Solo Brands Announces Fourth Quarter and Fiscal Year 2023 Results Provides Full Year 2024 Guidance
“I am thrilled to be leading
Fourth Quarter 2023 Highlights Compared to Fourth Quarter 2022
-
Net sales of
$165.3 million , down$31.9 million or 16.2% -
Net loss of
$210.9 million , down$230.4 million -
Net loss per Class A common stock - basic and diluted of
$2.14 , down$2.32 -
Adjusted net income(1)(2) of
$11.3 million , down$17.7 million or 61.0% -
Adjusted EBITDA(1) of
$14.9 million , down$23.8 million or 61.6% -
Adjusted net income per Class A common stock(1)(2) of
$0.13 per diluted share, down$0.12
Full Year 2023 Highlights Compared to Full Year 2022
-
Net sales of
$494.8 million , down$22.9 million or 4.4% -
Net loss of
$195.3 million , down$187.7 million -
Net loss per Class A common stock - basic and diluted of
$1.84 , down$1.76 -
Net cash provided by operating activities of
$62.4 million , up$30.0 million or 92.7% -
Free cash flow(1) of
$53.3 million , up$30.2 million or 130.3% -
Adjusted net income(1)(2) of
$54.8 million , down$10.2 million or 15.7% -
Adjusted EBITDA(1) of
$70.2 million , down$17.4 million or 19.9% -
Adjusted net income per Class A common stock(1)(2) of
$0.58 , down$0.03
Operating Results for the Three Months Ended
Net sales decreased to
-
Direct-to-consumer revenues decreased to
$127.3 million , or 20.8%, compared to$160.8 million in the fourth quarter of 2022. -
Wholesale revenues increased to
$38.0 million , or 4.2%, compared to$36.5 million in the fourth quarter of 2022.
Gross profit decreased to
Selling, general and administrative expenses decreased to
Impairment charges of
Other operating expenses increased to
Interest expense, net increased to
Net (loss) income per Class A common stock basic and diluted per share was
Adjusted net income per Class A common stock(1)(2) was
Operating Results for the Twelve Months Ended
Net sales decreased to
-
Direct-to-consumer revenues decreased to
$358.1 million , or 15.4%, compared to$423.4 million in the prior year. -
Wholesale revenues increased to
$136.7 million , or 45.1%, compared to$94.2 million in the prior year.
Gross profit decreased to
Selling, general and administrative expenses decreased to
Depreciation and amortization expenses increased to
Impairment charges of
Other operating expenses increased to
Interest expense, net increased to
Net loss per Class A common stock year to date basic and diluted per share was
Adjusted net income per Class A common stock(1)(2) year to date basic and diluted per share was
Balance Sheet
Cash and cash equivalents were
Inventory was
Outstanding borrowings were
Full Year 2024 Outlook
Total revenue is expected to be between
Adjusted EBITDA margin* is expected to be between 10% to 12% for 2024.
The Company’s full year 2024 guidance is based on a number of assumptions that are subject to change, many of which are outside the Company’s control. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results.
* The Company has not provided a quantitative reconciliation of forecasted adjusted EBITDA margin to forecasted GAAP net income (loss) margin as a percent of net sales, respectively, within this press release because the Company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. With respect to GAAP net income (loss) margin, these items include, but are not limited to, equity-based compensation with respect to future grants and forfeitures, which could materially affect the computation of forward-looking GAAP net income, and are inherently uncertain and depend on various factors, some of which are outside of the Company’s control.
(1) This release includes references to non-GAAP financial measures. Refer to “Non-GAAP Financial Measures” later in this release for the definitions of the non-GAAP financial measures presented and a reconciliation of these measures to their closest comparable GAAP measures.
(2) This release reflects a change to the presentation of the adjusted net income (loss) per Class A common stock from previous periods in order to provide a more concise view. Prior periods are presented on this new basis for comparability purposes. Please see the definition of “Adjusted Net Income (Loss) per Class A Common Stock” below for more information.
Conference Call Details
A conference call to discuss the Company's fourth quarter and fiscal 2023 results is scheduled for
A recorded replay of the call will be available shortly after the conclusion of the call and remain available until
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding expectations of achieving long-term growth and profitability and our anticipated GAAP and non-GAAP guidance for the fiscal year ending
Availability of Information on Solo Brands’ Website and Social Media Profiles
Investors and others should note that
Social Media Profiles:
https://linkedin.com/company/solo-brands/
https://instagram.com/solobrands/
https://www.facebook.com/groups/368095467245044/
|
||||||||||||||||
Consolidated Statements of Operations and Comprehensive Income (Loss) |
||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
(In thousands, except per share data) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net sales |
|
$ |
165,318 |
|
|
$ |
197,243 |
|
|
$ |
494,776 |
|
|
$ |
517,627 |
|
Cost of goods sold |
|
|
68,899 |
|
|
|
79,277 |
|
|
|
192,624 |
|
|
|
199,452 |
|
Gross profit |
|
|
96,419 |
|
|
|
117,966 |
|
|
|
302,152 |
|
|
|
318,175 |
|
Operating expenses |
|
|
|
|
|
|
|
|
||||||||
Selling, general & administrative expenses |
|
|
79,953 |
|
|
|
84,749 |
|
|
|
249,432 |
|
|
|
259,048 |
|
Depreciation and amortization expenses |
|
|
7,014 |
|
|
|
6,398 |
|
|
|
26,593 |
|
|
|
24,592 |
|
Impairment charges |
|
|
248,967 |
|
|
|
— |
|
|
|
248,967 |
|
|
|
30,589 |
|
Other operating expenses |
|
|
1,274 |
|
|
|
2 |
|
|
|
5,010 |
|
|
|
3,582 |
|
Total operating expenses |
|
|
337,208 |
|
|
|
91,149 |
|
|
|
530,002 |
|
|
|
317,811 |
|
Income (loss) from operations |
|
|
(240,789 |
) |
|
|
26,817 |
|
|
|
(227,850 |
) |
|
|
364 |
|
Non-operating (income) expense |
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
|
3,462 |
|
|
|
2,433 |
|
|
|
11,004 |
|
|
|
6,271 |
|
Other non-operating (income) expense |
|
|
(436 |
) |
|
|
198 |
|
|
|
(7,297 |
) |
|
|
712 |
|
Total non-operating (income) expense |
|
|
3,026 |
|
|
|
2,631 |
|
|
|
3,707 |
|
|
|
6,983 |
|
Income (loss) before income taxes |
|
|
(243,815 |
) |
|
|
24,186 |
|
|
|
(231,557 |
) |
|
|
(6,619 |
) |
Income tax expense (benefit) |
|
|
(32,953 |
) |
|
|
4,678 |
|
|
|
(36,225 |
) |
|
|
1,001 |
|
Net income (loss) |
|
|
(210,862 |
) |
|
|
19,508 |
|
|
|
(195,332 |
) |
|
|
(7,620 |
) |
Less: net income earned by controlling members prior to the Reorganization Transactions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: net income (loss) attributable to noncontrolling interests |
|
|
(87,039 |
) |
|
|
8,175 |
|
|
|
(83,985 |
) |
|
|
(2,675 |
) |
Net income (loss) attributable to |
|
$ |
(123,823 |
) |
|
$ |
11,333 |
|
|
$ |
(111,347 |
) |
|
$ |
(4,945 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation, net of tax |
|
|
204 |
|
|
|
(876 |
) |
|
|
(268 |
) |
|
|
(827 |
) |
Comprehensive income (loss) |
|
|
(210,658 |
) |
|
|
18,632 |
|
|
|
(195,600 |
) |
|
|
(8,447 |
) |
Less: other comprehensive income (loss) attributable to noncontrolling interests |
|
|
74 |
|
|
|
(338 |
) |
|
|
(97 |
) |
|
|
(322 |
) |
Less: net income (loss) attributable to noncontrolling interests |
|
|
(87,039 |
) |
|
|
8,175 |
|
|
|
(83,985 |
) |
|
|
(2,675 |
) |
Comprehensive income (loss) attributable to |
|
$ |
(123,693 |
) |
|
$ |
10,795 |
|
|
$ |
(111,518 |
) |
|
$ |
(5,450 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per Class A common stock |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(2.14 |
) |
|
$ |
0.18 |
|
|
$ |
(1.84 |
) |
|
$ |
(0.08 |
) |
Diluted |
|
$ |
(2.14 |
) |
|
$ |
0.18 |
|
|
$ |
(1.84 |
) |
|
$ |
(0.08 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average Class A common stock outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
57,882 |
|
|
|
63,559 |
|
|
|
60,501 |
|
|
|
63,462 |
|
Diluted |
|
|
57,882 |
|
|
|
63,712 |
|
|
|
60,501 |
|
|
|
63,462 |
|
|
|||||||
Consolidated Balance Sheets |
|||||||
(In thousands, except par value and per unit data) |
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
19,842 |
|
|
$ |
23,293 |
|
Accounts receivable, net of allowance for credit losses of |
|
42,725 |
|
|
|
26,176 |
|
Inventory |
|
111,613 |
|
|
|
132,990 |
|
Prepaid expenses and other current assets |
|
21,893 |
|
|
|
12,639 |
|
Total current assets |
|
196,073 |
|
|
|
195,098 |
|
Non-current assets |
|
|
|
||||
Property and equipment, net |
|
26,159 |
|
|
|
15,166 |
|
Intangible assets, net |
|
221,010 |
|
|
|
234,632 |
|
|
|
169,648 |
|
|
|
382,658 |
|
Operating lease right-of-use assets |
|
30,788 |
|
|
|
34,259 |
|
Other non-current assets |
|
15,640 |
|
|
|
534 |
|
Total non-current assets |
|
463,245 |
|
|
|
667,249 |
|
Total assets |
$ |
659,318 |
|
|
$ |
862,347 |
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
21,846 |
|
|
$ |
11,783 |
|
Accrued expenses and other current liabilities |
|
55,155 |
|
|
|
43,377 |
|
Deferred revenue |
|
5,310 |
|
|
|
6,848 |
|
Current portion of long-term debt |
|
6,250 |
|
|
|
5,000 |
|
Total current liabilities |
|
88,561 |
|
|
|
67,008 |
|
Non-current liabilities |
|
|
|
||||
Long-term debt, net |
|
142,993 |
|
|
|
108,383 |
|
Deferred tax liability |
|
17,319 |
|
|
|
82,621 |
|
Operating lease liabilities |
|
24,648 |
|
|
|
29,133 |
|
Other non-current liabilities |
|
13,534 |
|
|
|
205 |
|
Total non-current liabilities |
|
198,494 |
|
|
|
220,342 |
|
|
|
|
|
||||
Commitments and contingencies (Note 16) |
|
|
|
||||
|
|
|
|
||||
Equity |
|
|
|
||||
Class A common stock, par value |
|
58 |
|
|
|
64 |
|
Class B common stock, par value |
|
33 |
|
|
|
32 |
|
Additional paid-in capital |
|
357,385 |
|
|
|
358,118 |
|
Retained earnings (accumulated deficit) |
|
(115,458 |
) |
|
|
5,746 |
|
Accumulated other comprehensive income (loss) |
|
(230 |
) |
|
|
(499 |
) |
|
|
(526 |
) |
|
|
(35 |
) |
Equity attributable to the controlling interest |
|
241,262 |
|
|
|
363,426 |
|
Equity attributable to noncontrolling interests |
|
131,001 |
|
|
|
211,571 |
|
Total equity |
|
372,263 |
|
|
|
574,997 |
|
Total liabilities and equity |
$ |
659,318 |
|
|
$ |
862,347 |
|
|
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
|
|
Year Ended |
||||||
(In thousands) |
|
2023 |
|
2022 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
Net income (loss) |
|
$ |
(195,332 |
) |
|
$ |
(7,620 |
) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities |
|
|
|
|
||||
Impairment charges |
|
|
248,967 |
|
|
|
30,589 |
|
Depreciation and amortization |
|
|
27,349 |
|
|
|
24,592 |
|
Equity-based compensation |
|
|
14,717 |
|
|
|
18,598 |
|
Operating lease right-of-use assets expense |
|
|
8,373 |
|
|
|
6,889 |
|
Changes in accounts receivable reserves |
|
|
295 |
|
|
|
1,293 |
|
Amortization of debt issuance costs |
|
|
860 |
|
|
|
860 |
|
Warranty provision |
|
|
690 |
|
|
|
— |
|
Equity-based compensation for non-employees |
|
|
333 |
|
|
|
— |
|
Loss (gain) on disposal of property and equipment |
|
|
219 |
|
|
|
66 |
|
Change in fair value of contingent consideration |
|
|
(1,573 |
) |
|
|
— |
|
Barter credits |
|
|
(7,160 |
) |
|
|
— |
|
Deferred income taxes |
|
|
(47,040 |
) |
|
|
(10,501 |
) |
Changes in assets and liabilities |
|
|
|
|
||||
Inventory |
|
|
28,182 |
|
|
|
(30,884 |
) |
Accrued expenses and other current liabilities |
|
|
6,811 |
|
|
|
7,587 |
|
Accounts receivable |
|
|
(16,328 |
) |
|
|
(5,923 |
) |
Other non-current assets and liabilities |
|
|
2,409 |
|
|
|
(542 |
) |
Deferred revenue |
|
|
(1,571 |
) |
|
|
3,334 |
|
Operating lease ROU assets and liabilities |
|
|
(8,113 |
) |
|
|
(5,817 |
) |
Prepaid expenses and other current assets |
|
|
(9,222 |
) |
|
|
(2,802 |
) |
Accounts payable |
|
|
9,557 |
|
|
|
2,676 |
|
Net cash (used in) provided by operating activities |
|
|
62,423 |
|
|
|
32,395 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
Capital expenditures |
|
|
(9,093 |
) |
|
|
(9,241 |
) |
Payments of contingent consideration |
|
|
(9,386 |
) |
|
|
— |
|
Acquisitions, net of cash acquired |
|
|
(34,600 |
) |
|
|
(774 |
) |
Net cash (used in) provided by investing activities |
|
|
(53,079 |
) |
|
|
(10,015 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
Proceeds from long-term debt |
|
|
70,000 |
|
|
|
45,000 |
|
Repayments of long-term debt |
|
|
(35,000 |
) |
|
|
(60,625 |
) |
Finance lease liability principal paid |
|
|
(379 |
) |
|
|
— |
|
Exercise of Options for Class A common stock |
|
|
39 |
|
|
|
— |
|
Common stock repurchases |
|
|
(36,957 |
) |
|
|
— |
|
Distributions to non-controlling interests |
|
|
(10,511 |
) |
|
|
(8,304 |
) |
Taxes paid related to net share settlement of equity awards |
|
|
(305 |
) |
|
|
(35 |
) |
Stock issued under employee stock purchase plan |
|
|
247 |
|
|
|
422 |
|
Net cash (used in) provided by financing activities |
|
|
(12,866 |
) |
|
|
(23,542 |
) |
Effect of exchange rate changes on cash |
|
|
71 |
|
|
|
(646 |
) |
Net change in cash and cash equivalents |
|
|
(3,451 |
) |
|
|
(1,808 |
) |
Cash and cash equivalents balance, beginning of period |
|
|
23,293 |
|
|
|
25,101 |
|
Cash and cash equivalents balance, end of period |
|
$ |
19,842 |
|
|
$ |
23,293 |
|
|
|
|
|
|
||||
SUPPLEMENTAL DISCLOSURES: |
|
|
|
|
||||
Cash interest paid |
|
$ |
10,327 |
|
|
$ |
5,125 |
|
Cash income taxes paid |
|
$ |
11,775 |
|
|
$ |
13,190 |
|
Construction in progress in accounts payable |
|
$ |
— |
|
|
$ |
293 |
|
|
|
|
|
|
||||
SUPPLEMENTAL NONCASH INVESTING AND FINANCING DISCLOSURES: |
|
|
|
|
||||
|
|
$ |
31,164 |
|
|
$ |
— |
|
Re-issuance of treasury stock |
|
$ |
5,342 |
|
|
$ |
— |
|
Operating lease right of use assets obtained in exchange for lease obligations |
|
$ |
3,316 |
|
|
$ |
14,797 |
|
Financing lease right of use assets obtained in exchange for lease obligations |
|
$ |
1,815 |
|
|
$ |
— |
|
Non-GAAP Financial Measures
We report our financial results in accordance with accounting principles generally accepted in
None of these non-GAAP measures is a measurement of financial performance under
These non-GAAP measures exclude certain tax payments that may require a reduction in cash available to us; do not reflect our cash expenditures, or future requirements, for capital expenditures (including capitalized software developmental costs) or contractual commitments; do not reflect changes in, or cash requirements for, our working capital needs; do not reflect the cash requirements necessary to service interest or principal payments on our debt; exclude certain purchase accounting adjustments related to acquisitions; and exclude equity-based compensation expense, which has recently been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy.
In addition, other companies may define and calculate similarly-titled non-GAAP financial measures differently than us, thereby limiting the usefulness of these non-GAAP financial measures as a comparative tool. Because of these and other limitations, you should consider our non-GAAP measures only as supplemental to other
Free Cash Flow
We calculate free cash flow as net cash provided by (used in) operating activities, reduced by capital expenditures (consisting of purchases of property and equipment, purchases of intangible assets and capitalization of internal use software). We believe free cash flow is an important liquidity measure of the cash that is available for operational expenses, investments in our business, strategic acquisitions, and for certain other activities such as repaying debt obligations and stock repurchases.
Adjusted Net Income (Loss)
We calculate adjusted net income as net income (loss) excluding impairment charges and the costs that are expected to be nonrecurring in nature and the costs that are believed by management to be non-operating in nature and not representative of the Company’s core operating performance, as listed below under “Non-GAAP Adjustments”. Adjusted net income (loss) attributable to noncontrolling interests is calculated as income (loss) before income taxes, adjusted in the same manner as adjusted net income noted above, adjusted for the allocable attribution to the noncontrolling interest.
Adjusted Net Income (Loss) per Class A Common Stock
We calculate adjusted net income (loss) as adjusted net income, as defined above, less the allocable portion of net income to the noncontrolling interest, divided by weighted average diluted shares or weighted average shares of Class A common stock, respectively, as calculated under
Beginning with the reporting of our results for the three and twelve month periods ended
EBITDA
We calculate EBITDA as net income (loss) before interest expense, income taxes, and depreciation and amortization expenses.
Adjusted EBITDA
We calculate adjusted EBITDA as net income (loss) before interest expense, income taxes, depreciation and amortization expenses, impairment charges, equity-based compensation expense, the costs that are expected to be nonrecurring in nature and the costs that are believed by management to be non-operating in nature and not representative of the Company’s core operating performance, as listed below under “Non-GAAP Adjustments”.
Adjusted EBITDA Margin
We calculate adjusted EBITDA margin as adjusted EBITDA divided by net sales.
Non-GAAP Adjustments
In addition to the costs specifically noted under the non-GAAP metrics above, the Company believes that evaluation of its financial performance can be enhanced by a supplemental presentation of results that exclude nonrecurring costs and costs believed by management to be non-operating in nature and not representative of the Company’s core operating performance. These costs are excluded in order to enhance consistency and comparativeness with results in prior periods that do not include such items and to provide a basis for evaluating operating results in future periods.
- Amortization expense - Represents the non-cash amortization of intangible assets related to the reorganization transactions in 2020 and the 2021 and 2023 acquisitions.
- Equity-based compensation expense - Represents the non-cash expense related to the incentive units, restricted stock units, options, performance stock units and employee stock purchases, with vestings occurring over time and settled with the Company’s common stock.
-
Impairment charges - Represents intangible asset and goodwill impairments recorded during the three months ended
June 30, 2022 and the three months endedDecember 31, 2023 . - Tax refunds - Represents a one-time tax refund related to COVID-19 era benefits.
- Transaction costs - Represents transaction costs primarily related to professional service fees incurred in connection with the secondary offering and S-3 registration statement filed in 2023 and in connection with the IPO in the comparative periods.
- Acquisition-related costs - Represents expenses that are associated with acquisition activities, including financial diligence and legal fees.
- Management transition costs - Represents costs primarily related to executive transition costs for executive search fees and related costs for the transition of certain members of management.
- Inventory fair value write-ups - Represents the recognition of fair market value write-ups of inventory accounted for under ASC 805 related to the 2021 and 2023 acquisitions.
- Business optimization and expansion expenses - Represents various start-up and transition costs, including warehouse optimization charges; costs for expansion into new international and domestic markets; select consulting and software implementation fees.
- Contract termination and modification fees - Includes one-time advertising spend contract termination fees with offsetting benefits that were fully realized by the end of 2023.
- Changes in fair value of contingent earn-out liability - Represents the charge to mark the contingent earn-out consideration to fair value in connection with the 2023 acquisitions.
- Tax impact of adjusting items - Represents the tax impact of the respective adjustments for each non-GAAP financial measure calculated at an expected statutory rate of 21.0%, adjusted to reflect the allocation to the controlling interest.
|
||||||||||||||||
Reconciliation of Non-GAAP Financial Information to GAAP |
||||||||||||||||
(Unaudited) (In thousands, except per share amounts) |
||||||||||||||||
The following tables reconcile the non-GAAP financial measures to their most comparable GAAP measure for the periods presented: |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
(dollars in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Gross profit |
|
$ |
96,419 |
|
|
$ |
117,966 |
|
|
$ |
302,152 |
|
|
$ |
318,175 |
|
Inventory fair value write-up(1) |
|
|
907 |
|
|
|
— |
|
|
|
907 |
|
|
|
7,813 |
|
Adjusted gross profit |
|
$ |
97,326 |
|
|
$ |
117,966 |
|
|
$ |
303,059 |
|
|
$ |
325,988 |
|
|
|
|
|
|
|
|
|
|
||||||||
Gross profit margin |
|
|
|
|
||||||||||||
(Gross profit as a % of net sales) |
|
58.3 |
% |
|
59.8 |
% |
|
61.1 |
% |
|
61.5 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross profit margin |
|
|
|
|
||||||||||||
(Adjusted gross profit as a % of net sales) |
|
58.9 |
% |
|
59.8 |
% |
|
61.3 |
% |
|
63.0 |
% |
|
|
Year Ended |
||||||
(dollars in thousands) |
|
2023 |
|
2022 |
||||
Net cash (used in) provided by operating activities |
|
$ |
62,423 |
|
|
$ |
32,395 |
|
Capital expenditures |
|
|
(9,093 |
) |
|
|
(9,241 |
) |
Free cash flow |
|
$ |
53,330 |
|
|
$ |
23,154 |
|
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
(dollars in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income (loss) |
|
$ |
(210,862 |
) |
|
$ |
19,508 |
|
|
$ |
(195,332 |
) |
|
$ |
(7,620 |
) |
Amortization expense |
|
|
6,133 |
|
|
|
5,270 |
|
|
|
22,396 |
|
|
|
21,018 |
|
Impairment charges |
|
|
248,967 |
|
|
|
— |
|
|
|
248,967 |
|
|
|
30,589 |
|
Equity-based compensation expense |
|
|
21 |
|
|
|
5,385 |
|
|
|
14,787 |
|
|
|
18,598 |
|
Tax refunds |
|
|
— |
|
|
|
— |
|
|
|
(5,121 |
) |
|
|
— |
|
Transaction costs |
|
|
(104 |
) |
|
|
— |
|
|
|
1,390 |
|
|
|
1,070 |
|
Acquisition-related costs |
|
|
596 |
|
|
|
515 |
|
|
|
1,957 |
|
|
|
2,186 |
|
Management transition costs |
|
|
706 |
|
|
|
(216 |
) |
|
|
1,621 |
|
|
|
1,891 |
|
Inventory fair value write-ups |
|
|
907 |
|
|
|
— |
|
|
|
907 |
|
|
|
7,813 |
|
Business optimization and expansion expense |
|
|
6 |
|
|
|
— |
|
|
|
462 |
|
|
|
1,208 |
|
Contract termination and modification fees |
|
|
(4,317 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Changes in fair value of contingent earn-out liability |
|
|
669 |
|
|
|
— |
|
|
|
(1,573 |
) |
|
|
— |
|
Tax impact of adjusting items |
|
|
(31,401 |
) |
|
|
(1,460 |
) |
|
|
(35,708 |
) |
|
|
(11,771 |
) |
Adjusted net income |
|
$ |
11,321 |
|
|
$ |
29,002 |
|
|
$ |
54,753 |
|
|
$ |
64,982 |
|
Less: adjusted net income (loss) attributable to noncontrolling interests |
|
|
3,548 |
|
|
|
12,837 |
|
|
|
19,697 |
|
|
|
26,100 |
|
Adjusted net income (loss) attributable to |
|
$ |
7,773 |
|
|
$ |
16,165 |
|
|
$ |
35,056 |
|
|
$ |
38,882 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net income per Class A common stock |
|
$ |
0.13 |
|
|
$ |
0.25 |
|
|
$ |
0.58 |
|
|
$ |
0.61 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average Class A common stock outstanding - basic |
|
|
57,882 |
|
|
|
63,559 |
|
|
|
60,501 |
|
|
|
63,462 |
|
Weighted-average Class A common stock outstanding - diluted |
|
|
57,882 |
|
|
|
63,712 |
|
|
|
60,501 |
|
|
|
63,462 |
|
|
|
|
||||||||||||||
Net income (loss) |
|
$ |
(210,862 |
) |
|
$ |
19,508 |
|
|
$ |
(195,332 |
) |
|
$ |
(7,620 |
) |
Interest expense |
|
|
3,462 |
|
|
|
2,433 |
|
|
|
11,004 |
|
|
|
6,271 |
|
Income tax (benefit) expense |
|
|
(32,953 |
) |
|
|
4,678 |
|
|
|
(36,225 |
) |
|
|
1,001 |
|
Depreciation and amortization expense |
|
|
7,770 |
|
|
|
6,398 |
|
|
|
27,349 |
|
|
|
24,592 |
|
EBITDA |
|
|
(232,583 |
) |
|
|
33,017 |
|
|
|
(193,204 |
) |
|
|
24,244 |
|
Impairment charges |
|
|
248,967 |
|
|
|
— |
|
|
|
248,967 |
|
|
|
30,589 |
|
Equity-based compensation expense |
|
|
21 |
|
|
|
5,385 |
|
|
|
14,787 |
|
|
|
18,598 |
|
Tax refunds |
|
|
— |
|
|
|
— |
|
|
|
(5,121 |
) |
|
|
— |
|
Transaction costs |
|
|
(104 |
) |
|
|
— |
|
|
|
1,390 |
|
|
|
1,070 |
|
Acquisition-related costs |
|
|
596 |
|
|
|
515 |
|
|
|
1,957 |
|
|
|
2,186 |
|
Management transition costs |
|
|
706 |
|
|
|
(216 |
) |
|
|
1,621 |
|
|
|
1,891 |
|
Inventory fair value write-ups |
|
|
907 |
|
|
|
— |
|
|
|
907 |
|
|
|
7,813 |
|
Business optimization and expansion expense |
|
|
6 |
|
|
|
— |
|
|
|
462 |
|
|
|
1,208 |
|
Contract termination and modification fees |
|
|
(4,317 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Changes in fair value of contingent earn-out liability |
|
|
669 |
|
|
|
— |
|
|
|
(1,573 |
) |
|
|
— |
|
Adjusted EBITDA |
|
$ |
14,868 |
|
|
$ |
38,701 |
|
|
$ |
70,193 |
|
|
$ |
87,599 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) margin |
|
|
|
|
||||||||||||
(Net income (loss) as a % of net sales) |
|
(127.5 |
)% |
|
9.9 |
% |
|
(39.5 |
)% |
|
(1.5 |
)% |
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA margin |
|
|
|
|
||||||||||||
(Adjusted EBITDA as a % of net sales) |
|
9.0 |
% |
|
19.6 |
% |
|
14.2 |
% |
|
16.9 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240314567144/en/
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