2021 Q4 Form 10-K Financial Statement

#000155837022004961 Filed on March 31, 2022

View on sec.gov

Income Statement

Concept 2021 Q4 2021 2020 Q4
Revenue $24.45M $28.38M $251.0K
YoY Change 9640.24% 1454.33% -53.69%
Cost Of Revenue $3.607M $7.483M $2.722M
YoY Change 32.51% -9.24% 0.63%
Gross Profit $20.84M $20.27M -$2.471M
YoY Change -943.42% -390.08% 14.24%
Gross Profit Margin 85.25% 71.43% -984.46%
Selling, General & Admin $837.0K $4.492M $1.002M
YoY Change -16.47% -9.34% -27.29%
% of Gross Profit 4.02% 22.16%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $876.0K $5.137M $746.0K
YoY Change 17.43% 23.25% 24.33%
% of Gross Profit 4.2% 25.34%
Operating Expenses $24.15M $41.24M $4.268M
YoY Change 465.93% 123.58% -12.31%
Operating Profit -$3.313M -$12.86M -$4.017M
YoY Change -17.53% -269.73% -177.31%
Interest Expense -$647.0K -$3.012M -$1.291M
YoY Change -49.88% 95.58% 621.23%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$3.961M -$17.49M -$5.308M
YoY Change -25.38% -438.31% -205.82%
Income Tax $178.0K $265.0K $88.00K
% Of Pretax Income
Net Earnings -$4.139M -$17.75M -$5.396M
YoY Change -23.3% -465.04% -206.07%
Net Earnings / Revenue -16.93% -62.55% -2149.8%
Basic Earnings Per Share -$0.53 -$0.17
Diluted Earnings Per Share -$117.4K -$0.53 -$0.16
COMMON SHARES
Basic Shares Outstanding 35.31M 33.32M 32.31K
Diluted Shares Outstanding 33.32M 32.86K

Balance Sheet

Concept 2021 Q4 2021 2020 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.310M $4.310M $6.515M
YoY Change -33.84% -33.84% -29.15%
Cash & Equivalents $4.310M $4.310M $6.515M
Short-Term Investments
Other Short-Term Assets $673.0K $673.0K $454.0K
YoY Change 48.24% 48.24% -43.04%
Inventory
Prepaid Expenses
Receivables $84.00K $84.00K $966.0K
Other Receivables $114.0K $114.0K $90.00K
Total Short-Term Assets $5.181M $5.181M $8.025M
YoY Change -35.44% -35.44% -32.19%
LONG-TERM ASSETS
Property, Plant & Equipment $291.0M $291.0M $280.8M
YoY Change 3.66% 3.66% -4.87%
Goodwill
YoY Change
Intangibles $8.432M $9.172M
YoY Change -8.07% -7.47%
Long-Term Investments $4.800M $17.94M $5.700M
YoY Change -15.79% -7.44% -46.59%
Other Assets $20.54M $20.54M $9.554M
YoY Change 114.94% 114.94% 0.84%
Total Long-Term Assets $341.4M $341.4M $317.6M
YoY Change 7.5% 6.31% -4.77%
TOTAL ASSETS
Total Short-Term Assets $5.181M $5.181M $8.025M
Total Long-Term Assets $341.4M $341.4M $317.6M
Total Assets $346.6M $346.6M $325.6M
YoY Change 6.44% 5.3% -5.71%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $17.86M $17.86M $15.90M
YoY Change 12.35% 12.38% -28.52%
Accrued Expenses $1.447M $1.447M $1.716M
YoY Change -15.68% -15.68% -16.9%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $19.31M $19.31M $1.716M
YoY Change 1025.35% 9.65% -98.4%
LONG-TERM LIABILITIES
Long-Term Debt $270.7M $270.7M $242.8M
YoY Change 11.49% 11.49% 38.24%
Other Long-Term Liabilities $1.146M $1.146M $830.0K
YoY Change 38.07% 38.07% -70.65%
Total Long-Term Liabilities $271.9M $271.9M $243.6M
YoY Change 11.58% 11.58% 36.51%
TOTAL LIABILITIES
Total Short-Term Liabilities $19.31M $19.31M $1.716M
Total Long-Term Liabilities $271.9M $271.9M $243.6M
Total Liabilities $291.2M $291.2M $261.2M
YoY Change 11.45% 11.45% -8.54%
SHAREHOLDERS EQUITY
Retained Earnings -$30.79M -$13.03M
YoY Change 136.21% -18.53%
Common Stock $144.7M $136.4M
YoY Change 6.12% 1.31%
Preferred Stock
YoY Change
Treasury Stock (at cost) $57.17M $56.79M
YoY Change 0.66% 1.9%
Treasury Stock Shares $6.398M $6.173M
Shareholders Equity $55.42M $55.42M $64.38M
YoY Change
Total Liabilities & Shareholders Equity $346.6M $346.6M $325.6M
YoY Change 6.44% 5.3% -5.71%

Cashflow Statement

Concept 2021 Q4 2021 2020 Q4
OPERATING ACTIVITIES
Net Income -$4.139M -$17.75M -$5.396M
YoY Change -23.3% -465.04% -206.07%
Depreciation, Depletion And Amortization $876.0K $5.137M $746.0K
YoY Change 17.43% 23.25% 24.33%
Cash From Operating Activities -$5.880M -$7.443M -$3.407M
YoY Change 72.59% -31.39% 307.54%
INVESTING ACTIVITIES
Capital Expenditures -$5.565M -$36.35M -$11.94M
YoY Change -53.4% -29.71% -41.35%
Acquisitions
YoY Change
Other Investing Activities $20.95M $22.28M $5.192M
YoY Change 303.45% -752.84% -76.14%
Cash From Investing Activities $15.38M -$13.94M -$6.751M
YoY Change -327.85% -74.52% -584.29%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$7.269M
YoY Change -1145.9%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.694M 30.15M 8.063M
YoY Change -66.59% -52.09% 635.68%
NET CHANGE
Cash From Operating Activities -5.880M -7.443M -3.407M
Cash From Investing Activities 15.38M -13.94M -6.751M
Cash From Financing Activities 2.694M 30.15M 8.063M
Net Change In Cash 12.20M 8.776M -2.095M
YoY Change -682.15% -437.41% -226.66%
FREE CASH FLOW
Cash From Operating Activities -$5.880M -$7.443M -$3.407M
Capital Expenditures -$5.565M -$36.35M -$11.94M
Free Cash Flow -$315.0K $28.91M $8.536M
YoY Change -103.69% -29.27% -56.29%

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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;margin:0pt 0pt 10pt 0pt;">NOTE 1 – BASIS OF PRESENTATION</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:italic;font-weight:bold;margin:0pt 0pt 10pt 0pt;">General Business Plan</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 10pt 0pt;">Trinity Place Holdings Inc., which we refer to in these financial statements as “Trinity,” “we,” “our,” or “us,” is a real estate holding, investment, development and asset management company. Our largest asset is currently a property located at 77 Greenwich Street in Lower Manhattan (“77 Greenwich”), which is nearing completion of development as a mixed-use project consisting of a 90-unit residential condominium tower, retail space and a New York City elementary school. We also own a recently built 105-unit, 12-story multi-family property located at 237 11<sup style="font-size:7.5pt;line-height:100%;top:0pt;vertical-align:top;">th</sup> Street in Brooklyn, New York (“237 11<sup style="font-size:7.5pt;line-height:100%;top:0pt;vertical-align:top;">th</sup>”), and, through joint ventures, a 50% interest in a recently built 95-unit multi-family property known as The Berkley, located at 223 North 8<sup style="font-size:7.5pt;line-height:100%;top:0pt;vertical-align:top;">th</sup> Street, Brooklyn, New York (“The Berkley”), which is under contract for sale, and a 10% interest in a recently built 234-unit multi-family property located one block from The Berkley at 250 North 10<sup style="font-size:7.5pt;line-height:100%;top:0pt;vertical-align:top;">th</sup> Street (“250 North 10<sup style="font-size:7.5pt;line-height:100%;top:0pt;vertical-align:top;">th</sup>”) acquired in January 2020, also in Brooklyn, New York. In addition, we own a property occupied by retail tenants in Paramus, New Jersey.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 10pt 0pt;">We also control a variety of intellectual property assets focused on the consumer sector, a legacy of our predecessor, Syms Corp. (“Syms”), including FilenesBasement.com, our rights to the Stanley Blacker® brand, as well as the intellectual property associated with the Running of the Brides® event and An Educated Consumer is Our Best Customer® slogan. In addition, we had approximately $247.5 million of federal net operating loss carryforwards (“NOLs”) at December 31, 2021, which can be used to reduce our future taxable income and capital gains.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 10pt 0pt;">Trinity is the successor to Syms, which also owned Filene’s Basement. Syms and its subsidiaries filed for relief under the United States Bankruptcy Code in 2011. In September 2012, the Syms Plan of Reorganization (the “Plan”) became effective and Syms and its subsidiaries consummated their reorganization under Chapter 11 through a series of transactions contemplated by the Plan and emerged from bankruptcy. As part of those transactions, reorganized Syms merged with and into Trinity, with Trinity as the surviving corporation. We completed our final payment and reserve obligations under the Plan in March 2016.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 10pt 0pt;">On January 18, 2018, Syms and certain of its subsidiaries (the “Reorganized Debtors”) filed with the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) a motion for entry of a final decree (the “Final Decree”) (i) closing the chapter 11 cases of the Reorganized Debtors; and (ii) retaining the Bankruptcy Court’s jurisdiction as provided for in the Plan, including to enforce or interpret its own orders pertaining to the chapter 11 cases including, but not limited to, the Plan and Final Decree, among other matters.  On February 6, 2018, the Bankruptcy Court entered the Final Decree closing the chapter 11 cases of the Reorganized Debtors.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 10pt 0pt;">Square footage, leased occupancy percentage and residential unit disclosures in the notes to consolidated financial statements are unaudited.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 10pt 0pt;"><span style="font-style:italic;font-weight:bold;">COVID-19 Pandemic, Management’s Plans and Liquidity</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 10pt 0pt;">As a result of the COVID-19 pandemic, numerous federal, state, local and foreign governmental authorities issued a range of “stay-at-home orders”, proclamations and directives aimed at minimizing the spread of COVID-19, among other restrictions on businesses and individuals. Additional proclamations and directives have been issued in response to further outbreaks, and may be issued in the future. The outbreak and restrictions have adversely affected our business operations including, among other things, a temporary suspension of construction work at our most significant asset, 77 Greenwich, which resumed in mid-April 2020, initially on a modified basis as certain work was deemed “essential” construction, and the temporary closing of the sales center for the 77 Greenwich residential condominium units as well as the temporary suspension of the remediation work being performed on 237 11<sup style="font-size:7.5pt;line-height:100%;top:0pt;vertical-align:top;">th</sup>, which resumed in early June 2020 and was completed in the fourth quarter of 2021.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;">The economic downturn and volatility in financial markets appear to have been primarily driven by uncertainties associated with the pandemic. As it relates to our business, these uncertainties include, but are not limited to, the adverse effect of the pandemic on the New York City and broader economy, residential and potential residential sentiment in New York City, particularly Manhattan, lending institutions, construction and material supply partners, travel and transportation services, our employees, residents and tenants, and traffic to and within geographic areas containing our real estate assets. The pandemic has adversely affected our near-term, and may adversely affect our long-term, liquidity, cash flows and revenues and has required and may continue to require significant actions in response, including, but not limited to, reducing or discounting prices for our residential condominium units more than originally budgeted, seeking loan extensions and covenant modifications, modifying, eliminating or deferring rent payments in the short term for tenants in an effort to mitigate financial hardships and seeking access to federal, state and/or local financing and other programs in 2020 and 2021.   We were also subject </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 10pt 0pt;">to a New York State mandate disallowing tenant evictions for non-payment of rent due to COVID-19 related hardships throughout 2021, which was recently lifted on January 15, 2022.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 10pt 0pt;">The ultimate impact of the COVID-19 pandemic on our operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration and severity of the outbreak, recurring outbreaks, new information which may emerge concerning the pandemic and any additional preventative and protective actions that governments, lending institutions and other businesses, including us, may direct or institute.  These and other developments have resulted in and are expected to result in an extended period of continued business disruption and reduced operations for us as well as for lending and other businesses and governmental entities with which we do business. The ultimate financial impacts cannot be reasonably estimated at this time but the outbreak, restrictions and future developments are anticipated to continue to have an adverse impact on our business, financial condition and results of operations, which has been and may continue to be material, although in recent months we have seen indications of a recovery in the New York City real estate market and improvements in the financing markets.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 10pt 0pt;">The measures taken to date, together with any additional measures and developments including those noted above, impacted and will continue to impact the Company’s business in 2022 and beyond, although the extent of the significance of the impact of the COVID-19 outbreak on our business and the duration for which it may have an impact cannot be determined at this time. Although the impact of the pandemic has impeded the sale of residential condominium units at 77 Greenwich, we have closed on 14 residential condominium units in 2021 and have closed on three additional residential condominium units as of March 31, 2022. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 10pt 0pt;">As of December 31, 2021, we had total cash and restricted cash of $24.8 million, of which approximately $4.3 million was cash and cash equivalents and approximately $20.5 million was restricted cash. At this time, we believe our existing balances of cash and cash equivalents, together with proceeds that may be raised from the sale of The Berkley, which is under contract, subject to usual closing conditions and currently anticipated to close in April 2022, planned refinancing of the Paramus line of credit, or sale of the Paramus property and sales of the larger, higher floor condominium units at 77 Greenwich will be sufficient to satisfy our working capital needs and projected capital and other expenditures associated with our operations over the next 12 months, and the Company has concluded that management’s current plan alleviates the substantial doubt about its ability to continue as a going concern. Additionally, we continue to evaluate opportunities to raise capital through sales of equity, including under our ATM program, debt issuances or refinancings, including refinancing the property located at 237 11<sup style="font-size:7.5pt;line-height:100%;top:0pt;vertical-align:top;">th</sup> Street, and continue to evaluate dispositions of other properties or other assets and/or sales of partial interests in properties.  Facts and circumstances could change in the future that are outside of management’s control, such as additional government mandates, health official orders, travel restrictions and extended business shutdowns due to COVID-19, and the impact of such matters on residential sentiment in New York City in particular.</p>
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;padding-left:18pt;text-align:justify;text-indent:-18pt;margin:0pt 0pt 10pt 18pt;">c.   <i style="font-style:italic;">Use of Estimates</i> - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates.</p>
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CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
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SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
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CY2020Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
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CY2020Q1 us-gaap Debt Instrument Interest Rate Effective Percentage
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CY2021Q4 us-gaap Derivative Liabilities
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CY2020 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value
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CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period
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CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Weighted Average Grant Date Fair Value
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CY2020 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period
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CY2020 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Weighted Average Grant Date Fair Value
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CY2021Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value
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ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber
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CY2021 us-gaap Real Estate Acquisitions Through Foreclosures
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CY2019Q4 us-gaap Real Estate Accumulated Depreciation
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CY2021 us-gaap Sec Schedule Iii Real Estate Accumulated Depreciation Depreciation Expense
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CY2020 us-gaap Sec Schedule Iii Real Estate Accumulated Depreciation Depreciation Expense
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CY2021Q4 us-gaap Real Estate Accumulated Depreciation
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CY2020Q4 us-gaap Real Estate Accumulated Depreciation
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4191000

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