Third quarter sales growth of 32.5% to C$36.3
million; comparable sales increase of 6.3%
Third quarter adjusted EBITDA growth of 50% to
C$1.5 million
Third quarter adjusted net loss of C$(0.8)
million or C$(0.03) per fully diluted share
Raises FY15 outlook to reflect Q3 outperformance;
expects FY15 adjusted fully diluted EPS of C$0.37-C$0.39
DAVIDsTEA Inc. (Nasdaq:DTEA) today announced financial results for
the three and nine months ended October 31, 2015.
For the three months ended October 31,
2015:
- Sales increased by 32.5% to C$36.3 million from C$27.4 million
in the third quarter of fiscal 2014. Comparable sales increased by
6.3%.
- Gross profit increased by 25.0% to C$18.0 million while gross
profit as a percent of sales decreased to 49.6% from 52.4% in the
third quarter of fiscal 2014. The decrease in gross profit as a
percent of sales was driven primarily by the adverse impact from
the stronger U.S. dollar on U.S. dollar denominated purchases. On a
constant currency basis, gross profit as a percent of sales was
flat at 52.4%.
- Selling, general and administration expenses ("SG&A")
increased to C$18.9 million from C$17.2 million in the third
quarter of fiscal 2014. Excluding one-time costs in the third
quarter of fiscal 2014, SG&A increased to C$18.9 million from
C$15.4 million in the third quarter of fiscal 2014. As a percent of
sales, SG&A excluding these one-time costs, decreased to 52.1%
from 56.2%, due primarily to leveraging of fixed expenses.
- Results from operating activities were C$(0.9) million as
compared to C$(2.9) million in the third quarter of fiscal 2014.
Excluding one-time costs in the third quarter of fiscal 2014,
results from operating activities improved to C$(0.9) million from
C$(1.0) million in the third quarter of fiscal 2014.
- The Company opened 18 new stores in the third quarter and ended
the quarter with a total of 183 stores in Canada and the U.S. This
represents an increase of 28% from the end of the third quarter of
fiscal 2014.
- Adjusted EBITDA was C$1.5 million compared to C$1.0 million in
the third quarter of fiscal 2014. Adjusted EBITDA excludes
IPO-related and other non-cash or one-time costs (see
Reconciliation of Adjusted EBITDA table).
- Net loss was C$(0.9) million compared to C$(0.2) million in the
third quarter of fiscal 2014. Adjusted net loss, which excludes
IPO-related and other one-time income or expenses (see
Reconciliation of IFRS basis to Adjusted net loss table), was
C$(0.8) million compared to C$(1.7) million for the third quarter
of fiscal 2014.
- Fully diluted loss per common share was C$(0.04) compared to
C$(0.02) in the third quarter of fiscal 2014. Adjusted fully
diluted loss per common share, which is adjusted net loss on an
adjusted fully diluted weighted average shares outstanding basis
(see Reconciliation of fully diluted weighted average common shares
outstanding table), was C$(0.03) per share compared to C$(0.07) per
share in the third quarter of fiscal 2014.
Sylvain Toutant, President and Chief Executive Officer, stated:
"We are pleased with our third quarter top- and bottom-line
performance, highlighted by a 32.5% increase in sales and
comparable sales growth of 6.3%. Our strong top-line performance
was fueled by continued strength from new and existing stores, and
our thriving e-commerce business, as customers responded to our
innovative merchandise offering and compelling marketing
message."
Mr. Toutant continued, "We are well-positioned for the upcoming
holiday season with our exciting product assortment and steady
stream of newness that we believe will resonate with our customers.
Given our strong third quarter performance we are raising our
outlook for the year. Looking ahead, we remain focused on building
our unique brand, expanding our store base and e-commerce
footprint, driving profitability and realizing the significant
potential that we believe exists for DAVIDsTEA."
For the nine months ended October 31, 2015:
- Sales increased by 31.0% to C$104.9 million from C$80.1 million
in the comparable period in fiscal 2014. Comparable sales increased
by 6.5%.
- Gross profit increased by 24.3% to C$53.2 million while gross
profit as a percent of sales decreased to 50.7% from 53.4% in the
comparable period in fiscal 2014. The decrease in gross profit as a
percent of sales was driven primarily by the adverse impact from
the stronger U.S. dollar on U.S. dollar denominated purchases in
the nine months ended October 31, 2015. On a constant currency
basis, gross profit as a percent of sales was 53.2%.
- SG&A increased to C$58.2 million from C$44.3 million in the
comparable period in fiscal 2014. Excluding one-time costs,
SG&A increased to C$53.8 million from C$42.5 million in the
comparable period in fiscal 2014. As a percent of sales, SG&A,
excluding these one-time costs, decreased to 51.3% from 53.1%, due
primarily to leveraging of fixed expenses.
- Results from operating activities were C$(5.0) million as
compared to C$(1.5) million in the comparable period in fiscal
2014. Excluding one-time costs, results from operating activities
decreased to C$(0.6) million from C$0.3 million in the comparable
period in fiscal 2014.
- The Company opened 29 net new stores in the nine months ended
October 31, 2015 and ended the period with a total of 183 stores in
Canada and the U.S. This represents an increase of 28% from the
comparable period in fiscal 2014.
- Adjusted EBITDA was C$5.7 million compared to C$5.4 million in
the comparable period in 2014. Adjusted EBITDA excludes IPO-related
and other non-cash or one-time costs (see Reconciliation of
Adjusted EBITDA table).
- Net loss was C$(146.2) million compared to C$(1.5) million in
the comparable period in fiscal 2014. The decrease in net income in
fiscal 2015 is due to a $140.9 million non-cash loss in the second
quarter of fiscal 2015 associated with the embedded derivative on
Series A, A-1 and A-2 preferred shares. In conjunction with the IPO
transaction, all preferred shares were converted into common
shares. As a result, this charge will not reoccur. Adjusted net
loss, which excludes IPO-related and other one-time costs for the
nine months ended October 31, 2015 (see Reconciliation of IFRS
basis to Adjusted net loss table), was C$(1.2) million compared to
C$(1.7) million for the comparable period in fiscal 2014.
- Fully diluted loss per common share was C$(7.91) compared to
C$(0.12) in the comparable period in fiscal 2014. Adjusted fully
diluted loss per common share, which is adjusted net loss on an
adjusted fully diluted weighted average shares outstanding basis
(see Reconciliation of fully diluted weighted average common shares
outstanding table), improved to C$(0.05) per share compared to
C$(0.07) per share in the comparable period in fiscal 2014.
Balance sheet highlights as of October 31,
2015:
- Cash: C$48.3 million.
- Total liquidity (cash plus availability on a C$20.0 million
revolving facility): C$68.3 million.
Fourth Quarter and Fiscal 2015 Outlook:
For the fourth quarter of fiscal 2015, sales are expected to be
in the range of C$70.0 million to C$72.0 million based on opening
10 new stores and assuming a comparable sales increase slightly
above the mid-single digit range. Adjusted EBITDA is expected to be
in the range of C$18.0 million to C$19.0 million. Adjusted net
income, which excludes IPO-related costs and other one-time costs,
is expected to be in the range of C$11.0 million to C$11.5 million,
with an adjusted fully diluted income per common share range of
C$0.42 to C$0.44 on approximately 26.3 million adjusted fully
diluted weighted average shares outstanding.
For fiscal 2015, sales are expected to be in the range of
C$175.0 million to C$177.0 million based on opening 39 net new
stores for the full year and assuming a comparable sales increase
slightly above the mid-single digit range. Adjusted EBITDA is
expected to be in the range of C$23.5 million to C$24.5 million.
Adjusted net income, which excludes IPO-related and other one-time
costs, is expected to be in the range of C$9.7 million to C$10.2
million, or C$0.37 to C$0.39 per share on approximately 26.3
million adjusted fully diluted common shares outstanding.
Conference Call Information:
A conference call to discuss the third quarter fiscal 2015
financial results is scheduled for today, December 10, 2015, at
4:30 p.m. Eastern Standard Time. The conference call will be
webcast and may be accessed via the Company's Investor Relations
section of its website at www.davidstea.com. An online archive of
the webcast will be available within two hours of the conclusion of
the call and will remain available for one year.
Non-IFRS Information:
This press release includes non-IFRS measures including Adjusted
EBITDA, Adjusted net income(loss), and Adjusted fully diluted
income(loss) per share. Adjusted EBITDA, Adjusted net income(loss)
and Adjusted fully diluted income(loss) per share are not
presentations made in accordance with IFRS, and the use of the
terms Adjusted EBITDA, Adjusted net income(loss) and Adjusted fully
diluted income(loss) per share may differ from similar measures
reported by other companies. We believe that Adjusted EBITDA,
Adjusted net income(loss) and Adjusted fully diluted income(loss)
per share provide investors with useful information with respect to
our historical operations. We present Adjusted EBITDA, Adjusted net
income(loss) and Adjusted fully diluted income(loss) per share as
supplemental performance measures because we believe they
facilitate a comparative assessment of our operating performance
relative to our performance based on our results under IFRS, while
isolating the effects of some items that vary from
period-to-period. Specifically, Adjusted EBITDA, Adjusted net
income(loss) and Adjusted fully diluted income(loss) per share
allow for an assessment of our operating performance and our
ability to service or incur indebtedness without the effect of
non-cash charges of the period or other one-time charges, such as
depreciation, amortization, impairment costs, costs related to
onerous contracts or contracts where we expect the costs of the
obligations to exceed the economic benefit and non-recurring
expenses relating to our initial public offering. These measures
also function as benchmarks to evaluate our operating performance.
Adjusted EBITDA, Adjusted net income (loss), and Adjusted fully
diluted income(loss) per share are not measurements of our
financial performance under IFRS and should not be considered in
isolation or as alternatives to net income, net cash provided by
operating, investing or financing activities or any other financial
statement data presented as indicators of financial performance or
liquidity, each as presented in accordance with IFRS. We understand
that although Adjusted EBITDA, Adjusted net income(loss), and
Adjusted fully diluted income(loss) per share are frequently used
by securities analysts, lenders and others in their evaluation of
companies, they have limitations as analytical tools, and you
should not consider them in isolation, or as a substitute for
analysis of our results as reported under IFRS. Some of these
limitations are:
- Adjusted EBITDA, Adjusted net income(loss), and Adjusted fully
diluted income(loss) per share do not reflect changes in, or cash
requirements for, our working capital needs; and
- Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and Adjusted EBITDA does not reflect any
cash requirements for such replacements.
Because of these limitations, Adjusted EBITDA, Adjusted net
income(loss), and Adjusted fully diluted income(loss) per share
should not be considered as discretionary cash available to us to
reinvest in the growth of our business or as a measure of cash that
will be available to us to meet our obligations.
Forward-Looking Statements:
This press release includes forward-looking statements. These
forward-looking statements generally can be identified by the use
of words such as "anticipate," "expect," "plan," "could," "may,"
"will," "believe," "estimate," "forecast," "goal," "project," and
other words of similar meaning. These forward-looking statements
address various matters including management's beliefs about the
Company's sales and growth prospects for the coming fiscal quarter
and fiscal year. The Company cannot assure investors that future
developments affecting the Company will be those that it has
anticipated. Actual results may differ materially from these
expectations due to risks including: the Company's ability to
maintain and enhance its brand image, particularly in new markets;
the Company's ability to compete in the specialty tea and beverage
category; the Company's ability to expand and improve its
operations; levels of foot traffic in locations in which the
Company's stores are located; changes in consumer trends and
preferences; fluctuations in foreign currency exchange rates;
general economic conditions and consumer confidence; the importance
of the Company's fourth fiscal quarter to results of operations for
the entire fiscal year; and other risks set forth in the Company's
prospectus filed with the Securities and Exchange Commission on
June 4, 2015. If one or more of these risks or uncertainties
materialize, or if any of the Company's assumptions prove
incorrect, the Company's actual results may vary in material
respects from those projected in these forward-looking statements.
Any forward-looking statement made by the Company in this release
speak only as of the date on which the Company makes it. The
Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by any
applicable securities laws.
About DAVIDsTEA:
DAVIDsTEA is a fast-growing branded beverage company, offering a
differentiated selection of proprietary loose-leaf teas,
pre-packaged teas, tea sachets and tea-related gifts and
accessories. As of October 31, 2015, the Company owned and
operated 183 DAVIDsTEA stores throughout the United States and
Canada. The Company is headquartered in Montréal, Canada.
|
INTERIM CONSOLIDATED
BALANCE SHEETS |
[Unaudited and in
thousands of Canadian dollars] |
|
|
|
|
As at |
As at |
|
October 31, |
January 31, |
|
2015 |
2015 |
|
$ |
$ |
|
|
|
ASSETS |
|
|
Current |
|
|
Cash |
48,251 |
19,784 |
Accounts and other receivables |
3,453 |
2,355 |
Inventories |
27,176 |
12,517 |
Income tax receivable |
3,670 |
852 |
Prepaid expenses and deposits |
4,688 |
3,050 |
Derivative financial instruments |
783 |
— |
Total current assets |
88,021 |
38,558 |
Property and equipment |
43,844 |
35,621 |
Intangible assets |
2,201 |
1,669 |
Deferred income taxes |
4,521 |
3,212 |
Total assets |
138,587 |
79,060 |
LIABILITIES AND
EQUITY/(DEFICIENCY) |
|
|
Current |
|
|
Trade and other payables |
15,727 |
12,441 |
Deferred revenue |
2,279 |
2,634 |
Income taxes payable |
— |
87 |
Current portion of provisions |
35 |
258 |
Current portion of long-term debt and
finance lease obligations |
— |
4,287 |
Total current
liabilities |
18,041 |
19,707 |
Deferred rent and lease inducements |
5,530 |
4,137 |
Provisions |
594 |
616 |
Long-term debt and finance lease
obligations |
— |
6,142 |
Deferred income taxes |
— |
357 |
Loan from the controlling
shareholder |
— |
2,952 |
Preferred shares — Series A,
A-1 and A-2 |
— |
28,768 |
Financial derivative liability embedded
in preferred shares — Series A, A-1 and A-2 |
— |
16,427 |
Total liabilities |
24,165 |
79,106 |
Equity/(Deficiency) |
|
|
Share capital |
259,115 |
385 |
Contributed surplus |
2,539 |
1,412 |
Deficit |
(150,314) |
(4,129) |
Accumulated other comprehensive
income |
3,082 |
2,286 |
Total
Equity/(Deficiency) |
114,422 |
(46) |
|
138,587 |
79,060 |
|
INTERIM CONSOLIDATED
STATEMENTS OF LOSS |
AND COMPREHENSIVE
INCOME/(LOSS) |
[Unaudited and in
thousands of Canadian dollars, except share
information] |
|
|
|
|
|
|
for the three months ended |
for the nine months ended |
|
October 31, |
October 25, |
October 31, |
October 25, |
|
2015 |
2014 |
2015 |
2014 |
|
$ |
$ |
$ |
$ |
|
|
|
|
[restated] |
Sales |
36,305 |
27,439 |
104,930 |
80,115 |
Cost of sales |
18,283 |
13,064 |
51,769 |
37,335 |
Gross profit |
18,022 |
14,375 |
53,161 |
42,780 |
Selling, general and administration
expenses |
18,888 |
17,226 |
58,150 |
44,289 |
Results from operating
activities |
(866) |
(2,851) |
(4,989) |
(1,509) |
Finance costs |
17 |
581 |
1,031 |
1,738 |
Finance income |
(108) |
(27) |
(231) |
(114) |
Loss on derivative financial instruments |
164 |
— |
— |
— |
Accretion of preferred shares |
— |
300 |
401 |
754 |
(Gain)/Loss from embedded derivative on
Series A, A-1 and A-2 preferred shares |
— |
(3,855) |
140,874 |
(3,693) |
IPO related costs |
— |
35 |
— |
35 |
Settlement cost related to former option
holder |
— |
520 |
— |
520 |
Loss before income
taxes |
(939) |
(405) |
(147,064) |
(749) |
Provision for income tax/(recovery) |
(68) |
(177) |
(879) |
727 |
Net loss |
(871) |
(228) |
(146,185) |
(1,476) |
Other comprehensive
income/(loss) |
|
|
|
|
Items that are or may be reclassified
subsequently to income: |
|
|
|
|
Change in fair value of derivative financial
instruments |
45 |
— |
1,894 |
— |
Realized forward exchange contracts
reclassified to inventory |
(1,111) |
— |
(1,111) |
— |
Provision for income tax on comprehensive
income |
(12) |
— |
(546) |
— |
Provision for income tax recovery on
comprehensive income |
338 |
— |
338 |
— |
Cumulative translation adjustment |
(20) |
309 |
221 |
136 |
|
(760) |
309 |
796 |
136 |
Comprehensive
income/(loss) |
(1,631) |
81 |
(145,389) |
(1,340) |
Loss per share |
|
|
|
|
Basic |
(0.04) |
(0.02) |
(7.91) |
(0.12) |
Fully diluted |
(0.04) |
(0.02) |
(7.91) |
(0.12) |
Weighted average number of shares
outstanding |
|
|
|
|
— basic |
23,977,040 |
12,024,835 |
18,360,119 |
11,965,521 |
— fully diluted |
23,977,040 |
12,024,835 |
18,360,119 |
11,965,521 |
|
INTERIM CONSOLIDATED
STATEMENTS OF CASH FLOWS |
[Unaudited and in
thousands of Canadian dollars] |
|
|
|
|
|
|
for the three months ended |
for the nine months ended |
|
October 31, |
October 25, |
October 31, |
October 25, |
|
2015 |
2014 |
2015 |
2014 |
|
$ |
$ |
$ |
$ |
|
|
|
|
[restated] |
OPERATING ACTIVITIES |
|
|
|
|
Net loss |
(871) |
(228) |
(146,185) |
(1,476) |
Items not affecting cash: |
|
|
|
|
Depreciation of property and
equipment |
1,445 |
1,410 |
4,093 |
3,500 |
Amortization of intangible assets |
168 |
148 |
433 |
434 |
Loss on disposal of property and
equipment |
— |
— |
292 |
— |
Impairment of property and equipment |
— |
1,301 |
— |
1,301 |
Loss on derivative financial
instruments |
164 |
— |
— |
— |
Deferred rent |
333 |
170 |
815 |
590 |
Provision/(Recovery) for onerous
contracts |
— |
529 |
(265) |
529 |
Stock-based compensation expense |
458 |
296 |
1,276 |
577 |
Settlement cost related to former option
holder |
— |
345 |
— |
345 |
Amortization of financing fees |
— |
44 |
176 |
128 |
Accretion of preferred shares |
— |
300 |
401 |
754 |
(Gain)/Loss from embedded derivative on
Series A, A-1 and A-2 preferred shares |
— |
(3,855) |
140,874 |
(3,693) |
Deferred income taxes |
323 |
174 |
1,011 |
35 |
|
2,020 |
634 |
2,921 |
3,024 |
Net change in other non-cash working capital
balances related to operations |
(8,764) |
(3,007) |
(16,210) |
(7,973) |
Cash flows related to operating
activities |
(6,744) |
(2,373) |
(13,289) |
(4,949) |
FINANCING ACTIVITIES |
|
|
|
|
Repayment of finance lease obligations |
— |
(79) |
(552) |
(234) |
Proceeds of long-term debt |
— |
— |
9,996 |
— |
Repayment of long-term debt |
— |
(740) |
(20,010) |
(2,220) |
Repayment of loan from controlling
shareholder |
— |
— |
(2,952) |
— |
Issuance of common shares pursuant to
exercise of stock options |
27 |
— |
86 |
40 |
Issuance of Series A, A-1 and A-2
preferred shares |
— |
— |
— |
3,554 |
Gross proceeds of initial public
offering |
— |
— |
79,370 |
— |
Issuance costs paid on initial public
offering |
(72) |
— |
(10,620) |
— |
Financing fees |
(15) |
(25) |
(186) |
(137) |
Cash flows related to financing
activities |
(60) |
(844) |
55,132 |
1,003 |
INVESTING ACTIVITIES |
|
|
|
|
Additions to property and equipment |
(7,385) |
(6,259) |
(12,415) |
(8,810) |
Additions to intangible assets |
(293) |
(273) |
(961) |
(593) |
Cash flows related to investing
activities |
(7,678) |
(6,532) |
(13,376) |
(9,403) |
Increase (decrease) in cash |
(14,482) |
(9,749) |
28,467 |
(13,349) |
Cash, beginning of
period |
62,733 |
11,750 |
19,784 |
15,350 |
Cash, end of period |
48,251 |
2,001 |
48,251 |
2,001 |
|
Reconciliation of
Adjusted EBITDA |
[Unaudited and in
thousands of Canadian dollars] |
|
|
|
|
|
|
for the three months ended |
for the nine months ended |
|
October 31, |
October 25, |
October 31, |
October 25, |
|
2015 |
2014 |
2015 |
2014 |
|
|
|
|
[restated] |
Net loss |
(871) |
(228) |
(146,185) |
(1,476) |
Finance costs |
17 |
581 |
1,031 |
1,738 |
Finance income |
(108) |
(27) |
(231) |
(114) |
Depreciation and amortization |
1,613 |
1,558 |
4,526 |
3,934 |
Provision for income tax (recovery) |
(68) |
(177) |
(879) |
727 |
EBITDA |
583 |
1,707 |
(141,738) |
4,809 |
|
|
|
|
|
Additional adjustments |
|
|
|
|
Stock-based compensation
expense (a) |
458 |
296 |
1,276 |
577 |
Stock-based compensation expense for
cashless exercise (b) |
— |
— |
4,052 |
— |
Impairment of property and
equipment (c) |
— |
1,301 |
— |
1,301 |
Provision/(Recovery) for onerous
contracts (d) |
— |
529 |
(265) |
529 |
Deferred rent (e) |
333 |
170 |
815 |
590 |
Loss on derivative financial
instruments (f) |
164 |
— |
— |
— |
Loss on disposal of property and
equipment (g) |
— |
— |
292 |
— |
Accretion of preferred
shares (h) |
— |
300 |
401 |
754 |
(Gain)/Loss from embedded derivative on
Series A, A-1 and A-2 preferred shares (i) |
— |
(3,855) |
140,874 |
(3,693) |
IPO related costs (j) |
— |
35 |
— |
35 |
Settlement cost related to former option
holder (k) |
— |
520 |
— |
520 |
Adjusted EBITDA |
1,538 |
1,003 |
5,707 |
5,422 |
|
|
|
|
|
(a) Represents non-cash
stock-based compensation expense. |
(b) Represents expenses
related to cashless exercise of options by former employees. |
(c) Represents costs related
to impairment of property, equipment and intangible assets for
stores in the United States. |
(d) Represents provision and
non-cash recovery related to certain stores where the unavoidable
costs of meeting the obligations under the lease agreements are
expected to exceed the economic benefits expected to be received
from the contract. |
(e) Represents the extent to
which our annual rent expense has been above or below our cash
rent. |
(f) Represents the non-cash
loss on derivative financial instruments. |
(g) Represents non-cash
costs related to closure of one store due to termination of
sub-lease. |
(h) Represents non-cash
accretion expense on our preferred shares. In connection with the
completion of our initial public offering on June 10, 2015,
all of our outstanding preferred shares converted automatically
into common shares. |
(i) Represents provision for
the conversion feature of the Series A, A-1 and A-2 preferred
shares. In connection with the completion of our initial public
offering, this liability converted into equity, which are reflected
in our results for the quarter ended August 1, 2015. |
(j) Represents fees and
expenses incurred in connection with the initial public offering of
common shares. |
(k) Represents costs
incurred to settle a dispute with a former option holder. |
|
Reconciliation of IFRS
basis to Adjusted net loss |
[Unaudited and in
thousands of Canadian dollars] |
|
|
|
|
|
|
For the three months ended |
For the nine months ended |
|
October 31, |
October 25, |
October 31, |
October 25, |
|
2015 |
2014 |
2015 |
2014 |
|
|
|
|
[restated] |
Net loss |
(871) |
(228) |
(146,185) |
(1,476) |
Stock-based compensation expense for
cashless exercise (a) |
— |
— |
4,052 |
— |
Finance costs related to preferred
shares (b) |
— |
335 |
477 |
926 |
Impairment of property and equipment
(c) |
— |
1,301 |
— |
1,301 |
Provision for onerous contracts (d) |
— |
529 |
— |
529 |
Loss on derivative financial instruments
(e) |
164 |
— |
— |
— |
Loss on disposal of property and
equipment (f) |
— |
— |
292 |
— |
Accretion of preferred shares (g) |
— |
300 |
401 |
754 |
(Gain)/Loss from embedded derivative on
Series A, A-1 and A-2 preferred shares (h) |
— |
(3,855) |
140,874 |
(3,693) |
IPO related costs (i) |
— |
35 |
— |
35 |
Settlement costs related to former option
holder (j) |
— |
520 |
— |
520 |
Income tax expense adjustment (k) |
(43) |
(632) |
(1,151) |
(632) |
Adjusted net loss |
(750) |
(1,695) |
(1,240) |
(1,736) |
|
|
|
|
|
(a) Represents expenses
related to cashless exercise of options by former employees. |
(b) Represents finance fees
related to the preferred shares. Upon the completion of the initial
public offering, we converted the liability associated with these
preferred shares into equity. |
(c) Represents costs related
to impairment of property, equipment and intangible assets for
stores in the United States. |
(d) Represents provision
related to certain stores where the unavoidable costs of meeting
the obligations under the lease agreements are expected to exceed
the economic benefits expected to be received from the
contract. |
(e) Represents the non-cash
loss on derivative financial instruments. |
(f) Represents non-cash
costs related to closure of one store due to termination of
sub-lease. |
(g) Represents non-cash
accretion expense on our preferred shares. In connection with the
completion of our initial public offering on June 10, 2015,
all of our outstanding preferred shares converted automatically
into common shares. |
(h) Represents provision for
the conversion feature of the Series A, A-1 and A-2 preferred
shares. In connection with the completion of our initial public
offering, this liability converted into equity, which are reflected
in our results for the quarter ended August 1, 2015. |
(i) Represents fees and
expenses incurred in connection with the initial public offering of
common shares. |
(j) Represents costs
incurred to settle a dispute with a former option holder. |
(k) Removes the impact of
the stock-based compensation expense for cashless exercise on
income taxes, impairment of property and equipment, provision for
onerous contracts, loss on derivative financial instruments, loss
on disposal of property and equipment, IPO related costs and
settlement costs related to former option holder referenced in
notes (a), (c), (d), (e), (f), (i) and (j). |
|
Reconciliation of fully
diluted weighted average common shares outstanding, as reported,
adjusted fully diluted weighted average common shares
outstanding |
[Unaudited and in
thousands of Canadian dollars, except per share] |
|
|
|
|
|
|
for the three months ended |
for the nine months ended |
|
October 31, |
October 25, |
October 31, |
October 25, |
|
2015 |
2014 |
2015 |
2014 |
|
|
|
|
|
Weighted average number of shares
outstanding, fully diluted |
23,977,040 |
12,024,835 |
18,360,119 |
11,965,521 |
Adjustments: |
|
|
|
|
Adjustment for conversion of preferred
shares Series A, A-1 and A-2 (a) |
— |
8,128,805 |
3,855,205 |
8,128,805 |
Initial public company share issuance
(b) |
— |
3,414,261 |
1,619,263 |
3,414,261 |
Adjusted weighted average number of
shares outstanding, fully diluted |
23,977,040 |
23,567,901 |
23,834,587 |
23,508,587 |
|
|
|
|
|
Earnings per share, fully diluted -
as reported |
(0.04) |
(0.02) |
(7.91) |
(0.12) |
|
|
|
|
|
Adjusted earnings per share, fully
diluted |
(0.03) |
(0.07) |
(0.05) |
(0.07) |
|
|
|
|
|
(a) Reflects the impact of
the conversion of Series A, A-1 and A-2 preferred shares into
common shares, as if they had been available the entire
period. |
(b) Reflects the number of
common shares issued in the initial public offering, as if they had
been available the entire period. |
CONTACT: Investor Contact
ICR Inc.
Farah Soi/Rachel Schacter
(203)-682-8200
investors@davidstea.com
Media Contact:
ICR, Inc.
Jessica Liddell/Julia Young
203-682-8200
pr@davidstea.com
Davids Tea (NASDAQ:DTEA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Davids Tea (NASDAQ:DTEA)
Historical Stock Chart
From Jul 2023 to Jul 2024