J.Jill, Inc. Announces Fourth Quarter and Full Year 2023 Results
Q4 FY23
Delivers Strong Gross Margin of 67.3% for Q4 FY23 and 70.7% for FY23
Operating Model Drives Operating Income Margin Expansion of 170bps for Q4 FY23 and 140bps for FY23
For the fourth quarter ended
-
Total net sales for the fourteen weeks ended
February 3, 2024 were up 1.2% to$149.4 million compared to$147.7 million for the thirteen weeks endedJanuary 28, 2023 . - Total company comparable sales, which includes comparable store and direct to consumer sales on a thirteen-week basis, decreased by 3.6% for the fourth quarter of fiscal 2023.
- Direct to consumer net sales, which represented 51.2% of total net sales, were up 4.0% compared to the fourth quarter of fiscal 2022.
-
Gross profit was
$100.6 million compared to$95.1 million in the fourth quarter of fiscal 2022. Gross margin was 67.3% compared to 64.4% in the fourth quarter of fiscal 2022. -
SG&A was
$90.0 million compared to$87.3 million in the fourth quarter of fiscal 2022. Excluding the non-recurring items and adjustments for costs to exit retail stores from both periods, SG&A as a percentage of total net sales was 60.3%, compared to 59.1% in the fourth quarter of fiscal 2022. -
Income from operations was
$10.5 million compared to$7.8 million in the fourth quarter of fiscal 2022. Operating income margin for the fourth quarter of fiscal 2023 was 7.0% compared to 5.3% in the fourth quarter of fiscal 2022. Adjusted Income from Operations*, which excludes non-recurring items, adjustments for costs to exit retail stores and impairment charges, was$10.5 million compared to$7.8 million in the fourth quarter of fiscal 2022. -
Interest expense was
$5.9 million compared to$5.7 million in the fourth quarter of fiscal 2022. -
During the fourth quarter of fiscal 2023, the Company recorded an income tax benefit of
$0.2 million compared to an income tax provision of$1.1 million in the fourth quarter of fiscal 2022 and the effective tax rate was (4.0%) compared to 51.2% in the fourth quarter of fiscal 2022. -
Net Income was
$4.8 million compared to$1.0 million in the fourth quarter of fiscal 2022. -
Net Income per Diluted Share was
$0.33 compared to$0.07 in the fourth quarter of fiscal 2022. Excluding the impact of non-recurring items, adjustments for costs to exit retail stores and impairment charges, Adjusted Net Income per Diluted Share* in the fourth quarter of fiscal 2023 was$0.23 compared to$0.11 in the fourth quarter of fiscal 2022. -
Adjusted EBITDA* for the fourth quarter of fiscal 2023 was
$17.6 million compared to$15.0 million in the fourth quarter of fiscal 2022. Adjusted EBITDA margin* for the fourth quarter of fiscal 2023 was 11.8% compared to 10.2% in the fourth quarter of fiscal 2022. - The Company closed 1 store in the fourth quarter of fiscal 2023 ending the quarter with 244 stores.
For the year ended
-
Total net sales were down 1.7% to
$604.7 million compared to$615.3 million for the year endedJanuary 28, 2023 . -
Total company comparable sales, which includes comparable store and direct to consumer sales on a fifty-two week basis, decreased by 1.4% for the year ended
February 3, 2024 . -
Direct to consumer net sales, which represented 46.5% of total net sales were down 2.3% compared to the year ended
January 28, 2023 . -
Gross profit was
$427.4 million compared to$422.1 million for the year endedJanuary 28, 2023 . Gross margin was 70.7% compared to 68.6% for the year endedJanuary 28, 2023 . -
SG&A was
$341.2 million compared to$341.9 million for the year endedJanuary 28, 2023 . In comparing fiscal 2023 to fiscal 2022, excluding the non-recurring items, adjustments for costs to exit retail stores and other one-time costs from both periods, SG&A as a percentage of total net sales was 56.5% compared to 55.6% for the year endedJanuary 28, 2023 . -
Income from operations was
$86.1 million compared to$78.7 million for the year endedJanuary 28, 2023 . Operating income margin for the year endedFebruary 3, 2024 was 14.2% compared to 12.8% for the year endedJanuary 28, 2023 . Adjusted Income from Operations*, which excludes non-recurring items, adjustments for costs to exit retail stores and impairment charges, was$85.5 million compared to$79.9 million for the year endedJanuary 28, 2023 . -
Interest expense was
$24.0 million compared to$20.1 million for the year endedJanuary 28, 2023 . -
During the year ended
February 3, 2024 , the Company recorded an income tax provision of$13.2 million compared to$16.5 million in the year endedJanuary 28, 2023 , and the effective tax rate was 26.7% compared to 28.1% for the year endedJanuary 28, 2023 . -
Net Income was
$36.2 million compared to$42.2 million for the year endedJanuary 28, 2023 . -
Net Income per Diluted Share was
$2.51 compared to$2.95 for the year endedJanuary 28, 2023 including the impact of non-recurring items, adjustments for costs to exit retail stores, impairment charges, and a$12.7 million loss on debt refinancing as part of the Company’s Term Loan refinancing in the first quarter of fiscal 2023. Excluding the impact of these items, Adjusted Net Income per Diluted Share* for the year endedFebruary 3, 2024 was$3.13 compared to$3.01 for the year endedJanuary 28, 2023 . -
Adjusted EBITDA* for the year ended
February 3, 2024 was$112.2 million compared to$109.4 million for the year endedJanuary 28, 2023 . Adjusted EBITDA margin* was 18.6% compared to 17.8% for the year endedJanuary 28, 2023 . - The Company opened 2 new stores and closed 1 store in fiscal 2023, ending the year with 244 stores.
J.Jill follows the retail 4-5-4 reporting calendar, which included an extra week in the fourth quarter of fiscal 2023 (the 53rd week). The 53rd week contributed approximately
Balance Sheet Highlights
-
Cash flow from operations for the year ended
February 3, 2024 was$63.3 million compared to$74.4 million for the year endedJanuary 28, 2023 . Free cash flow*, defined as cash flow from operations less capital expenditures, was$46.4 million compared to$59.4 million for fiscal 2022. The Company ended the fourth quarter of fiscal 2023 with a cash balance of$62.2 million . -
Inventory at the end of the fourth quarter of fiscal 2023 was
$53.3 million compared to$50.6 million at the end of the fourth quarter of fiscal 2022.
*Non-GAAP financial measures. Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA,” “Reconciliation of GAAP Operating Income to Adjusted Income from Operations,” “Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income” and “Reconciliation of GAAP Cash from Operations to Free Cash Flow” for more information.
Outlook
For the 52-week fiscal 2024, the Company expects net sales to be flat to up in the low-single digits and Adjusted EBITDA to be down in the mid-single digits compared to the 53-week fiscal 2023. This guidance reflects the negative impact from the loss of the 53rd week in fiscal 2023 of
For the first quarter of fiscal 2024, the Company expects net sales to be up in the low to mid-single-digits compared to the first quarter of fiscal 2023, and for Adjusted EBITDA to be in the range of
Conference Call Information
A conference call to discuss fourth quarter and full year 2023 results is scheduled for today,
A taped replay of the conference call will be available approximately two hours following the call and can be accessed both online and by dialing (800) 770-2030 or (609) 800-9909. The pin number to access the telephone replay is 2923526. The telephone replay will be available until
About
J.Jill is a national lifestyle brand that provides apparel, footwear and accessories designed to help its customers move through a full life with ease. The brand represents an easy, thoughtful and inspired style that celebrates the totality of all women and designs its products with its core brand ethos in mind: keep it simple and make it matter. J.Jill offers a high touch customer experience through over 200 stores nationwide and a robust ecommerce platform. J.Jill is headquartered outside
Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), we use the following non-GAAP measures of financial performance:
- Adjusted EBITDA, which represents net income plus interest expense, (benefit) provision for income taxes, depreciation and amortization, equity-based compensation expense, write- off of property and equipment, adjustment for costs to exit retail stores, loss on debt refinancing, impairment of long-lived assets and other non-recurring items, consisting of legal and advisory costs. We present Adjusted EBITDA on a consolidated basis because management uses it as a supplemental measure in assessing our operating performance, and we believe that it is helpful to investors, securities analysts and other interested parties as a measure of our comparative operating performance from period to period. We also use Adjusted EBITDA as one of the primary methods for planning and forecasting overall expected performance of our business and for evaluating on a quarterly and annual basis actual results against such expectations. Further, we recognize Adjusted EBITDA as a commonly used measure in determining business value and as such, use it internally to report results. We also use Adjusted EBITDA margin which represents, for any period, Adjusted EBITDA as a percentage of net sales.
- Adjusted Income from Operations, which represents operating income plus adjustment for costs to exit retail stores, impairment of long-lived assets and other non-recurring items. We present Adjusted Income from Operations because management uses it as a supplemental measure in assessing our operating performance, and we believe that it is helpful to investors, securities analysts, and other interested parties as a measure of our comparative operating performance from period to period.
- Adjusted Net Income, which represents net income plus income tax (benefit) provision, adjustment for costs to exit retail stores, loss on debt refinancing, impairment of long-lived assets and other non-recurring items. We present Adjusted Net Income because management uses it as a supplemental measure in assessing our operating performance, and we believe that it is helpful to investors, securities analysts and other interested parties as a measure of our comparative operating performance from period to period.
- Adjusted Net Income per Diluted Share (“Adjusted Diluted EPS”) represents Adjusted Net Income divided by the number of fully diluted shares outstanding. Adjusted Diluted EPS is presented as a supplemental measure in assessing our operating performance, and we believe that it is helpful to investors, securities analysts and other interested parties as a measure of our comparative operating performance from period to period.
- Free Cash Flow represents cash flow from operations less capital expenditures. Free Cash Flow is presented as a supplemental measure in assessing our liquidity, and we believe that it is helpful to investors, securities analysts and other interested parties as a measure of our comparative liquidity and operating performance from period to period.
While we believe that Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Income from Operations, Adjusted Net Income, Adjusted Diluted EPS and Free Cash Flow are useful in evaluating our business, they are non-GAAP financial measures that have limitations as analytical tools. These non-GAAP measures should not be considered alternatives to, or substitutes for, Net Income, Income from Operations,
Forward-Looking Statements
This press release contains, and oral statements made from time to time by our representatives may contain, “forward-looking statements.” All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management, expected market growth and any activities, events or developments that we intend, expect or believe may occur in the future are forward-looking statements. Such statements are often identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects,” “goal,” “target” (although not all forward-looking statements contain these identifying words) and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on our current expectations and assumptions regarding capital market conditions, our business, the economy and other future conditions and are not guarantees of future performance. Because forward-looking statements relate to the future, by their nature, they are inherently subject to a number of risks, uncertainties, potentially inaccurate assumptions and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in any forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, including risks regarding: (1) our sensitivity to changes in economic conditions and discretionary consumer spending; (2) the material adverse impact of pandemics or other health crises on our operations, business and financial results; (3) our ability to anticipate and respond to changing customer preferences, shifts in fashion and industry trends in a timely manner; (4) our ability to maintain our brand image, engage new and existing customers and gain market share; (5) the impact of operating in a highly competitive industry with increased competition; (6) our ability to successfully optimize our omnichannel operations, including our ability to enhance our marketing efforts and successfully realize the benefits from our investments in new technology, for example our recently implemented point-of-sale system and the forthcoming upgrade to our order management system; (7) our ability to use effective marketing strategies and increase existing and new customer traffic; (8) any interruptions in our foreign sourcing operations and the relationships with our suppliers and agents; (9) any increases in the demand for, or the price of, raw materials used to manufacture our merchandise and other fluctuations in sourcing and distribution costs; (10) any material damage or interruptions to our information systems; (11) our ability to protect our trademarks and other intellectual property rights; (12) our indebtedness restricting our operational and financial flexibility; (13) our ability to manage our inventory levels, size assortments and merchandise mix; (14) our status as a controlled company; and (15) other factors that may be described in our filings with the
(Tables Follow)
Consolidated Statements of Operations and Comprehensive Income (Unaudited) (Amounts in thousands, except share and per share data) |
||||||||
|
|
For the Fourteen Weeks Ended |
|
|
For the Thirteen Weeks Ended |
|
||
|
|
|
|
|
|
|
||
Net sales |
|
$ |
149,447 |
|
|
$ |
147,652 |
|
Costs of goods sold (exclusive of depreciation and amortization) |
|
|
48,838 |
|
|
|
52,562 |
|
Gross profit |
|
|
100,609 |
|
|
|
95,090 |
|
Selling, general and administrative expenses |
|
|
90,000 |
|
|
|
87,279 |
|
Impairment of long-lived assets (a) |
|
|
123 |
|
|
|
5 |
|
Operating income |
|
|
10,486 |
|
|
|
7,806 |
|
Interest expense, net |
|
|
5,901 |
|
|
|
4,393 |
|
Interest expense, net - related party |
|
|
— |
|
|
|
1,291 |
|
Income before provision for income taxes |
|
|
4,585 |
|
|
|
2,122 |
|
Income tax (benefit) provision |
|
|
(182 |
) |
|
|
1,086 |
|
Net income and total comprehensive income |
|
$ |
4,767 |
|
|
$ |
1,036 |
|
Net income per common share: |
|
|
|
|
|
|
||
Basic |
|
$ |
0.34 |
|
|
$ |
0.07 |
|
Diluted |
|
$ |
0.33 |
|
|
$ |
0.07 |
|
Weighted average common shares: |
|
|
|
|
|
|
||
Basic |
|
|
14,176,459 |
|
|
|
13,974,230 |
|
Diluted |
|
|
14,475,445 |
|
|
|
14,418,678 |
|
(a) Represents impairment of long-lived assets related primarily to leasehold improvements for the fourteen weeks ended |
Consolidated Statements of Operations and Comprehensive Income (Unaudited) (Amounts in thousands, except share and per share data) |
||||||||
|
|
For the Fifty-Three Weeks Ended |
|
|
For the Fifty-Two Weeks Ended |
|
||
|
|
|
|
|
|
|
||
Net sales |
|
$ |
604,661 |
|
|
$ |
615,268 |
|
Costs of goods sold (exclusive of depreciation and amortization) |
|
|
177,261 |
|
|
|
193,218 |
|
Gross profit |
|
|
427,400 |
|
|
|
422,050 |
|
Selling, general and administrative expenses |
|
|
341,161 |
|
|
|
341,903 |
|
Impairment of long-lived assets (a) |
|
|
189 |
|
|
|
1,413 |
|
Operating income |
|
|
86,050 |
|
|
|
78,734 |
|
Loss on debt refinancing |
|
|
12,702 |
|
|
|
— |
|
Interest expense, net |
|
|
22,909 |
|
|
|
15,946 |
|
Interest expense, net - related party |
|
|
1,074 |
|
|
|
4,114 |
|
Income before provision for income taxes |
|
|
49,365 |
|
|
|
58,674 |
|
Income tax provision |
|
|
13,164 |
|
|
|
16,499 |
|
Net income and total comprehensive income |
|
$ |
36,201 |
|
|
$ |
42,175 |
|
Net income per common share: |
|
|
|
|
|
|
||
Basic |
|
$ |
2.56 |
|
|
$ |
3.03 |
|
Diluted |
|
$ |
2.51 |
|
|
$ |
2.95 |
|
Weighted average common shares: |
|
|
|
|
|
|
||
Basic |
|
|
14,143,127 |
|
|
|
13,935,403 |
|
Diluted |
|
|
14,404,470 |
|
|
|
14,285,035 |
|
(a) Represents impairment of long-lived assets related primarily to leasehold improvements for the year ended |
Consolidated Balance Sheets (Unaudited) (Amounts in thousands, except common share data) |
||||||||
|
|
|
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
62,172 |
|
|
$ |
87,053 |
|
Accounts receivable |
|
|
5,042 |
|
|
|
7,039 |
|
Inventories, net |
|
|
53,259 |
|
|
|
50,585 |
|
Prepaid expenses and other current assets |
|
|
17,656 |
|
|
|
15,224 |
|
Total current assets |
|
|
138,129 |
|
|
|
159,901 |
|
Property and equipment, net |
|
|
54,118 |
|
|
|
53,497 |
|
Intangible assets, net |
|
|
66,246 |
|
|
|
73,188 |
|
|
|
|
59,697 |
|
|
|
59,697 |
|
Operating lease assets, net |
|
|
108,203 |
|
|
|
119,118 |
|
Other assets |
|
|
1,787 |
|
|
|
1,016 |
|
Total assets |
|
$ |
428,180 |
|
|
$ |
466,417 |
|
Liabilities and Shareholders’ Equity (Deficit) |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
41,112 |
|
|
$ |
39,306 |
|
Accrued expenses and other current liabilities |
|
|
42,283 |
|
|
|
49,730 |
|
Current portion of long-term debt (a) |
|
|
35,353 |
|
|
|
3,424 |
|
Current portion of operating lease liabilities |
|
|
36,204 |
|
|
|
34,527 |
|
Total current liabilities |
|
|
154,952 |
|
|
|
126,987 |
|
Long-term debt, net of discount and current portion |
|
|
120,595 |
|
|
|
195,517 |
|
Long-term debt, net of discount - related party |
|
|
— |
|
|
|
9,719 |
|
Deferred income taxes |
|
|
10,967 |
|
|
|
10,059 |
|
Operating lease liabilities, net of current portion |
|
|
103,070 |
|
|
|
123,101 |
|
Other liabilities |
|
|
1,378 |
|
|
|
1,253 |
|
Total liabilities |
|
|
390,962 |
|
|
|
466,636 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Shareholders’ Equity (Deficit) |
|
|
|
|
|
|
||
Common stock, par value |
|
|
107 |
|
|
|
102 |
|
Additional paid-in capital |
|
|
213,236 |
|
|
|
212,005 |
|
Accumulated deficit |
|
|
(176,125 |
) |
|
|
(212,326 |
) |
Total shareholders’ equity (deficit) |
|
|
37,218 |
|
|
|
(219 |
) |
Total liabilities and shareholders’ equity |
|
$ |
428,180 |
|
|
$ |
466,417 |
|
(a) As of |
Reconciliation of GAAP Net Income to Adjusted EBITDA (Unaudited) (Amounts in thousands) |
||||||||
|
|
For the Fourteen Weeks Ended |
|
|
For the Thirteen Weeks Ended |
|
||
|
|
|
|
|
|
|
||
Net income |
|
$ |
4,767 |
|
|
$ |
1,036 |
|
Add back: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
6,077 |
|
|
|
6,311 |
|
Income tax provision |
|
|
(182 |
) |
|
|
1,086 |
|
Interest expense, net |
|
|
5,901 |
|
|
|
4,393 |
|
Interest expense, net - related party |
|
|
— |
|
|
|
1,291 |
|
Adjustments: |
|
|
|
|
|
|
||
Equity-based compensation expense (a) |
|
|
1,005 |
|
|
|
890 |
|
Write-off of property and equipment (b) |
|
|
5 |
|
|
|
36 |
|
Adjustment for exited retail stores (d) |
|
|
(135 |
) |
|
|
(4 |
) |
Impairment of long-lived assets (e) |
|
|
123 |
|
|
|
5 |
|
Other non-recurring items (f) |
|
|
— |
|
|
|
1 |
|
Adjusted EBITDA |
|
$ |
17,561 |
|
|
$ |
15,045 |
|
Net sales |
|
$ |
149,447 |
|
|
$ |
147,652 |
|
Adjusted EBITDA margin |
|
|
11.8 |
% |
|
|
10.2 |
% |
|
|
For the Fifty-Three Weeks Ended |
|
|
For the Fifty-Two Weeks Ended |
|
||
|
|
|
|
|
|
|
||
Net income |
|
$ |
36,201 |
|
|
$ |
42,175 |
|
Add back: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
22,931 |
|
|
|
25,761 |
|
Income tax provision |
|
|
13,164 |
|
|
|
16,499 |
|
Interest expense, net |
|
|
22,909 |
|
|
|
15,946 |
|
Interest expense, net - related party |
|
|
1,074 |
|
|
|
4,114 |
|
Adjustments: |
|
|
|
|
|
|
||
Equity-based compensation expense (a) |
|
|
3,762 |
|
|
|
3,505 |
|
Write-off of property and equipment (b) |
|
|
70 |
|
|
|
267 |
|
Loss on debt refinancing (c) |
|
|
12,702 |
|
|
|
- |
|
Adjustment for exited retail stores (d) |
|
|
(767 |
) |
|
|
(250 |
) |
Impairment of long-lived assets (e) |
|
|
189 |
|
|
|
1,413 |
|
Other non-recurring items (f) |
|
|
2 |
|
|
|
7 |
|
Adjusted EBITDA |
|
$ |
112,237 |
|
|
$ |
109,437 |
|
Net sales |
|
$ |
604,661 |
|
|
$ |
615,268 |
|
Adjusted EBITDA margin |
|
|
18.6 |
% |
|
|
17.8 |
% |
(a) |
Represents expenses associated with equity incentive instruments granted to our management and board of directors. Incentive instruments are accounted for as equity-classified awards with the related compensation expense recognized based on fair value at the date of the grant. |
|
(b) |
Represents the net gain or loss on the disposal of fixed assets. |
|
(c) |
Represents loss on the repayment of Priming Term Loan Credit Agreement and the Subordinated Term Loan Credit Agreement. |
|
(d) |
Represents non-cash adjustments associated with exiting store leases earlier than anticipated. |
|
(e) |
Represents impairment of long-lived assets related primarily to leasehold improvements for the fourteen weeks ended and fifty-three weeks ended |
|
(f) |
Represents items management believes are not indicative of ongoing operating performance, including legal and advisory costs. |
Reconciliation of GAAP Operating Income to Adjusted Income from Operations (Unaudited) (Amounts in thousands) |
||||||||
|
|
For the Fourteen Weeks Ended |
|
|
For the Thirteen Weeks Ended |
|
||
|
|
|
|
|
|
|
||
Operating income |
|
$ |
10,486 |
|
|
$ |
7,806 |
|
Adjustment for exited retail stores (a) |
|
|
(135 |
) |
|
|
(4 |
) |
Impairment of long-lived assets (b) |
|
|
123 |
|
|
|
5 |
|
Other non-recurring items (c) |
|
|
— |
|
|
|
1 |
|
Adjusted income from operations |
|
$ |
10,474 |
|
|
$ |
7,808 |
|
|
|
|
|
|
|
|
||
|
|
For the Fifty-Three Weeks Ended |
|
|
For the Fifty-Two Weeks Ended |
|
||
|
|
|
|
|
|
|
||
Operating income |
|
$ |
86,050 |
|
|
$ |
78,734 |
|
Adjustment for exited retail stores (a) |
|
|
(767 |
) |
|
|
(250 |
) |
Impairment of long-lived assets (b) |
|
|
189 |
|
|
|
1,413 |
|
Other non-recurring items (c) |
|
|
2 |
|
|
|
7 |
|
Adjusted income from operations |
|
$ |
85,474 |
|
|
$ |
79,904 |
|
(a) |
Represents non-cash adjustments associated with exiting store leases earlier than anticipated. |
(b) |
Represents impairment of long-lived assets related primarily to leasehold improvements for the fourteen weeks and fifty-three weeks ended |
(c) |
Represents items management believes are not indicative of ongoing operating performance, including legal and advisory costs. |
Reconciliation of GAAP Net Income to Adjusted Net Income (Unaudited) (Amounts in thousands, except share and per share data) |
||||||||
|
|
For the Fourteen Weeks Ended |
|
|
For the Thirteen Weeks Ended |
|
||
|
|
|
|
|
|
|
||
Net income and total comprehensive income |
|
$ |
4,767 |
|
|
$ |
1,036 |
|
Add: Income tax (benefit) provision |
|
|
(182 |
) |
|
|
1,086 |
|
Income before provision for income tax |
|
|
4,585 |
|
|
|
2,122 |
|
Adjustments: |
|
|
|
|
|
|
||
Adjustment for exited retail stores (b) |
|
|
(135 |
) |
|
|
(4 |
) |
Impairment of long-lived assets (c) |
|
|
123 |
|
|
|
5 |
|
Other non-recurring items (d) |
|
|
— |
|
|
|
1 |
|
Adjusted income before income tax provision |
|
|
4,573 |
|
|
|
2,124 |
|
Less: Adjusted tax provision (e) |
|
|
1,221 |
|
|
|
597 |
|
Adjusted net income |
|
$ |
3,352 |
|
|
$ |
1,527 |
|
|
|
|
|
|
|
|
||
Adjusted net income per share attributable to common shareholders |
|
|
|
|
|
|
||
Basic |
|
$ |
0.24 |
|
|
$ |
0.11 |
|
Diluted |
|
$ |
0.23 |
|
|
$ |
0.11 |
|
Weighted average number of common shares |
|
|
|
|
|
|
||
Basic |
|
|
14,176,459 |
|
|
|
13,974,230 |
|
Diluted |
|
|
14,475,445 |
|
|
|
14,418,678 |
|
|
|
For the Fifty-Three Weeks Ended |
|
|
For the Fifty-Two Weeks Ended |
|
||
|
|
|
|
|
|
|
||
Net income and total comprehensive income |
|
$ |
36,201 |
|
|
$ |
42,175 |
|
Add: Income tax provision |
|
|
13,164 |
|
|
|
16,499 |
|
Income before provision for income tax |
|
|
49,365 |
|
|
|
58,674 |
|
Adjustments: |
|
|
|
|
|
|
||
Loss on debt refinancing(a) |
|
|
12,702 |
|
|
|
— |
|
Adjustment for exited retail stores (b) |
|
|
(767 |
) |
|
|
(250 |
) |
Impairment of long-lived assets (c) |
|
|
189 |
|
|
|
1,413 |
|
Other non-recurring items (d) |
|
|
2 |
|
|
|
7 |
|
Adjusted income before income tax provision |
|
|
61,491 |
|
|
|
59,844 |
|
Less: Adjusted tax provision(e) |
|
|
16,418 |
|
|
|
16,816 |
|
Adjusted net income |
|
$ |
45,073 |
|
|
$ |
43,028 |
|
|
|
|
|
|
|
|
||
Adjusted net income per share attributable to common shareholders |
|
|
|
|
|
|
||
Basic |
|
$ |
3.19 |
|
|
$ |
3.09 |
|
Diluted |
|
$ |
3.13 |
|
|
$ |
3.01 |
|
Weighted average number of common shares |
|
|
|
|
|
|
||
Basic |
|
|
14,143,127 |
|
|
|
13,935,403 |
|
Diluted |
|
|
14,404,470 |
|
|
|
14,285,035 |
|
(a) |
Represents loss on the repayment of Priming Term Loan Credit Agreement and the Subordinated Term Loan Credit Agreement. |
|
(b) |
Represents non-cash adjustments associated with exiting store leases earlier than anticipated. |
|
(c) |
Represents impairment of long-lived assets related primarily to leasehold improvement for the fifty-three weeks ended |
|
(d) |
Represents items management believes are not indicative of ongoing operating performance, including legal and advisory costs. |
|
(e) |
The Adjusted tax provision for Adjusted net income is estimated by applying a rate of 26.7% for fiscal 2023 and 28.1% for fiscal 2022. The Fourteen Weeks Ended |
Selected Cash Flow Information (Unaudited) (Amounts in thousands) |
||||||||
Summary Data from the Statement of Cash Flows |
||||||||
|
|
For the Fifty-Three Weeks Ended |
|
|
For the Fifty-Two Weeks Ended |
|
||
|
|
|
|
|
|
|
||
Net cash provided by operating activities |
|
$ |
63,313 |
|
|
$ |
74,425 |
|
Net cash used in investing activities |
|
|
(16,934 |
) |
|
|
(15,067 |
) |
Net cash used in financing activities |
|
|
(71,260 |
) |
|
|
(8,262 |
) |
Net change in cash and cash equivalents |
|
|
(24,881 |
) |
|
|
51,096 |
|
Cash and cash equivalents: |
|
|
|
|
|
|
||
Beginning of Period |
|
|
87,053 |
|
|
|
35,957 |
|
End of Period |
|
$ |
62,172 |
|
|
$ |
87,053 |
|
Reconciliation of GAAP Cash from Operations to Free Cash Flow
|
|
For the Fifty-Three Weeks Ended |
|
|
For the Fifty-Two Weeks Ended |
|
||
|
|
|
|
|
|
|
||
Net cash provided by operating activities |
|
$ |
63,313 |
|
|
$ |
74,425 |
|
Less: Capital expenditures (a) |
|
|
(16,934 |
) |
|
|
(15,067 |
) |
Free cash flow |
|
$ |
46,379 |
|
|
$ |
59,358 |
|
(a) Capital expenditures reflects net cash used in investing activities, which includes capitalized interest and excludes cash received from landlords for tenant allowances.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240320497801/en/
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