Destination XL Group, Inc. (NASDAQ: DXLG), the leading omni-channel
specialty retailer of Big + Tall men’s clothing and shoes, today
reported operating results for the third quarter of fiscal 2022,
and raised sales and earnings guidance for the fiscal year.
Third Quarter Financial Highlights
- Total sales for the third quarter were $129.7 million, up 6.7%
from $121.5 million in the third quarter of fiscal 2021. Comparable
sales for the third quarter of fiscal 2022 increased 8.7% as
compared to the third quarter of fiscal 2021.
- Net income for the third quarter was $10.5 million, or $0.16
per diluted share as compared to net income of $13.7 million, or
$0.20 per diluted share, in the third quarter of fiscal 2021.
- Adjusted EBITDA for the third quarter was $16.4 million
compared to $19.0 million in the third quarter of fiscal 2021, or
an adjusted EBITDA margin of 12.7% compared to 15.6% in the third
quarter of fiscal 2021.
- Cash flow from operations for the first nine months of fiscal
2022 was $30.2 million and free cash flow was $22.3 million.
- Total cash of $23.5 million at October 29, 2022 as compared to
$6.9 million at October 30, 2021, with no outstanding debt for
either period. Availability under our credit facility was $90.2
million at October 29, 2022, as compared to $74.0 million at
October 30, 2021.
Management’s Comments
“We are pleased with our third quarter results which we believe
reflects that the DXL brand continues to resonate with Big + Tall
men. This was another strong quarter of sales and earnings
for us punctuated by comparable sales growth of 8.7% and a
heightened margin profile driven by the brand’s transformational
repositioning. With cash on hand, no outstanding debt and
full availability under our credit facility, we are well-positioned
to pursue our strategic initiatives to further grow our business
and take share of market,” said Harvey Kanter, President and Chief
Executive Officer.
“At DXL, Big + Tall is all we do – and our positioning is in
direct contrast to other retailers,” Kanter continued. “The
Big + Tall man has largely been ignored by the broader apparel
industry. Few brands, fewer styles, and sizing based on someone
else’s definition of ‘regular’ limit him every time he tries to
find clothing. While most retailers of men’s apparel offer some
level of a big and tall assortment to their customers, it is often
a single rack or a small sub-department – for no other omni-channel
retailer is it their top priority. At DXL, we trade on the
belief that we offer superior fit, assortment, and experience to
him, period. We believe this leads to a relationship with our
customers that is built on respect, trust, and belonging. We
exist to provide the Big + Tall man with the freedom to choose his
own style, to wear what he wants to wear.
“Our results year-to-date have outperformed our expectations and
we believe are demonstrative of why we exist and the relationship
we are building in the addressable market. We are in a strong
inventory position as we head into the fourth quarter, better than
we have been since pre-pandemic times. While we believe DXL
is well-positioned, we are cognizant of the ongoing inflationary
pressures and other macroeconomic factors. As always, we
remain conservative but optimistic. Given our year-to-date
performance and the outperformance of sales in the third quarter,
we have raised our sales guidance for fiscal 2022 to a range of
$535.0 to $545.0 million, from our previous guidance of $520.0 to
$540.0 million. We have also raised our adjusted EBITDA
margin this year and expect a range of 12.5% to 13.5%,” Kanter
concluded.
Third Quarter Results
Sales
Total sales for the third quarter of fiscal 2022 were $129.7
million, as compared to $121.5 million in the third quarter of
fiscal 2021. Comparable sales for the third quarter were up
8.7% with comparable sales from our stores up 10.1% and our direct
business up 5.5%.
Store sales for the third quarter exceeded our plan, driven
primarily by increases in dollars per transaction and conversion.
The increase in dollars per transaction was attributable to a
combination of factors, including less markdowns from fewer
promotions and deeper penetration in high ticket categories such as
tailored clothing. All regions outperformed the prior-year third
quarter, with the southeast region showing the strongest sales
increase. The growth in our direct business of 5.5% was
driven primarily by our web and app with continued growth from
online marketplaces. Stores accelerated and outpaced the direct
business in total during the third quarter, as consumers continued
to return to stores at an increasing level.
Compared to the third quarter of fiscal 2019, the last
normalized selling year, our comparable sales for the third quarter
of fiscal 2022 were up 33.7%. We believe the comparison to fiscal
2019 is relevant when evaluating our sales performance given the
impact of the pandemic on the past two years. As compared to the
third quarter of fiscal 2021, comparable sales for the third
quarter of fiscal 2022 were up 7.4% in August, up 8.5% in September
and up 10.3% in October. We are cognizant of the potential
macro-economic impact on consumer spending in the fourth quarter
and, while we remain optimistic, we are conservatively forecasting
comparable sales growth for the fourth quarter of fiscal 2022 to be
in the single digits.
Gross Margin
For the third quarter of fiscal 2022, our gross margin rate,
inclusive of occupancy costs, was 50.0% as compared to a gross
margin rate of 50.2% for the third quarter of fiscal 2021.
Our gross margin rate decreased by 20-basis points, with a
decrease in merchandise margin of 70-basis points, partially offset
by a 50-basis point improvement in occupancy costs due to the
increased leverage from sales. The decrease in merchandise
margin of 70-basis points was due to increased costs for raw
materials, increased shipping costs per package, driven by higher
fuel costs and surcharges, and a higher penetration of our
marketplace business, which has higher commission costs.
Those increases were partially offset by lower promotional
markdowns. We continue to optimize our pricing and
promotional cadence to mitigate cost increases and preserve our
margin rates.
Selling, General & Administrative
As a percentage of sales, SG&A (selling, general and
administrative) expenses for the third quarter of fiscal 2022 were
37.3% as compared to 34.5% for the third quarter of fiscal
2021.
On a dollar basis, SG&A expenses increased by $6.4 million
as compared to the third quarter of fiscal 2021. The increase was
primarily due to an increase in marketing costs to drive customer
acquisition and engagement, payroll costs to support sales growth
and fill open positions, and an increase in performance-based
incentive accruals.
Management views SG&A expenses through two primary cost
centers: Customer Facing Costs and Corporate Support
Costs. Customer Facing Costs, which include store payroll,
marketing and other store and direct operating costs, represented
21.6% of sales in the third quarter of fiscal 2022 as compared to
19.6% of sales in the third quarter of fiscal 2021. Corporate
Support Costs, which include the distribution center and corporate
overhead costs, represented 15.7% of sales in the third quarter of
fiscal 2022 compared to 14.9% of sales in the second quarter of
fiscal 2021. Marketing costs for the third quarter were 5.9%
as compared to 4.5% for the third quarter of fiscal 2021. For
fiscal 2022, marketing costs are expected to be approximately 6.2%
of sales.
Interest Expense
Interest expense for third quarter of fiscal 2022 was $0.1
million, as compared to $2.2 million for the third quarter of
fiscal 2021. The Company had no outstanding debt and no
borrowings under its credit facility during the third quarter of
fiscal 2022 resulting in a decrease in interest expense as compared
to the third quarter of fiscal 2021. Interest expense for the
third quarter of fiscal 2021 included a prepayment penalty of $1.1
million associated with the Company's early prepayment of its
long-term debt.
Income Taxes
Since the end of fiscal 2013, we have had a full valuation
allowance against our deferred taxes assets. During the second
quarter of fiscal 2022, we determined that it was more likely than
not that the majority of our deferred tax assets will be
realized. In reaching this determination, the Company
considered the cumulative three years of profitability, its
expectations regarding the generation of future taxable income as
well as the overall improvement in the Company's business and its
current market position. As a result, in the second quarter of
fiscal 2022, the Company recognized a tax benefit related to the
release of approximately $35.5 million in valuation allowance
against its deferred tax assets in the United States. At
October 29, 2022, the Company continued to provide a valuation
allowance of $2.4 million primarily against certain state and
foreign net operating losses ("NOLs").
For the third quarter of fiscal 2022, we recorded an income tax
provision of $2.1 million, which included a $2.0 million discrete
tax expense to adjust the release of valuation allowance to reflect
an increase in third quarter earnings and full-year earnings
forecast. For the third quarter of fiscal 2021, we recorded
an income tax provision of $94,000, primarily related to income tax
in states where NOL usage is statutorily limited.
For the first nine months of fiscal 2022, the income tax benefit
of $ 32.9 million includes a tax benefit related to the release of
the valuation allowance of $33.5 million, or $0.50 per diluted
share.
Net Income
For the third quarter of fiscal 2022, net income was $10.5
million, or $0.16 per diluted share, as compared to net income for
the third quarter of fiscal 2021 of $13.7 million, or $0.20 per
diluted share. The decrease in earnings for the third quarter of
fiscal 2022 as compared to fiscal 2021 was due to planned
investments in marketing, an increase in payroll to support sales
growth and an increase in income tax provision as a result of the
reversal of the valuation allowance. As mentioned previously,
our operating cost structure in fiscal 2021 was insufficient to
support our 2022 sales growth objectives and was unsustainable over
the long-term.
Adjusted EBITDA
Adjusted EBITDA, a non-GAAP measure, for the third quarter of
fiscal 2022 was $16.4 million, compared to $19.0 million for the
third quarter of fiscal 2021. We have made deliberate
investments in our business, specifically in marketing and
attracting and retaining talent, to drive our digital
transformation and brand repositioning.
Cash Flow
Cash flow from operations for the first nine months of fiscal
2022 was $30.2 million as compared to $64.2 million for the first
nine months of fiscal 2021. Free cash flow was $22.3 million
for the first nine months of fiscal 2022 as compared to $61.3
million for the first nine months of fiscal 2021. The
year-over-year decrease in free cash flow was due to our purposeful
replenishment of inventory in several categories that were depleted
last year, the payout of incentive-based awards, and an increase in
capital expenditures.
For fiscal 2022, we expect our capital expenditures will be
approximately $10.0-$12.0 million as we make investments in
technology related to our marketing and merchandising
initiatives. We are also actively pursuing opportunities to
relocate or convert our remaining Casual Male XL stores to DXL
stores which may require some capital investment in fiscal
2022.
|
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|
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|
|
For the nine months ended |
(in millions) |
|
October 29, 2022 |
|
|
October 30, 2021 |
|
|
Cash flow from operating activities (GAAP basis) |
|
$ |
30.2 |
|
|
$ |
64.2 |
|
|
Capital expenditures |
|
|
(7.9 |
) |
|
|
(2.8 |
) |
|
Free Cash Flow (non-GAAP
basis) |
|
$ |
22.3 |
|
|
$ |
61.3 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures
Adjusted EBITDA, adjusted EBITDA margin and free cash flow are
non-GAAP financial measures. Please see “Non-GAAP Measures” below
and reconciliations of these non-GAAP measures to the comparable
GAAP measures that follow in the tables below.
Balance Sheet & Liquidity
At October 29, 2022, we had a cash balance of $23.5 million as
compared to $6.9 million at October 30, 2021, with no outstanding
debt in either period. We did not have any borrowings under
our credit facility during the third quarter and, at October 29,
2022, the availability under our credit facility was $90.2 million,
as compared to $74.0 million at October 30, 2021. As discussed
below, we used approximately $12.7 million during the first nine
months of fiscal 2022, from available cash on hand, for our stock
repurchase program.
As of October 29, 2022, our inventory increased approximately
$24.5 million to $106.8 million, as compared to $82.3 million at
October 30, 2021. While our inventory increased over last year's
third quarter, inventory was down 11.1% and inventory turnover was
up over 30% from the third quarter of fiscal 2019, or pre-pandemic
levels. As we head into the fourth quarter of fiscal 2022, we
believe that we are in a strong inventory position and have been
able to replenish several categories that were depleted last year,
while also being cautious to not have excess inventory.
Managing our inventory remains a primary focus for us given the
potential impact that inflation may have on consumer
spending. At October 29, 2022, our clearance inventory was
6.7% of our total inventory, as compared to 6.4% at October 30,
2021 and 10.0% at November 2, 2019.
Stock Repurchase Program
In March 2022, the Company’s Board of Directors approved a stock
repurchase program. Under the stock repurchase program, the Company
may repurchase up to $15.0 million of its common stock through open
market and privately negotiated transactions.
There were no repurchases of stock during the third quarter of
fiscal 2022. For the first nine months of fiscal 2022, we
repurchased 2.9 million shares at an aggregate cost, including
fees, of $12.7 million. Shares of repurchased common stock are held
as treasury stock. The stock repurchase program will expire
in March 2023, unless terminated earlier by the Company's Board of
Directors.
Retail Store Information
Total retail square footage has steadily decreased since the end
of fiscal 2019:
|
Year End 2019 |
|
Year End 2020 |
|
Year End 2021 |
|
At October 29, 2022 |
|
|
# ofStores |
|
Sq Ft.(000’s) |
|
# ofStores |
|
Sq Ft.(000’s) |
|
# ofStores |
|
Sq Ft.(000’s) |
|
# ofStores |
|
Sq Ft.(000’s) |
|
DXL retail |
|
228 |
|
|
1,729 |
|
|
226 |
|
|
1,718 |
|
|
220 |
|
|
1,678 |
|
|
218 |
|
|
1,664 |
|
DXL outlets |
|
17 |
|
|
82 |
|
|
17 |
|
|
82 |
|
|
16 |
|
|
80 |
|
|
16 |
|
|
80 |
|
CMXL retail |
|
50 |
|
|
164 |
|
|
46 |
|
|
152 |
|
|
35 |
|
|
115 |
|
|
30 |
|
|
100 |
|
CMXL outlets |
|
28 |
|
|
85 |
|
|
22 |
|
|
66 |
|
|
19 |
|
|
57 |
|
|
19 |
|
|
57 |
|
Total |
|
323 |
|
|
2,060 |
|
|
311 |
|
|
2,018 |
|
|
290 |
|
|
1,930 |
|
|
283 |
|
|
1,901 |
|
We are reviewing white space opportunities in markets where our
store footprint is underpenetrated and relocation opportunities
where we have an existing Casual Male XL store. We believe that our
store portfolio is a vital asset to our business strategy and we
expect to continue to invest in stores over the next several years
as we further strengthen the store portfolio. Over the next three
to five years, based on our preliminary store development plan, we
believe that we could potentially open up to 50 new and relocated
stores.
Digital Commerce Information
The Company distributes its licensed branded and private label
products directly to consumers through its stores, website, and
third-party marketplaces. Digital commerce sales, which we
also refer to as direct sales, are defined as sales that originate
online, whether through our website, at the store level or through
a third-party marketplace. Our direct business is a critical
component of our business and an area of significant growth
opportunity for us. Our comparable sales in our direct
business increased 5.5% as compared to the third quarter of fiscal
2021. For the third quarter of fiscal 2022, our direct sales
were $37.9 million, or 29.2% of retail segment sales, as compared
to $35.8 million, or 29.7% of retail segment sales, in the third
quarter of fiscal 2021.
Financial Outlook
Based on sales results during the third quarter, we are raising
our sales guidance for fiscal 2022 to a sales range of $535.0
million to $545.0 million (from a previous range of $520.0 million
to $540.0 million) and increasing our guidance for Adjusted EBITDA
margin to 12.5% to 13.5% for fiscal 2022 (from previous
expectations of greater than 10%). As we increase our sales
guidance, we do so cautiously given the continuing uncertainty with
respect to the impact that the current economy and inflation costs
may have on consumer spending in the fourth quarter.
Conference Call
The Company will hold a conference call to review its financial
results on Thursday, November 17, 2022, at 9:00 a.m. ET.
To participate in the live webcast, please pre-register at:
https://register.vevent.com/register/BIbba7dd2f41d44efeb9158a4db01f0f89.
Upon registering, you will be emailed a dial-in number, and unique
PIN.
For listen-only, please join and register at:
https://edge.media-server.com/mmc/p/2ckm8dcp. An archived version
of the webcast may be accessed by visiting the "Events" section of
the Company's investor relations website for up to one year.
During the conference call, the Company may discuss and answer
questions concerning business and financial developments and
trends. The Company’s responses to questions, as well as other
matters discussed during the conference call, may contain or
constitute information that has not been disclosed previously.
Non-GAAP Measures
In addition to financial measures prepared in accordance with
U.S. generally accepted accounting principles (“GAAP”), this press
release contains non-GAAP financial measures, including adjusted
EBITDA, adjusted EBITDA margin, projections about EBITDA margin for
fiscal 2022 and free cash flow. The presentation of these non-GAAP
measures is not in accordance with GAAP, and should not be
considered superior to or as a substitute for net income, net
income per diluted share or cash flows from operating activities or
any other measure of performance derived in accordance with GAAP.
In addition, not all companies calculate non-GAAP financial
measures in the same manner and, accordingly, the non-GAAP measures
presented in this release may not be comparable to similar measures
used by other companies. The Company believes the inclusion of
these non-GAAP measures help investors gain a better understanding
of the Company’s performance, especially when comparing such
results to previous periods, and that they are useful as an
additional means for investors to evaluate the Company's operating
results, when reviewed in conjunction with the Company's GAAP
financial statements. Reconciliations of these non-GAAP measures to
their comparable GAAP measures are provided in the tables
below. The Company has not reconciled forward-looking
adjusted EBITDA margin contained in this press release to its most
directly comparable GAAP measure, as such reconciliation would
require unreasonable efforts at this time to estimate and quantify
with a reasonable degree of certainty various necessary GAAP
components, including for example those related to impairment and
tax items, which may arise during the year. These components and
other factors could materially impact the amount of the future
directly comparable GAAP measure, which may differ significantly
from non-GAAP adjusted EBITDA margin.
Adjusted EBITDA is calculated as earnings before interest,
taxes, depreciation and amortization and adjusted for asset
impairment charges. Adjusted EBITDA margin is calculated as
adjusted EBITDA divided by total sales. The Company believes that
providing adjusted EBITDA and adjusted EBITDA margin is useful to
investors to evaluate the Company’s performance and are key metrics
to measure profitability and economic productivity.
Free cash flow is a metric that management uses to monitor
liquidity. Management believes this metric is important to
investors because it demonstrates the Company’s ability to
strengthen liquidity while supporting its capital projects and new
store growth. Free cash flow is calculated as cash flow from
operating activities, less capital expenditures and excludes the
mandatory and discretionary repayment of debt.
About Destination XL Group, Inc.
Destination XL Group, Inc. is the leading retailer of Men’s Big
+ Tall apparel that delivers a Big + Tall shopping experience that
fits -- fits his body, fits his style, fits his life. Subsidiaries
of Destination XL Group, Inc. operate DXL Big + Tall retail and
outlet stores and Casual Male XL retail and outlet stores
throughout the United States, and a digital commerce website,
DXL.com, and mobile app which offer a multi-channel solution
similar to the DXL store experience with the most extensive
selection of online products available anywhere for Big + Tall men.
The Company is headquartered in Canton, Massachusetts, and its
common stock is listed on the Nasdaq Global Market under the symbol
"DXLG." For more information, please visit the Company's investor
relations website: https://investor.dxl.com.
Forward-Looking Statements Certain statements
and information contained in this press release constitute
forward-looking statements under the federal securities laws,
including statements regarding our guidance for fiscal 2022,
including expected sales and adjusted EBITDA margin; expected sales
trends in the fourth quarter of fiscal 2022; our expected marketing
costs for fiscal 2022; our ability to continue to attract new
customers and gain market share; expected capital expenditures in
fiscal 2022; expectations regarding the realizability of our
deferred tax assets; our ability to manage inventory; and expected
changes in our store portfolio and plan for new or relocated
stores. The discussion of forward-looking information requires
management of the Company to make certain estimates and assumptions
regarding the Company's strategic direction and the effect of such
plans on the Company's financial results. The Company's actual
results and the implementation of its plans and operations may
differ materially from forward-looking statements made by the
Company. The Company encourages readers of forward-looking
information concerning the Company to refer to its filings with the
Securities and Exchange Commission, including without limitation,
its Annual Report on Form 10-K filed on March 17, 2022, its
Quarterly Reports on Form 10-Q and other filings with the
Securities and Exchange Commission that set forth certain risks and
uncertainties that may have an impact on future results and
direction of the Company, including risks relating to: the global
COVID-19 pandemic and its impact on the Company’s results of
operations; the impact of rising inflation and the Russian invasion
on Ukraine on the global economy; supply chain challenges due to
ongoing global supply chain disruption; potential labor shortages;
and the Company’s ability to execute on its digital and store
strategy and ability to grow its market share, predict customer
tastes and fashion trends, forecast sales growth trends and compete
successfully in the United States men’s big and tall apparel
market.
Forward-looking statements contained in this press release speak
only as of the date of this release. Subsequent events or
circumstances occurring after such date may render these statements
incomplete or out of date. The Company undertakes no obligation and
expressly disclaims any duty to update such statements occurring
after such date may render these statements incomplete or out of
date. The Company undertakes no obligation and expressly disclaims
any duty to update such statements.
DESTINATION XL GROUP, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(In thousands, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
For the three months ended |
|
For the nine months ended |
|
|
October 29, 2022 |
|
|
October 30, 2021 |
|
|
October 29, 2022 |
|
|
October 30, 2021 |
|
|
Sales |
|
$ |
129,671 |
|
|
$ |
121,486 |
|
|
$ |
401,960 |
|
|
$ |
371,570 |
|
|
Cost of goods sold including
occupancy |
|
|
64,856 |
|
|
|
60,529 |
|
|
|
197,960 |
|
|
|
188,178 |
|
|
Gross profit |
|
|
64,815 |
|
|
|
60,957 |
|
|
|
204,000 |
|
|
|
183,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
48,383 |
|
|
|
41,962 |
|
|
|
144,441 |
|
|
|
120,856 |
|
|
Impairment (gain) of assets |
|
|
— |
|
|
|
(1,086 |
) |
|
|
(398 |
) |
|
|
(2,103 |
) |
|
Depreciation and amortization |
|
|
3,769 |
|
|
|
4,142 |
|
|
|
11,748 |
|
|
|
13,031 |
|
|
Total expenses |
|
|
52,152 |
|
|
|
45,018 |
|
|
|
155,791 |
|
|
|
131,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
12,663 |
|
|
|
15,939 |
|
|
|
48,209 |
|
|
|
51,608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(107 |
) |
|
|
(2,189 |
) |
|
|
(350 |
) |
|
|
(4,256 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision
(benefit) for income taxes |
|
|
12,556 |
|
|
|
13,750 |
|
|
|
47,859 |
|
|
|
47,352 |
|
|
Provision (benefit) for income
taxes |
|
|
2,083 |
|
|
|
94 |
|
|
|
(32,944 |
) |
|
|
548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
10,473 |
|
|
$ |
13,656 |
|
|
$ |
80,803 |
|
|
$ |
46,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.17 |
|
|
$ |
0.21 |
|
|
$ |
1.28 |
|
|
$ |
0.74 |
|
|
Diluted |
|
$ |
0.16 |
|
|
$ |
0.20 |
|
|
$ |
1.20 |
|
|
$ |
0.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
62,016 |
|
|
|
63,699 |
|
|
|
62,928 |
|
|
|
63,126 |
|
|
Diluted |
|
|
66,229 |
|
|
|
68,644 |
|
|
|
67,106 |
|
|
|
67,378 |
|
|
DESTINATION XL GROUP, INC. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
October 29, 2022, January 29, 2022 and October 30, 2021 |
|
(In thousands) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 29, |
|
|
January 29, |
|
October 30, |
|
|
|
2022 |
|
|
2022 |
|
2021 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
23,485 |
|
|
$ |
15,506 |
|
$ |
6,937 |
|
Inventories |
|
|
106,816 |
|
|
|
81,764 |
|
|
82,284 |
|
Other current assets |
|
|
9,523 |
|
|
|
8,725 |
|
|
8,530 |
|
Property and equipment,
net |
|
|
39,617 |
|
|
|
44,442 |
|
|
45,769 |
|
Operating lease right-of-use
assets |
|
|
125,903 |
|
|
|
127,812 |
|
|
118,684 |
|
Intangible assets |
|
|
1,150 |
|
|
|
1,150 |
|
|
1,150 |
|
Deferred tax assets, net of
valuation allowance |
|
|
33,480 |
|
|
|
— |
|
|
— |
|
Other assets |
|
|
563 |
|
|
|
559 |
|
|
567 |
|
Total assets |
|
$ |
340,537 |
|
|
$ |
279,958 |
|
$ |
263,921 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
26,564 |
|
|
$ |
25,165 |
|
$ |
29,765 |
|
Accrued expenses and other
liabilities |
|
|
38,821 |
|
|
|
40,969 |
|
|
37,021 |
|
Operating leases |
|
|
147,708 |
|
|
|
155,605 |
|
|
149,402 |
|
Stockholders' equity |
|
|
127,444 |
|
|
|
58,219 |
|
|
47,733 |
|
Total liabilities and stockholders' equity |
|
$ |
340,537 |
|
|
$ |
279,958 |
|
$ |
263,921 |
|
CERTAIN COLUMNS IN
THE FOLLOWING TABLES MAY NOT FOOT DUE TO ROUNDINGGAAP TO
NON-GAAP RECONCILIATION OF ADJUSTED
EBITDA(unaudited) |
|
|
|
|
|
|
|
For the three months ended |
|
For the nine months ended |
|
|
October 29, 2022 |
|
|
October 30, 2021 |
|
|
|
October 29, 2022 |
|
|
October 30, 2021 |
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP basis) |
|
$ |
10.5 |
|
|
$ |
13.7 |
|
|
|
$ |
80.8 |
|
|
$ |
46.8 |
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment (gain) of assets |
|
|
— |
|
|
|
(1.1 |
) |
|
|
|
(0.4 |
) |
|
|
(2.1 |
) |
|
Provision (benefit) for income taxes |
|
|
2.1 |
|
|
|
0.1 |
|
|
|
|
(32.9 |
) |
|
|
0.5 |
|
|
Interest expense |
|
|
0.1 |
|
|
|
2.2 |
|
|
|
|
0.4 |
|
|
|
4.3 |
|
|
Depreciation and amortization |
|
|
3.8 |
|
|
|
4.1 |
|
|
|
|
11.7 |
|
|
|
13.0 |
|
|
Adjusted EBITDA (non-GAAP basis) |
|
$ |
16.4 |
|
|
$ |
19.0 |
|
|
|
$ |
59.6 |
|
|
$ |
62.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
129.7 |
|
|
$ |
121.5 |
|
|
|
$ |
402.0 |
|
|
$ |
371.6 |
|
|
Adjusted EBITDA margin (non-GAAP), as a percentage of
sales |
|
|
12.7 |
% |
|
|
15.6 |
% |
|
|
|
14.8 |
% |
|
|
16.8 |
% |
|
GAAP TO NON-GAAP RECONCILIATION OF FREE CASH
FLOW(unaudited) |
|
|
|
|
|
|
|
|
|
|
For the nine months ended |
(in millions) |
|
October 29, 2022 |
|
|
October 30, 2021 |
|
|
Cash flow from operating activities (GAAP basis) |
|
$ |
30.2 |
|
|
$ |
64.2 |
|
|
Capital expenditures |
|
|
(7.9 |
) |
|
|
(2.8 |
) |
|
Free Cash Flow (non-GAAP
basis) |
|
$ |
22.3 |
|
|
$ |
61.3 |
|
|
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