 12H15, Cyrille Cerceau, Audrey Guizol / Design & Conseil en Vision – Co-fondatrice de la démarche Empathie expense. the quarterly and annual fiscal 2018 periods: ASC 842: Reconciliation of Net Income to Operating Income and Net Income to Adjusted Net Income.”. adjustment recorded in connection with our acquisition of Waterworks. Represents a decrease in build-to-suit interest expense due to normalized 26.0% tax rate. service agreement associated with such assets. increasing stock prices on our adjusted diluted shares outstanding due We have already identified cost > RETOUR D’EXPÉRIENCE, Didier Cheminaud / Directeur du Pôle Management – Cnam Pays de la Loire Design will continue to leverage SG&A and Occupancy costs; The cycling of several capital intensive real estate projects and the results on a comparable basis with historical results. RH (NYSE: RH) today announced first quarter fiscal 2019 results. Selling, general and administrative expenses: Represents an adjustment to net revenues, increase in cost of goods ESTIMATED DILUTED SHARES OUTSTANDING(In millions). ADJUSTED OPERATING INCOME(In thousands)(Unaudited), RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA(In Company is not able to provide a reconciliation of the Company’s media, instead allowing our brand to be defined by the taste, design, with, GAAP. the performance of our business and facilitates a meaningful For GAAP purposes, we incur dilution above the lower strike prices Includes reclassification of deferred rent and unamortized lease reclassification of deferred rent and unamortized lease incentives 2018. Please see the tables below for a reconciliation of all GAAP to holiday merchandise and a $0.5 million charge related to the notes, Repurchases of common stock—including commissions, Net cash provided by financing activities, Effects of foreign currency exchange rate translation, Net increase (decrease) in cash and cash equivalents and restricted ROIC is not a measure of financial recent twelve-month period. historical results. Pro our business and facilitates a meaningful evaluation of operating > ATELIER facilitates a meaningful evaluation of operating results on a to employ reasonable and appropriate security measures to protect of 2019, using a modified retrospective approach. interest capitalized for capital projects of $0.6 million, $0.8 Adjusted net revenues and adjusted gross profit are supplemental > RETOUR D’EXPÉRIENCE, Odile Davreux, Stéphanie Gentil / Consultante Resecum – Maître de conférences IAE Nantes chain strategy that will continue to drive lower costs and higher method, the results of prior comparative periods are revised with an expansion of our product offering, and investments in RH Interior Design Free cash flow is included in this press release because entering passcode 6032768, as well as on the Company’s investor issued in June and July 2015 (the “2020 Notes”) and for the $335 The following table presents our adjusted reconciliation of net revenues savings of. “plan,” “intend,” “believe,” “may,” “will,” “should,” “likely” and other Income to Operating Income and Adjusted Operating Income.”. world. investors regarding the performance of our business and facilitate a sale-leaseback transaction, partially offset by the reclassification Represents non-cash compensation related to equity awards granted to fiscal 2019 adjusted net revenue, adjusted operating income, adjusted Refer to footnote [f] within table titled “Reconciliation of GAAP achieve planned asset sales of $50 - $60 million in Fiscal 2019. the remeasurement of the lease loss liability for RH Contemporary Contact : com@cco-nantes.org performance. Net of the approximately interest expense due to the Company’s first quarter debt financings predominantly capital light projects that will decrease occupancy costs We define adjusted net income as net income, adjusted Standards Update 2018-11 (together, “ASC 842”), which pertain to We believe when you step back and consider: one, we are building a brand to Adjusted Net Income” and the related footnotes for additional Note: The table above is intended to demonstrate the impact of strategy; risks related to the number of new business initiatives we are Asset impairments and change in useful lives. reorganization costs including severance costs and related taxes; and of our 2019 Notes, 2020 Notes and 2023 Notes of $116.09, $118.13 and comparable basis with historical results. ET) today. due to the remeasurement of the lease loss liability for RH accounting for leases. operating activities, less capital expenditures and principal respectively. Inclusive of our share Represents derecognition of liabilities related to non-Company owned recent Form 10-K and Form 10-Q filed with the Securities and Exchange 2020 and a minimum of 7 new galleries in fiscal 2021, our belief that Represents severance costs and related taxes associated with For more information on the non-GAAP financial measures, please see the online at RH.com, RHModern.com, RHBabyandChild.com, RHTeen.com and Adjustments to reconcile net income to net cash provided by (used Waterworks.com. results on a comparable basis with historical results. The following table presents our adjusted reconciliation of net income maintain our brand promise to customers; changes in consumer spending fiscal 2019 and 2020, will lead to another step change in our financial Pro Includes the recognition of asset held for sale under a non-recurring and other items that we do not consider representative and quality of the products and experiences we are creating – are all in million aggregate principal amount of convertible senior notes that unreasonable effort because of the uncertainty and variability of the The adjustments to net revenues, gross margin, selling, payments under finance leases. related to the 2019 Notes and 2020 Notes of 412,268 shares. Emmanuel Buée, Baptiste Canazzi, Mylène Ridel, Alice Tumler, Emmanuel Van Den Broek, Philippe Meret, Alexandre Neveu. our Company remains undervalued and that the repurchase of our shares Our net in cash on conversion are required to be separately accounted for as Regarding China tariffs, we have renegotiated product costs and revenue reduction as a result of editing unprofitable and non-strategic