COPPELL, Texas--(BUSINESS WIRE)--
The Container Store Group, Inc. (NYSE:TCS) (the “Company”), today
announced financial results for the third quarter and year-to-date ended
November 30, 2013.
Kip Tindell, Chairman and Chief Executive Officer, said: “We are pleased
with our operating results in the third quarter. Our net sales increase
of 7.3% was fueled by our retail business at The Container Store, where
sales increased 10.8%. We saw strong performance across new and existing
stores as comparable store sales increased 4.7%; our fourteenth
consecutive quarter of comparable store sales increases. This
performance in combination with our strong product margins and expense
management drove adjusted net income per diluted common share of $0.11.
These results demonstrate the strength of our differentiated business
model, brand awareness, unique employee-first culture and solid
execution by the entire team at The Container Store.”
Tindell continued: “Our commitment to our Foundation Principles and
Conscious Capitalism, our focus on training, communication and
solutions-based selling, coupled with strong partnerships with our
vendors, results in an unmatched store experience for our customers as
they shop the world’s most comprehensive and celebrated collection of
storage and organization solutions. With 63 stores today, we have a long
runway of growth ahead of us as we expand our store base to realize the
300+ store opportunity that we believe exists.”
“During the third quarter we reached a significant milestone with our
successful initial public offering,” Tindell added. “We couldn’t have
been more thrilled, humbled and honored by the reception we received
from the market. By taking this path, we are also able to facilitate
broader employee ownership of The Container Store, increasing our
ability to operate a business where everyone associated with it thrives.
We look forward to continuing to deliver long-term value for all of our
stakeholders.”
For the third quarter (thirteen weeks) ended November 30, 2013, on a
consolidated basis:
-
Net sales increased by 7.3% to $188.3 million from $175.4 million in
the third quarter of fiscal 2012. Comparable store sales increased by
4.7%. Net sales in The Container Store retail business were up 10.8%
to $163.7 million and Elfa third party sales decreased 11.3% to $24.6
million.
-
Gross margin was 60.0%, an increase of 60 basis points compared to the
third quarter of fiscal 2012. Net sales at The Container Store retail
business represented 87.0% of consolidated sales in the third quarter
fiscal 2013, as compared to 84.2% in third quarter fiscal 2012. Since
gross margin percentage is higher in The Container Store retail
business, this shift in sales mix led to an improvement in
consolidated gross margin.
-
Selling, general and administrative expenses (“SG&A”) increased by
8.7% to $88.8 million from $81.7 million in the third quarter of
fiscal 2012. SG&A as a percentage of net sales increased 60 basis
points primarily due to increases in expenses incurred in preparation
for the Initial Public Offering (“IPO”), expenses associated with
operating as a public company as well as a timing shift in direct mail
expenses.
-
The Company opened two new stores and ended the quarter with 63 stores
in 22 states and the District of Columbia. The Company has opened six
new stores including the relocation of one undersized, older format
store in fiscal 2013.
-
Net interest expense increased to $5.8 million from $5.1 million in
the third quarter of fiscal 2012.
-
U.S. generally accepted accounting principles (“GAAP”) net loss
was $9.5 million in the third quarter of fiscal 2013, which
includes $14.6 million of IPO-related stock-based compensation
expense, compared to net income of $6.9 million in the third
quarter of fiscal 2012. After considering distributions
accumulated to preferred shareholders of $15.6 million and $22.5
million in the third quarters of fiscal 2013 and fiscal 2012,
respectively, net loss per basic and diluted common share was
$1.39 in the third quarter of fiscal 2013 compared to $5.32 in
the third quarter of fiscal 2012.
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|
-
Adjusted net income was $5.2 million or $0.11 per diluted common
share compared to $5.3 million or $0.11 per diluted common share
for the third quarter of fiscal 2012, which excludes certain
items that we do not consider in the evaluation of ongoing
operating performance, including IPO-related expenses, and
distributions accumulated to preferred shareholders in both
periods (see GAAP/Non-GAAP reconciliation table at the end of
this release).
|
-
Adjusted EBITDA increased 7.3% to $24.1 million compared to $22.5
million in the third quarter of fiscal 2012, as calculated in
accordance with the Company’s Senior Secured Term Loan Facility (see
GAAP/Non-GAAP reconciliation table).
For the year to date (thirty-nine weeks) ended November 30, 2013, on
a consolidated basis:
-
Net sales increased by 8.6% to $531.7 million from $489.7 million in
year to date fiscal 2012. Comparable store sales increased by 3.6%.
Sales in The Container Store’s retail business were up 11.6% to $466.5
million and Elfa third party sales decreased 9.1% to $65.2 million.
-
Gross margin was 59.0%, an increase of 30 basis points compared to
year to date fiscal 2012. Net sales at The Container Store retail
business represented 87.7% of consolidated sales in the year to date
fiscal 2013, as compared to 85.4% in year to date fiscal 2012. Since
gross margin percentage is higher in The Container Store retail
business, this shift in sales mix led to an improvement in
consolidated gross margin.
-
SG&A increased by 8.8% to $257.9 million from $237.0 million in year
to date fiscal 2012. SG&A as a percentage of net sales increased 10
basis points primarily due to increases in expenses associated with
the IPO and operating as a public company.
-
Net interest expense increased to $16.9 million from $16.0 million in
the corresponding period of fiscal 2012.
-
GAAP net loss was $10.2 million, which includes $14.6 million of
IPO-related stock based compensation expense, compared to a GAAP
net loss of $2.2 million in the corresponding period of fiscal
2012. After considering distributions accumulated to preferred
shareholders of $59.7 million and $65.4 million in the first
thirty-nine weeks of fiscal 2013 and fiscal 2012, respectively,
net loss per basic and diluted common share was $8.78 compared
to $23.08 in the corresponding period of fiscal 2012.
|
|
-
Adjusted net income was $5.7 million or $0.12 per diluted common
share compared to $4.2 million or $0.09 per diluted common share
in the corresponding period of fiscal 2012, which excludes
certain items that we do not consider in the evaluation of
ongoing operating performance, including IPO-related expenses,
and distributions accumulated to preferred shareholders in both
periods (see GAAP/Non-GAAP reconciliation table).
|
-
Adjusted EBITDA increased 8.0% to $56.8 million compared to $52.6
million in the third quarter of fiscal 2012, as calculated in
accordance with the Company’s Senior Secured Term Loan Facility (see
GAAP/Non-GAAP reconciliation table).
Balance sheet highlights as of November 30, 2013:
-
Cash: $10.8 million
-
Total debt: $368.5 million (after giving effect to pay-down of $31.0
million with net IPO proceeds to the Company)
-
Total liquidity (cash plus availability on revolving credit facilities
of $68.1 million): $78.9 million
Outlook
For fiscal 2013, consolidated net sales are expected to be $754 million
based on opening six new stores, inclusive of one store relocation, and
an increase in comparable store sales of 3.4%. Adjusted net income,
which excludes certain items that we do not consider in our evaluation
of ongoing operating performance and distributions accumulated to
preferred shareholders, is expected to be $0.40 per diluted common share
based on estimated adjusted diluted common shares outstanding of 48.8
million.
Conference Call Information
A conference call to discuss third quarter fiscal 2013 financial results
is scheduled for today, January 7, 2014, at 4:30 PM Eastern Time.
Investors and analysts interested in participating in the call are
invited to dial (877) 407-3982 (international callers please dial (201)
493-6780) approximately 10 minutes prior to the start of the call. A
live audio webcast of the conference call will be available online at www.containerstore.com
in the investor relations section of the website.
A taped replay of the conference call will be available within two hours
of the conclusion of the call and can be accessed both online and by
dialing (877) 870-5176. The pin number to access the telephone replay is
13573235. The replay will be available through January 14, 2014.
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 statements regarding our anticipated financial performance and
liquidity, our expectations regarding growth and expansion of our store
base, beliefs regarding our business model and customer experience,
expectations regarding broader employee ownership of the Company, and
beliefs regarding stakeholder value.
These forward-looking statements are based on management’s current
expectations. These statements are neither promises nor guarantees, but
involve known and unknown risks, uncertainties and other important
factors that may cause our actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements,
including, but not limited to, the following: overall decline in the
health of the economy, consumer spending, and the housing market; our
inability to manage costs and risks relating to new store openings; our
inability to source and market new products to meet consumer
preferences; our failure to achieve or maintain profitability; our
dependence on a single distribution center for all of our stores; our
vulnerability to natural disasters and other unexpected events; our
reliance upon independent third party transportation providers; our
inability to protect our brand; our failure to successfully anticipate
consumer preferences and demand; our inability to manage our growth;
inability to locate available retail store sites on terms acceptable to
us; our inability to maintain sufficient levels of cash flow to meet
growth expectations; disruptions in the global financial markets leading
to difficulty in borrowing sufficient amounts of capital to finance the
carrying costs of inventory to pay for capital expenditures and
operating costs; fluctuations in currency exchange rates; our inability
to effectively manage our online sales; competition from other stores
and internet based competition; our inability to obtain merchandise on a
timely basis at competitive prices as a result of changes in vendor
relationships; vendors may sell similar or identical products to our
competitors; our reliance on key executive management; our inability to
find, train and retain key personnel; labor relations difficulties;
increases in health care costs and labor costs; our dependence on
foreign imports for our merchandise; violations of the U.S. Foreign
Corrupt Practices Act and similar worldwide anti bribery and anti
kickback laws; and our indebtedness may restrict our current and future
operations.
These and other important factors discussed under the caption "Risk
Factors" in our final prospectus filed with the Securities and Exchange
Commission, or SEC, on November 1, 2013 relating to our Registration
Statement on Form S-1, and our other reports filed with the SEC could
cause actual results to differ materially from those indicated by the
forward-looking statements made in this press release. Any such
forward-looking statements represent management's estimates as of the
date of this press release. While we may elect to update such
forward-looking statements at some point in the future, we disclaim any
obligation to do so, even if subsequent events cause our views to
change. These forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date of this
press release.
About The Container Store
The Container Store, the nation’s leading retailer of storage and
organization products, opened its first store in Dallas in 1978 and
currently has 63 locations across the country. The Container Store has
over 10,000 products to help customers save space and, ultimately, save
them time. The retailer offers free closet design services every day in
its stores and online using elfa®, the premiere shelving and
drawer system. Visit www.containerstore.com
for more information about store locations, the product collection and
services offered. The Container Store has been named to the top of
FORTUNE magazine’s annual list of the “100 Best Companies to Work For”
for the past 14 years. To find out more about The Container Store’s
unique culture, Foundation Principles and devotion to Conscious
Capitalism, visit the retailer’s blog at www.whatwestandfor.com.
|
|
|
The Container Store Group, Inc.
|
|
|
|
Consolidated balance sheets (unaudited)
|
|
|
|
(In thousands, except share amounts)
|
|
|
November 30, 2013
|
|
|
March 2, 2013
|
|
|
November 24, 2012
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
|
$10,822
|
|
|
$25,351
|
|
|
$19,875
|
|
Accounts receivable, net
|
|
|
28,088
|
|
|
25,536
|
|
|
24,380
|
|
Inventory
|
|
|
105,124
|
|
|
82,443
|
|
|
96,106
|
|
Prepaid expenses and other current assets
|
|
|
24,297
|
|
|
21,284
|
|
|
20,359
|
|
Forward contracts
|
|
|
—
|
|
|
1,103
|
|
|
615
|
|
Deferred tax assets, net
|
|
|
1,505
|
|
|
1,505
|
|
|
1,203
|
|
Total current assets
|
|
|
169,836
|
|
|
157,222
|
|
|
162,538
|
|
Noncurrent assets:
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
150,142
|
|
|
141,177
|
|
|
136,901
|
|
Goodwill
|
|
|
202,815
|
|
|
202,815
|
|
|
202,815
|
|
Trade names
|
|
|
241,138
|
|
|
241,940
|
|
|
255,100
|
|
Deferred financing costs, net
|
|
|
10,188
|
|
|
8,745
|
|
|
9,114
|
|
Other assets
|
|
|
841
|
|
|
921
|
|
|
834
|
|
Total noncurrent assets
|
|
|
605,124
|
|
|
595,598
|
|
|
604,764
|
|
Total assets
|
|
|
$774,960
|
|
|
$752,820
|
|
|
$767,302
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$57,365
|
|
|
$54,334
|
|
|
$52,867
|
|
Accrued liabilities
|
|
|
57,211
|
|
|
52,330
|
|
|
53,429
|
|
Income taxes payable
|
|
|
496
|
|
|
2,650
|
|
|
1,398
|
|
Secured revolving credit, Sweden
|
|
|
16,679
|
|
|
13,482
|
|
|
17,027
|
|
Current portion of long-term debt
|
|
|
8,975
|
|
|
9,023
|
|
|
8,878
|
|
Total current liabilities
|
|
|
140,726
|
|
|
131,819
|
|
|
133,599
|
|
Noncurrent liabilities:
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
342,863
|
|
|
276,348
|
|
|
293,711
|
|
Deferred tax liabilities, net
|
|
|
89,837
|
|
|
87,770
|
|
|
88,366
|
|
Deferred rent and other long-term liabilities
|
|
|
24,252
|
|
|
23,508
|
|
|
22,227
|
|
Total noncurrent liabilities
|
|
|
456,952
|
|
|
387,626
|
|
|
404,304
|
|
Total liabilities
|
|
|
597,678
|
|
|
519,445
|
|
|
537,903
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 250,000,000 shares authorized,
47,922,842 shares issued and outstanding at November 30, 2013;
3,528,280 shares authorized, 2,942,326 shares issued and 2,929,466
shares outstanding at March 2, 2013; 3,528,280 shares authorized,
2,942,326 shares issued and 2,928,490 shares outstanding at November
24, 2012
|
|
|
479
|
|
|
29
|
|
|
29
|
|
Preferred stock, $0.01 par value:
|
|
|
|
|
|
|
|
|
|
|
Senior cumulative; no shares authorized, issued or outstanding at
November 30, 2013; 250,000 shares authorized, 202,480 shares issued
and 202,196 shares outstanding at March 2, 2013; 250,000 shares
authorized, 202,480 shares issued and 202,200 shares outstanding at
November 24, 2012
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Junior cumulative no shares authorized, issued or outstanding at
November 30, 2013; 250,000 shares authorized, 202,480 shares issued
and 202,196 shares outstanding at March 2, 2013; 250,000 shares
authorized, 202,480 shares issued and 202,200 shares outstanding at
November 24, 2012
|
|
|
—
|
|
|
2
|
|
|
2
|
|
Additional paid-in capital
|
|
|
852,698
|
|
|
455,246
|
|
|
455,121
|
|
Accumulated other comprehensive income
|
|
|
716
|
|
|
2,713
|
|
|
965
|
|
Retained deficit
|
|
|
(676,611)
|
|
|
(223,830)
|
|
|
(225,924)
|
|
Treasury stock, no shares, 13,426, and 14,394 shares as of November
30, 2013, March 2, 2013, and November 24, 2012, respectively
|
|
|
—
|
|
|
(787)
|
|
|
(796)
|
|
Total shareholders’ equity
|
|
|
177,282
|
|
|
233,375
|
|
|
229,399
|
|
Total liabilities and shareholders’ equity
|
|
|
$774,960
|
|
|
$752,820
|
|
|
$767,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Container Store Group, Inc.
|
|
|
|
Consolidated statements of operations (unaudited)
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
|
Thirty-Nine Weeks Ended
|
|
(In thousands, except share and per share amounts)
|
|
|
November 30, 2013
|
|
|
November 24, 2012
|
|
|
November 30, 2013
|
|
|
November 24, 2012
|
|
Net sales
|
|
|
$188,298
|
|
|
$175,416
|
|
|
$531,716
|
|
|
$489,732
|
|
Cost of sales (excluding depreciation and amortization)
|
|
|
75,359
|
|
|
71,302
|
|
|
218,176
|
|
|
202,463
|
|
Gross profit
|
|
|
112,939
|
|
|
104,114
|
|
|
313,540
|
|
|
287,269
|
|
Selling, general, and administrative expenses (excluding
depreciation and amortization)
|
|
|
88,797
|
|
|
81,715
|
|
|
257,870
|
|
|
237,022
|
|
Stock-based compensation
|
|
|
14,641
|
|
|
157
|
|
|
14,854
|
|
|
157
|
|
Pre-opening costs
|
|
|
1,827
|
|
|
2,137
|
|
|
5,761
|
|
|
6,573
|
|
Depreciation and amortization
|
|
|
7,569
|
|
|
7,336
|
|
|
22,620
|
|
|
21,825
|
|
Restructuring charges
|
|
|
111
|
|
|
2,056
|
|
|
472
|
|
|
4,365
|
|
Other expenses
|
|
|
869
|
|
|
335
|
|
|
1,495
|
|
|
817
|
|
(Gain) loss on disposal of assets
|
|
|
(4)
|
|
|
92
|
|
|
70
|
|
|
87
|
|
(Loss) income from operations
|
|
|
(871)
|
|
|
10,286
|
|
|
10,398
|
|
|
16,423
|
|
Interest expense, net
|
|
|
5,782
|
|
|
5,131
|
|
|
16,856
|
|
|
16,021
|
|
Loss on extinguishment of debt
|
|
|
128
|
|
|
4
|
|
|
1,229
|
|
|
7,333
|
|
(Loss) income before taxes
|
|
|
(6,781)
|
|
|
5,151
|
|
|
(7,687)
|
|
|
(6,931)
|
|
Provision (benefit) for income taxes
|
|
|
2,705
|
|
|
(1,711)
|
|
|
2,487
|
|
|
(4,708)
|
|
Net (loss) income
|
|
|
$(9,486)
|
|
|
$6,862
|
|
|
$(10,174)
|
|
|
$(2,223)
|
|
Less: Distributions accumulated to preferred shareholders
|
|
|
(15,597)
|
|
|
(22,456)
|
|
|
(59,747)
|
|
|
(65,410)
|
|
Net loss available to common shareholders
|
|
|
$(25,083)
|
|
|
$(15,594)
|
|
|
$(69,921)
|
|
|
$(67,633)
|
|
Basic and diluted net loss per common share
|
|
|
$(1.39)
|
|
|
$(5.32)
|
|
|
$(8.78)
|
|
|
$(23.08)
|
|
Weighted-average common shares outstanding - basic and diluted
|
|
|
18,036,633
|
|
|
2,928,964
|
|
|
7,965,089
|
|
|
2,929,928
|
|
|
|
|
|
The Container Store Group, Inc.
|
|
|
|
Consolidated statements of cash flows (unaudited)
|
|
|
|
|
|
|
Thirty Nine Weeks Ended
|
|
(In thousands)
|
|
|
November 30, 2013
|
|
|
November 24, 2012
|
|
Operating activities
|
|
|
|
|
|
|
|
Net loss
|
|
|
($10,174)
|
|
|
$(2,223)
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
22,620
|
|
|
21,825
|
|
Stock-based compensation expense
|
|
|
14,854
|
|
|
157
|
|
Loss on disposal of property and equipment
|
|
|
70
|
|
|
87
|
|
Deferred tax expense (benefit)
|
|
|
1,540
|
|
|
(6,891)
|
|
Noncash interest
|
|
|
1,367
|
|
|
1,092
|
|
Noncash refinancing expense
|
|
|
851
|
|
|
4,843
|
|
Other noncash items
|
|
|
86
|
|
|
—
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(2,667)
|
|
|
(3,745)
|
|
Inventory
|
|
|
(22,748)
|
|
|
(24,936)
|
|
Prepaid expenses and other assets
|
|
|
(2,506)
|
|
|
(5,346)
|
|
Accounts payable and accrued liabilities
|
|
|
7,804
|
|
|
20,579
|
|
Income taxes payable
|
|
|
(1,531)
|
|
|
(70)
|
|
Other noncurrent liabilities
|
|
|
634
|
|
|
1,723
|
|
Net cash provided by operating activities
|
|
|
10,200
|
|
|
7,095
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
Additions to property and equipment
|
|
|
(32,117)
|
|
|
(37,078)
|
|
Proceeds from sale of property and equipment
|
|
|
408
|
|
|
297
|
|
Net cash used in investing activities
|
|
|
(31,709)
|
|
|
(36,781)
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
Borrowings on revolving lines of credit
|
|
|
50,098
|
|
|
62,527
|
|
Payments on revolving lines of credit
|
|
|
(46,694)
|
|
|
(56,555)
|
|
Borrowings on long-term debt
|
|
|
120,000
|
|
|
290,000
|
|
Payments on long-term debt
|
|
|
(53,580)
|
|
|
(287,437)
|
|
Payment of debt issuance costs
|
|
|
(3,662)
|
|
|
(9,842)
|
|
Proceeds from issuance of common stock, net
|
|
|
237,021
|
|
|
—
|
|
Payment of distributions to preferred shareholders
|
|
|
(295,826)
|
|
|
—
|
|
Purchase of treasury shares
|
|
|
(53)
|
|
|
(189)
|
|
Net cash provided by (used in) financing activities
|
|
|
7,304
|
|
|
(1,496)
|
|
Effect of exchange rate changes on cash
|
|
|
(324)
|
|
|
(106)
|
|
Net decrease in cash
|
|
|
(14,529)
|
|
|
(31,288)
|
|
Cash at beginning of period
|
|
|
25,351
|
|
|
51,163
|
|
Cash at end of period
|
|
|
$10,822
|
|
|
$19,875
|
|
Supplemental disclosures of non-cash activities:
|
|
|
|
|
|
|
|
Exchange of outstanding preferred shares for common shares
|
|
|
$551,145
|
|
|
$—
|
|
|
|
The Container Store Group, Inc.
|
|
Supplemental Information - Reconciliation of GAAP to Non-GAAP
Financial Measures
|
|
(In thousands, except per share amounts)
|
|
(Unaudited)
|
|
The table below reconciles the non-GAAP financial measures of
adjusted net income and adjusted net income per diluted common
share with the most directly comparable GAAP financial measures of
GAAP net loss available to common shareholders and GAAP net loss
per diluted common share.
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
|
|
Thirty-Nine Weeks Ended
|
|
|
|
|
November 30, 2013
|
|
|
November 24, 2012
|
|
|
November 30, 2013
|
|
|
November 24, 2012
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss available to common shareholders
|
|
|
$(25,083)
|
|
|
$(15,594)
|
|
|
$(69,921)
|
|
|
$(67,633)
|
|
Distributions accumulated to preferred shareholders
|
|
|
15,597
|
|
|
22,456
|
|
|
59,747
|
|
|
65,410
|
|
Stock-based compensation
|
|
|
14,602
|
|
|
—
|
|
|
14,602
|
|
|
—
|
|
IPO costs
|
|
|
764
|
|
|
—
|
|
|
1,170
|
|
|
—
|
|
Restructuring charges
|
|
|
111
|
|
|
2,056
|
|
|
472
|
|
|
4,365
|
|
Goodwill and trade name impairment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Loss on extinguishment of debt
|
|
|
128
|
|
|
4
|
|
|
1,229
|
|
|
7,333
|
|
Taxes
|
|
|
(924)
|
|
|
(3,634)
|
|
|
(1,630)
|
|
|
(5,274)
|
|
Adjusted net income
|
|
|
$5,195
|
|
|
$5,288
|
|
|
$5,669
|
|
|
$4,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding – diluted
|
|
|
18,036,633
|
|
|
2,928,964
|
|
|
7,965,089
|
|
|
2,929,928
|
|
Adjust weighting factor of outstanding shares
|
|
|
30,778,609
|
|
|
44,993,878
|
|
|
40,850,153
|
|
|
44,992,914
|
|
Adjusted weighted average common shares outstanding - diluted
|
|
|
48,815,242
|
|
|
47,922,842
|
|
|
48,815,242
|
|
|
47,922,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per diluted common share
|
|
|
$0.11
|
|
|
$0.11
|
|
|
$0.12
|
|
|
$0.09
|
|
|
|
The table below reconciles the non-GAAP financial measure Adjusted
EBITDA with the most directly comparable GAAP financial measure of
GAAP net (loss) income.
|
|
|
|
|
|
|
Thirteen weeks ended
|
|
|
Thirty-nine weeks ended
|
|
|
|
|
November 30, 2013
|
|
|
November 24, 2012
|
|
|
November 30, 2013
|
|
|
November 24, 2012
|
|
Net (loss) income
|
|
|
$(9,486)
|
|
|
$6,862
|
|
|
$(10,174)
|
|
|
$(2,223)
|
|
Depreciation and amortization
|
|
|
7,569
|
|
|
7,336
|
|
|
22,620
|
|
|
21,825
|
|
Interest expense
|
|
|
5,782
|
|
|
5,131
|
|
|
16,856
|
|
|
16,021
|
|
Income tax expense (benefit)
|
|
|
2,705
|
|
|
(1,711)
|
|
|
2,487
|
|
|
(4,708)
|
|
EBITDA
|
|
|
$6,570
|
|
|
$17,618
|
|
|
$31,789
|
|
|
$30,915
|
|
Management fees
|
|
|
167
|
|
|
250
|
|
|
667
|
|
|
750
|
|
Pre-opening costs
|
|
|
1,827
|
|
|
2,137
|
|
|
5,761
|
|
|
6,573
|
|
IPO costs
|
|
|
764
|
|
|
-
|
|
|
1,170
|
|
|
-
|
|
Non-cash rent
|
|
|
(44)
|
|
|
433
|
|
|
658
|
|
|
1,739
|
|
Restructuring charges
|
|
|
111
|
|
|
2,056
|
|
|
472
|
|
|
4,365
|
|
Stock-based compensation
|
|
|
14,641
|
|
|
157
|
|
|
14,854
|
|
|
157
|
|
Loss on extinguishment of debt
|
|
|
128
|
|
|
4
|
|
|
1,229
|
|
|
7,333
|
|
Foreign exchange (gains) losses
|
|
|
(191)
|
|
|
(563)
|
|
|
(176)
|
|
|
(119)
|
|
Other adjustments
|
|
|
130
|
|
|
364
|
|
|
398
|
|
|
882
|
|
Adjusted EBITDA
|
|
|
$24,103
|
|
|
$22,456
|
|
|
$56,822
|
|
|
$52,595
|
|
|
Note Regarding Non-GAAP Information
This press release includes financial measures that are not calculated
in accordance with GAAP, including adjusted net income, adjusted net
income (loss) per diluted common share, and Adjusted EBITDA. The Company
has reconciled these non-GAAP financial measures with the most directly
comparable GAAP financial measures in a table accompanying this release.
The Company believes that these non-GAAP financial measures not only
provide its management with comparable financial data for internal
financial analysis but also provide meaningful supplemental information
to investors. Specifically, these non-GAAP financial measures allow
investors to better understand the performance of the Company's business
and facilitate a meaningful evaluation of its quarterly and fiscal year
2013 diluted income per common share and actual results on a comparable
basis with its quarterly and fiscal year 2012 results. In evaluating
these non-GAAP financial measures, investors should be aware that in the
future the Company may incur expenses or be involved in transactions
that are the same as or similar to some of the adjustments in this
presentation. The Company's presentation of non-GAAP financial measures
should not be construed to imply that its future results will be
unaffected by any such adjustments. The Company has provided this
information as a means to evaluate the results of its ongoing
operations. Other companies in the Company's industry may calculate
these items differently than it does. Each of these measures is not a
measure of performance under GAAP and should not be considered as a
substitute for the most directly comparable financial measures prepared
in accordance with GAAP. Non-GAAP financial measures have limitations as
analytical tools, and investors should not consider them in isolation or
as a substitute for analysis of the Company's results as reported under
GAAP.
Source: The Container Store Group, Inc.