The Container Store Group, Inc. Completes Amendment of Senior Secured Term Loan
August 21 2017 - 6:55AM
Business Wire
Updates Fiscal 2017 Outlook to Reflect
Amended Terms
The Container Store Group, Inc. (NYSE:TCS) (the “Company”),
today announced it has completed the amendment of its senior
secured term loan credit facility, led by JP Morgan Chase Bank,
N.A. The amended and restated facility extended the maturity date
to August 18, 2021 with an increase in the applicable interest rate
margin for LIBOR loans to 7%, and for base rate loans to 6%, and
reduced the aggregate principal amount of the term loan to $300
million.
“We are pleased to announce the amendment of our senior secured
term loan that extends the maturity date while also including a
soft call provision that provides us enhanced financial
flexibility,” said Jodi Taylor, Chief Financial Officer and Chief
Administrative Officer. “We remain focused on executing our
initiatives to drive sales and profitability and deliver
operational improvement. We are updating our previously provided
fiscal 2017 outlook to reflect the costs and higher interest
expense associated with this amendment.”
As a result of the amendment, for fiscal 2017, the Company
expects to incur approximately $7 million of incremental interest
expense for a total of approximately $25 million, and debt
extinguishment costs of approximately $2 million. The Company
expects fiscal 2017 net income per share to be $0.13 to $0.23 based
on estimated common shares outstanding of 49 million. Adjusted net
income is expected to be $0.27 to $0.40 per share (see
Reconciliation of GAAP to Non-GAAP Financial Measures table). All
other elements of the Company’s previously issued outlook remain
unchanged.
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 about our
expectations regarding our goals, strategies, priorities and
initiatives; and our anticipated interest expense and financial
performance for fiscal 2017.
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: our Optimization Plan may not result in improved sales
and profitability; our inability to open or relocate new stores, or
remodel existing stores, in the timeframe and at the locations we
anticipate; overall decline in the health of the economy, consumer
spending, and the housing market; our operating and financial
performance in a given period may not meet the guidance we provided
to the public; 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; effects of a security breach or cyber-attack of
our website or information technology systems; 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, and the
transition in our executive leadership; 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 Annual Report on Form 10-K filed with
the Securities and Exchange Commission, or SEC, on June 1, 2017,
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 (NYSE:TCS) is the nation’s leading retailer
of storage and organization products — a concept they originated in
1978. Today, with locations nationwide, the retailer offers more
than 11,000 products designed to save space and time, a suite of
custom closet systems and an array of digital shopping services.
Visit www.containerstore.com for more information about store
locations, the product collection and services offered. Visit
www.containerstore.com/blog for real solutions from the really
organized and www.whatwestandfor.com to learn more about the
company’s unique culture.
The Container Store Group, Inc. Supplemental Information
- Reconciliation of GAAP to Non-GAAP Financial Measures(In
thousands, except share and per share
amounts)(unaudited)
The table below reconciles the non-GAAP financial measures of
adjusted net income and adjusted net income per diluted share with
the most directly comparable GAAP financial measures of GAAP net
income and GAAP net income per diluted share.
Fiscal Year 2017 Outlook Low High
Numerator: Net income $6,200 $11,100 Optimization Plan
implementation charges (a) 9,000 11,000 Loss on extinguishment of
debt (b) 2,400 2,400 Taxes(c) (4,200) (4,900) Adjusted net income
$13,400 $19,600 Denominator: Weighted average common shares
outstanding – diluted 49,000,000 49,000,000 Net income per
diluted share $0.13 $0.23 Adjusted net income per diluted share
$0.27 $0.40
(a) Charges incurred as part of the implementation of our
Optimization Plan, which we do not consider in our evaluation of
ongoing performance.
(b) Loss recorded as a result of the amendment made to the
Senior Secured Term Loan Facility in August 2017, which we do not
consider in our evaluation of our ongoing operations.
(c) Tax impact of adjustments to net income, which we do not
consider in our evaluation of ongoing performance.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170821005239/en/
The Container Store Group, Inc.Investors:ICR, Inc.,
203.682.8200Farah Soi / Shannon DevineFarah.Soi@icrinc.com /
Shannon.Devine@icrinc.comorMedia:The Container Store Group,
Inc.Melanie Graham, 972-538-6864pr@containerstore.com
Container Store (NYSE:TCS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Container Store (NYSE:TCS)
Historical Stock Chart
From Apr 2023 to Apr 2024