Savers Value Village, Inc. Reports Third Quarter Financial Results
Net sales increased 0.5%, or 1.2% in constant currency1
Opened nine new stores and remain on track for 29 new stores in 2024
Narrows full year 2024 outlook
Highlights for the Third Quarter; Comparisons are to the Thirteen Weeks Ended
-
Net sales increased0.5% to
$394.8 million , withthe United States (“U.S.”) up 6.2% andCanada down 7.1%. Constant currency net sales1 increased 1.2% to$397.3 million . -
Comparable store sales decreased 2.4%, with the
U.S. increasing 1.6% andCanada decreasing 7.5%. A timing shift in theCanada Day holiday negatively impacted Canadian comparable store sales by approximately 100 basis points in the third quarter. - The Company opened nine new stores, ending the third quarter with 344 stores.
-
Net income and Adjusted net income1 were
$21.7 million and$25.1 million , respectively. Net income per diluted share and Adjusted net income per diluted share1 were$0.13 and$0.15 , respectively. Net income margin was 5.5%. -
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”)1 was
$82.0 million and Adjusted EBITDA margin1 was 20.8%. Changes in foreign currency rates negatively impacted Adjusted EBITDA1 by$0.8 million during the third quarter. -
Total active members enrolled in our
U.S. and Canadian loyalty programs increased 11.5% to 5.8 million.
Also, during the third quarter, the Company repurchased approximately 1.8 million shares of its common stock at a weighted average price of
1 Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin, as well as amounts presented on a constant currency basis, are not measures recognized under |
Fiscal 2024 Outlook
The Company’s updated outlook for the fifty-two weeks ending
- Total of 29 new stores, consisting of 22 organic new store openings (unchanged) and 7 stores from our 2 Peaches acquisition (unchanged);
-
Total net sales of approximately
$1.53 billion to$1.54 billion (from$1.53 billion to$1.56 billion previously); - Comparable store sales of approximately -1% to 0% (from -1% to 1% previously);
-
Net income of approximately
$44 million to$49 million (from$42 million to$56 million previously); -
Adjusted net income1 of approximately
$81 million to$86 million (from$82 million to$96 million previously); -
Adjusted EBITDA2 of approximately
$290 million to$300 million (from$290 million to$310 million previously); -
Capital expenditures of approximately
$105 million to$115 million (unchanged); and - Diluted weighted average common shares outstanding of approximately 167 million (from 168 million previously).
1 Adjusted net income is not a measure recognized under GAAP. For additional information on our use of non-GAAP financial measures, see “Non-GAAP Financial Measures” and the accompanying financial tables which reconcile GAAP financial measures to non-GAAP measures. |
2 Adjusted EBITDA is not a measure recognized under GAAP. We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we cannot determine the probable significance of the various reconciling items, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly period to period. Accordingly, reconciliations to the corresponding GAAP financial measure are not available without unreasonable effort. |
Conference Call Information
A conference call to discuss the third quarter financial results is scheduled for today,
Investors and analysts who wish to participate in the call are invited to dial +1 800 549 8228 (international callers, please dial +1 289 819 1520) approximately 10 minutes prior to the start of the call. Please reference Conference ID 92214 when prompted. A live webcast of the conference call will be available over the Internet, which you may access by logging on to the Investor Relations section on the Company’s website at https://ir.savers.com/events-and-presentations/default.aspx.
A recorded replay of the call will be available shortly after the conclusion of the call and remain available until
About the Savers ® Value Village ® family of thrift stores
As the largest for-profit thrift operator in the
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the
Non-GAAP Financial Measures
The Company reports its financial results in accordance with GAAP. Non-GAAP financial measures used by the Company include Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin. The Company has included these non-GAAP financial measures in this press release as they are key measures used by its management and its board of directors to evaluate its operating performance and the effectiveness of its business strategies, make budgeting decisions, and evaluate compensation decisions. Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools and you should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. There are limitations to using non-GAAP financial measures, including those amounts presented in accordance with the Company’s definitions of Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin, as they may not be comparable to similar measures disclosed by its competitors, because not all companies and analysts calculate Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin in the same manner. Because of these limitations, you should consider Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin alongside other financial performance measures, including, as applicable, net income (loss) and the Company’s other GAAP results. The Company presents Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin because we consider these meaningful measures to share with investors because they best allow comparison of the performance of one period with that of another period. In addition, by presenting Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin, we provide investors with management’s perspective of the Company’s operating performance.
Adjusted net income is defined as net income (loss) excluding the impact of loss on extinguishment of debt, IPO-related stock-based compensation expense, transaction costs, dividend-related bonus, (gain) loss on foreign currency, net, executive transition costs, certain other adjustments, the tax effect on the above adjustments, and the excess tax shortfall (benefit) from stock-based compensation. The Company defines Adjusted net income per diluted share as Adjusted net income divided by diluted weighted average common shares outstanding.
The Company defines Adjusted EBITDA as net income (loss) excluding the impact of interest expense, net, income tax expense, depreciation and amortization, loss on extinguishment of debt, stock-based compensation expense, non-cash occupancy-related costs, lease intangible asset expense, pre-opening expenses, store closing expenses, executive transition costs, transaction costs, dividend-related bonus, (gain) loss on foreign currency, net and certain other adjustments. The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by net sales, expressed as a percentage.
Constant Currency
The Company reports certain operating results on a constant-currency basis in order to facilitate period-to-period comparisons of its results without regard to the impact of fluctuating foreign currency exchange rates. The term foreign currency exchange rates refers to the exchange rates used to translate the Company's operating results for all countries where the functional currency is not the
The Company believes disclosure of constant-currency net sales is helpful to investors because it facilitates period-to-period comparisons of its results by increasing the transparency of its underlying performance by excluding the impact of fluctuating foreign currency exchange rates. However, constant-currency results are non-GAAP financial measures and are not meant to be considered as an alternative or substitute for comparable measures prepared in accordance with GAAP. Constant-currency results have no standardized meaning prescribed by GAAP, are not prepared under any comprehensive set of accounting rules or principles and should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. Constant-currency results have limitations in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.
Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. During the thirteen weeks ended
Condensed Consolidated Statements of Net Income (Loss) (All amounts in thousands, except per share amounts, unaudited) |
|||||||||||||||||||||||||||
|
Thirteen Weeks Ended |
|
Thirty-Nine Weeks Ended |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Amount |
|
% of Sales |
|
Amount |
|
% of Sales |
|
Amount |
|
% of Sales |
|
Amount |
|
% of Sales |
||||||||||||
Net sales |
$ |
394,797 |
|
|
100.0 |
% |
|
$ |
392,698 |
|
|
100.0 |
% |
|
$ |
1,135,632 |
|
|
100.0 |
% |
|
$ |
1,117,484 |
|
|
100.0 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of merchandise sold, exclusive of depreciation and amortization |
|
170,776 |
|
|
43.3 |
|
|
|
158,252 |
|
|
40.3 |
|
|
|
491,566 |
|
|
43.3 |
|
|
|
458,950 |
|
|
41.1 |
|
Salaries, wages and benefits |
|
74,189 |
|
|
18.8 |
|
|
|
116,114 |
|
|
29.6 |
|
|
|
248,841 |
|
|
21.9 |
|
|
|
276,088 |
|
|
24.7 |
|
Selling, general and administrative |
|
83,897 |
|
|
21.3 |
|
|
|
82,076 |
|
|
20.8 |
|
|
|
245,126 |
|
|
21.6 |
|
|
|
232,380 |
|
|
20.8 |
|
Depreciation and amortization |
|
17,297 |
|
|
4.3 |
|
|
|
15,911 |
|
|
4.1 |
|
|
|
52,978 |
|
|
4.6 |
|
|
|
45,088 |
|
|
4.0 |
|
Total operating expenses |
|
346,159 |
|
|
87.7 |
|
|
|
372,353 |
|
|
94.8 |
|
|
|
1,038,511 |
|
|
91.4 |
|
|
|
1,012,506 |
|
|
90.6 |
|
Operating income |
|
48,638 |
|
|
12.3 |
|
|
|
20,345 |
|
|
5.2 |
|
|
|
97,121 |
|
|
8.6 |
|
|
|
104,978 |
|
|
9.4 |
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense, net |
|
(15,466 |
) |
|
(3.9 |
) |
|
|
(18,708 |
) |
|
(4.8 |
) |
|
|
(47,309 |
) |
|
(4.2 |
) |
|
|
(70,912 |
) |
|
(6.3 |
) |
Gain (loss) on foreign currency, net |
|
2,443 |
|
|
0.6 |
|
|
|
(195 |
) |
|
— |
|
|
|
547 |
|
|
— |
|
|
|
5,587 |
|
|
0.5 |
|
Other (expense) income, net |
|
(168 |
) |
|
— |
|
|
|
(45 |
) |
|
— |
|
|
|
222 |
|
|
— |
|
|
|
173 |
|
|
— |
|
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
|
(10,615 |
) |
|
(2.7 |
) |
|
|
(4,088 |
) |
|
(0.3 |
) |
|
|
(16,626 |
) |
|
(1.5 |
) |
Other expense, net |
|
(13,191 |
) |
|
(3.3 |
) |
|
|
(29,563 |
) |
|
(7.5 |
) |
|
|
(50,628 |
) |
|
(4.5 |
) |
|
|
(81,778 |
) |
|
(7.3 |
) |
Income (loss) before income taxes |
|
35,447 |
|
|
9.0 |
|
|
|
(9,218 |
) |
|
(2.3 |
) |
|
|
46,493 |
|
|
4.1 |
|
|
|
23,200 |
|
|
2.1 |
|
Income tax expense |
|
13,766 |
|
|
3.5 |
|
|
|
6,394 |
|
|
1.7 |
|
|
|
15,567 |
|
|
1.4 |
|
|
|
13,957 |
|
|
1.3 |
|
Net income (loss) |
$ |
21,681 |
|
|
5.5 |
% |
|
$ |
(15,612 |
) |
|
(4.0 |
)% |
|
$ |
30,926 |
|
|
2.7 |
% |
|
$ |
9,243 |
|
|
0.8 |
% |
Net income (loss) per share, basic |
$ |
0.13 |
|
|
|
|
$ |
(0.10 |
) |
|
|
|
$ |
0.19 |
|
|
|
|
$ |
0.06 |
|
|
|
||||
Net income (loss) per share, diluted |
$ |
0.13 |
|
|
|
|
$ |
(0.10 |
) |
|
|
|
$ |
0.18 |
|
|
|
|
$ |
0.06 |
|
|
|
||||
Basic weighted average shares outstanding |
|
160,856 |
|
|
|
|
|
160,247 |
|
|
|
|
|
161,301 |
|
|
|
|
|
147,885 |
|
|
|
||||
Diluted weighted average shares outstanding |
|
165,671 |
|
|
|
|
|
160,247 |
|
|
|
|
|
167,241 |
|
|
|
|
|
153,134 |
|
|
|
Condensed Consolidated Balance Sheets (All amounts in thousands, unaudited) |
|||||||
|
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
137,719 |
|
|
$ |
179,955 |
|
Trade receivables, net |
|
15,688 |
|
|
|
11,767 |
|
Inventories |
|
39,644 |
|
|
|
32,820 |
|
Prepaid expenses and other current assets |
|
32,756 |
|
|
|
25,691 |
|
Derivative assets – current |
|
— |
|
|
|
7,691 |
|
Total current assets |
|
225,807 |
|
|
|
257,924 |
|
Property and equipment, net |
|
264,778 |
|
|
|
229,405 |
|
Right-of-use lease assets |
|
549,756 |
|
|
|
499,375 |
|
|
|
682,072 |
|
|
|
687,368 |
|
Intangible assets, net |
|
163,439 |
|
|
|
166,681 |
|
Other assets |
|
3,819 |
|
|
|
3,133 |
|
Derivative assets – non-current |
|
— |
|
|
|
23,519 |
|
Total assets |
$ |
1,889,671 |
|
|
$ |
1,867,405 |
|
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
80,790 |
|
|
$ |
92,550 |
|
Accrued payroll and related taxes |
|
45,860 |
|
|
|
65,096 |
|
Lease liabilities – current |
|
83,554 |
|
|
|
79,306 |
|
Current portion of long-term debt |
|
6,000 |
|
|
|
4,500 |
|
Total current liabilities |
|
216,204 |
|
|
|
241,452 |
|
Long-term debt, net |
|
735,349 |
|
|
|
784,593 |
|
Lease liabilities – non-current |
|
469,545 |
|
|
|
419,407 |
|
Deferred tax liabilities, net |
|
13,299 |
|
|
|
27,909 |
|
Other liabilities |
|
22,391 |
|
|
|
17,989 |
|
Total liabilities |
|
1,456,788 |
|
|
|
1,491,350 |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
647,106 |
|
|
|
593,109 |
|
Accumulated deficit |
|
(237,549 |
) |
|
|
(247,541 |
) |
Accumulated other comprehensive income |
|
23,326 |
|
|
|
30,487 |
|
Total stockholders’ equity |
|
432,883 |
|
|
|
376,055 |
|
Total liabilities and stockholders’ equity |
$ |
1,889,671 |
|
|
$ |
1,867,405 |
|
Condensed Consolidated Statements of Cash Flows (All amounts in thousands, unaudited) |
|||||||
|
Thirty-Nine Weeks Ended |
||||||
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
30,926 |
|
|
$ |
9,243 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Stock-based compensation expense |
|
51,107 |
|
|
|
50,970 |
|
Amortization of debt issuance costs and debt discount |
|
4,169 |
|
|
|
4,631 |
|
Depreciation and amortization |
|
52,978 |
|
|
|
45,088 |
|
Operating lease expense |
|
97,209 |
|
|
|
89,204 |
|
Deferred income taxes, net |
|
(14,511 |
) |
|
|
(3,725 |
) |
Loss on extinguishment of debt |
|
4,088 |
|
|
|
16,626 |
|
Other items |
|
(10,243 |
) |
|
|
(12,714 |
) |
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
||||
Trade receivables |
|
(4,029 |
) |
|
|
341 |
|
Inventories |
|
(6,224 |
) |
|
|
(14,227 |
) |
Prepaid expenses and other current assets |
|
(6,831 |
) |
|
|
3,675 |
|
Accounts payable and accrued liabilities |
|
(12,951 |
) |
|
|
2,456 |
|
Accrued payroll and related taxes |
|
(18,797 |
) |
|
|
(5,519 |
) |
Operating lease liabilities |
|
(91,318 |
) |
|
|
(84,081 |
) |
Other liabilities |
|
2,870 |
|
|
|
2,434 |
|
Net cash provided by operating activities |
|
78,443 |
|
|
|
104,402 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(80,146 |
) |
|
|
(74,579 |
) |
Purchase of trade name |
|
— |
|
|
|
(650 |
) |
Business acquisition, net of cash acquired |
|
(3,189 |
) |
|
|
— |
|
Settlement of derivative instruments, net |
|
28,194 |
|
|
|
(199 |
) |
Net cash used in investing activities |
|
(55,141 |
) |
|
|
(75,428 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from issuance of long-term debt, net |
|
— |
|
|
|
529,247 |
|
Principal payments on long-term debt |
|
(54,000 |
) |
|
|
(546,431 |
) |
Payment of debt issuance costs |
|
(1,004 |
) |
|
|
(4,359 |
) |
Prepayment premium on extinguishment of debt |
|
(1,485 |
) |
|
|
(1,650 |
) |
Advances on revolving line of credit |
|
— |
|
|
|
42,000 |
|
Repayments of revolving line of credit |
|
— |
|
|
|
(84,000 |
) |
Proceeds from stock option exercises |
|
3,443 |
|
|
|
— |
|
Dividends paid |
|
— |
|
|
|
(262,235 |
) |
Proceeds from initial public offering, net |
|
— |
|
|
|
314,719 |
|
Payment of offering costs |
|
— |
|
|
|
(8,766 |
) |
Repurchase of common stock under share repurchase program |
|
(20,934 |
) |
|
|
— |
|
Repurchase of shares and shares withheld for taxes |
|
(553 |
) |
|
|
(849 |
) |
Settlement of derivative instrument, net |
|
11,925 |
|
|
|
6,213 |
|
Principal payments on finance lease liabilities |
|
(1,099 |
) |
|
|
— |
|
Other |
|
(438 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(64,145 |
) |
|
|
(16,111 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(1,393 |
) |
|
|
312 |
|
Net change in cash and cash equivalents |
|
(42,236 |
) |
|
|
13,175 |
|
Cash and cash equivalents at beginning of period |
|
179,955 |
|
|
|
112,132 |
|
Cash and cash equivalents at end of period |
$ |
137,719 |
|
|
$ |
125,307 |
|
Supplemental Detail on Net Income (Loss) Per Share Calculation
(Unaudited)
The following unaudited table sets forth the computation of net income (loss) per basic and diluted share as shown on the face of the accompanying condensed consolidated statements of net income (loss):
|
Thirteen Weeks Ended |
|
Thirty-Nine Weeks Ended |
|||||||||
(in thousands, except per share data) |
|
|
|
|
|
|
|
|||||
Numerator |
|
|
|
|
|
|
|
|||||
Net income (loss) |
$ |
21,681 |
|
$ |
(15,612 |
) |
|
$ |
30,926 |
|
$ |
9,243 |
Denominator |
|
|
|
|
|
|
|
|||||
Basic weighted average common shares outstanding |
|
160,856 |
|
|
160,247 |
|
|
|
161,301 |
|
|
147,885 |
Dilutive effect of employee stock options and awards |
|
4,815 |
|
|
— |
|
|
|
5,940 |
|
|
5,249 |
Diluted weighted average common shares outstanding |
|
165,671 |
|
|
160,247 |
|
|
|
167,241 |
|
|
153,134 |
Net income (loss) per share (1) |
|
|
|
|
|
|
|
|||||
Basic |
$ |
0.13 |
|
$ |
(0.10 |
) |
|
$ |
0.19 |
|
$ |
0.06 |
Diluted |
$ |
0.13 |
|
$ |
(0.10 |
) |
|
$ |
0.18 |
|
$ |
0.06 |
(1) |
Due to the differences between quarterly and year-to-date weighted average share counts and the effect of quarterly rounding to the nearest cent per share, the year-to-date calculation of net income (loss) per share may not equal the sum of the quarters. |
Supplemental Detail on Segment Results
(Unaudited)
The following unaudited tables present net sales and profit by segment for the periods presented:
|
Thirteen Weeks Ended |
|
|
|
|
|||||||
(in thousands) |
|
|
|
|
$ Change |
|
% Change |
|||||
Net sales: |
|
|
|
|
|
|
|
|||||
|
$ |
212,470 |
|
$ |
200,127 |
|
$ |
12,343 |
|
|
6.2 |
% |
Canada Retail |
|
151,886 |
|
|
163,518 |
|
|
(11,632 |
) |
|
(7.1 |
)% |
Other |
|
30,441 |
|
|
29,053 |
|
|
1,388 |
|
|
4.8 |
% |
Total net sales |
$ |
394,797 |
|
$ |
392,698 |
|
$ |
2,099 |
|
|
0.5 |
% |
Segment profit: |
|
|
|
|
|
|
|
|||||
|
$ |
43,754 |
|
$ |
52,262 |
|
$ |
(8,508 |
) |
|
(16.3 |
)% |
Canada Retail |
$ |
45,354 |
|
$ |
56,404 |
|
$ |
(11,050 |
) |
|
(19.6 |
)% |
Other |
$ |
11,895 |
|
$ |
10,061 |
|
$ |
1,834 |
|
|
18.2 |
% |
|
Thirty-Nine Weeks Ended |
|
|
|
|
|||||||
(in thousands) |
|
|
|
|
$ Change |
|
% Change |
|||||
Net sales: |
|
|
|
|
|
|
|
|||||
|
$ |
612,118 |
|
$ |
580,648 |
|
$ |
31,470 |
|
|
5.4 |
% |
Canada Retail |
|
435,841 |
|
|
450,280 |
|
|
(14,439 |
) |
|
(3.2 |
)% |
Other |
|
87,673 |
|
|
86,556 |
|
|
1,117 |
|
|
1.3 |
% |
Total net sales |
$ |
1,135,632 |
|
$ |
1,117,484 |
|
$ |
18,148 |
|
|
1.6 |
% |
Segment profit: |
|
|
|
|
|
|
|
|||||
|
$ |
137,400 |
|
$ |
147,062 |
|
$ |
(9,662 |
) |
|
(6.6 |
)% |
Canada Retail |
$ |
124,852 |
|
$ |
140,888 |
|
$ |
(16,036 |
) |
|
(11.4 |
)% |
Other |
$ |
27,234 |
|
$ |
29,913 |
|
$ |
(2,679 |
) |
|
(9.0 |
)% |
Supplemental Information
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
The following information relates to non-GAAP financial measures and should be read in conjunction with the investor call held on
The following unaudited table presents a reconciliation of net income (loss) and net income (loss) per diluted share on a GAAP basis to Adjusted net income and Adjusted net income per diluted share for the periods presented:
|
Thirteen Weeks Ended |
|
Thirty-Nine Weeks Ended |
||||||||||||
(in thousands, except per share data) |
|
|
|
|
|
|
|
||||||||
Net income (loss): |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
21,681 |
|
|
$ |
(15,612 |
) |
|
$ |
30,926 |
|
|
$ |
9,243 |
|
Loss on extinguishment of debt(1)(2) |
|
— |
|
|
|
10,615 |
|
|
|
4,088 |
|
|
|
16,626 |
|
IPO-related stock-based compensation expense(1)(3) |
|
8,506 |
|
|
|
48,298 |
|
|
|
46,231 |
|
|
|
48,324 |
|
Transaction costs(1)(4) |
|
14 |
|
|
|
613 |
|
|
|
2,621 |
|
|
|
2,333 |
|
Dividend-related bonus(1)(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24,097 |
|
(Gain) loss on foreign currency, net(1) |
|
(2,443 |
) |
|
|
195 |
|
|
|
(547 |
) |
|
|
(5,587 |
) |
Executive transition costs(1)(6) |
|
79 |
|
|
|
— |
|
|
|
689 |
|
|
|
— |
|
Other adjustments(1)(7) |
|
(1,506 |
) |
|
|
(381 |
) |
|
|
(2,217 |
) |
|
|
(845 |
) |
Tax effect on adjustments(8) |
|
(1,594 |
) |
|
|
(17,209 |
) |
|
|
(17,442 |
) |
|
|
(24,635 |
) |
Excess tax shortfall (benefit) from stock-based compensation |
|
351 |
|
|
|
— |
|
|
|
(2,415 |
) |
|
|
— |
|
Adjusted net income |
$ |
25,088 |
|
|
$ |
26,519 |
|
|
$ |
61,934 |
|
|
$ |
69,556 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - diluted (9): |
|
|
|
|
|
|
|
||||||||
Net income (loss) per diluted share |
$ |
0.13 |
|
|
$ |
(0.10 |
) |
|
$ |
0.18 |
|
|
$ |
0.06 |
|
Loss on extinguishment of debt(1)(2) |
|
— |
|
|
|
0.06 |
|
|
|
0.02 |
|
|
|
0.11 |
|
IPO-related stock-based compensation expense(1)(3) |
|
0.05 |
|
|
|
0.29 |
|
|
|
0.28 |
|
|
|
0.32 |
|
Transaction costs(1)(4) |
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.02 |
|
Dividend-related bonus(1)(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.16 |
|
(Gain) loss on foreign currency, net(1) |
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.04 |
) |
Executive transition costs(1)(6) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other adjustments(1)(7) |
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
Tax effect on adjustments(8) |
|
(0.01 |
) |
|
|
(0.10 |
) |
|
|
(0.10 |
) |
|
|
(0.16 |
) |
Excess tax shortfall (benefit) from stock-based compensation |
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
Adjusted net income per diluted share* |
$ |
0.15 |
|
|
$ |
0.16 |
|
|
$ |
0.37 |
|
|
$ |
0.45 |
|
*May not foot due to rounding
(1) |
Presented pre-tax. |
|
(2) |
Removes the effects of the loss on extinguishment of debt in relation to the repricing of outstanding borrowings under the Term Loan Facility on |
|
(3) |
Reflects stock-based compensation expense for performance-based options triggered by the completion of our IPO and expense related to restricted stock units issued in connection with the Company’s IPO. |
|
(4) |
Transaction costs are comprised of non-capitalizable expenses related to offering costs, debt transactions and acquisitions. |
|
(5) |
Represents dividend-related bonus and related payroll taxes paid in conjunction with our |
|
(6) |
Represents severance costs associated with executive leadership changes and retention costs associated with the 2 Peaches acquisition. |
|
(7) |
The thirteen and thirty-nine weeks ended |
|
(8) |
Tax effect on adjustments is calculated based on the forecasted effective tax rate for the fiscal year. |
|
(9) |
For the thirteen weeks ended |
A reconciliation of the Company’s fiscal 2024 outlook for net income on a GAAP basis to Adjusted net income is presented in the table below:
|
Fifty-Two Weeks Ended |
||||||
(in millions) |
|
||||||
|
Low End |
|
High End |
||||
Net income: |
|
|
|
||||
Net income |
$ |
44 |
|
|
$ |
49 |
|
Loss on extinguishment of debt(1)(2) |
|
4 |
|
|
|
4 |
|
IPO-related stock-based compensation expense(1)(3) |
|
55 |
|
|
|
55 |
|
Transaction costs(1)(4) |
|
3 |
|
|
|
3 |
|
Gain on foreign currency, net(1) |
|
(1 |
) |
|
|
(1 |
) |
Executive transition costs(1)(5) |
|
1 |
|
|
|
1 |
|
Other adjustments(1)(6) |
|
(2 |
) |
|
|
(2 |
) |
Tax effect on adjustments |
|
(21 |
) |
|
|
(21 |
) |
Excess tax benefit from stock-based compensation |
|
(2 |
) |
|
|
(2 |
) |
Adjusted net income |
$ |
81 |
|
|
$ |
86 |
|
(1) |
Presented pre-tax. |
|
(2) |
Removes the effects of the loss on extinguishment of debt in relation to the repricing of outstanding borrowings under the Term Loan Facility on |
|
(3) |
Reflects stock-based compensation expense for performance-based options triggered by the completion of our IPO and expense related to restricted stock units issued in connection with the Company’s IPO. |
|
(4) |
Transaction costs are comprised of non-capitalizable expenses related to offering costs, debt transactions and acquisitions. |
|
(5) |
Represents severance costs associated with executive leadership changes and retention costs associated with the 2 Peaches acquisition. |
|
(6) |
Includes a change in the fair value of acquisition-related contingent consideration and insurance proceeds. |
The following unaudited table presents a reconciliation of GAAP net income (loss) to Adjusted EBITDA for the periods presented:
|
Thirteen Weeks Ended |
|
Thirty-Nine Weeks Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
21,681 |
|
|
$ |
(15,612 |
) |
|
$ |
30,926 |
|
|
$ |
9,243 |
|
Interest expense, net |
|
15,466 |
|
|
|
18,708 |
|
|
|
47,309 |
|
|
|
70,912 |
|
Income tax expense |
|
13,766 |
|
|
|
6,394 |
|
|
|
15,567 |
|
|
|
13,957 |
|
Depreciation and amortization |
|
17,297 |
|
|
|
15,911 |
|
|
|
52,978 |
|
|
|
45,088 |
|
Loss on extinguishment of debt(1) |
|
— |
|
|
|
10,615 |
|
|
|
4,088 |
|
|
|
16,626 |
|
Stock-based compensation expense(2) |
|
10,328 |
|
|
|
49,113 |
|
|
|
51,107 |
|
|
|
50,970 |
|
Non-cash occupancy-related costs(3) |
|
1,929 |
|
|
|
1,654 |
|
|
|
5,663 |
|
|
|
3,065 |
|
Lease intangible asset expense(4) |
|
882 |
|
|
|
1,001 |
|
|
|
2,663 |
|
|
|
3,154 |
|
Pre-opening expenses(5) |
|
4,149 |
|
|
|
2,635 |
|
|
|
10,906 |
|
|
|
5,227 |
|
Store closing expenses(6) |
|
356 |
|
|
|
164 |
|
|
|
563 |
|
|
|
1,031 |
|
Executive transition costs(7) |
|
79 |
|
|
|
— |
|
|
|
689 |
|
|
|
— |
|
Transaction costs(8) |
|
14 |
|
|
|
613 |
|
|
|
2,621 |
|
|
|
2,333 |
|
Dividend-related bonus(9) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24,097 |
|
(Gain) loss on foreign currency, net |
|
(2,443 |
) |
|
|
195 |
|
|
|
(547 |
) |
|
|
(5,587 |
) |
Other adjustments(10) |
|
(1,506 |
) |
|
|
(381 |
) |
|
|
(2,217 |
) |
|
|
(845 |
) |
Adjusted EBITDA |
$ |
81,998 |
|
|
$ |
91,010 |
|
|
$ |
222,316 |
|
|
$ |
239,271 |
|
Net income (loss) margin |
|
5.5 |
% |
|
|
(4.0 |
)% |
|
|
2.7 |
% |
|
|
0.8 |
% |
Adjusted EBITDA margin |
|
20.8 |
% |
|
|
23.2 |
% |
|
|
19.6 |
% |
|
|
21.4 |
% |
(1) |
Removes the effects of the loss on extinguishment of debt in relation to the repricing of outstanding borrowings under the Term Loan Facility on |
|
(2) |
Represents non-cash stock-based compensation expense related to stock options and restricted stock units granted to certain of our employees and directors. |
|
(3) |
Represents the difference between cash and straight-line lease expense. |
|
(4) |
Represents lease expense associated with acquired lease intangibles. Prior to the adoption of Topic 842, this expense was included within depreciation and amortization. |
|
(5) |
Pre-opening expenses include expenses incurred in the preparation and opening of new stores and processing locations, such as payroll, training, travel, occupancy and supplies. |
|
(6) |
Costs associated with the closing of certain retail locations, including lease termination costs, amounts paid to third parties for rent reduction negotiations, and fees paid to landlords for store closings. |
|
(7) |
Represents severance costs associated with executive leadership changes and retention costs associated with the 2 Peaches acquisition. |
|
(8) |
Transaction costs are comprised of non-capitalizable expenses related to offering costs, debt transactions and acquisitions. |
|
(9) |
Represents dividend-related bonus and related taxes paid in conjunction with our |
|
(10) |
The thirteen and thirty-nine weeks ended |
Constant-currency
The Company calculates constant-currency net sales by translating current-period net sales using the average exchange rates from the comparative prior period rather than the actual average exchange rates in effect. The Company’s constant-currency net sales is not a financial measure prepared in accordance with GAAP.
The following unaudited table presents a reconciliation of GAAP net sales to constant-currency net sales for the periods presented:
|
Thirteen Weeks Ended |
|
|
|
|
|||||
(dollars in thousands) |
|
|
|
|
$ Change |
|
% Change |
|||
Net sales |
$ |
394,797 |
|
$ |
392,698 |
|
$ |
2,099 |
|
0.5% |
Impact of foreign currency |
|
2,518 |
|
|
n/a |
|
|
2,518 |
|
n/m |
Constant-currency net sales |
$ |
397,315 |
|
$ |
392,698 |
|
$ |
4,617 |
|
1.2% |
|
Thirty-Nine Weeks Ended |
|
|
|
|
|||||
(dollars in thousands) |
|
|
|
|
$ Change |
|
% Change |
|||
Net sales |
$ |
1,135,632 |
|
$ |
1,117,484 |
|
$ |
18,148 |
|
1.6% |
Impact of foreign currency |
|
5,445 |
|
|
n/a |
|
|
5,445 |
|
n/m |
Constant-currency net sales |
$ |
1,141,077 |
|
$ |
1,117,484 |
|
$ |
23,593 |
|
2.1% |
n/a - not applicable n/m - not meaningful |
Supplemental Metrics
We use the supplemental metrics below to evaluate the performance of our business, identify trends, formulate financial projections and make strategic decisions. The Company believes that these metrics provide useful information to investors and others in understanding and evaluating its results of operations in the same manner as its management team.
The following unaudited table summarizes certain supplemental metrics for the periods presented:
|
Thirteen Weeks Ended |
|
Thirty-Nine Weeks Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Comparable Store Sales(1) |
|
|
|
|
|
|
|
||||||||
|
|
1.6 |
% |
|
|
3.3 |
% |
|
|
2.0 |
% |
|
|
4.8 |
% |
|
|
(7.5 |
)% |
|
|
4.3 |
% |
|
|
(4.5 |
)% |
|
|
6.1 |
% |
Total(2) |
|
(2.4 |
)% |
|
|
3.7 |
% |
|
|
(0.7 |
)% |
|
|
5.4 |
% |
Number of Stores |
|
|
|
|
|
|
|
||||||||
|
|
167 |
|
|
|
152 |
|
|
|
167 |
|
|
|
152 |
|
|
|
164 |
|
|
|
157 |
|
|
|
164 |
|
|
|
157 |
|
Total(2) |
|
344 |
|
|
|
321 |
|
|
|
344 |
|
|
|
321 |
|
Pounds Processed (lbs mm) |
|
261 |
|
|
|
249 |
|
|
|
753 |
|
|
|
734 |
|
Sales Yield (3) |
$ |
1.45 |
|
|
$ |
1.50 |
|
|
$ |
1.44 |
|
|
$ |
1.46 |
|
(1) |
Comparable store sales is the percentage change in comparable store sales over the comparable period in the prior fiscal year. We define comparable store sales to be sales by stores that have been in operation for all or a portion of two consecutive fiscal years, or, in other words, stores that are starting their third fiscal year of operation. In fiscal year 2024, comparable store sales excludes stores acquired in the 2 Peaches acquisition. In fiscal year 2023, comparable store sales excludes stores acquired in the |
|
(2) |
Total comparable store sales and total number of stores include our |
|
(3) |
We define sales yield as retail sales generated per pound processed on a currency neutral and comparable store basis. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107398600/en/
Investor Contact:
eyruma@savers.com
Media Contact:
Savers | 206.228.2261 | sgaugl@savers.com
Source: